1. SBA Cleveland District Office SBA Loan Programs ODJFS Akron Mark Hansel, SBA (216-522-4191) September 22, 2009

2. SBA Cleveland District Office The SBA Guaranty  Guaranty loans  Not a direct lender  Most banks are active

3. SBA Cleveland District Office SBA Finance  Lender driven  Guaranty up to 90% under Recovery  Usually 50%-85%  Max of $2 million for 7(a)

4. SBA Cleveland District Office The Usual Process  Apply to the bank  May recommend SBA support  If declined, find out why

5. SBA Cleveland District Office Likely SBA Situations  Start-ups  Changes of ownership  Collateral shortfalls

6. SBA Cleveland District Office SBA Eligibility  Must be “small”  Good character and credit  US citizen or LPR  Business type

7. SBA Cleveland District Office Types of Business  For profit  Active, not passive  No to certain types (like gambling)

8. SBA Cleveland District Office SBA Guarantee Fees  Waived under Recovery  Graduated (2,3,3.5%)  May be financed

9. SBA Cleveland District Office SBA Interest Rates  Really a market rate  Usual limits of P+2.25-2.75%  May be higher under Express

10. SBA Cleveland District Office SBA Credit Policy  Repayment ability  Historic or projected earnings  Reasonable projections

11. SBA Cleveland District Office SBA Collateral Policy  “Take all” usually  May be relaxed under Express

12. SBA Cleveland District Office Who Guarantees?  20% or more ownership  Perhaps under 20%

13. SBA Cleveland District Office SBA Loan Uses and Terms  Working capital up to 7 years  Equipment up to 15 years  Real estate up to 25

14. SBA Cleveland District Office The Express Family  Regular, Patriot and Community  Can do lines and term loans  Loan limits vary

15. SBA Cleveland District Office SBA Resources  www.sba.gov www.sba.gov  1-800-U ASK SBA  mark.hansel@sba.gov mark.hansel@sba.gov  216-522-4180 for Cleveland office