Sba Paul
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The SBA provides assistance to small businesses through 10 regional and 69 district offices. It offers various programs including financial assistance, contracting assistance, entrepreneurship education, and support for technology development and innovation. The SBA works with partners to help small businesses start and grow but does not provide direct loans, instead guaranteeing loans made by conventional lenders.
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- 3. 10 REGIONAL OFFICES 69 DISTRICT OFFICES
- 11. GOVERNMENT CONTRACTING ASSISTANCE Programs to assist small businesses in the government contracting arena.
- 24. EXPORT TRADE ASSISTANCE PARTNERSHIP ( ETAP) Resource Partners: U.S. Department of Commerce SCORE CITD SBDC Export-Import Bank U.S. Export Assistance Center Others
- 30. LOAN MATURITIES fully amortized - no balloon The SBA loans can be used for working capital, operational expenses, acquisition of equipment or factory/fixture for manufacturing. There are other loan categories such as:
- 32. SBA DISASTER LOANS Loans to homeowners and businesses in the aftermath of a disaster
- 38. U.S. Small Business Administration International Trade Finance Programs
- 44. Negotiable between applicant and lender SBA fee is one quarter of 1.00% of the SBA guaranteed portion for 12 months or less Example $100,000 loan x 90% SBA guaranty =$90,000 SBA guaranteed portion x0.25% =$225.00 fee due from borrower Export Working Capital Program Interest Rates & Fees
- 52. THE END SANTA ANA DISTRICT OFFICE 200 W. Santa Ana Blvd., Suite 700 Santa Ana, CA 92701 (714) 550-7420 http://www.sba.gov/ca
Hinweis der Redaktion
- Mission Statement: The SBA was created to provide financial, technical and management assistance to help Americans start, run and grow their businesses. SBA FACTS: * Nations largest single financial backer of small business - Portfolio of business loans, loan guarantees, and disaster loans of more than $45 billion and venture capital portfolio of $13 billion. * Established in 1953 Small Business Facts & Stats: There are approximately 25 million small businesses in the US Small businesses employ more than 50% of the private work force Generate more than half of the nations gross domestic product Principal source of new jobs in the US Provide 55 % of innovations Represent 96 % of all US exporters
- Slides 2-4 are r ecommended as introductory slides to your program- the slide you select will depend on the areas you have been asked to emphasize in your presentation. Use it to introduce the programs you will be discussing. For example: “ I would like to discuss SBA’s programs and services by highlighting programs in three basic areas …”
- Slides 2-3 are r ecommended as introductory slides to your program- the slide you select will depend on the areas you have been asked to emphasize in your presentation. Use it to introduce the programs you will be discussing. For example: “ I would like to discuss SBA’s programs and services by highlighting programs in three basic areas … can name the programs you expect to cover under each heading.”
- If you would like to say more about these resources – consider using slides 5 &/or 6 & 7 to expand upon the services of SCORE &/or the SBDC Management and technical assistance is provided through our resource partners - the Small Business Development Centers (SBDCs), local chapters of Service Corps of Retired Executives (SCORE), and our online resources. The SBDC’s and SCORE provide free one-on-one consulting at no charge on all aspects of small business management, including financing, international trade, marketing, business plan development and government contracting. SCORE is made up of volunteers who have retired from their own businesses or corporate America and now volunteer their time assisting small businesses. SCORE tends to specialize in assisting start-up or new businesses, but established businesses will find experts in specific fields available to provide free assistance. Both SCORE and the SBDC’s conduct a variety of workshops on topics such as Starting a business, Developing a business plan, Legal aspects of business, etc. A calendar of the management training workshops is published once a month by our office and is available online at www.sba.gov/calendar/states/california.html In Orange County – In addition to the OC-SBDC we have the Venture Point SBDC which provides assistance to high tech/ high growth firms who are usually seeking equity financing.
- If you would like to say more about these resources – consider using slides 5 &/or 6 & 7 to expand upon the services of SCORE &/or the SBDC Management and technical assistance is provided through our resource partners - the Small Business Development Centers (SBDCs), local chapters of Service Corps of Retired Executives (SCORE), and our online resources. The SBDC’s and SCORE provide free one-on-one consulting at no charge on all aspects of small business management, including financing, international trade, marketing, business plan development and government contracting. SCORE is made up of volunteers who have retired from their own businesses or corporate America and now volunteer their time assisting small businesses. SCORE tends to specialize in assisting start-up or new businesses, but established businesses will find experts in specific fields available to provide free assistance. Both SCORE and the SBDC’s conduct a variety of workshops on topics such as Starting a business, Developing a business plan, Legal aspects of business, etc. A calendar of the management training workshops is published once a month by our office and is available online at www.sba.gov/calendar/states/california.html In Orange County – In addition to the OC-SBDC we have the Venture Point SBDC which provides assistance to high tech/ high growth firms who are usually seeking equity financing.
