- Home
- Agencies
- Department of Agriculture
- Department of Housing and Urban Development
- General Services Administration
- Department of Commerce
- Department of the Interior
- National Aeronautics and Space Administration
- Department of Defense
- Department of Justice
- National Science Foundation
- Department of Education
- Department of Labor
- Office of Personnel Management
- Department of Energy
- Department of State
- Small Business Administration
- Environmental Protection Agency
- Department of Transportation
- Social Security Administration
- Department of Health and Human Services
- Department of the Treasury
- U.S. Agency for International Development
- Department of Homeland Security
- Department of Veterans Affairs
- Goals
- Initiatives
- Programs
Primary tabs
Maria Contreras-SweetAdministrator
Small Business Administration (SBA)
Mission
Overview
When, following the suggestion of President Eisenhower, congress passed the Small Business Act and created the U.S. small Business Administration (SBA) in 1953, its stated mission was to “aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns,” and also ensure small businesses a “fair proportion” of government contracts.
Sixty years later, the landscape of the nation has changed substantially, but SBA’s mission and its commitment to the interests of America’s small business remain the same.
During the past six decades, SBA has helped tens of millions of small businesses start, grow and succeed by expanding access to capital, federal contracts, counseling and entrepreneurial education. In addition, SBA disaster loans have helped more than a million homeowners and renters, and hundreds of thousands of businesses recover and rebuild their lives.
America’s 28 million small business owners are the engine of job creation and economic growth in this country, creating nearly two out of every three net new jobs in the United States, and employing over half of the nation’s workforce. The U.S. Small Business Administration (SBA) ensures that these businesses have the tools and resources they need to start and expand their operations and create good jobs that support a growing economy and strong middle class.
The SBA has a proven track record of assisting America’s small businesses by increasing and improving access to capital, federal contracting opportunities, entrepreneurial development, and disaster assistance. The Agency also boosts America’s long-term competitiveness by improving the entrepreneurial ecosystem to ensure small business owners and entrepreneurs are well positioned to take advantage of new opportunities and new markets as the economy improves.
Expand All
Strategic Goals & Objectives
Agencies establish a variety of organizational goals to drive progress toward key outcomes for the American people. Long-term strategic goals articulate clear statements of what the agency wants to achieve to advance its mission and address relevant national problems, needs, challenges and opportunities. Strategic objectives define the outcome or management impact the agency is trying to achieve, and also include the agency's role. Each strategic objective is tracked through a suite of performance goals, indicators and other evidence. Click here for more information on stakeholder engagement during goal development.
Strategic Goal:
Growing businesses and creating jobs
Statement:
Growing businesses and creating jobs
Strategic Objectives
Statement:
Expand access to capital through SBA's extensive lending network
Description:
Access to capital is critical to the long-term success of America’s small businesses. The top priority at the SBA is to get lending flowing to small businesses. As the economy continues to improve, the SBA is working to ensure that remaining gaps in the commercial markets are filled and that small businesses across the country are well positioned to take advantage of opportunities. The SBA also continues to streamline and simplify its loan programs to make its products more attractive to lenders and borrowers.
Priority Goal: Strengthen and expand the network of lenders offering SBA products
Statement:
By September 30, 2017, expand access to capital for small businesses by increasing the number of lenders in SBA's 7(a) loan program from 2,244 (FY 2014) to 2,500.
Description:
Providing access to capital has been one of the SBA’s critical strategies in meeting its objective to drive business formation, job growth, and economic expansion particularly in underserved markets since the Agency’s creation in 1953. By providing loan guarantees to reduce lenders’ loss exposure, the SBA provides an important credit lifeline to small businesses, especially startup businesses and businesses owned by women, minorities, veterans and other underserved groups that often cannot easily obtain credit in the conventional market. SBA loan programs are necessary to ensure that small businesses are not only surviving but also leading the way toward US economic expansion and growth.
The 7(a) Loan program is the federal government’s primary small business loan program, assisting small businesses to obtain financing when they do not qualify for or otherwise have access to traditional credit. The SBA guarantees a portion of each loan (typically 50 to 90%) that participating lenders make by using the adjusted credit standards of the 7(a) loan program.
SBA's FY 2014-2015 Priority Goal to increase new and returning 7(a) lenders has reduced the decline from FY 2012 to FY 2014. SBA will continue to support small business access to capital by increasing the number of lenders participating in the flagship 7(a) loan program (including the Community Advantage pilot program). Lender participation is essential to growth in the quantity of loans approved and small businesses assisted. Attaining a high volume of lender participation will create a consistent pipeline of SBA loans to small businesses.
This Priority Goal directly supports SBA’s Strategic Objective 1.1 – Expand access to capital through SBA’s extensive lending network. Access to capital is critical to the long-term success of America’s small businesses. The top priority at the SBA is to get lending flowing to small businesses.
Key barriers and challenges:
- Economic Trends; micro- and macro-economic that impact whether banks want to provide SBA-backed loans such as:
- Lender may not have the technology in place to support migration to SBA systems
- Some industries may have a high default rate and a risk that would not allow a lender to underwrite a SBA backed loan
- Lender located in an area where some industries are effected by geographic factors that would make a risk (for example, Northeast Area has a big fishing industry that depends on weather, availability of product, regulations, etc.)
- Bank mergers impact the number of lending partners providing 7(a) loan
- Program awareness of SBA products and services and a shrinking workforce in field offices which provide training
Priority Goal: Increase Active Lender Participation
Statement:
Expand access to capital by adding 325 new and returning lenders to SBA’s flagship 7(a) program each fiscal year in FY2014-2015.
Description:
Providing access to capital has been one of the SBA’s critical strategies in meeting its objective to drive business formation, job growth and economic expansion particularly in underserved markets since the agency was created in 1953. By providing loan guarantees to reduce lenders’ loss exposure, the SBA provides an important credit lifeline to small businesses, especially startup businesses and businesses owned by women, minorities, veterans and other underserved groups who often cannot easily obtain credit in the conventional market. In the current economic conditions, SBA loan programs become even more crucial for ensuring that small businesses are not only surviving but also leading the way toward economic recovery and growth, as they have done time-and-time again throughout U.S. history.
SBA will increase small business access to capital by increasing the number of new or returning lenders in the fiscal year for the flagship 7(a) program (including the Community Advantage pilot program). New and returning lenders are a major component of SBA’s lending portfolio and are essential to growth in the quantity of loans approved and small businesses assisted. Each new or returning lender will expand SBA’s footprint and increase small business access to capital. Attaining a high volume of new and returning lenders from one fiscal year to the next will create a consistent pipeline of SBA loans into the hands of small business.
There are barriers and challenges to the SBA in achieving its priority goals:
- Economic Trends; micro and macro
- Issues within the Finance Industry as a whole
- Shrinking workforce in field offices which provide training
- Recent cases from the OIG reviewing SBA lenders underwriting criteria have triggered a more cautious approach from some lenders with some loan guaranty types
Statement:
Ensure federal contracting goals are me and/or exceeded by collaborating across the federal government to expand opportunities for small businesses and strengthen the integrity of the federal contracting certification process and data.
Description:
Small business contracting is one of the most important federal programs to help America’s small businesses grow and create jobs. The federal government gets to work with the most innovative small businesses in America today, and small businesses get critical revenue to build and scale their operations. SBA’s goal is to make sure that all federal agencies meet or exceed their targets for federal prime contracting dollars awarded to small businesses. The SBA is improving coordination and communication across the federal government, facilitating matchmaking events, increasing online trainings and holding senior officials accountable for meeting their agencies’ small business goals. SBA continues to simplify access to federal contracting opportunities and educate small businesses on the contracting opportunities available to them. The SBA is also streamlining the certification process and data for federal contracting and continues to aggressively root out fraud, waste and abuse in small business contracting to ensure that contracting dollars go to deserving small businesses.
Priority Goal: Maximize Small Business participation in government contracting
Statement:
Maximize small business participation in federal government contracting to meet the statutory goals and reduce participation by ineligible firms.
Description:
Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals continues to be an Administration priority. Federal contracting with small businesses is a win-win. Small businesses get the revenue they need to grow their businesses and create jobs, and the federal government gets the opportunity to work with some of America’s most innovative and nimble small businesses, often times with a direct line to the CEO.
In FY 2012, the federal government made real progress toward the 23 percent goal, with 22.25 percent or $89.9 billion in federal contracting dollars going to small businesses compared to 21.65 percent in FY 2011, with significant impact in key areas:
- For the first time, more agencies than ever before met or surpassed all of their prime contracting goals.
- Also, for the first time, the federal government exceeded the goal for service disabled veterans.
- The federal government had the highest percentage of contracts going to Small Disadvantage Businesses to date.
As a result of a government wide focus on increasing small business contracting opportunities, during President Obama’s first term (FY2009 - FY2012) the federal government awarded $376.2 billion in federal contracting dollars to small businesses. This is a $48.1 billion increase over the four preceding years even as we have seen reduced spending overall.
Also, since President Obama took office, the SBA has supported more than $132.61 billion in Federal government contracting dollars to small disadvantaged businesses. This represents a 36.6 percent increase when compared to the prior Administration. Under the Bush Administration’s first term, $97.10 billion in federal government contracting dollars were awarded to small disadvantaged businesses.
Although we have seen marked success over the last few years, we know more must be done. Many challenges exist for small businesses seeking to enter the federal procurement marketplace.
- The unpredictable and changing budget climate is a challenge for small businesses, and SBA is working hard to create an environment where small businesses can be successful in the federal procurement marketplace.
