Transcript Small Business Administration

AGENDA
Background Information
SBA
Counseling
Lending
Government Contracting
http://www.sba.gov/aboutsba/history.html
http://www. myownbusiness.org/course_sba.html
Free Courses On Line
Maximum Size Standards
• Manufacturing
– 500 employees or less
• Wholesaling
– 100 employees or less
• Service and Retail
– $6 million or less in annual receipts
• There are many variations so check with the District Office
if you feel you business is close to these maximums
SBA in Hawai‘i
• Counseling and Training
• Financial Help – Loans
• Government Contracting
– Small Business Set Asides
– 8(a) Sole Source Contracts
– Women-owned Businesses
– HUBZone Businesses
Small Business Resource Center
Counseling Partners
•
•
•
•
SBRC – Library/Computers – Honolulu & Moloka‘i
SCORE – volunteers, counsel in skill areas
WBC – Women-owned small businesses
Small Business Development Center Network
– Professional counselors
– In Hilo, Kihei Maui, Honolulu, Kaua‘i Com. College
– Under University of Hawai‘i at Hilo
Financial Assistance
• Loans
– Primarily made by private lenders, with SBA
guaranties
– Guaranties are generally up to 85% of loans to
$150,000; 75% of loans above $150,000
SBA Borrower Requirements
•
•
•
•
•
•
Good character
Management expertise and commitment to succeed
Reasonable personal contribution or business equity
Feasible business plan
Sufficient collateral
Ability to repay loan from projected operating cash flow
Lending History
2004
2005
518 Loans
428 Loans
$63.2 Million
$52.9 Million
Loan Activity, FY 2006
Loan Activity, FY 2006 - Nine months ended 6/30/06
Nine Months Ended 6/30/06
Bank
Bank of Hawaii
First Hawaiian Bank
Central Pacific Bank
Capital One
Citizens Security Bank
American Savings Bank
Hawaii National Bank
Comerica Bank
UPS Capital Business Credit
Bank of Guam
Wilshire State Bank
Branch Banking & Trust Co.
Center Bank
Stearns Bank National Association
No. of Loans
Loan Amount(000's)
Gross
SBA
94
28
25
25
19
6
4
2
2
2
1
1
1
1
6446.1
3599.6
1869.0
1035.0
2819.8
550.0
598.6
1863.2
1278.0
90.0
1850.0
400.0
350.0
200.0
3517.6
2192.6
1211.7
517.5
1775.1
371.3
463.3
1397.4
958.5
76.5
1387.5
300.0
262.5
170.0
Sub-total
211
22949.3
14601.5
Business Loan Center LLC
Innovative Bank
Microloan
Total 7(a) Loans
29
27
1
268
789.0
285.0
21.5
24044.8
670.7
242.3
21.5
15536.0
HEDCO 504 Loans
Lokahi Pacific 504 Loans
16
1
6473.0
1122.0
6473.0
1122.0
285
31639.8
23131.0
Grand Total
COMMUNITYEXPRESS
LOAN
U.S. Prime Contract Dollars FY 2000-2005
350
Prime $ (billion)
300
250
200
150
100
50
0
Total $ (billion)
SB $ (billion)
2000
2001
2002
2003
2004
2005
200.9
219.6
235.4
277.5
299.9
314
44.7
50.1
53.3
65.5
69.2
79.6
Congressional Goals
Prime
Small Business
SDB
Women Owned
Hub Zone
Veteran
23 %
5%
5%
3%
3%
State of Hawaii Federal Procurement Dollars
FY 2000-2005
Federal Procurement $ (billion)
2.5
2
1.5
1
0.5
0
2000
2001
2002
2003
2004
2005
Total $ (billion)
1.234
1.42
1.544
1.933
2.008
2.2
SB $ (billion)
0.449
0.507
0.532
0.728
0.814
Percentage to Sm Bus
36
36
35
38
41
Percentage to Small Business
Federal Procurement to Small Business
Percentage to Small Business
FY 2000-2005
50
40
30
The Nation - %
20
Hawai‘i - %
10
0
2000 2001 2002 2003 2004 2005
The Nation - %
22
23
23
24
23
25
Hawai‘i - %
36
36
35
38
41
43
Achievements in Hawai‘i – 2005
$ Million
%
$588
43 %
Small Disadvantaged Bus. $399
29 %
Small Business
Woman Owned Business
$102
8%
HubZone
$ 57
4%
Veteran – SDVOSB
$ 2
--
Certifications Available through SBA
• 8(a)
• Small Disadvantaged Business (SDB)
• HUBZone (Historically Underutilized
Business Zone)
http://www.sba.gov/8abd/
The 8(a) Program
•
•
•
•
•
•
Must be a small business
A for-profit small business
Owned/Controlled by a minority person
A U.S. Citizen
Minimum 2 year experience by the firm
Personal assets of < $250,000
– Excludes home and business assets
Benefits of 8(a) Program
• Firms can receive sole-source contracts
below $3 million
• Firms can compete above $3 million limited
to 8(a) firms only
• Mentor/protégé program is available
• Joint Venture permitted on larger contracts
The 8(a) Program
8(a) $ Million
FY 2003
FY 2004
FY 2005
$268
$229
$283
The 8(a) Portfolio
As of July 2006
210 firms in the portfolio
In 2005 – 110 firms contracts/mods
716 transactions
The Native Hawaiian Organization (NHO) Program
An NHO is a community service organization serving Native Hawaiians
A non-profit corporation that has filed articles of incorporation with the
Hawai‘i Department of Commerce and Consumer Affairs
Is controlled by Native Hawaiians
Whose activities principally benefit Native Hawaiians
For profit 8(a) firms may become subsidiaries of NHOs
The NHO must acquire 51% of the 8(a) firm
The 8(a) firm can be located anywhere in the United States
The Benefit – non-bid contracts of unlimited size
Current 8(a) Firms Owned by Native Hawaiian Organizations
8(a) Firm
Principal of the
8(a) Firm
NHO
Principals of
The NHO
JTSI, Inc.
Cynthia Pacheco
Nā ‘Ōiwi Kāne
Ron Jarrett
Bruss Keppeler
The Hana Group, Inc.
Alvin Pauole
Hui ‘O Hana Pono
David Cooper
HBC Management
Irwin Cockett
Dawson Group, Inc.
Christopher Dawson
Hawaiian Native
Corporation
Beadie Dawson
Pelatron, Inc.
Thomas Aimoku
McClellan
Pacific Center for
Economic Development
Harvard Kim
Kimo Kahoano
Honolulu Marine LLC
Charles Pires
Mana‘o Nui, Inc.
Bryan Ho
Akimeka Technologies LLC
Phil Kahue
Alaka‘ina Foundation
Vaughn Vasconcellos
Hawai‘i International
Environmental Svc.
Mayumi Randall
Hui O Hanohano
George Jones
Omega Global Solutions
Dennis Keohokalole
Royal Hawaiian
Foundation
Ty Dennis
Kukulu LLC
Todd Shishido
NH Legal Defense &
Education Fund
Walter Kaneakua
Dwight Kealoha
Kuhana Associates
Paul Komeiji
The Teho Company
Matthew Teho
Honu‘apo
Kendis Teho