SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration 380 East Parkcenter Blvd, Suite 330, Boise, Idaho ABC’s of SBA Loans Lance Foster Your Small Business Resource Helping Small Business start, grow and succeed

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration SBA’s Definition of a Small Business  Business must be For Profit  Fewer than 100 employees (Less than 500 for manufacturing)  Located in the United States  Owned by U.S. Citizens or legal permanent residents  Net-worth less than $8,500,000  Net-profit (after taxes) less than $3,000,000

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration Financing Your Small Business  SBA’s Purpose – Assist Small Business  SBA Guaranty Loan Programs  Other Methods of Financing  Counseling & Training Opportunities  SBA’s Internet Resources  Grants

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration SBA’s Major Guaranty Loan Programs  7(a) Term Loan - $2,000,000 SBA Guaranty is 75% or 85% Depending on Loan Amount  SBAExpress - $350,000 - Line of Credit SBA Guaranty is 50%  Patriot Express – $500,000 Can be a Term Loan or Line of Credit SBA Guaranty is 75% or 85% Depending on Loan Amount  CDC-504 Fixed Asset Term Loan $1,500,000 - $2,000,000 (1 Job Created or Retained for Every $65K Borrowed)

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration SBA’s Major Guaranty Loan Programs Use of Loan Proceeds  Start up costs  Working Capital  Inventory  Equipment  Fixtures  Business Acquisition/Change of Ownership  Debt Refinance  Purchase land and buildings

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration Preparing a Loan Package  Business Plan – Resume’ – Exit Plan  Amount of a Loan & Uses  Collateral Offered to Secure Loan  Current Financial Statements for Business & Personal  3 Years Business & Personal Income Tax Returns  1 Year Projected Income & Expense  Attorney & Accountant  Make a Appointment with Your Favorite Lender

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration Credit Criteria  Is Business Realistic/Eligible  Management Ability  Repayment Ability  Adequate Working Capital  Sufficient Down Payment  Collateral  Good Credit

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration Other Methods of Financing  Commercial Term Loans  Lines of Credit  Credit Cards  Home Equity Loans  Leasing  Investors – Partners  Seller Financing  Friends and Family

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration  $375 million for temporary fee reductions or eliminations on SBA Loans and increased SBA guarantees up to 90% for 7(a) & Patriot Express (Extended through April 2010)  $255 million for $35, (ARC) loan program to help small businesses meet existing debt payments

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration (ARC) loans On June , SBA started guaranteeing America’s Recovery Capital (ARC) loans. ARC loans are deferred- payment loans of up to $35,000 available to established, viable, for-profit small businesses that need short-term help to make their principal and interest payments on existing qualifying debt. ARC loans are interest-free to the borrower, 100 percent guaranteed by the SBA, and have no SBA fees associated with them. Runs through Sep. 2010

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration Counseling & Training  SBA Free Online Training –  SBA Workshops – Business Basics  Service Corps of Retired Executives – SCORE Ex 338 –  Small Business Development Centers – SBDC –  Small Business Success Center – 250 N. 5 th St, Suite 300

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration Other Things You Should Know SBA Loan Guarantee Fees Apply (Exempt through April 2010) No Minimum Loan Amount on 7(a), Express, & Patriot Express Generally No 100% Financing 7(a) & Patriot Express are Based on Prime Rate with a Spread of either 2.25% (Maturity 7 years) Regular Express loans are +6.5% over Prime for loans $50K ALL Loans are Dispersed Through an SBA Participating Lender

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration Participating Lenders Bank of America Bank of Commerce Bank of Idaho Bank of the Cascades Bank of the West Banner Bank Celtic Bank Chase Bank Citizens Community Bank Community Bank D.L. Evans Bank Farmers National Bank First Federal Savings Bank Home Federal Bank Idaho Banking Company Idaho Central Credit Union Idaho First Bank Idaho Independent Bank Intermountain Community Bank Ireland Bank Les Bois Federal Credit Union Magic Valley Bank Idaho First Bank Idaho Independent Bank Intermountain Community Bank Ireland Bank Key Bank Les Bois Federal Credit Union Magic Valley Bank

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration

SBA ONLINE CLASSROOM: GROWING A BUSINESSU.S. Small Business Administration Helping Small Businesses To Start, Grow & Succeed Your Small Business Resource U.S. Small Business Administration