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    NC SB Resource Guide NC SB Resource Guide Document Transcript

    • BUSINESS SMALL NORTH CAROLINA RESOURCE Building on SBA’s Record Year page 28 PAGE Counseling 8 PAGE Capital 15 PAGE Contracting 29www.SBA.gov • connect with us @ facebook.com/SBAgov twitter.com/sbagov youtube.com/sba
    • contents SMALL BUSINESS P R ublishing eni Publishers of Small Business Resource Advertising Phone: 863-294-2812 • 800-274-2812 Fax: 863-299-3909 • www.sbaguides.com Staff President/CEO Joe Jensen jjensen@reni.net 2012 NORTH CAROLINA FEATURES English Small Business Resource Advertising Nicky Harvey nharvey@reni.net Martha Theriault mtheriault@reni.net 3 Introduction 28 Building on SBA’s Kenna Rogers krogers@reni.net 3 Administrator’s Letter Record Year Production 4 Director’s Message Diane Traylor dtraylor@reni.net 29 Contracting 8 Counseling Applying for Government Contracts. SBA’s Marketing Office: Getting help to start up, market and The Small Business Resource Guide is published 29 How Government Contracting under the direction of SBA’s Office of Marketing and manage your business. Works Customer Service. 8 SBA Resource Partners 30 SBA Contracting Programs 11 SBA’s Online Tools and Training 32 Getting Started in Contracting Director of Marketing 11 Reaching Underserved Paula Communities 33 Disaster Panissidi paula.panissidi@sba.gov 13 Are You Right for Small Knowing the types of assistance Editorial Content Business Ownership? available for recovery. marketinghq@sba.gov 14 Writing a Business Plan 34 Advocacy and Ombudsman Graphic Design 15 Capital  Watching out for small business interests. Gary Shellehamer gary.shellehamer@sba.gov Financing options to start or grow your business. SBA’s participation in this publication is not an 15  SBA Business Loans 35 Additional Resources endorsement of the views, opinions, products or services of the contractor or any advertiser or other 16  What to Take to the Lender Taking care of start up logistics. participant appearing herein. All SBA programs 22 Small Business Investment 38 Business Organization: and services are extended to the public on a Company Program Choosing your Structure nondiscriminatory basis. 23 Small Business Innovation Research Program 23 Small Business Technology 39 Other Assistance Printed in the United States of America While every reasonable effort has been made Transfer Program 24 Surety Bond Guarantee 43 Lender Listing to ensure that the information contained herein was accurate as of the date of publication, the Program information is subject to change without notice. 25  SBA Loan Program Chart Neither the contractor, the federal government, or agents thereof shall be held liable for any damages arising from the use of or reliance on the information contained in this publication. SBA Publication # MCS-0018 “Everything you need to know This publication is provided under SBA Contract # SBAHQ11C0005. about setting up, marketing and managing the revenue of your business. ”2 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • The U.S. Small Business Administration F R O M T HE ADM I NI STRATOR 2011 was a record year for As our economy continues to strengthen in the SBA. We helped over 2012, the Obama Administration is focused 60,000 small businesses on making sure that entrepreneurs and small secure over $30 billion in business owners have the tools they need lending through our flagship to grow and create jobs. After all, half of 7(a) and 504 programs – an working Americans either own or work for a all-time record. We also small business, and two of every three new worked with private-sector jobs are created by small businesses. partners to drive a recordamount of capital ($2.8 billion) into the Finally, check out our online tools. Forhands of over 1,000 high-growth businesses example, at www.sba.gov/direct you canthrough Small Business Investment type in your zip code and a few details aboutCompanies. your business, and you’ll immediately get connected to SBA resources in your localAs we entered 2012, the President signed area.a six-year extension of the Small BusinessInnovation Research program which America’s small businesses are gearing upsupports small R&D companies that drive to lead our nation’s economic recovery andinnovation and game-changing technologies create the jobs we need now. Please feel freeto keep America on the cutting edge. We to contact your local SBA office if you havealso continue to streamline the paperwork any questions. We stand ready to help inon SBA loans in order to help more lending whatever way we can.partners and their small-business customers. Sincerely,You can check out all of these programs inthis guide. Also, be sure to take a look at allof the SBA’s 2011 accomplishments in thelast few pages. Karen G. Mills Administrator Small Business Administration About the SBA www.sba.gov Your Small Business Resource Every year, the U.S. Small Business Administration and its nationwide • Contracting network of partners help millions of potential and current small • Disaster Assistance business owners start, grow and succeed. • Advocacy and the Ombudsman Resources and programs targeting small businesses provide an Visit SBA online at www.sba.gov for 24/7 access to small business advantage necessary to help small businesses compete effectively in news, information and training for entrepreneurs. the marketplace and strengthen the overall U.S. economy. All SBA programs and services are provided on a nondiscriminatory SBA offers help in the following areas: basis. • Counseling • CapitalVisit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 3
    • Message From The District Director Rules For Success SUCCESS STORY Mind Your Business, Inc. (MYB) Karen Caruso Owner/CEO Like today’s small businesses, large corporate success stories started with only an entrepreneur and a dream. TKaren Caruso, owner and CEO of Mind YourBusiness, Inc. (MYB) in Hendersonville, NChas been named the 2011 North Carolina he North Carolina Small SBA’s Government ContractingSmall Business Person of the Year. Karen’s Business Resource Guide Business Development Programentrepreneurial spirit was ignited in 1995 while is designed help you with creates an opportunity for smallwatching an Oprah Winfrey show with herdaughter on abusive child care providers. She your business development businesses owned by socially anddecided at that moment what her future would needs by reaching our economically disadvantaged individualslook like. partners and the SBA team. Whether it to grow through the education of theKaren’s early career was in security, knowing is taking the first step to start a business procurement process. SBA also plays ahow to conduct background checks. Seeing a gap or expanding to the next level, the Small major role in the government’s disasterin the market, she focused on applicant screening Business and Technology Development relief efforts by making low-interestservices to the childcare industry. In 1996, Mind Centers (SBTDC), Women’s Business recovery loans to both homeowners andYour Business, Inc. (MYB) was launched in thebasement of her New Jersey home with two Centers (WBC) and SCORE, both businesses.employees and $2,500. partially funded by the SBA, provide free counseling and technical assistance. Also, Today, small businesses are moreIn a field predominantly led by men and largecorporations, MYB faced challenges entering the North Carolina Community College important than ever. Facingthe marketplace. To combat these obstacles, system has a number of Small Business unprecedented economic challenges,she turned to SBA sponsored mentors. She has Centers that provide training and one-on- entrepreneurs with a creative, resilient,taken classes and received counseling through one counseling with your business. and innovative spirit, are expected toSCORE and the North Carolina Small Business &Technology Center (SBTDC). lead North Carolina’s vital recovery. As the nation’s largest single financial Accessing these resources on theMYB now employs 14 people and owns and backer of small businesses, SBA following pages can help you make theoperates a 3,000 square foot facility in themountains of Western North Carolina. MYB guaranteed loans are made by SBA right connections to be successful. Inposted record profits in 2009 and in 2010. lending specialists in our North Carolina addition, visit our website www.sba.gov/ banks, certified development companies nc or call to 1-800-U-ASK-SBA (1-800-Annice Brown and Clark Fields at the SBTDC have and lenders located throughout the 827-5722).worked with Karen to explore innovative waysto grow. Two recent examples include adding nation. To help prepare for a mutuallydrug testing to their services and creating two beneficial banking experience, SBTDC, Sincerely,proprietary software programs to help clients with WBC and SCORE partners can evaluatevisitor and fleet management screening. Withresearch and development help from Western your financing options, review a proposedCarolina University, they brought these products business acquisition or a help with a fixedto market, creating new customer opportunities. In asset purchase.November 2010, MYB was approved for a $25,000SBA Express loan, under the Small Business Jobs Lynn DouthettAct, through First Citizens’ Bank to market the In addition to guaranteeing loans,visitor management software. learn how government contracting District Director of may add value to your business. SBA’s North Carolina District Office Facing challenges in her local community hasled to Karen’s recognition as a leader for theadvancement of women by the Hendersonvilleand Asheville Chambers of Commerce. Karen’ssupports organizations such as United Way,The Arby’s Foundation for the Boys and GirlsClubs, and Big Brothers and Big Sisters of SouthCarolina through donations, volunteer work, andsponsorships.4 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • The SBA helps business owners grow and expand Doing Business in North Carolina their businesses every day.THE NORTH CAROLINA DISTRICT OFFICE Free counseling, advice and informationThe North Carolina District Office is on starting, better operating or expandingresponsible for the delivery of SBA’s a small business through SCORE, Small We Welcome Yourmany programs and services. The District Business & Technology Development QuestionsDirector is Lynn Douthett. The District Centers (SBTDC) and Women’s BusinessOffice is located at 6302 Fairview Road, Centers (WBC). They also conduct For extra copies of this publication orSuite 300, Charlotte, NC. Office hours training events throughout the district - questions please contact:are from 8:00 AM until 4:30 PM, Monday some require a nominal registration fee.through Friday. North Carolina District Office Assistance to businesses owned and 6302 Fairview Road, Suite 300Last fiscal year, ending September 30, controlled by socially and economically Charlotte, NC 282102011, North Carolina District Office disadvantaged individuals through theapproved 1,244 SBA loans for more than Business Development Program. Tel: 704-344-6563 Fax: 704-344-6769$479 million available to small businesses. SBA Answer Desk: 800-827-5722Our resource partners counseled and/ A Women’s Business Ownershipor trained over 45,309 entrepreneurs. Representative is available to assist Website: www.sba.gov/ncThese accomplishments have had a major women business owners. Please contactimpact on the local economy and in April Gonzalez at 704-344-6811 or e-mail:creating jobs. april.gonzalez@sba.gov. A Veterans Affairs Representative isCONTACTING THE NORTH CAROLINA available to assist veterans. Please contactDISTRICT OFFICE April Gonzalez at 704-344-6811 or e-mail:For program and service information, april.gonzalez@sba.gov.please contact the Marketing Divisionat 704-344-6563. For information on SBA has additional field offices in thefinancing, contact the Financing Division following areas:at 704-344-6810. Mike Arriola, Asheville, NCSERVICES AVAILABLE 828-225-1844Financial assistance for new or existing Ivan Hankins, Cary, NCbusinesses through guaranteed loans 919-335-1004made by area bank and non-bank Don Spry, Wilmington, NClenders. 910-815-3188Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 5
    • The U.S. Small Business Administration MESSAGES Message From The Message From The Executive Director North Carolina State of Small Business Director and Technology NC SCORE District #460 Development Center (SBTDC) S CORE is proud to be part of the North Carolina SBA Resource Guide. This guide contains many resources that can be of assistance to new entrepreneurs and existing small business owners. SCORE is a nonprofit association dedicated to the formation, growth and continuing T success of small businesses nationwide. SCORE volunteers are he SBTDC, a business advisory service of The working and retired executives and business owners who donate University of North Carolina System, is now in its their time and expertise to provide free and confidential business 28th year as a leading resource partner of the U.S. counseling and workshops. Small Business Administration in North Carolina. SBTDC staff provides in-depth management SCORE is a resource partner with the U.S. Small Business counseling, educational programs, technical assistance Administration and has 15 Chapters with 445 experienced services, and other resources to meet the needs of existing counselors located throughout North Carolina. SCORE chapters businesses and new business start-ups. Among these is help are proud to have provided counseling to 7451 business clients with securing financing - particularly SBA guaranteed loans and hosted local workshops with 9323 attendees in Fiscal Year and longer-term SBA 504 loans for buildings and other major 2010-11. fixed assets. SBTDC services are provided through 18 offices across the state, and are focused on making North Carolina’s SCORE offers counseling and assistance to small businesses that businesses more competitive. are starting, growing or facing challenges. Please feel free to contact the SCORE chapter nearest you. A list of our chapters The North Carolina SBA Resource Guide is a great tool for can be found in this guide. Visit our website at www.score.org for small business owners and those planning to start a business. more information about available SCORE services available from It provides both extensive business support materials and our National organization. E-Mail counseling is available thru our contact information for resources such as the SBTDC that National web site with experts from many of our chapters. can help businesses achieve greater success. As “Counselors to America’s Small Business” SCORE can provide If you are seeking assistance to improve your business both practical and technical guidance wherever and whenever it operations, or looking for help in successfully launching a is needed from counselors with years of business experience. Good new business, you can contact the SBTDC toll free at 800- luck in your business endeavors and call your nearest SCORE office 258-0862, or visit our website at www.sbtdc.org for more as your first step in evaluating your business decisions. information about our services. Sincerely, Sincerely yours, Jerry Lustig Scott R. Daugherty North Carolina SCORE District #460 North Carolina State Director Executive Director of 919-460-2501 • jerry1109@aol.com Small Business and Technology Development Center (SBTDC) SCORE National website: www.score.org North Carolina Commissioner of Small Business 800-634-0245 or 703-487-36126 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 7
    • COUNSELING Getting Help to Start Up, Market and Manage Your Business entrepreneurs who are just getting started or in need of a seasoned business professional as a soundingCOUNSELING board for their existing business. As members of your community, SCORE mentors understand local business licensing rules, economic conditions and important networks. SCORE can help you as they have done for more than 9 million clients by: • Matching your specific needs with a business mentor • Traveling to your place of business for an on-site evaluation • Teaming with several SCORE mentors to provide you with tailored assistance in a number of business areas Across the country, SCORE offers nearly 7,000 local business training workshops and seminars ranging in topic and scope depending on the needs of the local business community E such as offering an introduction to very year, the U.S. Small finding opportunities to sell your goods the fundamentals of a business plan, Business Administration or services to the government, and managing cash flow and marketing your and its nationwide network recovering from disaster. To find your business. For established businesses, of resource partners help local district office or SBA resource SCORE offers more in-depth training millions of potential and partner, visit www.sba.gov/sba-direct. in areas like customer service, hiring existing small business owners start, practices and home-based businesses. grow and succeed. Whether your target market is global SCORE For around-the-clock business advice SCORE is a national network of and information on the latest trends go or just your neighborhood, the SBA and to the SCORE website (www.score.org). its resource partners can help at every over 14,000 entrepreneurs, business leaders and executives who volunteer as More than 1,500 online mentors with stage of turning your entrepreneurial over 800 business skill sets answer your mentors to America’s small businesses. dream into a thriving business. questions about starting and running a SCORE leverages decades of experience If you’re just starting out, the SBA from seasoned business professionals business. In fiscal year 2011, SCORE and its resources can help you with to help small businesses start, grow mentors served 400,000 entrepreneurs. loans and business management skills. companies and create jobs in local For information on SCORE and to get If you’re already in business, you can communities. SCORE does this by your own business mentor, visit use the SBA’s resources to help manage harnessing the passion and knowledge www.sba.gov/score, go to www.SCORE.org and expand your business, obtain of individuals who have owned and or call 1-800-624-0245 for the SCORE government contracts, recover from managed their own businesses and want office nearest you. disaster, find foreign markets, and to share this “real world” expertise with Asheboro SCORE #0648 make your voice heard in the federal you. Asheboro/Randolph Chamber of Commerce government. Found in more than 370 offices and 317 E. Dixie Dr. You can access SBA information at 800 locations throughout the country, Asheboro, NC 27203 www.sba.gov or visit one of our local SCORE provides key services – both 336-626-2626 • 336-626-7077 Fax offices for assistance. face-to-face and online – to busy SBA’S RESOURCE PARTNERS ON THE UPSIDE • You get to be your own boss. In addition to our district offices which •  ard work and long hours directly benefit you, H serve every state and territory, SBA rather than increasing profits for someone else. It’s true, there are a lot of works with a variety of local resource reasons not to start your •  arnings and growth potential are unlimited. E partners to meet your small business own business. But for the needs. These professionals can help •  Running a business will provide endless right person, the advantages with writing a formal business plan, variety, challenge and opportunities to learn. of business ownership far locating sources of financial assistance, outweigh the risks. managing and expanding your business, 8 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • Asheville SCORE #0137 Greensboro SCORE #0246 Upper Coastal Plains SCORE #700 Federal Bldg., Rm. 259 2007 Yanceyville St./P.O. Box 48 Braswell Memorial Library 151 Patton Ave. Greensboro, NC 27405 727 N. Grace St. Asheville, NC 28801 336-333-5399 • 336-333-5111 Fax Rocky Mount, NC 27804 828-271-4786 • 828-271-4786 Fax 252-442-1173 • 252-442-7366 Fax Western North Carolina SCORE #0242Chapel Hill SCORE #0495 Federal Bldg., Rm. 108 Wilmington SCORE #0283 Chapel Hill/Carrboro Chamber of Commerce 140 4th Ave. W. 4010 Oleander Dr. Hendersonville, NC 28792 Wilmington, NC 28403 COUNSELING 104 S. Estes Dr./P.O. Box 2897 Chapel Hill, NC 27515 828-693-8702 910-452-5395 • 910-452-5369 Fax 919-968-6894 • 919-968-6874 Fax High Point SCORE #0329Charlotte SCORE #0047 High Point Chamber of Commerce SMALL BUSINESS 6302 Fairview Rd., Ste. 300 Charlotte, NC 28210 1634 N. Main St./P.O. Box 5025 High Point, NC 27262 DEVELOPMENT CENTERS 704-344-6576 • 704-344-6769 Fax 336-882-8625 • 336-889-9499 Fax The U.S. Small Business Administration’s Small BusinessCoastal Carolina SCORE #0660 Outer Banks SCORE #0497 Development Center (SBDC) program’s 3615 Arendell St. Outer Banks Chamber of Commerce mission is to build, sustain, and Morehead City, NC 28557 101 Town Hall Dr. promote small business development 252-222-6126 • 252-222-6124 Fax Kill Devil Hills, NC 27948 and enhance local economies by 252-441-8148 • 252-441-0338 Fax creating businesses and jobs. ThisDown East SCORE #0577 is accomplished by the provision and c/o Neuse River Council of Governments Raleigh SCORE #0096 ensuing oversight of grants to colleges, 233 Middle St., Ste. 206/P.O. Box 790 Century Post Office Station universities and state governments so New Bern, NC 28563 300 Fayetteville St. Mall/P.O. Box 406 that they may provide business advice 252-633-6688 • 252-638-1819 Fax Raleigh, NC 27602 919-856-4739 • 919-856-4466 Fax and training to existing and potential small businesses.East Carolina SCORE #0693 1385 John Small Ave. Sandhills Area SCORE #0364 The Small Business Development Washington, NC 27889 10677 Hwy 15-501 Center program, vital to SBA’s 252-974-1848 • 252-946-8700 Fax Southern Pines, NC 28387 entrepreneurial outreach, has been 910-692-3926 • 910-692-0619 Fax providing service to small businessesVisit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 9