- The OC SBDC does consulting in Brea, Anaheim, Lake Forest and in their main office in Santa Ana ( 900 N Broadway) – 714-564-5200. Call to schedule an appointment - not in offices outside Santa Ana on a daily basis. free one-on-one consulting in English, Korean and Spanish & low cost workshops. IE-SBDC- Main office in Riverside – Satellite offices (open 5 days a week) – in Victorville, Ontairo, Palm Springs and Coachella. – main line # 909-781-2345. : free one-on-one consulting in English and Spanish & low cost workshops. Outreach Offices – ( one day a week) Murrieta, Corona, San Bernardino, Barstow, Indio, Joshua Tree, Rancho Cucamonga Venture Point Tech Coast SBDC – Located in OC – provides free consulting services to high tech/high growth firms. Firms are typically seeking equity financing. They can provide assistance with firms seeking SBIC financing or SBIR /STTR financing. Conduct several workshops , such as business plan development targeted to investors, developing a board and or management team and special events such as the National Science Foundation’s Life Science Conference, Corporate Partnering and Capital presentations before Venture Capital companies.
- Network of retired and semi-retired executives and business owners; target business start-ups workshops and seminar Saturday workshop on starting a business (held in OC) marketing, management, business plans, doing business on the Internet,etc. provide industry specific advice free one-on-one counseling Three Chapters (Santa Ana, 2 Inland Empire) Santa Ana-200 W. Santa Ana Blvd. – also provide consulting services in Dana Point, Lake Forest, Las Flores, Costa Mesa, San Juan Capistrano Inland Empire – Main location is in Riverside at Riverside Chamber office – also provide consulting services in Corona. Palm Springs
- Use this slide when you plan to use additional government contracting slides to explain the individual programs. The Federal Government is the largest single purchaser of goods and services in the United States. The SBA has several programs and resources to assist small businesses in the government contracting arena. The 8(a) and SDB programs are for socially and economically disadvantaged firms – these business development programs assist them in marketing their goods and services to the Federal government. ProNet - Procurement Network free registration for all small businesses - marketing tool for all small businesses used by purchasing agents from government agents as well as prime contractors – allows them to search for firms with specific capablities. HUBZONEs - Provides price preferences & sole source contracts to businesses located in historically under utilized business zones. Surety Bonds – SBA provides a guarantee to Surety companies, which reduces their risk and makes them more inclined to issue a bond – great for companies that have never had a bond. Sub-Net - Prime contractors use SUB-Net to post subcontracting opportunities. Small businesses can review this web site to identify opportunities in their areas of expertise. While the web site is designed primarily as a place for large businesses to post solicitations and notices, it is also used by Federal agencies, state and local Governments, non-profit organizations, colleges and universities, and even foreign Governments for the same purpose. Additional information and links to other resources on all of these programs is available in our Small Business Resource Guide and on the web at www.sba.gov/gc
- Use this slide when you only plan to use one slide to explain government contracting. Information below provides just a brief highlight of all programs . The Federal Government is the largest single purchaser of goods and services in the United States. It is our job at SBA to use the procurement programs available to us to insure that small businesses receive a fair share of government contracts. The SBA has a variety of programs to assist firms interested in contracting with the federal government. Additional information and links to other resources on all of these programs is available in our Small Business Resource Guide and on the web at www.sba.gov/gc
- The 8(a) program is a 9 year business development program. Provides federal government contracts and other assistance to small companies owned by socially and economically disadvantaged persons. Eligibility Highlights Net worth $250,000 not including owners equity in firm and equity in personal residence 51% controlled by socially & economically disadvantaged person Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group. Social disadvantage must stem from circumstances beyond their control. In the absence of evidence to the contrary, individuals who are members of the following designated groups are presumed to be socially disadvantaged: African American, Hispanic, Asian Pacific, Native American, Women, Sub continent Asian American Economically disadvantaged individuals are socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities. Individuals who are not member of a designated group claim social disadvantage – if they can establish social disadvantage on the basis of a "preponderance of evidence." Generally, preponderance is evidence of quality and quantity which leads the decision maker to conclude, objectively, that the existence or truth of the fact(s) asserted is more probable than not. Such as at least one objective distinguishing feature that has contributed to social disadvantage, such as race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society, or other similar causes not common to individuals who are not socially disadvantaged:
- National Internet-based database. Free to all small business owners. Used by contracting officers from public and private agencies – the search engine allows them to search for firms with specific capabilities, equipment – veteran owned, women owned etc.
