SBA and Women-Owned Businesses

8/3/2019 SBA and Women-Owned Businesses

1/30

U.S. Small Business Administration

The SBA AdvantageResources and Programs for Success

SBA and Women-OwnedBusinesses


2/30

The SBA Offers Assistance

Everyday, MILLIONS of entrepreneursturn to SBA resources and programs

Since July 30, 1953, the SBA has delivered

millions of loans, loan guarantees, contracts,counseling sessions and other forms ofassistance to small businesses.

We help you start a business, grow a business,access federal contract opportunities and learnto effectively compete in the market place


3/30

Leadership traits

Decision-makingskills

Ability in managingemployees

Knowledge of marketing basics

Knowing how to forecast for future growth

Skill in weighing your finances andknowing financing options

Teach Management Skills To Succeed


4/30

Are you a self-starter? How well do you get along with different

personalities?

Are you good at

making decisions? Do you have the

physical/emotionalstamina to run a

business? How well do you plan and organize?

Is your drive strong enough?

Are you prepared for how the business mightaffect your family?

Evaluate/ Re-Evaluate Your Business Self


5/30

SBA on the Internet

www.sba.gov

Easy-to-findinformation to help

small businessesstart, grow andsucceed.

Small Business Training Network an onlinevirtual campus offering free courses, work-shops and resources.


6/30

Whats at SBA.GOV?


7/30

Just for Women on SBA.GOV

SBAs Officeof WomensBusinessOwnership

The NationalWomens

BusinessCouncil


8/30

The SBA strives to reach those underservedby our programs including:

Women

Native Americans

Young Entrepreneurs

Rural area

business owners

Veterans

Our Initiative to reach the Underserved


9/30

How can SBA assistance help you?

Generally, we at SBA like to explainour assistance as

Three Csand a D

Providing access to CAPITAL

Providing access to CONTRACTS Providing access to COUNSELING

And offering DISASTER assistance,through direct loans, to help small

businesses, homeowners and non-profitsrecover

We can also give you expert assistanceto help you export when you are ready


10/30

What the First C Can Do

SBA financial assistance programs

can help you:

Export your goods and services

Recover from a disaster

For small business loans, the SBA is primarilya guarantor of loans made by private lenders

and other types of non-profit institutions.

The SBA does not offer grants to start orgrow small businesses.

Start or grow your business


11/30

What First C Programs SBA Offers

Small business start-up and working capitalloans 7(a) Loan Program up to $2 million

Loans for land and buildings 504 Program up to $ 5 million

Microloans up to $35,000 Surety bonds for small and minority

construction contractors

Venture capital investing

Export assistance loansfor working capital

Disaster assistance

Direct Disaster Loans


12/30

SBAs Loan Guaranty Qualifications

Owners and operators of good character

Feasible business plan

Management expertise and commitmentnecessary for success

Sufficient funds, including SBA guaranteedloan, to operate the business on a soundfinancial basis

Adequate equity invested in the business

Sufficient collateral Ability to repay the loan on time from the

projected operating cash flow


13/30

Prime + 2.25% for loansof 7 years or less

7(a) Loan Program Maximum Interest Rates

Prime + 2.75% for loansover 7 years

Rates can be higherfor smaller loans

The Cost of Capital


14/30

SBA Micro-Loans

Maximum loan amount:

$35,000

May be used topurchase machinery,equipment, fixtures,

working capital,leaseholdimprovements; or toincrease receivables

Shortest term possible (6 years or less)

These loans usually carry the maximuminterest, which is negotiable with the SBAintermediary


15/30

International Trade Loan Program

Maximum loan amount of up to $2 million acquiring long-term, fixed assets or refinancing debt for that purpose

Maximum guaranty of 75% if more than $150,00085% if less than $150,000

Maturity up to 25 years, with varying interest

The National Export Initiative

Export Working Capital Program

Short-term working capitalfor exporters

Up to $2 million (may becombined)90% guarantee up to $1.5million

Generally for one year or

one transaction cycle.


16/30

SBAs Second C - Counseling

The SBA and its partners provide business

counseling and training and this counselingprovides you with a big advantage.

Your St. Louis SBA District Office After Dec. 13 - 222 Spruce St., Suite 10.103, St. Louis

Grace Hill Women's Development Center, at 2324 NorthFlorissant. (Womens Business Center)

SCORE- 7 Chapters Across Missouri

SBDCs (or SBDTCs in MO) - 5 Small BusinessDevelopment and Technical Assistance Centers in theMetro area

St. Louis Veterans Business Resource Centers


17/30

The 3rdC - Contracting

The Women-Owned Small Business (WOSB)

program authorizes contracting officers to setaside certain federal contracts for eligible:

Women-owned small businesses (WOSBs) or,

Economically disadvantaged women-owned smallbusinesses (EDWOSBs)

The Federal Acquisition Regulatory Council sets

the program regulations in the FAR (part 19)

The SBA implements and administers theprogram.


18/30

The WOSB Contracting Rule

The New WOSB Rule, implemented in 2011, ispart of the Obama Administrations commitment toexpand opportunities for small businesses tocompete for federal contracts.

The rule identified 83 industries in which WOSBsare under-represented or substantially under-represented in the federal contract marketplace.

