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U.S. Small Business Administration www.sba.gov www.sba.gov www.sba.gov/id Gregory Yerxa Lender Relations Specialist Boise District Office 380 E Parkcenter.

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Presentation on theme: "U.S. Small Business Administration www.sba.gov www.sba.gov www.sba.gov/id Gregory Yerxa Lender Relations Specialist Boise District Office 380 E Parkcenter."— Presentation transcript:

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2 U.S. Small Business Administration www.sba.gov www.sba.gov www.sba.gov/id Gregory Yerxa Lender Relations Specialist Boise District Office 380 E Parkcenter Blvd, Suite 330 Boise Idaho 83703 (208) 334-9004 Ex. 345 www.sba.gov SBA Loan Guaranty Programs

3 Why We Are Here - SBA Purpose Economic Growth

4 Where Does the SBA Loan Fit? Factors that determine this range: Business Profile Most Viable Least Viable Experienced Management High Debt Service Cash flow Sterling Credit Fully Collateralized Growth/Mature Industry High Retained Earnings Lender Range Cash flows w/ longer terms Covers Reasonable Collateral Shortfall Quality Start-up Regulation/Liquidity Environment SBA Range No Management experience No potential chance of repayment Impractical business idea No financial reserves No equity investment No Range

5 The SBA Loan Guaranty The SBA promises to reimburse a lender for losses at an agreed percentage of loss Up to 90% As low as 50% Lender Benefits Reduced Risk Increased Liquidity Borrower Benefits Access to business credit Better terms and rates

6 SBA Financing Programs Grants Not available for starting/expanding Limited grants for research, development & innovation Small Business Innovation Research (SBIR) Small Business Technology Transfer (STTR) SBA Loan Guaranty Programs 7(a) Loan Program Microloans CDC/504 Program Small Business Investment Companies (SBIC)

7 Streamlining SBA Loan Programs Term LOC LOC/Term 7(a) 7(a) Under $350,000 7(a) Over $350,000 SBA Express ($350,000 limit) SBA Express ($350,000 limit) Export Express ($500,000 limit) Export Express ($500,000 limit) CapLines 504 International Trade Credit Scoring Export Working Cap ($5MM limit) Export Working Cap ($5MM limit) 85% ≤ $150M 75% > $150M

8 Borrower Eligibility Must be “For Profit” Must be “Small” Net worth less than $15,000,000 Net profit less than $5,000,000 (last 2 years) Must demonstrate a “Need” Unreasonable terms/rates Lack of personal resources/collateral Must be in an eligible industry Non-discriminatory, non-speculative Must be of good character

9 Use of Loan Proceeds Start up costs Working Capital Inventory Equipment Fixtures Business Acquisition Debt Refinance Purchase land and buildings

10 Loan Statistics BDO FY 2015 Approved 467 7(a) loans totaling $135,899,400 Approved 76 CDC/504 loans totaling $32,772,000 4,348 jobs were created or retained 187 loans were to a new business 78 are women owned businesses 33 are veteran owned businesses 152 businesses are in a rural area The smallest 7(a) loan was $5,000 The largest 7(a) loan was $5,000,000 The smallest 504/CDC loan was $62,000 The largest 504/CDC loan was $1,547,000 Start-ups (29%) Loan Volume

11 20 Year Look back by NAICS

12 Counseling & Training SBA Free Online Training – www.sba.govwww.sba.gov SCORE 208-334-1696 Ex 338 Treasurevalley.score.org Small Business Development Centers SBDC 208-426-1640 www.idahosbdc.org


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