    • for more than 30 years. It is one of the largest professional small business Elizabeth City State University K.E. White Graduate Center/ECSU WOMEN’S BUSINESS CENTERS management and technical assistance 1704 Weeksville Rd./P.O. Box 874 The SBA’s Women Business Center networks in the nation. With over 900 Elizabeth City, NC 27909-7806 (WBC) program is a network of 110 locations across the country, SBDCs 252-335-3247 • 252-335-3648 Fax community-based centers which provide offer free one-on-one expert business business training, coaching, mentoring advice and low-cost training by qualified Fayetteville State University and other assistance geared toward small business professionals to existing 1200 Murchison Rd. women, particularly those who areCOUNSELING Fayetteville, NC 28302-1334 socially and economically disadvantaged. and future entrepreneurs. 910-672-1727 • 910-672-1949 Fax In addition to its core services, the WBCs are located in nearly every state SBDC program offers special focus areas and U.S. territory and are partially North Carolina A&T State University funded through a cooperative agreement such as, green business technology, Nusbaum Center for Entrepreneurs disaster recovery and preparedness, with the SBA. 2007 Yanceyville St., Ste. 303 international trade assistance, veteran’s To meet the needs of women Greensboro, NC 27405 assistance, technology transfer and 336-334-7005 • 336-334-7073 Fax entrepreneurs, WBCs offer services regulatory compliance. at convenient times and locations, The program combines a unique North Carolina State University including evenings and weekends. mix of federal, state and private 5 West Hargett St., Ste. 600 WBCs are located within non-profit host sector resources to provide, in every Raleigh, NC 27601 organizations that offer a wide variety state and territory, the foundation 919-715-7272 • 919-715-7777 Fax of services in addition to the services for the economic growth of small provided by the WBC. Many of the businesses. The return on investment University of North Carolina WBCs also offer training and counseling at Chapel Hill and provide materials in different is demonstrated by the program during 1700 Martin Luther King Jr. Blvd., Ste. 115 2011: languages in order to meet the diverse Chapel Hill, NC 27599-1823 needs of the communities they serve. • Assisted more than 13,660 entrepreneurs 919-962-0389 • 919-962-3291 Fax to start new businesses – equating to 37 WBCs often deliver their services new business starts per day. through long-term training or group University of North Carolina • Provided counseling services to over at Charlotte counseling, both of which have shown to 106,000 emerging entrepreneurs and 8701 Mallard Creek Rd., Ste. 102 be effective. WBC training courses are nearly 100,000 existing businesses. Charlotte, NC 28262-9705 often free or are offered at a small fee. • Provided training services to 704-548-1090 • 704-548-9050 Fax Some centers will also offer scholarships approximately 353,000 clients. based on the client’s needs The efficacy of the SBDC program University of North Carolina While most WBCs are physically has been validated by a nationwide at Wilmington located in one designated location, a impact study. Of the clients surveyed, 1612 Military Cutoff Dr., Ste. 208 number of WBCs also provide courses more than 80 percent reported that the Wilmington, NC 28403 and counseling via the Internet, mobile business assistance they received from 910-962-3744 • 910-962-3014 Fax classrooms and satellite locations. the SBDC counselor was worthwhile. WBCs have a track record of success. Similarly, more than 50 percent reported Western Carolina University In fiscal year 2011, the WBC program that SBDC guidance was beneficial in 204 Forsyth Bldg., 2nd Fl. counseled and trained nearly 139,000 Cullowhee, NC 28723-9646 making the decision to start a business. clients, creating local economic growth 828-227-3504 • 828-227-7074 Fax More than 40 percent of long-term and vitality. In addition, WBCs helped clients, those receiving 5 hours or more WCU Sub-Center at Asheville entrepreneurs access more than $134 of counseling, reported an increase 46 Havwood St., Ste. 212 million dollars in capital, representing in sales and 38 percent reported an Asheville, NC 28801 a 400% increase from the previous year. increase in profit margins. 828-251-6025 • 828-232-5126 Fax Of the WBC clients that have received 3 For information on the SBDC or more hours of counseling, 15 percent program, visit www.sba.gov/sbdc. Winston-Salem State University indicated that the services led to hiring In North Carolina, the following 301 N. Main St., Ste. 921A new staff, 34 percent indicated that offices are available to assist or visit the Winston-Salem, NC 27101 the services led to an increased profit 336-750-2030 • 336-779-7390 Fax margin, and 47 percent indicated that web site at: www.sbtdc.org. the services led to an increase in sales. University of North Carolina In addition, the WBC program has Appalachian State University at Pembroke 130 Poplar Grove Rd. COMtech 115 Livermore Dr./P.O. Box 1510 taken a lead in preparing women Boone, NC 28607 Pembroke, NC 28372-1510 business owners to apply for the 828-262-2492 • 828-262-2027 Fax 910-775-4000 • 910-775-4005 Fax Women-Owned Small Business (WOSB) Federal Contract program ASU Sub-Center at Hickory North Carolina Central University that authorizes contracting officers to 1990 Main Ave. S.E. School of Business Hickory, NC 28602 set aside certain federal contracts for 1801 Fayetteville St. eligible women-owned small businesses 828-345-1110 • 828-326-9117 Fax Durham, NC 27707 or economically disadvantaged women- 919-530-7386 • 919-530-7680 Fax owned small businesses. For more East Carolina University 300 E. First St., Willis Bldg. information on the program, visit Greenville, NC 27858-4353 www.sba.gov/wosb. 252-737-1385 • 252-737-1382 Fax To find the nearest SBA WBC, visit www.sba.gov/women. 10 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • EMERGING LEADERS • All participants were trained on becoming SBA 8(a) certified firms; Training is available anytime and anywhere — all you need is a computer(e200) INITIATIVE nearly 25 percent of respondents are currently certified as SBA 8(a) firms, with Internet access. SBA’s Emerging Leaders (e200) • More than 30 free online courses and while other participants reported aInitiative is currently hosted in 27 workshops available. focused intention on applying to the 8(a)markets across the country using a program. • Templates and samples to get yournationally demonstrated research-based • Nearly 50 percent of participating business planning underway.curriculum that supports the growth and respondents were female executives • Online, interactive assessment tools are COUNSELING and 70 percent were minority business featured and used to direct clients todevelopment of small to medium-sized executives. appropriate training.firms that have substantial potentialfor expansion and community impact. • 85 percent of responding executives Course topics include a financial were Satisfied or Very Satisfied with the primer keyed around SBA’s loan-A competitive selection process results overall training series and results.in company executives participating in guarantee programs, a course on To find out more about this executive- exporting, and courses for veteranshigh-level training and peer-networking level training opportunity, pleasesessions led by professional instructors. and women seeking federal visit www.sba.gov/e200 for host cities, contracting opportunities, as well as Post-training, social and economic training schedules, and selectionimpact results from responding an online library of podcasts, business criteria.executives who participated in the 2008 publications, templates and articles.– 2010 training classes indicate: Visit www.sba.gov/training for these • More than half of participating SBA’S ONLINE free resources. TOOLS AND TRAINING businesses reported an increase in revenue, with an average revenue of $1,879,266. SBA’s Small Business Training • Participating businesses averaged $2 million in revenue, with new cumulative Network is a virtual campus complete financing of $7.2 million secured in 2010. with free online courses, workshops, • Nearly half of the participants secured podcasts, learning tools and business- federal, state, local and tribal contracts readiness assessments. with a cumulative total of $287 million. Key Features of the Small Business • Approximately half of the participants Training Network: have hired new workers, creating 275 new jobs in 2010. REACHING UNDERSERVED COMMUNITIES SBA also offers a number of programs Women’s Business Centers serve The center offers workshops, individualspecifically designed to meet the needs a wide variety of geographic areas, consultations, technical assistance forof the underserved communities. population densities, and economic SBA loans, microloans, and peer-to-peer environments, including urban, mentoring to address many aspects of small business ownership.WOMEN BUSINESS OWNERS suburban, and rural. Local economies vary from depressed to thriving, and Women entrepreneurs are changing range from metropolitan areas to entire Women’s Business Center of North Carolinathe face of America’s economy. In the states. Each Women’s Business Center 114 W. Parrish St., 4th Fl./P.O. Box 13311970s, women owned less than five tailors its services to the needs of its Durham, NC 27701percent of the nation’s businesses. individual community, but all offer a 919-956-8889 Today, they are majority owners variety of innovative programs, often www.ncimed.comof about a third of the nation’s small including courses in different languages. info@ncimed.combusinesses and are at least equal owners The Women’s Business Center of North They provide training in finance, Carolina was created by the N.C. Instituteof about half of all small businesses. management, and marketing, as well as of Minority Economic Development as aSBA serves women entrepreneurs access to all of the SBA’s financial and program to provide a full range of trainingnationwide through its various programs procurement assistance programs. and counseling services for aspiring andand services, some of which are designed existing women business owners in Northespecially for women. Center for Economic Empowerment & Carolina. Additionally, the Center is a source The SBA’s Office of Women’s Business Development (CEED) of financial consulting, loan packaging, andOwnership (OWBO) serves as an 230 Hay St. contracting assistance for small businesses.advocate for women-owned businesses. Fayetteville, NC 28302OWBO oversees a nationwide network 910-323-3377 www.ncceed.org CENTER FOR FAITH-BASED ANDof 110 women’s business centers thatprovide business training, counseling ceedinfo@ncceed.org The Center for Economic Empowerment NEIGHBORHOOD PARTNERSHIPSand mentoring geared specifically to & Development (formerly known as the Faith-Based and Neighborhoodwomen, especially those who are socially Women’s Center of Fayetteville) provides Partnerships know their communities,and economically disadvantaged. The training and business plan assistance and they have earned the communitiesprogram is a public-private partnership to aspiring entrepreneurs and existing trust. Because of their credibility,with locally-based nonprofits. businesses in business start-up or expansion. they are uniquely positioned to buildVisit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 11
    • REACHING UNDERSERVED COMMUNITIES awareness of programs that encourage entrepreneurship, economic growth and low-interest-rate financing to small businesses when an owner or essential NATIVE AMERICAN BUSINESS DEVELOPMENTCOUNSELING job creation. employee is called to active duty. The SBA is committed to reaching Military Reservist Economic Injury The SBA Office of Native American out to faith-based and community Disaster Loan Program (MREIDL) Affairs (ONAA) ensures American organizations that are eligible to provides loans up to $2 million to eligible Indians, Alaska Natives and Native participate in the agency’s programs by small businesses to cover operating costs Hawaiians seeking to create, develop informing their congregants, members that cannot be met due to the loss of an and expand small businesses have and neighbors about SBA’s programs. essential employee called to active duty full access to the necessary business In particular, many faith-based and in the Reserves or National Guard. development and expansion tools community non-profit organizations Among the SBA’s unique services for available through the agency’s can provide a local financing option veterans are: an Entrepreneurship Boot entrepreneurial development, lending, for entrepreneurs by becoming SBA and contracting programs. ONAA Camp for Veterans with Disabilities in Microloan Intermediaries. An SBA provides a network of training (including partnership with 6 top U.S. universities Microloan Intermediary often acts as the online tool “Small Business (www.whitman.syr.edu/ebv), a program a bank for entrepreneurs and small Primer: Strategies for Growth”) and to reach women veteran-entrepreneurs businesses that might otherwise be counseling services and engages in (www.syr.edu/vwise) , and a program for numerous outreach activities, such as unable to find access to capital. Reserve Component family members tribal consultations, development and called Operation Endure and Grow distribution of educational materials, VETERANS AND RESERVISTS (www.whitman.syr.edu/endureandgrow). attendance and participation in BUSINESS DEVELOPMENT For more information about small business lending programs for veteran economic development events and Veterans, service-disabled veterans assisting these small businesses with business owners and Reserve or SBA programs. and Reserve and National Guard Guard members who are activated, Visit www.sba.gov/naa for more member entrepreneurs receive including Patriot Express, microloans, information. special consideration in all of SBA’s and Advantage loans, see the section entrepreneurial programs and resources. Cherokee Business Development Center on Access to Capital. To learn more Each year, the Office of Veterans Ginger Lynn Welch Complex about the Veterans Business Outreach Business Development (OVBD) 810 Acquoni Rd. program or find the nearest SBA VBOC, reaches thousands of veterans, Reserve Cherokee, NC 28719 visit www.sba.gov/vets. 828-497-1666 • 828-497-1665 Fax Component members, transitioning service members and others who are – www.sequoyahfund.org Veterans Business Outreach Center kimbwinc@nc-cherokee.com or who want to become – entrepreneurs (VBOC) and small business owners. OVBD Fayettville State University develops and distributes informational 1200 Murchison Rd., Newbold Station materials for entrepreneurship such as Fayetteville, NC 28301-4252 910-672-1107 the Veterans Business Resource Guide, rrehder@uncfsu.edu VETGazette, and Getting Veterans Back to Work. In addition, there are 16 Veterans Business Outreach Centers strategically located throughout the country that provide both online and in-person training, counseling, mentoring, workshops, referrals, and more. Each of the SBA’s 68 District Offices also has a designated veteran’s business development officer. The SBA offers special assistance for small businesses owned by activated Reserve and National Guard members. Any self-employed Reserve or Guard member with an existing SBA loan can request from their SBA lender or SBA district office loan payment deferrals, interest rate reductions and other relief after they receive their activation orders. In addition, the SBA offers special 12 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • ARE YOU RIGHT FOR SMALL BUSINESS OWNERSHIP? Most new business owners who succeed have planned for every phase own shoulders. Strong motivation will help you survive slowdowns and HOME-BASED BUSINESSES periods of burnout. Going to work used to mean of their success. Thomas Edison, the • How will the business affect traveling from home to a plant, store or great American inventor, once said, your family? The first few years of office. Today, many people do some or “Genius is 1 percent inspiration and all their work at home. business start-up can be hard on 99 percent perspiration.” That same family life. It’s important for family philosophy also applies to starting a members to know what to expect Getting Started COUNSELING business. and for you to be able to trust that Before diving headfirst into a home- First, you’ll need to generate a little they will support you during this based business, you must know why bit of perspiration deciding whether time. There also may be financial you are doing it. To succeed, your you’re the right type of person to start difficulties until the business becomes business must be based on something your own business. profitable, which could take months greater than a desire to be your or years. You may have to adjust to a own boss. You must plan and make IS ENTREPRENEURSHIP lower standard of living or put family assets at risk. improvements and adjustments along the road. FOR YOU? Once you’ve answered those Working under the same roof where There is simply no way to eliminate questions, you should consider what your family lives may not prove to be all the risks associated with starting type of business you want to start. as easy as it seems. One suggestion is a small business, but you can improve Businesses can include franchises, to set up a separate office in your home your chances of success with good at-home businesses, online businesses, to create a professional environment. planning, preparation, and insight. brick-and-mortar stores or any Ask yourself these questions: Start by evaluating your strengths combination of those. • Can I switch from home responsibilities to business work and weaknesses as a potential owner easily? and manager of a small business. Carefully consider each of the following FRANCHISING • Do I have the self-discipline to maintain schedules while at home? There are more than 3,000 business • Can I deal with the isolation of questions: • Are you a self-starter? It will be franchises. The challenge is to decide working from home? entirely up to you to develop projects, on one that both interests you and is organize your time, and follow a good investment. Many franchising Legal Requirements through on details. experts suggest that you comparison A home-based business is subject to • How well do you get along with shop by looking at multiple franchise many of the same laws and regulations different personalities? Business opportunities before deciding on the affecting other businesses. owners need to develop working one that’s right for you. Some general areas include: relationships with a variety of Some of the things you should • Zoning regulations. If your business people including customers, vendors, look at when evaluating a franchise: operates in violation of them, you staff, bankers, employees, and historical profitability, effective could be fined or shut down. professionals such as lawyers, • Product restrictions. Certain financial management and other accountants, or consultants. Can products cannot be produced in the controls, a good image, integrity and home. Most states outlaw home you deal with a demanding client, commitment, and a successful industry. an unreliable vendor, or a cranky production of fireworks, drugs, In the simplest form of franchising, poisons, explosives, sanitary or receptionist if your business interests demand it? while you own the business, its medical products and toys. Some • How good are you at making operation is governed by the terms of states also prohibit home-based decisions? Small business owners are the franchise agreement. For many, businesses from making food, drink required to make decisions constantly this is the chief benefit for franchising. or clothing. – often quickly, independently, and You are able to capitalize on a business Be sure to consult an attorney and under pressure. format, trade name, trademark and/ your local and state departments • Do you have the physical and or support system provided by the of state, labor and health to find emotional stamina to run a franchisor. But you operate as an out which laws and regulations will business? Business ownership can independent contractor with the ability affect your business. Additionally, be exciting, but it’s also a lot of work. to make a profit or sustain a loss check on registration and accounting Can you face six or seven 12–hour commensurate with your ownership. requirements needed to open your workdays every week? If you are concerned about starting home-based business. You may need • How well do you plan and a work certificate or license from the an independent business venture, then organize? Research indicates that franchising may be an option for you. state. Your business name may need poor planning is responsible for most business failures. Good organization Remember that hard work, dedication to be registered with the state. A — of financials, inventory, schedules, and sacrifice are key elements in separate business telephone and bank and production — can help you avoid the success of any business venture, account are good business practices. many pitfalls. including a franchise. Also remember, if you have • Is your drive strong enough? Visit www.sba.gov/franchise for more employees you are responsible for Running a business can wear you information. withholding income and social- down emotionally. Some business security taxes, and for complying with owners burn out quickly from having minimum wage and employee health to carry all the responsibility for the and safety laws. success of their business on theirVisit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 13
