25. Small Business Administration (Summary)

Author: Karen Kerrigan

Summary

• The U.S. Small Business Administration (SBA) has been instrumental in supporting U.S. entrepreneurship and small business growth since its creation in 1953.
• The SBA’s main functions include providing disaster loans, advocating for small businesses in government regulations, and facilitating access to capital and government contracts.
• Major programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Advance have provided critical support during crises but have also been plagued by issues of fraud and mismanagement.
• Over the years, the SBA’s budget has fluctuated significantly depending on the administration in power, with notable increases during economic or natural disasters.
• There is a push within the SBA to focus more on inclusivity, although this has led to concerns about mission creep and the potential exclusion of some groups from SBA programs.
• Under a conservative administration, there could be a shift towards more focused, efficient, and accountable management of the SBA, emphasizing transparency and the reduction of government overreach.

Analysis

• Implementing the reforms suggested could streamline SBA operations, making the agency more efficient and reducing wasteful spending.
• A tighter focus on authorized programs and the cessation of direct lending could enhance the SBA’s effectiveness in serving genuine small business needs without undue government interference.
• Enhancing the Office of Advocacy and reducing regulatory burdens could significantly benefit small businesses, potentially leading to greater economic growth and innovation.
• However, such reforms could also reduce the scope of support available to some businesses, particularly those that have benefited from more expansive interpretations of SBA’s role.
• There is a risk that focusing too much on efficiency could lead to reduced support during unforeseen disasters or economic downturns where rapid response is crucial.

Tags

• Small Business
• SBA
• Government Policy
• Economic Reform
• Entrepreneurship

Read the original chapter text here: https://static.project2025.org/2025_MandateForLeadership_FULL.pdf#page=778

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