U.S. Small Business Administration SBA Programs USF-SBDC Small Business Conference May 01, 2013 Robert Chavarria Senior Area Manager South Florida District Helping you start, grow and succeed. South Florida District

SBA Mission Statement Maintain and strengthen the nation’s economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters. SBA National Website

SBA Programs And Services Business Training and Counseling Information to Start and Run your Business Financial Assistance Federal government Contracting Assistance Disaster Assistance

SBA 3 C’s of Programs Let’s summarize current SBA assistance into the 3 C’s: o Counseling o Capital o Contracting Now let’s add o D for Disaster Assistance and o E for Export Assistance

Business Training and Counseling Small Business Development Centers Procurement Technical Assistance Centers SCORE Women Business Centers Veteran’s Business Outreach Centers SBA Website – Training and Counseling Other Local Partners

SBA Loan Programs 7(a) Guaranteed Loan Programs – Basic 7(a) – CAPLines (Lines of Credit) – Export Working Capital – International Trade – Export Express – Express – Small Rural Advantage – Small Business Advantage – Community Advantage – Patriot Express – Dealer Floor Plan Loan Program 504 Economic Development Loans Non 7(a)Micro loans

Maximum Loan Amounts 7(a) Basic Loan $ 5,000,000 CAPLines$ 5,000,000 SBA Express $ 350,000 Small Loan Advantage$ 250,000 Community Advantage $ 250,000 Patriot Express $ 500,000 Export Working Capital$ 5,000,000 International Trade$ 5,000,000 Export Express $ 500,000 Small Rural/Lender Advantage $ 350, Facilities Loans Up to $5,000,000 – SBA Portion Microloans$ 50,000

Lenders will Look At 5 C’s of Credit Credit - Beacon Score/FICO 650+ Character – How have you paid in the past? Capacity – Will you be able to repay the loan? Collateral – Properties, cash. Experience – More experience means better credibility to the business. Conditions (Industry Risk) Capital (Includes Start Up Investment)

Loan Requirements  Credit  Investment  Collateral  Ability to Pay

What SBA Looks For Good Character Management Expertise and Commitment Feasible Business Plan Adequate Equity or Investment (25% to 30% injection for new business) Sufficient Collateral Ability to Repay the Loan from Earnings

What The Lender Looks For Overall risk of the loan Ability to repay the loan from earnings Do financials accurate reflect the business operations Do financials meet business ratio evaluation Accuracy of application

Business Plan The business plan is perhaps one of the most important documents you can have for your small business; it is a roadmap for your business venture; one which can assist you greatly. If you don’t know where you are going, and you don’t have a road map, any road will get you there...

Eligible Uses of an SBA Loan Any Good Business Purpose Construction Construction Land & Building Land & Building Line of Credit Line of Credit Leasehold Improvements Leasehold Improvements Machinery & Equipment Machinery & Equipment Expansions & Renovations Expansions & Renovations Inventory & Working Capital Inventory & Working Capital Refinancing Business Debt Refinancing Business Debt Purchasing of Existing Small Purchasing of Existing Small Business Business

Ineligible Uses of Loan Proceeds Speculation Partial Change of Ownership Payment to Principals Delinquent Payroll/Sales Taxes SBA Loan

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

Benefits of 7(a) Loans REDUCES LENDER’S RISK of LOSS Broadens Bank’s Lending Activities: Start-Ups High Risk Businesses Longer Terms Collateral Shortfalls Allows banks to increase its lending limits to borrowers. Community Reinvestment Act (CRA) Increased Profitability to Banks Selling loans on the Secondary Market.

