Small businesses have a voice in our economy, and the SBA aims to speak up for them. Through its Office of Advocacy, the SBA offers independent research to represent small businesses before policymakers. Small businesses can also use its resources, both online and in-person, to plan and launch their business. Its resources provide essential tools for launching a new business. The SBA can help entrepreneurs launch their ideas and create a business plan.
Office of Government and Contracting
The SBA’s Office of Government and Contracting (OGC) provides assistance and guidance for small businesses seeking to participate in federal contracting programs. The GC helps small businesses pursue federal contracts by establishing government-wide goals for participation by small businesses and negotiating with federal agencies to meet those goals. The SBA also negotiates with federal agencies to set aside opportunities for small businesses. Here are a few resources for small businesses interested in entering government contracting:
The federal government awards 3% of its prime contract dollars to small businesses that are service-disabled veteran-owned. By participating in an SBA program, small businesses have fewer competitors for government contracts. To participate in SBA contracting programs, small businesses must obtain certification that shows their socioeconomic status. This certification process varies from program to program. Some allow self-certification, while others require submitting an application for certification. The applicant must answer questions about ownership and upload supporting documents.
Before the SBA’s Office of Government and Contracting, it was known as the Reconstruction Finance Corporation. The RFC’s mission was to facilitate small businesses in securing federal contracts. President Dwight Eisenhower’s administration proposed creating a new small business agency to fulfill the mission of the RFC. The RFC eventually became the Office of Government and Contracting. Thereafter, the SBA has been known as the SBA.
The SBA’s Office of Government and Contracting program is designed to help small businesses obtain federal contracts. The SBA provides training, financial assistance, and procurement assistance to participating small businesses. Through its partnerships with federal agencies, 8(a) participants enjoy preference in government contracting programs. This program also includes small businesses owned by Native Hawaiian organizations. It enables small businesses to obtain contracts and gain a competitive advantage over larger companies.
Office of Business Development
The Small Business Administration (SBA) has at least one office in every state. This federal agency also provides grants to various counseling partners. These partners include Small Business Development Centers (SBDCs), Women’s Business Centers (WBCs), and SCORE, which is a volunteer mentor corps of experienced business leaders. These services provide help to more than one million entrepreneurs annually. The SBA was created in 1953, and its mission and philosophy took shape in predecessor agencies. Initially, the SBA focused on lending to small businesses in need, which it expanded to include granting grants to counseling partners and nonprofits.
In addition to its mission of helping small businesses get started and grow, the SBA also administers the section 8(a) program, which provides technical and management assistance to small government contractors. These firms must be owned at least 51 percent by low and moderate-income individuals. These programs are intended to increase small businesses’ access to capital. These programs are designed to help businesses grow and improve their competitiveness in the marketplace. These programs are essential for small businesses in the United States, as they provide opportunities for thousands of people to achieve the American dream.
The 8(a) Business Development program was established to help socially and economically disadvantaged individuals start small businesses. To be eligible for the 8(a) Business Development program, a firm must have a net revenue of less than $750,000 in fiscal year 2008. Additionally, the business must be run by a U.S. citizen or socially disadvantaged individual. During fiscal year 2008, the SBA employed 182.5 full-time-equivalent (FTE) staff.
Office of Advocacy
The Office of Advocacy was established by Congress in 1976 as an independent voice for small businesses within the federal government. It is staffed by a Chief Counsel for Advocacy who is appointed by the President and confirmed by the U.S. Senate. The Office uses economic research and policy analysis to advocate for small businesses and is headquartered in Washington, D.C. To learn more about the Office of Advocacy, read the Background Paper. This document provides extensive reference materials and a history of the Office.
The SBA’s Office of Government and Contracting works with other federal agencies to promote small businesses’ economic development by ensuring that 23 percent of prime federal contracts go to small, woman-owned, service-disabled veteran-owned, and HUBZone-certified small businesses. The SBA’s Office of Advocacy also works to ensure that small businesses are aware of government procurement opportunities that benefit them.
