Collins disclosed the selection of Mills in a statement to reporters Friday morning. Obama is expected to announce the selection at a news conference Friday afternoon in Chicago.
Mills is a venture capitalist and a founding partner of the New York-based equity firm Solera Capital. She has been an adviser to Maine Gov. John Baldacci on economic matters. She's also president of the MMP Group in Brunswick.
The Small Business Administration represents the interests of small businesses and guarantees loans. It also provides loans for homeowners and businesses recovering from natural disasters.