The Small Business Administration of the United States is a government agency that was established to assist American business with technological innovation. As the world's largest business lobby, the SBA has pushed for greater congressional oversight of the technology industry and has helped create the modern Office of Technology in the executive branch. It also enforces federal commercial law applicable to small business. Its mission is to promote through litigation, policy, and educational activity throughout the country a strong and flexible national economic platform. Because of this large scale, many entrepreneurs in the country feel that the SBA has no relevant jurisdiction over technological issues. This post examines whether the SBA's technological innovation programs are worth the risk.
Most of the SBA's technological innovation activities help small businesses understand current market trends. For instance, the SBA's Office of Technology assists local and regional economic development officials in analyzing business plans, technology strategies, and budgeting needs to successfully implement new or updated regulations and business applications. By examining current economic trends, the SBA can assist in formulating regulatory programs that can address emerging challenges. By developing business solutions based on the best available information, the SBA staff can help small businesses develop the infrastructure they need to compete. This also allows them to develop competitive policies that will help them deal with the changing business environment.
Perhaps the best example of how SBA technological innovation can help a company is in the realm of franchising. It has long been the practice of many large corporations to provide franchises to small businesses to expand their customer base. In doing so, these companies help develop local economies by attracting new customers into the area. Unfortunately, this growth does not occur without some competition. By viewing past trends, an SBA study found that many national brands had failed in their attempts to franchise in the United States because of restrictive lending requirements. Specifically, many national brand franchises were unable to receive financing from either the federal or state governments because they did not meet the required criteria for meeting business qualifications.
The SBA's Office of Technology leads the way in providing assistance to small businesses that are facing obstacles when it comes to obtaining capital and financing. Because the SBA's Technology office has access to the most up-to-date information and technology, they are able to provide businesses with accurate and streamlined advice concerning which types of loans are available and which ones they may qualify for based on their own unique situation. Because these agencies collect market data on a continual basis, they are well positioned to highlight emerging trends and determine which loans may be the best solution for a particular business. To make it easier for them to identify these trends, they contract with various other agencies and private lenders to gather information on a regular basis. In turn, the SBA's technology office analyzes these data set to ensure that the appropriate loans are made.
Another area in which SBA services are used is the area of training programs. The SBA is committed to ensuring that its programs are accessible to all. This ensures that potential students have access to the knowledge and tools necessary to be successful entrepreneurs. As a result, many US small businesses find that obtaining small business loans that qualify them for low interest rates and minimal documentation requirements are easily accessible. Because the SBA is such a large agency, it is also well positioned to partner . . . . . . with state and local government entities to improve financing opportunities for small business owners.
If you are a small business owner or are looking into starting one, the US small businesses Administration is a resource that can help you. Programs such as the SBA's Training Programs are designed to assist those who wish to start a business, or expand an existing one, obtain the necessary financing. The SBA does not provide loans itself, but it does work with banks and private lenders to ensure that they provide the right type of lending and other business related services. By working closely with these third party financial organizations, small businesses can obtain the funding they need with minimal risk. For more information on US small business loans and other loan products, the SBA offers, visit their website.