This excerpt originally appeared in The Washington Examiner on March 28, 2012.

Small businesses with sound business plans and solid prospects are able to raise debt and equity capital through private means. If a small business has shaky finances and questionable prospects, it likely won't get private capital. The high failure rates on SBA-backed loans illustrate that the government's credit market interventions often misallocate capital toward wasteful ends and in an unfair manner. Stockman was correct 30 years ago. It is time to abolish the SBA.