U.S. Small Business Administration

SBA Programs

Congresswoman Kathy Castor

Robert ChavarriaSenior Area Manager

SBA South Florida DistrictOctober 20, 2011

SBA Programs And Services

• Information to Start and Run your

Business

• Financial Assistance

• Federal government Contracting

Assistance

• Business Training and Counseling

• Disaster Assistance

Small Business Jobs Act of 2011

Assists Small Business In These AreasAssists Small Business In These Areas

•Placing More Capital in Hands of Placing More Capital in Hands of Small BusinessesSmall Businesses• Small Business Contract Small Business Contract OpportunitiesOpportunities• Promotes Small Business ExportingPromotes Small Business Exporting• Training and CounselingTraining and Counseling• $12 Billion In Tax Relief$12 Billion In Tax Relief• Treasury Department Small Business Treasury Department Small Business

Funds for Small Business Lending Funds for Small Business Lending

SBA Economic Development Loan Programs

SBA Economic Development Loan Programs

7 (a) Guaranteed Loan Program Basic 7(a) CAPline Export Working Capital International Trade Export Express SBA Express Small Loan Advantage Community Advantage Patriot Express Dealer Floor Plan

Microloan Program

504 Loan Program

Eligible Uses of an SBA LoanAny Good Business PurposeAny Good Business Purpose

• ConstructionConstruction• Land & BuildingLand & Building• Line of CreditLine of Credit• Leasehold ImprovementsLeasehold Improvements• Machinery & EquipmentMachinery & Equipment• Expansions & RenovationsExpansions & Renovations• Inventory & Working CapitalInventory & Working Capital• Refinancing Business DebtRefinancing Business Debt• Purchasing of Existing Small Purchasing of Existing Small

BusinessBusiness

Small Loan Advantage 7(a) Loans

• Loans up to $250,000• Targets Underserved Communities• 75% and 85% guarantee to Lenders• Start, expansion, equipment, working

capital, inventory• Lender submits electronic two page

application for an approval within minutes/other applications within one business day

• SBA Preferred Lenders (PLP) will do the loans

• PLP’s will have later delegated authority to approve loan requests without submitting to SBA after trial period

Pilot Community Advantage 7(a) Loans

• Pilot Program to increase the number of Lenders to Underserved Markets

• Mission focused Lenders will includeCommunity Development Financial Institutions, Non Profit Certified Development Co’s., and SBA approved Micro-Lender intermediaries

• Loans up to $250,000• 75% and 85% guarantee to Lenders• Start, expansion, equipment, working

capital, inventory• Two page application for approval

within 5 – 10 days•

SBIC Program

• The SBA-licensed for profit Small Business Investment Companies (SBICs) and families of SBIC investment funds better leverage the capital they use to invest in small businesses

• Fund businesses through investments or loans

• SBIC’s provide managerial, operational, and technical assistance

• Invest in a wide range of industries

• http:www.sba.gov/inv

SBIR and STTR Research Grants Program

Businesses is involved in scientific researchand development (R&D) may qualify forgrants by approximately 10 Agencies

• Small Business Innovation Research (SBIR) or

• Small Business Technology Transfer (STTR)

• To stimulate technological innovation• Meet federal R&D objectives

• High potential for commercialization

• Agencies listed in SBA website- sba.gov

4 MAJOR CONTRACT SURETY BONDS FREQUENTLY REQUIRED SBA guarantees Surety Bond

Companies against a percentage of losses sustained as a result of default on:

1) Bid Bond2) Performance Bond3) Payment Bonds 4) Ancillary Bonds

SBA will guarantee bonds up to $2 million written by any surety company that has been approved to participate, and is listed in the US Treasury’s Circular 570

Types of SBA Disaster Loans

• Home Disaster Loans– Homeowners – Repair, replace, refinance real property -

$200,000– Homeowners – Mitigate/prevent future loss – 20% of

approved loan– Renters and homeowners - personal property $40,000

• Business Physical Disaster Loans– Businesses of all sizes - to repair or replace real estate,

equipment, furniture, etc. – loans up to $2,000,000– Small or large businesses – Mitigate/prevent future

losses – 20% of approved loan• Economic Injury Disaster Loans (EIDL)

– Small businesses and agricultural coops only (NAICS size standards)

– Economic injury caused by a disaster– Maximum loan amount - $1,500,000

• http://www.sba.gov/hurricanes/index.html

• SBA Certification Programs8(a) Business Development HUBZone Empowerment Contracting

Woman-owned Small Business (WOSB)

Self-CertificationsSmall Business – NAICS CodesVeteran-owned Small Business

(VOSB)Service Disabled Veteran-owned

Small Business (SDVOSB)

VA Verification Program

Federal Contract Certifications

8(a) Business Development Program

• Individuals must demonstrate Social andand Economic Disadvantage– Social Disadvantage – individuals who are

subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups without regard to their individual qualities.

