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Sba The Small Business Association Term Paper

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Of course, the FEMA application process itself was also problematic. The SBA created secure Internet-based application templates for aid to expedite the loan request process. Stress testing and plans for maximum user capacity levels was instituted within the system (SBA, 2006, GMO). User applications were thus better 'triaged' based upon likelihood of approval, and where the loan should be directed. Risk modeling was introduced, to help cope with future emergencies. The prediction of damage from a variety of types of disasters, in target locations would allow for anticipation of increased levels of demand (SBA, 2006, GMO). Unfortunately, improvement of the system was undertaken only after the backlog had been created. Unmet demand can create more demand, as businesses without critical resources can fall into more debt and see more damage being done to their businesses, as a result of the aftereffects of the disaster.

While the SBA blamed its faulty computer infrastructure for its initial problems, some politicians, such as Olympia Snowe, stated that the problem was less due to computer infrastructure, and more due to a lack of systems analysis that enabled the SBA to use the information on hand to predict and meet victim needs (SBA, 2006, GMO).

SRA: The SBA solution

In response to criticism, the SBA attempted to institute major reforms of its it infrastructure. It contracted SRA International, Inc. To create a new, web-enabled electronic loan application processing system to expedite the process. SRA had provided...

It offered systems integration, database engineering, and training and upgraded the SBA system to allow for increased loan processing traffic (SBA, 2006, SRA).
Although hardware and software improvement strategies were certainly needed, more improvement is desirable. Having expedited applications for victims of specific disasters might be necessary, as an improved it infrastructure would likely be able to support several applications. Individuals who were residents of an affected area could be given special codes to 'log in' to prioritize their application. There could also be built-in features within the future application to redirect applicants who might be poor credit risks and not suitable for SBA loans. Technology should ideally help, rather than hinder the loan review process because of the greater ease of the application and the potential for applicant segmentation. The SBA process of tweaking its online application and approval process is still a work in progress, although positive steps have been made.

References

SBA: Actions needed to provide more timely data assistance. (2006). GMO. Retrieved August

8, 2010 at http://www.gao.gov/new.items/d06860.pdf

US Small Business Association awards contract to SRA. (2006, April 3). SRA. Retrieved August

8, 2010 at http://www.sra.com/news/press-releases/phoenix.zhtml?print=1&ID=837791&c=131092&highlight=&p=irol-newsArticle

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References

SBA: Actions needed to provide more timely data assistance. (2006). GMO. Retrieved August

8, 2010 at http://www.gao.gov/new.items/d06860.pdf

US Small Business Association awards contract to SRA. (2006, April 3). SRA. Retrieved August

8, 2010 at http://www.sra.com/news/press-releases/phoenix.zhtml?print=1&ID=837791&c=131092&highlight=&p=irol-newsArticle
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