December 4, 2023

5 SBA Programs That Entrepreneurs Often Overlook

The U.S. Small Business Administration (SBA) offers a plethora of resources and programs to support entrepreneurs. However, amidst the well-known offerings, several valuable programs remain underutilized. Our team of experts has identified five such SBA programs that can provide significant support to small businesses but are often overlooked.

1. SBA Microloan Program

The Hidden Financing Gem: The SBA Microloan Program is a lesser-known financing option that offers loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The average microloan is about $13,000, making it an excellent choice for smaller businesses that do not require large-scale financing. These loans are administered through nonprofit lending organizations in each state, which also provide business-based training and technical assistance.

2. SBA 8(a) Business Development Program

Empowering Disadvantaged Businesses: This program is specifically designed to level the playing field for businesses owned by socially and economically disadvantaged people. The 8(a) program offers a range of assistance, including business development support, mentoring, procurement assistance, and access to surplus government property and SBA-guaranteed loans. However, it remains underutilized, particularly by eligible minority-owned businesses.

3. SBA Export Assistance Centers

Global Market Access for Small Businesses: These centers are valuable for businesses looking to expand into international markets. They provide personalized technical assistance in areas like market research, export financing options, and creating an export business plan. Despite the increasing importance of global trade, many small businesses are not taking full advantage of these centers.

4. SBA Surety Bond Guarantee Program

Securing Contract Bids through Guarantees: This program helps small businesses obtain surety bonds – a critical component for many contractors, particularly in the construction industry. The SBA can guarantee bonds for contracts up to $6.5 million, and in some cases up to $10 million, which can be a game-changer for small businesses bidding on larger projects.

5. SBA’s Office of Women’s Business Ownership

Empowering Women Entrepreneurs: While women are starting businesses at a record rate, many are not aware of the resources available through the SBA’s Office of Women’s Business Ownership. This office provides resources and support to help women entrepreneurs through programs like Women’s Business Centers, offering training, mentoring, and business development.

Maximizing Business Growth with SBA Programs

Many entrepreneurs are not fully aware of these programs, or they may find navigating the SBA’s offerings overwhelming. However, leveraging these underutilized resources can be a crucial step in maximizing business growth and sustainability.

1. Tailored Assistance: Each program offers specialized support that can be tailored to your business needs, whether it’s financial assistance, mentorship, or market expansion.

2. Accessibility and Inclusivity: These programs are designed to be accessible to a broad range of business owners, including those from disadvantaged backgrounds or those venturing into international markets for the first time.

3. Networking Opportunities: Participating in these programs opens up networking opportunities with other entrepreneurs, industry experts, and government agencies.

Conclusion: Unleashing Business Potential

The SBA’s lesser-known programs are invaluable resources for entrepreneurs looking to expand, diversify, or stabilize their businesses. From microloans to mentorship in global trade, these programs offer a range of tools tailored to meet the unique challenges faced by small businesses.

By tapping into these underutilized resources, entrepreneurs can gain a competitive edge, access vital support, and unlock new growth opportunities. It’s time for small business owners to explore these hidden gems and unleash their full business potential.