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Spokane Branch Office

Bechtel Vendor Forum Richland, WA July 19, 2005. Sharon Pataky, Business Development Specialist. Spokane Branch Office. Spokane Branch Territory. Serving 20 counties in Eastern WA and 10 counties in North ID. Spokane Branch www.sba.gov/wa/spokane

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Spokane Branch Office

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  1. Bechtel Vendor ForumRichland, WA July 19, 2005 Sharon Pataky, Business Development Specialist Spokane Branch Office

  2. Spokane Branch Territory Serving 20 counties in Eastern WA and 10 counties in North ID Spokane Branch www.sba.gov/wa/spokane Seattle Districtwww.sba.gov/wa/seattle 2

  3. Programs & Services • Finance • Business Development • Government Contracting • Advocacy • Disaster Assistance

  4. GOVERNMENT CONTRACTING • Public policy goal is to foster an equitable distribution • of federal procurement dollars • Government-wide small business goals • in terms of a percentage of annual expenditures: • Small Business 23% • Women-Owned 5% • Service Disabled VOSB 3% • Small Disadvantaged 5% • HUBZone 3%

  5. AGENDA • CCR/DSBS • SBA Certifications • 8(a) Program • SDB • HUBZone

  6. WHEN IS A BUSINESS SMALL? Self Certification Core size standards for sectors: Retail $6 million Construction $12/$28.5 million Manufacturers 500 employees Wholesalers 100 employees

  7. WHEN IS A BUSINESS SMALL FOR PROCUREMENT? To bid as a small business on a federal contract, a business - and all of its affiliates in the aggregate - must be SMALL under the assigned NAICS code.

  8. WHEN IS A BUSINESS SMALL? For More Information, Refer to: WWW.SBA.GOV/SIZE

  9. CENTRAL CONTRACTOR REGISTRY (CCR) Registration in CCR is required for any entity doing business with the federal Government. CCR is a vendor payment database. www.ccr.gov

  10. CCR After completing the CCR profile, a small business may enter supplemental data. This data, along with federal certifications provided by SBA, is used by buyers to locate qualified firms through the Dynamic Small Business Search (DSBS).

  11. DSBS • A national vendor database of small business profiles on the web. • The official site for verification of federal certifications. • A research tool used by the federal buying community when determining how to procure goods and services (i.e. set-aside).

  12. Who Needs DSBS? • All small firms seeking federal contracts. • (Great marketing tool!) • All U.S. government agencies • Large prime contractors seeking subcontractors

  13. CCR – DSBS Link • Certain data entered into CCR automatically updates the DSBS. • These updates are not real time • and may not be reflected for 48-72 hours • from the time of input. • DSBS updates are real time.

  14. How do I Search for Small Business Sources using DSBS? • 1. Go to www.ccr.gov • 2. Select DSBS search button • 3. Enter Search Criteria • 4. You may customize your report

  15. How Much will it Cost? No Charge

  16. Am I Eligible? If so, apply for certification by SBA. 8(a) SDB HUBZone

  17. What is the 8(a) Program? The SBA's 8(a) BD Program is named for a section of the Small Business Act. It is a business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market.

  18. 8(a) Sole Source Contracts 8(a) Competitive Contracts Executive Development Training Business Development Specialist 8(a) Mentor/Protégé Program Surplus Property Training 9 year Program Term 8(a) Program Benefits

  19. 8(a) Program Eligibility • Concern must be a “small business” as defined by “size standards”. • 51% owned by socially and economically disadvantaged U.S. citizens • Socially and economically disadvantaged individuals control daily operations. • Indian Tribes, Native Hawaiian Org, Community Development Corporations (CDCs), or Alaska Native Corporations (ANCs)have special eligibility rules.

  20. Social Disadvantage MEMBERS OF DESIGNATED GROUPS • African Americans • Hispanic Americans • Native Americans • Asian-Pacific Americans • Sub-Continent Asian Americans

  21. Economic Disadvantage (Continued) • Personal financial condition of applicant • (not including spouse) • Personal Net Income over the last two years • Personal Net Worth – NTE $250,000.00 …less • Residential Equity and • Equity in 8(a) Applicant Firm

  22. 8(a) Program Eligibility • Potential for Success • Good Character • Ineligible if incarcerated, on parole or probation, or convicted of a crime involving business integrity • One time eligibility • Immediate family members may not own more than 20% of another 8(a) firm.

  23. Small Disadvantaged Business (SDB) Certification Program

  24. SDB Eligibility A Small Disadvantaged Business is one that is • owned and controlled by one or more socially & economically disadvantaged individuals, tribes, ANCs, Native Hawaiian Organizations, or CDCs utilizing essentially the same criteria as that of the 8(a)BD program. • Except PNW < $750,000 for entry into the SDB program

  25. Benefits of SDB Certification(continued) • SUBCONTRACTING OPPORTUNITIES; Contractor selection evaluation factors may incorporate SDB subcontractor participation for contracts in excess of $500,000 ($1MM construction). • Firms are not recognized as an SDB without certification by SBA.

  26. Small Disadvantaged Business Certification Program • Approved 8(a) firms are • certified as SDB’s • Concurrent with their program term

  27. HUBZone Program

  28. HUBZone Program Designed topromote business and job opportunities in high unemployment and low income areas by increasing federal contracting activity in those areas.