- You don’t need to use all the information on the notes page – most of it is for your information – in case you are asked questions. The HUBZone Empowerment Contracting Program stimulates economic development and creates jobs in urban and rural communities by providing Federal contracting preferences to small businesses. These preferences go to small businesses that obtain HUBZone (Historically Underutilized Business Zone) certification in part by employing staff who live in a HUBZone. The company must also maintain a "principal office" in one of these specially designated areas. Federal Contract Benefits - There are four types of HUBZone contract opportunities: Competitive: Contracts can be set-aside for HUBZone competition when the contracting officer has a reasonable expectation that at least two qualified HUBZone small business concerns (SBCs) will submit offers and that the contract will be awarded at a fair market price. Sole-source: HUBZone contracts can be awarded if the contracting officer determines that: only one qualified HUBZone SBC is responsible to perform the contract, two or more qualified HUBZone SBCs are not likely to submit offers and the anticipated award price of the proposed contract, including options, will not exceed: --- $5 million for a requirement within the North American Industry Classification System (NAICS) code for manufacturing or --- $3 million for a requirement within all other NAICS codes Full and open competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be 10 percent higher than the offer of a non-small business. Subcontracting: All subcontracting plans for large business Federal contractors must include a HUBZone subcontracting goal. Can apply on online at www.sba.gov/hubzone
- You don’t need to use all the information on the notes page – most of it is for your information – in case you are asked questions. SDB certification strictly pertains to benefits in federal procurement. SBA certifies SDBs to make them eligible for special bidding benefits. Evaluation credits available to prime contractors boost subcontracting opportunities for SDBs. Under new federal procurement regulations, the SBA certifies SDBs for participation in federal procurements aimed at overcoming the effects of discrimination. SBA certifies small businesses that meet specific social, economic, ownership, and control eligibility criteria. Once certified, the firm is added to an on-line registry of SDB-certified firms maintained in PRO- Net . Certified firms remain on the list for three years. Contracting officers and large business prime contractors may search this on-line registry for potential suppliers. Benefits of SDB Certification Under the government’s reformed affirmative action rules, small disadvantaged business are eligible for price evaluation adjustments of up to 10 percent when bidding on federal contracts in certain industries. The program also provides evaluation credits for prime contractors who achieve SDB subcontracting targets. The program is intended to help federal agencies achieve the government-wide goal of 5 percent SDB participation in prime contracting. In addition, effective January 1, 1999, negotiated contracts where SDB participation is an evaluation factor can provide monetary incentives for prime contractors that meet specified targets for SDB subcontracting in the SIC major groups. US Department of Commerce "benchmarks" reflect the degree of SDB underrepresentation in each industry category. The price credit is not available for industry categories where benchmarks are not required. In addition, the price credit does not apply to 1) procurements that are below the simplified acquisition threshold of $100,000; 2) procurements that are set aside for small business; 3) procurements under the SBA 8(a) program. Eligibility Requirements Qualifications for the program are similar to those for the 8(a) Business Development Program. A small business must be at least 51% owned and controlled by a socially and economically disadvantaged individual or individuals. African Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans are presumed to quality. Other individuals can qualify if they show by a " preponderance of the evidence " that they are disadvantaged. All individuals must have a net worth of less than $750,000, excluding the equity of the business and primary residence. Successful applicants must also meet applicable size standards for small businesses in their industry. Applying for SDB Certification You can apply to the SDB Program by contacting any SBA district office . For more information or questions, call (202) 619-1850 or 1-(800) 558-0884.
- You don’t need to use all the information on the notes page – most of it is for your information – in case you are asked questions. By law, prime contractors to the federal government must post surety bonds on federal construction projects valued at $25,000 or more. Many state, county, city and private-sector projects require bonding as well. The U.S. Small Business Administration (SBA) can guarantee bonds for contracts up to $2 million, covering bid, performance and payment bonds for small and emerging contractors who cannot obtain surety bonds through regular commercial channels. SBA's guarantee gives sureties an incentive to provide bonding for eligible contractors, and thereby strengthens a contractor's ability to obtain bonding and greater access to contracting opportunities. A surety guarantee, an agreement between a surety and the SBA, provides that SBA will assume a predetermined percentage of loss in the event the contractor should breach the terms of the contract. Definition of a Surety Bond A surety bond is a three-party instrument between a surety, the contractor and the project owner. The agreement binds the contractor to comply with the terms and conditions of a contract. If the contractor is unable to successfully perform the contract, the surety assumes the contractor's responsibilities and ensures that the project is completed. Below are the four types of contract bonds that may be covered by an SBA guarantee: Types of contract bonds available: Bid-Bonds - which guarantees that the bidder on a contract will enter into the contract and furnish the required payment and performance bonds Payment-Bonds - Bond which guarantees payment from the contractor of money to persons who furnish labor, materials equipment and/or supplies for use in the performance of the contract. Performance-Bonds - Bond which guarantees that the contractor will perform the contract in accordance with its terms Ancillary-Bonds- Bonds which are incidental and essential to the performance of the contract . Fees are outlined in the most recent edition of 13 CFR 115…..based on a % of the project.
- Prime contractors use SUB-Net to post subcontracting opportunities. These may or may not be reserved for small business, and they may include either solicitations or other notices -- for example, notices of sources sought for teaming partners and subcontractors on future contracts. Small businesses can review this web site to identify opportunities in their areas of expertise. While the web site is designed primarily as a place for large businesses to post solicitations and notices, it is also used by Federal agencies, state and local Governments, non-profit organizations, colleges and universities, and even foreign Governments for the same purpose. The new web site has shifted the traditional marketing strategy from the shotgun approach to one that is more focused and sophisticated. Instead of marketing blindly to hundreds of prime contractors, with no certainty that any given company has a need for their product or service, small businesses can now use their limited resources to identify concrete, tangible opportunities and then bid on them. At the site you can view award results, or use the search engine to search for opportunities by SIC code, NAICS code, description, or solicitation number. There are also links to
- The Office of Technology’s mission is to strengthen and expand the competitiveness of the US small high technology research and development businesses in the federal marketplace. They do this through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The Federal Agencies with the top ten R & D budgets are required to set aside a portion of their budgets for these programs. The programs target the entrepreneurial sector because that is where most innovation and innovators thrive. However, the risk and expense of conducting serious R&D efforts are often beyond the means of many small businesses. By reserving a specific percentage of federal R&D funds for small business, SBIR protects the small business and enables it to compete on the same level as larger businesses. SBIR funds the critical startup and development stages and it encourages the commercialization of the technology, product, or service, which, in turn, stimulates the U.S. economy. New products can then be purchased by the federal agencies on the commercial market – instead of the more expensive development of proprietary products. Business can receive up to $850,000 in grant monies in the SBIR program and up to $650,000 in the STTR program. To learn more about the program visit the Office of Technology web site at www.sba.gov/sbir. Info. is also available in our Small Business Resource guide.
