Neida Heusinkvelt (816)

 7(a) Loan Guaranty Program % Guarantees  Made by private lenders – not a direct loan program  Maximum loan amount can be up to $5,000,000  7(a) program requirements:  Good credit history  demonstrated record for success  good character  sufficient funds to operate the business at a profit  collateral the loan as fully as possible 2

 Flexible Maturities:  Up to 10 Years for working capital  Up to 25 years for fixed assets ▪ real estate, construction, equipment  Interest Rates:  Negotiated between borrower and lender, can be fixed or variable. However most interest rates for 7a business deals are variable rates, tied to prime rate.  Typically cannot exceed base rate plus 2.75% except with SBAExpress loans which can go higher 3

1 Yr or less Any $$ 0.25% Over 1 yr $127,500 or less 2.0% (lender keeps 25% of fee) Over 1 yr More than $127, % 7(a) Program Guaranty Fees: Maturity SBA Portion Guaranty Fee 4

 7(a) SBAExpress - Up to $350,000 and under - with 50% guaranty  - Under Small Business Jobs Act of 2010 SBA temporarily has increased the maximum loan SBX amount to $1,000,000 thru September 28, 2011  lender uses its own documentation  can be used for a variety of purposes, including funding working capital lines of credit  In past decade between 35-65% of SBA lending has been done thru this SBAExpress program!  (Community Express pilot version expired 4/30/ 2011.) 5

 7(a) Patriot Express - Up to $500,000 and under  75% - 85% guaranty  Started June 28, 2007 & extended to December 31, 2012  Same processing path as Regular SBAExpress  Created to Serve Special Customers  Honorably-discharged Veterans  Service-Disabled Veterans  Service Members Leaving Active Duty eligible for Transitional Assistance Program (TAP)  Reservists and National Guard Members  Current Spouses of any of the above  Widowed Spouse of a Service Member or Veteran who died during service, or of a service-connect disability 6

 7(a) Lender Advantage –  Up to $350,000 and under  75% - 85% guaranty  Started as a pilot program in the Midwest in May 2008  Key Features  Designed for small SBA loan volume lenders (rural banks and small community lenders)  Streamlined loan application  Simplified loan eligibility questionnaire  Expedited SBA target processing time - 5 days  New Pilot versions of Small Loan Advantage and Community Advantage Programs were added February 17,

Two brand new versions of the “original” Rural Lender Advantage program start February 15, 2011  Maximum loan size will be $250,000 So far, portfolio review of existing RLA loans showed streamlined process does not appear to negatively impact loan performance so SBA expanded its use Loans will provide a 85 percent guaranty for loans up to $150,000 and 75 percent for those loans greater than $150,000 Both new versions requires lenders to use SBA E- Tran Origination electronic submission method 8

CAPLINES Loans Used to meet short-term and cyclical working capital needs Can be a one project type deal or can be on a revolving basis. Three Types: Seasonal, Contract, Small Builder Also, Two Types of Asset Based Loans Are Available: Standard Asset Based Small Asset Based 9

 Loan size: $500,000 minimum - $5 million maximum  Maximum of 75% guaranty  Loan guaranty product for revolving LOCs that target retail dealers of new and used titleable inventory (automobiles, boats, RVs, motorcycles, mobile homes, etc).  Minimum loan maturity of 1 year and maximum of 5 years  Collateral must be a first lien on all titleable inventory acquired with proceeds for this loan.  Participating Lender must have existing floor plan financing policies and procedures to meet SBA approval.  Will remain available until September 30, It is a pilot 7(a) loan guaranty program – using same pool of funds as other 7(a) loans. 10

 Export Working Capital Loan 90% Guaranty Pre-Export and Post-Export Transactions can be Financed Paid back from proceeds of the export sales Maximum Loan size is $5.0 Million  International Trade Loan– Up to a 90% Guaranty Used for producing goods or services within the U.S. to export elsewhere Can help firms adversely affected by import competition Maximum Loan Size is $5.0 Million 11

 504 Fixed Asset Loan Long-Term financing for fixed assets like buildings & equipment (not vehicles). Up to $5.0 million in SBA-backed debentures – more for public policy goals like women-owned and veteran-owned businesses and manufacturers. Loan must generally create or retain one job for every $65,000 of debenture proceeds provided by the SBA. Available throughout KS and MO from CDCs Typical Expansion project is 50%/40%/10% 12

 Jobs Act Program started February 28 and ends September 27,  Specific pool of SBA debenture dollars set aside by Congress.  No minimum – max is $5 Million.  Uses the existing Certified Development Companies (CDC) processing procedure of the 504 loan program.  Existing business loan must be ballooning.  Existing loan incurred not less than 2 years ago must have been current for the past year with no payment being deferred or past due for more than 30 days.  Proceeds are to be used to refinance qualified debt with no money going to expansion or purchases.  Independent appraisal of the FMV of the project assets and any additional assets offered as additional collateral must be provided and dated within 6 months of the application.  85% of the refinance must have been originally eligible 504 purposes.  Structure is 50%/40%/10%. 13

 MICROLOAN - $35,000 or less  Not presently available thru SBA in the KC area but may be available locally from other state and economic development organizations.  SURETY BOND GUARANTEES – provides surety guarantees for the benefit of service businesses who have contracts that require surety bonding. This program is processed regionally in Denver CO  ARC Loan Program expired on September 30, This was a temporary program initiated by the Recovery Act of

 – new and improved….  – Kansas City area  KS SBDC Network – locations in Topeka, Emporia, Fort Hays, Garden City, Overland Park, Pittsburg, Lawrence, and Wichita  MO SBTDC Network –locations in Columbia, Warrensburg, Chillicothe, Joplin, Maryville, Kansas City, Springfield, St. Joseph  WBC – Lenexa KS  PAC- Kansas City MO, BIC – Kansas City MO  SCORE – chapters in most major cities 15August 19, 2011

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 Creates a documented niche reputation as “small business friendly” lender as compared to its peers.  Can provide an additional source of fee income.  The guaranteed portion of the loan is saleable on an active secondary market which can provide liquidity.  The guaranteed portion of SBA loans has a lower risk-based capital requirement.  Can provide support for loans with less than optimal collateral coverage.  SBA Certified Development Company (504) loans can provide fixed asset financing for up to 90% of the project cost. 18