U.S. Small Business Administration SBA Programs Congresswoman Kathy Castor Robert Chavarria Senior Area Manager SBA South Florida District October 20, 2011

SBA Programs And Services Information to Start and Run your Business Financial Assistance Federal government Contracting Assistance Business Training and Counseling Disaster Assistance

Small Business Jobs Act of 2011 Assists Small Business In These Areas Placing More Capital in Hands ofPlacing More Capital in Hands of Small Businesses Small Businesses Small Business Contract Small Business Contract Opportunities Opportunities Promotes Small Business Exporting Promotes Small Business Exporting Training and Counseling Training and Counseling $12 Billion In Tax Relief $12 Billion In Tax Relief Treasury Department Small Business Treasury Department Small Business Funds for Small Business Lending Funds for Small Business Lending

SBA Economic Development Loan Programs 7 (a) Guaranteed Loan Program  Basic 7(a)  CAPline  Export Working Capital  International Trade  Export Express  SBA Express  Small Loan Advantage  Community Advantage  Patriot Express  Dealer Floor Plan Microloan Program 504 Loan Program

Eligible Uses of an SBA Loan Any Good Business Purpose Construction Construction Land & Building Land & Building Line of Credit Line of Credit Leasehold Improvements Leasehold Improvements Machinery & Equipment Machinery & Equipment Expansions & Renovations Expansions & Renovations Inventory & Working Capital Inventory & Working Capital Refinancing Business Debt Refinancing Business Debt Purchasing of Existing Small Purchasing of Existing Small Business Business

Small Loan Advantage 7(a) Loans Loans up to $250,000 Targets Underserved Communities 75% and 85% guarantee to Lenders Start, expansion, equipment, working capital, inventory Lender submits electronic two page application for an approval within minutes/other applications within one business day SBA Preferred Lenders (PLP) will do the loans PLP’s will have later delegated authority to approve loan requests without submitting to SBA after trial period

Pilot Community Advantage 7(a) Loans Pilot Program to increase the number of Lenders to Underserved Markets Mission focused Lenders will include Community Development Financial Institutions, Non Profit Certified Development Co’s., and SBA approved Micro-Lender intermediaries Loans up to $250,000 75% and 85% guarantee to Lenders Start, expansion, equipment, working capital, inventory Two page application for approval within 5 – 10 days

SBIC Program The SBA-licensed for profit Small Business Investment Companies (SBICs) and families of SBIC investment funds better leverage the capital they use to invest in small businesses Fund businesses through investments or loans SBIC’s provide managerial, operational, and technical assistance Invest in a wide range of industries

SBIR and STTR Research Grants Program Businesses is involved in scientific research and development (R&D) may qualify for grants by approximately 10 Agencies Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) To stimulate technological innovation Meet federal R&D objectives High potential for commercialization Agencies listed in SBA website- sba.gov

4 MAJOR CONTRACT SURETY BONDS FREQUENTLY REQUIRED SBA guarantees Surety Bond Companies against a percentage of losses sustained as a result of default on: 1)Bid Bond 2)Performance Bond 3)Payment Bonds 4) Ancillary Bonds SBA will guarantee bonds up to $2 million written by any surety company that has been approved to participate, and is listed in the US Treasury ’ s Circular 570

Types of SBA Disaster Loans Home Disaster Loans –Homeowners – Repair, replace, refinance real property - $200,000 –Homeowners – Mitigate/prevent future loss – 20% of approved loan –Renters and homeowners - personal property $40,000 Business Physical Disaster Loans –Businesses of all sizes - to repair or replace real estate, equipment, furniture, etc. – loans up to $2,000,000 –Small or large businesses – Mitigate/prevent future losses – 20% of approved loan Economic Injury Disaster Loans (EIDL) –Small businesses and agricultural coops only (NAICS size standards) –Economic injury caused by a disaster –Maximum loan amount - $1,500,000

SBA Certification Programs 8(a) Business Development HUBZone Empowerment Contracting Woman-owned Small Business (WOSB)  Self-Certifications Small Business – NAICS Codes Veteran-owned Small Business (VOSB) Service Disabled Veteran-owned Small Business (SDVOSB) VA Verification Program Federal Contract Certifications

