1. What is the SBA?
The U.S. Small Business Administration (SBA) is a small independent Federal agency created in 1953 to assist, aid, counsel and protect small businesses. We accomplish this by providing information and guidance to existing businesses and to individuals who plan to go into business at our 60 district offices across the country.
SBA offers a wide range of services and programs and works with outside resources to help with every aspect of starting or expanding your business
The Sacramento District covers the 21 Northeastern Interior counties of California from San Joaquin to Modoc Counties.
In FY2011 (October – September) Our District assisted lenders and borrowers and maintained a guaranteed loan portfolio of $284,616,650 in loans made to 612 small businesses, that otherwise would not otherwise have had access to capital.

2. SBA Resources In-house counseling for business start-up
and development through resource partners
Website online resources & tools at
Provide In-House Training and Management & Technical Assistance
Business Plan Assistance
Small Business Development Centers
Are affiliated with Junior Colleges and Economic Development Entities
Sacramento SBDC: (916) and located at 1410 Ethan Way
SCORE the Service Core of Retired Executives
Offer free Expert Business Advice
Pre-Business Seminars
Sacramento Chapter:
located at 4990 Stockton Blvd.
(916)

3. The SBA Guaranteed Loan
If approved by lender, application is forwarded to SBA by lender
SBA processes the application, if approved the closing documents are forwarded to lender
Lender disburses loan
A small business loan approved through a financial lending institution that is backed by the Federal Government
With the SBA guarantee, businesses are able to obtain financing, otherwise not available through normal lending channels

4. 504 Loan Guarantee Program
Only for purchase of heavy machinery and real estate purchase/construction
Typically the project is 50% lender, 40% CDC/SBA and 10% injection from small business
SBA portion of project is a fixed rate loan in second position to a first note that borrower negotiates with a lender.
Has a job creation component for every $50,000 in debenture funds the borrower must create or retain one job.
So for example if a borrower purchases a $2 million dollar building there is a 50% loan with the bank for $1 million, a 40% debenture with SBA for $800,000 and the borrower injects $200,000 of his own cash. In this scenario the borrower must retain or create 16 jobs.

5. SMALL BUSINESS JOBS ACT: 504 LOAN PROGRAM DEBT REFINANCING
On September 27, 2010, the Small Business Jobs Act of 2010, P.L (Jobs Act) was signed into law.
The Jobs Act temporarily extends the 504 program to allow refinance without business expansion.
SBA has $15 billion in program authority for this commercial real estate and equipment refinance program. However, the amount of owner-occupied commercial real estate that has lost significant value is many times this amount.
All loans must be approved by September 27, 2012.

6. Jobs Act – 504 Debt Refinance Program
Restrictions
No refinancing of loans with an existing federal guaranty. (e.g. a 7(a) loan or USDA loan)
No refinancing of debt if it is to an Associate of the Borrower or a SBIC or New Market Ventures Capital Companies (NMVCC).
Some of you have probably met the 6’ 4” 265 lb guy with the nickname “tiny” and wondered how that works? Similar to 504 refinance the name doesn’t quite fit.
For same institution debt the transcript of account for the entire period of the loan must be provided. This will be used to determine overall creditworthiness of the Borrower.
This is to prevent 12-month rehabilitation of otherwise poor
credits from qualifying.
No refinancing where the creditor on the debt to be refinanced is in a position to sustain a loss causing a shift to SBA or all or a portion of a potential loss from an existing debt.

7. Sacramento District Office
Carrie Ellinwood Lead Lender Relations Specialist U S Small Business Administration (916)