U.S. Small Business Administration SBA Programs USF-SBDC Small Business Conference May 01, 2013...

U.S. Small Business Administration

SBA Programs

USF-SBDC Small Business Conference

May 01, 2013

Robert ChavarriaSenior Area ManagerSouth Florida District

Helping you start, grow and succeed.South Florida District

SBA Mission Statement

Maintain and strengthen the nation’s economy by aiding, counseling, assisting

and protecting the interests of small businesses and by helping families and

businesses recover from national disasters.

SBA National Websitewww.sba.gov

SBA Programs And Services

•Business Training and Counseling

•Information to Start and Run your Business

•Financial Assistance

• Federal government Contracting Assistance

• Disaster Assistance•

SBA 3 C’s of Programs

•Let’s summarize current SBA assistance into the 3 C’s:oCounselingoCapitaloContracting

•Now let’s add oD for Disaster Assistance andoE for Export Assistance

Business Training and Counseling

•Small Business Development Centers

•Procurement Technical Assistance Centers

•SCORE

•Women Business Centers

• Veteran’s Business Outreach Centers

• SBA Website – Training and Counseling

• Other Local Partners

SBA Loan Programs• 7(a) Guaranteed Loan Programs

– Basic 7(a)– CAPLines (Lines of Credit)– Export Working Capital– International Trade– Export Express– Express– Small Rural Advantage– Small Business Advantage– Community Advantage– Patriot Express– Dealer Floor Plan Loan Program

• 504 Economic Development Loans• Non 7(a)Micro loans

Maximum Loan Amounts 7(a) Basic Loan $ 5,000,000CAPLines $ 5,000,000SBA Express $ 350,000Small Loan Advantage $ 250,000Community Advantage $ 250,000Patriot Express $ 500,000Export Working Capital $ 5,000,000International Trade $ 5,000,000Export Express $ 500,000Small Rural/Lender Advantage $ 350,00504 - Facilities Loans Up to $5,000,000 –

SBA PortionMicroloans $ 50,000

Lenders will Look At 5 C’s of Credit

• Credit - Beacon Score/FICO 650+ • Character – How have you paid in the past?• Capacity – Will you be able to repay the loan?• Collateral – Properties, cash.• Experience – More experience means better

credibility to the business.• Conditions (Industry Risk)• Capital (Includes Start Up Investment)

Loan Requirements

Credit

Investment

Collateral

Ability to Pay

What SBA Looks For

• Good Character• Management Expertise and Commitment• Feasible Business Plan• Adequate Equity or Investment

(25% to 30% injection for new business)• Sufficient Collateral• Ability to Repay the Loan from Earnings

What The Lender Looks For

• Overall risk of the loan• Ability to repay the loan from earnings• Do financials accurate reflect the business

operations• Do financials meet business ratio

evaluation• Accuracy of application

Business Plan

• The business plan is perhaps one of the most important documents you can have for your small business; it is a roadmap for your business venture; one which can assist you greatly.

• If you don’t know where you are going, and you don’t have a road map, any road will get you there...

Eligible Uses of an SBA Loan

Any Good Business Purpose

• Construction• Land & Building• Line of Credit• Leasehold Improvements• Machinery & Equipment• Expansions & Renovations• Inventory & Working Capital• Refinancing Business Debt• Purchasing of Existing Small

Business

Ineligible Uses of Loan Proceeds

• Speculation• Partial Change of Ownership• Payment to Principals• Delinquent Payroll/Sales

Taxes

SBA Loan

Ineligible Businesses

• Gambling• Real Estate Investment• Speculation• Lending Activities & life insurance companies• Businesses selling through a pyramid plan• Illegal Businesses• Non-Profit Organizations• Businesses providing prurient sexual material• Businesses which restrict patronage• Businesses owned by individual(s) on probation,

parole and with pending criminal charges

Benefits of 7(a) Loans

• REDUCES LENDER’S RISK of LOSS

• Broadens Bank’s Lending Activities:Start-Ups High Risk BusinessesLonger Terms Collateral Shortfalls

• Allows banks to increase its lending limits to borrowers.

• Community Reinvestment Act (CRA)

• Increased Profitability to Banks Selling loans on the Secondary Market.

Other Types of Financial Assistance

• DISASTER LOANS – For Home, Business, Economic Injury (EIDL), and for Deploying Reservists (MREID)

• SURETY BONDS – Bid, performance, payment, and ancillary

• Small Business Investment Companies (SBIC)

• SBIR – Small Business Innovation Research Program

• STTR – Small Business Technology Transfer Program

District vs Tampa Bay Lending

• South Florida District o 2012 1,638 Loans for $783,532,900o 2013 664 loans YTD for $338,084,300 On pace to exceed $800 million

• Tampa Bay Area (Nine County Area)o 2012 484 Loans for $247,608,700 (30% of loans; 31% of

Dollarso 2013 221 Loans YTD for $123,251,900 (33% of District; 36 of Dollars)