    • WRITING A BUSINESS PLAN After you’ve thought about what type of business you want, the next step is to develop a business plan. Think of the business plan as a roadmap with milestones for the business. It begins as aCOUNSELING pre-assessment tool to determine profitability and market share, then expands as an in-business assessment tool to determine success, obtain financing and determine repayment ability, among other factors. Creating a comprehensive business plan can be a long process, and you need good advice. The SBA and its resource partners, including Small Business Development Centers, Women’s Business Centers, Veterans Business Outreach Centers, and SCORE, have the expertise to help you craft a winning business plan. SBA also offers online templates to get you Marketing • Provide projected income statements, started. • Discuss the products and services and balance sheets for a two-year In general, a good business plan your company will offer. period. • Identify customer demand for your • Discuss your break-even point. contains: • Explain your personal balance sheet products and services. Introduction • Identify your market, its size and and method of compensation. • Give a detailed description of the locations. • Discuss who will maintain your business and its goals. • Explain how your products and accounting records and how they will • Discuss ownership of the business services will be advertised and be kept. and its legal structure. marketed. • Provide “what if” statements • List the skills and experience you • Explain your pricing strategy. addressing alternative approaches to bring to the business. potential problems. • Discuss the advantages you and your Financial Management business have over competitors. • Develop an expected return on Operations investment and monthly cash flow for • Explain how the business will be the first year. managed day-to-day. • Discuss hiring and personnel procedures. • Discuss insurance, lease or rent agreements, and issues pertinent to your business. • Account for the equipment necessary to produce your goods or services. • Account for production and delivery of products and services. Concluding Statement Summarize your business goals and objectives and express your commitment to the success of your business. Once you have completed your business plan, review it with a friend or business associate and professional business counselor like SCORE, WBC or SBDC representatives, SBA district office business development specialists or veterans business development specialists. Remember, the business plan is a flexible document that should change as your business grows. 14 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • CAPITAL Financing Options to Start or Grow Your Business loan structure, variety of loan proceed uses, and availability. The program has broad eligibility requirements and credit criteria to accommodate a wide range of financing needs. The business loans that SBA guarantees do not come from the agency, but rather from banks and other approved lenders. The loans are funded by these organizations, and they make the decisions to approve or not approve the applicants’ requests. The SBA guaranty reduces the CAPITAL lender’s risk of borrower non-payment. If the borrower defaults, the lender can request SBA to pay the lender that percentage of the outstanding balance guaranteed by SBA. This allows the lender to recover a portion from SBA of what it lent if the borrower can’t make the payments. The borrower is still obligated for the full amount. To qualify for an SBA loan, a smallM business must meet the lender’s any entrepreneurs need the applicant small business, the lender criteria and the 7(a) requirements. In financial resources to start and the SBA. SBA guarantees a portion addition, the lender must certify that it or expand a small business of the loan (except for Microloans). would not provide this loan under the themselves and must The business should have its business proposed terms and conditions unless combine what they have plan prepared before it applies for a it can obtain an SBA guaranty. If thewith other sources of financing. These loan. This plan should explain what SBA is going to provide a lender withsources can include family and friends, resources will be needed to accomplish a guaranty, the applicant must beventure-capital financing, and business the desired business purpose including eligible and creditworthy and the loanloans. the associated costs, the applicants’ structured under conditions acceptable This section of the Small Business contribution, use of loan proceeds, to SBA.Resource guide discusses SBA’s primary collateral, and, most important, anbusiness loan and equity financing explanation of how the business will Percentage of Guarantiesprograms. These are: the 7(a) Loan be able to repay the loan in a timely and Loan MaximumsProgram, the Certified Development manner. The SBA only guarantees a portion ofCompany or 504 Loan Program, the The lender will analyze the any particular loan so each loan will also application to see if it meets the lender’s have an unguaranteed portion, givingMicroloan Program and the Small criteria and SBA’s requirements. SBA the lender a certain amount of exposureBusiness Investment Company will look to the lender to do much, if not and risk on each loan. The percentageProgram. The distinguishing features all, of the analysis before it provides SBA guarantees depends on either thefor these programs are the total dollar its guaranty on the lender’s loan. In dollar amount or the program the lenderamounts that can be borrowed, the type the case of microlenders, SBA loansof lenders who can provide these loans, uses to obtain its guaranty. For loans of these intermediaries funds at favorable $150,000 or less the SBA may guarantythe uses for the loan proceeds, and the rates to re-lend to businesses withterms placed on the borrower. as much as 85 percent and for loans financing needs up to $50,000. The over $150,000 the SBA can provide a Note: The SBA does not offer grants SBA’s business loan programs provide ato individual business owners to start or guaranty of up to 75 percent. key source of financing for viable small The maximum 7(a) loan amountgrow a business. businesses that have real potential but is $5 million. (Loans made under cannot qualify for long-term, stableSBA BUSINESS LOANS financing. the SBAExpress program, which is discussed later in this section, have a 50 If you are contemplating a business percent guaranty.)loan, familiarize yourself with theSBA’s business loan programs to see 7(a) LOAN PROGRAM Interest Rates and Fees The 7(a) Loan program is the SBA’s The actual interest rate for a 7(a)if they may be a viable option. Keep primary business loan program. It loan guaranteed by SBA is negotiatedin mind the dollar amount you seek to is the agency’s most frequently used between the applicant and lender andborrow and how you want to use the non-disaster financial assistance subject to SBA maximums. Both fixedloan proceeds. The three principal program because of its flexibility in and variable interest rate structuresplayers in most of these programs areVisit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 15
    • What To Take To The Lender are available. The maximum rate is comprised of two parts, a base rate and Documentation requirements may For the Standard, Certified and an allowable spread. There are three vary; contact your lender for the Preferred methods, the applicant acceptable base rates (Wall Street information you must supply. fills out SBA Form 4, and the lender Journal Prime*, London Interbank One Common requirements include the completes SBA Form 4-1. When Month Prime plus 3 percent, and an following: requests for guarantees are processed SBA Peg Rate). Lenders are allowed • Purpose of the loan using Express or Advantage methods, to add an additional spread to the base • History of the business the applicant uses more of the regular rate to arrive at the final rate. For • Financial statements for three years loans with maturities of less than seven forms of the lender and just has a few (existing businesses) years, the maximum spread will be no • Schedule of term debts (existing federal forms to complete. When SBA more than 2.25 percent. For loans with businesses) receives a request that is processed maturities of seven years or more, the • Aging of accounts receivable and through Standard or Certified maximum spread will be 2.75 percent. payable (existing businesses) Lender Program procedures, it either The spread on loans under $50,000 • Projected opening-day balance sheet reanalyzes or reviews the lender’s (new businesses) and loans processed through Express eligibility and credit analysis before procedures may be higher. • Lease details • Amount of investment in the business deciding to approve or reject. For Loans guaranteed by SBA are by the owner(s) requests processed through Preferred assessed a guaranty fee. This fee is • Projections of income, expenses and Lender Program or Express programs, based on the loan’s maturity and theCAPITAL cash flow as well as an explanation of the lender is delegated the authority to dollar amount guaranteed, not the the assumptions used to develop these make the credit decision without SBA’s total loan amount. The guaranty fee is projections concurrences, which helps expedite the initially paid by the lender and then • Personal financial statements on the processing time. passed on to the borrower at closing. principal owners • Resume(s) of the principal owners and In guaranteeing the loan, the SBA The funds to reimburse the lender can managers. assures the lender that, in the event the be included in the loan proceeds. borrower does not repay the loan, the On any loan with a maturity of one How the 7(a) Program Works government will reimburse the lending year or less, the fee is just 0.25 percent Applicants submit their loan institution for a portion of its loss. By of the guaranteed portion of the loan. application to a lender for the initial providing this guaranty, the SBA is On loans with maturities of more than review. The lender will generally able to help tens of thousands of small one year, the normal guaranty fee is 2 review the credit merits of the request businesses every year get financing percent of the SBA guaranteed portion before deciding if they will make the they might not otherwise obtain. on loans up to $150,000; 3 percent on loan themselves or if they will need an After SBA approval, the lender loans over $150,000 but not more than SBA guaranty. If a guaranty is needed, is notified that its loan has been $700,000; and 3.5 percent on loans over the lender will also review eligibility. $700,000. There is also an additional guaranteed. The lender then will The applicant should be prepared to fee of 0.25 percent on any guaranteed work with the applicant to make sure complete some additional documents portion over $1 million. the terms and conditions are met before the lender sends the request * All references to the prime rate before closing the loan, disbursing the refer to the base rate in effect on the for guaranty to the SBA. Applicants funds, and assuming responsibility who feel they need more help with the first business day of the month the for collection and general servicing. loan application is received by SBA. process should contact their local SBA The borrower makes monthly loan district office or one of SBA’s resource payments directly to the lender. As with partners for assistance. 7(a) Loan Maturities any loan, the borrower is responsible for SBA loan programs are generally There are several ways a lender repaying the full amount of the loan in intended to encourage longer term small can apply for a 7(a) guaranty from a timely manner. business financing, but actual loan SBA. The main differences between maturities are based on the ability to these methods are related to the What the SBA Looks for: repay, the purpose of the loan proceeds documentation which the lender • Ability to repay the loan on time from and the useful life of the assets financed. provides, the amount of review which the projected operating cash flow; However, maximum loan maturities SBA conducts, the amount of the loan • Owners and operators who are of good have been established: 25 years for real and the lender responsibilities in case character; estate; up to 10 years for equipment the loan defaults and the business’ • Feasible business plan; (depending on the useful life of the assets must be liquidated. The methods • Management expertise and equipment); and generally up to seven are: • Standard 7(a) Guaranty commitment necessary for success; years for working capital. Short-term • Certified Lender Program • Sufficient funds, including the SBA loans and revolving lines of credit are • Preferred Lender Program guaranteed loan, to operate the also available through the SBA to help business on a sound financial basis small businesses meet their short-term • Rural Lender Advantage (for new businesses, this includes the and cyclical working capital needs. • SBA Express resources to meet start-up expenses • Patriot Express and the initial operating phase); Structure • Export Express • Adequate equity invested in the Most 7(a) loans are repaid with • Small Loan Advantage business; and monthly payments of principal and • Community Advantage • Sufficient collateral to secure the loan interest. For fixed-rate loans the or all available collateral if the loan payments stay the same, whereas cannot be fully secured. for variable rate loans the lender can re-establish the payment amount 16 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • when the interest rates change or at Nature of Business buildings that will be occupied by theother intervals, as negotiated with The second eligibility factor is based business borrower.the borrower. Applicants can request on the nature of the business and the Proceeds can also be used to:that the lender establish the loan with process by which it generates income or • Expand or renovate facilities;interest-only payments during the the customers it serves. The SBA has • Acquire machinery, equipment,start-up and expansion phases (when general prohibitions against providing furniture, fixtures and leasehold improvements;eligible) to allow the business time to financial assistance to businesses • Finance receivables and augmentgenerate income before it starts making involved in such activities as lending, working capital;full loan payments. Balloon payments speculating, passive investment, • Finance seasonal lines of credit;or call provisions are not allowed on any pyramid sales, loan packaging, • Acquire businesses;7(a) loan. The lender may not charge a presenting live performances of a • Start up businesses; prurient sexual nature, businesses • Construct commercial buildings; andprepayment penalty if the loan is paid • Refinance existing debt under certainoff before maturity, but the SBA will involved in gambling and any illegal conditions.charge the borrower a prepayment fee activity. SBA 7(a) loan proceeds cannot be usedif the loan has a maturity of 15 or more The SBA also cannot loan guaranties for the purpose of making investments.years and is pre-paid during the first to non-profit businesses, private clubs SBA proceeds cannot be used tothree years. that limit membership on a basis provide funds to any of the owners other than capacity, businesses that of the business except for ordinaryCollateral promote a religion, businesses owned by compensation for actual services The SBA expects every 7(a) loan to individuals incarcerated or on probation provided.be fully secured, but the SBA will not or parole, municipalities, and situations CAPITALdecline a request to guaranty a loan if where the business or its ownersthe only unfavorable factor is insufficient Miscellaneous Factors previously failed to repay a federal loan The fourth factor involves a varietycollateral, provided all available or federally assisted financing.collateral is offered. What these two of requirements such as SBA’s creditpolicies mean is that every SBA loan elsewhere test and utilization ofis to be secured by all available assets Use of Proceeds personal assets requirements, where the(both business and personal) until the The third eligibility factor is use of business and its principal owners mustrecovery value equals the loan amount proceeds. 7(a) proceeds can be used use their own resources before getting aor until all assets have been pledged to: purchase machinery; equipment; loan guaranteed by SBA. It also includesto the extent that they are reasonably fixtures; supplies; make leasehold SBA’s anti-discrimination rules andavailable. Personal guaranties are improvements; as well as land and/or limitations on lending to agriculturalrequired from all the principal owners ofthe business. Liens on personal assets ofthe principals may be required.Eligibility 7(a) loan eligibility is based on fourdifferent factors. The first is size, asall loan recipients must be classified as“small” by SBA. The basic size standardsare outlined below. A more in-depthlisting of standards can be found atwww.sba.gov/size.SBA Size Standards have the followinggeneral ranges: • Manufacturing — from 500 to 1,500 employees • Wholesale Trades — Up to 100 employees • Services — $2 million to $35.5 million in average annual receipts • Retail Trades — $7 million to $35.5 million in average annual receipts • Construction — $7 million to $33.5 million in average annual receipts • Agriculture, Forestry, Fishing, and Hunting — $750,000 to $17.5 million in average annual receipts There is an alternate size standardfor businesses that do not qualify undertheir industry size standards for SBAfunding – tangible net worth($15 million or less) and average netincome ($5 million or less for twoyears). This new alternate makesmore businesses eligible for SBA loansand applies to SBA non-disaster loanprograms, namely its 7(a) BusinessLoans and Development Companyprograms.Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 17
    • enterprises because there are other • Active-duty servicemembers eligible local communities, particularly those agencies of the federal government with for the military’s Transition Assistance facing the challenges of population programs to fund such businesses. Program; loss, economic dislocation, and high Generally, SBA loans must meet the • Reservists and National Guard unemployment. Visit www.sba.gov/ following criteria: members; • Every loan must be for a sound • Current spouses of any of the above, content/rural-business-loans for more business purpose; including any servicemember; information. • There must be sufficient invested • The widowed spouse of a servicemember equity in the business so it can operate or veteran who died during service or of Advantage Loans on a sound financial basis; a service-connected disability. In early 2011, SBA rolled out two • There must be a potential for long- Advantage loan initiatives aimed term success; The Patriot Express loan is offered • The owners must be of good character by SBA’s nationwide network of at helping entrepreneurs and small and reputation; and business owners in underserved private lenders and features the fastest • All loans must be so sound as to communities gain access to capital. reasonably assure repayment. turnaround time for loan approvals. Both offer a streamlined loan application For more information, go to Loans are available up to $500,000 and process and the regular 7(a) loan www.sba.gov/apply. qualify for SBA’s maximum guaranty of guarantee for loans under $250,000. 85 percent for loans of $150,000 or less The Small Loan Advantage program SPECIAL PURPOSE and 75 percent for loans over $150,000 is available to lenders participating in up to $500,000. For loans above the Preferred Lenders Program. SBA 7(a) LOAN PROGRAMS $350,000, lenders are required to either lenders who are not participating in theCAPITAL The 7(a) program is the most flexible obtain all collateral or enough collateral Preferred Lenders Program can contact so the value is equal to the loan amount, their local district office to apply. of SBA’s lending programs. The agency The Community Advantage pilot has created several variations to the whichever comes first. program opens up 7(a) lending to basic 7(a) program to address the The Patriot Express loan can mission-focused, community-based particular financing need of certain be used for most business purposes, lenders – such as Community small businesses. These special purpose including start-up, expansion, Development Financial Institutions programs are not necessarily for all equipment purchases, working capital, (CDFIs), Certified Development businesses but may be very useful and inventory or business-occupied real- Companies (CDCs), and microlenders to some small businesses. They are estate purchases. – who provide technical assistance generally governed by the same rules, Patriot Express loans feature SBA’s and economic development support in regulations, fees, interest rates, etc. as lowest interest rates for business loans, underserved markets. the regular 7(a) loan guaranty. Lenders generally 2.25 percent to 4.75 percent More information on both programs is can advise you of any variations. over prime depending upon the size available at www.sba.gov/advantage. and maturity of the loan. Your local SBAExpress SBA district office will have a listing of CAPLines The SBAExpress guaranty is available The CAPLines program is designed Patriot Express lenders in your area. to help small businesses meet their to lenders as a way to obtain a guaranty on smaller loans up to $350,000. More information is available at short-term and cyclical working capital The program authorizes selected, www.sba.gov/patriotexpress. needs. The programs can be used to experienced lenders to use mostly their Self-employed Reserve or Guard finance seasonal working capital needs; own forms, analysis and procedures members with an existing SBA loan can finance the direct costs of performing to process, service and liquidate SBA- request from their SBA lender or SBA certain construction, service and supply guaranteed loans. The SBA guarantees district office, loan payment deferrals, contracts, subcontracts, or purchase up to 50 percent of an SBAExpress loan. interest rate reductions and other relief orders; finance the direct cost associated Loans under $25,000 do not require after they receive their activation orders. with commercial and residential construction; or provide general working collateral. The use of loan proceeds is The SBA also offers special low-interest- capital lines of credit. SBA provides up the same as for any basic 7(a) loan. Like rate financing of up to $2 million when to an 85 percent guarantee. There are most 7(a) loans, maturities are usually an owner or essential employee is called four distinct loan programs under the five to seven years for working capital to active duty through the Military CAPLine umbrella: and up to 25 years for real estate or Reservist Economic Injury Disaster • The Contract Loan Program is used equipment. Revolving lines of credit are Loan program (MREIDL) to help cover to finance the cost associated with allowed for a maximum of seven years. operating costs due to the loss of an contracts, subcontracts, or purchase orders. Proceeds can be disbursed essential employee called to active duty. before the work begins. If used for one Patriot Express and Other contract or subcontract, it is generally Lending Programs For Veterans Rural Lender Advantage not revolving; if used for more than The Patriot Express pilot loan The Small/Rural Lender Advantage one contract or subcontract at a time, initiative is for veterans and members (S/RLA) initiative is designed to it can be revolving. The loan maturity of the military community wanting to accommodate the unique loan processing is usually based on the length of the establish or expand a small business. needs of small community/rural-based contract, but no more than ten years. lenders by simplifying and streamlining Contract payments are generally sent Eligible military community members directly to the lender but alternative include: loan application process and procedures, structures are available. • Veterans; particularly for smaller SBA loans. It • The Seasonal Line of Credit Program • Service-disabled veterans; is part of a broader SBA initiative to is used to support buildup of inventory, promote the economic development of accounts receivable or labor and 18 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • materials above normal usage for the guaranteed portion of other SBA • Maturities of up to 25 years are seasonal inventory. The business loans outstanding to the borrower. The available for real estate. must have been in business for a maximum guaranty for any working • Loans with a mixed use of fixed-asset period of 12 months and must have a capital component of an ITL is $4 and working-capital financing will have definite established seasonal pattern. million. Additionally, any other working a blended-average maturity. The loan may be used over again capital SBA loans the borrower has are after a “clean-up” period of 30 days Interest Rates to finance activity for a new season. counted against the $4 million guaranty limit. Lenders may charge between 2.25 These also may have a maturity of up to 2.75 percent above the prime rate (as to five years. The business may not have another seasonal line of credit Use of Proceeds published in the Wall Street Journal) outstanding but may have other lines • For the facilities and equipment portion depending upon the maturity of the for non-seasonal working capital needs. of the loan, proceeds may be used to loan. Interest rates on loans of $50,000 • The Builders Line Program provides acquire, construct, renovate, modernize, and less can be slightly higher. financing for small contractors or improve or expand facilities or equipment developers to construct or rehabilitate in the U.S. to produce goods or services Exporter Eligibility residential or commercial property. involved in international trade. • Applicants must meet the same Loan maturity is generally three • Working capital is an allowable use of eligibility requirements as for the SBA’s years but can be extended up to proceeds under the ITL. standard 7(a) Loan Program. five years, if necessary, to facilitate • Proceeds may be used for the refinancing • Applicants must also establish that sale of the property. Proceeds are of debt structured with unreasonable the loan will allow the business to used solely for direct expenses of terms and conditions, including any debt expand or develop an export market or, CAPITAL acquisition, immediate construction that qualifies for refinancing under the demonstrate that the business has been and/or significant rehabilitation standard SBA 7(a) Loan Program. adversely affected by import competition of the residential or commercial and that the ITL will allow the business to improve its competitive position. structures. The purchase of the land Loan Term can be included if it does not exceed 20 • Maturities on the working capital percent of the loan proceeds. Up to 5 portion of the ITL are typically limited Foreign Buyer Eligibility percent of the proceeds can be used for to 10 years. Foreign buyers must be located in physical improvements that benefit the • Maturities of up to 10 years on those countries wherein the Export- property. equipment unless the useful life exceeds Import Bank of the U.S. is not • The Working Capital Line is 10 years. prohibited from providing financial a revolving line of credit (up to assistance. $5,000,000) that provides short term working capital. These lines are generally used by businesses that provide credit to their customers. Disbursements are generally based on the size of a borrower’s accounts receivable and/or inventory. Repayment comes from the collection of accounts receivable or sale of inventory. The specific structure is negotiated with the lender. There may be extra servicing and monitoring of the collateral for which the lender can charge up to two percent annually to the borrower.International Trade Loan Program The SBA’s International Trade Loan(ITL) provides small businesses withenhanced export financing options fortheir export transactions. It is designedto help small businesses enter andexpand into international marketsand, when adversely affected by importcompetition, make the investmentsnecessary to better compete. The ITLoffers a combination of fixed asset,working capital financing and debtrefinancing with the SBA’s maximumguaranty--- 90 percent --- on the totalloan amount. The maximum loanamount is $5 million in total financing.Guaranty Coverage The SBA can guaranty up to 90percent of an ITL up to a maximumof $4.5 million, less the amount ofVisit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 19
