Despite financial institution studies on the contrary, small business loans have change into even more tough to obtain. The Small Business Administration (SBA) was created by the Small Business Act of 1953 and derives its current existence and authority from the Small Business Act ( 15 U.S.C. 631 et seq.) and the Small Business Investment Act of 1958 ( 15 U.S.C. 661 ).
In actual fact, the SBA is perhaps the perfect prototype for a Trump administration agency: a public-non-public partnership driving helpful outcomes to a important (however typically neglected) part of the economic system, all at a low price to taxpayers.
Whereas some of Trump’s earlier administration picks have raised an eyebrow or two in the past two weeks, his selection of Linda McMahon, professional wrestling mogul and spouse of WWE legend Vince McMahon, to move the Small Business Administration will doubtless be his most scrutizined yet.
The Small Business Administration, which was re-elevated into the Cupboard in 2012 , makes government-backed loans to small businesses, guides federal contracts to them, and supplies grant funding to groups that offer counseling to small businesses. The SBA can assure as a lot as eighty five % on loans of up to $a hundred and fifty,000 and seventy five p.c on loans of greater than $one hundred fifty,000. As a small business professional, I get more questions on marketing than another facet of business—and it’s been that method for the final 30 years.
For instance, to be thought of small, a manufacturing business cannot exceed 500 employees; wholesale trade firms can not exceed 100 staff; retail trade is restricted to annual receipts of $7 million; and basic and heavy building should be below receipts of $33.5 million.