AGENDA Background Information SBA Counseling Lending Government Contracting

Free Courses On Line myownbusiness.org/course_sba.html

Maximum Size Standards ManufacturingManufacturing –500 employees or less WholesalingWholesaling –100 employees or less Service and RetailService and Retail –$6 million or less in annual receipts There are many variations so check with the District Office if you feel you business is close to these maximumsThere are many variations so check with the District Office if you feel you business is close to these maximums

SBA in Hawai‘i Counseling and Training Financial Help – Loans Government Contracting –Small Business Set Asides –8(a) Sole Source Contracts –Women-owned Businesses –HUBZone Businesses

Small Business Resource Center

Counseling Partners SBRC – Library/Computers – Honolulu & Moloka‘i SCORE – volunteers, counsel in skill areas WBC – Women-owned small businesses Small Business Development Center Network –Professional counselors –In Hilo, Kihei Maui, Honolulu, Kaua‘i Com. College –Under University of Hawai‘i at Hilo

Financial Assistance Loans –Primarily made by private lenders, with SBA guaranties –Guaranties are generally up to 85% of loans to $150,000; 75% of loans above $150,000

SBA Borrower Requirements Good character Management expertise and commitment to succeed Reasonable personal contribution or business equity Feasible business plan Sufficient collateral Ability to repay loan from projected operating cash flow

Lending History Loans428 Loans $63.2 Million$52.9 Million

Loan Activity, FY Nine months ended 6/30/06

COMMUNITYEXPRESS LOAN

Congressional Goals Prime Small Business23 % SDB 5 % Women Owned 5 % Hub Zone 3 % Veteran 3 %

Percentage to Sm Bus

Achievements in Hawai‘i – 2005 $ Million % Small Business$58843 % Small Disadvantaged Bus.$39929 % Woman Owned Business$102 8 % HubZone$ 57 4 % Veteran – SDVOSB$ 2 --

8(a) Small Disadvantaged Business (SDB) HUBZone (Historically Underutilized Business Zone) Certifications Available through SBA

The 8(a) Program Must be a small business A for-profit small business Owned/Controlled by a minority person A U.S. Citizen Minimum 2 year experience by the firm Personal assets of < $250,000 –Excludes home and business assets

Benefits of 8(a) Program Firms can receive sole-source contracts below $3 million Firms can compete above $3 million limited to 8(a) firms only Mentor/protégé program is available Joint Venture permitted on larger contracts

The 8(a) Program FY 2003 FY 2004 FY (a) $ Million $268 $229 $283

The 8(a) Portfolio As of July firms in the portfolio In 2005 – 110 firms contracts/mods 716 transactions

The Native Hawaiian Organization (NHO) Program An NHO is a community service organization serving Native Hawaiians A non-profit corporation that has filed articles of incorporation with the Hawai‘i Department of Commerce and Consumer Affairs Is controlled by Native Hawaiians Whose activities principally benefit Native Hawaiians For profit 8(a) firms may become subsidiaries of NHOs The NHO must acquire 51% of the 8(a) firm The 8(a) firm can be located anywhere in the United States The Benefit – non-bid contracts of unlimited size

Current 8(a) Firms Owned by Native Hawaiian Organizations 8(a) FirmPrincipal of the 8(a) Firm NHOPrincipals of The NHO JTSI, Inc.Cynthia PachecoNā ‘Ōiwi KāneRon Jarrett Bruss Keppeler The Hana Group, Inc.Alvin PauoleHui ‘O Hana PonoDavid Cooper HBC ManagementIrwin Cockett Dawson Group, Inc.Christopher DawsonHawaiian Native Corporation Beadie Dawson Pelatron, Inc.Thomas Aimoku McClellan Pacific Center for Economic Development Harvard Kim Kimo Kahoano Honolulu Marine LLCCharles PiresMana‘o Nui, Inc.Bryan Ho Akimeka Technologies LLCPhil KahueAlaka‘ina FoundationVaughn Vasconcellos Hawai‘i International Environmental Svc. Mayumi RandallHui O HanohanoGeorge Jones Omega Global SolutionsDennis KeohokaloleRoyal Hawaiian Foundation Ty Dennis Kukulu LLCTodd ShishidoNH Legal Defense & Education Fund Walter Kaneakua Dwight Kealoha Kuhana AssociatesPaul Komeiji The Teho CompanyMatthew TehoHonu‘apoKendis Teho