Which U.S. agency, created in 1953, provides loans, guarantees, and support for small businesses?

The U.S. Small Business Administration was created in 1953 to support American small businesses.

The agency helps entrepreneurs through programs including loan guarantees, disaster assistance, contracting support, counseling, and training. Rather than acting as a normal retail bank, the SBA commonly works with participating lenders to reduce lending risk through guarantees.

Its creation followed earlier federal efforts to assist small firms, including the Reconstruction Finance Corporation and the Small War Plants Corporation. The SBA became the principal federal agency focused specifically on small-business development.

The SBA is often confused with SCORE, a volunteer mentoring organization that partners with it, or with the Federal Reserve, which conducts monetary policy. The agency’s programs and eligibility rules vary, so an SBA-backed loan is still made through a lender and must be repaid.