    • Collateral Requirements • Only collateral located in the U.S. (including its territories and possessions) is acceptable. • First lien on property or equipment financed by the ITL or on other assets of the business is required. However, an ITL can be secured by a second lien position if the SBA determines there is adequate assurance of loan payment. • Additional collateral, including personal guaranties and those assets not financed with ITL proceeds, may be appropriate. How to Apply • A small business seeking an ITL must apply to an SBA-participating lender. The lender will submit a completed Application for Business Loan (SBA Form 4), including all exhibits, to the SBA. Visit www.sba.gov to find yourCAPITAL local SBA district office for a list of Ineligible Use of Proceeds flexibility in negotiating export payment participating lenders. Proceeds may not be used to finance terms — secure in the assurance that • A small business exporter wanting to overseas operations other than those adequate financing will be in place when qualify as adversely impacted from strictly associated with the marketing the export order is won. import competition must submit and/or distribution of products/services supporting documentation that explains Benefits of the EWCP that impact, and a plan with projections exported from the U.S. • Financing for suppliers, inventory or that explains how the loan will improve production of export goods. Exporter Eligibility the business’ competitive position. • Export working capital during long Any business that has been in payment cycles. operation, although not necessarily in Export Express exporting, for at least 12 full months and • Financing for stand-by letters of credit SBA Export Express offers flexibility used as bid or performance bonds or can demonstrate that the loan proceeds down payment guarantees. and ease of use to both borrowers and lenders. It is the simplest export loan will support its export activity is eligible • Reserves domestic working capital for product offered by the SBA and allows for Export Express. the company’s sales within the U.S. participating lenders to use their own • Permits increased global competitiveness forms, procedures and analyses. The Foreign Buyer Eligibility by allowing the exporter to extend more The exporter’s foreign buyer must be liberal sales terms. SBA provides the lender with a response a creditworthy entity and the methods of • Increases sales prospects in under- within 36 hours. developed markets which have high This loan is subject to the same payment must be acceptable to the SBA capital costs for importers. loan processing, closing, servicing and and the SBA lender. • Low fees and quick processing times. liquidation requirements as well as the same maturity terms, interest rates and How to Apply Interested businesses should contact Guaranty Coverage applicable fees as for other SBA loans • Maximum loan amount is $5,000,000. (except as noted below). their existing lender to determine if they • 90 percent of principal and accrued are an SBA Express lender. Lenders interest up to 120 days. Guaranty Coverage that participate in SBA’s Express • Low guaranty fee of one-quarter of one The SBA provides lenders with a program are also able to make Export percent of the guaranteed portion for 90 percent guaranty on loans up to Express loans. Application is made loans with maturities of 12 months or $350,000 and a 75 percent guaranty directly to the lender. Lenders use their less. on loans more than $350,000 up to the own application material in addition • Loan maturities are generally for 12 maximum of $500,000. to SBA’s Borrower Information Form. months or less. Lenders’ approved requests are then Use of Proceeds submitted with a limited amount of Use of Proceeds Loan proceeds may be used for eligibility information to SBA’s National • To pay for the manufacturing costs of business purposes that will enhance a goods for export. Loan Processing Center for review. company’s export development. Export • To purchase goods or services for export. Express can take the form of a term • To support standby letters of credit to Export Working Capital Program act as bid or performance bonds. loan or a revolving line of credit. As The SBA’s Export Working Capital an example, proceeds can be used to • To finance foreign accounts receivable. Program (EWCP) assists lenders in fund participation in a foreign trade meeting the needs of exporters seeking Interest Rates show, finance standby letters of credit, short-term export working capital. The SBA does not establish or translate product literature for use in foreign markets, finance specific export Exporters can apply for EWCP loans subsidize interest rates on loans. The orders, as well as to finance expansions, in advance of finalizing an export sale interest rate can be fixed or variable and equipment purchases, and inventory or or contract. With an approved EWCP is negotiated between the borrower and real estate acquisitions, etc. loan in place, exporters have greater the participating lender. 20 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • Advance Rates rate, subordinate mortgage financing Recent additions to the program allow • Up to 90 percent on purchase orders. for acquisition and/or renovation of $5.5 million for each project that reduces • Up to 90 percent on documentary letters capital assets including land, buildings the borrower’s energy consumption by of credit. and equipment. Some refinancing is at least 10 percent; and $5.5 million for • Up to 90 percent on foreign accounts also permitted. Most for-profit small each project that generates renewable receivable. businesses are eligible for this program. • Up to 75 percent on eligible foreign energy fuels, such as biodiesel or ethanol The types of businesses excluded from inventory located within the U.S. production. Projects eligible for up to 7(a) loans (listed previously) are also • In all cases, not to exceed the exporter’s $5.5 million under one of these two excluded from the 504 loan program. costs. Loans are provided through Certified requirements do not have to meet the Development Companies. CDCs work job creation or retention requirement, soCollateral Requirements with banks and other lenders to make long as the CDC portfolio average is at The export-related inventory and the loans in first position on reasonable least $65,000.receivables generated by the export terms, helping lenders retain growing • Eligible project costs are limitedsales financed with EWCP funds will customers and provide Community to long-term, fixed assets such asbe considered adequate collateral. The Redevelopment Act credit. land and building (occupied by theSBA requires the personal guarantee borrower) and substantial machinery The SBA 504 loan is distinguishedof owners with 20 percent or more and equipment. Working capital is not from the SBA 7(a) loan program in theseownership. an eligible use of proceeds, except in a ways: temporary program which is scheduled The maximum debenture, or long-term to expire on September 27, 2012. CAPITALHow to apply loan, is: • Most borrowers are required to make Application is made directly to SBA- • $5 million for businesses that create a an injection (borrower contribution)participating lenders. Businesses are certain number of jobs or improve the of just 10 percent which allowsencouraged to contact SBA staff at their local economy; the business to conserve valuablelocal U.S. Export Assistance Center • $5 million for businesses that meet a operating capital. A further injection(USEAC) to discuss whether they are specific public policy goal, including of 5 percent is needed if the businesseligible for the EWCP and whether it is veterans; and is a start-up or new (less than 2the appropriate tool to meet their export • $5.5 million for manufacturers and years old), and a further injection of 5financing needs. Participating lenders energy public policy projects. percent is also required if the primary collateral will be a single purposereview/approve the application and building (such as a hotel).submit the request to SBA staff at thelocal USEAC.U.S. Export Assistance Center There are 20 U.S. Export AssistanceCenters located throughout theU.S. They are staffed by SBA, U.S.Department of Commerce and Export-Import Bank of the U.S. personnel,and provide trade promotion andexport-finance assistance in a singlelocation. The USEACs also work closelywith other federal, state and localinternational trade organizations toprovide assistance to small businesses.To find your nearest USEAC, visit:www.sba.gov/content/us-export-assistance-centers. You can find additional exporttraining and counseling opportunities bycontacting your local SBA office.Dan Holt USEAC 521 E. Morehead St., Ste. 435 Charlotte, NC 28202 704-333-4886CERTIFIED DEVELOPMENTCOMPANY LOAN PROGRAM(504 LOANS) The 504 Loan program is an economicdevelopment program that supportsAmerican small business growth andhelps communities through businessexpansion and job creation. This SBAprogram provides long-term, fixed-Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 21
    • • Two-tiered project financing: A lender Neuse River Development Authority between the borrower and the finances approximately 50 percent of Guy Williams intermediary. The maximum term for a the project cost and receives a first P.O. Box 1111 lien on the project assets (but no SBA microloan is 7 years. New Bern, NC 28563 guaranty); A CDC (backed by a 100 The program also provides business- 252-638-6724 percent SBA-guaranteed debenture) gwilliams@nrda.org based training and technical assistance finances up to 40 percent of the project www.nrda.org to microborrowers and potential costs secured with a junior lien. The microborrowers to help them be borrower provides the balance of the Piedmont Triad Regional Council project costs. successful at starting or growing their Charles Malone businesses. Such training and technical • Fixed interest rate on SBA loan. SBA 400 W. Fourth St., Ste. 400 guarantees the debenture 100 percent. Winston-Salem, NC 27101 assistance may include general business Debentures are sold in pools monthly education, assistance with business to private investors. This low, fixed 336-761-2111 ext. 3158 rate is then passed on to the borrower cmalone@ptrc.org planning industry-specific training, and establishes the basis for the loan www.ptrc.org and other types of training support. rate. Entrepreneurs and small business • All project-related costs can be Region D Development Corporation owners interested in small amounts financed, including acquisition (land Phil Trew 468 New Market Blvd. of business financing should contact and building, land and construction of building, renovations, machinery and Boone, NC 28607 the nearest SBA District Office for equipment) and soft costs, such as title 828-265-5434 ext. 121 information about the nearest Microloan insurance and appraisals. Some closing ptrew@regiond.org Program Intermediary Lender or go toCAPITAL costs may be financed. www.regiond.org www.sba.gov/microloans. • Collateral is typically a subordinate lien on the assets financed; allows Self-Help Ventures Fund W.A.M.Y. Community Action Inc. other assets to be free of liens and Charles Cleary 225 Birch St., Ste. 2 available to secure other needed 301 W. Main St./P.O. Box 3619 Boone, NC 28607 financing. Durham, NC 27701 • Long-term real estate loans are up to 828-264-2421 • 828-264-0952 Fax 919-956-4400 or 704-409-5915 20-year term, heavy equipment 10- or wamyloan@charter.net Charlie.cleary@self-help.org 20-year term and are self-amortizing. Area: Avery, Mitchell, Watauga and Yancey www.self-help.org/504loans Counties Businesses that receive 504 loans are: • Small — net worth under $15 million, Smoky Mountain Development Self-Help net profit after taxes under $5 million, or Corporation 301 W. Main St. meet other SBA size standards. Allan Steinberg Durham, NC 27701 • Organized for-profit. 144 Industrial Park Dr. 800-476-7428 • 919-956-4600 Fax • Most types of business — retail, service, Waynesville, NC 28786 Statewide Service wholesale or manufacturing. 828-452-1967 The SBA’s 504 certified development arsteinberg@msn.com Mountain BizCapital companies serve their communities by www.smdcnc.org 153 South Lexington Ave. financing business expansion needs. Asheville, NC 28801 Wilmington Industrial Development 828-253-2834 • 828-255-7953 Fax Their professional staffs work directly Corporation Area: Western North Carolina with borrowers to tailor a financing Susie Parker package that meets program guidelines SMALL BUSINESS P.O. Box 1698 and the credit capacity of the borrower’s Wilmington, NC 28402 INVESTMENT COMPANY business. For information, visit 910-763-8414 susieparker@wilmingtonindustry.com www.sba.gov/504. Avista Business Development Corporation www.wilmingtonindustry.com PROGRAM Bob Kendrick P.O. Box 7032 MICROLOAN PROGRAM There are a variety of alternatives to bank financing for small businesses. The Asheville, NC 28802 The Microloan program provides Small Business Investment Company 828-645-0439 small loans ranging from under $500 (SBIC) program fills the gap between bob.kendrick@charter.net to $50,000 to women, low-income, what owners can fund directly and the minority, veteran, and other small needs of the small business for growth BEFCOR Sheldon Hilaire business owners through a network capital. Licensed and regulated by the 5970 Fairview Rd., Ste. 218 of approximately 160 intermediaries SBA, SBICs are privately owned and Charlotte, NC 28210 nationwide. Under this program, the managed investment funds that make 704-414-3000 SBA makes funds available to nonprofit capital available to qualifying U.S. small shilaire@befcor.com intermediaries that, in turn, make the businesses. The funds raise private www.befcor.com small loans directly to entrepreneurs, capital and can receive SBA-guaranteed Centralina Development Corporation including veterans. Proceeds can be leverage up to 3x private capital, with Richard Vitolo used for typical business purposes such a leverage ceiling of $150 million per P.O. Box 34218 as working capital, or the purchase of SBIC and $225 million for two or more Charlotte, NC 28234 furniture, fixtures, machinery, supplies, licenses under common control. Licensed 704-373-1233 SBICs are for-profit investment firms equipment, and inventory. Microloans rvitolo@cdccapital.com whose incentive is to share in the www.centralinacapital.com may not be used for the purchase of real estate. Interest rates are negotiated success of a small business. The SBIC 22 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • program provides funding for a broad encourages commercialization of the small businesses through the SBIRrange of industries. Some SBICs invest technology, product or service. In turn, program: Departments of Agriculture;in a particular field or industry while this stimulates the U.S. economy. Commerce; Defense; Education; Energy;others invest more generally. For more Health and Human Services; Homelandinformation, visit www.sba.gov/inv. SBIR Requirements Security; Transportation; Environmental Small businesses must meet the following eligibility criteria to participate Protection Agency; National AeronauticsBancAmerica Capital Investors SBIC, L.P. and Space Administration; and National NC1-007-25-02 in the SBIR program. 150 N. College St., Ste. 2500 • Be 51 percent owned and controlled by Science Foundation. Charlotte, NC 28255 one or more individuals who are U.S. SMALL BUSINESS 704-944-0966 • 704-944-0973 Fax citizens or permanent resident aliens in the U.S. or be a for-profit businessBancBoston Ventures, Incorporated concern that is at least 51 percent owned and controlled by another TECHNOLOGY TRANSFER PROGRAM Bank of America Corporate Center for-profit business concern that is at NC1-007-22-32 least 51 percent owned and controlled 100 N. Tryon St. by one or more individuals who are The Small Business Technology Charlotte NC 28255 citizens of, or permanent resident 704-683-5741 • 704-388-2746 Fax Transfer (STTR) program reserves aliens in, the U.S. • Be for-profit. a specific percentage of federal R&DBB&T Capital Partners, LLC • Principal researcher must be employed funding for award to small business and 101 N. Cherry St., Ste. 700 by the small business. non-profit research institution partners. CAPITAL Winston-Salem, NC 27101 • Company size cannot exceed 500 Central to the program is expansion of 336-733-0355 • 336-733-0349 Fax employees. the public/private sector partnership to For more information on the SBIR include the joint venture opportunitiesCapitalSouth Partners Fund, L.P. program visit www.sba.gov/sbir. 4201 Contress St., Ste. 360 for small business and the nation’s Charlotte, NC 28209 premier nonprofit research institutions. 704-376-5502 • 704-376-5877 Fax Participating Agencies Small business has long been where Each year, the following elevenFrontier Fund, L.P. innovation and innovators thrive, but federal departments and agencies are 1111 Metropolitan Ave., Ste. 1050 the risk and expense of conducting required to reserve 2.5 percent of their Charlotte, NC 28204 serious R&D efforts can be beyond extramural R&D funds for award to 704-414-2880 • 704-414-2881 FaxNorth CarolinaEconomic Opportunities Fund 4101 Lake Boone Tr. Raleigh, NC 27607 919-256-5007 • 919-256-5015 FaxPlexus Fund, L.P. 200 Providence Rd., Ste. 210 Charlotte, NC 28207 704-927-6246 • 704-927-6255 FaxSalem Halifax Capital Partners, L.P. 112 Cambridge Plaza Dr., Ste. 201 Winston-Salem, NC 27104 336-768-9343 • 336-768-6471 FaxTriangle Mezzanine Fund LLLP 3700 Glenwood Ave., Ste. 530 Raleigh, NC 27612 919-719-4788 • 919-719-4777 FaxSMALL BUSINESSINNOVATION RESEARCHPROGRAM The Small Business InnovationResearch (SBIR) program encouragessmall businesses to advance theirtechnical potential from fundscommitted by federal agencies with largeextramural research and developmentbudgets. The SBIR program servesto fund the critical startup anddevelopment stages for a technology andVisit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 23