- SBIR funds the critical startup and development stages and it encourages the commercialization of the technology, product, or service, which, in turn, stimulates the U.S. economy. A Highly competitive program Phase l: 6 months and up to $100,000 to show technical merit/ feasibility of an idea or technology Phase ll: 2 years and up to $750,000 to develop project, usually to prototype. Only Phase l winners considered. Phase lll: Commercialize the technology in public and/or private sector. No SBIR funds available. Small business must find funding in the private sector or other non SBIR funds. Different Maxs: Each agency may have different maxs. So a smaller agency like DOE may only offer up to $50,00 in first phase and $500,000 in second phase. Solicitations: Agencies release solicitations at different times. DOD twice a year next solicitation released Oct. 1 closes in Jan. DOE only releases once a year, this year in November and NSF once a year next phase 1’s in March. Eligibility: SBIR For Profit American-owned Independently operated Max 500 employees Principal researched employed by small business
- STTR is similar to the SBIR program in that both programs seek to increase the participation of small businesses in Federal R&D and to increase private sector commercialization of technology developed through Federal R&D. The unique feature of the STTR program is that, for both Phase 1 and Phase 2 projects, at least 40% of the work must be performed by the small business and at least 30% of the work must be performed by a non-profit research institution. Such institutions include Federally-funded research and development centers, universities, non-profit hospitals and other non-profits. Phase l : 12 months and up to $100,000 to show project feasibility Phase ll : 2 years and up to $500,000 to develop project, usually to prototype. Only Phase l winners considered. Phase lll : Commercialize the innovation for public and/or private sector markets. Eligibility: STTR For Profit American-owned Independently operated Max 500 employees Principal researched need not be employed by small business
- Welcome to Tech- Net ! Tech-Net is an electronic gateway of technology information and resources for and about small high tech businesses. Allows searches for technology partnerships, licensing and investment opportunities. It is a search engine for researchers, scientists, state, federal and local government officials, a marketing tool for small firms and a potential "link" to investment opportunities for investors and other sources of capital. A Search Engine Tech-Net is an Internet-based database of information containing Small Business Innovation Research ( SBIR ) awards, Small Business Technology Transfer ( STTR ) awards, Advanced Technology Program ( ATP ) awards, and Manufacturing Extension Partners ( MEP ) centers. It is a free service for those seeking small business partners, small business contractors and subcontractors, leading edge technology research, research partners (small businesses, universities, federal labs and non-profit organizations), manufacturing centers and investment opportunities. SBA uses a single source client data base for both Pro-Net and Tech-Net. Accordingly, a small business need only register on one system to be included in both. Businesses profiled on the Tech-Net system can be searched by a variety of data elements such as SIC; key words; location; company name, ownership race and gender; technology code; contract award year, etc. A Marketing Tool Business profiles in the Tech-Net system include data from the SBA's SBIR/STTR database, the Department of Commerce's ATP database, and the MEP list of manufacturing centers, plus additional business and marketing information on individual firms. Businesses on the system will be responsible for updating their profiles and the SBA will maintain the accuracy of the awards information. Profiles are structured like executive business summaries, with specific data fields that are user-friendly and designed to meet the needs of researchers, contracting officers, investors and other potential users. Profiles provide small businesses an opportunity expand on their "technology market-niche" promoting goods and technical services produced by their business. Companies with "home-pages" can link their web site to their Tech-Net profile, creating a very powerful marketing tool. A Link to Procurement Opportunities As an electronic gateway, Tech-Net provides access and is linked to federal agency SBIR/STTR solicitations, ATP solicitations and other technology procurement opportunities. The system is also linked to technology sources of information, assistance and training. The Tech-Net project is a cooperative effort among SBA's Offices of Technology, Advocacy, the Chief Information Officer, the National Institute of Standards and Technology's Advanced Technology Program and the Manufacturing Extension Partnership Program
- SBICs Created in 1958 to fill the gap between the availability of venture capital and the needs of small businesses in start-up and growth situations. licensed and regulated by the SBA, are privately owned and managed investment firms that use their own capital, plus funds borrowed at favorable rates with an SBA guarantee, to make venture capital investments in small businesses. provide equity capital, long-term loans, debt-equity investments and management assistance to qualifying small businesses. Their incentive is the chance to share in the success of the small business as it grows and prospers. Go to SBA web site to find local SBICs. Individual SBIC’s list requirements there. PRINCIPAL ADVANTAGES TO THE SBIC Most SBICs are owned by relatively small groups of local investors. Many, however, are owned by commercial banks. Some SBICs are corporations with publicly traded stock. LOANS AND DEBT SECURITIES SBICs can make long-term loans to small business concerns in order to provide them with funds needed for their sound financing, growth, modernization, and expansion -independently, or in cooperation with other public or private lenders. EQUITY SECURITIES - By law, the SBIC must provide equity capital to small business concerns, and may do so by purchasing the small business concern's equity securities. The SBIC may not, however, become a general partner in any unincorporated small business concern, or otherwise become liable for the general obligations of an unincorporated concern.