- The instability and ambiguity caused by Continuing Resolutions make it difficult to agency acquisition staff to plan effectively for small business utilization.
- Entering the federal supply chain can often be a lengthy and arduous process for many small businesses.
SBA’s GCBD unit must implement effective and efficient strategies to monitor the agencies’ progress to goal, support small businesses interested in working with the government and encourage agencies to improve data quality when reporting their contracting activities. SBA will increase its efforts to collaborate with and hold federal agencies accountable to achieving their goals.
Priority Goal: Maximize small business participation in government contracting
Statement:
Through September 30, 2017, maximize small business participation in federal prime contracting to meet the statutory goal of 23%, ensure targets for subgoals are met, and reduce participation by ineligible firms.
Description:
When a small business is awarded a government contract, the small business is often able to quickly create jobs and spur economic growth. The government agency often has a “direct line” to the CEO, helping ensure that products and services are meeting or exceeding expectations and serving America’s taxpayers. Also, underserved communities – including women, minorities, veterans and others – often have extreme difficulty in accessing federal contracting opportunities as market gaps remain. SBA’s unique contracting programs provide a path to business growth for these populations.
Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses.
Meeting and exceeding the federal government’s small business procurement goals continues to be an Administration priority. Federal contracting with small businesses is a win-win. Small businesses get the revenue they need to grow their businesses and create jobs, and the federal government gets the opportunity to work with some of America’s most innovative and nimble small businesses, often times with a direct line to the CEO.
This Priority Goal directly supports SBA’s strategic objectives:
- Strategic Objective 1.2 – Ensure federal contracting goals are met or exceeded by collaborating across the federal government to expand opportunities for small businesses and strengthen the integrity of the federal contracting certification process and data.
- Strategic Objective 2.1 – Ensure inclusive entrepreneurship by expanding access and opportunity to small businesses and entrepreneurs in communities where market gaps remain
Small businesses are agile, innovative and affordable partners for the federal government. Through small business contracting, the federal government acts as a catalyst for small business growth, innovation, and supports the national economic security of the nation. Congress designated SBA as the agency responsible for overseeing small business contracting across the federal government. The SBA takes this responsibility seriously as the strongest voice for small business across the Administration.
Key barriers and challenges:
- The unpredictable and changing budget climate is a challenge for small businesses, and SBA is working hard to create an environment where small businesses can be successful in the federal procurement marketplace.
- The instability and ambiguity caused by Continuing Resolutions make it difficult to agency acquisition staff to plan effectively for small business utilization.
- Entering the federal supply chain can often be a lengthy and arduous process for many small businesses.
- The Administration and SBA continue to increase efforts and collaboration to provide more opportunities for small businesses to compete for and win federal contracts.
- Strategic Sourcing, Bundling, and Contracting Consolidation continue to be major concerns for small business opportunity and expansion. While the government strives to balance affordability with opportunity, SBA engages with agencies to continue to promote broader competitive opportunities to ensure the health of the small business industrial base is not adversely affected due to strategic sourcing or consolidating requirements and to protect small business from contract bundling.
SBA must continue to implement effective and efficient strategies to monitor the agencies’ progress, support small businesses interested in working with the government, and improve the data quality agencies use to manage their contracting activities.
Priority Goal: Grow the number of 8(a)-certified disadvantaged small businesses
Statement:
By September 30, 2017, support more disadvantaged small businesses by increasing the number of approved 8(a)-certification applications by 5% each fiscal year, FY 2016 and FY 2017.
Description:
The 8(a) Program is an essential instrument for helping socially and economically disadvantaged entrepreneurs gain access to the economic mainstream of American society. The program helps thousands of aspiring entrepreneurs to gain a foothold in government contracting.
8(a) firms are also provided with business development assistance and can participate in the Mentor Protégé Program to build their competitive and institutional know-how to participate in competitive acquisitions.
A few years ago, the 8(a) Program boasted over 9,000 certified 8(a) participants, but has declined to less than 4,700 due to the administratively burdensome application process. Though the regulatory guidance provides the SBA approximately 90 days to process a complete application, several firms have endured delays that extend anywhere from 6 months to several years. Further, the SBA rate of approval for applicants that complete the application process is exceptionally low, under 50%. While over 2,000 applicants apply each year, the SBA rejects most applications as incomplete or missing documentation. Historically, only 25% of the applicants or about 500-600 applicants per year get through the burdensome process for a final decision from the Associate Administrator of the Office of 8(a) Business Development. The SBA’s low rate of approval has led to an industry of third party firms that charge socially and economically disadvantaged applicants anywhere from $5,000 to $75,000 to prepare the application and respond to the SBA processors. Some of these firms are taking advantage of applicants; and regardless of the amount paid, there is no guarantee of approval because the SBA approval rate is consistently less than 50%.
This Priority Goal is designed to grow the 8(a) Program by improving customer service for the 8(a) applicants and reduce the unnecessary administrative burdens on applicant firms. Growth of the program will open opportunities for socially and economically disadvantaged entrepreneurs to gain a foothold in government contracting.
The mission of the Office of Business Development is to execute activities authorized under Sections 8(a) and 7(j) of the Small Business Act to provide business development assistance to firms that are owned and controlled by economically and socially disadvantaged individuals. The office fulfills its mission by certifying the eligibility of prospective 8(a) business development firm participants and managing a national program that provides marketing, managerial, technical, and procurement assistance to help eligible businesses achieve their full competitive potential. The SBA will continue to work collaboratively with community development partners, credit unions, minority associations and others to tailor programs to meet their needs and ensure that SBA’s programs remain accessible to underserved communities.
This Priority Goal directly supports SBA’s strategic objectives:
- Strategic Objective 1.2 – Ensure federal contracting goals are met or exceeded by collaborating across the federal government to expand opportunities for small businesses and strengthen the integrity of the federal contracting certification process and data.
- Strategic Objective 2.1 – Ensure inclusive entrepreneurship by expanding access and opportunity to small businesses and entrepreneurs in communities where market gaps remain
- Strategic Objective 3.3 – Mitigate risk to taxpayers and improve oversight across SBA programs
The goals address the ongoing decline in number of 8(a) small businesses. Through 8(a) sole source and competitive contracting opportunities, the federal government acts as a catalyst for small business growth, innovation, job creation, and supports the national economic security of the nation.
When a small business gets a government contract, the small business is often able to quickly create jobs and spur economic growth. The government agency often has a “direct line” to the CEO, helping ensure that products and services are meeting or exceeding expectations and serving America’s taxpayers.
Key barriers and challenges:
Many challenges exist for growing the 8(a) program and increasing the total number of application approvals for 8(a) firms. However, the SBA is committed to make smart, bold, and customer focused changes to make the 8(a) program accessible to all firms that meet the eligibility requirements of the program. Consistent measurement of progress and monitoring of implementation of new and streamlined procedures will be key to avoid reverting to historical trends of rejecting 50% of more of the completed applications. Challenges include:
- Uncertainty whether competitors will respond favorably to the necessary regulatory changes that will be posted in the Federal Register to remove longstanding but unnecessary burdens on firms. Some examples are ‘wet signatures’ and a mandatory waiting period of 12 months to reapply after being declined by the SBA regardless of the reason for the decline.
- Potential for low employee engagement or desire for the status quo within the Office of Business Development. The staff assigned to process applications work remotely from the SBA Headquarters in Washington DC and have been trained in current processes that have proven burdensome.
- Office of Field Operation’s Business Opportunity Specialists (BOS) who conduct the day-to-day marketing to 8(a) applicants and provide business development for 8(a) certified firms. The BOS are assigned other priorities leaving minimal time for 8(a) business development. The decline in access to business development creates an increase in the number of firms that are terminated each year because they do not stay connected to the SBA and do not meet program requirements for annual reviews.
The SBA programs that contribute to this Agency Priority Goal are: Size Standards, Mentor-Protégé, 8(a) Business Development, 7(j) Technical Assistance.
Statement:
Strengthen entrepreneurial ecosystems through a variety of strategic partnerships to provide tailored training, mentoring and counseling services that support entrepreneurs during every phase of their business growth
Description:
Entrepreneurs and small business owners who receive training, mentoring and/or advising services increase sales, create more jobs, and have greater economic impact on their communities. SBA’s resource partner network, including 63 SBDCs with over 900 outreach locations, over 100 WBCs, and 11,000 SCORE volunteers nationwide, along with online training, assists more than one million business owners and entrepreneurs each year. The SBA also leads and builds partnerships with other agencies and private sector partners to support robust entrepreneurial ecosystems across the country. For instance, regional innovation clusters bring together small businesses and entrepreneurs with venture capitalists, universities and regional industry leaders who can help leverage a region’s unique assets to turn entrepreneurial ideas into high-growth small businesses.
Priority Goal: Expand the base of lenders for small business exporters
Statement:
Expand small business access to export financing by increasing the number of lenders providing export financing solutions from 430 to 555 and the number of small business exporters receiving financing through SBA loan programs from 1,346 to 1,480 by FY2015.
Description:
The priority goal is directly tied to the objective of both the National Export Initiative (NEI) and the Export Promotion Cabinet (EPC) to expand SME access to trade financing, which has been identified as a gap issue for smaller exporters. Increasing access to export financing, combined with trade counseling and training, will contribute to the enhanced ability of current and future U.S. small business exporters to succeed in the global marketplace and supports the cross-agency goal of doubling U.S. exports.
There are barriers and challenges to the SBA in achieving its priority goals:
- From a marketing perspective, communicating and disseminating trade financing information to lenders and small business exporters could provide challenging given current, and anticipated, budget constraints on staffing.