8(a) Business Development Program andIndividuals must demonstrate Social and Economic Disadvantage –Social Disadvantage – individuals who are subjected to racial or ethnic prejudice or cultural bias within American society because of their identities as members of groups without regard to their individual qualities. –Economically Disadvantaged – individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital & credit opportunities as compared to others in the same or similar line of business who are not socially disadvantaged. For 8(a), Personal Net Worth must be less than $250,000 –While in 8(a), net worth can’t exceed $750,000 –Can deduct equity in business and personal residence

8(a) Business Development Program Firm must have at least 2 years in business but a waiver is available Must be a small business per SBA size standards Unconditionally owned & controlled by one or more U.S. Citizens –Must own 51% or more of the business. –Control –Control refers to the ability to manage the firm, set policies, control budgets, etc. Must demonstrate good character –No one on probation or parole is eligible available. Individuals and/or firm can use their eligibility only once to participate in program

Nature of contracts: Contracts are awarded by procuring agencies to SBA as the prime contractor. SBA subcontracts to the named 8(a) firm. Special contract clauses delegate administration responsibility to the procuring agency. Competitive threshold: When the estimated value (including options) exceeds $4 million for services and construction and $6.5 million for manufacturing, requirement will be competed among 8(a) firms. Contract Process

HUBZone - Historically Underutilized Business Zone Certification Program Develops historically underutilized urban and rural areas Stimulates Economic Development Create Jobs Establishes federal award preferences for small businesses

HUBZone Certification Program Designed to stimulate economic development and create jobs in historically underutilized business zones. HUBZone contracts may be sole-sourced when deemed appropriate by contracting officer when he or she: –determines does not have a reasonable expectation that two or more qualified HUB Zone small businesses will submit offers –determines that the qualified HUB Zone small business is qualified –determines that the contract will be awarded at a fair price

Women Owned Small Business Federal Contract Certification Program Provides Equal Access to Federal Contracting Opportunities For Women Owned Small Businesses (WOSB) For Economically Disadvantaged Women Owned Small Businesses (EDWOSB) Allows Contracting Officers to set aside specific contracts for WOSB’s and EDWOSB’s Effective February 4, 2011

Assistance for Veterans The SBA Office of Veterans Business Development offers a range of programs and services to assist veterans, Service- disabled veterans and Reserve Component members which include: Initial Counseling/Transfer of Information Website for veteran business owners/entrepreneurs Veterans Business Outreach Centers Website for Reservists Business Assistance through a network of District Office Veterans Business Development Officers (VBD Officers)

Small Business Teaming Pilot Program Announced September 2011 Implementation made possible by the Small Business Jobs implementation Helps small businesses work together in teaming arrangements to compete for larger federal for larger federal contracts Teaming Pilot Program grant award winners help find small businesses to form teams to find and bid on larger contracts

Small Business Teaming Pilot Program Grantee Raytheon Corporation Don Brechtel, Supplier Diversity Telephone: (727) Fax:(727) SBA District Office Technical Representative (DOTR) Althea Harris Lead Economic Development Specialist Telephone:(305) , ext. 152 Fax: (202) Address:South Florida District Office 100 S. Biscayne Blvd, 7 th Floor Miami, FL 33131

Other Future SBA Contracting Initiatives Mentor Protégé Matchmaking Conferences – Orlando and another Florida location; to be announced Train the Trainer Training – For Lead Business Development Officers to train 8(a) firms on 8(a) Processes - e.g. remedial plans, financials, Mentor Protégé Templates, Joint Ventures, etc. SBA Regions – 3,6,9 Grant Award Initiative – SBA Regions 3,5,7,9,10 To provide funding for one on one counseling to 8(a) firms Nationwide training for SBA staff - on how to better support 8(a), HUBZone, Women Owned Small Business, Veterans, etc in federal government contracting

Contracting Assistance For local assistance with how to contract with the Federal government Procurement Technical Assistance Center (PTAC) at the USF-Small Business Development Center Charlene Bostic (813) Or look up a PTAC nearest you at

Training and Counseling Provides assistance to start, expand, and manage your small business To prepare small businesses to succeed in applying for financing and do federal government contracting SCORE – National Network of entrepreneurs, business leaders, and executives Small Business Development Centers – USF-SBDC; are a national professional management and technical assistance affiliated with major universities

SBA Programs & Services Robert Chavarria Senior Area Manager U.S. Small Business Administration South Florida District Office (813) Serving Charlotte, DeSoto, Hardee, Hillsborough, Manatee, Pasco, Pinellas, Polk, and Sarasota Counties