- Works to reduce the burdens that federal policies impose on small firms and maximize the benefits small businesses receive from the government. Advocacy's mission, simply stated, is to encourage policies that support the development and growth of American small business. Statistics are done acquired through various research projects – info on small businesses is available at the Advocacy web site.
- Free year long course ( participants meet monthly) established to assist companies who have been operating successfully for at least one full year - prepare to enter the international trade area. Course Examples: International Market Research Finding Oversea Buyers Pricing & Quotations Legal & Technical Advice Credit Insurance Financing Currently only available in OC – New series starts in September 2002
- The SBA guaranty loan program is intended to assist in making loans that the bank believes will be good loans, and to a small businesses in which the bank has confidence, but for some reason does not quite meet the bank’s normal credit standards. Usually this is due to a lack of adequate collateral or capital, or because the business is a start-up.
- The SBA guaranty loan program is intended to assist in making loans that the bank believes will be good loans, and to a small businesses in which the bank has confidence, but for some reason does not quite meet the bank’s normal credit standards. Usually this is due to a lack of adequate collateral or capital, or because the business is a start-up.
- The SBA does not make direct loans - instead SBA provides a loan guarantee. SBA guarantee enables its lending partners to provide financing to small businesses when funding is otherwise unavailable on reasonable terms by guaranteeing major portions of loans made to small businesses. The Agency does not currently have funding for direct loans nor does it provide grants or low interest rate loans for business start-up or expansion. The eligibility requirements and credit criteria of the program are very broad in order to accommodate a wide range of financing needs. When a small business applies to a lending partner for a loan, the lender reviews the application and decides if it merits a loan on its own or if it requires additional support in the form of an SBA guaranty. SBA backing on the loan is then requested by the lender. In guaranteeing the loan, the SBA assures the lender that, in the event the borrower does not repay the loan, the government will reimburse the lending partner for a portion of its loss All SBA loans require involvement of a commercial lender. Interest rates on SBA 7(a) loans are negotiated between the borrower and banker. SBA has a maximum interest rate allowable on loans, based on maturity of the loan, with a higher interest rate on the smaller loans under $50,000. Prime plus 2-1/4% for maturates under 7 years. Prime plus 2-3/4% for maturates of 7 years or longer. Exception for smaller loans: (Up to $50,000) May charge 1% more on loans between $25,000 and $50,000; and, 2% more on loans under $25,000.
- SBA cannot finance “Non-Profit” businesses. We are trying to create jobs and generate tax revenue, and non-profit businesses do not pay taxes. Any business receiving a loan must be a small business. Also, we cannot make a loan when it is obvious that the loan could be made without government assistance, or to finance speculation or rental property. Eligibility ( ONLY IF ASKED)- average annual annual sales over a 3 year period. Manufacturing up to about 500 employees Wholesale - up to 100 employees Services - from 2.5 to 21.5 million Retaling - from 5 million to 21 million Construction - 13.5 to 17.5 million Agriculture - from 500, 000 to 9 million
- Lenders consider several factors – If you are weak in one area – sometime it can be made up by strengthening another area. Management ability –what is your experience in? Financial Health – Existing businesses most banks will analyze the cash flow of the last two years of the business as a way of predicting how the business will do in the future. They want to see that the business is generating enough cash to make the loan payment. For start-up businesses they will analyze the projections in the business plan and decide how credible the projections are – what are they based on? Collateral – While you won’t be turned down solely for lack of collateral – you will be expected to personally guarantee the loan and if you own a home you can expect to be asked to put it up as collateral. Credit – while you do not need perfect credit – you will need to demonstrate that you pay your contractial obligations. Capital Injections – How much do you have to contribute to the project or how much have you invested in the business. For start-ups you can expect to contribute approximately 30% of the total project cost.
- Many times the main benefit of an SBA loan is the extended repayment terms. We attempt to match repayment terms with the cash flow a business has available for repayment. Most banks will approve a longer maturity with an SBA guaranty than bank policy will allow on regular commercial loans. SBA loans are fully amortized this allows the business to borrow more because their payments are spread out for a longer period of time.