- Inter-agency collaboration and joint initiatives can be challenging to manage, given the differing regulations and performance metrics of individual agencies, which might reduce the commitment of other agencies to help support this priority.
- Unique, and sometimes additional, Standard Operating Procedures (SOP) requirements for core export loans vs. other 7(a) loan products can confuse lenders and may require the creation of “Lender Training Manuals,” more extensive lender training, and Office of Capital Access support in implementing needed SOP revisions.
- In terms of operations, a reduced travel budget could greatly restrict the ability of field staff to deliver the necessary training to lenders and businesses that would expand the use of SBA loan programs for exporters, given that SBA's specialized trade finance specialists cover multiple states.
- The banking sector could receive another “financial shock,” forcing it to tighten lending requirements to small businesses and/or Basel III capital requirements could limit lending capacity.*
- U.S. export growth could slow, reducing demand for trade financing, as a result of slow overseas economic growth and/or a strengthening of the U.S. dollar, making U.S. exports less competitive.
Trade financing historically has been perceived by many lenders, especially community banks, as being too complex to be incorporated into their suite of financial products. Working with other federal agencies, SBA will help reduce the complexity of USG trade financing and export marketing programs and highlight the growing importance of exports to the U.S. economy, thereby encouraging more lenders to offer comprehensive business solutions to their export customers. In addition, SBA will leverage its outreach by working with state, federal, and other resource partners in order to promote customized trade financing options to the small business exporting community.
Statement:
Enhance the ability of current and future small business exporters to succeed in global markets by expanding access to financing, counseling, training and other export tools
Description:
Export sales contribute to a strong middle class by fueling economic opportunity and jobs in communities across the United States, while the countries buying American products gain access to some of the highest-quality products and services in the world. Today, nearly 96 percent of consumers and over two-thirds of the world's purchasing power reside outside the United States. Small businesses that can tap into this global market have the potential for vast expansion and growth, with small businesses now constituting 34 percent of total export dollars and comprising approximately 97.8 percent of all exporters.
Priority Goal: Expand the base of lenders for small business exporters
Statement:
Expand small business access to export financing by increasing the number of lenders providing export financing solutions from 430 to 555 and the number of small business exporters receiving financing through SBA loan programs from 1,346 to 1,480 by FY2015.
Description:
The priority goal is directly tied to the objective of both the National Export Initiative (NEI) and the Export Promotion Cabinet (EPC) to expand SME access to trade financing, which has been identified as a gap issue for smaller exporters. Increasing access to export financing, combined with trade counseling and training, will contribute to the enhanced ability of current and future U.S. small business exporters to succeed in the global marketplace and supports the cross-agency goal of doubling U.S. exports.
There are barriers and challenges to the SBA in achieving its priority goals:
- From a marketing perspective, communicating and disseminating trade financing information to lenders and small business exporters could provide challenging given current, and anticipated, budget constraints on staffing.
- Inter-agency collaboration and joint initiatives can be challenging to manage, given the differing regulations and performance metrics of individual agencies, which might reduce the commitment of other agencies to help support this priority.
- Unique, and sometimes additional, Standard Operating Procedures (SOP) requirements for core export loans vs. other 7(a) loan products can confuse lenders and may require the creation of “Lender Training Manuals,” more extensive lender training, and Office of Capital Access support in implementing needed SOP revisions.
- In terms of operations, a reduced travel budget could greatly restrict the ability of field staff to deliver the necessary training to lenders and businesses that would expand the use of SBA loan programs for exporters, given that SBA's specialized trade finance specialists cover multiple states.
- The banking sector could receive another “financial shock,” forcing it to tighten lending requirements to small businesses and/or Basel III capital requirements could limit lending capacity.*
- U.S. export growth could slow, reducing demand for trade financing, as a result of slow overseas economic growth and/or a strengthening of the U.S. dollar, making U.S. exports less competitive.
Trade financing historically has been perceived by many lenders, especially community banks, as being too complex to be incorporated into their suite of financial products. Working with other federal agencies, SBA will help reduce the complexity of USG trade financing and export marketing programs and highlight the growing importance of exports to the U.S. economy, thereby encouraging more lenders to offer comprehensive business solutions to their export customers. In addition, SBA will leverage its outreach by working with state, federal, and other resource partners in order to promote customized trade financing options to the small business exporting community.
Statement:
Fuel high-growth entrepreneurship, innovation and job creation by providing the tools small businesses need to start and grow their businesses.
Description:
High-growth businesses create almost all of the net new jobs in the economy today. Through longer-term “patient” capital, growth accelerators and regional innovation clusters, federal research and development (R&D) grants, and export assistance, the SBA plays a critical role in the ongoing success of high-growth small businesses. These high-growth investments provide opportunities for small businesses to create jobs and sustain the cycle of American entrepreneurship and innovation.
Statement:
Ensure that SBA’s disaster assistance resources for businesses, non-profit organizations, homeowners, and renters can be deployed quickly, effectively and efficiently in order to preserve jobs and help return small businesses to operation.
Description:
Returning small business operations to normal after a disaster is critical to ensuring that local economies regain traction as quickly as possible and are once again able to contribute to the economy and create jobs. The SBA, in coordination with the U.S. Federal Emergency Management Agency (FEMA), other federal agencies, the American Red Cross and array of state and local entities, helps small businesses prepare for disaster and provides timely and accessible low-cost, low-interest loans to small business owners, non-profits, homeowners, and renters who are survivors of disaster.
Priority Goal: Increase the Disaster Loan Application Return Rate
Statement:
Increase the return rate for disaster survivor applications by 10 percent points from 24% to 34% return rate by September 30, 2015.
Description:
The FY13 baseline number for Disaster Loan Application Return Rate was 24%, so the goal for FY14 is to achieve 29% and 34% in FY15. Increasing the application return rate will improve the delivery of the Disaster Loan Program. The primary opportunity being addressed is that a higher application return rate should result in a greater number of disaster survivors that will apply for disaster loan assistance and receive much needed Federal disaster assistance. SBA’s plan to increase the application return rate also ensures that SBA's disaster assistance resources for businesses, non-profit organizations, homeowners, and renters can be deployed quickly, effectively and efficiently in order to preserve jobs and help return small businesses to operation.
SBA’s plan to increase the application return rate will indirectly make the Disaster Loan Program more efficient by: 1) saving costs on mailing application packets to 100% of disaster survivors referred to SBA; and 2) freeing up resources dedicated to preparing and mailing application packets that can be utilized in other critical areas of the application screening process that directly impact processing times.
Statement:
Ensure the competitiveness and innovation of American manufacturing and supply chains by building capacity and supporting integrated networks of small business suppliers that encourage insourcing and the expansion of U.S. operations
Description:
Across the country, manufacturing and production are coming back to the United States. The reality is that large manufacturers need a diverse and nimble network of small suppliers. These suppliers make large companies more efficient, more productive and more globally competitive. A strong supply chain of small businesses can be a determining factor for locating production in a particular area. To build capacity and depth in America’s small business supply chain, the SBA continues its leadership role in the American Supplier Initiative, an Administration-wide effort focused on investing in — and building capacity throughout — the nation’s small business supply chain through: increased market access for small businesses; counseling and mentoring services to assist small suppliers; ready sources of capital to support sales, and; addressing the skills gap facing many small manufacturers and suppliers.
Priority Goal: Maximize Small Business participation in government contracting
Statement:
Maximize small business participation in federal government contracting to meet the statutory goals and reduce participation by ineligible firms.
Description:
Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals continues to be an Administration priority. Federal contracting with small businesses is a win-win. Small businesses get the revenue they need to grow their businesses and create jobs, and the federal government gets the opportunity to work with some of America’s most innovative and nimble small businesses, often times with a direct line to the CEO.
In FY 2012, the federal government made real progress toward the 23 percent goal, with 22.25 percent or $89.9 billion in federal contracting dollars going to small businesses compared to 21.65 percent in FY 2011, with significant impact in key areas:
- For the first time, more agencies than ever before met or surpassed all of their prime contracting goals.
- Also, for the first time, the federal government exceeded the goal for service disabled veterans.
- The federal government had the highest percentage of contracts going to Small Disadvantage Businesses to date.
As a result of a government wide focus on increasing small business contracting opportunities, during President Obama’s first term (FY2009 - FY2012) the federal government awarded $376.2 billion in federal contracting dollars to small businesses. This is a $48.1 billion increase over the four preceding years even as we have seen reduced spending overall.
Also, since President Obama took office, the SBA has supported more than $132.61 billion in Federal government contracting dollars to small disadvantaged businesses. This represents a 36.6 percent increase when compared to the prior Administration. Under the Bush Administration’s first term, $97.10 billion in federal government contracting dollars were awarded to small disadvantaged businesses.
Although we have seen marked success over the last few years, we know more must be done. Many challenges exist for small businesses seeking to enter the federal procurement marketplace.
- The unpredictable and changing budget climate is a challenge for small businesses, and SBA is working hard to create an environment where small businesses can be successful in the federal procurement marketplace.
- The instability and ambiguity caused by Continuing Resolutions make it difficult to agency acquisition staff to plan effectively for small business utilization.
- Entering the federal supply chain can often be a lengthy and arduous process for many small businesses.
SBA’s GCBD unit must implement effective and efficient strategies to monitor the agencies’ progress to goal, support small businesses interested in working with the government and encourage agencies to improve data quality when reporting their contracting activities. SBA will increase its efforts to collaborate with and hold federal agencies accountable to achieving their goals.
