Small Business Administration: A Primer on Programs and Funding

The Small Business Administration (SBA) administers several types of programs to support small businesses, including loan guaranty and venture capital programs to enhance small business access to capital; contracting programs to increase small business opportunities in federal contracting; direct loan programs for businesses (as well as homeowners and renters) to assist their recovery from natural disasters; and management and technical assistance training programs to assist small business formation and expansion. The SBA’s loan guarantees support access to capital for small businesses that cannot obtain credit elsewhere with reasonable terms and conditions. Such programs include the 7(a) loan guaranty program, the 504/CDC loan guaranty program, international trade and export promotion programs, and the Microloan program. Most SBA loan programs charge fees to help offset program costs, including costs related to loan defaults. In order to improve small business access to capital markets, the SBA also offers capital investment programs, including the Small Business Investment Company program, two special high technology contracting programs (the Small Business Innovative Research and Small Business Technology Transfer programs), and the Growth Accelerator Fund Competition (GAFC). The SBA’s entrepreneurial development (ED) noncredit programs provide a variety of management and training services to small businesses. The SBA partners with third parties to provide that training directly to business owners. ED programs include online training in addition to in-person services at brick-and-mortar locations, such as SBA Small Business Development Centers (SBDCs), which provide free or low-cost services across U.S. states and territories. SBA also supports targeted assistance, including as Veterans Outreach and Native American Outreach programs, as well as initiatives for specific kinds of training, such as the Cybersecurity for Small Business Pilot Program (CSBPP). In addition, the SBA directly provides management, training, and outreach services to small business owners and aspiring entrepreneurs through its 68 district offices, overseen by the SBA’s Office of Field Operations and 10 regional offices. Several SBA programs assist small businesses in obtaining and performing federal contracts and subcontracts. These programs respond to the congressional directive in the Small Business Act to ensure that a “fair proportion” of federal contract and subcontract dollars is awarded to small businesses. SBA is further involved in government-wide small business procurement goaling, through which agencies seek to award set shares of contracting dollars to small businesses, set in statute. This report provides an overview of SBA’s programs, as well as select agency offices, such as the Office of Advocacy, Office of the National Ombudsman, and Office of the Inspector General. It also provides an overview of the SBA’s budget and references other CRS reports that examine the SBA’s programs in greater detail.