4 Ways the Small Business Administration Can Help You Succeed

Whether you own a small business or are thinking of opening a shop of your own, you may wonder about the role the Small Business Administration (SBA) plays. For 70 years, the SBA has been helping people like you "start, grow, and build resilient businesses." Here are four ways the SBA makes it happen.

1. Helps you secure capital

If your business needs a lift and a bank loan would help, SBA can help you figure out which loan is right for you. Then, it'll guarantee the loan. The bank knows that if you fail to make payments, SBA will repay up to 85% of what you owe.

SBA-guaranteed loans typically have rates and fees comparable to non-guaranteed loans, meaning you won't overpay. And benefits may include a lower down payment and flexible overhead requirements. Plus, you don't need to provide collateral for some loans.

Depending on the type of loan you take out, it may come with continued SBA support to help you start and run your business.

There are more than half a dozen loan types from which to choose.

2. Helps you grow as an entrepreneur

The SBA's Office of Entrepreneurial Development (OED) operates a network of programs that support the training and counseling small businesses need to thrive. With resource partners scattered around the U.S., programs and services within the OED include:

• Small Business Development Centers (SBDCs): With 63 lead centers and over 900 service centers, SBDC is a broadband service delivery network designed to enhance local economies.
• Women's Business Centers (WBCs): There are more than 100 WBC locations throughout the U.S., created to promote the growth of woman-owned businesses by offering training, technical assistance, access to credit and capital, federal contracts, and an opportunity to become involved in international trade.
• Entrepreneurship Education: Through the Office of Entrepreneurship Education (OEE), the SBA administers programs that provide education and training to both prospective and current small business owners. OEE offers a free online learning center, the T.H.R.I.V.E Emerging Leaders Reimagined Initiative, and a host of other partnerships.

3. Works to develop government contracts

Every year, the U.S. government spends hundreds of billions of dollars on goods and services. These goods and services are purchased from private businesses. The SBA negotiates with the government to ensure that a specific amount of money will end up in the checking accounts of small businesses owned by disadvantaged individuals, service-disabled veterans, and women.

The SBA also plays a major role in forming new federal procurement policies that have a huge impact on small businesses like yours.

Currently, the goal is to ensure that 23% of prime contracts are awarded to small businesses. Specifically, the SBA wants to see business go to the following:

• 5% to woman-owned businesses
• 3% to service-disabled, veteran-owned businesses
• 5% to small disadvantaged businesses
• 3% to HUBZone firms (a HUBZone is a small business that operates and employs people in historically underutilized business zones)

No one is born knowing how to land a government contract, though. The SBA fills that gap by teaching businesses how to meet the requirements needed to receive government contracts, whether that's as a prime contractor or subcontractor.

Finally, the SBA Office of Government Contracting oversees special initiatives, such as the Women-Owned Small Business program, Service-Disabled Veteran-Owned program, and the federal procurement awards program.

4. Advocates on your behalf

One of the most important things the SBA does for businesses like yours is to advocate. They're in D.C., working with the federal government to give small businesses a better shot at success. They're reviewing Congressional legislation and testifying on behalf of small businesses. And the SBA is continually reviewing business regulations to determine the impact of those regulations on small businesses.

While a small business owner may not have the connections to interact with policymakers, the SBA does. It uses its seven decades of experience to protect the interest of small businesses in the U.S. That includes preserving free competition and strengthening the economy as a whole.

As you know, it takes more than a good idea to go into business for yourself, and that's where the SBA comes in. It's a place you can ask questions about anything from hiring practices to accounting software. It fills any gaps in your knowledge to help you meet your goals as a business owner.