The Small Business

Administration

Who We Are and What We Do

SBA

Contracting

Counseling Capital

Disaster Assistance

Then and Now 1954

• Direct loans

• Disaster loans

• Government procurement contracts

• Counseling and training

Today

• Guarantee loan programs

• Disaster loans

• Government procurement contracts

• Counseling and training

• Specialized outreach

• International trade assistance

District Office Leadership

Nancy Libersky-District Director nancy.libersky@sba.gov 612.370.2306 Brian McDonald-Deputy District Director brian.mcdonald@sba.gov 612.370.2337 Royce Nelligan-District Counsel royce.nelligan@sba.gov 612.370.2328

Public Affairs

Sarah Swenty – Public Affairs Specialist sarah.swenty@sba.gov 612.370.2316

Sharing local and relevant national SBA news with the public through all relevant means possible. Public Affairs is responsible for: • Internal and External Communications Planning and Implementation • News Releases and Media Advisories • Arranging Interviews and Speaking Opportunities • Graphic, Photography and Video Projects • Special Initiatives, i.e. the Emerging Leaders Program • Website and social media content creation • Writing stories about successful small businesses • Much more…

Success Stories

Sarah Swenty – Public Affairs Specialist sarah.swenty@sba.gov 612.370.2316

Sharing small business successes with a story about how the SBA (and/or our resource partners) helped them start or grow. To qualify as a SBA success story the business must: • Have been in business three years or longer. • Have their SBA loans (if applicable) in good standing • Be willing to complete an information release form.

The completed success story will be used : • As online content, both with our website and social media • Shared with our headquarters and may be picked up for broader use.

Emerging Leaders

To be eligible: • be located in the Twin Cities Metro , • generate revenues between $400K and $10M, • have been in business for at least three years, • have at least one employee besides the CEO, • and be committed to attend 13 workshops and

complete required course work.

www.sba.gov/emergingleaders

Annual FREE mini-MBA style training program for small to medium-sized business owners and CEOs in the Twin Cities and surrounding suburbs. Training focuses on small poised-for-growth companies with potential for job creation.

SBA

Contracting 8(a) Business Development Program • Assistance program for small disadvantaged

businesses to help them compete in the marketplace.

• Firms that are owned and controlled at least 51% by socially and economically disadvantaged individuals.

8(a) contracts with federal agencies used to facilitate business development. Information and application at www.sba.gov/8abd.

More Federal Government Certifications:

https://minnesota.feb.gov/programs/sadboc

SBA

Contracting

HUBZone Program • Place-based program designed to increase

investment and employment in distressed areas.

• Requirements: • Principal office in HUBZone • 35% of employees must reside in HUBZone • Must be small (per SBA size standards) • Must be at least 51% owned by U.S. citizen

• Prospective businesses apply for certification on

line. • www.sba.gov/hubzone

Business Opportunity

Shaun McClary-Business Opportunity Specialist shaun.mcclary@sba.gov 612.370.2320 Maribel Reigstad-Program Support Assistant maribel.reigstad@sba.gov 612.370.2321

• Counselors to America’s Small Business

• www.score-mn.org

SCORE

• Small Business Development Centers

• www.mnsbdc.com

SBDC

• Women’s Business Centers

• WomenVenture: www.womenventure.org

• Women’s Business Alliance at Entrepreneur Fund: www.entrepreneurfund.org

WBC

• Veterans Business Outreach Center

• www.vbocwbdc.org

VBOC

• www.sba.gov/mn

Microlenders

SBA

Counseling

Economic Development

Twila Kennedy-Economic Development Specialist SBDC Project Officer twila.kennedy@sba.gov 612.370.2300

SBA Loan Programs

• General Small Business Loans 7(a)

• Microloan Program

• 504 Loan Program

• Disaster Loans

SBA

Capital

Most Viable Business Profile

• Experienced Management

• High Debt Service Cash Flow

• Sterling credit

• Generous collateral

• Sound business idea

• Financial reserve

Factors that Determine this Range

• Overall economy

• Lender’s regulatory environment

• Lender’s liquidity (or lack thereof)

• Lender’s competitive environment

• Lender limits on terms and types of businesses

Least Viable Business Profile

• No management experience

• No potential chance of repayment

• Impractical business idea

• No financial reserves

• No equity investment

Lender Range→ SBA Range ←“No” Range

Borrower Benefits • Access to capital

• Improved Terms

– Lower Interest Rates

– Extended Maturity

• Refinance Can Improve Cash Flow

• Fees Can Be Rolled Into Loan

• Use of Proceeds – Land and building

– Expansion and renovation

– Equipment and fixtures

– Working Capital

– Inventory

– Debt Consolidation

– Other

SBA

Capital

Application Includes Business Profile

Management Experience

Loan Request

•Amount and Use of Proceeds

Repayment Terms

Collateral

Financial Statement

•Personal and Business, including tax returns

Projections – balance sheet, cash flow, income statement

General Small Business Loans 7(a)

