History of Small Business Administration in Timeline

The United States Small Business Administration (SBA) is a US government agency supporting entrepreneurs and small businesses. Its mission focuses on strengthening the economy by fostering small business establishment, ensuring their viability, and aiding communities in economic recovery after disasters. The SBA operates on the "3 Cs": capital (providing access to funding through loans and grants), contracts (helping small businesses secure government contracts), and counseling (offering training, mentorship, and resources). It aims to level the playing field for small businesses and contribute to overall economic growth.

July 30, 1953: Creation of the SBA

On July 30, 1953, the SBA was created by President Eisenhower with the signing of the Small Business Act.

July 18, 1958: Small Business Act Amendments

On July 18, 1958, The Small Business Act Amendments of 1958 withdrew Title II as part of that act and made it a separate act to be known as the "Small Business Act".

1964: SCORE Founded

In 1964, SCORE was founded as a resource partner of the U.S. Small Business Administration.

1979: Office of Women-Owned Businesses Established

In 1979, the Office of Women-Owned Businesses (OWBO) was established by Executive Order 12138 with the mission to empower women entrepreneurs.

1983: Office of Hearings and Appeals Established

In 1983, the Office of Hearings and Appeals (OHA) was established within the SBA to provide an independent appeal against certain SBA program decisions.

1988: Women's Business Center Program Established

In 1988, the Women's Business Center Program was established under Title II of the Women's Business Ownership Act to provide training and counseling to women business owners.

1996: House of Representatives Planned to Eliminate SBA

In 1996, the Republican-controlled House of Representatives planned to eliminate the agency.

2000: SBA Received Record High Budget

In 2000, The Small Business Administration received a record high budget.

2001: Failure Rate of SBA Loans

From 2001 to 2010, the failure rate of all SBA loans is 19.4%.

2004: Expenditures Frozen

In 2004, certain expenditures for the SBA were frozen.

2005: Inspector General Report

In 2005, SBA Inspector General Report 5-15 stated that large businesses are receiving small business procurement awards and agencies are receiving credit for these awards.

2008: Enhanced SBA loans after credit freeze

In 2008, following a credit freeze, SBA loans were enhanced to provide up to a 90 percent guarantee to strengthen access to capital for small businesses.

October 2009: Government Accountability Office Report Released

In October 2009, the Government Accountability Office released Report 10-108 which stated that the SBA and contracting agencies have sent a message to the contracting community that there is no punishment or consequences for committing fraud.

2009: Decline in Loans

Between 2009 and 2011, 7a Program guaranteed loans to Black-owned businesses declined by 47%.

2009: Strengthened by American Recovery and Reinvestment Act

The Obama administration supported SBA budgets and strengthened it through The American Recovery and Reinvestment Act of 2009.

2010: Failure Rate of SBA Loans

From 2001 to 2010, the failure rate of all SBA loans is 19.4%.

2010: Increased Maximum Size of Loans

In 2010, The Small Business Jobs Act of 2010 increased the maximum size of 7(a) loans indefinitely from $2 million to $5 million.

2010: Record lending volumes

In late 2010, the Small Business Administration had record lending volumes. Under the Small Business Jobs Act, SBA loans were enhanced to provide up to a 90 percent guarantee to strengthen access to capital for small businesses.

2010: SBA Budget Strengthened by Small Business Jobs Act

SBA budgets were further strengthened by the Small Business Jobs Act of 2010.

2011: Decline in Loans

Between 2009 and 2011, 7a Program guaranteed loans to Black-owned businesses declined by 47%.

2011: Support of Rural Small Businesses Doubled

In 2011, President Obama announced that the SBA would double its support of rural small businesses to $350 million in the next 5 years.

2011: Fraudulent Scheme Uncovered

In 2011, the SBA, along with the FBI and the IRS, uncovered a scheme to defraud the 8(a) program involving civilian employees of the U.S. Army Corps of Engineers.

2011: Cost to Taxpayers

In 2011, the failure rate of all SBA loans from 2001 to 2010 contributed to a cost to taxpayers of $6.2 billion.

January 2012: SBA Elevated to Cabinet Level

In January 2012, President Obama announced that the SBA would be elevated into the Cabinet, making the administrator of the Small Business Administration a cabinet-level position.

2012: WBC Client Demographics

In 2012, research indicated that 64% of WBC clients were low-income, 39% were persons of color, and 70% were nascent businesses.

2014: Black Loans

Black loans are 3% of 7a loans for fiscal years 2014-2019.

2016: SCORE's Educational Workshops

In 2016, SCORE clients attended 119,957 online workshop sessions and 237,712 local workshop attendees benefited from in-person educational programming.

2016: SCORE's Mentoring Impact

In 2016, SCORE's more than 10,000 volunteer mentors helped their 125,000 clients create 54,072 small businesses.

March 2018: SBA Franchise Directory Launched

In March 2018, the SBA launched the SBA Franchise Directory to connect entrepreneurs to lines of credit and capital for business growth.

November 25, 2019: Rules and Regulations outlined for Women's Business Center Program

On November 25, 2019, rules and regulations outlined for the Women's Business Center Program in the Federal Register document, Volume 84, No. 227, Monday, November 25, 2019, Rules and Regulations.

2019: Black Loans

Black loans are 3% of 7a loans for fiscal years 2014-2019.

January 1, 2020: New Rules Applied to Women's Business Center Program

On January 1, 2020, new rules were applied to the Women's Business Center Program code by the US Small Business Administration, effective January 1, 2020, as outlined in the Federal Register document.

April 17, 2020: Forgivable loans approved to Ruth's Hospitality Group

On April 17, 2020, the SBA approved $20 million in forgivable loans to Ruth's Hospitality Group, a publicly traded company, as part of the Paycheck Protection Program.

May 21, 2020: Planned Parenthood Improperly Received Funds

On May 21, 2020, it was reported that Planned Parenthood improperly received Paycheck Protection Program fundings.

December 2020: Loans Went to Bigger Small Businesses

In December 2020, it was revealed that more than half of the money from the Treasury Department's coronavirus emergency fund for small businesses actually went to bigger small businesses.

July 19, 2023: US District Court Ruled Presumption is Unconstitutional

On July 19, 2023, a US district court ruled that the presumption in the 8(a) Business Development Program is unconstitutional because its use of racial discrimination doesn't pass the strict scrutiny standard.