“Nurturing the Entrepreneurial Spirit”March 3-4, 2011

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SBA

Provider of tools for successCapitalCounselingContracting

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Quote

• You read a book from beginning to end.

• You run a business the opposite way.

• You start with the end, and then you do everything you must to reach it. Harold Geneen, American Businessman

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Capital

Through participating lendersLonger-termStable – no balloons and renewalsTerms match use of proceedsIncludes things traditional lenders

reluctant to finance (working capital, etc.)

Length of term more important than interest rate

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Basic Finance Programs

• 7a -- $5 million maximum• International Trade• SBA Express• Pilots

• 504 – Fixed Assets Only• 20 year fixed, lower than market rate• Covers up to a $13.75 million project• Limited amounts of refinancing

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Small Capital

Micro LoansAlt.ConsultingF.O.R.G.ERecruiting Accion TexasRelending program

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Counseling, Training, Technical Assistance

Resource partners:ASBTDCSCOREWBCPRIMEMicro Lenders

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Contracting

Federal government as a customer Good, bad, and can be ugly! Set asides for certain categories 8a program HUBZones – census redesignations Veteran, women, etc. Preparation is key April 28, 2011 – Conference and Match

Making Event with Awards Luncheon at Verizon Arena

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Yes It Is Still a Global Economy

• We are joined at the pocketbook• US market – 300 million• World market – 6.2 billion (20x)• 95% of population outside US• 67% purchasing power outside US• 25% GNP from trade• 200,000 SB’s exporting $300 billion per

year

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Two More Points of Access to Capital

• Loans up to $250,000• Small Loan Advantage – only by

Preferred Lenders – streamlined paperwork

• Community Advantage – only by mission focused lenders like CDFI’s, etc., with track record in these communities – streamlined paperwork

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Coming Soon Programs

• Outreach to Underserved Markets

SBA and Department of Commerce studies show the importance of small-dollar loans to small business formation and growth in underserved communities.

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What is “Underserved Market”

• Small businesses in (or have over 50% of workforce residing in):• Low to Moderate Income (LMI)• Empowerment/Enterprise Zones• HUBZone• Start-Ups (less than 2 years)• Veteran-owned

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Council on Underserved Communities• Chaired by Cathy Hughes – chair

and founder of Radio One Inc and a former SBA borrower

• 20 Members• Serve as connection between SBA

and these communities• Identify barriers to success• Challenges to accessing capital

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Start-Up America

• Focus on small, high-growth firms• Impact Investment Fund – target:

• Underserved communities• Economically disadvantaged areas• Clean energy industries

• Early State Innovation Fund• Market gap $1-$5 million “Valley of

Death”

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Start-Up America

• Entrepreneurial Mentor Corps (SBA and Department of Energy)

• Business incubators for veteran-entrepreneurs (SBA, VA, and Labor)

• Empowering Entrepreneurs Roundtables – To Do List

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Start-Up America Focus

• Access to capital for high-growth start-ups

• Expanding entrepreneurship education and mentorship

• Commercialization of $148 billion in federally-funded research and development

• Remove unnecessary barriers• Expand collaborations of large

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Risk Mitigation -- Advocacy

• The small business “voice” (and small municipalities)

• Federal regulations – small business friendly

• Raising the issues that impact small businesses (including accounting issues)

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And

The optimist invented the airplane

The pessimist invented the parachute!

Gertrude Stein

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