SBA Resources: 101 - Terry Case, Lender Relations Specialist, U.S. Small Business Administration

1. SBA 101
Terry J. Case
Lender Relations Specialist
Iowa District Office

2. America’s Small Business Resource
SBA Success Stories
Apple Intel
Nike Staples
Federal Express Hewlett-Packard
Ben & Jerry’s Jenny Craig
Callaway Golf Auntie Anne’s
Outback Steakhouse Radio One
Constant Contact Under Armour
Winnebago Black Enterprise Magazine
Cold Stone Creamery Columbia Sportswear

3. America’s Small Business Resource
Capital
Counseling
Contracting
Advocacy
Disaster
Innovation

4. America’s Small Business Resource
Capital
• Government Guaranteed Loans
• Two Main Programs - 7(a) & 504
• NO GRANTS! NO GRANTS! NO GRANTS!

5. America’s Small Business Resource
Loan Programs
• 504 loans
• 7 (a) loans
• - 7(a)
- SBA Express
- Community Advantage
- Export Working Capital/Export Express
- Microloans

6. America’s Small Business Resource
Capital
7(a) Guaranteed Loan Program
•Helps lender make loans they might not otherwise make
•Made by the lender and backed by SBA
•Initial loan decision rests with the lender - Based
primarily on character, credit and repayment ability
•Up to $5 million, wide variety of business purposes

7. America’s Small Business Resource
Capital
7a Program Basics
•Loans up to $5 million (3.75 Million SBA exposure)
•85% percent guaranty on loans up to $150,000
•75% percent guaranty on loans over $150,000
•May be used for a wide variety of business purposes

8. America’s Small Business Resource
SBA loan programs
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 institution for
portion of its loss. By providing this guaranty, the SBA is able
to help tens of thousands of small business every years get
financing they might not otherwise obtain.
The SBA does NOT offer grants to start, purchase or expand a
small business.

9. America’s Small Business Resource
Use of SBA loan Proceeds
• Start a business
• Buy a business
• Expand or renovate facilities
• Acquire machinery, equip, furniture, fixtures and
leasehold improvements.
• Finance receivables and augment working capital
• Finance seasonal lines of credit
• Construct buildings

10. America’s Small Business Resource
Capital
504 Basics
•Long-term, fixed rate subordinate mortgage financing for
acquisition and/or renovation of capital assets and including land
buildings and equipment.
•Uses a Certified Development Company (CDC) a non-profit
certified and regulated by the SBA to package
process, close and service 504 loans.

11. America’s Small Business Resource
Capital
504 Structures
•Typical 50-40-10 (maximum)
•New Business 50-35-15
•Special Purpose Building 50-35-15
•New Business and Special Purpose building 50-30-20
•New Business includes not only new business but changes of
ownership as well

12. America’s Small Business Resource
Capital
504 Advantages
•50% loan to value on first mortgage
•Customer preserves w/c for growth
•Federal Government is subordinate lender
•More competitive financing package
•Fixed interest rate on second mortgage
•Long term financing
•May have lower down payment requirement
•Collateral normally limited to project assets
•Existing collateral still available for w/c loans

13. America’s Small Business Resource
Capital
Microloan Program
•Loan comes direct from SBA via an SBA Microlender
•Limited to $50,000 or less
•Limited to working capital and fixed-assets
Iowa Microloan – www.iowamicroloan.org
or (515) 212-0182

14. America’s Small Business Resource
Counseling
(One-on-one Counseling/Training/Technical Assistance)
• Small Business Development Centers
• SCORE
• Women’s Business Center
• Veteran’s Business Outreach Center
• US Export Assistance Center

15. America’s Small Business Resource
America’s SBDC – Iowa
• Statewide network offering free, confidential,
customized, professional business advice
• New and existing small businesses
• Low-cost workshops
• Business Planning, Cash Flow Projections, Business
Financials, Management and Technical Assistance

16. America’s Small Business Resource
SCORE – Counselors to America’s Small Businesses
• Free, on-one-one business counseling and advice
• Eight chapters throughout the state - volunteers with
real-world experience
• New and existing small businesses
• Pre-business planning
• Low-cost “Simple Steps” workshops

17. America’s Small Business Resource
Women’s Business Center
• Over 100 centers nationwide
• Business training, counseling, coaching and
mentoring
• Geared towards women, but will assist anyone

18. America’s Small Business Resource
Contracting
• 8(a) certified
• HUB Zone certified
• Women-owned
• Service Disabled Veteran
• Surety Bonds

19. America’s Small Business Resource
SBA Procurement Assistance
The US government is the largest single purchaser of good and services in the world,
buying everything from armored tanks to paper clips. Every year the federal
government awards more that 500 billion in contracts and a significant share of
those contracts are specifically allotted to small businesses. SBA’s roll is to make
sure small business get their fair share of government contracts and to assist
them in pursuing other contracts as well as state/local/federal/corporate
The SBA features outreach programs, matchmaking events and online training
opportunities and helps agencies identify opportunities; and helps agencies
identify opportunities for small business.

20. America’s Small Business Resource
Federal prime Contraction Small Business Goals
• Small Business 23%
• Small Disadvantaged Business (8(a)) 5%
• Woman owned Small Business 5%
• HUB Zone Small Business 3%
• Service-Disabled Veteran-Owned Small Business 3%

21. 21
Procurement Technical Assistance Center
(PTAC)
http://www.ciras.iastate.edu/procurement/

22. America’s Small Business Resource
Innovation
SBA Office of Advocacy
Small Business Innovation Research (SBIR)
Small Business Investment Corporation (SBIC)
National Ombudsman’s Office

23. America’s Small Business Resource
Office of national ombudsman
• Assist small business when experience unfair
or excessive enforcement actions
• Provides a means for small business to
comment on federal agencies enforcement
actions.

24. America’s Small Business Resource
SBA Disaster Program
• Disaster declaration by President of US or SBA
Administrator
• Low interest, long-term loans
– Physical Disaster Business Loans
– Economic Injury Disaster Loans
– Loans for Homes & Personal Property

25. America’s Small Business Resource
SBA Disaster Assistance Program
SBA provides low interest disaster loans to homeowners,
renters, businesses of all sizes and private, nonprofit
organizations to repair or replace real estate, personal
property, machinery & equipment, inventory and business
assets that have been damaged or destroyed in a declared
disaster
• Physical Disaster loans (Home and Business)
• Economic injury Disaster Loans
SBA also offers Disaster preparedness Planning Assistance

26. America’s Small Business Resource
QUESTIONS?
Iowa District Office
Des Moines – (515) 284-4422
Cedar Rapids – (319) 362-6405
www.sba.gov/ia