1. U.S. Small Business Administration The Three C’s of the SBA

2.  Created in 1953 by President Dwight D. Eisenhower  Provide the Public with: (3 C’s) Mentoring Counseling Access to Capital Government Contracting  Small Business Resource Guide 2

3.  SBA partners with financial institutions  SBA’s role is primarily a guarantor of business loans made by financial institutions  Disaster Loans - The SBA only offers direct loans in the event of a declared disaster order (separate division)  No direct grants from SBA for starting or expanding a business www.grants.gov 3

4.  Counseling Small Business Development Center (SBDC) SCORE Women’s Business Center (WBC) Veteran’s Business Outreach Center (VBOC)  Contracting Procurement Technical Assistance Center SBA Economic Development Specialists SBA Procurement Center Representatives 4

5.  Capital Banks Credit Unions Certified Development Companies (CDC) Microlenders 5

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7. 7  Who is eligible for SBA loans?  What criteria does the SBA evaluate?  Where do you go to get an SBA loan?  Why use the SBA loan programs?  How do you get started?

8.  Size of Business  Type of Business  Borrower Qualifications & Character  Use of Proceeds 8

9. 9  Ability to repay the loan on time from the projected operating cash flow  Feasible business plan  Management expertise and commitment necessary for success  Sufficient funds to operate the business on a sound financial basis  Adequate equity invested in the business (no 100% financing)  Sufficient collateral including personal guarantees

10. 10  SBA guaranteed loans are made by business lenders at financial institutions  No direct loans from the SBA  Lenders have the forms necessary

11. 11  Cannot qualify for conventional financing on reasonable terms  Longer Maturities Lowers Monthly Payment Improves Cash Flow  No Balloon payments on 7(a) loans  No Prepayment Penalties on 7(a) loans

12. 504 Certified Development Company (CDC) Loan Program and 7(a) Loan Program Loans Available up to $5 Million 12

13.  Long-term, Fixed-asset Financing to: Purchase Land and Existing Building Purchase Land for New Construction Building Renovation or Expansion Purchase Major* Machinery / Equipment  Financing Structure: SBA (CDC):up to 40% of total project costs Lender:50% of total project costs Borrower:10%* of total project costs 13

14.  Most used SBA Loan Program  Wide range of financing needs Funding for start-up businesses Purchase existing business Expand/renovate facilities Finance working capital/receivables Construction Refinancing* 14

15.  Loan Amounts up to $350,000  $0 Upfront Guaranty Fee to Borrower 15

16.  Veterans  Service-disabled veterans  Soon to be discharged active-duty service members eligible for the military’s Transition Assistance Program  Current Reservists and National Guard members  Current spouse of all of the above  Widowed spouse of: a service member who died while in service, or a veteran who died of a service-connected disability 16

17.  Veterans are 45% more likely to be self- employed.  2.4 million, or 9 percent of all U. S. small businesses are veteran owned.  Veteran-owned small businesses generate owner $1 trillion in sales. 17

18. Since Year 2008 Veterans Only  Dollars Lent to Veterans = $170,000,000  Average Size Veteran Loan = $264,000  Loans to Veterans = 644  Jobs Created and Retained = 8,482 18

19. 19 Step 1: Create / Update your Business Plan  Free Counseling from SBA Resource Partners Step 2: Visit a Lender  Lender helps choose appropriate SBA Loan  Be Prepared Treat meeting like a job interview Having supporting financial documentation

20. U.S. Small Business Administration Indiana District Office Presented by David Puls Lender Relations Specialist (317) 226-7272 ext. 125 david.puls@sba.gov www.sba.gov/in