- SBA provides export information and development assistance to help small businesses take advantage of export markets, including trade counseling, training, legal assistance, publications and financing. Export Financing – Export Working Capital Program – provides short term working capital for a single transaction or multiple sales. Terms – for single transaction set to fit transaction – revolving line is usually for one year. The program encourages lenders to offer export working capital loans by guaranteeing repayment of up to $1 million or 90 percent of a loan amount, whichever is less. International Trade Loan - The fixed-asset portion of the loan guaranty cannot exceed one million ($1,000,000.00. SBA can guarantee up to $1. 25 million for a combination of fixed-asset (facilities and equipment) financing and Export Working Capital Program (EWCP) assistance. Export Express – Export Legal Assistance Network (ELAN) – free initial consutations with international trade attorneys from the Federal Bar Association to small businesses interested in starting export operations. SCORE/ SBDC – counseling , training and technical assistance from experience exporters or trade specialists. ETAP – Export Training Assistance Partnership – SBA partners with the Department of Commerce and Export- Import Bank, SCORE and SBDC’s to bring a free year long training course to assist existing businesses become export ready. In OC – new series starts in Sept. Trade Mission Online -TM OnLine is a database of U.S. small businesses that seek to export their products - also a search engine for foreign firms and U.S. businesses seeking a U.S. business partner or supplier, through such means as direct product sales, licensing or franchising agreements.
- The purpose of the SBA's Disaster Loan Program is to offer financial assistance to those who are trying to rebuild their homes and businesses in the aftermath of a disaster. In the wake of hurricanes, floods, earthquakes, wildfires, tornados and other physical disasters, the SBA plays a major role. SBA's disaster loans are the primary form of Federal assistance for nonfarm, private sector disaster losses. For this reason, the disaster loan program is the only form of SBA assistance not limited to small businesses. Disaster loans from SBA help homeowners, renters, businesses of all sizes and nonprofit organizations fund rebuilding. SBA's disaster loans are a critical source of economic stimulation in disaster ravaged communities, helping to spur employment and stabilize tax bases. Recently SBA had an economic injury loan programs for business owners inpacted by the loss of key employees called to active duty and for business owners impacted by the events of 9/11
- How SBA microloan program works – SBA loans money to non-profit organizations who lend it out to the small business community. For businesses less than 2 years old – business plan with 3 years projections needed. Loan funds can be used for normal business purposes such as working capital, equipment, and inventory purchases. Applications and additional information available through Valley Economic Development Corp. – www.micoloan.org or 800-304-1755
- CAPLines are the short-term working-capital loan programs for small businesses. There are 5 types. Maturity - negotiated up to 5 yrs depending on business and use. Guarantee - 80% loans to $100,000 75% over 100,000 max $750,000. Interest rates - negotiated up to 2.25% over the prime SEASONAL LINE: These are advances against anticipated inventory and accounts receivable help during peak seasons when businesses experience seasonal sales fluctuations. Can be revolving or non-revolving. CONTRACT LINE: Finances the direct labor and material cost associated with performing assignable contract(s). Can be revolving or non-revolving. BUILDERS LINE: If you are a small general contractor or builder constructing or renovating commercial or residential buildings, this can finance direct labor-and material costs. The building project serves as the collateral, and loans can be revolving or non-revolving. STANDARD ASSET-BASED LINE : This is an asset-based revolving line of credit for businesses unable to meet credit standards associated with long-term credit. It provides financing for cyclical growth, recurring and/or short-term needs. Repayment comes from converting short-term assets into cash, which is remitted to the lender. Businesses continually draw from this line of credit, based on existing assets, and repay as their cash cycle dictates. This line generally is used by businesses that provide credit to other businesses. Because these loans require continual servicing and monitoring of collateral, additional fees may be charged by the lender. typically used by businesses that provide credit to other businesses. SMALL ASSET-BASED LINE : This is an asset-based revolving line of credit of up to $200,000. It operates like a standard asset-based line except that some of the stricter servicing requirements are waived, providing the business can consistently show repayment ability from cash flow for the full amount.
- The 504 loan program is for purchasing fixed assets, such as land and buildings and equipment that is expected to last 10 to 20 years, or longer such as a five color printer. Short-term assets, such as cars, trucks, tables, chairs and other assets that are expected to wear out in less than 10 years cannot be financed with this program. 504 loans are process by Certified Development Companies (CDC). CDCs are approved by SBA to act as intermediaries for SBA to work with small businesses and banks to handle this loan program. Typically a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 % of the project cost, a loan secured with a junior lien from the CDC (backed by the SBA) and a contribution of at least 10% equity from the small business being helped. Interest Rates for SBA portion – Based on current market rate for 5 to 10 year treasury bonds. Penalty for early payoff within the first 10 years. Maximum SBA loan portion 1 million or $1.3 under certain circumstances. Minimum $50,000 Benefits: The borrower gets up to 90% financing with a long-term maturity, and saves money on interest due to the low fixed interest rate on the SBA portion. The banker gets to make a very safe loan, with a low loan to collateral value ratio, and also helps the bank’s customer to get a favorable fixed interest rate on a portion of the project .
