This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SBA Struggles as Citigroup, AIG Hog Money

WASHINGTON ( TheStreet) -- When asked how the government is helping small-business owners, Karen Mills cites "the three Cs." "Contracting" and "counseling" are making strides, the head of the Small Business Administration says. But "capital" has been stymied as large banks and insurers such as Citigroup (CITI), Bank of America (BAC - Get Report) and AIG (AIG - Get Report) have received billions of dollars in bailouts to the detriment of smaller companies.

The SBA must ensure that 23% of government contracts go to small businesses, which amounted to about $100 billion last year, says Mills, who took the helm in April. The organization under Mills' regime also has been pushing the idea of regional economic clusters, partnerships of small manufacturers and big businesses, government agencies or academic institutions. Those are designed to spur economic growth, such as helping suppliers find new connections in new industries -- those in military defense, for example -- in the wake of the auto industry's downward spiral.

"Regional economic clusters are a very effective way to get small businesses to group together and get economies of scale that they lack just because they're small," Mills says. "We should not forget how much opportunity there is in manufacturing."

Meanwhile, Mills says she has seen a 7% uptick in the SBA's counseling services, such as the mentor/protege program in which a big company takes a disadvantaged firm under its wing so the two can compete for government contracts together. Granite Construction (GVA - Get Report) last month agreed to mentor contractor HydroTech Inc.. Northrop Grumman (NOC - Get Report) and Raytheon (RTN - Get Report) have mentoring relationships with parts manufacturers.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AIG $55.51 -0.57%
BAC $14.69 -0.68%
C $46.66 -0.15%
GVA $44.28 -2.80%
NOC $205.20 -0.20%


Chart of I:DJI
DOW 17,754.23 -76.53 -0.43%
S&P 500 2,063.70 -12.11 -0.58%
NASDAQ 4,775.2860 -30.0050 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs