jo ann lawrence louisiana district office aid counsel assist protect the interests of small...
TRANSCRIPT
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Jo Ann Jo Ann LawrenceLawrence
Louisiana Louisiana District Office District Office
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Aid Counsel Assist Protect the interests of small
business concerns Support Champion small businesses
SBA's Mission and PurposeSBA's Mission and Purpose
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We help people get into business, stay in business, grow and prosper.
Simply put………………Simply put………………
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Programs Of AssistancePrograms Of Assistance
Financial Assistance Programs
Non-Financial Assistance
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Non-Financial Assistance ProgramsNon-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
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Surety Bond ProgramSurety 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.
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HubZone Empowerment HubZone Empowerment ContractingContracting
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.
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Eligibility RequirementsEligibility Requirements
• Business located in designated HubZone area
• 35% of employees reside in HubZone
• 51% Unconditionally owned by U.S. Citizens
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Section 8(a) BusinessSection 8(a) BusinessDevelopment ProgramDevelopment 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.
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Section 8(a) ProgramSection 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
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Section 8(a) ProgramSection 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.
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ACCESS TO CAPITALACCESS TO CAPITAL
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ATTENTION!!
SBA SBA DOES NOT DOES NOT offer offer grants to start or grants to start or
expand small expand small businesses, although businesses, although SBA does offer a wide SBA does offer a wide
variety of loan variety of loan programs for these programs for these
purposes.purposes.
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Financial Assistance ProgramsFinancial Assistance Programs 7(a) Loan Program
SBA Express Caplines America’s Recovery
Capital (ARC)
Export Working Capital Program (EWCP)
International Trade Loans
504 Loans Small Business
Investment Company (SBIC) Program
Angel Capital Electronic Network (Ace-Net)
Microloan Program Disaster Assistance
Program
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7(a) Guaranty Loan Program7(a) Guaranty Loan Program
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.
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Use Of Loan ProceedsUse Of Loan Proceeds
Start-up
Expansion
Working Capital
Inventory
Machinery/Equipment
Furniture/Fixtures
Purchase/Construct
building
Business buyout Leasehold
improvements Debt restructure
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Terms and Interest RatesTerms and Interest Rates
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.
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FeesFees
SBA charges the lender a nominal fee for SBA to provide the guaranty.
Under Recovery Act, upfront guaranty fees eliminated until 12/31/2009
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New SBA New SBA ExpressExpress Loan Program 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
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AMERICA’S RECOVERY CAPITAL AMERICA’S RECOVERY CAPITAL (ARC) LOANS(ARC) LOANS
• Begins June 15, 2009
• Up to $35,000
• 100% Guarantee by SBA
• Deferred Payment
• Interest Free
• No upfront SBA Fees
• Commercial Lenders
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AMERICA’S RECOVERY CAPITAL AMERICA’S RECOVERY CAPITAL (ARC) LOANS(ARC) LOANS
• ELIGIBILITY• Established business• Viable• For Profit• Small• Struggling to make
payments• Not in default
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AMERICA’S RECOVERY CAPITAL AMERICA’S RECOVERY CAPITAL (ARC) LOANS(ARC) LOANS
• USE OF PROCEEDS • Mortgages• Term Loans & Revolving Lines of
Credit• Capital leases• Credit card obligations• Vendors notes payable• Suppliers• Utilities
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AMERICA’S RECOVERY CAPITAL AMERICA’S RECOVERY CAPITAL (ARC) LOANS(ARC) LOANS
• Disbursed within six months
• Payment deferred for 12 months
• Five years to repay
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PATRIOT EXPRESSPATRIOT EXPRESS
• Loans up to $500,000
• 90 % Guarantee until Recovery Act Funds are exhausted or 9/30/2010
• Interest rates 2.25% - 4.75%
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PATRIOT EXPRESSPATRIOT 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
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COMMUNITY EXPRESS “VERY SMALL COMMUNITY EXPRESS “VERY SMALL BUSINESS” LOAN PROGRAMBUSINESS” LOAN PROGRAM
• 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
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Microloan ProgramMicroloan 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.
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What do these corporations What do these corporations have in common with hundreds of have in common with hundreds of
thousands of other businesses?thousands of other businesses?
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They have all beenThey have all been helped helpedby theby the
U.S. Small Business U.S. Small Business Administration!Administration!
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Louisiana District OfficeLouisiana District OfficeOne Canal PlaceOne Canal Place
365 Canal Street, Suite 2820365 Canal Street, Suite 2820New Orleans, LA 70130New Orleans, LA 70130
Telephone: (504) 589-6685Telephone: (504) 589-6685Fax: (504) 589-2339Fax: (504) 589-2339
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Call the SBA Answer Desk
1-800-U-ASK-SBA
(1-800-827-5722)
Louisiana District Office
(504) 589-6685
Please visit our Louisiana SBA Web Site - http://www.sba.gov/la
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““Supporting the Formation, Supporting the Formation, Growth, Prosperity, and Viability Growth, Prosperity, and Viability of Louisiana’s small businesses.”of Louisiana’s small businesses.”
Louisiana District Office
Thank you!!