- Export Working Capital (EWCP) Program - The program encourages lenders to offer export working capital loans by guaranteeing repayment of up to $1 million or 90 percent of a loan amount, whichever is less. A loan can support a single transaction or multiple sales on a revolving basis. Terms – for single transaction set to fit transaction – revolving line is usually for one year. Eligibility - - an applicant must be in business for a full year (not necessarily in exporting) at the time of application. SBA may waive this requirement if the applicant has sufficient export trade experience. Export management companies or export-trading companies my use this program, however, title must be taken in the goods being exported to be eligible. Other conditions apply. International Trade Loans - The fixed-asset portion of the loan guaranty cannot exceed one million ($1,000,000.00. SBA can guarantee up to $1. 25 million for a combination of fixed-asset (facilities and equipment) financing and Export Working Capital Program (EWCP) assistance. Eligibility - establish loan will significantly expand or develop an export market, is currently adversely affected by import competition, will upgrade equipment or facilities to improve competitive position, or must be able to provide a business plan that reasonably projects export sales sufficient to cover the loan. Loan Guaranty Percent - For the fixed asset and permanent working capital portion of the International Trade loan, the Agency can guaranty up to eighty-five (85%) percent of loans of $150,000 and less, and up to seventy-five (75%) percent of loans above $150,000 and up to $1,000,000. The Agency provides a 90% guaranty on the export working capital portion of the International Trade loan up to a maximum of $750,000.
- SBA Export Express combines the SBA’s small business lending assistance with its technical assistance programs to help small businesses that have traditionally had difficulty in obtaining adequate export financing SBA Export Express lenders use streamlined and expedited loan review and approval procedures to process SBA guaranteed loans up to $150,000. Interest rates negotiated between borrower and lender – maturities the same as 7(a). Because many small business exporters face unique problems and challenges, the SBA Export Express Program also includes technical assistance in the form of marketing, management and planning assistance. Technical assistance is provided by SBA’s U.S. Export Assistance Centers, in cooperation with SBA’s network of resource partners, including the Small Business Development Centers (SBDCs) and Service Corps of Retired Executives (SCORE). On approval of an SBA Export Express loan, a U.S. Export Assistance Center representative will contact the borrower to offer appropriate assistance. This assistance may include training offered through the SBA’s Export Trade Assistance Partnership, SBDC International Trade Center, SCORE, District Export Council, or Export Legal Assistance Network.
- SBA Export Express is a new pilot loan guaranty program for small business exporters that is currently available nationwide.
- The U.S. Department of Commerce's Census Bureau reports that the number of small business exporters was 65,900 in 1987 and 202,185 in 1997. This is a 300 percent increase in just 10 years! These are businesses that export merchandise goods or goods with services attached to them. These figures do not include businesses that solely export services. Many of these companies have financing needs that are too small to be profitably met by banks, even with other SBA programs -- the average size EWCP is over $350,000 and the average IT loans is $300,000. In addition, exports from small businesses in the service industry are growing thanks to technological innovations. These service companies could benefit greatly from financing that is available through SBA Export Express.
- Any lender that has been approved for SBAExpress can immediately begin participating in SBA Export Express -- there are no additional sign-up requirements. This means there are nearly 300 lenders nationally that can begin participating in SBA Export Express right now! Just like SBAExpress, lenders submit their SBA Export Express application materials to the PLP Processing Center in Sacramento. The PLP Processing Center provides the lender with a loan number within 36 hours (usually in just one day). On approval of an SBA Export Express loan, the PLP Processing Center will notify the USEAC nearest the business. The USEAC representative will then contact the borrower to offer appropriate assistance. This may include training offered through the Export Trade Assistance Partnership (ETAP); SBDC International Trade Center; SCORE; District Export Council; or Export Legal Assistance Network (ELAN). In addition to EWCP and International Trade Loans, SBA Export Express loans will count towards the district offices export loan goal.
- Any lender that has been approved for SBAExpress can immediately begin participating in SBA Export Express -- there are no additional sign-up requirements. This means there are nearly 300 lenders nationally that can begin participating in SBA Export Express right now! Just like SBAExpress, lenders submit their SBA Export Express application materials to the PLP Processing Center in Sacramento. The PLP Processing Center provides the lender with a loan number within 36 hours (usually in just one day). On approval of an SBA Export Express loan, the PLP Processing Center will notify the USEAC nearest the business. The USEAC representative will then contact the borrower to offer appropriate assistance. This may include training offered through the Export Trade Assistance Partnership (ETAP); SBDC International Trade Center; SCORE; District Export Council; or Export Legal Assistance Network (ELAN). In addition to EWCP and International Trade Loans, SBA Export Express loans will count towards the district offices export loan goal.
- Any lender that has been approved for SBAExpress can immediately begin participating in SBA Export Express -- there are no additional sign-up requirements. This means there are nearly 300 lenders nationally that can begin participating in SBA Export Express right now! Just like SBAExpress, lenders submit their SBA Export Express application materials to the PLP Processing Center in Sacramento. The PLP Processing Center provides the lender with a loan number within 36 hours (usually in just one day). On approval of an SBA Export Express loan, the PLP Processing Center will notify the USEAC nearest the business. The USEAC representative will then contact the borrower to offer appropriate assistance. This may include training offered through the Export Trade Assistance Partnership (ETAP); SBDC International Trade Center; SCORE; District Export Council; or Export Legal Assistance Network (ELAN). In addition to EWCP and International Trade Loans, SBA Export Express loans will count towards the district offices export loan goal.