Priority Goal: Expand the base of lenders for small business exporters
Statement:
Expand small business access to export financing by increasing the number of lenders providing export financing solutions from 430 to 555 and the number of small business exporters receiving financing through SBA loan programs from 1,346 to 1,480 by FY2015.
Description:
The priority goal is directly tied to the objective of both the National Export Initiative (NEI) and the Export Promotion Cabinet (EPC) to expand SME access to trade financing, which has been identified as a gap issue for smaller exporters. Increasing access to export financing, combined with trade counseling and training, will contribute to the enhanced ability of current and future U.S. small business exporters to succeed in the global marketplace and supports the cross-agency goal of doubling U.S. exports.
There are barriers and challenges to the SBA in achieving its priority goals:
- From a marketing perspective, communicating and disseminating trade financing information to lenders and small business exporters could provide challenging given current, and anticipated, budget constraints on staffing.
- Inter-agency collaboration and joint initiatives can be challenging to manage, given the differing regulations and performance metrics of individual agencies, which might reduce the commitment of other agencies to help support this priority.
- Unique, and sometimes additional, Standard Operating Procedures (SOP) requirements for core export loans vs. other 7(a) loan products can confuse lenders and may require the creation of “Lender Training Manuals,” more extensive lender training, and Office of Capital Access support in implementing needed SOP revisions.
- In terms of operations, a reduced travel budget could greatly restrict the ability of field staff to deliver the necessary training to lenders and businesses that would expand the use of SBA loan programs for exporters, given that SBA's specialized trade finance specialists cover multiple states.
- The banking sector could receive another “financial shock,” forcing it to tighten lending requirements to small businesses and/or Basel III capital requirements could limit lending capacity.*
- U.S. export growth could slow, reducing demand for trade financing, as a result of slow overseas economic growth and/or a strengthening of the U.S. dollar, making U.S. exports less competitive.
Trade financing historically has been perceived by many lenders, especially community banks, as being too complex to be incorporated into their suite of financial products. Working with other federal agencies, SBA will help reduce the complexity of USG trade financing and export marketing programs and highlight the growing importance of exports to the U.S. economy, thereby encouraging more lenders to offer comprehensive business solutions to their export customers. In addition, SBA will leverage its outreach by working with state, federal, and other resource partners in order to promote customized trade financing options to the small business exporting community.
Priority Goals
Statement:
Expand access to capital by adding 325 new and returning lenders to SBA’s flagship 7(a) program each fiscal year in FY2014-2015.
Description:
Providing access to capital has been one of the SBA’s critical strategies in meeting its objective to drive business formation, job growth and economic expansion particularly in underserved markets since the agency was created in 1953. By providing loan guarantees to reduce lenders’ loss exposure, the SBA provides an important credit lifeline to small businesses, especially startup businesses and businesses owned by women, minorities, veterans and other underserved groups who often cannot easily obtain credit in the conventional market. In the current economic conditions, SBA loan programs become even more crucial for ensuring that small businesses are not only surviving but also leading the way toward economic recovery and growth, as they have done time-and-time again throughout U.S. history.
SBA will increase small business access to capital by increasing the number of new or returning lenders in the fiscal year for the flagship 7(a) program (including the Community Advantage pilot program). New and returning lenders are a major component of SBA’s lending portfolio and are essential to growth in the quantity of loans approved and small businesses assisted. Each new or returning lender will expand SBA’s footprint and increase small business access to capital. Attaining a high volume of new and returning lenders from one fiscal year to the next will create a consistent pipeline of SBA loans into the hands of small business.
There are barriers and challenges to the SBA in achieving its priority goals:
- Economic Trends; micro and macro
- Issues within the Finance Industry as a whole
- Shrinking workforce in field offices which provide training
- Recent cases from the OIG reviewing SBA lenders underwriting criteria have triggered a more cautious approach from some lenders with some loan guaranty types
Statement:
Maximize small business participation in federal government contracting to meet the statutory goals and reduce participation by ineligible firms.
Description:
Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals continues to be an Administration priority. Federal contracting with small businesses is a win-win. Small businesses get the revenue they need to grow their businesses and create jobs, and the federal government gets the opportunity to work with some of America’s most innovative and nimble small businesses, often times with a direct line to the CEO.
In FY 2012, the federal government made real progress toward the 23 percent goal, with 22.25 percent or $89.9 billion in federal contracting dollars going to small businesses compared to 21.65 percent in FY 2011, with significant impact in key areas:
- For the first time, more agencies than ever before met or surpassed all of their prime contracting goals.
- Also, for the first time, the federal government exceeded the goal for service disabled veterans.
- The federal government had the highest percentage of contracts going to Small Disadvantage Businesses to date.
As a result of a government wide focus on increasing small business contracting opportunities, during President Obama’s first term (FY2009 - FY2012) the federal government awarded $376.2 billion in federal contracting dollars to small businesses. This is a $48.1 billion increase over the four preceding years even as we have seen reduced spending overall.
Also, since President Obama took office, the SBA has supported more than $132.61 billion in Federal government contracting dollars to small disadvantaged businesses. This represents a 36.6 percent increase when compared to the prior Administration. Under the Bush Administration’s first term, $97.10 billion in federal government contracting dollars were awarded to small disadvantaged businesses.
Although we have seen marked success over the last few years, we know more must be done. Many challenges exist for small businesses seeking to enter the federal procurement marketplace.
- The unpredictable and changing budget climate is a challenge for small businesses, and SBA is working hard to create an environment where small businesses can be successful in the federal procurement marketplace.
- The instability and ambiguity caused by Continuing Resolutions make it difficult to agency acquisition staff to plan effectively for small business utilization.
- Entering the federal supply chain can often be a lengthy and arduous process for many small businesses.
SBA’s GCBD unit must implement effective and efficient strategies to monitor the agencies’ progress to goal, support small businesses interested in working with the government and encourage agencies to improve data quality when reporting their contracting activities. SBA will increase its efforts to collaborate with and hold federal agencies accountable to achieving their goals.
Statement:
Increase the return rate for disaster survivor applications by 10 percent points from 24% to 34% return rate by September 30, 2015.
Description:
The FY13 baseline number for Disaster Loan Application Return Rate was 24%, so the goal for FY14 is to achieve 29% and 34% in FY15. Increasing the application return rate will improve the delivery of the Disaster Loan Program. The primary opportunity being addressed is that a higher application return rate should result in a greater number of disaster survivors that will apply for disaster loan assistance and receive much needed Federal disaster assistance. SBA’s plan to increase the application return rate also ensures that SBA's disaster assistance resources for businesses, non-profit organizations, homeowners, and renters can be deployed quickly, effectively and efficiently in order to preserve jobs and help return small businesses to operation.
SBA’s plan to increase the application return rate will indirectly make the Disaster Loan Program more efficient by: 1) saving costs on mailing application packets to 100% of disaster survivors referred to SBA; and 2) freeing up resources dedicated to preparing and mailing application packets that can be utilized in other critical areas of the application screening process that directly impact processing times.
Statement:
Expand small business access to export financing by increasing the number of lenders providing export financing solutions from 430 to 555 and the number of small business exporters receiving financing through SBA loan programs from 1,346 to 1,480 by FY2015.
Description:
The priority goal is directly tied to the objective of both the National Export Initiative (NEI) and the Export Promotion Cabinet (EPC) to expand SME access to trade financing, which has been identified as a gap issue for smaller exporters. Increasing access to export financing, combined with trade counseling and training, will contribute to the enhanced ability of current and future U.S. small business exporters to succeed in the global marketplace and supports the cross-agency goal of doubling U.S. exports.
There are barriers and challenges to the SBA in achieving its priority goals:
- From a marketing perspective, communicating and disseminating trade financing information to lenders and small business exporters could provide challenging given current, and anticipated, budget constraints on staffing.
- Inter-agency collaboration and joint initiatives can be challenging to manage, given the differing regulations and performance metrics of individual agencies, which might reduce the commitment of other agencies to help support this priority.
- Unique, and sometimes additional, Standard Operating Procedures (SOP) requirements for core export loans vs. other 7(a) loan products can confuse lenders and may require the creation of “Lender Training Manuals,” more extensive lender training, and Office of Capital Access support in implementing needed SOP revisions.
- In terms of operations, a reduced travel budget could greatly restrict the ability of field staff to deliver the necessary training to lenders and businesses that would expand the use of SBA loan programs for exporters, given that SBA's specialized trade finance specialists cover multiple states.
- The banking sector could receive another “financial shock,” forcing it to tighten lending requirements to small businesses and/or Basel III capital requirements could limit lending capacity.*
- U.S. export growth could slow, reducing demand for trade financing, as a result of slow overseas economic growth and/or a strengthening of the U.S. dollar, making U.S. exports less competitive.
Trade financing historically has been perceived by many lenders, especially community banks, as being too complex to be incorporated into their suite of financial products. Working with other federal agencies, SBA will help reduce the complexity of USG trade financing and export marketing programs and highlight the growing importance of exports to the U.S. economy, thereby encouraging more lenders to offer comprehensive business solutions to their export customers. In addition, SBA will leverage its outreach by working with state, federal, and other resource partners in order to promote customized trade financing options to the small business exporting community.
