The Small Business Act Of 1953 Essay

The Small Business Act Of 1953 Essay

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The Small Business Act of 1953 was responsible for the establishment of the Small Business Administration (SBA). The SBA was mainly founded to encourage “lending to small businesses through government loan guarantees”, along with being involved in direct loans opportunities for disaster relief and recovery and aiding small businesses in obtaining government contracts. The SBA was founded following the termination of the Depression-era Reconstruction Finance Corporation, which was adversely affected by accusations of misconduct during the Truman presidency. President Dwight Eisenhower was actually in opposition of the creating the SBA, but signed the legislation as a political move to challenge the idea that Republicans were obliged to big business.
To be able to qualify as a small business and to become entitled to awards for small businesses you must register the business. There are rules that will determine if the business is considered a small business based on what type and size of company, as well as other beneficial categories the business can be registered in. The SBA classifies business as “small” by the number of employees within a year (12 months), or by the typical number of receipts over the past three years.
The SBA began to grow exponentially once it began. SBA lending increased four times greater between 1954 and 1960 and staff sky-rocketed from 550 to 2,200 employees. With this expansion grew many scandals and letdowns at the SBA, such as the information that government loans were being used to establish “dummy” companies for the mafia. The SBA had so many scandals going on they received the moniker “Small Scandal Administration.”
The government began using the SBA as its main tool for practicing affirmative a...

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...e permitted. The SBA is ultimately responsible for contract approval. If negotiations are not initiated in a timely manner and an extension of time is not practical, the contracting agency is permitted to proceed with acquisition from alternate sources, after notifying the SBA.
Currently, This change deals with the issues of protesting an 8(a) participant’s eligibility and size status, the methods of requesting a proper size determination, and rules that apply to the 8(a) participants to leave the program. In regards to participant protesting the size or eligibility, the new rule proposes that an unsuccessful offeror have the option to ask for an official size determination from the SBA, which may uncover the ineligibility of the company. The new rule also proposes that if a contractor leaves the 8(a) program it will no longer be able to accept new 8(a) contracts.

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