    • the means of many small businesses. Non-profit research laboratories SURETY BOND CB Insurance, LLC (Licensed in NC) are also instrumental in developing GUARANTEE PROGRAM 1 S. Nevada Ave., Ste. 105 Colorado Springs, CO 80903 high-tech innovations, but frequently The Surety Bond Guarantee program 719-477-4278 • 719-228-1071 Fax innovation is confined to the theoretical. is a public-private partnership between Jason.yezek@centralbancorp,com STTR combines the strengths of both the federal government and surety entities by introducing entrepreneurial companies to provide small businesses CBIC - Charlotte, NC skills to high-tech research efforts. 706-1 Northeast Dr. with the bonding assistance necessary Davidson, NC 28036 The technologies and products are for them to compete for public and 704-655-9114 • 704-655-9313 Fax transferred from the laboratory to the private contracting and subcontracting Terryt@cbic.com marketplace. The small business profits opportunities. The guarantee provides from the commercialization, which, in all incentive for sureties to bond small Construction Bonds Inc. turn, stimulates the U.S. economy. (Licensed In NC) businesses that would otherwise be 1110 Herndon Pkwy., Ste. 307 unable to obtain bonding. The program Herndon, VA 20170 STTR Requirements is aimed at small businesses that lack 703-934-1000 • 703-934-1009 Fax Small businesses must meet the the working capital or performance info@sbabonds.com following eligibility criteria to participate track record necessary to secure bonding in the STTR program. Creative Insurance Concepts, Inc. on a reasonable basis through regular (Licensed In NC) • Be 51 percent owned and controlled byCAPITAL one or more individuals who are U.S. commercial channels. 7206 Hull Street Rd., Ste. 200 citizens or permanent resident aliens Through this program, the SBA Richmond, VA 23235 in the U.S. guarantees bid, payment, performance 804-674-8330 • 800-594-4522 Fax • Be for-profit. and ancillary bonds issued by surety cjreynolds@creativeic.com • Principal researcher need not be companies for individual contracts and Delmarva Surety Associates, Inc. employed by the small business. subcontracts up to $2 million. The (Licensed In NC) • Company size cannot exceed 500 2345 York Rd., Ste. 302 SBA reimburses sureties between 70 employees. (No size limit for nonprofit Timonium, MD 21093 research institution). and 90 percent of losses sustained if a 410-561-3593 • 410-561-3727 Fax The nonprofit research institution contractor defaults on the contract. lscholze@delmarvasurety.com partner must also meet certain The SBA has two program options eligibility criteria: available, the Prior Approval Program Edwards, Church & Muse, Inc. • Be located in the United States (Plan A) and the Preferred Surety Bond 4000 Park Rd. and be one of the following: Program (Plan B). In the Prior Approval Charlotte, NC 28209 • Nonprofit college or university. 704-227-3131 • 704-227-1356 Fax Program, SBA guarantees 90 percent medlin@ecmins.com • Domestic nonprofit research of surety’s paid losses and expenses on organization. • Federally funded R&D center. bonded contracts up to $100,000, and on Freedom Bonding, Inc. bonded contracts greater than $100,000 (Licensed In NC) that are awarded to socially and 5420 Klee Mill Rd., Ste. 2 Participating Agencies Sykesville, MD 21784 Each year the following five Federal economically disadvantaged concerns, 410-922-2221 • 410-922-9992 Fax departments and agencies are required HUBZone contractors, and veterans, and markcongdon@freedombondinginc.com by STTR to reserve 0.3 percent of their service-disabled veteran owned small extramural R&D funds for award to businesses. All other bonds guaranteed Insurance Source, Inc. (Licensed In NC) small business/nonprofit research in the Plan A Program receive an 80 4111 Telegraph Rd. institution partnerships: Department percent guarantee. Sureties must obtain St. Louis, MO 63129 of Defense; Department of Energy; SBA’s prior approval for each bond 314-416-2602 • 314-416-1011 Fax Department of Health and Human guarantee issued. Under Plan B, SBA marke@theinsurancesource.com Services; National Aeronautics and guarantees 70 percent, but sureties may The Surety Group Agency, LLC Space Administration; and National issue, monitor and service bonds without (Licensed In NC) Science Foundation. SBA’s prior approval. 1900 Emery St., Ste. 120 Atlanta, GA 30318 Barbour Group, LLC 404-352-8211 • 404-351-3237 Fax (Licensed In NC) kelly@suretygroup.com 20 Liberty St., Ste. 2D Westminster, MD 21157 Viking Bond Service, Inc. 410-876-9610 • 410-876-9954 Fax (Licensed In NC) info@thebarbourgroup.com 22601 North 19th Ave., Ste. 210 Phoenix, AZ 85027 Blair Insurance Services, Inc. 623-933-9334 • 623-933-9376 Fax (Licensed in NC) underwriting@vbsbond.com 1201 Logan Blvd. Altoona, PA 16602 Wells Fargo Insurance Services USA, Inc. 814-946-9486 • 888-553-0057 Fax (Licensed In NC) blairbonding@protectionadvantage.com 5755 Mark Dabling Blvd., Ste. 300 Colorado Springs, CO 80919 719-592-1177 • 719-592-0799 Fax christina.schulman@wellsfargo.com 24 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • U.S. Small Business Administration Loan Programs, Page A Information accurate as of 2/23/2012 • All SBA programs and services are provided on a nondiscriminatory basis. 7(a) Loan Program Program Maximum Use of Maturity Maximum Structure Who Qualifies Benefit to Amount Proceeds Interest Rate Borrowers Standard 7(a): $5 million to any Expansion/renovation; Depends on use of SBA sets a Must be for-profit Term loan with one Business able to Applicant applies one business, new construction, proceeds and ability maximum rate and meet SBA size payment of principal obtain financing which for business loan including affiliates purchase land or to repay. Generally for both variable standards; show and interest (P&I) otherwise would not be to lender; Lender buildings; purchase working capital and and fixed rates good character, each month. Interest provided due to term, applies to SBA equipment, fixtures, machinery & loans (discuss variable or fixedcredit, management, collateral, equity, and/or for guaranty of lease-hold improve- equipment loans with lender or and ability to repay; as negotiated with time in business. Fixed their proposed ments; working capital; have 5-10 years; must be an eligible maturity; No balloons; local SBA District lender. Cannot betype of business, No prepayment penalty loan if they inventory, business real estate is up Office for current revolving. SBA use proceeds for if maturity under 15 determine it is acquisition, startups to 25 years. Term information). charges a Guaranty eligible purpose, and years. Establish or necessary. Loan and refinancing under negotiated with Fee ** demonstrate that re-affirm business from lender, not certain conditions lender. credit is not otherwise relationship with a SBA. (discuss with lender). available. lender. CAPITAL International Same as Acquire, renovate, Same as Same as Same as Standard Same as Standard Same as Standard Trade: Long term Standard 7(a). modernize facilities Standard 7(a). Standard 7(a). 7(a). Maximum SBA 7(a) plus businesses 7(a) plus long-term financing to help or equipment used in guaranty amount for must be engaged or financing for fixed businesses making products or working capital is $4 preparing to engage assets used engaged in services to be exported, million. in international to produce products exporting or plus permanent working trade or adversely or services for export. adversely capital and refinance affected by impacted by debt not structured with competition from imports. reasonable terms. imports. Export Working Same as Short-term, Generally one year, Established Short term revolving Same as Standard Same as Standard Capital Program: Standard 7(a). working-capital for but can be up to by lender. No line of credit based 7(a) plus must 7(a) plus provides Single transaction exporters. Can be 3 years to match SBA established on borrowing have been in working capital to base or export American Exporters or Revolving single transaction or a single transaction maximums. business for at to perform on export Working Capital revolving. Standby cycle. purchase orders. least one year and Monthly interest transactions and/ lines of credit for Letters of Credit for payments; principal preparing to engage or finance export exporters. export purposes. payments based on in or increase receivables. Ability collection of foreign international trade. to financing standby letters of credit for receivables. export purposes. CAPLines: Same as Finances: seasonal Up to 10 years. Same as Revolving line of Same as Standard Same as Standard 7(a) Four different Standard 7(a). working capital needs, Standard 7(a). credit with monthly 7(a) plus a plus provides revolving Revolving Lines direct cost to interest and business that needs working capital not otherwise available of Credit, perform assignable principal payments the specialized to perform on an a/k/a Seasonal, contracts, construction based on when the proceeds this assignable contract, to Contract Builders, costs of structure for business receives program offers. cover seasonal needs, Working Capital resale, or advances the cash for doing to build or renovate against existing the activity the loan personal or commercial inventory and proceeds financed. space, and to obtain funds against existing receivables. current assets. Also structured to meet business needs. SBAExpress: $350,000. Same as a Standard Same as Standard Loans $50,000 Same as Standard Same as Same as Standard Lender approves 7(a) or may be used 7(a) for term loans, or less: 7(a) except lender Standard 7(a). 7(a) plus Streamlined Prime + 6.5%. process; Easy-to-use the loan. for a revolving working Revolving lines of has more leeway to line of credit and allows capital line of credit. credit up to 7 years. Loans over structure repayment for a revolving feature $50,000: under their own which Standard 7(a) Prime + 4.5%. rules. does not. Small Loan $250,000. Same as Same as Loans up to Same as Underserved Stream-lined application Advantage: Standard 7(a). Standard 7(a). $150,000: 85% Standard 7(a). markets. lower-dollar Loans above loans to under- $150,000: 75% served areas Rural Loan $350,000. Same as Same as Loans up to Same as Rural and small Stream-lined application Advantage: Standard 7(a). Standard 7(a). $150,000: 85% Standard 7(a). community markets Rural-based or Loans above impacted by small community $150,000: 75% population loss, lender high unemployment ** The SBA charges the lender a guaranty fee based on the loan’s maturity and the dollar amount which is initially guaranteed. The lender can pass this expense to the borrower and loan proceeds can be used to reimburse the lender. The 7(a) Guaranty Fee Reference Chart (on next page) explains the Agency’s guaranty fee charges.Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 25
    • U.S. Small Business Administration Loan Programs, Page B Information accurate as of 2/23/2012 7(a) Loans, continued Maximum Use of Maximum Benefit to Program Amount Proceeds Maturity Interest Rate Structure Who Qualifies Borrowers Export Express: $500,000. Same as SBA Express Same as Same as Same as Same as SBA Same as SBA Lender approves plus can be used SBA Express. SBA Express. SBA Express. express plus loan Express plus provides the loan. for Standby Letters proceeds must be lenders with a higher of Credit for Export used to support percentage guaranty Purposes. Debt export development which can encourage Refinance is not activity. them to make more allowed. loans to finance export development activities of small businesses. Standby Letters of Credit are also authorized. Patriot Express: $500,000. Same as Same as Same as Same as Same as Standard Same as SBA Lender approves Standard 7(a). Standard 7(a). Standard 7(a). SBA Express. 7(a) plus must be Express plus provides the loan. owned & controlled lenders with a higher by one or more of percentage of guaranty the following groups which can encourage equaling at least them to make moreCAPITAL 51% total ownership: loans to qualified veteran, active-duty businesses. military, reservist or National Guard member or spouse of any of these groups, or widowed spouse of service member or veteran who died during service or of service connected disability. Community $250,000. Same as Standard 7(a) Same as Same as Allows mission- Loan eligibility Borrowers in Advantage: except cannot be used Standard 7(a). Standard 7(a) oriented lenders requirements are underserved markets Alternative to refinance loans except allowable focused on same as for get more choices on Lenders assisting made by or guaranteed “Spread” is + 4% economic Standard 7(a) loans, the types of lenders businesses by the Dept. of over the base development but the business who can provide located in areas Agriculture or loans rate. in underserved should be located them financing if their with high needs. by SBA Micro-Lenders markets to apply for in an underserved financing needs an using their SBA 7(a) guaranty on market . SBA guaranty and the intermediary loan. loan they propose to technical assistance make to an eligible needs of the applicant small business. are assessed by the lender. Non 7(a) Loans 504 Loans: SBA portion up to For the acquisition of Either 10 or 20 year Check with local Financing from For profit businesses Fees under 3 percent; Fixed Asset $5.0 million. long-term fixed-assets, term on the SBA/ SBA District 1. The CDC that do not exceed long-term fixed rate; Project Financing refinancing long term CDC portion. Office for current Certified $15.0 million in low down payment; provided from fixed asset debt under information. Development tangible net worth full amortization; no three sources. certain conditions, and Company and do not have an balloons. working capital on a 2. Third Party average net income limited basis. Lenders over $5 million for the 3. Applicant past 2 years. Micro-Loans $50,000 total Furniture, fixtures, Shortest term Check with local Loans through Same as 7(a) – plus Direct loans from to one small supplies, inventory, possible, not to SBA District Office non- profit lending loans can be made nonprofit intermediary business equipment, and exceed 6 years. for locations of organizations; to non-profit day lenders; Fixed-rate borrower. working capital. locally available technical assistance care businesses. financing; Very intermediary also provided. small loan amounts; lenders and then Technical assistance check with them. available. Gross Size of Loan Fees Notes 7(a) Guaranty Loans of $150,000 or less (See Note 1).................................2% of guaranteed portion, Lender is authorized to retain..............Maturities that exceed 12 months $150,001 to $700,000 .............................................................3% of guaranteed portion..................................................................Maturities that exceed 12 months Fee Reference $700,001 to $5,000,000 (See Note 2) ...................................3.5% of guaranteed portion up to $1,000,000 PLUS 3.75% of......Maturities that exceed 12 months Chart the guaranteed portion over $1,000,000 Short Term Loans – up to $5 million.......................................0.25% of the guaranteed portion......................................................Maturities of 12 months or less NOTE 1: The guaranty fee on a $100,000 loan with an 85% guaranty would be 2% of $85,000 or $1,700, of which the lender would retain $425. NOTE 2: The guaranty fee on a $2,000,000 loan with a 75% guaranty ($1.5 million guaranteed portion) would be, 3.5% of $1,000,000 ($35,000) PLUS 3.75% of $500,000 ($18,750), for a total of $53,750. 26 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • TIPS FOR INTERACTING WITH YOUR CUSTOMERS SOCIAL MEDIA b. Next, make sure your target audience is on Twitter, Facebook or whatever AN ESSENTIAL PART OF YOUR social network you are considering, MARKETING TOOLKIT or you may spend a lot of time on a channel that won’t reach your target. You can do this in several ways: Social media marketing is a great tool • Survey your customers. for engaging with customers, building • Assess what your competition is your company’s brand, and increasing doing. your business reach. However, many • Get involved with social networks small business owners make the on a personal level by exploring mistake of using social media tools communities and Facebook fan pages. such as Twitter and Facebook for • Research trends in Twitter topics c. Don’t be afraid to Tweet often. simply pushing their messages out. and try to build a picture of what Anywhere between 5-10 Tweets They miss a key communications and your target market is doing and a day is your target. Also marketing opportunity by not listening sharing on social networks. remember to shake your to or joining in the conversations that message up. As every good are going on. In other words, they c. And don’t forget that while these tools marketer knows, tone and style ignore the fundamental point of social are free, your investment in them isn’t. are a huge factor in ensuring media - being SOCIAL! It takes staff time and resources to use that your message stands CAPITAL social media successfully. out, resonates, and promotes Just being on Twitter or Facebook is action. Tweeting is like not enough. It takes time and effort to 2. Use Twitter to Engage and conversation, putting out static Entice updates or statements will fall build a strong social media presence. on flat ears, but engaging, When it comes to growing your social teasing, querying, and showing media presence and seeing a return on a. Instead of simply Tweeting for Tweeting’s sake, focus on interest will promote action. So your investment it is easier said than shake your message up, use the making your Twitter strategy done. a rich and interactive words your audience uses, experience. For example, use sprinkle in some hashtags and Here’s are three hands-on tactics Tweets to start discussions go on and tease a little. that you can use. on your products, special offers and events. Engage with So, instead of saying: 1. Determine Where Your followers by responding to Customers are Online and mentions about your business; • We’re giving away 2 bagels How you Can Reach Them addressing their questions and for the price of one at inviting them to check out your BagelFest on Nov 25, 4-8 a. When considering social media as part website and so on. PM <LINK> of your overall marketing strategy, always start with asking the most b. You can track mentions of your company or products Tweet this: basic questions: • What is it you want to achieve? in other Tweets using a Twitter application such as • We know you love them! Get • Where is your audience and will they Tweetdeck or Hootsuite. 2 bagels for the price of one respond? on 11/25. Find out where <LINK> 3. Use Facebook to its Fullest Effect As with Twitter, Facebook is a great way for engaging with people who like your brand, want to interact with your business, stay abreast of latest developments, and take advantage of giveaways, contests, surveys, etc. It is also invaluable for brand exposure. While having a Facebook presence doesn’t guarantee a huge uptick in visitors to your website, using it strategically to link back to online blogs, menus, event or newsletter registration landing pages and special offers, can improve site traffic. Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 27
    • Building on SBA’s Record Year The SBA actively supports the wide diversity of small on women entrepreneurs, the faith-based community, businesses that are driving our economy forward in 2012, and veterans. The SBA’s Council on Underserved from Main Street shops, to high-growth startups, and Communities held its first meeting last summer, and the everything in between. No matter what your business, council is already developing ideas for how the SBA can you can get help from the SBA. Whether you are a small expand its reach into these communities. business owner who has worked with us before or an entrepreneur who knows nothing about what the agency The Small Business Jobs Act created an independent has to offer, there’s never been a better time to link up Office of International Trade (OIT) within the SBA with your local SBA. to support small business exporting. OIT set to work implementing the State Trade and Export Promotion Like the tools in this Resource Guide, the SBA’s (STEP) grants – also part of the Small Business Jobs accomplishments in 2011 reflect the diversity of the small Act – that gave state-based export promotion programs businesses we serve. $30 million to support small business exporting. For example, in Idaho, the grants will support a program to For example, in Fiscal Year 2011, the SBA put a record help a cluster of agricultural equipment manufacturers amount of SBA loan dollars in the hands of small business find international buyers. In Virginia, the money will go owners. The agency provided over $30 billion in lending to help advanced manufacturers and IT companies enter support to over 60,000 small businesses through its top the global supply chain. Meanwhile, North Carolina is two lending programs – 7(a) and 504. Now, SBA lending using the grant money to connect firms with trade shows, is back to where it was before the recession. That’s good trade missions, and overseas marketing opportunities and news for small businesses that need access to capital to to provide translation services for small businesses that grow and hire new workers. need a website in a different language. Exporting is an important way for small businesses to expand, and the For high-growth small businesses looking for investment SBA can help. Look for resources in this guide to learnFEATURE capital, the Small Business Investment Company (SBIC) more about how you can sell your product overseas. program had a record year, as well. SBICs are privately owned and managed investment funds that use their Finally, the SBA also aids business owners, homeowners own capital, plus funds borrowed with an SBA guarantee, and other victims of natural disasters. The SBA offers long to invest in small businesses. The SBA does not invest term, low interest loans to help disaster victims rebuild. directly into small businesses, but it provides funding to Last year, the Office of Disaster Assistance supported investment management firms with expertise in certain victims of countless disasters, including Hurricane Irene. sectors or industries. “In Fiscal Year 2011, the SBA issued The SBA approved over 13,000 disaster loans worth nearly a record $1.83 billion in new commitments to SBICs. $740 million. Of course, no small business owner wants SBICs provided $2.83 billion in financing dollars to over to be caught unprepared when disaster strikes. The SBA 1,300 small businesses, helping create or retain over 60,000 can help you get your business ready for whatever comes jobs —all at zero cost to taxpayers.” your way. At the same time, more small businesses are competing As you can see from this article and the rest of this for and winning government contracts. Last year, guide, the SBA has a wide variety of tools no matter the SBA’s most recent “Score Card” showed that the what your business needs. In the following pages, you federal government awarded 22.7% of contracts to small can read about how the SBA has helped businesses businesses in 2010. This is the second year of increase through access to capital, opportunities in government after four years of decline. While this is good news, contracting, counseling, and more. You can also find the SBA will not rest until the government meets its contact information for our 68 district offices on the inside goal of awarding 23% of contracts to small businesses. back cover, where trained professionals can walk you Government contracts are the oxygen that many small through getting a loan, competing for contracts, or finding businesses need to survive, and the SBA is committed to a business counselor. helping more small businesses win more contracts in 2012. If you don’t find what you’re looking for here, there is The SBA worked hard last year to put more tools in the even more information on the agency’s newly redesigned hands of entrepreneurs in underserved markets. For website, www.SBA.gov. While you’re there, check out example, the Young Entrepreneurs Series visited five cities SBA Direct, which presents a customized list of resources where young people are starting businesses and creating in your area based on information you enter about your the jobs of the future. The SBA also held forums focused business. 