New SBA Chief Has Franchise Background

The Small Business Administration has a new boss, and one with a franchise background no less. Steven Preston, the former executive vice president at The ServiceMaster Co., an international franchise with more than 5,000 locations, was sworn in as SBA Administrator last week. Mr. Preston replaces Hector Barreto, who was appointed in 2001 by President Bush shortly after taking office. Barreto resigned amid concerns that the administration did not react fast enough to the Hurricane Katrina crisis. The SBA was also roundly criticized for reacting to the events of 9/11 by giving out a mish mash of emergency small business loans throughout the country unaffected by the natural disaster.

Preston's appointment comes at a time in which there is widespread consensus that the SBA's mission deserves serious reexamination.  Asks Inc.com, "Should the government be in the business of backing loans? What companies should qualify for special treatment when it comes to government contracting? And do the SBA's programs focus too much on mom-and-pop businesses and not enough on emerging growth companies?"