While prioritizing the reduction of unnecessary government spending has been a focal point in Washington this year, an opinion piece by Gene Marks suggesting the elimination of the U.S. Small Business Administration (SBA) has missed the mark by labeling it a “failed experiment.”

Advocating for the dismantling of the SBA under the guise of cost savings or operational efficiency not only lacks insight but also poses a significant danger to the multitude of entrepreneurs who depend on its services.

Small businesses are often initiated by individuals with innovative concepts but lacking the essential financial means or business acumen to maneuver the intricacies of entrepreneurial ventures. To bridge this gap, the SBA provides vital assistance through its loan programs, Small Business Development Centers, and procurement aid. Without these crucial resources, numerous aspiring business proprietors would encounter difficulties in obtaining capital, securing government contracts, or recovering from economic downturns and natural calamities. The SBA was specifically established to rectify this inherent market deficiency.

The SBA’s loan initiatives, such as the widely utilized 7(a) and 504 loans, have empowered countless entrepreneurs to obtain financing when conventional banks were unwilling to take the risk. Annually, the agency facilitates billions of dollars in small-business loans, propelling job creation and fostering innovation. Critics contend that private financial institutions and investors could fulfill this gap, yet historical evidence suggests otherwise. Without the backing of the SBA, many small businesses, especially those owned by veterans, would encounter challenges in securing essential funding.

Apart from lending activities, the SBA holds a critical role in federal procurement. Small businesses procured over $180 billion in government contracts last year, largely due to the SBA’s championing and oversight. Disbanding the agency would consolidate power further into the hands of large corporations, making it increasingly challenging for small enterprises to compete.

Furthermore, the SBA has demonstrated its indispensability during times of adversity, be it responding to natural disasters like hurricanes and wildfires or economic crises, as evident during the aftermath of the COVID-19 pandemic. The agency swiftly provides targeted support to sustain small businesses, particularly crucial in rural and smaller communities where communication obstacles or limited resources may hinder business owners from receiving the necessary aid. The removal of this safety net would render entrepreneurs more susceptible and jeopardize the economic equilibrium of communities nationwide.

A primary obstacle currently faced by small businesses is the lack of awareness concerning federal programs designed to assist them. The SBA serves as a central repository, furnishing lucid, accessible guidance to ensure small-business proprietors can effectively navigate available resources. Without this dedicated aid, entrepreneurs would be left to decipher a puzzling array of government programs dispersed among various agencies, resulting in heightened confusion and inefficiencies.

Rather than dismantling the SBA, efforts should focus on fortifying it. Congress should concentrate on enhancing the efficiency and outreach of SBA initiatives to guarantee that small enterprises possess the requisite resources to thrive in an increasingly competitive economic landscape.

Over 60 million individuals in the U.S. are directly employed by small businesses. Their prosperity is paramount to the nation’s economic advancement and well-being. The SBA should not be viewed as a bureaucratic hindrance but as an essential collaborator in nurturing entrepreneurship and innovation.

If genuine concern exists for the future of small enterprises and the economic vitality they bring to our communities, it is imperative to invest in and modernize the SBA rather than eradicating it.

Todd McCracken serves as the president of the National Small Business Association.