Jo Ann Lawrence Louisiana District Office

 Aid  Counsel  Assist  Protect the interests of small business concerns  Support  Champion small businesses SBA's Mission and Purpose

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

Programs Of Assistance  Financial Assistance Programs  Non- Financial Assistance

Non-Financial Assistance Programs uGovernment Contracting Assistance ($220B Market Place) Prime Contracts Subcontracting Assistance Certificate of Competency (COC) Size Determination uSurety Bond Program uProcurement Network (DSBS), SUB-Net, and Tech-Net uSmall Business Innovation Research Program (SBIR) uHubzone Empowerment Contracting uBusiness Information Centers (BICs) uSmall Business Development Centers (SBDCs) uService Corps of Retired Executives (SCORE) uSmall Disadvantaged Business Certification (SDB) uSection 8(a) Business Development Program uSection 7(j) Management and Technical Assistance uBusinessLaw.gov uSBA Small Business Classroom

Surety 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 Contracting 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 Requirements Business located in designated HubZone area 35% of employees reside in HubZone 51% Unconditionally owned by U.S. Citizens

Section 8(a) Business Development 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) 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) 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 CAPITAL

ATTENTION!! SBA DOES NOT offer grants to start or expand small businesses, although SBA does offer a wide variety of loan programs for these purposes.

Financial 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 Program u Generally, SBA may guarantee up to $1.5 million of a loan made to a small business by a bank or non-bank lender. u The guaranty rate is 90% until Recovery Act Funds are exhausted or 9/30/2010 u The guarantee SBA provides encourages the lender to make more loans to small businesses.

Use Of Loan Proceeds l Start-up l Expansion l Working Capital l Inventory l Machinery/Equipment l Furniture/Fixtures l Purchase/Construct building l Business buyout l Leasehold improvements l Debt restructure

Terms 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.

Fees vSBA charges the lender a nominal fee for SBA to provide the guaranty. vUnder Recovery Act, upfront guaranty fees eliminated until 12/31/2009

New SBA Express 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 (ARC) LOANS Begins June 15, 2009 Up to $35, % Guarantee by SBA Deferred Payment Interest Free No upfront SBA Fees Commercial Lenders

AMERICA’S RECOVERY CAPITAL (ARC) LOANS ELIGIBILITY Established business Viable For Profit Small Struggling to make payments Not in default

AMERICA’S RECOVERY CAPITAL (ARC) LOANS USE OF PROCEEDS Mortgages Term Loans & Revolving Lines of Credit Capital leases Credit card obligations Vendors notes payable Suppliers Utilities

AMERICA’S RECOVERY CAPITAL (ARC) LOANS Disbursed within six months Payment deferred for 12 months Five years to repay

PATRIOT EXPRESS Loans up to $500, % Guarantee until Recovery Act Funds are exhausted or 9/30/2010 Interest rates 2.25% %

PATRIOT 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 BUSINESS” 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 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 have in common with hundreds of thousands of other businesses?

They have all been helped by the U.S. Small Business Administration!

Louisiana District Office One Canal Place 365 Canal Street, Suite 2820 New Orleans, LA Telephone: (504) Fax: (504)

Call the SBA Answer Desk U-ASK-SBA ( ) Louisiana District Office (504) Please visit our Louisiana SBA Web Site -

“Supporting the Formation, Growth, Prosperity, and Viability of Louisiana’s small businesses.” Louisiana District Office Thank you!!