Small Business Administration (SBA) Funding: Overview and Recent Trends

The U.S. Small Business Administration (SBA) operates several programs to assist small businesses, as well as a program to help disaster survivors. The SBA’s budget reflects the agency’s varied mission, and includes funding for business training programs, loan programs, administrative costs, and the operations of two independent offices. In FY2026, Congress appropriated $1.3 billion to the SBA. That amount consisted of $330.0 million for entrepreneurial development programs, which includes 16 programs that help small businesses start, operate, and expand; $323.1 million for salaries and expenses, including agency-wide services, the nationwide network of regional and district offices, and most daily operations; $280.4 million for the disaster loan program, including $75.0 million for the cost of making direct disaster loans (the remainder for administrative costs); $161.0 million for business loan programs, the vast majority of which is used to support the costs of administering those programs; $106.9 million for congressionally directed spending; $38.6 million for the SBA Office of Inspector General (OIG); and $10.1 million for the SBA Office of Advocacy (Advocacy). The Administration requested a reduction in funding for SBA in FY2026 compared with the previous year (total request: $0.8 billion). In addition to reductions in administrative funds, the Administration proposed ending 15 of SBA’s 16 entrepreneurial development programs (keeping only the Small Business Development Centers [SBDCs] program), and proposed a participation fee for business loan program lenders to offset SBA’s administrative costs. The House Financial Services and General Government (FSGG) bill for FY2026 (total funding: $1.0 billion) proposed funding reductions (although not as large as the Administration’s requested reductions) to many of the SBA’s programs, with the exception of proposed increases for Native American, veterans outreach, and SBDC programs. The Senate FY2026 FSGG proposal (total funding: $1.3 billion) would have generally maintained funding closer to FY2025 levels, though it would have reduced administrative funding, increased funding for the OIG and Advocacy, and included congressionally directed spending. The $1.3 billion included in the Consolidated Appropriations Act, 2026 (P.L. 119-75) was generally closer to the Senate’s proposal. Over a longer period, total SBA appropriations have ranged from $571.8 million in FY2007 to more than $761.9 billion in FY2020. This variation in the SBA’s annual budget is largely driven by responses to natural disasters and economic downturns. The years when the SBA’s funding was highest include the years that the federal government responded to the COVID-19 pandemic (FY2020 and FY2021), the Great Recession (FY2010 and FY2011), and large natural disasters (including FY2025 and FY2018). Funding for the SBA’s core functions—including salaries and expenses, entrepreneurial development programs, business loan administration, the OIG, and Advocacy—is more stable and generally increasing over time.