Strategic Goal:
Serving as the voice for small business
Statement:
Serving as the Voice for Small Business
Strategic Objectives
Statement:
Ensure inclusive entrepreneurship by expanding access and opportunity to small businesses and entrepreneurs in communities where market gaps remain
Description:
Underserved communities – including women, low-income, minorities, veteran entrepreneurs – often have extreme difficulty in accessing capital, training, advising, and mentoring services and federal contracts. SBA’s unique approach to inclusive entrepreneurship provides products, services and programs that offer a path to business ownership for these populations that also suffer from disproportionately high levels of unemployment. The SBA will continue to work collaboratively with community development partners, credit unions, minority associations and others to tailor programs to meet their needs and ensure that SBA’s programs remain accessible to underserved communities.
Priority Goal: Increase Active Lender Participation
Statement:
Expand access to capital by adding 325 new and returning lenders to SBA’s flagship 7(a) program each fiscal year in FY2014-2015.
Description:
Providing access to capital has been one of the SBA’s critical strategies in meeting its objective to drive business formation, job growth and economic expansion particularly in underserved markets since the agency was created in 1953. By providing loan guarantees to reduce lenders’ loss exposure, the SBA provides an important credit lifeline to small businesses, especially startup businesses and businesses owned by women, minorities, veterans and other underserved groups who often cannot easily obtain credit in the conventional market. In the current economic conditions, SBA loan programs become even more crucial for ensuring that small businesses are not only surviving but also leading the way toward economic recovery and growth, as they have done time-and-time again throughout U.S. history.
SBA will increase small business access to capital by increasing the number of new or returning lenders in the fiscal year for the flagship 7(a) program (including the Community Advantage pilot program). New and returning lenders are a major component of SBA’s lending portfolio and are essential to growth in the quantity of loans approved and small businesses assisted. Each new or returning lender will expand SBA’s footprint and increase small business access to capital. Attaining a high volume of new and returning lenders from one fiscal year to the next will create a consistent pipeline of SBA loans into the hands of small business.
There are barriers and challenges to the SBA in achieving its priority goals:
- Economic Trends; micro and macro
- Issues within the Finance Industry as a whole
- Shrinking workforce in field offices which provide training
- Recent cases from the OIG reviewing SBA lenders underwriting criteria have triggered a more cautious approach from some lenders with some loan guaranty types
Priority Goal: Maximize Small Business participation in government contracting
Statement:
Maximize small business participation in federal government contracting to meet the statutory goals and reduce participation by ineligible firms.
Description:
Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals continues to be an Administration priority. Federal contracting with small businesses is a win-win. Small businesses get the revenue they need to grow their businesses and create jobs, and the federal government gets the opportunity to work with some of America’s most innovative and nimble small businesses, often times with a direct line to the CEO.
In FY 2012, the federal government made real progress toward the 23 percent goal, with 22.25 percent or $89.9 billion in federal contracting dollars going to small businesses compared to 21.65 percent in FY 2011, with significant impact in key areas:
- For the first time, more agencies than ever before met or surpassed all of their prime contracting goals.
- Also, for the first time, the federal government exceeded the goal for service disabled veterans.
- The federal government had the highest percentage of contracts going to Small Disadvantage Businesses to date.
As a result of a government wide focus on increasing small business contracting opportunities, during President Obama’s first term (FY2009 - FY2012) the federal government awarded $376.2 billion in federal contracting dollars to small businesses. This is a $48.1 billion increase over the four preceding years even as we have seen reduced spending overall.
Also, since President Obama took office, the SBA has supported more than $132.61 billion in Federal government contracting dollars to small disadvantaged businesses. This represents a 36.6 percent increase when compared to the prior Administration. Under the Bush Administration’s first term, $97.10 billion in federal government contracting dollars were awarded to small disadvantaged businesses.
Although we have seen marked success over the last few years, we know more must be done. Many challenges exist for small businesses seeking to enter the federal procurement marketplace.
- The unpredictable and changing budget climate is a challenge for small businesses, and SBA is working hard to create an environment where small businesses can be successful in the federal procurement marketplace.
- The instability and ambiguity caused by Continuing Resolutions make it difficult to agency acquisition staff to plan effectively for small business utilization.
- Entering the federal supply chain can often be a lengthy and arduous process for many small businesses.
SBA’s GCBD unit must implement effective and efficient strategies to monitor the agencies’ progress to goal, support small businesses interested in working with the government and encourage agencies to improve data quality when reporting their contracting activities. SBA will increase its efforts to collaborate with and hold federal agencies accountable to achieving their goals.
Statement:
Lead and collaborate with other agencies to strengthen and streamline the delivery of programs, resources and services for small businesses.
Description:
The SBA is the voice of small business and works to advocate for the interests of small business owners and entrepreneurs across government agencies. In this capacity, the Agency takes a leadership role in ensuring effective delivery of federal small business programs and services, collaborating across a broad array of agencies. The Agency is a leading participant in interagency collaborations that focus on innovation, place-based and sector-based growth, government contracting, veterans and reservists, disaster recovery, access to capital for small business owners and entrepreneurial education. The SBA will continue to foster interagency collaborations that leverage and align Agency activities across the federal government to reach more small businesses more efficiently than ever before.
Priority Goal: Increase Active Lender Participation
Statement:
Expand access to capital by adding 325 new and returning lenders to SBA’s flagship 7(a) program each fiscal year in FY2014-2015.
Description:
Providing access to capital has been one of the SBA’s critical strategies in meeting its objective to drive business formation, job growth and economic expansion particularly in underserved markets since the agency was created in 1953. By providing loan guarantees to reduce lenders’ loss exposure, the SBA provides an important credit lifeline to small businesses, especially startup businesses and businesses owned by women, minorities, veterans and other underserved groups who often cannot easily obtain credit in the conventional market. In the current economic conditions, SBA loan programs become even more crucial for ensuring that small businesses are not only surviving but also leading the way toward economic recovery and growth, as they have done time-and-time again throughout U.S. history.
SBA will increase small business access to capital by increasing the number of new or returning lenders in the fiscal year for the flagship 7(a) program (including the Community Advantage pilot program). New and returning lenders are a major component of SBA’s lending portfolio and are essential to growth in the quantity of loans approved and small businesses assisted. Each new or returning lender will expand SBA’s footprint and increase small business access to capital. Attaining a high volume of new and returning lenders from one fiscal year to the next will create a consistent pipeline of SBA loans into the hands of small business.
There are barriers and challenges to the SBA in achieving its priority goals:
- Economic Trends; micro and macro
- Issues within the Finance Industry as a whole
- Shrinking workforce in field offices which provide training
- Recent cases from the OIG reviewing SBA lenders underwriting criteria have triggered a more cautious approach from some lenders with some loan guaranty types
Priority Goal: Maximize Small Business participation in government contracting
Statement:
Maximize small business participation in federal government contracting to meet the statutory goals and reduce participation by ineligible firms.
Description:
Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals continues to be an Administration priority. Federal contracting with small businesses is a win-win. Small businesses get the revenue they need to grow their businesses and create jobs, and the federal government gets the opportunity to work with some of America’s most innovative and nimble small businesses, often times with a direct line to the CEO.
In FY 2012, the federal government made real progress toward the 23 percent goal, with 22.25 percent or $89.9 billion in federal contracting dollars going to small businesses compared to 21.65 percent in FY 2011, with significant impact in key areas:
- For the first time, more agencies than ever before met or surpassed all of their prime contracting goals.
- Also, for the first time, the federal government exceeded the goal for service disabled veterans.
- The federal government had the highest percentage of contracts going to Small Disadvantage Businesses to date.
As a result of a government wide focus on increasing small business contracting opportunities, during President Obama’s first term (FY2009 - FY2012) the federal government awarded $376.2 billion in federal contracting dollars to small businesses. This is a $48.1 billion increase over the four preceding years even as we have seen reduced spending overall.
Also, since President Obama took office, the SBA has supported more than $132.61 billion in Federal government contracting dollars to small disadvantaged businesses. This represents a 36.6 percent increase when compared to the prior Administration. Under the Bush Administration’s first term, $97.10 billion in federal government contracting dollars were awarded to small disadvantaged businesses.
Although we have seen marked success over the last few years, we know more must be done. Many challenges exist for small businesses seeking to enter the federal procurement marketplace.
- The unpredictable and changing budget climate is a challenge for small businesses, and SBA is working hard to create an environment where small businesses can be successful in the federal procurement marketplace.
- The instability and ambiguity caused by Continuing Resolutions make it difficult to agency acquisition staff to plan effectively for small business utilization.
- Entering the federal supply chain can often be a lengthy and arduous process for many small businesses.
SBA’s GCBD unit must implement effective and efficient strategies to monitor the agencies’ progress to goal, support small businesses interested in working with the government and encourage agencies to improve data quality when reporting their contracting activities. SBA will increase its efforts to collaborate with and hold federal agencies accountable to achieving their goals.
Priority Goal: Increase the Disaster Loan Application Return Rate
Statement:
Increase the return rate for disaster survivor applications by 10 percent points from 24% to 34% return rate by September 30, 2015.
Description:
The FY13 baseline number for Disaster Loan Application Return Rate was 24%, so the goal for FY14 is to achieve 29% and 34% in FY15. Increasing the application return rate will improve the delivery of the Disaster Loan Program. The primary opportunity being addressed is that a higher application return rate should result in a greater number of disaster survivors that will apply for disaster loan assistance and receive much needed Federal disaster assistance. SBA’s plan to increase the application return rate also ensures that SBA's disaster assistance resources for businesses, non-profit organizations, homeowners, and renters can be deployed quickly, effectively and efficiently in order to preserve jobs and help return small businesses to operation.
