Future of Small Business

August 24, 1955

Report Outline
Congress and Small Business Aid Outlook
Problems Facing Small Businessmen
Federal Efforts to Help Small Business

Congress and Small Business Aid Outlook

Extension of Life of Small Business Aid Agency

Small Business, not generally faring so well as its big brothers in the present period of prosperity, received assurance of continuing government assistance in the closing hours of the first session of the 84th Congress. A bill to prolong the life of the Small Business Administration for two years, and to raise the limit on the size of individual loans by the agency from $150,000 to $250,000, received the final approval of both houses on Aug. 2 and was signed by President Eisenhower on Aug. 9.

As originally reported by the House Banking and Currency Committee, the bill would have doubled the lending authority of the Small Business Administration—from $275 million to $550 million—and otherwise expanded its powers. The Rules Committee, objecting to enlarging the agency's authority to that extent, refused to clear the bill for floor action. In modified form, however, the measure went through without dissent. Retention of a separate government agency devoted to the interests of small business had been recommended by the President, by the House and Senate Small Business committees, and by the Hoover Commission.

Purpose of S.B.A.; Definitions of Small Business

The Small Business Administration, set up by Congress on July 30, 1953, is the “first peacetime independent government agency created for the sole purpose of advising, counseling, assisting, and protecting the small business enterprises of the nation.” As such, it assumed the basic functions of the predecessor Small Defense Plants Administration and the small business loan functions of the Reconstruction Finance Corporation. The new agency also made federal assistance available to retail establishments, service enterprises, and manufacturing concerns not engaged in defense production.

ISSUE TRACKER for Related Reports
Small Business
Jun. 19, 1987  Small Business
Jan. 28, 1983  Small Business: Trouble on Main Street
Oct. 23, 1957  Aid to Small Business
Aug. 24, 1955  Future of Small Business
Mar. 02, 1950  Financial Aid for Small Business
Mar. 21, 1945  Revival of Small Business
Mar. 04, 1942  Small Business and the War
Jul. 01, 1939  Government Loans to Small Business
Apr. 03, 1934  Small Business Under the N.R.A.
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Small Business