sba resources

SBA 101

Terry J. CaseLender Relations Specialist

Iowa District Office

America’s Small Business ResourceSBA Success Stories

Apple IntelNike Staples Federal Express Hewlett-PackardBen & Jerry’s Jenny CraigCallaway Golf Auntie Anne’s Outback Steakhouse Radio OneConstant Contact Under ArmourWinnebago Black Enterprise MagazineCold Stone Creamery Columbia Sportswear

America’s Small Business ResourceCapital

CounselingContracting

AdvocacyDisaster

Innovation

America’s Small Business Resource

Capital• Government Guaranteed Loans • Two Main Programs - 7(a) & 504• NO GRANTS! NO GRANTS! NO GRANTS!

America’s Small Business ResourceLoan Programs• 504 loans• 7 (a) loans• - 7(a)

- SBA Express- Community Advantage- Export Working Capital/Export Express- Microloans

America’s Small Business ResourceCapital7(a) Guaranteed Loan Program•Helps lender make loans they might not otherwise make•Made by the lender and backed by SBA•Initial loan decision rests with the lender - Based primarily on character, credit and repayment ability•Up to $5 million, wide variety of business purposes

America’s Small Business ResourceCapital 7a Program Basics

•Loans up to $5 million (3.75 Million SBA exposure)•85% percent guaranty on loans up to $150,000•75% percent guaranty on loans over $150,000•May be used for a wide variety of business purposes

America’s Small Business ResourceSBA loan programs

In guaranteeing the loan, the SBA assures the lender that, in the event the borrower does not repay the loan, the government will reimburse the lending institution for portion of its loss. By providing this guaranty, the SBA is able to help tens of thousands of small business every years get financing they might not otherwise obtain.

The SBA does NOT offer grants to start, purchase or expand a small business.

America’s Small Business ResourceUse of SBA loan Proceeds• Start a business• Buy a business• Expand or renovate facilities• Acquire machinery, equip, furniture, fixtures and

leasehold improvements.• Finance receivables and augment working capital• Finance seasonal lines of credit• Construct buildings

America’s Small Business ResourceCapital 504 Basics

•Long-term, fixed rate subordinate mortgage financing for acquisition and/or renovation of capital assets and including land buildings and equipment.

•Uses a Certified Development Company (CDC) a non-profit certified and regulated by the SBA to package process, close and service 504 loans.

America’s Small Business ResourceCapital 504 Structures

•Typical 50-40-10 (maximum)•New Business 50-35-15•Special Purpose Building 50-35-15•New Business and Special Purpose building 50-30-20•New Business includes not only new business but changes of ownership as well

America’s Small Business ResourceCapital 504 Advantages•50% loan to value on first mortgage•Customer preserves w/c for growth•Federal Government is subordinate lender•More competitive financing package•Fixed interest rate on second mortgage•Long term financing•May have lower down payment requirement •Collateral normally limited to project assets•Existing collateral still available for w/c loans

America’s Small Business ResourceCapitalMicroloan Program•Loan comes direct from SBA via an SBA Microlender•Limited to $50,000 or less•Limited to working capital and fixed-assets

Iowa Microloan – www.iowamicroloan.org or (515) 212-0182

http://www.iowamicroloan.org/


Counseling(One-on-one Counseling/Training/Technical Assistance)• Small Business Development Centers • SCORE• Women’s Business Center• Veteran’s Business Outreach Center• US Export Assistance Center

America’s Small Business ResourceAmerica’s SBDC – Iowa• Statewide network offering free, confidential,

customized, professional business advice • New and existing small businesses • Low-cost workshops• Business Planning, Cash Flow Projections, Business

Financials, Management and Technical Assistance

America’s Small Business ResourceSCORE – Counselors to America’s Small Businesses

• Free, on-one-one business counseling and advice• Eight chapters throughout the state - volunteers with

real-world experience• New and existing small businesses • Pre-business planning• Low-cost “Simple Steps” workshops

America’s Small Business ResourceWomen’s Business Center

• Over 100 centers nationwide• Business training, counseling, coaching and

mentoring• Geared towards women, but will assist anyone


Contracting• 8(a) certified• HUB Zone certified• Women-owned • Service Disabled Veteran• Surety Bonds

America’s Small Business ResourceSBA Procurement Assistance

The US government is the largest single purchaser of good and services in the world, buying everything from armored tanks to paper clips. Every year the federal government awards more that 500 billion in contracts and a significant share of those contracts are specifically allotted to small businesses. SBA’s roll is to make sure small business get their fair share of government contracts and to assist them in pursuing other contracts as well as state/local/federal/corporate

The SBA features outreach programs, matchmaking events and online training opportunities and helps agencies identify opportunities; and helps agencies identify opportunities for small business.


Federal prime Contraction Small Business Goals

• Small Business 23%• Small Disadvantaged Business (8(a)) 5%• Woman owned Small Business 5%• HUB Zone Small Business 3%• Service-Disabled Veteran-Owned Small Business 3%

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Procurement Technical Assistance Center (PTAC) http://www.ciras.iastate.edu/procurement/


InnovationSBA Office of AdvocacySmall Business Innovation Research (SBIR)Small Business Investment Corporation (SBIC)National Ombudsman’s Office


Office of national ombudsman• Assist small business when experience unfair

or excessive enforcement actions• Provides a means for small business to

comment on federal agencies enforcement actions.


SBA Disaster Program• Disaster declaration by President of US or SBA

Administrator• Low interest, long-term loans– Physical Disaster Business Loans– Economic Injury Disaster Loans– Loans for Homes & Personal Property

America’s Small Business ResourceSBA Disaster Assistance Program

SBA provides low interest disaster loans to homeowners, renters, businesses of all sizes and private, nonprofit organizations to repair or replace real estate, personal property, machinery & equipment, inventory and business assets that have been damaged or destroyed in a declared disaster

• Physical Disaster loans (Home and Business)• Economic injury Disaster LoansSBA also offers Disaster preparedness Planning Assistance


QUESTIONS?

Iowa District OfficeDes Moines – (515) 284-4422

Cedar Rapids – (319) 362-6405www.sba.gov/ia

http://www.sba.gov/ia