U.S. Small Business Administration
SBA Programs
USF-SBDC Small Business
Conference
May 01, 2013
Robert Chavarria
Senior Area Manager
South Florida District
Helping you start, grow and succeed.
South Florida District
SBA Mission Statement
Maintain and strengthen the nation’s
economy by aiding, counseling, assisting
and protecting the interests of small
businesses and by helping families and
businesses recover from national
disasters.
SBA National Website
www.sba.gov
SBA Programs And Services
•Business Training and Counseling
•Information to Start and Run your Business
•Financial Assistance
• Federal government Contracting Assistance
• Disaster Assistance
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SBA 3 C’s of Programs
•Let’s summarize current SBA assistance into
the 3 C’s:
oCounseling
oCapital
oContracting
•Now let’s add
oD for Disaster Assistance and
oE for Export Assistance
Business Training and Counseling
•Small Business Development Centers
•Procurement Technical Assistance Centers
•SCORE
•Women Business Centers
• Veteran’s Business Outreach Centers
• SBA Website – Training and Counseling
• Other Local Partners
SBA Loan Programs
• 7(a) Guaranteed Loan Programs
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Basic 7(a)
CAPLines (Lines of Credit)
Export Working Capital
International Trade
Export Express
Express
Small Rural Advantage
Small Business Advantage
Community Advantage
Patriot Express
Dealer Floor Plan Loan Program
• 504 Economic Development Loans
• Non 7(a)Micro loans
Maximum Loan Amounts
7(a) Basic Loan
CAPLines
SBA Express
Small Loan Advantage
Community Advantage
Patriot Express
Export Working Capital
International Trade
Export Express
Small Rural/Lender Advantage
504 - Facilities Loans
Microloans
$ 5,000,000
$ 5,000,000
$ 350,000
$ 250,000
$ 250,000
$ 500,000
$ 5,000,000
$ 5,000,000
$ 500,000
$ 350,00
Up to $5,000,000 – SBA
Portion
$ 50,000
Lenders will Look At 5 C’s of Credit
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Credit - Beacon Score/FICO 650+
Character – How have you paid in the past?
Capacity – Will you be able to repay the loan?
Collateral – Properties, cash.
Experience – More experience means better
credibility to the business.
• Conditions (Industry Risk)
• Capital (Includes Start Up Investment)
Loan Requirements
Credit
Investment
Collateral
Ability to Pay
What SBA Looks For
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Good Character
Management Expertise and Commitment
Feasible Business Plan
Adequate Equity or Investment
(25% to 30% injection for new business)
• Sufficient Collateral
• Ability to Repay the Loan from Earnings
What The Lender Looks For
• Overall risk of the loan
• Ability to repay the loan from earnings
• Do financials accurate reflect the business
operations
• Do financials meet business ratio
evaluation
• Accuracy of application
Business Plan
• The business plan is perhaps one of the most
important documents you can have for your
small business; it is a roadmap for your business
venture; one which can assist you greatly.
• If you don’t know where you are going, and you
don’t have a road map, any road will get you
there...
Eligible Uses of an SBA Loan
Any Good Business Purpose
• Construction
• Land & Building
• Line of Credit
• Leasehold Improvements
• Machinery & Equipment
• Expansions & Renovations
• Inventory & Working Capital
• Refinancing Business Debt
• Purchasing of Existing Small
Business
Ineligible Uses of Loan Proceeds
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Speculation
Partial Change of Ownership
Payment to Principals
Delinquent Payroll/Sales
Taxes
SBA
Loan
Ineligible Businesses
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Gambling
Real Estate Investment
Speculation
Lending Activities & life insurance companies
Businesses selling through a pyramid plan
Illegal Businesses
Non-Profit Organizations
Businesses providing prurient sexual material
Businesses which restrict patronage
Businesses owned by individual(s) on probation,
parole and with pending criminal charges
Benefits of 7(a) Loans
• REDUCES LENDER’S RISK of LOSS
• Broadens Bank’s Lending Activities:
Start-Ups
High Risk Businesses
Longer Terms Collateral Shortfalls
• Allows banks to increase its lending limits to
borrowers.
• Community Reinvestment Act (CRA)
• Increased Profitability to Banks
Selling loans on the Secondary Market.