SBA

• Guaranty

Lender

• Lends the money

• Services the loan

• Liquidates the loan

General Small Business Loans 7(a)

• Guaranty percent ranges from 50%-85%

• Maximum Terms

– Working capital/Equipment 10 years

– Real estate 25 years

• Fees (no fees on loans up to $125,000):

– Guaranty Fee: 2% - 3.75% depending on size of loan

– Ongoing Fee: .55%

• Rates:

– Variable depends on size and term - Prime +2.25 - +4.75%

– Fixed rates: www.colsonservices.com (News and Rates)

Veterans Advantage Qualifications

• Businesses must be 51% or more owned and controlled by an individual

or individuals in one or more of the following groups:

– Veterans (other than dishonorably discharged);

– Service-Disabled Veterans;

– Active Duty Military service member participating in the military’s Transition

Assistance Program (TAP);

– Reservists and National Guard Members; or

– Current spouse of any Veteran, Active Duty service member, or any Reservist or

National Guard member; or widowed spouse of a service member who died while in

service or of a service-connected disability.

Veterans Advantage Loan Fees

SBA Express & SBA

Advantage

• 7(a) loans under $125,000 and all SBA Express Loans

• Upfront fee is zero

• Ongoing fee is .55%

SBA Veterans Advantage

• $125,001-$150,000

• Upfront fee is 1%

• $150,001-$350,000

• Upfront fee is 1.5%

• All - Ongoing fee is .55%

SBA Advantage

• $350,001-$700,000

•Upfront fee is 3%

• $700,001-$5,000,000

•Upfront fee is 3.5%/3.75%

• All - Ongoing fee is .55%

Military Reservist Economic Injury Disaster Loan (MREIDL)

• Reservists called to active duty qualify.

• Direct SBA Loan

• 4% Interest Rate

• Up to $2 Million

• Up to 30 Year Term

• Applies to Military Conflicts occurring or ending on or after March 24,

1999

Minnesota Reservist and Veteran Business Loan Program (DEED)

• One-time loans of $5,000 to $20,000, loan term is 4 ½ years, no repayment for the first 1 ½

years and equal monthly payments over the remaining 3 years. The loans are interest-free.

• Start-Ups and Business Loans

• An eligible business must be majority owned and operated by a recently separated veteran

(separated from active service after September 11, 2001). Veterans that qualify under this

program must:

– Have been on active duty on or after September 11, 2001, and

– Have been separated from service under honorable conditions after having been on active duty for at least 181

consecutive days or for the full period for which called to active duty (or after reason of disability incurred while on

active duty)

• Contact Chinwe Ngwu at 651-259-7427.

Microloan Program Applicant works directly with intermediary

•Intermediaries are non-profit lending organizations

Maximum loan amount is $50,000

•Some MN Microlenders use a maximum of $35,000

Direct loan from intermediary (No SBA involvement)

Maturity: 6 years or less

Rates are negotiable with intermediary

•Subject to either 7.75 or 8.5% above intermediary cost of funds

Geographic service areas (by county)

504 Loan Program Provided through Certified Development Companies (CDCs) which are licensed by SBA.

3-Way Investment

Deal

50% Private Lender

40% SBA Debenture

(CDC) 10%

Borrower Equity

Long-term, fixed rate financing for major fixed assets, including: Existing buildings Grading Street improvements Utilities Parking lots Landscaping Machinery Equipment

Lender Relations

Tom Osborne-Lender Relations Specialist SCORE & Veterans Representative thomas.osborne@sba.gov 612.370.2356 Alisha Podobinski-Lender Relations Specialist Womens Representative alisha.podobinski@sba.gov 612.370.2331

Export Finance Programs

• Export Working Capital Program

– Short term

– Transaction or asset based

– Can support Standby Letters of Credit

• International Trade Loan

– Permanent

– Equipment, facilities and debt refinance

• Export Express

– Short Term

– Travel overseas to support expansion

SBA

Capital

Export

Carlos Sosa Regional Trade Finance Manager Office of International Trade carlos.sosa@sba.gov 612.348.1642

Questions?

For more information: Minnesota District Office

330 2nd Ave S. #430

Minneapolis, MN 55401

www.sba.gov/mn

(612) 370-2324

Thank you