The Purpose of Small Business Administration
The Small Business Administration refrains from offering direct funding by way of loans issued to small businesses in need. Instead, it provides valuable assistance to these businesses by offering them the needed education. SBA also prepares small business owners to send in applications for funding assistance through a bank, credit union, or financial intermediary. Due to this function performed by the SBAs and their relationship with businesses, they act as the only guarantor when it comes to small business bank loans.
In some conditions, SBA assists businesses with acquiring small business loans and other financing aid to offer help to the needy during hurricanes, floods, and natural disasters. The Small Business Administration also works to ensure government procurement contracts to small businesses. This is done by assisting owners with management decisions, technical issues, and training strategies.
By fulfilling these primary functions, the Small Business Administration has, directly and indirectly, assisted about 20 million businesses through funding and educational support. In the year 2008, the Small Business Administration pulled off a loan portfolio of about 220,000 loans which summed up to more than $84 billion. This figure made the Small Business Administration the single biggest financial backer in the United States that year.