Brooklyn's Progress
October 2002

The U.S. Small Business Administration (SBA) was created in 1953 to ensure a strong and vibrant small business sector. SBA serves as one of the federal government's most innovative and cost-effective tools for fostering economic development, job creation and individual opportunity. Unlike many of her sister agencies, SBA functions less as a distant, ponderous government agency and more as a cooperative local service. SBA's programs are geared towards building communities one small business at a time. SBA's primary mission has always been to help new small businesses get started and help existing small business grow by providing access to credit and venture capital, technical assistance and federal contracting. Many large corporations-Intel, Apple, Nike, Ben & Jerry's, Federal Express, Winnebago, Staples, and Callaway Golf, to name a few-secured financial capital during its early phases thanks to SBA assistance. Like today's small businesses, these corporate success stories started with only an entrepreneur and a dream. Fully half of the venture capital deals in the United States last year were done by SBA-licensed Small Business Investment Companies (SBICs). SBICs made 4,277 equity and debt capital investments amounting $4.45 billion during FY (Fiscal Year) 2001, double the average for the previous 10 years. Loans have been the primary tool SBA uses in aiding small businesses. Last year (FY 2001), more than $12.15 billion in loans were allocated to small businesses. Moreover, the SBA approved $3.5 billion in loans to over 13,250 minority-owned businesses, four times greater than the amount approved 10 years ago in 1991. The $3.5 billion amounts to almost 29 percent of all SBA loan dollars last year. In addition to committing greater focus to minority businesses, the agency is also addressing other avenues for diversifying its aid vehicles. Besides the primary business 7(a) and 504 loan guarantee programs, SBA now offers financial and federal contract procurement assistance, management assistance, disaster recovery assistance, specialized outreach to women, minorities and veterans, and advice and assistance to small business owners in international trade. In times of disaster, the SBA serves as the nation's disaster bank, making loans to homeowners, renters and business owners to repair and replace damaged real estate and personal property. SBA's Disaster Assistance loan program made 48,852 disaster recovery loans amounting to approximately $1 billion during FY 2001, with most of them going to victims of flooding caused by Tropical Storm Allison in Louisiana and Texas. Since Sept. 11, 2001, the SBA has made more than 8,495 loans amounting to $848.3 million to small businesses that suffered direct physical and/or economic damage as a result of the terrorist attacks on the World Trade Center and the Pentagon. The SBA's Government Contracting Program increases small business opportunities in the federal acquisition marketplace through comprehensive goals for small business and 8(a) contracting, the new HUBZones program, identification of potential small business contractors and subcontractors and other services. In FY 2000, the program helped small businesses get an estimated $44.7 billion in federal prime contracts and subcontracts. Along with its financial assistance, SBA provided business development services and technical assistance to 1.2 million small businesses in FY 2001 through the Service Corps of Retired Executives (SCORE), Small Business Development Centers (SBDCs), Women's Business Centers and others. These resources are available to counsel and train small business owners to finance, market and manage their companies. Clients are assisted in exploring their business ideas, developing and assessing their business plans, making cash flow projections and accurate financial statements, and formulating marketing strategies. Since its creation 49 years ago, the U.S. Small Business Administration continues to provide financial, technical and management assistance to help Americans start, run and grow their businesses. SBA will assist all entrepreneurs who come with a vision. We desire to keep small business residents a fixture in the growing American economy. For further information, please contact the New York District Office at 212-264-9487 or visit our website at www.sba.gov.