SBA’s plan to increase the application return rate will indirectly make the Disaster Loan Program more efficient by: 1) saving costs on mailing application packets to 100% of disaster survivors referred to SBA; and 2) freeing up resources dedicated to preparing and mailing application packets that can be utilized in other critical areas of the application screening process that directly impact processing times.
Statement:
Provide timely, instructive and useful information to the small business community through SBA’s extensive digital and in-person outreach efforts.
Description:
The SBA works to ensure that small business entrepreneurs can effectively access and navigate small business programs across the federal government. In an increasingly tech-driven economy, the SBA has taken significant steps to upgrade and enhance its website to better meet the needs of small businesses and give entrepreneurs more ways to access the Agency’s tools and resources. The SBA co-leads the BusinessUSA initiative with the Department of Commerce to provide small businesses with an easy-to-use, consolidated website and toll-free telephone number for the many government small business resources found in other agencies. The SBA leverages its nationwide network of field offices and resource partners to conduct outreach to hundreds of thousands of small business owners.
Statement:
Foster a small business-friendly environment by encouraging federal agency awareness about the impact of unfair regulatory enforcement and compliance efforts, reducing burdens on small business and improving small business research
Description:
The SBA plays a critical role in the Administration’s ongoing efforts to reduce regulatory barriers to entrepreneurship, innovation, and American competitiveness. As part of the Start-Up America initiative, government leaders met with more than 1,000 entrepreneurs across the country to talk about ways to reduce barriers for small business growth. These conversations continue to guide SBA policy and programmatic decisions. In addition, SBA’s National Ombudsman plays a key role in helping small business owners deal with specific regulatory burdens and challenges that result from federal agency processes. Furthermore, the SBA is focused on and committed to not only compiling internal SBA data to inform programmatic decisions, but also partnering with the key federal agencies to gather the most robust data sets to make informed policy.
Priority Goals
Statement:
Expand access to capital by adding 325 new and returning lenders to SBA’s flagship 7(a) program each fiscal year in FY2014-2015.
Description:
Providing access to capital has been one of the SBA’s critical strategies in meeting its objective to drive business formation, job growth and economic expansion particularly in underserved markets since the agency was created in 1953. By providing loan guarantees to reduce lenders’ loss exposure, the SBA provides an important credit lifeline to small businesses, especially startup businesses and businesses owned by women, minorities, veterans and other underserved groups who often cannot easily obtain credit in the conventional market. In the current economic conditions, SBA loan programs become even more crucial for ensuring that small businesses are not only surviving but also leading the way toward economic recovery and growth, as they have done time-and-time again throughout U.S. history.
SBA will increase small business access to capital by increasing the number of new or returning lenders in the fiscal year for the flagship 7(a) program (including the Community Advantage pilot program). New and returning lenders are a major component of SBA’s lending portfolio and are essential to growth in the quantity of loans approved and small businesses assisted. Each new or returning lender will expand SBA’s footprint and increase small business access to capital. Attaining a high volume of new and returning lenders from one fiscal year to the next will create a consistent pipeline of SBA loans into the hands of small business.
There are barriers and challenges to the SBA in achieving its priority goals:
- Economic Trends; micro and macro
- Issues within the Finance Industry as a whole
- Shrinking workforce in field offices which provide training
- Recent cases from the OIG reviewing SBA lenders underwriting criteria have triggered a more cautious approach from some lenders with some loan guaranty types
Statement:
Maximize small business participation in federal government contracting to meet the statutory goals and reduce participation by ineligible firms.
Description:
Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals continues to be an Administration priority. Federal contracting with small businesses is a win-win. Small businesses get the revenue they need to grow their businesses and create jobs, and the federal government gets the opportunity to work with some of America’s most innovative and nimble small businesses, often times with a direct line to the CEO.
In FY 2012, the federal government made real progress toward the 23 percent goal, with 22.25 percent or $89.9 billion in federal contracting dollars going to small businesses compared to 21.65 percent in FY 2011, with significant impact in key areas:
- For the first time, more agencies than ever before met or surpassed all of their prime contracting goals.
- Also, for the first time, the federal government exceeded the goal for service disabled veterans.
- The federal government had the highest percentage of contracts going to Small Disadvantage Businesses to date.
As a result of a government wide focus on increasing small business contracting opportunities, during President Obama’s first term (FY2009 - FY2012) the federal government awarded $376.2 billion in federal contracting dollars to small businesses. This is a $48.1 billion increase over the four preceding years even as we have seen reduced spending overall.
Also, since President Obama took office, the SBA has supported more than $132.61 billion in Federal government contracting dollars to small disadvantaged businesses. This represents a 36.6 percent increase when compared to the prior Administration. Under the Bush Administration’s first term, $97.10 billion in federal government contracting dollars were awarded to small disadvantaged businesses.
Although we have seen marked success over the last few years, we know more must be done. Many challenges exist for small businesses seeking to enter the federal procurement marketplace.
- The unpredictable and changing budget climate is a challenge for small businesses, and SBA is working hard to create an environment where small businesses can be successful in the federal procurement marketplace.
- The instability and ambiguity caused by Continuing Resolutions make it difficult to agency acquisition staff to plan effectively for small business utilization.
- Entering the federal supply chain can often be a lengthy and arduous process for many small businesses.
SBA’s GCBD unit must implement effective and efficient strategies to monitor the agencies’ progress to goal, support small businesses interested in working with the government and encourage agencies to improve data quality when reporting their contracting activities. SBA will increase its efforts to collaborate with and hold federal agencies accountable to achieving their goals.
Statement:
Increase the return rate for disaster survivor applications by 10 percent points from 24% to 34% return rate by September 30, 2015.
Description:
The FY13 baseline number for Disaster Loan Application Return Rate was 24%, so the goal for FY14 is to achieve 29% and 34% in FY15. Increasing the application return rate will improve the delivery of the Disaster Loan Program. The primary opportunity being addressed is that a higher application return rate should result in a greater number of disaster survivors that will apply for disaster loan assistance and receive much needed Federal disaster assistance. SBA’s plan to increase the application return rate also ensures that SBA's disaster assistance resources for businesses, non-profit organizations, homeowners, and renters can be deployed quickly, effectively and efficiently in order to preserve jobs and help return small businesses to operation.
SBA’s plan to increase the application return rate will indirectly make the Disaster Loan Program more efficient by: 1) saving costs on mailing application packets to 100% of disaster survivors referred to SBA; and 2) freeing up resources dedicated to preparing and mailing application packets that can be utilized in other critical areas of the application screening process that directly impact processing times.
Strategic Goal:
Building an SBA that meets the needs of today’s and tomorrow’s small businesses
Statement:
Building an SBA that meets the needs of today’s and tomorrow’s small businesses
Strategic Objectives
Statement:
Streamline, simplify, and strengthen SBA’s core programs and operations to ensure that they are high performing, effective and relevant to the needs of the small business community.
Description:
Entrepreneurs, small business owners and lenders have limited time and resources. The SBA works to continuously strengthen, streamline and simplify its programs to meet their needs. The SBA improved processes for managing fraud, waste and abuse, and; made strategic investments in its physical and IT infrastructure. These ongoing efforts have contributed to improved delivery of services and more efficient processes. The SBA also continues to move from paper-based processes to electronic platforms and to reduce overhead through its efforts to promote effective and efficient operations which include reducing travel expenses, consolidating real estate, improving fleet management and reducing redundancies in IT functions.
Statement:
Invest in the Agency’s employee recruitment, hiring, training, work-life programs and performance management so employees are engaged to more effectively serve small businesses.
Description:
The SBA makes training and leadership development a priority. The Office of Human Resources Solutions develops strategic human capital solutions to workforce issues and strives to create a work environment that attracts and retains the talented and high-performing workforce the Agency needs in order to accomplish its mission. Attracting high quality employees is just the start of the process; establishing work-life balance and delivering training and leadership opportunities helps staff thrive in the workplace and effectively serve small businesses.
Statement:
Mitigate risk to taxpayers and improve oversight across SBA programs.
Description:
Taxpayers, including entrepreneurs and small business owners, expect that their tax dollars are being used wisely. SBA programs give taxpayers a strong “bang for the buck,” and the Agency will continue to find ways to mitigate risk while ensuring that small businesses have access to and fully benefit from its programs. With an outstanding loan portfolio of over $100 billion, oversight of small businesses’ eligibility in tens of billions of government contract set-asides, a network of hundreds of grantee partners delivering counseling and training to over a million clients a year, and direct fiscal responsibility for the annual budget, the SBA has an extraordinary responsibility to taxpayers to mitigate risk and conduct oversight of its programs.
Priority Goal: Maximize Small Business participation in government contracting
Statement:
Maximize small business participation in federal government contracting to meet the statutory goals and reduce participation by ineligible firms.
Description:
Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals continues to be an Administration priority. Federal contracting with small businesses is a win-win. Small businesses get the revenue they need to grow their businesses and create jobs, and the federal government gets the opportunity to work with some of America’s most innovative and nimble small businesses, often times with a direct line to the CEO.
In FY 2012, the federal government made real progress toward the 23 percent goal, with 22.25 percent or $89.9 billion in federal contracting dollars going to small businesses compared to 21.65 percent in FY 2011, with significant impact in key areas:
- For the first time, more agencies than ever before met or surpassed all of their prime contracting goals.
- Also, for the first time, the federal government exceeded the goal for service disabled veterans.
- The federal government had the highest percentage of contracts going to Small Disadvantage Businesses to date.
