Small Business Administration (SBA)
To provide substantial assistance to aspiring entrepreneurs and business owners developing their companies, the United States has established a special government agency—the Small Business Administration (SBA), operating as a ministry.
This initiative is based on previous experiences and statistical data that clearly indicate the significant contribution of small enterprises and companies to the country’s economy: they account for 82% of jobs and annually contribute about 80% of taxes collected at the local, regional, and federal levels. Small business forms the economic backbone of the U.S., and thus its support is a primary government objective.
History of the Organization and Its Functions
The history of the Small Business Administration (SBA) began in 1953 when it was established as an agency within the Federal government. At that time, the Administration was tasked with providing consultations, assisting, and protecting the interests of small business representatives. Among the SBA's responsibilities was ensuring conditions for maintaining competitiveness in entrepreneurship. By addressing such issues, the agency fulfilled its main function—strengthening and supporting the economy of the country.
Small Business in the U.S. and Its Protection
The term refers to companies in the U.S. that have no more than 200 employees and an annual revenue of up to 10 million U.S. dollars.
By starting a business, thereby creating several jobs and paying taxes, you and your company automatically come under the SBA's protection due to the established attitude toward entrepreneurship and the existence of the Small Business Administration itself. Moreover, in any critical situations or current matters, you have the right to seek assistance to:
- Access capital through a specially organized funding system: from microloans to significant amounts for business development.
- Develop entrepreneurship by obtaining qualified consultations and training in a system of over 1,800 institutions.
- Gain opportunities for government contracts. This is one of the agency's main areas of activity, where it has secured the right for small businesses to obtain 23% of all government contracts.
- Receive comprehensive legal assistance. For this reason, the SBA can provide testimony on your behalf, and its attorneys thoroughly study and analyze American legislation. Additionally, lawyers regularly assess the possibilities and level of government regulation for small businesses. In effect, the government officially supports and assists your business. The decisions and support of the SBA carry significant weight in the U.S. and are almost always enforced at all levels.
Existing Laws, Regulations, and Policies
The activities of the Administration are based on the following U.S. laws:
- The Small Business Act, dated June 30, 1953. This act is foundational, and therefore, it is regularly amended and updated.
- The Small Business Investment Act. The articles of this act describe all permissible and possible ways to obtain investments. Many financing methods for small businesses emerged and received government support in the U.S. thanks to the SBA.
Conditions for Small Business Protection
In reality, as a small business entity, you will receive protection and support only upon fulfilling simple conditions:
- At least 1 year of operation in the U.S.;
- Creation of jobs for U.S. citizens;
- A real business plan for obtaining loans, investments, or capital contributions.
It is important to remember that the maximum level of financial assistance from the Administration is only 40%, so the remaining 60% needed to implement the project must be sought elsewhere. Moreover, the SBA finances not with money but with guarantees, meaning that under the agency's guarantee, you can obtain a loan of the aforementioned amounts from any bank.
Employees of our company assist you in meeting the requirements and conditions, preparing a business plan, and convincing the Administration of the need for assistance.
