What are the historical highlights of the SBA?
Before the SBA was established on July 30, 1953 there were several organizations that incorporated a similar philosophy to that of SBA’s. Below is a timeline of some of those initiatives:
- 1932: The Reconstruction Finance Corporation (RFC) was created during the Great Depression and existed up until 1952. It was a federal lending program for all business (large and small) hurt by the Depression.
- 1942: The Smaller Ware Plants Corporation (SWPC) was created by Congress during World War II and disappeared with the end of the war. The SWPC provided private entrepreneurs with direct loans, encouraged large financial institutions to supply small enterprises with credit, and advocated small business interests to big businesses and federal procurement agencies. Near the end of the war, the Office of Small Business (OSB) began to provide educational services to small businesses.
- 1951: The Small Defense Plants Administration (SDPA) was founded during the Korean War and was abolished in 1953. The SDPA functioned like the SWPC, except that RFC had the lending authority.
- 1953: The Small Business Administration (SBA) was established.
- 1954: SBA began helping small businesses by providing loans, business training, technical and management assistance, and government procurement contracts.
- 1958: The Small Business Investment Company (SBIC) Program was created and through this program the SBA provided long-term debt and equity investments to high-risk small businesses.
- 1964: The Equal Opportunity Loan (EOL) Program was established and through this program SBA began to help those below the poverty level by relaxing the credit and collateral requirements.