Sep 21, 2011

History of the Small Business Administration (SBA) | Infographic

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:

history of the sba

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History of the Small Business Administration (SBA) | Infographic

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

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  1. This is a load of propoganda – the federal government isn’t supporting small business, it’s cutting them off. The proposed SBA budget stands at $985 million for 2012 — down from the $1.8 billion the SBA received in 2010, a total that was fueled in large part by $962 million in supplemental stimulus appropriations that were designed to help boost small-business loans. Those appropriations are no longer available for 2012. Other areas slated for budget cuts include Small Business Development Centers, which provide support and mentoring to entrepreneurs, and administrative costs, including a $7 million drop in salaries and expenses.

    • Good information, Douglas. The intent of it was to show the timeline and history of the SBA, not as much to show its effectiveness (or lack thereof). From most feedback and comments about the SBA we’ve seen, I think a lot of people agree with you.

  2. An appropriate historical representation of the SBA would show that at its origin there was significant disagreement with the size of businesses the politicians ended up defining as “small”. 500 employees is not a small business and that condemned the SBA to the trash heap of irrelevance from the day it was born.

    With that in mind, it’s not 99.7% of businesses defined as small, which would be absurd enough, but 99.98%. There are 27.3 million businesses and only 6,060 are bigger than 500 employees – do the math.

    The other stat that would show the proper historical perspective on the SBA is the percentage of small business loans the SBA actually delivers, which is less than 2.5%. That is almost a statistically irrelevant percentage. When you show those loan amounts on your graph, it gives the appearance these are all backed by the SBA.

    The SBA should be eliminated, simply because it’s never represented small business. That lack of representation should show up clearly in any historical view of the SBA.

  3. A small business is defined as having LESS than 500 employees – or did I miss something?

  4. Question: Does any loan or loan type from the SBA include ADA Accessibility requirements?

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