Small
Business
Administration
FY2013
Overview
In FY2013, President Obama continues his investment in small businesses by providing more
tools to help them grow and create jobs, while also increasing SBA’s efficiency and effectiveness. New tools: SBA will roll‐out new initiatives for veterans and transitioning workers; launch
BusinessUSA.gov; boost efficiencies with electronic loan application submissions and
modernized data infrastructure; and guarantee up to $26 billion in loans to small businesses
(7a, 504, & SBIC).
Drivers of budget growth: (1) Subsidy costs have increased for SBA loan programs because
of risks inherent in an environment of sustained unemployment and depressed real estate
market as well as low‐performing loans made in mid‐2000s that continue to influence our
credit profile. (2) Disaster funding is increasing based on the $167 million for Disaster
Administration Expenses being provided under the disaster cap adjustment for
Presidentially Declared Disasters.
Tough choices: SBA has made tough budget choices in order to be fiscally responsible, but
we will continue to ensure our resource partners have the tools they need to support small
business owners and the next generation of entrepreneurs.
2
For
FY2013,
SBA
has
four
priority
goals
that
help
promote
the
agency’s
efficiency
and
effectiveness:
1.
Process
business
loans
efficiently.
By September 30, 2013, increase the use of paperless processing in the 7(a)
program from 72 percent to 90 percent and in the 504 program from 55 percent
to 75 percent to improve the efficiency, effectiveness, and level of service in its
business loan programs.
2.
Increase
small
business
participation
in
government
contracting.
By September 30, 2013, SBA will increase small business participation in
federal government contracting to meet the government wide goal that 23
percent of all prime contracting dollars go to small businesses, and continue to
ensure that the benefits of SBA’s small business programs flow to the intended
recipients.
3.
Process
disaster
assistance
applications
efficiently.
By September 30, 2013, increase the use of the Disaster Assistance electronic
loan application (ELA) by 50 percent.
4.
Expand
access
to
long
‐
term
capital.
From FY 2012 through September 30, 2013, commit at least $4.3 billion of
capital via the Small Business Investment Company program in order to
facilitate access to capital for high growth companies and enhance job creation
and retention by these companies.
Priority
Goals
Maximizing
SBA’s
Effectiveness
In
FY2013,
SBA
will
launch
several
new
initiatives
across
our
network
of
resource
partners
to
serve
the
next
generation
of
entrepreneurs:
– Lead national, gov’t‐wide Veterans
Entrepreneurship Training Initiative ($7M)
– Lead efforts to develop BusinessUSA.gov ($6M)
– Complete data center consolidation effort ($5M)
– Boost Office of Investment & Innovation
capabilities to help get more long‐term capital
to innovative, high‐growth small businesses
and spur job creation ($3M)
– Roll‐out Skills Training Initiative to train next
generation of workers and experienced workers
transitioning to new positions ($1.7M)
New
Initiatives
More Tools to Help Small Businesses
Grow and Create Jobs
Access
to
Capital
7(a)
‐
$16
billion
504
‐
$6
billion
5
SBA lending is back to pre‐recession levels and small
businesses continue to have more points of access to
capital. But, loans initiated in the mid‐2000s continue
to alter our credit profile.
SBA proposes to increase the loan subsidy and
decrease the authority to remain fiscally responsible,
while still meeting the capital needs of small
businesses.
Since SBA’s fees are statutorily capped, SBA proposes
to increase the loan subsidy to $351M and set the
program cap at the historical average to still meet the
needs of the small business community:
‐ 7(a) from $17.5B to $16B ‐ 504 from $7.5B to $6B
Recovery Act and Small Business Jobs Act provisions
included higher guarantees to entice lenders to
provide access to capital during tough economic
times. As the guarantees and markets return to
historical levels, SBA’s lending program levels will
return to historical averages.
* SBA’s credit profile is altered by a more risky lending environment
inherent in a time of high unemployment as well as a depressed real
SBA
continues
to
streamline
operations
to
maximize
the
effect
of
taxpayers’
dollars.
For
FY2013,
SBA
identified
inefficient
practices
to
reduce
or
eliminate
in
accordance
with
several
Presidential
initiatives
for
sustainability:
•
Reducing
printing
costs
by
pivoting
from
to
the
Internet
for
marketing
•
Using
technology
to
reduce
conference
costs
•
Modernizing
data
infrastructure
and
consolidating
data
centers
to
decrease
maintenance
needs
•
Saving
taxpayer
dollars
by
reducing
SBA’s
service
contracts
•
Streamlining
administrative
services
Making
SBA
More
Efficient
Smartly
Trimming
Overhead
Tough
Choices
To
Maintain
Fiscal
Responsibility,
SBA
Must
Do
More
with
Less
7
While the SBA has made tough budget choices, we
will continue to ensure our resource partners have
the tools they need to support small business owners
and the next generation of entrepreneurs.
Working with our resource partners, SBA will roll out
targeted entrepreneurial training for returning
veterans, skills training for new and mid‐career
workers, and support for regional hubs of innovators.
* Indicates that in FY2013 resource partner budgets were cut proportionally to ensure fairness. NON‐CREDIT PROGRAMS FY2011
($000)
FY2012
($000)
FY2013
($000)
7(j) Technical Assistance Program $ 6,354 $ 3,100 $ 2,790 Drug‐Free Workplace 997 0 0 HUBZone Program 2,194 2,500 1,976 Microloan Technical Assistance 24,603 20,000 19,760 National Women's Business Council 954 998 898 Native American Outreach 1,132 1,250 850 PRIME Technical Assistance 7,983 3,500 0 SBDC Grants* 120,916 112,500 101,093 SCORE* 6,986 7,000 6,300 Veterans Business Development 2,495 2,500 2,496 Women's Business Centers Grants* 13,866 14,000 12,600
Entrepreneurial Development Initiatives
(Clusters) 6,581 5,000 3,350
National Veterans Entrepreneurial
Training (VET) Program 0 0 7,000
