Message from the Administrator about the document:
I am pleased to present the U.S. Small Business Administration’s FY 2010 Summary of Performance and Financial Information report. This report summarizes the Agency’s efforts to help Americans grow businesses and create jobs by providing resources and tools, including: access to capital; opportunities in federal contracting; access to entrepreneurial education; and disaster assistance for businesses, homeowners, and renters.
In FY 2010, the SBA continued to play a crucial role in providing America’s entrepreneurs and small businesses with the tools they need to grow, create jobs, drive innovation and competitiveness, and lead our nation’s economic recovery.
In particular, the American Reinvestment and Recovery Act – and extensions of its successful temporary loan enhancements – continued to drive billions of dollars in SBA lending support to small businesses at a time when traditional markets remained extremely tight. Small businesses also won billions of dollars in Recovery Act contracts.
Also, at the end of FY 2010, the President signed the most significant piece of small business legislation in over a decade – the Small Business Jobs Act – which is now helping the SBA deliver even more opportunities in areas such as capital, contracting, counseling, and more.
Key SBA accomplishments in FY 2010 include:
Continued increase in SBA lending — Due to the fee reductions and higher guaranties first authorized by the Recovery Act, the Agency was able to support more than $22.4 billion (54,833 loans) in lending through its top loan programs, compared to about $17.9 billion (47,897 loans) in FY 2009. The average weekly loan volume for FY 2010 was $333 million, which is 29 percent higher than that of FY 2009 ($258 million)
Increase in support to high-growth small businesses — Due to an increase in the number and activity of licensees in the Agency’s Small Business Investment Company program, total financings to small firms needing equity and mezzanine capital investments reached a 50-year record high of nearly $1.6 billion, a 23 percent increase over the average of the previous four years. Notably, this program has no cost to taxpayers.
Increase in small business contracting with federal agencies — Through stronger efforts with federal agencies, the SBA helped more than 30 percent (nearly $11 billion) of total Recovery Act contracting dollars go to small businesses, an increase from the 25 percent of Recovery Act contracting dollars that went to small businesses in FY 2009 alone. Also during FY 2010, the Agency reported an increase from FY 2008 (21.5 percent) to FY 2009 (21.9 percent) for all contracting opportunities.
Continued focus on eliminating waste, fraud and abuse — The Agency continued to strengthen its commitment to mitigating risk while eliminating waste, fraud and abuse. For example, Agency officials conducted over 1,200 site visits to firms participating in the HUBZone contracting program. Also, with extensive public participation, the Agency overhauled regulations for the 8(a) business development and contracting program, helping ensure that benefits are flowing appropriately to small firms when the final rule is published in 2011.
Increase in entrepreneurial education resources — The SBA continued to reach out directly to small business owners through its network of 69 district offices nationwide. In addition, SBA’s grant-funded counseling partners (900 Small Business Development Centers, 110 Women’s Business Centers, and 368 chapters of an executive mentoring program called SCORE) experienced high demand for their free and low cost services from entrepreneurs and small business owners. Combined, they served over 1.1 million clients in FY 2010, including many who are adopting new strategies and/or reinventing their businesses in order to emerge from the recession in a more viable position. Also, these counselors helped small businesses access nearly $4 billion in capital.
Continued optimization of disaster assistance resources — The Agency continued to process disaster loans about 10 times faster than during Hurricane Katrina, with 95 percent of loans receiving initial disbursement within 5 days of closing. This efficient and effective response was especially critical in approving and deferring loans in the wake of the BP Oil Spill, during which the SBA set up dozens of temporary loan processing centers along the Gulf Coast states.
Under our revised Strategic Plan for fiscal years 2011 through 2016, the Agency will continue to find new ways to achieve operational excellence while increasing accountability and transparency. In the near term, this will be particularly important in continued efforts to roll out provisions of the Small Business Jobs Act, including those that will help small businesses find more opportunities in, and access to, capital, contracting, counseling, and exporting.
Also in FY 2011, the Agency will continue to ensure that taxpayer dollars are used effectively to provide more tools and resources to entrepreneurs and small business owners, including:
- A new rule that will help deliver more federal contracts to women-owned small businesses in over 80 industries where they are underrepresented;
- Several rules implementing the Small Business Jobs Act that will address a range of issues including debt refinancing, contract bundling, multiple awards contracts, and small business set asides;
- A new Advantage loan platform that will help provide more access to capital in underserved communities, which have been disproportionately hit by the recession, and
- Stronger overall efforts to increase both the number and reach of small business exporters in order to bolster U.S. competitiveness and job creation.
I am pleased to provide an assurance that SBA’s financial and performance data in this report are reliable and complete. SBA’s auditor issued an unqualified opinion on our FY 2010 financial statements.
As we move forward, the SBA will continue to promote the growth, innovation, and global competitiveness of America’s small business community as it creates jobs and leads the country toward greater prosperity in the 21st century.
Karen G. Mills
February 15, 2011