Published July 2003

SBA marks 50 years
of helping small business

Fifty years ago this month, President Dwight D. Eisenhower signed the Small Business Act, creating the U.S. Small Business Administration, an agency charged with providing technical and financial assistance to America’s small-business community.

Since then, the SBA has helped more than 20 million Americans start and build their businesses with more than $170 billion in direct or guaranteed loans, according to agency head Hector Barreto.

But the federal agency that Ike created on July 30, 1953, isn’t resting on its laurels. Instead, it has in recent months rolled out a new pilot loan program, announced additional loan authority for fiscal year 2003 and planned a national event to honor entrepreneurs and match them with potential clients.

As Barreto put it, “SBA’s 50th anniversary gives us a perfect opportunity to reflect upon our history and to plan innovative methods to better serve America’s entrepreneurs.”

Like the Pre-Disaster Mitigation Loan Program, a two-year pilot program created to assist small businesses in protecting their property from damages caused by future disasters.

Available during fiscal years 2003 and 2004, the Pre-Disaster Mitigation Loan Program enables small businesses to borrow as much as $50,000 — at a fixed interest rate of 2.953 percent and loan terms up to 30 years — to protect their property by taking certain measures to prevent disaster damage.

“Doing so will avoid future catastrophic losses, protect business owners from financial ruin and save taxpayers from subsidizing huge disaster assistance costs in years to come,” said Alfred E. Judd, area director of SBA’s Sacramento Disaster Office, which serves the Western United States.

Along with this new program, the SBA announced in June that $1.4 billion in additional loan authority will be made available for its flagship 7(a) Loan Guaranty program for fiscal year 2003 — thanks to a dramatic decline in the estimated cost of another of its programs.

“Hundreds of small-business owners and entrepreneurs looking to start a business will benefit from this new loan authority,” Barreto said in announcing the extra funds.

Hundreds more likely will benefit from the upcoming National Entrepreneurial Conference and Expo set for Sept. 17 through 19 in Washington, D.C.

While it’s sure to be a feel-good celebration, with the announcement of the National Small Business Person of the Year and a new Hall of Fame dedicated to entrepreneurial achievements, it also will be a time to get down to business.

Attendees to the NECE will be able to take part in educational seminars on topics ranging from access to capital and contracting to e-Government and regulatory relief.

They also can participate in a matchmaking event that puts small-business owners in front of procurement managers.

All in all, 2003 has been and continues to be a productive year for the SBA.

At 50, the agency responsible for assisting small-business owners continues to focus on and provide for the needs of America’s entrepreneurs.

— Kimberly Hilden, SCBJ Assistant Editor

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