Other Types of Financial Assistance
• DISASTER LOANS – For Home, Business,
Economic Injury (EIDL), and for Deploying
Reservists (MREID)
• SURETY BONDS – Bid, performance, payment,
and ancillary
• Small Business Investment Companies (SBIC)
• SBIR – Small Business Innovation Research
Program
• STTR – Small Business Technology Transfer
Program
District vs Tampa Bay Lending
• South Florida District
o 2012
1,638 Loans for $783,532,900
o 2013
664 loans YTD for $338,084,300
On pace to exceed $800 million
• Tampa Bay Area (Nine County Area)
o 2012
484 Loans for $247,608,700 (30% of loans; 31% of Dollars
o 2013
221 Loans YTD for $123,251,900 (33% of District; 36 of
Dollars)
On pace to exceed $295 Million for this FY; a 19% increase
over 2012
• Hillsborough County
o 2012
162 Loans for $69,058,500 (33% of Tampa Bay Area; 28%
of Tampa Bay Area Dollars)
o 2013
78 Loans YTD for $44,691,600 (35% of Tampa Bay loans;
36%of Tampa Bay Dollars)
On pace to exceed $107 Million, a 54% increase over 2012
National Export Initiative
• South Florida District Export Loan Volume
• 2010
63 Loans
• 2011
67 Loans
• 2012
79 Loans
Note: Goal is to double exports by the end of 2014.
Assistance through:
Resource Partner Assistance
USEAC’s
District International Trade Officers
Export Outreach Team formations
SBA Export Loan Programs
• Export Express
• Export Working Capital Program
• International Trade Loan
• Contact Charles Long
• (813) 228 – 2404 ext. 27
• Charles.Long@sba.gov
STEP Grant
A partnership with the U.S. Small Business
Administration, Enterprise Florida, Inc., the U.S.
Commercial Services, and the SBDC Network
Grants are offered to assist qualified business in
Florida who are “new to export” to indentify
growth strategies through the development of
customized Export Marketing Plans.
Contact Maria Yepes – USF-SBDC
(813) 905-5800
Federal Contract Certifications
• Formal 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
South Florida District Contracting
• South Florida District Contracting Offers
• 2010
181 Offers for $161,283,476
• 2011
159 Offers for $168,127,893
• 2012
145 Offers for $390,735,554
Note: Offers are dropping, however the Dollar
amounts are rising
8(a) Contract Process
• 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.
HUBZone Program
• HUBZone Certification Program
Small businesses located in areas identified as
historically underutilized business zones, and
with 35% of employees located in a HUBZone,
are eligible to receive competitive and ‘sole
source’ awards.
Women Owned Small Business Federal
Contract Certification Program
– Provides Equal Access to Federal Contracting
Opportunities
– For Women Owned Small Business (WOSB)
– Foe 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
– http://www.sba.gov/sites/default/files/Size_
Standards_Table.pdf
Application Process
For manual applications, contact your local SBA
Office where to obtain a paper application. The
South Florida District telephone number is
(305) 536-5521
If you want to apply using the electronic system,
send an e-mail to BDMIS@sba.govfor further
guidance and assistance.
Seek Additional Assistance
 Procurement Technical Assistance Center
(PTACs) www.dla.mil/db/procurem.htm
 Small Business Specialists
www.acq.osd.mil/sadbu/doing_business/index.htm
 Procurement Center Representatives (PCRs)
www.sba.gov/gc/contacts.html
 Commercial Marketing Representatives
(CMRs) www.sba.gov/gc/contacts.html
SBA Programs for Veterans
• Entrepreneurship Boot camp for Veterans with Disabilities
http://apps.whitman.syr.edu/ebv/
• Entrepreneurship Boot Camp for Families of Veterans with
Disabilities
http://apps.whitman.syr.edu/ebv/programs/families/
• Operation Endure and Grow – For National Guard and Reservists
http://apps.whitman.syr.edu/endureandgrow/
• VWISE – For Women Veterans
http://apps.whitman.syr.edu/vwise/
Boots to Business – For Transitioning Veterans in TAP DOD
Installations
http://www.sba.gov/bootstobusiness
Other SBA Initiatives
• Affordable Care Act
http://www.sba.gov/healthcare
• Encore Entrepreneurs
http://www.sba.gov/encore
• National Export Initiative
http://www.sba.gov/about-offices-content/1/2889
http://www.export.gov
Affordable Care Act
Internal Revenue Service:
www.irs.gov
Dept. of Health and Human Services:
www.healthcare.gov
Dept. of Labor:
www.dol.gov/ebsa/healthreform
U.S. Small Business Administration:
ww.sba.gov/healthcare
www.sba.gov
31
U.S. Small Business Administration
SBA Financing
and Other Programs
May 01, 2013
Presenter
Robert Chavarria
Senior Area Manager
South Florida District
(813) 228-2100 ext 24
robert.chavarria@sba.gov