The SBA’s roots date back to the 1930s, when Herbert Hoover created the Reconstruction Finance Corporation to help businesses get out of the Great Depression. Here’s a look at the SBA and how it came to be:
For almost 60 years, the Small Business Administration (SBA) has been helping businesses get their start by offering an array of services. More than 20 million businesses have received direct or indirect help from the SBA program.
Dating back to WWII, the SBA’s focus has been to make sure that small business can participate and stay competitive in the marketplace. Here’s a look at the SBA and how it came to be:
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History of the SBA
- In 1932, the Reconstruction Finance Corporation (RFC) was created by President Herbert Hoover
- In 1942 the Smaller War Plants Corporation (SWPC) was created by Congress
- In 1952, the RFC was abolished.
- In 1953, the Small Business Administration (SBA) was founded and established by Congress under the Small Business Act. The function was to “aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns.”
- In 1954, the SBA was making direct business loans and guaranteeing bank loans to small businesses.
- In 1958, the Investment Company Act of 1958 established the Small Business Investment Company (SBIC) Program. It was SBA licensed and regulated and helped provide funds for privately owned and operated venture capital investment firms.
- In 1964, the SBA created the Equal Opportunity Loans (EOL) Program. This relaxed credit and collateral requirements for applicants living below the poverty line.
- In 1976, the Office of Advocacy was created to protect SBA programs and small businesses within the Federal Government.
- In 1996, the House tried to eliminate the SBA
- In 2000, despite threats, the SBA survived and received high budgets
- In 2004m, SBA expenditures were frozen
- In 2009, the Obama Administration supported SBA budgets and strengthened it through the American Recovery and Reinvestment Act of 2009
- In 2010, the SBA budgets were further strengthened by the Small Business Jobs Act of 2010
- In 2011, Obama announced that the SBA will double its current rate in rural small businesses to $350 million in the next 5 years