How The Small Business Administration Has Become Today's Business Financing Resource

The Small Business Administration planted its roots and began to take shape during the summer of 1953. Although many other business-related government loans had already been established following The Great Depression of the 1930s, President Eisenhower officially signed off on the Small Business Act, which eventually led to the blossoming of an agency that has been helping this country’s small business owners achieve financial success for decades.

SBA financing through the years has played an integral role in assisting an array of entrepreneurial enterprises; from corner stores to family-owned restaurants to strip malls and well beyond, the Small Business Administration and its affiliates have managed to keep the pulse of the American dream beating strong.

During the latter part of the twentieth century, the SBA loan program did, however, face some adversity. In 1996 the republican-controlled House attempted to do away with the SBA financing program altogether, which caused a nationwide uproar. Fierce debates ensued as a result of this HR proposal, in both the political forum and town hall meetings across the country.

A Struggling Start For The Small Business Administration

Not only did this anti government loans proposal face insurmountable opposition; it ended up strengthening the small business loan program. The Small Business Administration didn’t just survive; the House Resolution Committee also agreed upon additional SBA loan 504 provisions, such as extending disaster relief funding to those under contract with SBA financing.

Also known as the Small Business Programs Improvement Act Of 1996, funding for the operation increased exponentially in 2000, as did the need for SBA loans. And once again the program faced a little schoolyard bullying, yet this time from the Bush Administration.

In this particular case, the democratic-controlled Congress pushed back, yet certain segments of the fiscal budget resulted in the Small Business Administration having its funds reduced in 2004, while going under the guise of fiscal budgetary concerns. Since that time, though, SBA financing as well as government grants for nonprofit organizations and green technology development have changed for the better.

Today's Small Business Administration Focuses On Economic Diversity

At the present time, SBA loans are now even more accessible to minorities, women, service veterans, and most anyone else who aspires to implement a solid business plan and turn it into a profitable venture. The qualifying process for SBA loans has become somewhat flexible as of late; known for being an equal opportunity loan backer, the Small Business Administration won’t necessarily guarantee every loan application, yet circumstance is being given more consideration than in the past.

Having a solid financial background may make things easier, yet those who’ve had a rough go of things over the last decade can capitalize on the opportunity to restore their credit and good standing in each respective community. SBA financing specifics, if met in a timely fashion, can provide other perks as well.

Government loans that have been established over time can open the door to the benefits of refinancing via the Small Business Administration and its affiliate lenders. Restructuring most any given business loan with built-up equity should immediately reduce monthly payments and interest rates, as well as the opportunity to remodel, upgrade, and/or expand operations.

A refinanced SBA loan may also increase a business owner’s ability to invest elsewhere. It’s also important to note that all of these SBA financing amenities can provide some breathing room, meaning that no quick decisions have to be made.

All in all, the small business model in America in conjunction with SBA loans over the last century have ended up playing a significant role on the way to engendering many great things: employment, growth opportunities, new neighborhoods, schools, and a laundry list of many other positives. The Small Business Administration will continue to provide these services as long as they’re needed.