The document summarizes various programs and resources from the U.S. Small Business Administration (SBA) to support small businesses. It outlines SBA's mission to aid, counsel, and protect small businesses. It then describes several SBA programs that provide business development assistance, financial assistance, and procurement assistance to small businesses. Finally, it provides contact information for SBA local offices and partner organizations that can help small business owners.
Program Data 101 - From Data Center to Academy Assessment to Action Planning–...
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1. U.S. Small Business Administration Programs Shivani Desai, Arizona District Office Associate District Director for Business Development [email_address]
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5. TELEPHONE OR VISIT SCORE FOR FREE BUSINESS COUNSELING PHOENIX SCORE 602.745.7250 2828 N. Central Avenue, #800 Phoenix EAST VALLEY SCORE: 480.833.9020 1201 S. Alma School #4800, Mesa SCORE’s WEB SITE: www.score.org ● Free Monthly Newsletter ● E-mail Counseling TUCSON SCORE 520.670.5008 10 E. Broadway, Tucson Prescott-Northern AZ 928.778.7438 1228 Willow Creek Rd.#2, Prescott
In the Small Business Act of July 30, 1953, Congress created the Small Business Administration whose function was to “aid, counsel, assist and protect, in so far as is possible, the interests of small business concerns.” The charter also stipulated the SBA would insure small business a “fair proportion” of government contracts and sales of surplus property.
Financial Assistance - loans Business Development - use of resource partners assists small businesses in the development of management skills and business expertise. Procurement Assistance - Liaison between small business owners and Government Procuring offices. Insuring that small businesses receive a fair share of government contracts. Office of Advocacy - encourage policies that support the development and growth of American small business. Advocacy represents the nation's small businesses within the federal government; conducts policy studies; and compiles statistics on small business characteristics and contributions.
SBA’s authority to guarantee loans comes from Section 7(a) of the Small Business Act - hence the 7(a) program or Guarantee Loans LowDoc Loans Certified Development Company or 504 Loans Disaster Loans - Direct Loans
Must be a “For Profit” business Must qualify as a small business under SBA size standards (more on slide to follow) Type - there are some types of business that are ineligible for SBA business loans (more on slide to follow) Must be unable to borrow on reasonable terms from conventional lenders without government help
Business must qualify as small under SBA size standard criteria, based on average number of employees for the preceding 12 months, or based on sales volume averaged over a three-year period. Size Standard is SIC Code specific (changing to NAICS - North America Industry Classification Standards)
Non-Profits - increase the economy through increase jobs and tax revenue Lenders - banks, finance companies, pawn shops Passive Owned Real Estate - developers and landlords - spread shopping centers and apartment complexes Foreign Businesses - (businesses in the U.S. owned by aliens may qualify) Pyramid sale distribution plans If you have previously defaulted on a Federal loan or Federally assisted financing, resulting in the Federal Government or any of its agencies or departments sustaining a loss - includes if you guaranteed a loan Businesses principally engaged in teaching, instruction, counseling or indoctrinating religion or religious beliefs Derive revenue through the sale of products or services, or live performances of a offensive sexual nature - X-Rated Dance Establishment and Adult Tapes Speculation - oil wildcatting Gambling - 1/3 gross annual revenue from legal gambling (illegal ineligible) Insurance Companies - independent agents may be eligible Incarcerated, probation, parole - continuation of management
Borrower - Business Plan, Market Loan & Provide Info Lender central figure (Governed by Banking Laws) Small Business applies & works with Lender If the loan is approved, subject to an SBA guaranty, the Lender will provide SBA application forms and submits the completed application to SBA along with a request for guaranty. Once approved, the bank will close and service the loan in the same manner as other bank loans that do not have an SBA guaranty. Purpose is not to encourage Lenders to make bad loans. Our purpose is to help businesses with a reasonable chance of succeeding obtain financing on reasonable terms. Certified and Preferred Lenders
Purpose - how will the proceeds of the loan be used Market, Market Niche, Market Sector, Competition, Quality, Price, Service Gravy & Meat of Business Plan Current (with-in 90 to the same date) Balance Sheet - as of date, Income Statement - for the time period ending on date Financials of 3 Years (own or purchase), we will ask for IRS release Proformas - 3 Years (1 first year more detail) Personal Financials (credit checks are pulled) - no surprises Verbiage - backing up data
Terms a just caps and must be negotiated with Lender Terms are a blended rate based on use of proceeds Machinery & Equipment - useful life No Balloon Notes - these are term loans with principle and interest being paid in-full at maturity
What Do These Business Have in Common? Received assistance from the SBA Financial through loans & SBICs Management assistance through SCORE Chapters and SBDCs Government contracting assistance Had Business Plans Heart & Soul connected to the Nuts & Bolts
Procurement Center Representatives - work with Federal Government Contracting activities and Prime Contractors Liaison between Small Business Owners and the Federal Government Contracting officers PTAC - SBDCs - contact from the Department of Defense
Free to business and is open to all businesses seek Federal, State and private contracting opportunities Used by Federal Procurement Activities, Prime contractors and other with large contracting or subcontracting opportunities Use to fined Joint Venture colleagues Every field can be used in search including description
Password protected Links to SBA’s Business Development web pages and other sites of interest to small businesses interested in government contracting
The HUBZone Empowerment Contracting program provides federal contracting opportunities for qualified small businesses located in distressed areas. Fostering the growth of these federal contractors as viable businesses, for the long term, helps to empower communities, create jobs, and attract private investment. The program encourages economic development in history underutilized business zones - “HUBZones” - through the establishment of preferences. (provides access to more Federal contracting opportunities)
Any Surety Company can participate, but we can supply a list of those who have participated Beware of the fees
Ten Department or Agencies Dept of Agriculture, Dept of Commerce, Dept of Defense, Dept of Education, Dept of Energy, Dept of Health and Human Services, Dept of Transportation, Environmental Protection Agency, NASA, National Science Foundation