independent federal agency chartered in 1953 to provide financial assistance to small businesses. The SBA makes direct loans to borrowers who are unable to obtain conventional financing, participates in loans originated by financial institutions, and also guarantees loans made by banks and other financial institutions. The SBA preferred lender program, allows businesses to get SBA-guaranteed loans by filing loan applications directly with designated financial institutions, significantly reducing the time needed to obtain SBA funding. Typically, the SBA guarantees 85% of a small business loan. The agency also provides disaster assistance to small businesses and financial counseling to minority-owned businesses. The SBA also licenses, regulates, and provides venture capital assistance to a Small Business Investment Company. The SBA guarantees bank-originated business loans up to $750,000 in loan principal.
federal government agency in Washington, D.C., that encourages small business. The SBA offers low-interest-rate loans to qualified businesspersons.
federal agency created in 1953 to provide financial assistance (through direct loans and loan guarantees) as well as management assistance to businesses that lack the access to capital markets enjoyed by larger more creditworthy corporations. Further legislation authorized the SBA to contribute to the venture capital requirements of start-up companies by licensing and funding small business investment companies (SBICs), to maintain a loan fund for rehabilitation of property damaged by natural disasters (floods, hurricanes, etc.), and to provide loans, counseling and training for small businesses owned by minorities, the economically disadvantaged, and the disabled.
The SBA finances its activities through direct grants approved by Congress.
federal government agency in Washington, D.C., that encourages small business.
Example: The SBA offers low-interest-rate loans to qualified businessmen and businesswomen.
Address:
Small Business Administration
409 3rd Street SW
Washington, DC 20416
202-205-6740
www.sbaonline.sba.gov
