Small Business Administration (SBA)
The federal agency that sets small business size standards, manages small business contracting programs, and provides loans and counseling to help small businesses grow.
How It Works
The SBA plays a critical role in federal contracting by defining what constitutes a "small business" for each industry (NAICS code) and managing programs that direct contract dollars to small firms. SBA programs include 8(a) Business Development (for disadvantaged businesses), HUBZone (businesses in historically underutilized areas), and the Mentor-Protege program. The SBA also guarantees small business loans, provides disaster assistance, and operates Small Business Development Centers. The government's goal of awarding 23% of contract dollars to small businesses is monitored by the SBA.
Related Terms
- Small Business Set-Aside — A federal contracting provision that reserves certain contracts exclusively for small businesses — part of the government's goal of awarding 23% of contract dollars to small firms.
- NAICS Code — The North American Industry Classification System code — a 6-digit number that classifies a business by the type of economic activity it performs, used to determine small business size standards.
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About This Definition
This definition is part of the TaxDollarData Federal Spending Glossary — 31 terms explaining how the U.S. government spends taxpayer money. All definitions are written in plain language for taxpayers, journalists, contractors, and researchers.