1 / 32

Jo Ann Lawrence Louisiana District Office

Jo Ann Lawrence Louisiana District Office. SBA's Mission and Purpose. Aid Counsel Assist Protect the interests of small business concerns Support Champion small businesses. Simply put………………. We help people get into business, stay in business, grow and prosper. Programs Of Assistance.

tadeo
Download Presentation

Jo Ann Lawrence Louisiana District Office

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Jo Ann Lawrence Louisiana District Office

  2. SBA's Mission and Purpose • Aid • Counsel • Assist • Protect the interests of small business concerns • Support • Champion small businesses

  3. Simply put……………… We help people get into business, stay in business, grow and prosper.

  4. Programs Of Assistance • Financial Assistance Programs • Non-Financial Assistance

  5. Non-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

  6. Surety 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.

  7. HubZone Empowerment Contracting 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.

  8. Eligibility Requirements • Business located in designated HubZone area • 35% of employees reside in HubZone • 51% Unconditionally owned by U.S. Citizens

  9. Section 8(a) BusinessDevelopment 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.

  10. Section 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

  11. Section 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.

  12. ACCESS TO CAPITAL

  13. ATTENTION!! SBA DOES NOT offer grants to start or expand small businesses, although SBA does offer a wide variety of loan programs for these purposes.

  14. Financial 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

  15. 7(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.

  16. Start-up Expansion Working Capital Inventory Machinery/Equipment Furniture/Fixtures Purchase/Construct building Business buyout Leasehold improvements Debt restructure Use Of Loan Proceeds

  17. Terms 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.

  18. Fees • SBA charges the lender a nominal fee for SBA to provide the guaranty. • Under Recovery Act, upfront guaranty fees eliminated until 12/31/2009

  19. New SBA Express 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

  20. AMERICA’S RECOVERY CAPITAL (ARC) LOANS • Begins June 15, 2009 • Up to $35,000 • 100% Guarantee by SBA • Deferred Payment • Interest Free • No upfront SBA Fees • Commercial Lenders

  21. AMERICA’S RECOVERY CAPITAL (ARC) LOANS • ELIGIBILITY • Established business • Viable • For Profit • Small • Struggling to make payments • Not in default

  22. AMERICA’S RECOVERY CAPITAL (ARC) LOANS • USE OF PROCEEDS • Mortgages • Term Loans & Revolving Lines of Credit • Capital leases • Credit card obligations • Vendors notes payable • Suppliers • Utilities

  23. AMERICA’S RECOVERY CAPITAL (ARC) LOANS • Disbursed within six months • Payment deferred for 12 months • Five years to repay

  24. PATRIOT EXPRESS • Loans up to $500,000 • 90 % Guaranteeuntil Recovery Act Funds are exhausted or 9/30/2010 • Interest rates 2.25% - 4.75%

  25. PATRIOT 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

  26. COMMUNITY EXPRESS “VERY SMALL BUSINESS” 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

  27. Microloan 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.

  28. What do these corporations have in common with hundreds of thousands of other businesses?

  29. They have all been helpedby theU.S. Small Business Administration!

  30. Louisiana District OfficeOne Canal Place365 Canal Street, Suite 2820New Orleans, LA 70130Telephone: (504) 589-6685Fax: (504) 589-2339

  31. Please visit our Louisiana SBA Web Site - http://www.sba.gov/la Call the SBA Answer Desk 1-800-U-ASK-SBA (1-800-827-5722) Louisiana District Office (504) 589-6685

  32. Louisiana District Office “Supporting the Formation, Growth, Prosperity, and Viability of Louisiana’s small businesses.” Thank you!!

More Related