The U.S. Small Business Administration Supports Women Business Owners in Their Financial and Business Management Needs

Created in 1953, the U.S. Small Business Administration (SBA) protects the interest of small businesses and helps preserve free competitive enterprise and the overall economic health of our nation. Since it was established, the organization has grown and evolved, adding an Assistant Administrator for Women’s Business Ownership. Today, that role is held by Ana Harvey who works to train and counsel women to finance and grow their businesses in the right way.

Harvey started her own translation business out of her desire to stay home with her children. While that business then grew to 75 employees with 25 languages, she says she would approach the process differently if she were to do it again today. “I had no business plan but all the drive in the world,” she says. “I financed my entire business with my credit cards and it was a huge mistake. What brought me to this business is that I don’t want other women business owners to go through that.”

Eight months ago, when Harvey was tasked by President Obama to fill this position, she set key goals for herself and her team. “We have some lofty goals but they’re all achievable. The SBA has always cared about supporting women,” she says. One thing that Harvey believes really benefits women business owners is the SBA’s Women’s Business Centers. With more than 110 offices around the country, these centers help women prepare for starting or expanding their businesses. Harvey emphasizes the importance of a business plan. These centers help women business owners create just that. “You know, the process of developing the business plan forces you to think very carefully about your target market and how you’re going to reach it. And it forces you to think about your goals and the money you need, where it is going to come from and where is it going to go,” she says. “When a lender sees that you have really done your homework, you have a plan to start or grow your business, you’re far more likely to get that loan, that line of credit you need. Without a business plan, getting a loan is almost impossible. Without a business plan, growing that business is a lot more difficult.”

The SBA’s Women’s Business Centers have their own resources for financing and help women ensure they’re financing their businesses the right way. These centers are also open at night or on the weekends to ensure that they’re accommodating the needs of working women. If there isn’t a Women’s Business Center in your area, there are also Small Business Development Centers.

To provide further support to business owners in today’s environment, last year the SBA rolled out enhanced ARC Loans that guarantee loans for individual banks. Normally, the SBA will guarantee 75 percent of a business loan, meaning that the bank would only risk 25 percent of their capital. Last year, they upped that amount to a 90-percent guarantee, meaning that the bank’s risk is only 10 percent. “The business has to be viable and making ends meet in the short term,” says Harvey. “The SBA just enhanced our programs last year and we know that women business owners still need help—we’re pushing for that.”

Meanwhile, the SBA strongly advocates business education for all business owners. There are countless resources available at the local business centers and online where the SBA includes training videos on topics like “How to Win Federal Contracts” and “Down-Shifting in a Slow Economy: Business Planning Guide.”

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