The SBA’s Office of Advocacy serves as a forum for small businesses to provide input on federal rulemaking. It has held meetings with small businesses on a wide range of issues, including CFPB small business data collection rulemaking and website accessibility guidelines under the ADA. It also holds informational webinars and research to inform small businesses on regulations they find valuable. It is critical for small businesses to get their voices heard when it comes to policy-making.
The SBA Office of Advocacy supports transparency, openness, and accountability. It is committed to implementing the Freedom of Information/Privacy Acts. The Office will also manage the SBA’s appellate function and develop policy and procedures. The Freedom of Information/Privacy Acts (FOIA) Act contains two levels of administrative review: an initial review by a program or field office; and an appeal of the response. The Office of Advocacy provides training and guidance for agency staff, clients, and the public.
SBA 7(a) Loan program
If you need a small loan, consider applying for an SBA 7(a) Loan. This loan program is available for amounts up to $25,000 and does not require collateral. However, a business with bad credit may have trouble qualifying for a loan. You can find a lender that meets the requirements for this type of financing by using the SBA’s lender matching tool. This will speed up the process of applying for a loan, answer questions, and improve your chances of approval. You will need to complete a few forms, such as SBA Forms 912, 413, and 1919, which are required to apply for this loan.
You can use the proceeds of a 7(a) loan for many purposes. You can purchase machinery, equipment, leasehold improvements, inventory, raw materials, and more. The SBA 7(a) line of credit can be used for working capital. A SBA 7(a) loan can also be used to purchase equipment. Once you receive the funds, you can use them to hire more employees or start a new product.
If you own more than 20% of a business, you may be required to give a personal guarantee. The SBA may require a personal guarantee from a key person in your business. A spouse may be required to sign a personal guarantee if both of them are owners of the business. However, if you hold joint collateral, your spouse will need to sign the personal guarantee as well. It is important to make sure that you are prepared to meet the repayment requirements of your loan.
The interest rates for an SBA 7(a) loan are capped by the SBA. Depending on the term, loan amount, and business qualifications, the rates can vary greatly. The maximum interest rate for an SBA 7(a) loan is 5.50%, which is lower than the prime rate for a consumer loan. There are also limits on the size of the loan, so make sure you look at these factors before signing a contract.
Office of Advocacy testifies to Congress on behalf of small business
The SBA Office of Advocacy has recently come under fire for shifting its focus away from small businesses and towards big businesses. Steinzor urged the Government Accountability Office to look into the office’s role in lobbying against new regulations on behalf of large firms. The Office of Advocacy is charged with assessing the impact of regulations on small businesses and ensuring that they do not disproportionately hurt small firms. The director of the office defended the office’s work, saying that it has saved small firms $2.4 billion in recurring and initial regulatory costs.
The SBA Office of Advocacy is a powerful lever to help small businesses. It has testified in Congress on several occasions, urging the Small Business Administration to prioritize the needs of small businesses. Advocacy staff routinely seek comments from large companies’ lobbyists about proposed rules and regulations. While this practice may be helpful in the long run, many critics see it as an overreach by the SBA Office of Advocacy, which serves as an effective lobbying tool.
SBA has programs to support small businesses owned by minorities, including the 8(a) Small Disadvantaged Business Development program. The 8(a) program organizes federal procurement opportunities for minority-owned firms. The program also provides technical and management assistance to minority-owned firms. Additionally, the SBA’s Office of Native American Affairs works with Native American communities to support small businesses.
The SBA Office of Advocacy’s Regional Regulatory Reform Roundtables are also crucial to small businesses. Its members have heard the concerns of constituents at these events and helped identify specific regulatory changes to be submitted to federal agencies. Through these forums, the SBA Office of Advocacy can provide useful feedback on the regulatory issues facing small businesses nationwide. This information is critical to the Office of Advocacy’s work in helping small businesses succeed.
