Entrepreneurs looking for guidance and resources often overlook the treasure trove of opportunities offered by the Small Business Administration (SBA). These valuable programs include advice, mentorship, access to funding, assistance with federal contracts, and a variety of other forms of support. Unfortunately, many time-pressed entrepreneurs remain unaware of these programs or fail to realize their full potential.
In a recent article in The Wall Street Journal, Holly Wade, executive director of the National Federation of Independent Business’s NFIB Research Center and a staunch advocate for small businesses, commented: “Find the tools that will help businesses achieve their goals. Stuff is often a challenge.
An SBA spokesperson said that while utilization of SBA programs has been growing steadily, with approximately 33.5 million small businesses currently benefiting from them, we are continually working to reach more businesses and expand the scope of available programs. The need to raise awareness is critical.
Here, we take a look at several lesser-known SBA programs that could greatly benefit small businesses, based on advice from consultants, government officials, and trade group executives who frequently work with them:
1. Small Business Development Center (SBDC)
The SBA-sponsored SBDC provides small businesses with consulting and training in a variety of key areas, including capital procurement, business planning enhancement, financial management and marketing. Karen Mills, former administrator of the Small Business Administration (SBA) under President Obama, emphasized the importance of consultation to determine a business’s specific needs and provide appropriate financial or other resources. To find the nearest SBDC, business owners can refer to the “Local Assistance” tab on the SBA website.
2. Grade Counseling Program
Since 1964, Score, a Herndon, Virginia-based nonprofit, has helped more than 11 million entrepreneurs start, expand or exit their businesses. Funded in part by the SBA, the organization has approximately 10,000 volunteers who provide expert guidance, resources and education throughout the United States and its territories. Score mentors provide guidance in various areas, including finance, human resources and business planning. As Karen Mills says, “This is the perfect place to review your business plan.” These professional mentors maintain ongoing communication with their small business clients via email, phone and video. The program offers a variety of services including training, webinars, webinars, on-demand courses and other valuable online resources. For more information or to find local mentors, business owners can visit the Local Assistance tab of the SBA website or visit Score.org.
3. Federal Contracting Assistance Program
The federal government strives to allocate at least 23% of federal contract funding to small businesses each year and provides dedicated programs to promote this goal. The Small Business Contracting Program generated $163 billion in federal contracts for U.S. small businesses in fiscal 2022, up from $154 billion in the previous fiscal year, according to SBA data.
Within this framework, the SBA administers programs to support disadvantaged small business owners who meet specific eligibility criteria. Additionally, the program specifically targets women business owners, veterans, and businesses in historically underutilized business zones, known as HUBZones. It is important to note that many business owners must be aware of these beneficial programs.
For example, the federal government has a goal of allocating at least 5% of federal contract funding to women-owned small businesses each year. However, it is important for many women-owned businesses to know that they can obtain certification to compete in this category. To qualify, businesses must meet SBA’s size standards (as determined by available online tools). In addition, the business must be owned and controlled by at least 51% of the shares by U.S. citizen women, with women managing day-to-day operations and making long-term decisions.
Another goal is to award at least 3 percent of federal contract funds annually to HUBZone-certified companies. To qualify for the program, small businesses must meet SBA size standards, meet certain ownership requirements, and locate their principal office in a HUBZone, among other conditions. Detailed information about these programs and other contracting opportunities can be found on the SBA website under the Federal Contracting tab.
4. Small Business Innovation Research (SBIR) Program
Also known as America’s Seed Funding, the SBIR program allocates more than $4 billion in early-stage funding annually to technology-focused entrepreneurs, startups and small businesses to transform innovative R&D concepts into commercial products and services. Although competition is fierce, the program awards more than 6,000 awards each year, with a selection rate of approximately 18% based on data from the past five fiscal years. For more information, resources and opportunities to get involved, business owners can visit sbir.gov.
5. SBA Loan and Investment Capital Program
The SBA has also expanded several loan and investment capital programs that are invaluable to many companies. Entrepreneurs should recognize the SBA’s diversity programs, which provide strong support for business growth and development. By leveraging these resources, small businesses can gain the guidance and tools they need to thrive in a competitive environment.
