The SBA hopes to throw more weight behind entrepreneurs.
Magazine Contributor
2 min read

This story appears in the November 2002 issue of Entrepreneur. Subscribe »

The SBA wants to change itself into a mean, lean fighting machine. Administrator Hector V. Barreto Jr. has a five-year plan to make the sometimes unwieldy agency more responsive and less focused on the banks that are the backbone of its marquee loan and loan guarantee programs.

At hearings in the House Committee on Small Business in July, Lloyd A. Blanchard, the SBA's chief operating officer, said, "SBA, and not its private partners, must be 'in charge' of SBA's customers."

The SBA reconfiguration will include creating high-tech tools for grants, loan transactions and eligibility reviews. Regional offices will get more authority, and district offices will lose a number of loan-related responsibilities.

K-1 Is for the K-9s

Entrepreneurs claiming income from partnerships or S corporations can breathe easier. The IRS is discontinuing its Schedule K-1 document-matching program until improvements are made.

The program had already resulted in 65,000 notices being sent about potential discrepancies. (Recipients of those notices must answer them.) Schedule K-1s are documents filed by partnerships and S corps reporting income, deductions and credits individuals take out. Some of that information has to be included on the 1040.

Sen. Kit Bond (R-MO), top Republican on the Senate Small Business and Entrepreneurship Committee, says he has no problem with a matching initiative. But he had pressed IRS Commissioner Charles Rossotti to ensure that entrepreneurs not spend considerable time and money responding to unwarranted notices.

Stephen Barlas is a freelance business reporter who covers the Washington beat for 15 magazines.

More from Entrepreneur

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.