History of Small Business Administration in Timeline

The Small Business Administration (SBA) is a US government agency supporting entrepreneurs and small businesses. Its core mission involves bolstering the national economy by fostering the creation and success of small businesses and aiding community recovery following disasters. The SBA's key functions are often summarized as the '3 Cs': capital, providing access to funding through loans and grants; contracts, assisting small businesses in securing government contracts; and counseling, offering advice and resources for business planning and management.

July 30, 1953: Creation of the SBA

On July 30, 1953, President Eisenhower signed the Small Business Act, creating the Small Business Administration (SBA).

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, the nation's largest network of volunteer, expert business mentors, 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 enable and 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 potential and current women business owners.

1996: House of Representatives Planned to Eliminate SBA

In 1996, the Republican-controlled House of Representatives planned to eliminate the Small Business Administration (SBA).

2000: Record High Budget

In 2000, the SBA received a record high budget.

2001: Start of SBA loan failure rate analysis

From 2001, the Cato Institute started analyzing the failure rate of all SBA loans.

2004: Expenditures Frozen

In 2004, during the Bush Administration, certain expenditures were frozen at the SBA.

2005: Inspector General Report on Procurement Awards

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

2008: Credit Freeze

In 2008, the credit market froze, prompting enhancements to SBA loans under the Recovery Act and the Small Business Jobs Act to provide up to a 90 percent guarantee, aimed at strengthening access to capital for small businesses.

October 2009: Government Accountability Office Report on Fraud

In October 2009, the Government Accountability Office released Report 10-108, which stated that the SBA and contracting agencies were failing to hold firms accountable for fraud.

2009: 7a Program guaranteed loans to Black-owned businesses decline

In 2009, 7a Program guaranteed loans to Black-owned businesses declined.

2009: Strengthened by the American Recovery and Reinvestment Act

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

2010: End of SBA loan failure rate analysis

By 2010, the Cato Institute completed the analysis of the failure rate of all SBA loans.

2010: Strengthened by the Small Business Jobs Act

In 2010, the SBA's budgets were further strengthened by the Small Business Jobs Act.

2010: Increased Maximum Size of 7(a) Loans

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

2010: Record Lending Volumes

In late 2010, the Small Business Administration experienced record lending volumes.

2011: 7a Program guaranteed loans to Black-owned businesses decline

By 2011, 7a Program guaranteed loans to Black-owned businesses had declined by 47%.

2011: Increased Support of Rural Small Businesses

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: Taxpayer cost due to loan failures

In 2011, the Cato Institute determined that the failure rate of all SBA loans from 2001 to 2010 was 19.4%, contributing to a cost to taxpayers of $6.2 billion.

2011: Fraudulent Scheme Uncovered

In 2011, the SBA, along with the FBI and the IRS, uncovered a massive scheme to defraud the 8(a) Business Development Program. Civilian employees of the U.S. Army Corps of Engineers and an employee of Eyak Technology LLC allegedly submitted fraudulent bills totaling over 20 million dollars.

January 2012: SBA Elevated to Cabinet Level

In January 2012, President Obama announced the elevation of the SBA into the Cabinet, a position it last held during the Clinton administration, making the administrator of the Small Business Administration a cabinet-level position.

2012: Association of Women's Business Centers Research

Research conducted by the Association of Women's Business Centers in 2012 indicated that 64% of WBC clients were low-income, 39% were persons of color, and 70% were nascent businesses. WBC services are provided in more than 35 languages.

2014: Black loans represent a small portion of 7a loans

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

2016: SCORE Mentors Helped Create 54,072 Businesses

In 2016, SCORE's more than 10,000 volunteer mentors helped their 125,000 clients create 54,072 small businesses, adding 78,691 non-owner jobs to the U.S. economy.

2016: SCORE Workshop Attendance

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

March 2018: SBA Franchise Directory Launch

In March 2018, the SBA launched the SBA Franchise Directory to connect entrepreneurs to lines of credit and capital, facilitating the growth of their businesses.

November 25, 2019: Rules and Regulations Published in the Federal Register

On November 25, 2019, the US Small Business Administration outlined new rules and regulations for the Women's Business Center Program in the Federal Register, Volume 84, No. 227.

2019: Black loans represent a small portion of 7a loans

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

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

On January 1, 2020, new rules were applied to the Women's Business Center Program, outlined under Title 15 of the US Code, to make the program more transparent and standardized.

April 17, 2020: Loan to Ruth's Hospitality Group Approved

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, which represents a departure from the SBA's mission.

May 21, 2020: Planned Parenthood Improperly Received PPP Funding

On May 21, 2020, it was reported that Planned Parenthood improperly received Paycheck Protection Program fundings, leading the SBA to send a demand letter requesting the funds' return.

December 2020: PPP Funds Mostly Went to Larger Small Businesses

In December 2020, data revealed that more than half of the money from the Treasury Department's coronavirus emergency fund for small businesses went to bigger small businesses, representing just 5 percent of the recipients.

July 19, 2023: US District Court Ruling on 8(a) Presumption

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