On pace to exceed $295 Million for this FY; a 19% increase

over 2012

• Hillsborough County o 2012 162 Loans for $69,058,500 (33% of Tampa Bay Area;

28% of Tampa Bay Area Dollars)o 2013 78 Loans YTD for $44,691,600 (35% of Tampa Bay

loans; 36%of Tampa Bay Dollars)

On pace to exceed $107 Million, a 54% increase over 2012

National Export Initiative

• South Florida District Export Loan Volume

• 2010 63 Loans

• 2011 67 Loans

• 2012 79 Loans

Note: Goal is to double exports by the end of 2014. Assistance through:

Resource Partner AssistanceUSEAC’sDistrict International Trade OfficersExport Outreach Team formations

SBA Export Loan Programs

• Export Express• Export Working Capital Program• International Trade Loan

• Contact Charles Long • (813) 228 – 2404 ext. 27• Charles.Long@sba.gov

STEP Grant

A partnership with the U.S. Small Business Administration, Enterprise Florida, Inc., the U.S. Commercial Services, and the SBDC Network

Grants are offered to assist qualified business in Florida who are “new to export” to indentify growth strategies through the development of customized Export Marketing Plans.

Contact Maria Yepes – USF-SBDC(813) 905-5800

• Formal SBA Certification Programs8(a) Business Development HUBZone Empowerment Contracting

Woman-owned Small Business (WOSB)

Self-CertificationsSmall Business – NAICS CodesVeteran-owned Small Business

(VOSB)Service Disabled Veteran-owned

Small Business (SDVOSB)

VA Verification Program

Federal Contract Certifications

South Florida District Contracting

• South Florida District Contracting Offers

• 2010 181 Offers for $161,283,476

• 2011 159 Offers for $168,127,893

• 2012 145 Offers for $390,735,554

Note: Offers are dropping, however the Dollar amounts are rising

• Nature of contracts: Contracts are awarded by procuring agencies to SBA as the prime contractor. SBA subcontracts to the named 8(a) firm. Special contract clauses delegate administration responsibility to the procuring agency.

• Competitive threshold: When the estimated value (including options) exceeds $4 million for services and construction and $6.5 million for manufacturing, requirement will be competed among 8(a) firms.

8(a) Contract Process

• HUBZone Certification Program

Small businesses located in areas identified as historically underutilized business zones, and with 35% of employees located in a HUBZone, are eligible to receive competitive and ‘sole source’ awards.

HUBZone Program

Women Owned Small Business Federal Contract Certification Program

– Provides Equal Access to Federal Contracting Opportunities

– For Women Owned Small Business (WOSB)– Foe Economically Disadvantaged Women Owned

Small Businesses (EDWOSB)– Allows Contracting Officers to “Set Aside”

specific contracts for WOSB’s and EDWOSB’s– Effective February 4, 2011

– http://www.sba.gov/sites/default/files/Size_Standards_Table.pdf

For manual applications, contact your local SBA Office where to obtain a paper application. The

South Florida District telephone number is (305) 536-5521

If you want to apply using the electronic system, send an e-mail to BDMIS@sba.govfor further

guidance and assistance.

Application Process

Seek Additional Assistance

Procurement Technical Assistance Center (PTACs) www.dla.mil/db/procurem.htm

Small Business Specialists www.acq.osd.mil/sadbu/doing_business/index.htm

Procurement Center Representatives (PCRs) www.sba.gov/gc/contacts.html

Commercial Marketing Representatives (CMRs) www.sba.gov/gc/contacts.html

SBA Programs for Veterans • Entrepreneurship Boot camp for Veterans with Disabilitieshttp://apps.whitman.syr.edu/ebv/

• Entrepreneurship Boot Camp for Families of Veterans with Disabilities

http://apps.whitman.syr.edu/ebv/programs/families/

• Operation Endure and Grow – For National Guard and Reservistshttp://apps.whitman.syr.edu/endureandgrow/

• VWISE – For Women Veteranshttp://apps.whitman.syr.edu/vwise/

Boots to Business – For Transitioning Veterans in TAP DOD Installations

http://www.sba.gov/bootstobusiness

Other SBA Initiatives • Affordable Care Acthttp://www.sba.gov/healthcare

• Encore Entrepreneurshttp://www.sba.gov/encore

• National Export Initiativehttp://www.sba.gov/about-offices-content/1/2889

http://www.export.gov

Affordable Care ActInternal Revenue Service: www.irs.gov

Dept. of Health and Human Services: www.healthcare.gov

Dept. of Labor: www.dol.gov/ebsa/healthreform

U.S. Small Business Administration: ww.sba.gov/healthcare

www.sba.gov 31

U.S. Small Business Administration

SBA Financing and Other Programs

May 01, 2013

Presenter

Robert ChavarriaSenior Area ManagerSouth Florida District

(813) 228-2100 ext 24robert.chavarria@sba.gov

Charlotte, DeSoto, Hardee, Hillsborough, Manatee, Pasco, Pinellas, Polk, Sarasota