Do online research into the U.S. Small Business Administration (SBA) government

Question

Do online research into the U.S. Small Business Administration (SBA) government agency and their three different loan programs that are designed to cover a wide array of businesses and their particular needs. As an MBA graduate, write a report with a minimum of 350 words to your client Jack Russell who wants to start a business in professional dog training for police and military agencies, but has no idea how to do this. You want to convince him of the possibilities of the SBA as a commercial bank loan option. Which program would be best for Jack and why? Give all the benefits and risks of obtaining an SBA loan then your conclusions on the steps he must take.

Minimum 350 words

ISBN # 9780132671033

Financial Management Core Concepts by Raymond Brooks

Explanation / Answer

The Small Business Administration (SBA) is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters". The agency's activities are summarized as the "3 Cs" of capital, contracts and counseling.[3]

SBA loans are made through banks, credit unions and other lenders who partner with the SBA. The SBA provides a government-backed guarantee on part of the loan. Under the Recovery Act and the Small Business Jobs Act, SBA loans were enhanced to provide up to a 90 percent guarantee in order to strengthen access to capital for small businesses after credit froze in 2008. The agency had record lending volumes in late 2010.[4]

SBA helps lead the federal government's efforts to deliver 23 percent of prime federal contracts to small businesses. Small business contracting programs include efforts to ensure that certain federal contracts reach woman-owned and service-disabled veteran-owned small businesses as well as businesses participating in programs such as 8(a) and HUBZone.[5]

SBA has at least one office in each U.S. state. In addition, the agency provides grants to support counseling partners, including approximately 900 Small Business Development Centers (often located at colleges and universities), 110 Women's Business Centers, and SCORE, a volunteer mentor corps of retired and experienced business leaders with approximately 350 chapters. These counseling services provide services to over 1 million entrepreneurs and small business owners annually. President Obama announced in January 2012 that he would elevate the SBA into the Cabinet, a position it last held during the Clinton administration,[6][7] thus making theAdministrator of the Small Business Administration a cabinet-level position.

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