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SBA Resources

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

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SBA Resources

  1. 1. SBA 101 Terry J. Case Lender Relations Specialist Iowa District Office
  2. 2. America’s Small Business Resource SBA Success Stories Apple Intel Nike Staples Federal Express Hewlett-Packard Ben & Jerry’s Jenny Craig Callaway Golf Auntie Anne’s Outback Steakhouse Radio One Constant Contact Under Armour Winnebago Black Enterprise Magazine Cold Stone Creamery Columbia Sportswear
  3. 3. America’s Small Business Resource Capital Counseling Contracting Advocacy Disaster Innovation
  4. 4. America’s Small Business Resource Capital • Government Guaranteed Loans • Two Main Programs - 7(a) & 504 • NO GRANTS! NO GRANTS! NO GRANTS!
  5. 5. America’s Small Business Resource Loan Programs • 504 loans • 7 (a) loans • - 7(a) - SBA Express - Community Advantage - Export Working Capital/Export Express - Microloans
  6. 6. America’s Small Business Resource Capital 7(a) Guaranteed Loan Program •Helps lender make loans they might not otherwise make •Made by the lender and backed by SBA •Initial loan decision rests with the lender - Based primarily on character, credit and repayment ability •Up to $5 million, wide variety of business purposes
  7. 7. America’s Small Business Resource Capital 7a Program Basics •Loans up to $5 million (3.75 Million SBA exposure) •85% percent guaranty on loans up to $150,000 •75% percent guaranty on loans over $150,000 •May be used for a wide variety of business purposes
  8. 8. America’s Small Business Resource SBA loan programs In guaranteeing the loan, the SBA assures the lender that, in the event the borrower does not repay the loan, the government will reimburse the lending institution for portion of its loss. By providing this guaranty, the SBA is able to help tens of thousands of small business every years get financing they might not otherwise obtain. The SBA does NOT offer grants to start, purchase or expand a small business.
  9. 9. America’s Small Business Resource Use of SBA loan Proceeds • Start a business • Buy a business • Expand or renovate facilities • Acquire machinery, equip, furniture, fixtures and leasehold improvements. • Finance receivables and augment working capital • Finance seasonal lines of credit • Construct buildings
  10. 10. America’s Small Business Resource Capital 504 Basics •Long-term, fixed rate subordinate mortgage financing for acquisition and/or renovation of capital assets and including land buildings and equipment. •Uses a Certified Development Company (CDC) a non-profit certified and regulated by the SBA to package process, close and service 504 loans.
  11. 11. America’s Small Business Resource Capital 504 Structures •Typical 50-40-10 (maximum) •New Business 50-35-15 •Special Purpose Building 50-35-15 •New Business and Special Purpose building 50-30-20 •New Business includes not only new business but changes of ownership as well
  12. 12. America’s Small Business Resource Capital 504 Advantages •50% loan to value on first mortgage •Customer preserves w/c for growth •Federal Government is subordinate lender •More competitive financing package •Fixed interest rate on second mortgage •Long term financing •May have lower down payment requirement •Collateral normally limited to project assets •Existing collateral still available for w/c loans
  13. 13. America’s Small Business Resource Capital Microloan Program •Loan comes direct from SBA via an SBA Microlender •Limited to $50,000 or less •Limited to working capital and fixed-assets Iowa Microloan – www.iowamicroloan.org or (515) 212-0182
  14. 14. America’s Small Business Resource Counseling (One-on-one Counseling/Training/Technical Assistance) • Small Business Development Centers • SCORE • Women’s Business Center • Veteran’s Business Outreach Center • US Export Assistance Center
  15. 15. America’s Small Business Resource America’s SBDC – Iowa • Statewide network offering free, confidential, customized, professional business advice • New and existing small businesses • Low-cost workshops • Business Planning, Cash Flow Projections, Business Financials, Management and Technical Assistance
  16. 16. America’s Small Business Resource SCORE – Counselors to America’s Small Businesses • Free, on-one-one business counseling and advice • Eight chapters throughout the state - volunteers with real-world experience • New and existing small businesses • Pre-business planning • Low-cost “Simple Steps” workshops
  17. 17. America’s Small Business Resource Women’s Business Center • Over 100 centers nationwide • Business training, counseling, coaching and mentoring • Geared towards women, but will assist anyone
  18. 18. America’s Small Business Resource Contracting • 8(a) certified • HUB Zone certified • Women-owned • Service Disabled Veteran • Surety Bonds
  19. 19. America’s Small Business Resource SBA Procurement Assistance The US government is the largest single purchaser of good and services in the world, buying everything from armored tanks to paper clips. Every year the federal government awards more that 500 billion in contracts and a significant share of those contracts are specifically allotted to small businesses. SBA’s roll is to make sure small business get their fair share of government contracts and to assist them in pursuing other contracts as well as state/local/federal/corporate The SBA features outreach programs, matchmaking events and online training opportunities and helps agencies identify opportunities; and helps agencies identify opportunities for small business.
  20. 20. America’s Small Business Resource Federal prime Contraction Small Business Goals • Small Business 23% • Small Disadvantaged Business (8(a)) 5% • Woman owned Small Business 5% • HUB Zone Small Business 3% • Service-Disabled Veteran-Owned Small Business 3%
  21. 21. 21 Procurement Technical Assistance Center (PTAC) http://www.ciras.iastate.edu/procurement/
  22. 22. America’s Small Business Resource Innovation SBA Office of Advocacy Small Business Innovation Research (SBIR) Small Business Investment Corporation (SBIC) National Ombudsman’s Office
  23. 23. America’s Small Business Resource Office of national ombudsman • Assist small business when experience unfair or excessive enforcement actions • Provides a means for small business to comment on federal agencies enforcement actions.
  24. 24. America’s Small Business Resource SBA Disaster Program • Disaster declaration by President of US or SBA Administrator • Low interest, long-term loans – Physical Disaster Business Loans – Economic Injury Disaster Loans – Loans for Homes & Personal Property
  25. 25. America’s Small Business Resource SBA Disaster Assistance Program SBA provides low interest disaster loans to homeowners, renters, businesses of all sizes and private, nonprofit organizations to repair or replace real estate, personal property, machinery & equipment, inventory and business assets that have been damaged or destroyed in a declared disaster • Physical Disaster loans (Home and Business) • Economic injury Disaster Loans SBA also offers Disaster preparedness Planning Assistance
  26. 26. America’s Small Business Resource QUESTIONS? Iowa District Office Des Moines – (515) 284-4422 Cedar Rapids – (319) 362-6405 www.sba.gov/ia

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