28 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • CONTRACTING Applying for Government Contracts The U.S. government is the largest The first method, sealed bidding, Some contracts do not fit neatlysingle purchaser of goods and services involves issuing an invitation for bid by into these two categories, such asin the world, buying everything from a procuring agency. Under the sealed time and material contracts (prices forarmored tanks to paper clips. Every bidding method, a contract is awarded to hourly wages are fixed but the hoursyear, the federal government awards a responsible bidder who bid, conforming are estimated) and letter contractsmore than $500 billion in contracts, and to the invitation for bids, will be most (authorizes a contractor to begin worka significant share of those contracts are advantageous to the Government, on an urgent requirement).specifically allotted to small businesses. considering only price and the price The Small Business Administration related factors included in the invitation Small Business Set-Asides CONTRACTINGworks with agencies to award at least for bid. The second method, negotiation, A “set-aside” for small businesses23 percent of all prime government involves issuing a request for proposal reserves an acquisition exclusively forcontracts to small businesses, with (RFP) or request for quotation (RFQ). small business participation. Therespecific statutory goals for small The business with the best proposal in are two ways in which set-asides can terms of technical content, best value, be determined. First, if an acquisitiondisadvantaged businesses (SDV), price and other factors generally wins of goods or services has an anticipatedbusinesses that are women-owned the contract. dollar value of at least $3,000 but not(WO) or service-disabled veteran-owned exceeding $150,000, it is automatically(SDVOSB), or businesses that are reserved for small businesses. Thelocated in historically underutilized Types of Contracts Firm fixed price contracts place the acquisition will be set aside only if thebusiness zones (HUBZone). contracting officer determines there The agency ensures that small full responsibility for the costs and risk of loss on the contractor. Firm fixed price are two or more responsible smallbusinesses have access to long-lasting businesses that are competitive indevelopment opportunities, which contracts do not permit any adjustment on the basis of the contractor’s costs terms of market prices, quality andmeans working with small businesses delivery. Second, if an acquisition ofto help them stay competitive, as during the performance of the contract. It provides maximum incentive for the goods or services is more than $150,000,well as encouraging federal agencies and if it’s likely offers will be obtainedto award more contracts to small contractor to control costs and perform effectively and imposes a minimum from at least two responsible smallbusinesses. The SBA features outreach businesses, and if awards will be made administrative burden upon theprograms, matchmaking events, and at fair market prices, the acquisition contracting parties. This type of contractonline training opportunities; and helps is reserved for exclusively for small is used in all sealed bid and someagencies identify opportunities for small business. Reasonable expectations of negotiated procurements.businesses. Cost reimbursement contracts provide small business competition may be for the payment of allowable costs evaluated using past acquisition historyHOW GOVERNMENT incurred by the contractor, to the extent of an item or similar items. There are several exceptions andCONTRACTING WORKS stated in the contract. The contract establishes a ceiling price, above which unique rules for specific kinds of small businesses and industries. For RearchSealed bidding vs. Negotiation a contractor may not exceed without the and Development (R&D) small business There are two methods the approval of the contracting officer. Cost reimbursement contracts are used in set-asides, there must be reasonablegovernment uses to purchase goods and expectation of obtaining from smallservices, sealed bidding and negotiation. research and development contracts. businesses the best scientific andVisit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 29
    • technological sources consistent with the HUBZone program also establishes • It must be a small business by SBA demands of the proposed acquisition. preference for award of federal contracts size standards; For small business set-asides other to small businesses in these areas. To • It must be owned (at least 51 percent) than for construction services, any qualify for the program, a business by one or more individuals who business proposing to furnish a product (except those that are tribally-owned) qualify as socially and economically that it did not manufacture must must meet the following criteria: disadvantaged, and who are US furnish the product of a small business • It must be a small business by SBA size citizens of good character; manufacturer unless the SBA has standards • It must be controlled, managed, and granted either a waiver or exception to • It must be owned and controlled at operated by one or more individuals this requirement. In industries where least 51 percent by U.S. citizens, or a who qualify as disadvantaged, and; the SBA finds that there are no small Community Development Corporation • It must demonstrate potential for success (generally by being in business business manufacturers, it may issue (CDC), an agricultural cooperative, or an Indian tribe for at least two full years) before a waiver to the non-manufacturer rule. • Its principal office must be located applying. Waivers permit small businesses to provide any domestic firm’s product. within a “Historically Underutilized Socially disadvantaged individuals Business Zone,” which includes lands are those who have been subjected to Subcontracting considered “Indian Country” and racial or ethnic prejudice or cultural Subcontracting opportunities are military facilities closed by the Base bias because of their identity as a a great resource for small businesses, Realignment and Closure Act member of a group without regard especially to those not ready to bid as • At least 35 percent of its employees to their individual capabilities. The prime contractors. Experience gained must reside in a HUBZone. following individuals are presumed from subcontracting with a federal Existing businesses that choose to to be socially disadvantaged: Black prime contractor can better prepare move to qualified areas are eligible Americans, Native Americans, Alaska businesses to bid for prime contracts. to apply for certification. To fulfill Natives or Native Hawaiians, Hispanic Current regulations stipulate for the requirement that 35 percent of a Americans, Asian Pacific Americans, contracts offering subcontracting and Subcontinent Asian Americans. An HUBZone firm’s employees reside in opportunities over $650,000 for goods individual who is not a member of one of a HUBZone, employees must live in a these groups must establish individual and services, or $1.5 million for primary residence at a place for at least construction, large business prime social disadvantage by a preponderance 180 days, or as a currently registered of evidence. Economically disadvantaged contractors must offer maximum voter, and with intent to live there individuals are socially disadvantaged practicable subcontracting opportunities to small businesses. Large business indefinitely. individuals whose ability to compete prime contractors must submit a SBA is responsible for: in the free-enterprise system has been subcontracting plan describing how they • Determining whether or not individual impaired due to diminished capital will successfully subcontract to small concerns are qualified HUBZone small and credit opportunities as compared business concerns; to others in the same or similar businesses. • Maintaining a list of qualified HUBZone line of business who are not socially To find subcontracting opportunities,CONTRACTING small business concerns for use by disadvantaged. a list of Federal prime solicitations are acquisition agencies in awarding listed under the U.S. Small Business Firms owned by Alaska Native contracts under the program; Corporations, Indian Tribes, Native Administration Subcontracting Network • Adjudicating protests and appeals of (SUBNET) http://web.sba.gov/subnet/ Hawaiian Organizations, and eligibility to receive HUBZone contracts. Community Development Corporations search/index.cfm and www.gsa.gov/ For additional information, visit can also apply to the SBA for 8(a) portal/content/101195 General Services www.sba.gov/hubzone. business development assistance. Administration (GSA). Research the So that approved firms can obtain list of prime contractors and determine which are best suited for your business. 8(a) BUSINESS DEVELOPMENT training, counseling, and business development assistance, SBA designates Develop a marketing strategy, and then PROGRAM a staff person at a local SBA District contact the Small Business Liaison Office, geographically near the business. The 8(a) Business Development Officer (SBLO) listed for each prime to SBA is responsible for: program is a nine year program schedule an appointment. • Determining whether a business established to assist eligible socially and economically disadvantaged individuals qualifies for the 8(a) Business SBA CONTRACTING develop and grow their businesses. Development program • Determining whether a business PROGRAMS Business development assistance includes one-to-one counseling, training continues to qualify, during the nine- HUBZONE workshops, and other management and technical guidance. There is a statutory year term. • Approving Mentor/Protégé agreements The Historically Underutilized between 8(a) firms and large businesses. requirement that small disadvantaged Business Zones (HUBZone) program For additional information, visit business concerns be awarded not less helps small businesses located in www.sba.gov/8a. than 5 percent of the total value of all distressed urban and rural communities, prime contract awards. All firms that gain access to federal set-aside contracts and sole source contracts, as well as a become eligible for SBA’s 8(a) business SMALL DISADVANTAGED price evaluation preference in full and development assistance are also considered small disadvantaged business BUSINESS open contract competitions. There is a A Small Disadvantaged Business concerns for federal contracting. statutory requirement that HUBZone (SDB) is defined as a small business To be eligible for the 8(a) Business small business concerns be awarded not that is at least 51 percent owned and Development program, a business must less than 3 percent of the total value controlled by one or more individuals meet the following criteria: of all prime contract awards. The 30 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • who are socially and economically federal contracts for eligible women- contracting-opportunities-women-owned-disadvantaged. owned businesses and economically small-businesses. There is a federal government-wide disadvantaged women-owned small Large prime contractors must alsogoal of awarding at least 5 percent of businesses. establish a subcontracting goal forprime contracting dollars to SDBs each To be eligible, a firm must be at least Woman-Owned Small Businesses inyear. Large prime contractors must also 51 percent owned or controlled by one their Subcontracting Plans. Theseestablish a subcontracting goal for SDBs or more women. The women must be subcontracting goals are reviewed atin their Subcontracting Plans. U.S. citizens. The firm must be “small” time of proposal by both the contracting Firms self-certify as SDB without in its primary industry in accordance officer and SBA prior to the award of asubmitting any application to SBA; with SBA’s size standards for that contract.however, firms approved by SBA into industry. To be deemed “economicallythe 8(a) Business Development program disadvantaged” its owners mustare automatically certified as an SDB. demonstrate economic disadvantage inTo self-certify, firms should update their accordance with the requirements setCCR profiles and update their ORCA forth in the final rule. For additionalprofiles, making sure that both profiles information, visit www.sba.gov/content/reflect their SDB status.SERVICE-DISABLED VETERAN-OWNED SMALL BUSINESS WHAT YOU SHOULD KNOW ABOUT The Service-Disabled Veteran-Owned Small Business (SDVOSB)program has a federal government-wide YOUR BUSINESSgoal of awarding at least 3 percent To be eligible to bid on a federal 3. Do you fall under a specificof prime and subcontracting dollars contract, you must know your certification?to Service-Disabled Veteran-Owned business. Answer the following three Under the umbrella of “smallSmall Businesses each year. Large questions: business,” SBA has outlined severalprime contractors must also establish a specific certifications that businessessubcontracting goal for Veteran- 1. Are you a small business? may fall under. These certifications areOwned Small Businesses in their Is your small business: divided into two categories: • Organized for profit?Subcontracting Plans. These • Located in the U.S.? SBA-Certified and Self-Certified.subcontracting goals are reviewed at • Operated primarily within the U.S. ortime of proposal by both the contracting The SBA-Certified Programs were making a significant contribution to created to assist specific businessesofficer and SBA prior to the award of a the U.S. economy through paymentcontract. in securing federal contracts and of taxes or use of American products, CONTRACTING The SDVOSB Protest is administered materials, or labor? therefore can only be issued by SBAby SBA to ensure that only businesses • Independently owned and operated? administrators. For the Self-Certified • Not dominant in the field of operation Programs, you can determine forowned by service-disabled veterans in which it is bidding for government yourself if your business meets thereceive contracts reserved exclusively contracts? requirements by referring to thefor them. When a business’s SDVOSB • A sole proprietorship, partnership, Federal Acquisition Regulations (FAR).self-certification is challenged, SBA corporation, or any other legal form? Just as Congress has givendetermines if the business meets If the first six criteria apply to your federal agencies a goal of procuringthe status, ownership, and control business, ask yourself the second 23 percent of federal contracts fromrequirements. important question to find out if small businesses, so too must federal To determine your eligibility, your business meets size standard agencies meet specific contractingcontact your local veterans’ business requirements. goals for other categories of smalldevelopment officer, visit the firms. These goals are:various program websites, or contact 2. What is the size standard for your • 23 percent of contracts from SmallSBA’s Office of Veterans Business business? BusinessesDevelopment at www.sba.gov/about- Size standards are used to • 5 percent of contracts go to Smalloffices-content/1/2985. determine whether a business is small Disadvantaged Businesses or “other than small.” Size standards • 5 percent go to Women-Owned Small vary depending upon the industry. To BusinessesWOMEN-OWNED determine the size standard for your • 3 percent go to Service-DisabledSMALL BUSINESS business, you will need a NAICS code. Veteran-Owned Small Businesses • 3 percent go to HUBZone SmallFEDERAL CONTRACT PROGRAM Every federal agency uses these codes when considering your business. To Businesses On October 7, 2010, the SBA Federal agencies have a strong determine your NAICS code, go topublished a final rule effective February incentive to fulfill these contracting www.census.gov/eos/www/naics/. Some goals. You should apply for those4, 2011, aimed at expanding federal SBA programs require their own SBA-Certified and Self-Certifiedcontracting opportunities for women- unique size standards. To find out programs for which you qualify to takeowned small businesses. The Women-Owned Small Business (WOSB) more about these requirements and advantage of contracting opportunities.Federal Contract program authorizes other size standard information, go tocontracting officers to set aside certain www.sba.gov/size.Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 31
    • GETTING STARTED IN CONTRACTING Once you have identified the the database for prospective vendors. The of government. Businesses interested in important information regarding your CCR is at www.ccr.gov. becoming GSA schedule contractors business, it is time to start the process of After completing registration, you will should review the information available procuring a government contract. be asked to enter your small business at www.gsa.gov/schedules. 1. Identify your DUNS (Data Universal profile information through the SBA 8. ake Sure Your Business is M Numbering System) Number Supplemental Page. The information Financially Sound To register your business, obtain a will be displayed in the Dynamic Small This critical step is absolutely necessary DUNS number used to identify and track Business Search. to make sure that your business is millions of businesses. You can Creating a profile in CCR and keeping financially prepared for the journey ahead. Even if you are able to obtain a obtain your free DUNS number when it current ensures your firm has access registering with the CCR (Central government contract, you will not be to federal contracting opportunities. Contractor Registration) at www.ccr.gov receiving all of the money at once. It Entering your small business profile, helps to have a clear plan of how your or by contacting Dun & Bradstreet at including your business information and www.dnb.com. business will stage the benefits of the key word description, allows contracting contract. 2. Identify your EIN officers, prime contractors, and buyers (Employer Identification Number) 9. earch Federal Business Opportunities S from state and local governments to (FedBizOpps) for Contracting An EIN, otherwise known as a federal tax learn about your company. Opportunities identification number, is generally 6. Use ORCA (Online Representations FedBizOpps, is an online service operated required of all businesses. For more and Certifications Application) by the federal government that information, go to www.irs.gov. Prospective contractors must complete 3. dentify your NAICS (North American I announces available business (electronically or through submission of opportunities. FedBizOpps helps identify Industry Classification) codes paperwork) representations and The NAICS codes are used to classify the the needs of federal agencies and certifications for small business size and available contracting opportunities. industry a particular business occupies. program status as part of the process You will need at least one NAICS code to To begin searching for contracting that registers the business for federal opportunities, go to www.fbo.gov. complete your registration, but be sure to contracting opportunities. To make this list as many as apply. You may also add 10. Marketing Your Business process easier for everyone involved, the Registering your business is not enough or change NAICS codes at any time. Visit government developed ORCA, where www.census.gov/eos/www/naics/ to find to obtain a federal contract; you will need generally, businesses can complete all of to market your business to attract federal NAICS codes. the paperwork online. To begin this 4. dentify your SIC (Standard Industrial I agencies. Tips for good marketing are: process, first register your firm in CCR, • Determine which federal agencies Classification) codes then go to www.orca.bpn.gov. The SIC codes are four-digit numbers buy your product or service, and 7. Register with the GSA Schedule get to know them; that are used to classify the industry a The GSA (General ServicesCONTRACTING particular business occupies. While • Identify the contracting Administration) Multiple Award Schedule procedures of those agencies; NAICS codes have largely replaced SIC (aka Federal Supply Schedule) is used by codes, you will still need to provide your • Focus on opportunities in your GSA to establish long-term, government niche and prioritize them. SIC code. SIC codes can be found at wide contracts with commercial firms. www.osha.gov/pls/imis/sicsearch.html. Although not required, you may Once these contracts are established, 5. egister with the CCR (Central R want to obtain a PSC (Product Services government agencies can order the Contractor Registration) supplies and services they need directly Code) and/or a FSC (Federal Supply The CCR is an online federal from the firms through the use of an Classification). These codes provide government maintained database of online shopping tool. Becoming a GSA additional information about the companies wanting to do business with schedule contractor increases your services and products your business the federal government. Agencies search opportunity for contracts across all levels offers. ADDITIONAL PROCUREMENT RESOURCES The following federal procurement • Procurement Center Representatives • Department of Defense (The DoD is resources may also be of assistance: (PCR) and Commercial Marketing the largest purchaser of goods from • The Certificates of Competency (CoC) Representatives (CMR): PCRs work small businesses): program allows a small business, to increase the small business share www.acq.osd.mil/osbp/ which is the apparent successful of federal procurement awards. • Office of Federal Procurement Policy: offeror, to appeal a contracting officer’s CMRs offer many services to small www.whitehouse.gov/omb/procurement_ businesses, including counseling on default non-responsibility determination that how to obtain subcontracts. To find a • Acquisition Forecast: it is unable to fulfill the requirements PCR or CMR near you, go to of a specific government contract. The www.acquisition.gov/comp/procurement www.sba.gov/content/procurement-center- SBA will conduct a detailed review _forecasts/index.html representatives. of the firm’s technical and financial • Federal Supply Schedule (FSS): • PTACs (Procurement Technical capabilities to perform on the contract. Assistance Centers): PTACs provide www.gsa.gov If the business demonstrates the assistance to businesses that want to • GSA Center for Acquisition Excellence: capability to perform, the SBA issues sell products and services to federal, www.gsa.gov/portal/content/103487 a Certificate of Competency to the state, and/or local government. To contracting officer, requiring award of find a PTAC in your state, go to that contract to the small business. www.dla.mil/SmallBusiness/Pages/ptap.aspx. 32 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • SBA DISASTER ASSISTANCE Knowing the Types of Assistance Available for RecoveryT he Disaster Assistance Military Reservist Economic Injury The page provides links to resources Program is SBA’s largest Disaster Loans (MREIDLs) are working to help you put together your own direct loan program, and capital loans for small businesses emergency plan, preparedness tips, the only form of SBA adversely affected when an essential and fact sheets about SBA recovery assistance not limited to employee is called up to active duty assistance for homeowners, renters,small businesses. SBA