Philadelphia District Office Parkview Tower 1150 First Avenue, Suite 1001 King of Prussia, PA (610)

Visit us at 2 Agenda SBA Programs Overview –Technical Assistance –Financial Assistance –Disaster Assistance Upcoming Seminars and Events Questions Contact Information

Visit us at Technical Assistance Free Consulting and Low Cost Training Resource Partners –Small Business Development Centers (SBDC) –Counselors to America's Small Business (SCORE) –Women’s Business Centers (WBC) Small Business Training Network

Visit us at 4 Financial Assistance Grants NOT Available from SBA SBA Does NOT Loan Money Directly to Small Businesses SBA Partners with Lending Organizations to Make Capital Available Lenders handle all loan transactions –Application –Approval –Disbursement –Servicing –Collection

Visit us at 5 Ineligible Businesses Non-Profit Organizations Religious Organizations Charitable Organizations Owners who defaulted on federal loan or federally assisted financing Lending Activities Gambling or Speculation Real Estate Investment Pyramid Sales Illegal Activities Academic Schools Prurient Sexual Material Financial Assistance

Visit us at 6 SBA Programs 7(a) Program 504 Program Micro-loan Program SBIC SBIR/STTR

Visit us at 7 7(a) Program Eligibility Federal Small Business –Federal standard – NAICS » Independently owned and operated –Franchises – Use of Proceeds –Working capital –Inventory –Lines of credit –Leasehold improvements –Land or buildings / Expansion or Renovation –Furniture / fixtures / equipment –Refinance debt for compelling reasons

Visit us at 8 7(a) Program Loan Amount –Maximum of $5 Million Guarantees –≤ $150K = 85% Maximum $127.5K –> $150K = 75% Maximum Guarantee of $3.75 Million

Visit us at 9 7(a) Program SBA Guarantee Fees –Can be included in loan –Calculated on guaranteed portion of loan Maturity ≤1 year –0.25% Maturity >1 year –<$150K = 2% –$150K - $700K = 3% –>$700K = 3.5% Guarantee ≥ $1M –Additional 0.25%

Visit us at us at 7(a) Program Interest Rates –Negotiable between Borrower and Lender –Maximum interest rate : < 7 Year Term = [Prime %] OR [(LIBOR + 3%) %] ≥ 7 Year Term = [Prime %] OR [(LIBOR + 3%) %] Loan $25K - $50K –Additional 1% Loan ≤ $25K –Additional 2% Higher rates may apply for Express programs –Maximum fixed interest rate: LIBOR + Average of 5 and 10 year t-bill rate + SBA max spread –Prepayment penalty Maturity ≥ 15 years and prepaid during 1st 3 years

Visit us at Working Capital Loans - Up to 10 Years Machinery and Equipment - Up to 10 Years or Useful Life Construction of Plant Facilities - Up to 25 Years Repayment Usually on a Monthly Installment Basis, Principal and Interest Variations Negotiated to Meet Seasonal Cycles of Business Activity Loan Maturities 7(a) Program

Visit us at us at Program Long-term financing program –Land and/or Building –Capital Equipment –Lease-hold improvements –New Refinance Option Access through Certified Development Company (CDC) - 9 in Pennsylvania

Visit us at us at Program Business Eligibility –For Profit –≤ 500 Employees –Net Worth ≤ $8.5 Million –Net Income After Taxes ≤ $3.0 Million Job Creation Requirement –Project must create 1 new job for every $65,000 borrowed from the SBA; –504 Projects to Small Manufacturers – 1 Job per $100,000 borrowed from SBA; –Borrower has a total of two (2) years to create jobs

Visit us at Total Project Range $12.5M - $13.75M SBA’s Portion of the Project Limited to a Maximum of 40% of the Total Project Cost Maximum Debenture is Limited to $5M Manufacturing Projects can be as high as $5.5M 504 Structure 504 Program

Visit us at us at Program Typical Structure –Lender50% –504 Program40% –Owners’ Equity10% –Special circumstances Single purpose building +5% Owners’ Equity Start-up business +5% Owners’ Equity Interest Rates –504 portion typically close to Prime Rate –504 portion fixed interest rate –Favorable Blended Interest Rate Longer Repayment Term –Heavy Machinery/Equipment10 Years –Real Estate20 Years New Refinance Option –Available for Borrowers with Commercial Mortgage until 9/2012

Energy Efficiency Public Policy Goals Designed to increase Energy Independence and Security Projects that meeting criteria can qualify without job creation –Reduction of energy consumption by at least 10% –Increased use of sustainable design: Reduce fossil fuels, low impact design –Plant, equipment, and process upgrades of renewable energy sources Micropower, biofuels Can qualify for $5 Million to $5.5 Million on 504 portion depending on project Visit us at Program

Visit us at Certified Development Companies in PA Altoona Blair County Development Corp. –Altoona, PA –(814) 944 – 6113 American Small Business Finance –Moosic, PA –(570) 614 – 1158 EDC Finance Corp. –Lancaster, PA –(717) 397 – 4046 DelVal Business Finance Corp. –Philadelphia, PA –(215) 871 – 3770 Lehigh Valley Economic Development Corp. –Bethlehem, PA –(610) Program Mid-Atlantic Business Finance Company –Glen Burnie, MD –(800) 730 – 0017 Pennsylvania Community Development and Finance Corporation –Reading, PA –(610) 898 – 6045 SEDA-COG Local Development Corp. –Lewisburg, PA –(570) 524 – 4491 SEED Co. –Exton, PA –(610) 458 – 5700

