SBA chief departure could mean changes for small-business owners

Entrepreneurs thinking about obtaining SBA financing or looking to the agency for other assistance in the coming months may soon need to alter their plans to work with the organization. It was recently announced U.S. Small Business Administration Chief Karen Mills will step down, and significant changes could be implemented after her departure. 

The SBA, which helps small-business owners and entrepreneurs obtain access loans, most recently reached out to help victims of Hurricane Sandy, approving more than $1.1 billion in disaster relief loans, according to The Associated Press. During Mills' time with the agency, she helped fight fraud, streamline agency processes, get lending to business owners in need and made it easier for smaller organizations to obtain federal contracts.

"Small businesses are now ready to go on the offensive," wrote Mills in a letter to SBA employees. "They are ready to expand to new markets, to scale their operations and to hire new workers. And I am confident that the SBA will be a driving force in the success for decades to come."

Are changes on the way? 
Mills announced she will remain in her position until President Barack Obama names her successor, who will likely face challenges and need to make changes to programs as the economy continues to struggle. 

According to Bloomberg Businessweek, the new chief will face a variety of struggles as he or she comes into office, the first of which could be the sequestration that is set to hit the country March 1. Unless lawmakers can come to an agreement in regard to spending cuts and deficit reduction, automatic cuts of $85 billion will kick in and impact every government agency, including the SBA. The sequester could limit the agency's lending capabilities, something Mills' successor would need to address in order to keep entrepreneurs coming to the SBA for business financing. 

One of the other difficulties the new SBA chief will face is convincing potential business owners the recession is truly over and getting them to begin expanding their companies, even though markets are still shaky. Many entrepreneurs may still be hesitant to obtain investment loans with revenue still growing slowly, and it will be up to the SBA's new leader to ensure business owners feel comfortable launching and expanding their firms with help from the agency.

Content presented by Bridge Bank, offering flexible, customized solutions for entrepreneurs.

Getting Started

Find your ideal banker:

Select any filter and click on Apply to see results

Featured Insights

By standard economic metrics, the country fully recovered from the recession in late 2013 when real GDP per capita...

Small-business owners are currently borrowing in record numbers. According to the most recent Thomson Reuters/PayNet...

Business leaders struggling to decide between raising debt vs. equity as the best path to growing their business...

From training staff to managing the company to working the books, small-business owners are constantly spinning...

There's good news in the big world of small businesses. According to the Kauffman Foundation's Index of...

Finding startup financing for a new enterprise or funding for a business expansion can be a challenging obstacle to...

Small business banking should be seeing a boon in the coming months provided trends continue if a recent...

Craft breweries are getting some much-needed help in making the shift to sustainable practices. The Green Brewery...

Small-business owners' confidence levels ticked up slightly last month. According to the National...

Americans' financial outlook is trending upward as consumer confidence levels...

Recent News

07/02/15
If you happen to be growing tired of ‘Grease’ lyrical references, imagine how tired...
06/30/15
PHOENIX - Western Alliance Bancorporation (NYSE: WAL) today completed its merger...
06/26/15
In a fairly uneventful week in terms of economic data, the Greek situation was at...
05/21/15
Michael Hengl and Ryan Banta to lead new teams at Bridge Bank San Jose, CA – May 19...
05/19/15
San Jose, CA – May 19, 2015 – Bridge Capital Holdings (NASDAQ:BBNK), whose...
05/08/15
The US dollar has given up roughly 3.5% against the Euro this week and, with the...
05/07/15
San Jose, CA – May 7, 2015 – Bridge Capital Holdings (NASDAQ:BBNK), whose subsidiary...
05/01/15
More disappointing economic data out of the U.S. and the UK along with substantial...
04/24/15
With a great deal of volatility and choppy trading, the week’s activity has revealed...
04/20/15
Conference Call and Webcast Scheduled for Monday, April 20, 2015 at5:00 p.m. Eastern...

Twitter

Featured Insights

Featured Insight

Business leaders struggling to decide between raising debt vs. equity as the best path to growing their business...

Featured Insight

Clarity can go a long way toward convincing an investor to buy a stake in your business. If you believe your company...

Featured Insight

Recurring revenue lending is an alternative form of senior debt financing that is particularly useful to growing...

Recent News

By standard economic metrics, the country fully recovered from the recession in late 2013 when real GDP per capita...

Small-business owners are currently borrowing in record numbers. According to the most recent Thomson Reuters/PayNet...

From training staff to managing the company to working the books, small-business owners are constantly spinning...

Twitter

  • Have a great long weekend! What are your plans? http://t.co/M41VJglV34 21 hours 50 min ago
  • Despite the sluggish economy, small-business are owners feeling more confident. Here's why: http://t.co/FesOSfv7Am 1 day 17 hours ago
  • RT @Inc: The secret to making smart investments in innovative businesses http://t.co/HthNZyFH3s 1 day 18 hours ago