Happy 70th Anniversary to the SBA!
Celebrating 70 Years of Service to America’s Small Businesses
SBA 504 Effective Rates for August 2023
25-year – 6.55% / 6.57% Refi
20-year – 6.61% / 6.63% Refi
10-year – 7.08% / 7.10% Refi
Happy Anniversary to SBA! The Small Business Administration (SBA) was founded under President Eisenhower and the 1953 Small Business Act to “aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns.”
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Before SBA was Founded:
The SBA was originally founded because of the immense pressure that the Great Depression and World War II were placing on small businesses. In 1932, President Hoover created the Reconstruction Finance Corporation (RFC), an organization for federal lending for all businesses (large and small) hurt by the Great Depression.
Congress expanded the idea by creating the Smaller War Plants Corporation (SWPC) in 1942. Not only did the SWPC loan money specifically to entrepreneurs, but also advised all financial institutions to help smaller enterprises and also advocated on behalf of small businesses to federal agencies and big businesses.
In 1945, WWII ended and the SWPC was abolished, but its lending and government contract powers were given over to the RFC. The U.S. Dept of Commerce took on some of the duties advocating and addressing small businesses. Then came the Korean War which led Congress to create the Small Defense Plants Administration (SDPA) in 1950. The SDPA’s function was to evaluate small businesses and certify them to RFC for government contracts and lending. In 1952, the RFC was abolished and all functions were transferred to the Dept of Treasury.
The Founding of SBA:
On July 30, 1953, President Eisenhower signed the Small Business Act into law, thus creating a new agency, SBA. SBA was created with the mission to “aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns.” It was also charged with ensuring that small businesses earn a “fair proportion” of government contracts and sales of surplus property.
Just a year later, SBA started making and guaranteeing government loans for small businesses and also helped guide small businesses to procure government contracts. In addition, SBA provided small business owners and entrepreneurs with management and business training and created a program to supply funds to victims of natural disasters.
Throughout the next ten years, SBA added many programs to help small businesses obtain the necessary credit that need to keep pace with quick technical advancements, and assist with licenses, regulations, and private venture funds. Also added was the Equal Opportunity Loan program (EOL), providing relaxed credit and collateral for applicants living below the poverty level. The EOL provided encouragement to new businesses that had been unable to attract financial backing but were sound commercial initiatives.
Since the agency was originally founded, SBA has expanded the aid it provides. SBA’s programs now include management assistance, as well as financial and federal contract procurement. Additionally, SBA now provides specialized outreach to women, minorities, and armed forces veterans. The Agency also offers specialized advice and support in international trade.
SBA was created to preserve free competitive enterprises and strengthen the nation’s economy. SBA remains committed to that goal and outlines in their 2022-2026 strategic plan how it will help ensure that its programs are equitable, customer-centric and support small businesses and innovation. Programs will also create strategies to help build resilient businesses, a sustainable economy, and create plans for managing technology and human resources for greater impact. With its commitment to these goals, SBA is working to produce a more equitable and sustainable economy supported by America’s small businesses.
NWBDA is so proud to be able to partner with SBA to help bring funds and resources to small business, especially when the business owner doesn’t have another option. During NWBDA’s 42 years in business, it has helped over 1,790 small businesses and provided access to approximately $1,175,141,000 in funds, as well as helped create and/or retain over 16,989 jobs. Some of which were women-owned, minority-owned, and veteran-owned small businesses.
Without the founding of the U.S. Small Business Administration, NWBDA’s assistance to numerous small businesses wouldn’t have been possible! So Happy Anniversary to SBA!
July’s Loan Approvals
NWBDA approved 6 new
projects for the total amount
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