Transcript No Slide Title

Jo Ann Lawrence
Louisiana District
Office
SBA's Mission and Purpose
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Aid
Counsel
Assist
Protect the interests of small
business concerns
Support
Champion small businesses
Simply put………………
We help people
get into
business, stay
in business,
grow and
prosper.
Programs Of Assistance
 Financial
Assistance
Programs
 Non-
Financial
Assistance
Non-Financial Assistance Programs
Government Contracting Assistance
($220B Market Place)
• Prime Contracts
• Subcontracting Assistance
• Certificate of Competency
(COC)
• Size Determination
Surety Bond Program
Procurement Network (DSBS),
SUB-Net, and Tech-Net
Small Business Innovation Research
Program (SBIR)
Hubzone Empowerment
Contracting
Business Information Centers (BICs)
Small Business Development Centers
(SBDCs)
Service Corps of Retired Executives
(SCORE)
Small Disadvantaged Business
Certification (SDB)
Section 8(a) Business Development
Program
Section 7(j) Management and
Technical Assistance
BusinessLaw.gov
SBA Small Business Classroom
Surety Bond Program
SBA guarantees bid,
performance; payment and
ancillary bonds up to $5 million
issued by surety companies for
construction, service and supply
contracts, and reimburses the
sureties up to 90% of the losses
sustained if the contractor
defaults.
HubZone Empowerment
Contracting
SBA encourages economic
development through the
establishment of preferences for
award of federal contracts to
small businesses located in
designated HubZone areas. This
fiscal year, the goal for Federal
buying agencies is 3% of its
procurement dollars.
Eligibility Requirements
• Business located in
designated HubZone area
• 35% of employees reside in
HubZone
• 51% Unconditionally owned
by U.S. Citizens
Section 8(a) Business
Development Program
A business
development
program whereby
SBA has the power
to obtain Federal
Government
contracts, and SBA,
in turn, subcontracts
these contracts to
eligible Section 8(a)
certified businesses.
Section 8(a) Program
General Eligibility criteria:
• Small business
• 51% owned, controlled and daily
managed by socially and economically
disadvantaged individuals.
• In business for at least 2 years
• Must demonstrate requisite
management and technical capability
• Non-minority women may be eligible
Section 8(a) Program
• SBA assists these firms in the growth
and development of their businesses,
and helps them in gaining equal
access, improving their ability to
compete on an equal basis in the
mainstream of the American economy
• Currently 110 firms in Louisiana
• Participation in the program is for a
maximum of 9 years.
ACCESS TO CAPITAL
ATTENTION!!
SBA DOES NOT offer grants
to start or expand small
businesses, although SBA does
offer a wide variety of loan
programs for these purposes.
Financial Assistance Programs
 7(a) Loan Program
 SBA Express
 Caplines
 America’s Recovery
Capital (ARC)
 Export Working Capital
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Program (EWCP)
International Trade
Loans
504 Loans
Small Business
Investment Company
(SBIC) Program
Angel Capital Electronic
Network (Ace-Net)
Microloan Program
Disaster Assistance
Program
7(a) Guaranty Loan Program
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Generally, SBA may
guarantee up to $1.5
million of a loan made to a
small business by a bank
or non-bank lender.
The guaranty rate is 90%
until Recovery Act Funds
are exhausted or 9/30/2010
The guarantee SBA
provides encourages the
lender to make more loans
to small businesses.
Use Of Loan Proceeds
 Start-up
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Business buyout
 Expansion
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Leasehold
improvements
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Debt restructure
 Working
Capital
 Inventory
 Machinery/Equipment
 Furniture/Fixtures
 Purchase/Construct
building
Terms and Interest Rates
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Terms and Interest Rates are
negotiated between borrower and
lender; however, SBA places a cap
on the interest rate a lender can
charge.
Typically, longer terms are given to
re-pay SBA guaranteed loans.
Fees
 SBA charges the lender a
nominal fee for SBA to
provide the guaranty.
 Under Recovery Act,
upfront guaranty fees
eliminated until
12/31/2009
New SBA Express Loan Program
 Faster, Easier, More
Efficient
 Maximum of $350,000
 Interest Rates -- fixed or
variable, tied to prime.
 Maturity may go up to 7
years with possible
extension. SBA provides a
50% guarantee
 Lender uses own forms
AMERICA’S RECOVERY CAPITAL
(ARC) LOANS
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Begins June 15, 2009
Up to $35,000
100% Guarantee by SBA
Deferred Payment
Interest Free
No upfront SBA Fees
Commercial Lenders
AMERICA’S RECOVERY CAPITAL
(ARC) LOANS
• ELIGIBILITY
• Established business
• Viable
• For Profit
• Small
• Struggling to make
payments
• Not in default
AMERICA’S RECOVERY CAPITAL
(ARC) LOANS
• USE OF PROCEEDS
• Mortgages
• Term Loans & Revolving Lines of
Credit
• Capital leases
• Credit card obligations
• Vendors notes payable
• Suppliers
• Utilities
AMERICA’S RECOVERY CAPITAL
(ARC) LOANS
• Disbursed within six
months
• Payment deferred for 12
months
• Five years to repay
PATRIOT EXPRESS
• Loans up to $500,000
• 90 % Guarantee until Recovery
Act Funds are exhausted or
9/30/2010
• Interest rates 2.25% - 4.75%
PATRIOT EXPRESS
• ELIGIBILITY
• Veterans
• Service-disabled Veterans
• Active-duty participants in
Military’s Transition Assistance
Program
• Reservists & National Guard
• Current spouses of the above
• Widowed spouse of service member
or veteran who died during service
or of service-connected disability
COMMUNITY EXPRESS “VERY SMALL
BUSINESS” LOAN PROGRAM
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Get up to $50,000
Low interest rates
No business plan needed
No financial statements necessary
No Tax Returns required
No collateral requested
No income verification
90% Guarantee
Microloan Program
The MicroLoan Program provides small
loans ranging from $100 to $35,000. Under
this program, the SBA makes funds
available to nonprofit intermediaries;
these, in turn, make the loans. The average
loan size is $10,000. Completed
applications usually are processed by the
intermediary in less than one week. If the
borrower secures financing from another
source, the loan limit is $105,000.
What do these corporations
have in common with hundreds of
thousands of other businesses?
They have all been
helped
by the
U.S. Small Business
Administration!
Louisiana District Office
One Canal Place
365 Canal Street, Suite 2820
New Orleans, LA 70130
Telephone: (504) 589-6685
Fax: (504) 589-2339
Please visit our Louisiana SBA
Web Site - http://www.sba.gov/la
Call the SBA Answer Desk
1-800-U-ASK-SBA
(1-800-827-5722)
Louisiana District Office
(504) 589-6685
Louisiana District Office
“Supporting the Formation,
Growth, Prosperity, and Viability
of Louisiana’s small businesses.”
Thank you!!