where does the sba get its funding 
the sba receives an annual budget approved by the federal government this money goes toward salaries grant and loan programs and administrative costs keep in mind that the sba doesn t actually provide loans to small businesses instead the majority of loans issued to small business owners through sba programs are guaranteed by the agency and issued by approved financial institutions and other lenders this source of capital helps individuals start and grow their businesses who qualifies for an sba grant the sba generally doesn t issue grants but it does provide grants to certain organizations that promote business ownership in their communities these include nonprofit organizations organizations that provide their communities with training and funding known as resource partners and educational organizations grants are not provided to owners who want to expand an existing business or to startups 2324the bottom linethe sba is the federal government s main resource for nurturing the growth of small businesses in the u s it not only provides loans mostly through third parties to help start or grow your business it also offers plenty of programs designed to increase your knowledge and expertise in keeping your business healthy from how to pay taxes to marketing and sales to cybersecurity and more the sba doesn t normally issue any grants except for a few that go to organizations many of them nonprofit that promote entrepreneurship in their communities it also advocates on behalf of small business owners local offices exist in all 50 states the district of columbia and american territories during the covid 19 pandemic the sba provided crucial financial support through both loans and grants to the small business community which was gravely impacted by the crisis 