jo ann lawrence louisiana district office aid counsel assist protect the interests of small...

Jo Ann Jo Ann LawrenceLawrence

Louisiana Louisiana District Office District Office

Aid Counsel Assist Protect the interests of small

business concerns Support Champion small businesses

SBA's Mission and PurposeSBA's Mission and Purpose

We help people get into business, stay in business, grow and prosper.

Simply put………………Simply put………………

Programs Of AssistancePrograms Of Assistance

Financial Assistance Programs

Non-Financial Assistance

Non-Financial Assistance ProgramsNon-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

Surety Bond ProgramSurety 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.

HubZone Empowerment HubZone Empowerment ContractingContracting

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.

Eligibility RequirementsEligibility Requirements

• Business located in designated HubZone area

• 35% of employees reside in HubZone

• 51% Unconditionally owned by U.S. Citizens

Section 8(a) BusinessSection 8(a) BusinessDevelopment ProgramDevelopment 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.

Section 8(a) ProgramSection 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

Section 8(a) ProgramSection 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.

ACCESS TO CAPITALACCESS TO CAPITAL

ATTENTION!!

SBA SBA DOES NOT DOES NOT offer offer grants to start or grants to start or

expand small expand small businesses, although businesses, although SBA does offer a wide SBA does offer a wide

variety of loan variety of loan programs for these programs for these

purposes.purposes.

Financial Assistance ProgramsFinancial 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

7(a) Guaranty Loan Program7(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.

Use Of Loan ProceedsUse Of Loan Proceeds

Start-up

Expansion

Working Capital

Inventory

Machinery/Equipment

Furniture/Fixtures

Purchase/Construct

building

Business buyout Leasehold

improvements Debt restructure

Terms and Interest RatesTerms 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.

FeesFees

SBA charges the lender a nominal fee for SBA to provide the guaranty.

Under Recovery Act, upfront guaranty fees eliminated until 12/31/2009

New SBA New SBA ExpressExpress Loan Program 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

AMERICA’S RECOVERY CAPITAL AMERICA’S RECOVERY CAPITAL (ARC) LOANS(ARC) LOANS

• Begins June 15, 2009

• Up to $35,000

• 100% Guarantee by SBA

• Deferred Payment

• Interest Free

• No upfront SBA Fees

• Commercial Lenders


• ELIGIBILITY• Established business• Viable• For Profit• Small• Struggling to make

payments• Not in default


• USE OF PROCEEDS • Mortgages• Term Loans & Revolving Lines of

Credit• Capital leases• Credit card obligations• Vendors notes payable• Suppliers• Utilities


• Disbursed within six months

• Payment deferred for 12 months

• Five years to repay

PATRIOT EXPRESSPATRIOT EXPRESS

• Loans up to $500,000

• 90 % Guarantee until Recovery Act Funds are exhausted or 9/30/2010

• Interest rates 2.25% - 4.75%

PATRIOT EXPRESSPATRIOT 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

COMMUNITY EXPRESS “VERY SMALL COMMUNITY EXPRESS “VERY SMALL BUSINESS” LOAN PROGRAMBUSINESS” 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

Microloan ProgramMicroloan 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.

What do these corporations What do these corporations have in common with hundreds of have in common with hundreds of

thousands of other businesses?thousands of other businesses?

They have all beenThey have all been helped helpedby theby the

U.S. Small Business U.S. Small Business Administration!Administration!

Louisiana District OfficeLouisiana District OfficeOne Canal PlaceOne Canal Place

365 Canal Street, Suite 2820365 Canal Street, Suite 2820New Orleans, LA 70130New Orleans, LA 70130

Telephone: (504) 589-6685Telephone: (504) 589-6685Fax: (504) 589-2339Fax: (504) 589-2339

Call the SBA Answer Desk

1-800-U-ASK-SBA

(1-800-827-5722)

Louisiana District Office

(504) 589-6685

Please visit our Louisiana SBA Web Site - http://www.sba.gov/la

““Supporting the Formation, Supporting the Formation, Growth, Prosperity, and Viability Growth, Prosperity, and Viability of Louisiana’s small businesses.”of Louisiana’s small businesses.”

Louisiana District Office

Thank you!!

jo ann lawrence louisiana district office aid counsel assist protect the interests of small...

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