– Economically Disadvantaged – individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital & credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged.

• For 8(a), Personal Net Worth must be less than $250,000

– While in 8(a), net worth can’t exceed $750,000While in 8(a), net worth can’t exceed $750,000– Can deduct equity in business and personal Can deduct equity in business and personal

residenceresidence

8(a) Business Development Program

• Firm must have at least 2 years in business but a waiver is available

• Must be a small business per SBA size standards

• Unconditionally owned & controlled by one or more U.S. Citizens– Must own 51% or more of the business.– ControlControl refers to the ability to manage

the firm, set policies, control budgets, etc.

• Must demonstrate good character– No one on probation or parole is eligible

• available.• Individuals and/or firm can use their

eligibility only once to participate in program

• Nature of contracts: Contracts are awarded by procuring agencies to SBA as the prime contractor. SBA subcontracts to the named 8(a) firm. Special contract clauses delegate administration responsibility to the procuring agency.

• Competitive threshold: When the estimated value (including options) exceeds $4 million for services and construction and $6.5 million for manufacturing, requirement will be competed among 8(a) firms.

Contract Process

HUBZone - Historically Underutilized Business Zone Certification Program

• Develops historically

underutilized urban and rural

areas

• Stimulates Economic

Development

• Create Jobs

• Establishes federal award

preferences for small businesses

HUBZone Certification Program

Designed to stimulate economic development and create jobs in historically underutilized business zones.

•HUBZone contracts may be sole-sourced when deemed appropriate by contracting officer when he or she:

– determines does not have a reasonable expectation that two or more qualified HUB Zone small businesses will submit offers

– determines that the qualified HUB Zone small business is qualified

– determines that the contract will be awarded at a fair price

Women Owned Small Business Federal Contract Certification Program

• Provides Equal Access to Federal Contracting Opportunities

• For Women Owned Small Businesses (WOSB)

• For Economically Disadvantaged Women Owned Small Businesses (EDWOSB)

• Allows Contracting Officers to set aside specific contracts for WOSB’s and EDWOSB’s

• Effective February 4, 2011

Assistance for Veterans

The SBA Office of Veterans Business Development offers a range of programs and services to assist veterans, Service-disabled veterans and Reserve Component members which include:

Initial Email Counseling/Transfer of InformationWebsite for veteran business owners/entrepreneursVeterans Business Outreach CentersWebsite for ReservistsBusiness Assistance through a network of District Office Veterans Business Development Officers (VBD Officers)

Small Business Teaming Pilot Program

• Announced September 2011 • Implementation made possible by the

Small Business Jobs implementation

• Helps small businesses work together in teaming arrangements to compete for larger federal for larger federal contracts

• Teaming Pilot Program grant award winners help find small businesses to form teams to find and bid on larger contracts

Small Business Teaming Pilot Program

Other Future SBA Contracting Initiatives

• Mentor Protégé Matchmaking Conferences – Orlando and another Florida location; to be announced

• Train the Trainer Training – For Lead Business Development Officers to train 8(a) firms on

8(a) Processes - e.g. remedial plans, financials, Mentor Protégé Templates, Joint Ventures,

etc.

SBA Regions – 3,6,9

• Grant Award Initiative – SBA Regions 3,5,7,9,10

To provide funding for one on one counseling to 8(a) firms

• Nationwide training for SBA staff - on how to better support 8(a), HUBZone, Women Owned Small Business, Veterans, etc in federal government contracting

Contracting Assistance

For local assistance with how to contract with the Federal government

Procurement Technical Assistance Center (PTAC) at the USF-Small Business Development Center

Charlene Bostic

(813) 905-5800

Or look up a PTAC nearest you at

http://www.aptac-us.org/new/

Training and Counseling

• Provides assistance to start, expand, and manage your small business

• To prepare small businesses to succeed in applying for financing and do federal government contracting

• SCORE – National Network of entrepreneurs, business leaders, and executives

• Small Business Development Centers –

USF-SBDC; are a national professional management and technical assistance affiliated with major universities

SBA Programs & Services

Robert ChavarriaSenior Area Manager

U.S. Small Business Administration

South Florida District Office

(813) 228-2100Robert.chavarria@sba.gov

www.sba.gov/fl/southwww.sba.gov

Serving Charlotte, DeSoto, Hardee, Hillsborough, Manatee, Pasco, Pinellas, Polk, and Sarasota Counties