Entrepreneurs, in their search for guidance and resources, often overlook the wealth of opportunities offered by the Small Business Administration (SBA). These important programs include advice, mentoring, access to finance, assistance with government contracts, and other types of support. Sadly, many time-pressed entrepreneurs remain unaware of these systems or fail to explore their full potential.
In a recent article in the Wall Street Journal, Holly Wade, Executive Director of the NFIB Research Center at the National Federation of Independent Business, a staunch advocate for small businesses, notes, “It’s often a challenge to find something that would be most useful in a large pool of information.”
Although the use of SBA programs is growing steadily, with up to 33.5 million small businesses currently benefiting from them, there is an ongoing push to reach more businesses and expand the range of existing programs, according to an SBA spokesperson. The need for awareness is important.
Here, we shine a light on a few lesser-known SBA programs that can greatly benefit small businesses, as recommended by consultants, government officials, and trade group executives who often work with small businesses:
1. Small Business Development Centers (SBDCs)
SBA-funded SBDCs provide counseling and training to small businesses in a variety of key areas, including capital procurement, business planning development, financial management, and marketing. Karen Mills, former director of the SBA under President Obama, emphasizes the importance of counseling in identifying specific business needs and providing appropriate financing or other resources. To find the nearest SBDC, business owners can refer to the “Local Help” tab of the SBA website.
2. Points Training Program
Since 1964, Score, a nonprofit organization based in Herndon, Virginia, has helped more than 11 million entrepreneurs start, expand, or exit their businesses. The organization, funded in part by the SBA, boasts a roster of nearly 10,000 volunteers who provide professional training, services, and education throughout the United States and its territories. Results consultants oversee a variety of areas, including finance, human resources, and business planning. As Karen Mills says, “This is the perfect place to test your business plan.” These specialized advisors maintain ongoing communication with small business clients via email, phone, and video. The program offers a variety of services, including training, webinars, online workshops, on-demand courses, and other valuable online resources. For more information or to find a local advisor, business owners can visit the SBA website under the “Local Help” tab or check score.org.
3. Federal Contracting-Assistance Programs
The federal government strives to allocate at least 23% of all federal contract dollars each year to small businesses, offering special programs to facilitate this goal. In fiscal year 2022, small business contracting programs resulted in $163 billion in federal contracts for US small businesses, up from $154 billion in the previous fiscal year, according to the SBA.
Within this framework, the SBA administers programs to support disadvantaged small business owners who meet certain eligibility criteria. In addition, the programs cater specifically to women business owners, veterans, and businesses in historically underutilized business zones, known as HUBZones. Notably, most business owners should be aware of these beneficial programs.
For example, the federal government aims to allocate at least 5% of all federal contract dollars each year to women-owned small businesses. However, many women-owned businesses need to know that they are not allowed to compete in this category. To qualify, businesses must meet the SBA’s size standards, as determined by an online tool. Additionally, businesses must be at least 51% owned and controlled by US women, women who manage day-to-day operations and make long-term decisions.
Another goal is to award at least 3% of federal contract dollars to HUBZone-accredited companies annually. To qualify for this program, small businesses must meet the SBA’s size standards, meet certain ownership requirements, and have their main office in a HUBZone, among other conditions. Detailed information on these programs and other contracting opportunities can be found on the SBA website under the “Federal Contracting” tab.
4. Small Business Innovation Research (SBIR) programs.
Also called America’s Seed Fund, the SBIR programs allocate more than $4 billion each year to technology-focused entrepreneurs, startups, and small businesses to turn new research and development ideas into commercial products and services. Although highly competitive, the program awards more than 6,000 awards annually, with an approximate 18% selection rate based on five financial years of data. For more information, resources, and opportunities to participate, business owners can visit sbir.gov.
5. SBA loan and investment programs
The SBA also offers several loan and investment programs that can be beneficial to many businesses. Entrepreneurs should be aware of the various SBA programs, which greatly support business growth and development. By using these resources, small businesses can access the guidance and tools they need to succeed in a competitive environment.