- Any lender that has been approved for SBAExpress can immediately begin participating in SBA Export Express -- there are no additional sign-up requirements. This means there are nearly 300 lenders nationally that can begin participating in SBA Export Express right now! Just like SBAExpress, lenders submit their SBA Export Express application materials to the PLP Processing Center in Sacramento. The PLP Processing Center provides the lender with a loan number within 36 hours (usually in just one day). On approval of an SBA Export Express loan, the PLP Processing Center will notify the USEAC nearest the business. The USEAC representative will then contact the borrower to offer appropriate assistance. This may include training offered through the Export Trade Assistance Partnership (ETAP); SBDC International Trade Center; SCORE; District Export Council; or Export Legal Assistance Network (ELAN). In addition to EWCP and International Trade Loans, SBA Export Express loans will count towards the district offices export loan goal.
- Any lender that has been approved for SBAExpress can immediately begin participating in SBA Export Express -- there are no additional sign-up requirements. This means there are nearly 300 lenders nationally that can begin participating in SBA Export Express right now! Just like SBAExpress, lenders submit their SBA Export Express application materials to the PLP Processing Center in Sacramento. The PLP Processing Center provides the lender with a loan number within 36 hours (usually in just one day). On approval of an SBA Export Express loan, the PLP Processing Center will notify the USEAC nearest the business. The USEAC representative will then contact the borrower to offer appropriate assistance. This may include training offered through the Export Trade Assistance Partnership (ETAP); SBDC International Trade Center; SCORE; District Export Council; or Export Legal Assistance Network (ELAN). In addition to EWCP and International Trade Loans, SBA Export Express loans will count towards the district offices export loan goal.
- Any lender that has been approved for SBAExpress can immediately begin participating in SBA Export Express -- there are no additional sign-up requirements. This means there are nearly 300 lenders nationally that can begin participating in SBA Export Express right now! Just like SBAExpress, lenders submit their SBA Export Express application materials to the PLP Processing Center in Sacramento. The PLP Processing Center provides the lender with a loan number within 36 hours (usually in just one day). On approval of an SBA Export Express loan, the PLP Processing Center will notify the USEAC nearest the business. The USEAC representative will then contact the borrower to offer appropriate assistance. This may include training offered through the Export Trade Assistance Partnership (ETAP); SBDC International Trade Center; SCORE; District Export Council; or Export Legal Assistance Network (ELAN). In addition to EWCP and International Trade Loans, SBA Export Express loans will count towards the district offices export loan goal.
- Proceeds are to be used by small businesses to develop or expand their export markets. SBA Export Express proceeds may be used to finance: standby letters of credit That are used as bid or performance bonds; revolving lines of credit for export purposes; term loans; and other financing to enable small business concerns, including export trading companies and export management companies, to develop foreign markets. Proceeds may also be used for the acquisition, construction, renovation, modernization, improvement or expansion of productive facilities or equipment to be used in the United States in the production of goods or services involved in international trade. For example, a business may need financing in order to implement their international marketing plan. Expenses that may be funded by an SBA Export Express loan include the funds necessary to send company representatives overseas to attend a trade show or to have their product information translated that they are acceptable for use in a foreign market.
- Proceeds are to be used by small businesses to develop or expand their export markets. SBA Export Express proceeds may be used to finance: standby letters of credit that are used as bid or performance bonds; revolving lines of credit for export purposes; term loans; and other financing to enable small business concerns, including export trading companies and export management companies, to develop foreign markets. Proceeds may also be used for the acquisition, construction, renovation, modernization, improvement or expansion of productive facilities or equipment to be used in the United States in the production of goods or services involved in international trade. For example, a business may need financing in order to implement their international marketing plan. Expenses that may be funded by an SBA Export Express loan include the funds necessary to send company representatives overseas to attend a trade show or to have their product information translated that they are acceptable for use in a foreign market.
- To be eligible for this pilot loan guaranty program, an applicant must demonstrate that loan proceeds will enable their company to enter a new export market or expand an existing export market. To fulfill this requirement, a business plan must be submitted to the lender with information provided to establish a reasonable likelihood of expanded export sales. In addition, applicants must have been in operation, though not necessarily in exporting, for at least 12 months.
- To be eligible for this pilot loan guaranty program, an applicant must demonstrate that loan proceeds will enable their company to enter a new export market or expand an existing export market. To fulfill this requirement, a business plan must be submitted to the lender with information provided to establish a reasonable likelihood of expanded export sales. In addition, applicants must have been in operation, though not necessarily in exporting, for at least 12 months.
- The U.S. Department of Commerce's Census Bureau reports that the number of small business exporters was 65,900 in 1987 and 202,185 in 1997. This is a 300 percent increase in just 10 years! These are businesses that export merchandise goods or goods with services attached to them. These figures do not include businesses that solely export services. Many of these companies have financing needs that are too small to be profitably met by banks, even with other SBA programs -- the average size EWCP is over $350,000 and the average IT loans is $300,000. In addition, exports from small businesses in the service industry are growing thanks to technological innovations. These service companies could benefit greatly from financing that is available through SBA Export Express.
- In conclusion, SBA wishes to help people get started in business, and help those already in business to grow and prosper. We have a number of ways in which we can be of assistance. The SADO has a strong desire and commitment to serve the small business community in the three counties we serve, and to cooperate with the banks in our District to the fullest extent possible in meeting the needs of small business. We wish to make a difference in the economic development of our areas and we hope that you will call on us whenever we can be of assistance.