Other Types of Financial Assistance DISASTER LOANS – For Home, Business, Economic Injury (EIDL), and for Deploying Reservists (MREID) SURETY BONDS – Bid, performance, payment, and ancillary Small Business Investment Companies (SBIC) SBIR – Small Business Innovation Research Program STTR – Small Business Technology Transfer Program

District vs Tampa Bay Lending South Florida District o ,638 Loans for $783,532,900 o loans YTD for $338,084,300 On pace to exceed $800 million Tampa Bay Area (Nine County Area) o Loans for $247,608,700 (30% of loans; 31% of Dollars o Loans YTD for $123,251,900 (33% of District; 36 of Dollars) On pace to exceed $295 Million for this FY; a 19% increase over 2012 Hillsborough County o Loans for $69,058,500 (33% of Tampa Bay Area; 28% of Tampa Bay Area Dollars) o Loans YTD for $44,691,600 (35% of Tampa Bay loans; 36%of Tampa Bay Dollars) On pace to exceed $107 Million, a 54% increase over 2012

National Export Initiative South Florida District Export Loan Volume Loans Loans Loans Note: Goal is to double exports by the end of Assistance through: Resource Partner Assistance USEAC’s District International Trade Officers Export Outreach Team formations

SBA Export Loan Programs Export Express Export Working Capital Program International Trade Loan Contact Charles Long (813) 228 – 2404 ext. 27

STEP Grant A partnership with the U.S. Small Business Administration, Enterprise Florida, Inc., the U.S. Commercial Services, and the SBDC Network Grants are offered to assist qualified business in Florida who are “new to export” to indentify growth strategies through the development of customized Export Marketing Plans. Contact Maria Yepes – USF-SBDC (813)

Formal SBA Certification Programs 8(a) Business Development HUBZone Empowerment Contracting Woman-owned Small Business (WOSB)  Self-Certifications Small Business – NAICS Codes Veteran-owned Small Business (VOSB) Service Disabled Veteran-owned Small Business (SDVOSB) VA Verification Program Federal Contract Certifications

South Florida District Contracting South Florida District Contracting Offers Offers for $161,283, Offers for $168,127, Offers for $390,735,554 Note: Offers are dropping, however the Dollar amounts are rising

Nature of contracts: Contracts are awarded by procuring agencies to SBA as the prime contractor. SBA subcontracts to the named 8(a) firm. Special contract clauses delegate administration responsibility to the procuring agency. Competitive threshold: When the estimated value (including options) exceeds $4 million for services and construction and $6.5 million for manufacturing, requirement will be competed among 8(a) firms. 8(a) Contract Process

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

Women Owned Small Business Federal Contract Certification Program – Provides Equal Access to Federal Contracting Opportunities – For Women Owned Small Business (WOSB) – Foe Economically Disadvantaged Women Owned Small Businesses (EDWOSB) – Allows Contracting Officers to “Set Aside” specific contracts for WOSB’s and EDWOSB’s – Effective February 4, 2011 – Standards_Table.pdf Standards_Table.pdf

For manual applications, contact your local SBA Office where to obtain a paper application. The South Florida District telephone number is (305) If you want to apply using the electronic system, send an to further guidance and Application Process

Seek Additional Assistance  Procurement Technical Assistance Center (PTACs)  Small Business Specialists  Procurement Center Representatives (PCRs)  Commercial Marketing Representatives (CMRs)

SBA Programs for Veterans Entrepreneurship Boot camp for Veterans with Disabilities Entrepreneurship Boot Camp for Families of Veterans with Disabilities Operation Endure and Grow – For National Guard and Reservists VWISE – For Women Veterans Boots to Business – For Transitioning Veterans in TAP DOD Installations

Other SBA Initiatives Affordable Care Act Encore Entrepreneurs National Export Initiative

Affordable Care Act Internal Revenue Service: Dept. of Health and Human Services: Dept. of Labor: U.S. Small Business Administration: ww.sba.gov/healthcare

U.S. Small Business Administration SBA Financing and Other Programs May 01, 2013 Presenter Robert Chavarria Senior Area Manager South Florida District (813) ext 24 Charlotte, DeSoto, Hardee, Hillsborough, Manatee, Pasco, Pinellas, Polk, Sarasota