Small Business Administration's Role in Supporting U.S. Small Businesses

What's Happening?

The Small Business Administration (SBA) defines small businesses as independent entities with fewer than 500 employees, though this can vary by industry. As of 2024, there are over 34.7 million small businesses in the U.S., employing around 59 million Americans. The SBA provides resources such as loans, grants, and government contracts to support these businesses. Small businesses are crucial for job creation, accounting for 61.1% of net new jobs from 1995 to 2023. They also contribute significantly to the U.S. GDP and private-sector payrolls.

Why It's Important?

Small businesses are the backbone of the U.S. economy, constituting 99.9% of all businesses. They drive innovation, job creation, and economic resilience. The SBA's support through loans and grants helps small businesses compete with larger corporations and access necessary resources. This support is vital for maintaining economic diversity and fostering local economies. By providing employment opportunities and contributing to the GDP, small businesses play a critical role in the nation's economic health.