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Goldman Sachs Recommends Reauthorization of the SBA

Apr 2022

Policymakers at the state and federal levels are seeking ways they can further aid small businesses. Their challenge is to identify actions that can meet present difficulties, support future small business growth, and address pre-pandemic challenges that continue to hamper small business recovery, according to a recent Goldman Sachs report.

Goldman Sachs provides policy recommendations that can boost small businesses and offer Main Street the resources it needs to thrive. The most vital recommendation that Goldman Sachs provides is that Congress should reauthorize the Small Business Administration (SBA) for the first time in more than two decades.

Reauthorization would allow the SBA to modernize and adapt to the post-pandemic small business landscape. Small business owners report that Congress should prioritize specific programs through the reauthorization of the SBA:

• 70% said new access to capital programs.
• 61% said existing loan guarantee programs.
• 61% said disaster assistance relief programs.
• 58% said technical assistance and entrepreneurial development.
• 55% said procurement/contracting assistance and support.

They provide further recommendations on how to address other key issues impacting small businesses. To increase access to capital for small businesses, the report recommends that policymakers and the SBA:

• Enhance technical assistance to help small businesses become “credit ready.”
• Create more organized and clear information for small businesses about what is needed for SBA loan applications, and make this information easily accessible.
• Broaden the base of lender participation in the 7(a) loan program, including online lenders.
• Extend the Community Advantage program, which expands access to credit to underserved markets.

Workforce problems have been a recurring issue for small businesses, and enacting the following recommendations could improve the retention of small business employees:

• Create a resource guide and increase awareness of tax credits available to small businesses that provide benefits to their employees.
• Reduce certain regulations that can help small businesses offer retirement plans and emergency savings for employees.

Potential solutions to advance small business participation in federal procurement and government contracting include:

• Improve data collection so that policymakers can identify and target policy reforms.
• Increase communication between small business contractors, contracting officers and program offices.
• Raise the simplified acquisition threshold and simplify procurement processes, which would provide more procurement opportunities to small businesses.

Policymakers can help small businesses with the challenge of childcare by:

Streamline existing tax credits for small businesses to access and sponsor childcare.

• Encourage the SBA to create a base of resources for small businesses and small business childcare providers that highlights and explains tax benefits available to them.
• Create tax write-offs for small business contributions to improve childcare infrastructure within their community.

Source: Goldman Sachs Report – Bipartisan Solutions to Support Today’s Small Businesses