As a result of a government wide focus on increasing small business contracting opportunities, during President Obama’s first term (FY2009 - FY2012) the federal government awarded $376.2 billion in federal contracting dollars to small businesses. This is a $48.1 billion increase over the four preceding years even as we have seen reduced spending overall.
Also, since President Obama took office, the SBA has supported more than $132.61 billion in Federal government contracting dollars to small disadvantaged businesses. This represents a 36.6 percent increase when compared to the prior Administration. Under the Bush Administration’s first term, $97.10 billion in federal government contracting dollars were awarded to small disadvantaged businesses.
Although we have seen marked success over the last few years, we know more must be done. Many challenges exist for small businesses seeking to enter the federal procurement marketplace.
- The unpredictable and changing budget climate is a challenge for small businesses, and SBA is working hard to create an environment where small businesses can be successful in the federal procurement marketplace.
- The instability and ambiguity caused by Continuing Resolutions make it difficult to agency acquisition staff to plan effectively for small business utilization.
- Entering the federal supply chain can often be a lengthy and arduous process for many small businesses.
SBA’s GCBD unit must implement effective and efficient strategies to monitor the agencies’ progress to goal, support small businesses interested in working with the government and encourage agencies to improve data quality when reporting their contracting activities. SBA will increase its efforts to collaborate with and hold federal agencies accountable to achieving their goals.
Expand All
FY16-17 Agency Priority Goals
An Agency Priority Goal is a near-term result or achievement that agency leadership wants to accomplish within approximately 24 months that relies predominantly on agency implementation as opposed to budget or legislative accomplishments. Click below to see this agency's FY16-17 Priority Goals.
Agency Priority Goal:
Strengthen and expand the network of lenders offering SBA products
Statement:
By September 30, 2017, expand access to capital for small businesses by increasing the number of lenders in SBA's 7(a) loan program from 2,244 (FY 2014) to 2,500.
Description:
Providing access to capital has been one of the SBA’s critical strategies in meeting its objective to drive business formation, job growth, and economic expansion particularly in underserved markets since the Agency’s creation in 1953. By providing loan guarantees to reduce lenders’ loss exposure, the SBA provides an important credit lifeline to small businesses, especially startup businesses and businesses owned by women, minorities, veterans and other underserved groups that often cannot easily obtain credit in the conventional market. SBA loan programs are necessary to ensure that small businesses are not only surviving but also leading the way toward US economic expansion and growth.
The 7(a) Loan program is the federal government’s primary small business loan program, assisting small businesses to obtain financing when they do not qualify for or otherwise have access to traditional credit. The SBA guarantees a portion of each loan (typically 50 to 90%) that participating lenders make by using the adjusted credit standards of the 7(a) loan program.
SBA's FY 2014-2015 Priority Goal to increase new and returning 7(a) lenders has reduced the decline from FY 2012 to FY 2014. SBA will continue to support small business access to capital by increasing the number of lenders participating in the flagship 7(a) loan program (including the Community Advantage pilot program). Lender participation is essential to growth in the quantity of loans approved and small businesses assisted. Attaining a high volume of lender participation will create a consistent pipeline of SBA loans to small businesses.
This Priority Goal directly supports SBA’s Strategic Objective 1.1 – Expand access to capital through SBA’s extensive lending network. Access to capital is critical to the long-term success of America’s small businesses. The top priority at the SBA is to get lending flowing to small businesses.
Key barriers and challenges:
- Economic Trends; micro- and macro-economic that impact whether banks want to provide SBA-backed loans such as:
- Lender may not have the technology in place to support migration to SBA systems
- Some industries may have a high default rate and a risk that would not allow a lender to underwrite a SBA backed loan
- Lender located in an area where some industries are effected by geographic factors that would make a risk (for example, Northeast Area has a big fishing industry that depends on weather, availability of product, regulations, etc.)
- Bank mergers impact the number of lending partners providing 7(a) loan
- Program awareness of SBA products and services and a shrinking workforce in field offices which provide training
Agency Priority Goal:
Maximize small business participation in government contracting
Statement:
Through September 30, 2017, maximize small business participation in federal prime contracting to meet the statutory goal of 23%, ensure targets for subgoals are met, and reduce participation by ineligible firms.
Description:
When a small business is awarded a government contract, the small business is often able to quickly create jobs and spur economic growth. The government agency often has a “direct line” to the CEO, helping ensure that products and services are meeting or exceeding expectations and serving America’s taxpayers. Also, underserved communities – including women, minorities, veterans and others – often have extreme difficulty in accessing federal contracting opportunities as market gaps remain. SBA’s unique contracting programs provide a path to business growth for these populations.
Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses.
Meeting and exceeding the federal government’s small business procurement goals continues to be an Administration priority. Federal contracting with small businesses is a win-win. Small businesses get the revenue they need to grow their businesses and create jobs, and the federal government gets the opportunity to work with some of America’s most innovative and nimble small businesses, often times with a direct line to the CEO.
This Priority Goal directly supports SBA’s strategic objectives:
- Strategic Objective 1.2 – Ensure federal contracting goals are met or exceeded by collaborating across the federal government to expand opportunities for small businesses and strengthen the integrity of the federal contracting certification process and data.
- Strategic Objective 2.1 – Ensure inclusive entrepreneurship by expanding access and opportunity to small businesses and entrepreneurs in communities where market gaps remain
Small businesses are agile, innovative and affordable partners for the federal government. Through small business contracting, the federal government acts as a catalyst for small business growth, innovation, and supports the national economic security of the nation. Congress designated SBA as the agency responsible for overseeing small business contracting across the federal government. The SBA takes this responsibility seriously as the strongest voice for small business across the Administration.
Key barriers and challenges:
- The unpredictable and changing budget climate is a challenge for small businesses, and SBA is working hard to create an environment where small businesses can be successful in the federal procurement marketplace.
- The instability and ambiguity caused by Continuing Resolutions make it difficult to agency acquisition staff to plan effectively for small business utilization.
- Entering the federal supply chain can often be a lengthy and arduous process for many small businesses.
- The Administration and SBA continue to increase efforts and collaboration to provide more opportunities for small businesses to compete for and win federal contracts.
- Strategic Sourcing, Bundling, and Contracting Consolidation continue to be major concerns for small business opportunity and expansion. While the government strives to balance affordability with opportunity, SBA engages with agencies to continue to promote broader competitive opportunities to ensure the health of the small business industrial base is not adversely affected due to strategic sourcing or consolidating requirements and to protect small business from contract bundling.
SBA must continue to implement effective and efficient strategies to monitor the agencies’ progress, support small businesses interested in working with the government, and improve the data quality agencies use to manage their contracting activities.
Agency Priority Goal:
Grow the number of 8(a)-certified disadvantaged small businesses
Statement:
By September 30, 2017, support more disadvantaged small businesses by increasing the number of approved 8(a)-certification applications by 5% each fiscal year, FY 2016 and FY 2017.
Description:
The 8(a) Program is an essential instrument for helping socially and economically disadvantaged entrepreneurs gain access to the economic mainstream of American society. The program helps thousands of aspiring entrepreneurs to gain a foothold in government contracting.
8(a) firms are also provided with business development assistance and can participate in the Mentor Protégé Program to build their competitive and institutional know-how to participate in competitive acquisitions.
A few years ago, the 8(a) Program boasted over 9,000 certified 8(a) participants, but has declined to less than 4,700 due to the administratively burdensome application process. Though the regulatory guidance provides the SBA approximately 90 days to process a complete application, several firms have endured delays that extend anywhere from 6 months to several years. Further, the SBA rate of approval for applicants that complete the application process is exceptionally low, under 50%. While over 2,000 applicants apply each year, the SBA rejects most applications as incomplete or missing documentation. Historically, only 25% of the applicants or about 500-600 applicants per year get through the burdensome process for a final decision from the Associate Administrator of the Office of 8(a) Business Development. The SBA’s low rate of approval has led to an industry of third party firms that charge socially and economically disadvantaged applicants anywhere from $5,000 to $75,000 to prepare the application and respond to the SBA processors. Some of these firms are taking advantage of applicants; and regardless of the amount paid, there is no guarantee of approval because the SBA approval rate is consistently less than 50%.
This Priority Goal is designed to grow the 8(a) Program by improving customer service for the 8(a) applicants and reduce the unnecessary administrative burdens on applicant firms. Growth of the program will open opportunities for socially and economically disadvantaged entrepreneurs to gain a foothold in government contracting.
The mission of the Office of Business Development is to execute activities authorized under Sections 8(a) and 7(j) of the Small Business Act to provide business development assistance to firms that are owned and controlled by economically and socially disadvantaged individuals. The office fulfills its mission by certifying the eligibility of prospective 8(a) business development firm participants and managing a national program that provides marketing, managerial, technical, and procurement assistance to help eligible businesses achieve their full competitive potential. The SBA will continue to work collaboratively with community development partners, credit unions, minority associations and others to tailor programs to meet their needs and ensure that SBA’s programs remain accessible to underserved communities.
This Priority Goal directly supports SBA’s strategic objectives:
- Strategic Objective 1.2 – Ensure federal contracting goals are met or exceeded by collaborating across the federal government to expand opportunities for small businesses and strengthen the integrity of the federal contracting certification process and data.
- Strategic Objective 2.1 – Ensure inclusive entrepreneurship by expanding access and opportunity to small businesses and entrepreneurs in communities where market gaps remain
- Strategic Objective 3.3 – Mitigate risk to taxpayers and improve oversight across SBA programs
The goals address the ongoing decline in number of 8(a) small businesses. Through 8(a) sole source and competitive contracting opportunities, the federal government acts as a catalyst for small business growth, innovation, job creation, and supports the national economic security of the nation.