Its another tool to help achieve the statutory goal

that 5 percent of federal contracting dollars whichare supposed to go to women-owned smallbusinesses.


19/30

Impact of the WOSB program

Levels the playing field for WOSBs tocompete for and win federal contracts

Provides procuring agencies a tool tohelp meet their WOSB contracting goal

Ultimately, the program helps create andretain more jobs

for Women OwnedSmall Business.


20/30

Eligibility Requirements for WOSBs

Meet small business size standard for the primary NAICS

code and contract

At least 51% unconditionally and directly owned by womenwho are U.S. citizens*

The woman must manage the day-to-day operations

The woman must make the long-term decisions for thebusiness

A woman must hold highest officer position

The woman must work at the business full-time duringnormal working hours

No minimum amount of time the business has beenoperational


21/30

Eligibility Requirements for EDWOSBsSame requirements as WOSBs (on previous page) PLUS:

Personal net worth (assets minus liabilities) is lessthan $750,000 excluding: Ownership in business and primary personal residence

Income reinvested or used to pay taxes of business

Funds reinvested in IRA or other retirement account*

Transferred assets within two years to or on behalf ofimmediate family member for select purposes**

Adjusted gross income average over three yearsis $350,000 or less excluding: Income reinvested or used to pay taxes of business

Fair market value of assets is $6 million or lessexcluding: Funds reinvested in IRA or other official retirement account


22/30

Two Ways to Become WOSB Eligible

1) Self-Certification Register in CCR as WOSB or EDWOSB Compile and upload all required documents

to the repository, and

Represent your status in ORCA

2) Third Party Certification

(list available at www.sba.gov/wosb) You register in CCR as WOSB or EDWOSB

You obtain certification from an SBA-approved third party

certifier.

The Third Party Certifier: Compiles and uploads all required documents

to the repository

Represents your status in ORCA


23/30

What is CCR and What Do I Need To Do?

CCR is an online government-maintained

database of companies wanting to do businesswith the Federal government available at:https://www.bpn.gov/ccr/default.aspx

To be eligible for a WOSB or EDWOSB set-aside you must check the WOSB or EDWOSBbox, as appropriate

You must meet ALL

requirements to checkthe box
https://www.bpn.gov/ccr/default.aspxhttps://www.bpn.gov/ccr/default.aspx


24/30

You Must Also Have an SBA GLS Account

Go to: https://eweb.sba.gov/gls

Click on Instructions forGLS forinformation on how to request anaccount

Go to Request SBA User ID to createan account

Then log into your GLS account
https://eweb.sba.gov/glshttps://eweb.sba.gov/gls


25/30

What and Where is the WOSB Repository?

By statute, documents verifying a WOSB or

EDWOSBs eligibility must be submitted to thecontracting officer (CO) on a bid

Rather than have WOSBs submit documents toa CO each time, the SBA has created adocument warehouse

A WOSBs documents in the repository can beaccessed only by the WOSB, SBA and a CO

(only with your permission.)

Once logged into GLS, click on Women-Owned Small Business Program Repository


26/30

What Needs to Be Uploaded?

Birth certificates, naturalization papers,unexpired passports to verify U.S. citizenship

Copy of JV agreement (if applicable)

Copy of WOSB/EDWOSB Certification (OMB

approved form) DBA certificate

Corporate information relating to verifyingownership by a woman or women

EDWOSBs: All of above andSBA Form 413,Personal Financial Statement for eachwoman claiming economic disadvantage.


27/30

The Surety Bond Guarantee Program

with two options available:

Prior Approval Program (Plan A): SBA guarantees 90% of a suretys paid losses, expenses

on bonded contracts up to $100,000

and on bonds for socially and economicallydisadvantaged HUBZone contractors andveterans & service-disabled veterans.

All other bonds guaranteed in the Plan A programreceive an 80% guarantee.

Preferred Surety Bond Program (Plan B) SBA guarantees 70%, but sureties may issue,

monitor and service bonds without SBAs prior

approval.

SBA Can Help You Bond Your Contracts


28/30

For Homeowners & Renters to Recover

SBA provides Disaster low-interest loans:

Restore primary residences to pre-disaster conditions and torepair or replace uninsured personal property

Finally a word about the D

Physical Disaster Loans for Businesses

Loans of up to $1.5 million for businesses of any size

Economic Injury Disaster Loans

Loans of up to $1.5 million to small businesses to covernecessary operating expenses curtailed by the disaster

ALSOMilitary Reservist Economic Injury Disaster

Loans

Funded through the disaster program after the 9/11conflict, these loans cover necessary operating expensesbecause owner or essential employee is federally

activated


29/30

Your Voice in Government

The SBA Office ofAdvocacyworks to ensure federalrulesand regulations do notunfairlyaffect small business.

The SBA Office of National Ombudsman

assists small businesses subjected to unfairaudits, fines or enforcement actions.


30/30

Your SBA

For more informationAbout your local

SBA resources go to:www.sba.gov/localresourcesAnd, follow us on:

FaceBook at SBA Great PlainsAnd Twitter - @SBAGreatPlains
http://www.sba.gov/localresourceshttp://www.sba.gov/localresources

SBA and Women-Owned Businesses

Documents

Transcript of SBA and Women-Owned Businesses