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 national economy by fostering small business establishment and aiding community recovery after disasters. The SBA's activities are summarized as the "3 Cs": capital (providing access to funding through loans and grants), contracts (helping small businesses secure government contracts), and counseling (offering guidance and resources for business development and management). The SBA plays a vital role in promoting small business growth and economic stability.

July 30, 1953: Creation of the SBA

On July 30, 1953, Republican President Eisenhower created the SBA 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 made the Small Business Act a separate act with the function to aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns.

1964: Founding of SCORE

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

1979: Establishment of Office of Women-Owned Businesses

In 1979, the Office of Women-Owned Businesses (OWBO) was established by Executive Order 12138 with the mission "to enable and empower women entrepreneurs through advocacy, outreach, education and support."

1983: Establishment of Office of Hearings and Appeals

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

1988: Establishment of the Women's Business Center Program

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 the agency

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

2000: Record high budget

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

2001: Start of SBA loan failure rate

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

2004: Expenditures frozen

In 2004 certain expenditures of the Small Business Administration were frozen.

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 and agencies were receiving credit for these awards.

2008: Credit freeze and enhanced SBA loans

In 2008, after a credit freeze, SBA loans were enhanced under the Recovery Act and the Small Business Jobs Act to provide up to a 90 percent guarantee, strengthening access to capital for small businesses.

October 2009: GAO Report on accountability

In October 2009, the Government Accountability Office released Report 10-108 which stated that the SBA and contracting agencies had failed to hold firms accountable, leading to a lack of consequences for committing fraud.

2009: Decline in loans to Black-owned businesses

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

2009: Strengthening of SBA through 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

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

2010: Strengthening of SBA budgets by the Small Business Jobs Act

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

2010: Increase in 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: Decline in loans to Black-owned businesses

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

2011: Doubling of 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: Fraudulent scheme uncovered

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

2011: Cost to taxpayers

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

January 2012: Elevation of SBA to Cabinet Level

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

2012: Association of Women's Business Centers research data

Research conducted by the Association of Women's Business Centers in 2012 indicates that 64% of WBC clients were low-income, 39% were persons of color, and 70% were nascent businesses.

2014: Loans to Black-owned businesses

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

2016: Educational workshops

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

2016: SCORE's impact

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.

March 2018: Launch of SBA Franchise Directory

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

November 25, 2019: Announcement of new rules for Women's Business Center Program

On November 25, 2019, the US Small Business Administration announced new rules for the Women's Business Center Program to make it more transparent in reporting on progress and financial allotments, as well as providing improved standardization overall.

2019: Loans to Black-owned businesses

Black loans were 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, the US Small Business Administration applied new rules to the code for the Women's Business Center Program as outlined in the Federal Register document.

April 17, 2020: Approval of loans 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 PPP Fundings

On May 21, 2020, it was reported that Planned Parenthood improperly received Paycheck Protection Program fundings and the SBA sent a demand letter requesting that they return the funds.

December 2020: Funds to Bigger 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.

July 19, 2023: Ruling on presumption of social disadvantage

On July 19, 2023, a US district court ruled that the SBA's presumption of social disadvantage for certain groups when applying for the 8(a) Business Development Program is unconstitutional.