  29. HUBZones Historically Underutilized Business Zones • Urban -- census tracts • Rural -- countywide • All federally recognized Native American reservations

  30. USA HUBZone Map

  31. HUBZone CensusTract in Franklin County

  32. HUBZone Firm Eligibility • Must be a small business (for primary NAICS) • Principal office must be located in a HUBZone • At least 35% of the employees must reside in HUBZone areas • Must be 51% owned and controlled by US citizens or be an agricultural cooperative operating as a small business or be a small business owned by an agricultural cooperative. Can also be owned by CDC, ANC, or Indian tribe.

  33. Hubzone Set-aside Contracts Up to 10% price preferences in full and open competition Subcontracting Opportunities Sole source contracts HUBZONE Benefits

  34. Get Certified! Apply online or download an application from the SBA Website. http://www.sba.gov/8aBD http://www.sba.gov/SDB http://www.sba.gov/HUBZONE

  35. Procurement Resource Contacts • Procurement Technical Assistance Centers: • For help with local, state and federal programs • E WA Bsns: Kyla Meredith-Boucher (509) 459-4105 • N Idaho Bsns: Larry Demirelli (206) 334-2470 • HUBZone:Sharon Pataky (509) 353-2810 (Spokane) • 8(a) Business Development: • E. Washington Bsns: Sharon Pataky (509) 353-2810 (Spokane WA) • W. Washington Bsns: Diana Drake (206) 553-7341 (Seattle WA) • Idaho Businesses: Irene Gonzalez (208) 334-9004 ext 349(Boise ID) • SBA Surety Bond Guaranty: Tom Ewbank (206) 553-0961 • Business Links/WSU Richland: • Procurement Specialist: Johan Curtiss (509) 372-7142 • SBA Procurement Center Representative: • Kevin Michael (253) 931-7161 (Auburn,WA)

  36. QUESTIONS? Thank You !

  37. Bechtel Vendor ForumRichland, WA July 19, 2005 Coralie Myers, Business Development Specialist Spokane Branch Office

  38. Strategically located in the 8 SBA Spokane Employees Serving Eastern WA and North ID Since 1963 801 West Riverside Avenue, Suite 200 Spokane, WA 99201 (509) 353-2811 or www.sba.gov/wa/spokane

  39. Who Is Our Custmer? About 90% of all businesses Nationally over 25 million small businesses • Manufacturing Section Less than 500 employees • Wholesale Sector Less than 100 employees • Construction Sector Annual Sales less than $12-28.5 million • Service and Retail Sectors Annual Sales less than $6 million www.sba.gov/size

  40. Benefits of Small Business • 90% (Approximately) of all employer firms; • 65% of all new jobs generated annually; • 55% of all new product innovations; • 52% share of the National GDP; • 44% of total U.S. payroll; $ 1.5 trillion; • 23% of federal prime contracts

  41. Business Loans • SBA is not a direct Lender* • SBA guarantees loans that Lenders make to businesses • Business work with their Lenders • The Lender contacts SBA *Exception: Disaster Loans

  42. Management Skills Repayment Ability Character / Credit Debt / Worth - Your Investment Collateral What Lenders and SBA Look For

  43. Financial Statements • Balance Sheet • Income Statement (interim & last 3 yrs.)] • Monthly Cash Flow (Budget / Checkbook)Money you receive & Money you pay out Available online at:http://www.sba.gov/library/cfbudget.xls

  44. Based on the Useful Life of the Asset - How long will what you are buying last. Final determination up to Lender - General Guidelines:Working capital & Inventory 3 - 5 yrsEquipment 5 - 15yrsReal Estate 15- 25yrs Maturity - How Long to Repay

  45. Interest Rates • Determined by LenderRates are negotiated between bank and borrower • Tied to prime rate - See paper Prime is what banks charge their best customers • Maximums for SBA Loans Less than $50,000....... 6.5% over prime $50,000 - $250,000...... 4.5% over prime Over $250,000............. 2.75% over prime

  46. Long-Term vs. Short-Term • Paid from profits of the business • Maturity 1-25yr. • Does not revolve • Fills need for permanent working capital • Finances equipment, real estate • Paid from conversion of business assets • Less than 1 yr • Can revolve - must zero out during year • Fills seasonal & short-term needs • Finances seasonal & cyclical working capital

  47. Borrowers can get longer terms. Credit not available elsewhere Under reasonable terms Through non-federal sources Within prevailing rates and terms in the community WHY USE SBA? Benefits to Borrower Expands Lenders’ ability to fund the needs of a small business, so Lenders can say “Yes” more often.

  48. BE SPECIFIC about: Business location and cost Inventory & equipment cost estimates provide invoices How much money you will need Have SCORE review your plan first FREEand CONFIDENTIAL! Before you see your Lender, Plan

  49. Surety BondGuarantee Program Guarantees bid, payment & performance bonds for contracts up to $2 million* for eligible small construction and service businesses. *must meet SBA size standardswww.sba.gov/size

  50. Surety BondGuarantee Program • You apply with the bonding company, not SBA • A list of bonding companies can be found at:http://www.spokanebic.org/bguide/surety.htm • For more information, contact the regional SBA Surety Bond Office which serves ID, OR, NV & WA: • SBG Area Office 4 • 1200 6th Avenue, Suite 1700 • Seattle, WA 98101-1128 • 206-553-0961

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