Visit us at us at Microloan Program Accessed through SBA Microloan Intermediaries –11 in Eastern Pennsylvania –Intermediaries Borrow Dollars from SBA and Lend Directly to Borrowers –Use of Proceeds Working Capital Machinery and Equipment/Inventory Leasehold Improvements *Cannot be used for down payment of or to purchase real estate

Visit us at us at Microloan Program Small Dollar Amount Loans –$500 to $50,000 Eligibility –Same as 7(a) Criteria Maturity –Short-term, Not to Exceed 6 Years Interest Rates –Negotiable –Loans ≤ $10,000 = Cost of Funds + 8.5% (Max) –Loans > $10,000 = Cost of Funds % (Max)

Visit us at SBA Microloan Intermediaries Community First Fund –Lancaster, PA –(717) 393 – 2351 Metro Action, Inc. –Scranton, PA –(570) 342 – 7711 North Central Pennsylvania Planning and Development Commission –Ridgway, PA –(814) 773 – 3162 Northeastern Pennsylvania Alliance –Pittston, PA –(570) 655 – 5581 Philadelphia Development Partnership –Philadelphia, PA –(215) 545 – 3100 SEDA-COG Local Development Corporation –Lewisburg, PA –(570) 524 – 4491 Southern Alleghenies Planning & Development Corp. –Altoona, PA –(814) 949 – 6545 The Enterprise Capital Corp. –Philadelphia, PA –(215) 895 – 4024 Women’s Opportunities Resource Center* –Philadelphia, PA –(215) 564 – 5500 –*Funds through Commonwealth of PA and Private organizations, soon to be an SBA Intermediary Microloan Program

Small Business Investment Company Supply Equity Capital, Long-Term Loans, and Management Assistance SBIC’s are Privately Owned and Managed, Licensed and Regulated by SBA Use Their Own Capital, plus Borrowed SBA funds (with Guaranty) to make Equity and Debt Investments Visit us at SBIC Program

Small Business Investment Company Eligibility: Small Businesses Only with Net Worth ≤ $18 Million (to include all affiliates) Cannot Provide Funds to: –Finance/Investment /Leasing Companies –Unimproved Real Estate –Passive or Casual Businesses –Less than 51% of Assets and/or Employees outside U.S. Visit us at SBIC Program

Small Business Investment Company Each SBIC has its own Investment Strategy –Preferred Investment Size –Investment Policy –Investment Type –Industry Preference –Geographic Preference Visit us at SBIC Program

Small Business Investment Company SBA Licenses Approximately 300 SBIC’s Nationwide Pennsylvania has 14 Licensed SBIC’s You can find a list of SBIC’s by State at: licensees-statehttp:// licensees-state Visit us at SBIC Program

Small Business Innovation Research Highly Competitive Grant Program Administered by SBA on Behalf of 11 Federal Agencies Provides R&D Capital to Assist Small Businesses take Ideas/Concepts to Prototype to Commercialization Eligibility: –American-Owned, For-Profit, Employ Principal Researcher, Up to 500 Employees Visit us at SBIR/STTR Program

Small Business Innovation Research Three Phase Program: –Phase 1: Start-up Phase, Awards up to $100K for 6 months to explore technical merit and feasibility of ideas –Phase 2: Awards up to $750K for up to 2 Years to Perform R&D Work and Evaluate Commercial Potential. Only Phase 1 Winners Considered –Phase 3: Innovation Moves from Laboratory to Marketplace. No funds Available Visit us at SBIR/STTR Program

Small Business Technology Transfer Highly Competitive Grant Program Administered by SBA on Behalf of 5 Federal Agencies Provides R&D Capital to Assist Small Businesses who Partner with Non-Profit Organizations to take Ideas/Concepts to Prototype to Commercialization Visit us at SBIR/STTR Program

Small Business Technology Transfer Eligibility –Small Business - American-Owned, For- Profit, Employ Principal Researcher, Up to 500 Employees –Non-Profit Partner – Located in US, Must be Nonprofit College/University or Domestic Nonprofit Research Organization or Federally Funded R&D Center 3 Phase Program Visit us at SBIR/STTR Program

Visit us at Disaster Assistance Disaster Loans for Federal Declared Disaster Zones –Business –Homeowners –Renters Physical Damage –Max $200K – Home Loans –Max $40K - Personal Property Loans Business –Max $2.0M – Business Loans Economic Injury Disaster Loans Terms –Interest rates - typically near 4% –Up to 30 years

Upcoming FREE Seminars Access to Capital –Every Wednesday at 10:00am Doing Business With the Federal Government –Thursday, April 12 th : 9:00am – 1:00pm –Thursday, May 10 th : 9:00am – 1:00pm –Thursday, June 14 th : 9:00am – 1:00pm SBA Certification Programs –Thursday, April 26 th : 9:00am – 1:00pm –Thursday, May 24 th : 9:00am – 1:00pm –Thursday, June 28 th : 9:00am – 1:00pm Visit us at Other Programs

Upcoming FREE Events Meet the Lenders & Counselors –Tuesday, April 17 th : 8:30am – 3:00pm –Radisson Hotel Valley Forge Independence Ballroom st Avenue King of Prussia, PA –Register at: Subject Line: “Registration – Meet the Lenders 4/17/2012” Include Name, Company Name, Address, Contact Numbers, and Mailing Address Visit us at Other Programs

Future FREE Seminars & Events Please Check Our Events Calendar For All Upcoming SBA Events in Eastern PA ?state=PA Visit us at Other Programs

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Visit us at Contact Information Michael Kane Business Development Specialist (610) 382 – 3085 Visit us at