SBA Resources Available for IT Providers

The Small Business Owners Community had the opportunity to learn more about the government services available to support their company growth and projects. While most people are aware of the loans supported by the United States Small Business Administration (SBA), Carole Harris of the Illinois office pointed out they actually provide other services to support small business.

The three areas that the SBA focuses on include:

1.  Counseling and training

The SBA works with an alliance of individual organizations to provide a variety of small business counseling and training services across the country. This includes the SCORE (Service Corps of Retired Executives) Association, Small Business Development Centers (SBDCs), U.S. Export Assistance Centers, Women's Business Centers (WBCs) and the SBA District Offices. 

2. Contracts

The United States government is the largest purchaser of goods and services in the world, and the SBA can guide small IT services businesses on navigating the red tape and securing contracts. For example, section 8A of the small business code outlines the certification required in order for a business to sell goods to federal government. Understanding your industry NAICS (National Association of Industry Code Score) is also important, with several codes applying to IT providers that can be listed in contracts that government entities put out to bid. The SBS can assist a provider in defining the proper codes for their business.

3. Capital

This is, of course the most recognized aspect of the SBA. This isn’t direct, as the agency makes loans to banks which, in turn, lend the capital to small business that meet certain criteria. There are exceptions, such as a disaster where the federal government may loosen some of the regulations (but usually very limited time and conditions to apply). Understanding the criteria for an SBA-supported loan is crucial for a company looking to expand, as the terms are frequently better than direct commercial loans (if you can get them at all).

Harris suggested that individuals discuss their needs with local offices, and research the options available before committing to long term indebtedness. The TARP (Troubled Asset Relief Program) and other stimulus programs may also benefit some providers, so investigation could pay off for some of the channel businesses. Look for more information on this resource in future Small Business Owners Community meetings.