Business

The U.S. Small Business Administration (SBA) recently announced the Federal Register publication of SBA-proposed reforms to the Small Business Investment Company (SBIC) program.

Small Business Investment Company Reforms Proposed by SBA to Address Diversity

The proposed reforms are designed to reduce financial barriers while increasing access and diversity in the small business investment ecosystem in the United States. Structural aspects of the SBIC program will addressed by the reforms with the aim of improving the flow of SBIC regulatory capital to small businesses and start-ups deemed inadequately served by private investors alone.

Small Businesses to Benefit from Reforms

The proposed reforms will help small businesses and start-ups from underserved communities benefit from reduced barriers to SBIC program participation, especially with new private fund managers and private funds which will focus on equity and longer-term debt investments. As well as underserved communities and geographies, businesses in capital-intensive industries and technologies critical

Washington D.C., Oct. 24, 2022 (GLOBE NEWSWIRE) — Today, Administrator Isabella Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice in President Biden’s Cabinet for America’s 33 million small businesses, praised a new slate of key Biden-Harris Administration appointees serving critical positions at the SBA.

“With President Biden’s appointment of these talented individuals, the SBA will continue to strengthen its capacity to deliver for America’s small businesses and the communities they serve,” said Administrator Guzman. “I know they will work hard alongside the mission-driven SBA team to provide our capital, entrepreneurial development, and disaster recovery resources to advance our nation’s economy.”

Appointees and their roles are listed per office below:

Office of the Administrator

Liz Murray, Director of Scheduling and Advance. Ms. Murray brings nearly a decade of experience working for multiple members of the U.S. House of Representatives, including Congressmen Steve Israel and

The Small Business Administration (SBA) has proposed consolidating and making significant changes to the Veteran-Owned Small Business (VOSB) and the Service-Disabled Veteran-Owned Small Business (SDVOSB) programs, including the elimination of self-certification.

TAKEAWAYS

What GAO Found

In June 2021, GAO identified 15 priority recommendations for the Small Business Administration (SBA). Since then, SBA implemented three of those recommendations, including by developing and implementing an oversight plan for Paycheck Protection Program loans and by taking measures to improve lender compliance with a 7(a) program requirement.

In February 2022, GAO identified three additional priority recommendations for SBA, bringing the total number to 15. These recommendations involve the following areas:

• Improving oversight and communication for COVID-19 pandemic response.
• Enhancing disaster recovery efforts.
• Improving export promotion operations.

SBA’s continued attention to these issues could lead to significant improvements in government operations.

Why GAO Did This Study

Priority open recommendations are the GAO recommendations that warrant priority attention from heads of key departments or agencies because their implementation could save large amounts of money; improve congressional or executive branch decision-making on major issues; eliminate mismanagement, fraud, and abuse;