is responsible by the National Guard or Reserves. businesses of all sizes and private,for providing affordable, timely and An “essential employee” is defined nonprofit organizations.accessible financial assistance to as an individual (whether or not the Additionally, to help small businesseshomeowners, renters, businesses of all owner of the small business) whose with their preparedness planning, SBAsizes and private, nonprofit organizations managerial or technical skill is critical has teamed up with Agility Recoveryfollowing declared disasters. By law, to the successfully daily operation Solutions to offer business continuitygovernmental units and agricultural of the business. The loan limit is $2 strategies for entrepreneurs via theirenterprises are ineligible. million, and the funds may be used to “PrepareMyBusiness” website. In The SBA offers two types of disaster pay necessary operating expenses as addition to offering practical disasterloans — Physical and Economic Injury they mature until operations return to preparedness tips, Agility is the co-hostDisaster Loans. normal after the essential employee is (with SBA) of a monthly disaster Home Physical Disaster Loans up released from active military duty. The planning webinar for business owners.to $200,000 are available to eligible MREIDLs cannot be used to replace lost Previous webinar topics have includedhomeowners to repair or replace to profits. discussions on crisis communications,its pre-disaster condition damaged or For all disaster loans, SBA can only testing your recovery plan, and usingdestroyed real estate not fully covered approve loans to applicants having a social media to enhance businessby insurance. Renters and homeowners credit history acceptable to SBA and recovery. Visit www.preparemybusiness.orgalike may borrow up to $40,000 to repair who also show the ability to repay the to get the schedule for future webinars,or replace clothing, furniture, cars, loans. The loan terms are established view archived webinars, and for moreappliances, etc., that was damaged or in accordance with the borrower’s repayment ability. The law gives SBA disaster planning tips.destroyed in the disaster. As small businesses are leading several powerful tools to make disaster Business Physical Disaster Loans up America’s economic recovery, many of loans affordable: low-interest ratesto $2 million are available to qualified them are investing time and money (around 4 percent), long-terms (up tobusinesses or private, nonprofit into their plans to grow and create 30 years), and refinancing of prior liensorganizations of any size to help (in some cases). As required by law, jobs. Developing a strong disasterrestore or replace damaged real estate, the interest rate for each loan is based preparedness plan should be a criticalinventory, machinery, equipment and on SBA’s determination of whether the and integral piece of those efforts.other business assets to its pre-disaster applicant has credit available elsewhere Planning for a disaster is the best way ofcondition. (the ability to borrow or use their own limiting its effects. The SBA can also lend additional resources to recover after the disaster).funds to homeowners and businesses More information on all of SBA’s Additional Resourcesto help with the cost of making disaster assistance programs, including The SBA has partnered with theimprovements that protect, prevent information for military reservists, is American Red Cross to increaseor minimize the same type of disaster available at www.sba.gov/disaster. awareness in the business community DISASTERdamage from occurring again. about the Red Cross Ready Rating™ Economic Injury Disaster Loans Disaster Preparedness program. Ready Rating™ is a free,(EIDLs) are working capital loans For small businesses, surviving a self-paced, web-based membershipavailable to qualified small businesses, disaster doesn’t begin with clearing the program that helps a business measureprivate nonprofit organizations of all debris and returning to work. its ability to deal with emergencies, andsizes and small agricultural cooperatives With proper planning, surviving gives customized feedback on how tothat suffered financial losses because begins long before the disaster strikes— improve those efforts. Visitof the disaster, regardless of physical or before active-duty orders are received. www.readyrating.org.damage. The SBA can loan up to $2 Your planning should include insurance Additional information on developingmillion to provide the necessary working coverage, emergency power, protection an emergency plan is available at thecapital to help small businesses pay fixed of company records, fire safety, medical federal government’s preparednessdebts, payroll, accounts payable and emergencies, taking care of your website www.ready.gov.other bills that could have been covered employees and continuity planning – The Institute for Business and Homehad the disaster not occurred. The loan how your business will continue during Safety (www.disastersafety.org ) has usefulis not intended to replace lost sales or and after the emergency or disaster. tips on protecting your home or business.profits. The combined limit for economic Starting is as easy as clicking on theinjury and physical damage assistance disaster preparedness page of SBA’sfor businesses is $2 million. website at www.sba.gov/content/disaster- preparedness.Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 33
    • ADVOCACY AND OMBUDSMAN Watching out for small business interests OFFICE OF ADVOCACYADVOCACY AND OMBUDSMAN nonprofit organizations), and consider owners, nonprofit organizations and regulatory alternatives that minimize small government entities. Comments The SBA’s Office of Advocacy, the the economic burden on small entities. are forwarded to federal agencies for “small business watchdog” of the Advocacy’s mission is enhanced by review, and in some cases fines may government, examines the role and a team of regional advocates, located be lowered or eliminated and decisions status of small business in the economy in the SBA’s 10 regions. They are changed in favor of the small business and independently represents the Advocacy’s direct link to small business owners. Each year the National views of small business to federal owners, state and local government agencies, Congress, the President and Ombudsman files a report with the entities, and organizations that U.S. Congress on the responsiveness federal appellate courts as friends support the interests of small entities. of the court. Advocacy compiles and of federal agencies regarding their The regional advocates help identify interprets statistics on small business actions of regulatory and compliance regulatory concerns of small business and is the primary entity within the enforcement on small businesses. by monitoring the impact of federal and federal government to disseminate small state policies at the grassroots level. To request help, send the National business data. Learn more about the Office of Ombudsman a complete Federal Agency Headed by the Chief Counsel for Advocacy at www.sba.gov/advocacy. Comment Form. You may do this Advocacy, the office also funds outside online at www.sba.gov/ombudsman; by OFFICE OF THE NATIONAL research of small business issues fax at 202-481-5719; or by mail at 409 and produces numerous publications Third Street S.W., Mail Code 2120, to inform policy makers about the important role of small business OMBUDSMAN Washington, DC 20416. If excessive fines, penalties or The Ombudsman also coordinates in the economy and the impact of 10 Regional Regulatory Fairness government policies on small business. unfair regulatory enforcement by federal agencies are problems for your Boards which meet regularly to receive In addition, the office monitors federal comments about federal regulations agency compliance with the Regulatory small business, you have a voice in Washington, D.C., through the SBA’s affecting small businesses. Flexibility Act – the law that requires Learn more about the National agencies to analyze the impact of their Office of the National Ombudsman. The Ombudsman receives Ombudsman at www.sba.gov/ombudsman proposed regulations on small entities (including small businesses, small comments regarding federal regulatory or call 888-REG-FAIR. governmental jurisdictions and small enforcement from small business 34 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • ADDITIONAL RESOURCES Taking care of start up logistics of the most common types is product liability, which may be incurred when a customer suffers harm from using the business product. There are many other types of liability, which are frequently related to specific industries. Liability law is constantly changing. An analysis of your liability insurance needs by a competent professional is vital in determining an adequate and appropriate level of protection for your business. Property – There are many different types of property insurance and levels of coverage available. It is importantE to determine the property you need to insure for the continuation of your ven if you are running a The Business Servicenter provides business and the level of insurance small home-based business, information to entrepreneurs and existing business owners on services, programs, you need to replace or rebuild. You you will have to comply with resources, licenses and regulatory must also understand the terms of the many of the local, state, and requirements relating to start up and insurance, including any limitations or federal regulations. Avoid existing businesses in North Carolina. waivers of coverage.the temptation to ignore regulatory The center provides one-on-one telephone Business Interruption – Whiledetails. Doing so may avert some red consultations, business structure forms, and property insurance may pay enoughtape in the short term, but could be identifies local, regional and federal business to replace damaged or destroyedan obstacle as your business grows. resources. The center’s resources include: equipment or buildings, how will youTaking the time to research the general information on licensing pay costs such as taxes, utilities andapplicable regulations is as important requirements, registering trade marks, other continuing expenses during theas knowing your market. Bear in mind business name registration, taxes and period between when the damagethat regulations vary by industry. If employer requirements. In addition, the occurs and when the property isyou’re in the food-service business, for center provides assistance with “where to go replaced? Business Interruption (orexample, you will have to deal with the for what” for new and existing businesses. “business income”) insurance canhealth department. If you use chemical www.blnc.gov. provide sufficient funds to pay yoursolvents, you will have environmental FICTITIOUS BUSINESS NAME fixed expenses during a period of timecompliances to meet. Carefully when your business is not operational.investigate the regulations that affect Registering your business name, “Key Man” – If you (and/or anyyour industry. Being out of compliance after doing a search to make sure that other individual) are so critical tocould leave you unprotected legally, it is not already in use, protects you the operation of your business that itlead to expensive penalties and from others who might want to use cannot continue in the event of yourjeopardize your business. the same name. For more information, illness or death, you should consider contact the county clerk’s office in the “key man” insurance. This type ofBUSINESS LICENSES county where your business is based. policy is frequently required by banks There are many types of licenses, If you are a corporation, you’ll need to or government loan programs. It alsoboth state and local as well as check with the state. can be used to provide continuity in operations during a period of ADDITIONAL RESOURCESprofessional. Depending on what youdo and where you plan to operate, BUSINESS INSURANCE ownership transition caused by theyour business may be required to Like home insurance, business death, incapacitation or absence duehave various state and/or municipal insurance protects your business against to a Title 10 military activation of anlicenses, certificates or permits. fire, theft and other losses. Contact your owner or other “key” employee. Licenses are typically administered insurance agent or broker. It is prudent Automobile – It is obvious thatby a variety of state and local for any business to purchase a number a vehicle owned by your businessdepartments. Consult your state or of basic types of insurance. Some types should be insured for both liabilitylocal government for assistance. of coverage are required by law, other and replacement purposes. What isBusiness Link North Carolina simply make good business sense. The less obvious is that you may need North Carolina Department of Commerce types of insurance listed below are special insurance (called “non-owned 301 N. Wilmington St. among the most commonly used and are automobile coverage”) if you use your 4344 Mail Service Center merely a starting point for evaluating personal vehicle on company business. Raleigh, NC 27699-4344 the needs of your business. This policy covers the business’ 919-807-4280 or 800-228-8443 liability for any damage which may www.blnc.gov Liability Insurance – Businesses may incur various forms of liability in result for such usage. conducting their normal activities. OneVisit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 35
    • It requires you to charge sales tax to your customers, which you are responsible for remitting to the state. You will have to pay penalties if it is found that you should have been taxing your products and now owe back taxes to the state. For information on sales tax issues, contact your state’s government. FEDERAL INCOME TAX Like the state income tax, the method of paying federal income taxes depends upon your legal form of business. Sole Proprietorship: You must file IRS Federal Form Schedule C along with your personal Federal Income Tax return (Form 1040) and any other applicable forms pertaining to gains or losses in your business activity. Partnership: You must file a Federal Partnership return (Form 1065). This is merely informational to show gross and net earnings of profit and loss. Also, Officer and Director – Under most state laws, officers and directors of a FEDERAL PAYROLL TAX each partner must report his share of corporation may become personally (EIN NUMBERS) partnership earnings on his individual Form 1040 based on the information liable for their actions on behalf of the An Employer Identification Number from the K-1 filed with the Form 1065. company. This type of policy covers (EIN), also known as a Federal Corporation: You must file a Federal this liability. Employer Identification Number Corporation Income Tax return (Form Home Office – If you are (FEIN), is used to identify a business 1120). You will also be required to report establishing an office in your home, entity. Generally, businesses need an it is a good idea to contact your EIN to pay federal withholding tax. your earnings from the corporation homeowners’ insurance company to You may apply for an EIN in various including salary and other income such update your policy to include coverage ways, one of which is to apply online. as dividends on your personal federal for office equipment. This coverage www.irs.gov/businesses/small/article/0,,id= income tax return (Form 1040). is not automatically included in a 102767,00.html. This is a free service standard homeowner’s policy. offered by the Internal Revenue Service. FEDERAL PAYROLL TAX Call 800-829-1040 if you have Federal Withholding Tax: Any TAXES questions. You must check with your state to determine if you need a state business employing a person must Taxes are an important and complex register with the IRS and acquire an number or charter. aspect of owning and operating a EIN and pay federal withholding tax at successful business. Your accountant, least quarterly. File Form SS-4 with the payroll person, or tax advisor may be FEDERAL IRS to obtain your number and required very knowledgeable, but there are still many facets of tax law that you should SELF-EMPLOYMENT TAX tax forms. Call 800-829-3676 or 800-829-1040 if you have questions. know. The Internal Revenue Service is Every employee must pay Social Security and Medicare coverage. If you a great source for tax information. Small Business/Self-Employed Tax are self-employed, your contributions IRS WEB PRODUCTS FOR SMALL BUSINESSESADDITIONAL RESOURCES are made through the self-employment Center: www.irs.gov/businesses/small/ tax. index.html. For the most timely and up-to-date The IRS has publications, counselors When you are running a business, and workshops available to help you tax information, go to www.irs.gov/ you don’t need to be a tax expert. sort it out. For more information, businesses/small/index.html. However, you do need some tax basics. contact the IRS at 800-829-1040 or IRS Small Business/Self-Employed Tax Center gives you the information www.irs.gov. VIRTUAL SMALL BUSINESS you need to stay tax compliant so your WORKSHOP business can thrive. SALES TAX EXEMPTION www.tax.gov/virtualworkshop/ Small Business Forms and CERTIFICATE The Virtual Small Business Tax Publications www.irs.gov/businesses/small If you plan to sell products, you Workshop is the first of a series of /article/0,,id= 99200,00.html will need a Sales Tax Exemption video products designed exclusively Download multiple small business Certificate. It allows you to purchase for small business taxpayers. This and self-employed forms and inventory, or materials, which will workshop helps business owners publications. become part of the product you sell, understand federal tax obligations. from suppliers without paying taxes. The Virtual Small Business Workshop 36 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • is available on CD www.irs.gov/ on the check as a detachable portion live assistance through the Employerbusinesses/small/article/0,,id= or in the form of an envelope with the Hotline. For forms call 800-870-3676, for101169,00.htm and online items printed and spaces for dollar the Employer Hotline call 800-357-2099.www.irsvideos.gov/virtualworkshop/ if you deductions to be filled in.are unable to attend a workshop in E-Verify: Employment Eligibilityperson. Small business workshops aredesigned to help the small business EMPLOYEE CONSIDERATIONS Verification E-Verify, operated by the Departmentowner understand and fulfill their Taxes of Homeland Security in partnershipfederal tax responsibilities. Workshops If you have any employees, including with the Social Security Administration,are sponsored and presented by officers of a corporation but not the sole is the best--and quickest--way forIRS partners who are federal tax proprietor or partners, you must make employers to determine the employmentspecialists. periodic payments towards, and/or file eligibility of new hires. It is a safe, Workshop topics vary from a quarterly reports about payroll taxes simple, and secure Internet-basedgeneral overview of taxes to more and other mandatory deductions. You system that electronically verifies thespecific topics such as recordkeeping may contact these government agencies Social Security number and employmentand retirement plans. Although for information, assistance and forms. eligibility information reported on Formmost are free, some workshops have Social Security Administration I-9. E-Verify is voluntary in most statesfees associated with them. Fees 800-772-1213 www.ssa.gov and there is no charge to use it.for a workshop are charged by the If you are an employer or employeesponsoring organization, not the IRS. and would like more information about The IRS’s Virtual Small Business Social Security’s Business Services the E-Verify program, please visitTax Workshop is an interactive Online www.dhs.gov/E-Verify or contact ourresource to help small business owners The Social Security Administration now provides free electronic services Customer Support staff: 1-888-464-4218learn about their federal tax rights Monday – Friday 8 am – 5 pm.and responsibilities. This educational online at www.socialsecurity.gov/employer/. Once registered for Business Services E-mail: e-verify@dhs.govproduct, available online and on CD Online, business owners or theirconsists of nine stand-alone lessonsthat can be selected and viewed in authorized representative can: SAFETY AND HEALTHany sequence. A bookmark feature • file W-2s online; and • verify Social Security Numbers REGULATIONSmakes it possible to leave and return through the Social Security Number All businesses with employeesto a specific point within the lesson. Verification Service, used for all are required to comply with stateUsers also have access to a list of employees prior to preparing and and federal regulations regarding submitting Forms W-2.useful online references that enhance the protection of employees. The Federal Withholdingthe learning experience by allowing U.S. Internal Revenue Service Occupational Safety and Healththem to view references and the video 800-829-1040 Administration outlines specific healthlessons simultaneously. www.irs.gov and safety standards adopted by the Tax Calendar for Small Businesses U.S. Department of Labor.and Self-Employed (Publication 1518) Health Insurancewww.irs.gov/businesses/small/article/0,,id=176080,00.html Compare plans in your area at www.healthcare.gov. BUILDING CODES, The Tax Calendar for Small PERMITS AND ZONINGBusinesses and Self-Employed Employee Insurance It is important to consider zoningcontains useful information on general If you hire employees you may be regulations when choosing a site for your required to provide unemployment orbusiness taxes, IRS and SSA customer business. You may not be permitted to workers’ compensation insurance.assistance, electronic filing and paying conduct business out of your home oroptions, retirement plans, business engage in industrial activity in a retailpublications and forms, common tax WORKPLACE DISABILITY district. Contact the business licensefiling dates, and federal legal holidays. PROGRAMS office in the city or town where the ADDITIONAL RESOURCES Americans with Disabilities Act business is located.SOCIAL SECURITY CARDS (ADA): For assistance with the ADA, call All employees must have a social 800-669-3362 or visit www.ada.gov. BAR CODINGsecurity card. It must be signed by its U.S. CITIZENSHIP AND Many stores require bar coding onowner, and you should always ask to packaged products. Many industrialsee and personally record the social IMMIGRATION SERVICES and manufacturing companies use barsecurity number. Failure to do so may The Federal Immigration Reform and coding to identify items they receive andcause your employee to lose benefits and Control Act of 1986 requires employers ship. There are several companies thatconsiderable trouble for yourself in back to verify employment eligibility of can assist businesses with bar-codingtracking to uncover the error. new employees. The law obligates needs. You may want to talk with an Each payday, your employees must an employer to process Employment SBDC, SCORE or WBC counselor forreceive a statement from you telling Eligibility Verification Form I-9. The more information. them what deductions were made U.S. Citizenship and Immigrationand how many dollars were taken out Services Office of Business Liaison offersfor each legal purpose. This can be a selection of information bulletins andpresented in a variety of ways, includingVisit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 37