When a small business gets a government contract, the small business is often able to quickly create jobs and spur economic growth. The government agency often has a “direct line” to the CEO, helping ensure that products and services are meeting or exceeding expectations and serving America’s taxpayers.
Key barriers and challenges:
Many challenges exist for growing the 8(a) program and increasing the total number of application approvals for 8(a) firms. However, the SBA is committed to make smart, bold, and customer focused changes to make the 8(a) program accessible to all firms that meet the eligibility requirements of the program. Consistent measurement of progress and monitoring of implementation of new and streamlined procedures will be key to avoid reverting to historical trends of rejecting 50% of more of the completed applications. Challenges include:
- Uncertainty whether competitors will respond favorably to the necessary regulatory changes that will be posted in the Federal Register to remove longstanding but unnecessary burdens on firms. Some examples are ‘wet signatures’ and a mandatory waiting period of 12 months to reapply after being declined by the SBA regardless of the reason for the decline.
- Potential for low employee engagement or desire for the status quo within the Office of Business Development. The staff assigned to process applications work remotely from the SBA Headquarters in Washington DC and have been trained in current processes that have proven burdensome.
- Office of Field Operation’s Business Opportunity Specialists (BOS) who conduct the day-to-day marketing to 8(a) applicants and provide business development for 8(a) certified firms. The BOS are assigned other priorities leaving minimal time for 8(a) business development. The decline in access to business development creates an increase in the number of firms that are terminated each year because they do not stay connected to the SBA and do not meet program requirements for annual reviews.
The SBA programs that contribute to this Agency Priority Goal are: Size Standards, Mentor-Protégé, 8(a) Business Development, 7(j) Technical Assistance.
Expand All
FY14-15 Agency Priority Goals
An Agency Priority Goal is a near-term result or achievement that agency leadership wants to accomplish within approximately 24 months that relies predominantly on agency implementation as opposed to budget or legislative accomplishments. Click below to see this agency's FY14-15 Priority Goals.
Agency Priority Goal:
Statement:
Expand access to capital by adding 325 new and returning lenders to SBA’s flagship 7(a) program each fiscal year in FY2014-2015.
Description:
Providing access to capital has been one of the SBA’s critical strategies in meeting its objective to drive business formation, job growth and economic expansion particularly in underserved markets since the agency was created in 1953. By providing loan guarantees to reduce lenders’ loss exposure, the SBA provides an important credit lifeline to small businesses, especially startup businesses and businesses owned by women, minorities, veterans and other underserved groups who often cannot easily obtain credit in the conventional market. In the current economic conditions, SBA loan programs become even more crucial for ensuring that small businesses are not only surviving but also leading the way toward economic recovery and growth, as they have done time-and-time again throughout U.S. history.
SBA will increase small business access to capital by increasing the number of new or returning lenders in the fiscal year for the flagship 7(a) program (including the Community Advantage pilot program). New and returning lenders are a major component of SBA’s lending portfolio and are essential to growth in the quantity of loans approved and small businesses assisted. Each new or returning lender will expand SBA’s footprint and increase small business access to capital. Attaining a high volume of new and returning lenders from one fiscal year to the next will create a consistent pipeline of SBA loans into the hands of small business.
There are barriers and challenges to the SBA in achieving its priority goals:
- Economic Trends; micro and macro
- Issues within the Finance Industry as a whole
- Shrinking workforce in field offices which provide training
- Recent cases from the OIG reviewing SBA lenders underwriting criteria have triggered a more cautious approach from some lenders with some loan guaranty types
Agency Priority Goal:
Maximize Small Business participation in government contracting
Statement:
Maximize small business participation in federal government contracting to meet the statutory goals and reduce participation by ineligible firms.
Description:
Congress has mandated that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts to Small Disadvantage Businesses; 5% of prime and subcontracts to Women-Owned Small Businesses; 3% of prime and subcontracts to HUBZone Small Businesses; and 3% of prime and subcontracts to Service-Disabled Veteran-Owned Small Businesses
Meeting and exceeding the federal government’s small business procurement goals continues to be an Administration priority. Federal contracting with small businesses is a win-win. Small businesses get the revenue they need to grow their businesses and create jobs, and the federal government gets the opportunity to work with some of America’s most innovative and nimble small businesses, often times with a direct line to the CEO.
In FY 2012, the federal government made real progress toward the 23 percent goal, with 22.25 percent or $89.9 billion in federal contracting dollars going to small businesses compared to 21.65 percent in FY 2011, with significant impact in key areas:
- For the first time, more agencies than ever before met or surpassed all of their prime contracting goals.
- Also, for the first time, the federal government exceeded the goal for service disabled veterans.
- The federal government had the highest percentage of contracts going to Small Disadvantage Businesses to date.
As a result of a government wide focus on increasing small business contracting opportunities, during President Obama’s first term (FY2009 - FY2012) the federal government awarded $376.2 billion in federal contracting dollars to small businesses. This is a $48.1 billion increase over the four preceding years even as we have seen reduced spending overall.
Also, since President Obama took office, the SBA has supported more than $132.61 billion in Federal government contracting dollars to small disadvantaged businesses. This represents a 36.6 percent increase when compared to the prior Administration. Under the Bush Administration’s first term, $97.10 billion in federal government contracting dollars were awarded to small disadvantaged businesses.
Although we have seen marked success over the last few years, we know more must be done. Many challenges exist for small businesses seeking to enter the federal procurement marketplace.
- The unpredictable and changing budget climate is a challenge for small businesses, and SBA is working hard to create an environment where small businesses can be successful in the federal procurement marketplace.
- The instability and ambiguity caused by Continuing Resolutions make it difficult to agency acquisition staff to plan effectively for small business utilization.
- Entering the federal supply chain can often be a lengthy and arduous process for many small businesses.
SBA’s GCBD unit must implement effective and efficient strategies to monitor the agencies’ progress to goal, support small businesses interested in working with the government and encourage agencies to improve data quality when reporting their contracting activities. SBA will increase its efforts to collaborate with and hold federal agencies accountable to achieving their goals.
Agency Priority Goal:
Statement:
Increase the return rate for disaster survivor applications by 10 percent points from 24% to 34% return rate by September 30, 2015.
Description:
The FY13 baseline number for Disaster Loan Application Return Rate was 24%, so the goal for FY14 is to achieve 29% and 34% in FY15. Increasing the application return rate will improve the delivery of the Disaster Loan Program. The primary opportunity being addressed is that a higher application return rate should result in a greater number of disaster survivors that will apply for disaster loan assistance and receive much needed Federal disaster assistance. SBA’s plan to increase the application return rate also ensures that SBA's disaster assistance resources for businesses, non-profit organizations, homeowners, and renters can be deployed quickly, effectively and efficiently in order to preserve jobs and help return small businesses to operation.
SBA’s plan to increase the application return rate will indirectly make the Disaster Loan Program more efficient by: 1) saving costs on mailing application packets to 100% of disaster survivors referred to SBA; and 2) freeing up resources dedicated to preparing and mailing application packets that can be utilized in other critical areas of the application screening process that directly impact processing times.
Agency Priority Goal:
Statement:
Expand small business access to export financing by increasing the number of lenders providing export financing solutions from 430 to 555 and the number of small business exporters receiving financing through SBA loan programs from 1,346 to 1,480 by FY2015.
Description:
The priority goal is directly tied to the objective of both the National Export Initiative (NEI) and the Export Promotion Cabinet (EPC) to expand SME access to trade financing, which has been identified as a gap issue for smaller exporters. Increasing access to export financing, combined with trade counseling and training, will contribute to the enhanced ability of current and future U.S. small business exporters to succeed in the global marketplace and supports the cross-agency goal of doubling U.S. exports.
There are barriers and challenges to the SBA in achieving its priority goals:
- From a marketing perspective, communicating and disseminating trade financing information to lenders and small business exporters could provide challenging given current, and anticipated, budget constraints on staffing.
- Inter-agency collaboration and joint initiatives can be challenging to manage, given the differing regulations and performance metrics of individual agencies, which might reduce the commitment of other agencies to help support this priority.
- Unique, and sometimes additional, Standard Operating Procedures (SOP) requirements for core export loans vs. other 7(a) loan products can confuse lenders and may require the creation of “Lender Training Manuals,” more extensive lender training, and Office of Capital Access support in implementing needed SOP revisions.
- In terms of operations, a reduced travel budget could greatly restrict the ability of field staff to deliver the necessary training to lenders and businesses that would expand the use of SBA loan programs for exporters, given that SBA's specialized trade finance specialists cover multiple states.
- The banking sector could receive another “financial shock,” forcing it to tighten lending requirements to small businesses and/or Basel III capital requirements could limit lending capacity.*
- U.S. export growth could slow, reducing demand for trade financing, as a result of slow overseas economic growth and/or a strengthening of the U.S. dollar, making U.S. exports less competitive.
Trade financing historically has been perceived by many lenders, especially community banks, as being too complex to be incorporated into their suite of financial products. Working with other federal agencies, SBA will help reduce the complexity of USG trade financing and export marketing programs and highlight the growing importance of exports to the U.S. economy, thereby encouraging more lenders to offer comprehensive business solutions to their export customers. In addition, SBA will leverage its outreach by working with state, federal, and other resource partners in order to promote customized trade financing options to the small business exporting community.
Success Stories
93% percent of Disaster Assistance loans are now processed electronically.
More than four million jobs have been supported from small business contract set-asides from FY 2009 to FY 2015.
