Company: Small Business Administration (SBA)

Founders:

The United States Congress

Industry: The Small Business Administration (SBA) is a United States government agency that provides support to small businesses.

History:

The history of the U.S. Small Business Administration (SBA) does not begin on its foundation in 1953. The story goes back to 1932, at a time when small businesses had trouble staying afloat, maimed by the Great Depression. In was in that year that President Herbert Hoover created SBA’s grandfather company, the Reconstruction Finance Corporation (RFC).

The RFC was designed to alleviate the financial crisis of the Depression. It was basically a federal lending program that gave aid to struggling businesses, large and small. The project was eventually adopted by Hoover’s successor, President Franklin D. Roosevelt.
World War II provided even more concern for small businesses as large companies boosted production to accommodate wartime defense contracts. Several wartime organizations sprung up in order to help small businesses participate in war production. The RFC would ultimately assume the duties and responsibilities of these organizations.
In 1952, a movement was made to abolish the RFC. In order to retain important functions of earlier agencies, President Dwight Eisenhower moved for the creation of a new small business agency. This gave birth to the Small Business Administration.

The Small Business Act of July 30, 1953 stated that the SBA was to “aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns.”

By 1954, the SBA was already making direct business loans and assuring bank loans to small businesses. The agency was also responsible for helping owners with management and technical assistance as stated in the Investment Company Act of 1958.
Today, the SBA has directly or indirectly helped nearly 20 million businesses through financial and federal contract procurement assistance, management assistance, and specialized outreach to women, minorities and armed forces veterans. The SBA also provides loans to victims of natural disasters and specialized advice and assistance in international trade.

Leadership:

Karen Mills, Administrator