“A big business starts small” – Richard Branson
It is undeniable that every large business we can think of, whether it may be Walmart, Amazon, ExxonMobil, Apple, started small. And as they scaled and grew into the behemoths they are today, investors and banks took on the risks to provide capital where-ever they saw fit. In fact, American’s successful venture into capitalism could not have occurred without small businesses. According to an article by the Office of Advocacy at the Small Business Administration (SBA), small businesses are commonly referred to the “the lifeblood of the U.S. economy” and “generate 44% of U.S. Economic Activity.” 1 And as the COVID-19 global pandemic changed the lives of so many Americans, so has altered the trajectory of our domestic output. According to the Bureau of Economic Analysis, our gross domestic product for Q2 in 2020 dropped 32.9%.2 The implications of that drop will have a profound effect on the country and our economic livelihood. Small businesses are no exception.
The U.S. has taken actions on combatting the effects of this invisible disease and enacted various economic levers to help jump start the economy. While the CARES Act is more associated with providing $1,200 to the less fortunate, it is riddled with controversy for providing millionaires and corporations with much larger tax breaks.3 Adding fuel to the fire, it has been noted that “black and latino business owners are struggling to get pandemic assistance.” 4 These facts are the inspiration for this analysis.
For decades, SBA Loans have been the best way to finance your business. The loans come in two flavors: SBA Loan 7a, SBA Loan 504. To avoid going into details about nuance qualifications and features, there are a slew of benefits to being awarded one of these awards. Unfortunately, there are certain cons that could completely wipe out businesses during this business climate. For instance, SBA loans take weeks to get approved and dislike startups or founders with poor credit. In the interest of their business, and the nation, banks have a duty to revisit areas that have traditionally been a catalyst for entrepreneurship.
Small Businesses Generate 44 Percent of U.S. Economic Activity - https://advocacy.sba.gov/2019/01/30/small-businesses-generate-44-percent-of-u-s-economic-activity/#:~:text=WASHINGTON%2C%20D.C.%20%E2%80%93%20Small%20businesses%20are,percent%20of%20U.S.%20economic%20activity.
Gross Domestic Product - https://www.bea.gov/data/gdp/gross-domestic-product
The CARES Act Sent you $1,200 Check but Gave Millionaires and Billionaires Far More - https://www.propublica.org/article/the-cares-act-sent-you-a-1-200-check-but-gave-millionaires-and-billionaires-far-more
Few Minority-Owned Businesses Got Relief Loans They Asked For - https://www.nytimes.com/2020/05/18/business/minority-businesses-coronavirus-loans.html
SBA Loans: What You Need to Know - https://www.nerdwallet.com/article/small-business/small-business-loans-sba-loans
Best Banks For Business Loans - https://www.startups.com/library/expert-advice/best-banks-for-business-loans
What it does
This project attempts to analyze data from the Small Business Administration (SBA) Loans provided by Enigma. This analysis will try to optimize targeting for businesses in need of SBA loans. Traditionally, SBA Loans take weeks to get approved. Borrows have looked for online lenders to speed up the process. If banks can target the areas in greatest need of a loan than they can help rebuild this economy faster.
How I built it
I currently downloaded Enigma’s SBA Loans (7a and 504) on AWS Data Exchange and moved the files on AWS S3. Then I imported the data into AWS QuickSight and analyzed the datasets.
Challenges I ran into
Creating a manifest file is not as intuitive as it seems. I hit a lot of roadblocks that slowed down my ability to analyze the data.
Accomplishments that I'm proud of
Completing this submission.
What I learned
I learned a lot about moving data within AWS Data Exchange and how to easy it was to analyze it in AWS QuickSight.
What's next for Aiding Small Business With Intelligent Targeting
I’m going to run the data on AWS SageMaker and find some models to optimize targeting.