    • Federal Registration of Trademarks STATE REGISTRATION publications distributed through the U.S. Patent and Trademark Office. For and Copyrights OF A TRADEMARK more information, contact the: Trademarks or service marks are U.S. Patent and Trademark Office Trademarks and service marks may words, phrases, symbols, designs or 800-786-9199 • www.uspto.gov be registered in a state. combinations thereof that identify Caution: Federally registered and distinguish the source of goods. trademarks may conflict with and Copyrights Trademarks may be registered at both supersede state registered business and Copyrights protect original works of the state and federal level. To register a product names. authorship including literary, dramatic, federal trademark, contact: musical and artistic, and certain other U.S. Patent and Trademark Office: Patents intellectual works. Copyrights do P.O. Box 1450 A patent is the grant of a property not protect facts, ideas and systems, Alexandria, VA 22313-1450 right to the inventor by the U.S. Patent although it may protect the way these 800-786-9199 things are expressed. For general www.uspto.gov/ and Trademark Office. It provides the owner with the right to exclude others information contact: U.S. Copyright Office Trademark Information Hotline from making, using, offering for sale or U.S. Library of Congress 703-308-9000 selling the patented item in the United James Madison Memorial Building States. Washington, DC 20559 Additional information is provided in 202-707-9100 - Order Line the publications, General Information 202-707-3000 - Information Line Concerning Patents and other www.copyright.gov BUSINESS ORGANIZATION: Choosing Your Business Structure There are many forms of legal relatively little regulation and are fairly from those of the individual(s) forming structure you may choose for your easy to establish. A formal partnership the corporation. It’s the most complex business. Each legal structure offers agreement is recommended to address form of business organization and is organizational options with different potential conflicts such as: who will be comprised of shareholders, directors tax and liability issues. We suggest you responsible for performing each task; and officers. Since the corporation research each legal structure thoroughly what, if any, consultation is needed is a separate legal entity in its own and consult a tax accountant and/or between partners before major decisions, right it can own assets, borrow money attorney prior to making your decision. and what happens when a partner and perform business functions The most common organizational dies. Under a general partnership each without directly involving the owners. structures are sole proprietorships, partner is liable for all debts of the Corporations are subject to more general and limited partnerships, “C” business. Profits are taxed as income to government regulation and offer the and “S” corporations and limited liability the partners based on their ownership owners the advantage of limited liability, companies. percentage. but not total protection from lawsuits. Each structure offers unique tax and liability benefits. If you’re uncertain Subchapter “S” Corporation Limited Partnership Subchapter “S” references a special which business format is right for you, Like a general partnership, a you may want to discuss options with a part of the Internal Revenue Code that limited partnership is established by permits a corporation to be taxed as a business counselor or attorney. an agreement between two or more partnership or sole proprietorship, with persons. However, there are two types profits taxed at the individual, rather Sole Proprietorship of partners. than the corporate rate. A business One person operating a business as • A general partner has greater control must meet certain requirements for an individual is a sole proprietorship. in some aspects of the partnership. For example, only a general partner Subchapter “S” status. Contact the IRS It’s the most common form of businessADDITIONAL RESOURCES can decide to dissolve the partnership. for more information. organization. Profits are taxed as General partners have no limits on the income to the owner personally. The dividends they can receive from profit LLCs and LLPs personal tax rate is usually lower than so they incur unlimited liability. The limited liability company is the corporate tax rate. The owner • imited partners can only receive L a relatively new business form. It has complete control of the business, a share of profits based on the combines selected corporate and but faces unlimited liability for its proportional amount on their partnership characteristics while debts. There is very little government investment, and liability is similarly limited in proportion to their still maintaining status as a legal regulation or reporting required with entity distinct from its owners. As a investment. this business structure. separate entity it can acquire assets, “C” Corporation incur liabilities and conduct business. General Partnership A “C” corporation is a legal entity It limits liability for the owners. The A partnership exists when two created under state law by the filing of limited liability partnership is similar or more persons join together in articles of incorporation. A corporation to the LLC, but it is for professional the operation and management of a is a separate entity having its own organizations. business. Partnerships are subject to rights, privileges and liabilities, apart 38 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • O T H ER A SSISTANCE Small Business Center CENTRAL CAROLINA CC SMALL BUSINESS FORSYTH TECHNICAL CC SMALL BUSINESS MONTGOMERY CC SMALL BUSINESS CENTER CENTER CENTER Network 1801 Nash St. 601 W. Fourth St. 1011 Page St. The Small Business Center Network of the Sanford, NC 27330 Winston-Salem, NC 27101 Troy, NC 27371 North Carolina Community College System 919-774-6442 336-631-1320 910-576-6222 exists to increase the success rate and the number of profitable businesses in North CCCC TRIANGLE SOUTH ENTERPRISE GASTON COLLEGE SMALL BUSINESS NASH CC SMALL BUSINESS CENTER Carolina by providing high quality, readily CENTER CENTER 522 N. Old Carriage Rd. accessible assistance to prospective and 600 S. Magnolia Ave. 201 Hwy. 321 S. Rocky Mount, NC 27804 existing small business owners and their Dunn, NC 28334 Dallas, NC 28034 252-451-8233 employees. Each Small Business Center 910-892-2884 704-922-6449 (SBC) is a community-based provider PAMLICO CC SMALL BUSINESS CENTER of education and training, counseling, CCCC PITTSBORO CAMPUS GUILFORD TECHNICAL CC SMALL 705 Main St information, and referral. SBCs offer 764 West St. BUSINESS CENTER Bayboro, NC 28515 seminars, workshops, counseling, resources, Pittsboro, NC 27312 2007 Yanceyville St., Ste. 129 252-745-7348 and a network of linkages. www.sbcn.nc.gov 919-545-0813 Greensboro, NC 27405 336-334-4822 PIEDMONT CC SMALL BUSINESS CENTER ALAMANCE CC SMALL BUSINESS CENTER CENTRAL PIEDMONT CC SMALL BUSINESS 105 N. Main St. 1304 Plaza Dr. CENTER HALIFAX CC SMALL BUSINESS CENTER Roxboro, NC 27573 Burlington, NC 27215 124 E. Independence Blvd./Charlottetown Blvd. 200 College Dr. 336-599-0032 336-506-4312 Charlotte, NC 28204 Weldon, NC 27890 704-330-4223 252-536-7274 PITT CC SMALL BUSINESS CENTER ASHEVILLE-BUNCOMBE TCC SMALL 3107 S. Memorial Dr. BUSINESS CENTER CLEVELAND CC SMALL BUSINESS CENTER HAYWOOD CC SMALL BUSINESS CENTER Greenville, NC 27835 1465 Sandhill Rd., Ste. 1060 137 S. Post Rd. 185 Freedlander Dr. 252-493-7541 Candler, NC 28715 Shelby, NC 28152 Clyde, NC 28721 828-254-1921 704-484-4146 828-627-4512 RANDOLPH CC SMALL BUSINESS CENTER 629 Industrial Park Ave. BEAUFORT COUNTY CC SMALL BUSINESS COASTAL CAROLINA CC SMALL BUSINESS ISOTHERMAL CC SMALL BUSINESS Asheboro, NC 27203 CENTER CENTER CENTER 336-633-0240 5337 Hwy. 264 E. 444 Western Blvd. 286 ICC Loop Rd. Washington, NC 27889 Jacksonville, NC 28546 Spindale, NC 28160 RICHMOND CC SMALL BUSINESS CENTER 252-940-6306 910-938-6319 828-286-3636 1042 W. Hamlet Ave. Hamlet, NC 28345 BLADEN CC SMALL BUSINESS CENTER COLLEGE OF THE ALBEMARLE JAMES SPRUNT CC SMALL BUSINESS 910-410-1687 7418 NC Hwy. 41 W. SMALL BUSINESS CENTER CENTER Duplin, NC 28332 OTHER ASSISTANCE 1208 North Rd. 133 James Sprunt Dr. ROANOKE-CHOWAN CC SMALL BUSINESS 910-879-5500 Elizabeth City, NC 27909 Kenansville, NC 28349 CENTER 252-335-0821 910-296-2430 109 Community College Rd. BLUE RIDGE CC SMALL BUSINESS CENTER Ahoskie, NC 27910 100 W. Campus Dr. CRAVEN CC SMALL BUSINESS CENTER JOHNSTON CC SMALL BUSINESS CENTER 252-862-1279 Flat Rock, NC 28731 800 College Ct. 135 Bestwood Dr. 828-694-1779 New Bern, NC 28562 Clayton, NC 27520 ROBESON CC SMALL BUSINESS CENTER 252-638-7353 919-209-2015 5160 Fayetteville Rd. BRUNSWICK CC SMALL BUSINESS CENTER Lumberton, NC 28358 P.O. Box 30 DAVIDSON COUNTY CC SMALL BUSINESS LENOIR CC SMALL BUSINESS CENTER 910-272-3631 Supply, NC 28462 CENTER 327 N. Queen St. 910-755-7306 297 DCCC Rd. Kinston, NC 28501 ROCKINGHAM CC SMALL BUSINESS Thomasville, NC 27360 252-522-4676 CENTER CALDWELL CC & TECH INST. SMALL 336-224-4557 Hwy. 65/P.O. Box 38 BUSINESS CENTER MARTIN CC SMALL BUSINESS CENTER Wentworth, NC 27375 2855 Hickory Blvd. DURHAM TECHNICAL CC SMALL 1161 Kehukee Park Rd. 336-342-4261 Hudson, NC 28401 BUSINESS CENTER Williamston, NC 27892 828-726-2383 400 W. Main St. 252-792-1521 ROWAN-CABARRUS CC SMALL BUSINESS Durham, NC 27701 CENTER CAPE FEAR CC SMALL BUSINESS CENTER 919-536-7241 MAYLAND CC SMALL BUSINESS CENTER 1333 Jake Alexander Blvd. S. 411 N. Front St. 200 Mayland Dr. Salisbury, NC 28146 Wilmington, NC 28429 EDGECOMBE CC SMALL BUSINESS Spruce Pine, NC 28777 704-216-3534 910-362-7469 CENTER 828-765-7351 2009 W. Wilson St. SAMPSON CC SMALL BUSINESS CENTER CARTERET CC SMALL BUSINESS CENTER Tarboro, NC 27886 MCDOWELL TECHNICAL CC 1801 Sunset Ave. 3505 Arendell St. 252-823-5166 SMALL BUSINESS CENTER Clinton, NC 28329 Morehead City, NC 28557 54 College Dr. 910-592-7176 252-222-6127 FAYETTEVILLE TCC SMALL BUSINESS Marion, NC 28752 CENTER 828-652-0634 SANDHILLS CC SMALL BUSINESS CENTER CATAWBA VALLEY CC SMALL BUSINESS 2723 Ft. Bragg Blvd. 3395 Airport Rd. CENTER Fayetteville, NC 28303 MITCHELL CC SMALL BUSINESS CENTER Pinehurst, NC 28374 2550 Hwy. 70 S.E. 910-678-8462 701 W. Front St. 910-695-3938 Hickory, NC 28602 Statesville, NC 28677 828-327-7000 704-878-3227Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 39
    • OT H E R A SSISTANCE SOUTHEASTERN CC SMALL BUSINESS STANLY CC SMALL BUSINESS CENTER VANCE-GRANVILLE CC SMALL BUSINESS WESTERN PIEDMONT CC CENTER 143 N. Second St. CENTER SMALL BUSINESS CENTER 4564 Chadbourn Hwy. Albemarle, NC 28001 200 Community College Rd. 228 South Sterling St. Whiteville, NC 28472 704-991-0182 Henderson, NC 27536 Morganton, NC 28655 910-642-7141 252-738-3240 828-448-6719 SURRY CC SMALL BUSINESS CENTER SOUTHERN PIEDMONT CC 630 S. Main St. WAKE TECHNICAL CC SMALL BUSINESS WILKES CC SMALL BUSINESS CENTER SMALL BUSINESS CENTER Dobson, NC 27017 CENTER 1328 S. Collegiate Dr. 4209 Old Charlotte Hwy. 336-386-3309 3434 Kildare Farms Rd., Ste. 207 Wilkesboro, NC 28697 Monroe, NC 28110 Cary, NC 27511 336-838-6166 704-290-5222 TRI-COUNTY CC SMALL BUSINESS CENTER 919-335-1007 Cherokee County Center for Applied WILSON CC SMALL BUSINESS CENTER SOUTHWESTERN CC SMALL BUSINESS Technology WAYNE CC SMALL BUSINESS CENTER 902 Herring Ave. CENTER 2415 Airport Rd. 3000 N. Wayne Memorial Dr. Wilson, NC 27893 447 College Dr. Marble, NC 28905 Goldsboro, NC 27530 252-246-1232 Sylva, NC 28779 828-835-9564 919-739-6941 828-488-6413 BUSINESS DIRECTORYOTHER ASSISTANCE 40 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
    • O T H E R A SSISTANCEChambers of Commerce Name County Phone Name County Phone Chambers of Commerce serve as a central location where Granville County Chamber Granville 919-693-6125 Hampstead Chamber Pender 910-270-4000 the local small business community may obtain information, Greene County Chamber Greene 252-747-8090 Perquimans County Chamber Perquimans 252-426-5657 publications and contact information. For more information Greensboro Chamber Guilford 336-387-8322 Roxboro Area Chamber Person 336-599-8333 please see the list below: High Point Chamber Guilford 336-882-5000 Ayden Chamber Pitt 252-746-2266 Lake Gaston Chamber Halifax 252-586-5711 Farmville Chamber Pitt 252-753-4670 Name County Phone Roanoke Valley Chamber Halifax 252-537-3513 Greenville-Pitt County Alamance County Chamber Alamance 336-228-1338 Angier Chamber Harnett 919-639-2500 Chamber Pitt 252-752-4101 Alexander County Chamber Alexander 828-632-8141 Dunn Chamber Harnett 910-892-4113 Carolina Foot Hills Chamber Polk 828-859-6236 Alleghany County Chamber Alleghany 336-372-5473 Erwin Chamber Harnett 910-897-7300 Archdale Trinity Chamber Randolph 336-434-2073 Anson County Chamber Anson 704-694-4181 Lillington Area Chamber Harnett 910-893-3751 Asheboro/Randolph Ashe County Chamber Ashe 336-846-9550 Greater Haywood Chamber Randolph 336-626-2626 Avery/Banner Elk Chamber Avery 828-898-5605 County Chamber Haywood 828-456-3021 Liberty Chamber Randolph 336-622-4937 Beech Mountain Chamber Avery 800-468-5506 Maggie Valley Chamber Haywood 828-926-1686 Randleman Chamber Randolph 336-495-1100 Belhaven Hendersonville Chamber Henderson 828-692-1413 Richmond County Chamber Richmond 910-895-9058 Chamber of Commerce Beaufort 252-943-3770 Ahoskie Chamber Hertford 252-332-2042 Fairmont Chamber Robeson 910-770-1967 Washington-Beaufort Murfreesboro Chamber Hertford 252-398-4886 Lumberton Area Chamber Robeson 910-739-4750 Chamber Beaufort 252-946-9168 Raeford/Hoke Chamber Hoke 910-875-5929 Maxton Chamber Robeson 910-844-1060 Windsor Hyde County Chamber Hyde 252-926-9171 Pembroke Area Chamber Robeson 910-522-5790 Chamber of Commerce Bertie 252-794-4277 Greater Statesville Chamber Iredell 704-873-2892 Red Springs Chamber Robeson 910-843-5241 Elizabethtown Chamber Bladen 910-862-4368 Mooresville/South Eden Chamber Rockingham 336-623-3336 North Brunswick Chamber Brunswick 910-383-0553 Iredell Chamber Iredell 704-664-3898 Reidsville Chamber Rockingham 336-349-8481 Brunswick County Chamber Brunswick 910-754-6644 Jackson County Chamber Jackson 800-962-1911 Western Rockingham Southport-Oak Island Cashiers Chamber Jackson 828-743-5941 Chamber Rockingham 336-548-6248 Area Chamber Brunswick 910-457-6964 Clayton Chamber Johnston 919-553-6352 Rowan County Chamber Rowan 704-633-4221 Asheville Chamber Buncombe 828-258-6101 Four Oaks Chamber Johnston 919-963-4004 Hickory Nut Gorge Chamber Rutherford 828-625-2725 Black Mountain/Swannanoa Kenly Chamber Johnston 919-284-5510 Rutherfordton/Spindale Valley Chamber Buncombe 828-669-2300 Smithfield-Selma Chamber Rutherford 828-287-3090 Burke County Chamber Burke 828-437-3021 Area Chamber Johnston 919-934-9166 Clinton-Sampson Chamber Sampson 910-592-6177 Cabarrus Regional Chamber Cabarrus 704-260-8101 Benson Area Chamber Johnston 919-894-3825 Laurinburg/Scotland Chamber Scotland 910-276-7420 Caldwell County Chamber Caldwell 828-726-0616 Jones County Economic Stanly County Chamber Stanly 704-699-9227 Carteret County Chamber Carteret 252-726-6350 Development Commission Jones 252-448-1315 King Chamber Stokes 336-983-9308 Caswell County Chamber Caswell 336-694-6106 Sanford Chamber Lee 919-775-7341 Mount Airy Chamber Surry 336-786-6116 Catawba Chamber Catawba 828-328-6111 Kinston-Lenoir Yadkin Valley Chamber Surry 336-526-1111 Chatham County County Chamber Lenoir 252-523-2500 Swain County Chamber Swain 800-867-9246 United Chamber Chatham 919-742-3333 Lincolnton/Lincoln Brevard-Transylvania OTHER ASSISTANCE Andrews Chamber Cherokee 877-558-0005 County Chamber Lincoln 704-735-3096 Chamber Transylvania 828-883-3700 Cherokee County Chamber Cherokee 828-837-2242 Franklin Area Chamber Macon 828-524-3161 Tyrell County Chamber Tyrell 252-796-1996 Edenton / Chowan Chamber Chowan 252-482-3400 Highlands Chamber Macon 828-526-5841 Union County Chamber Union 704-289-4567 Clay County Chamber Clay 828-389-3704 Madison County Chamber Madison 828-689-9351 Henderson/Vance County Cleveland County Chamber Cleveland 704-487-8521 Martin County Chamber Martin 252-792-4131 Chamber Vance 252-438-8414 Kings Mountain Chamber Cleveland 704-739-4755 McDowell Chamber McDowell 828-652-4240 American Indian Fair Bluff Chamber Columbus 910-649-7521 Old Fort Chamber McDowell 828-668-7223 Chamber of NC Wake 919-247-4946 Greater Tabor City Chamber Columbus 910-653-2031 Carolina Asian Apex Chamber Wake 919-362-6456 Greater Whiteville Chamber Columbus 910-642-3171 American Chamber Mecklenburg 866-YES-ASIA Cary Chamber Wake 919-467-1016 Havelock Chamber Craven 252-447-1101 Charlotte Chamber Mecklenburg 704-378-1319 Fuquay Varina Area Chamber Wake 919-552-4947 New Bern Chamber Craven 252-637-3111 Lake Norman Chamber Mecklenburg 704-892-1922 Garner Chamber Wake 919-772-6440 Fayetteville-Cumberland Latin American Chamber Hispanic Chamber Wake 919-782-8764 County Chamber Cumberland 910-483-8133 of Charlotte Mecklenburg 704-343-2525 Holly Springs Chamber Wake 919-567-1796 Hope Mills Area Chamber Cumberland 910-423-4314 Matthews Chamber Mecklenburg 704-847-3649 Knightdale Chamber Wake 919-266-4603 Spring Lake Chamber Cumberland 910-497-8821 Mint Hill Chamber Mecklenburg 704-573-8282 Morrisville Chamber Wake 919-463-7150 Currituck County Chamber Currituck 252-453-9497 Mitchell County Chamber Mitchell 828-765-9033 Raleigh Chamber Wake 919-664-7000 Outer Banks Chamber Dare 252-441-8144 Montgomery County Rolesville Chamber Wake 919-562-7069 Denton Chamber Davidson 336-859-5922 Chamber Montgomery 910-572-4300 Wake Forest Area Chamber Wake 919-556-1519 Lexington Area Chamber Davidson 336-248-5929 Moore County Chamber Moore 910-692-3926 Wendell Chamber Wake 919-365-6318 Thomasville Area Chamber Davidson 336-475-6134 Rocky Mount Chamber Nash 252-973-1212 Zebulon Chamber Wake 919-269-6320 Davie County Chamber Davie 336-751-3304 Pleasure Island Chamber New Hanover 910-458-8434 The Lake Gaston Chamber Warren 252-586-5711 Wallace Chamber Duplin 910-285-4044 Wilmington Chamber New Hanover 910-762-2611 Warren County Chamber Warren 252-257-2657 Warsaw Chamber Duplin 910-293-7804 Wrightsville Beach Chamber New Hanover 910-256-8116 Washington County Chamber Washington 252-793-7638 Durham Chamber Durham 919-682-2133 Northampton County Blowing Rock Chamber Watauga 800-295-7851 Tarboro-Edgecombe Chamber Edgecombe 252-823-7241 Chamber Northampton 252-534-1383 Boone Area Chamber Watauga 828-264-2225 Kernersville Chamber Forsyth 336-993-4521 Jacksonville-Onslow Chamber Onslow 910-347-3141 Mount Olive Area Chamber Wayne 919-658-3113 Lewisville Clemmons Chamber Forsyth 336-970-5100 Swansboro Area Chamber Onslow 910-326-1174 Wayne County Chamber Wayne 919-734-2241 Winston-Salem Chamber Forsyth 336-728-9200 Chapel Hill/Carrboro Chamber Orange 919-967-7075 Wilkes Chamber Wilkes 336-838-8662 Franklin County Chamber Franklin 919-496-3056 Hillsborough/Orange Chamber Orange 919-732-8156 Wilkes Economic Montcross Area Chamber Gaston 704-825-5307 Pamlico County Chamber Pamlico 252-745-3008 Development Corp. Wilkes 336-838-1402 Bessemer City Chamber Gaston 704-629-3900 Elizabeth City Area Chamber Pasquotank 252-335-4365 Wilson County Chamber Wilson 252-237-0165 Cherryville Chamber Gaston 704-435-3451 Burgaw Chamber Pender 910-259-9817 Yadkin County Chamber Yadkin 336-679-2200 Gaston County Chamber Gaston 704-864-2621 Greater Topsail Area Yancey County-Burnsville Graham County Chamber Graham 828-479-8400 Chamber Pender 910-329-4446 Chamber Yancey 828-682-7413Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 41
    • S B A TOP L END ERS North Carolina SBA CORNERSTONE BANK www.cornerstonebankga.com PNC BANK (PA)* Lenders in 2011 www.pnc.com SBA TOP LENDERS CRESCENT STATE BANK (CARY)* AMERICAN COMMUNITY BANK* www.crescentstatebank.com RANDOLPH BANK & TRUST www.americancommunitybank.com www.randolphbank.com FIFTH THIRD BANK (OH) * ALLEGACY BANK FCU* www.53.com RBC BANK* www.allegacyfcu.org www.rbcbankusa.com FIRST BANK* ASHEVILLE SAVINGS BANK* www.firstbancorp.com REGIONS BANK (AL)* www.ashevillesavingsbank.com www.regions.com FIRST CHATHAM BANK OF AMERICA* www.firstchatham.com SELECT BANK & TRUST* www.bankofamerica.com www.selectbankandtrust.com FIRST CITIZENS BANK & TRUST* BANK OF NORTH CAROLINA www.firstcitizens.com SELF-HELP CREDIT UNION* www.bankofnc.com www.self-help.org FIRST COMMERCIAL BANK BANK OF OAK RIDGE* www.firstcommercialbank.com SOUND BANKING COMPANY* www.bankofoakridge.com www.soundbanking.net FIRST COMMUNITY BANK BANK OF STANLY* www.fcbresource.com SOUTHERN BANK & TRUST* www.bankofstanly.com www.southernbank.com FIRST NATIONAL BANK OF SHELBY* BANK OF THE CAROLINAS* www.ibankatfnb.com SOUTHERN COMMUNITY B&T* www.bankofthecarolinas.com www.smallenoughtocare.com FIRST SOUTH BANK BLUE HARBOR BANK www.firstsouthnc.com SUNTRUST BANK (VA)* www.blueharborbank.com www.suntrust.com FOREST COMMERCIAL BANK BORREGO SPRINGS BANK (CA)* www.forestcommercialbank.com SUPERIOR FINANCIAL GROUP (CA)* www.borregospringsbank.com www.superiorfg.com FOUR OAKS BANK & TRUST BRANCH BANKING & TRUST* www.fouroaksbank.com SURREY BANK & TRUST* www.bbandt.com www.surreybank.com HARRINGTON BANK, FSB BCI LENDING* www.bankatharrington.com TD BANK (ME)* www.bcilending.com www.tdbank.com HIGH COUNTRY BANK CABARRUS BANK & TRUST* www.yadkinvalleybank.com THE BANK OF CURRITUCK www.cabarrusbankandtrust.com www.bankofcurrituck.com HIGH POINT BANK & TRUST CAPITAL BANK* www.highpointbank.com/ THE EAST CAROLINA BANK* www.capitalbank-nc.com www.ecbbancorp.com HOME LOAN INVEST. BANK (RI)* CAROLINA BANK www.homeloanbank.com THE FIDELITY BANK* www.carolinabank.com www.fidelitybanknc.com HOMETRUST BANK CAROLINA PREMIER BANK* www.hometrustbanking.com TRULIANT FCU* www.carolinapremierbank.com www.truliantfcu.org KEYSOURCE COMMERCE BANK CAROLINA TRUST BANK www.keysourcebank.com TRUST ATLANTIC BANK www.carolinatrust.com www.trustatlantic.com LIVE OAK BANKING CO CIT SMALL BUS. LENDING (NJ)* www.liveoakbank.com VANTAGE SOUTH BANK* www.cit.com www.vantagesouth.com LUMBEE GUARANTY BANK CITIZENS SOUTH BANK* www.lumbeeguarantybank.com WACCAMAW BANK www.citizenssouth.com www.waccamawbank.com MOUNTAIN 1ST BANK & TRUST COASTAL FCU* www.mountain1st.com WELLS FARGO BANK (CA)* www.coastalfcu.org www.wellsfargo.com NEW BRIDGE BANK* COMMUNITY BANK OF ROWAN* www.newbridgebank.com YADKIN VALLEY BANK* www.communitybankofrowan.com www.yadkinvalleybank.com NEWTEK SMALL BUS FIN (NY) COMMUNITY SOUTH BANK (TN)* www.newtekbusinessservices.com * SBAExpress Lenders & Patriot Express www.communitysouth.com PIEDMONT BANK* COMPASS BANK (AL) www.piedmontbankonline.com www.bbvacompass.comVisit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 43