1. American Chamber of Commerce Executives July 30, 2009
Raleigh, North Carolina

2. HISTORY OF SBA Reconstruction Finance Corporation Great Depression
Smaller War Plants Corp W W II
1951 Small Defense Plants Administration Korean War
July 30, Small Business Administration

3. HISTORY OF SBA
1954 Direct & Guaranteed Lending
1958 The Investment Company Act
1964 Equal Opportunity Loan Program

4. The American Recovery and Reinvestment Act of 2009
$787 Billion

5. Recovery Act Apportionment: $787 billion
$25.7
$139.5
$288
$95.2
$147.7
$90.9

6. The American Recovery and Reinvestment Act of 2009
SBA = $730 million

7. SBA Business Loan Programs:
$375 million for temporary fee reductions or eliminations on SBA loans and increased SBA guaranteed shares, up to 90 percent for certain loans

8. GUARANTY GUARANTY PERCENTAGES 7(a) Loans up to $150,000 85% 90%
Patriot Express $500,000 75%/85% 90%
SBAExpress $350,000 50%
CommunityExpress $250,000 75%/85% 90%

9. GUARANTY FEES Term of 12 months or less - 1/4 of 1%
Term over 12 months:
Loans up to $150,000
2% of guaranteed amount
Loans from $150,000 to $700,000
3% of guaranteed amount
Loans over $700,000
3.5% of guaranteed amount
Additional fee of 0.25% on guaranteed amount in excess of $1 million

10. SBA Loan Secondary Market:
SBA loans to Brokers/Dealers
Temporary secondary market for loans

11. Troubled Asset Relief Program (TARP)
U.S. Treasury has committed up to $15 billion to purchase SBA loans in the secondary market.

12. TALF INITIATIVE
Joint Treasury – Federal Reserve program
Intended to stimulate secondary market
$200 billion for asset-backed securities

13. TALF INITIATIVE
Wall Street Journal, 3/4/09

14. SBA 504 LOAN PROGRAM Example: $3,750,000 Project % of
$ Amount Project Security
Bank Loan $1,875, % 1st Lien
SBA/CDC Loan $1,500, % 2nd Lien
Borrower $ 375, %*
Total: $3,750, %
Borrower 10%
Bank Loan 50%
CDC 40%

15. Certified Development Company Loan Program (504):
Reduce/eliminate fees
Borrower fee: 1.5% of debenture amount
Lender fee: 0.5% of 1st mortgage amount
Refinancing of eligible debt

16. Microloan Program:
$30 million for expanding program, enough to finance up to $50 million in new lending and $24 million in technical assistance grants to micro-lenders

17. America’s Recovery Capital Program:
$255 million for a new loan program to help “viable” small businesses meet existing, non-SBA debt payments
Loans up to $35,000
SBA pays interest
100% guaranteed

18. Surety Bond Guaranty Program:
$15 million for expanding SBA’s Surety Bond Guarantee program
Raise bond limit to $5 million from $2 million

19. Small Business Investment Companies:
Expands leverage capability for
Small Business Investment Companies

20. SBIC SUCCESS STORIES Outback Steakhouse Teledyne Compaq Computers
Oracle
Sybase
America Online
Ben & Jerry’s
Apple
Cray Research
Federal Express
Intel
Staples
Winnebago
Gymboree

21. Other Provisions:
$25 million for additional staff
$20 million for technology systems
$10 million for the Office of Inspector
General

22. TAX INCENTIVES
Extends Section 179 expensing
Allows carry back operating losses from 3 to 5 years
Lowers estimated tax payments for those with adjusted gross income under $500k
Provides tax credits for hiring disadvantaged people
Allows partial exclusion on gains

23.
(800) U-ASK-SBA