U.S. Small Business Administration (SBA) ACCESS TO · PDF fileVisit us at 9 ... Education,...
-
Upload
truongkhanh -
Category
Documents
-
view
219 -
download
2
Transcript of U.S. Small Business Administration (SBA) ACCESS TO · PDF fileVisit us at 9 ... Education,...
U.S. Small Business Administration (SBA)ACCESS TO CAPITAL & FEDERAL CONTRACTING
PROCUREMENT, SUPPLY CHAIN & DBE DIVISIONSEPTEMBER 28, 2016
Philadelphia District Office
Parkview Tower
1150 1st Avenue, Suite 1001
King of Prussia, PA 19406
(610) 382-3062
www.sba.gov/pa
610 382-3077
Visit us at www.sba.gov 3Visit us at www.sba.gov 3
Agenda• SBA Programs and Services
– Technical Assistance (Counseling)
– Access to Capital (Capital)• 7a Loan program• Microloans• 504 Loan Program• Alternative Financing
Visit us at www.sba.gov 4Visit us at www.sba.gov 4
Agenda
COUNSELING(Technical Assistance)
Visit us at www.sba.gov 5
Technical Assistance
• Free Consulting and Low-Cost Training
• Resource Partners– Small Business Development Centers
(SBDC) – www.pasbdc.org– Counselors to America's Small Business
(SCORE) – www.score.org– Women’s Business Centers (WBC)
• Small Business Training Network SBA Training Online
Visit us at www.sba.gov 6
• Start – Up Businesses– Business Plan– Financial
Projections– Financing
Assistance
• Existing Businesses– Managing and Growing a
Business– Developing New Markets– Financing Assistance– Accounting Issues– Human Resources– Product Development– Patent Search– International Trade– And Much More…
Technical Assistance
Visit us at www.sba.gov 7
Technical Assistance
General Courses– Write a Business Plan– Start Your Business– Manage Your Business– Exiting Your Business
Targeted Courses– Marketing– Computer Security– Building Your Website– International Trade– Small Business Tax Center
Small Business Training Online
“Anytime, Anywhere”
Small Business Learning Center
Visit us at www.sba.gov 8
Visit us at www.sba.gov 9
Technical AssistanceSmall Business Development Centers
1. BucknellUniversity(E)2. Clarion University(EW)3. Duquesne University(W)4. Gannon University(W)5. Indiana University of PA (W)6. Kutztown University(E)7. Lehigh University(E)8. Lock Haven University(E)9. Penn State University (EW)10. Saint Francis University(EW)11. Saint Vincent College(W)12. Shippensburg University(E)13. Temple University(E)14. University of Pittsburgh(W)15. University of Scranton(E) 16. University of PA: Wharton School of Business(E) 17. Widener University(E)18. Wilkes University(E)
Philadelphia DistrictPittsburgh District
www.pasbdc.org
10
Technical Assistance
Philadelphia District Counties not shown:• Clinton • Fulton• Huntingdon • Juniata• Mifflin • Potter
Visit us at www.sba.gov 11
www.SCORE.org
Visit us at www.sba.gov 12
Women’s Business Centers
Assets Lancaster Women’s Business Center100 South Queen StreetLancaster, PA 17603
Women’s Business Development Center 1315 Walnut Street, Suite 1116Philadelphia, PA 19107
Seton Hill University E-Magnify1 Seton Hill DriveGreensburg, PA
3
2
1
Visit us at www.sba.gov 13Visit us at www.sba.gov 13
Agenda
CAPITAL(Access To Capital)
Visit us at www.sba.gov 14Visit us at www.sba.gov 14
What Lenders Look For• 5 Cs of Credit
– Character• Background, Education,
Experience, Credit
– Capacity• Source of Repayment:
– Collateral• Assets you own
– Capital • Money you have invested
– Conditions • Your Industry
Visit us at www.sba.gov 15
Information for Loan Application• Have you or the business ever filed
for bankruptcy?• Do you have any pending legal
issues?• Do you have any outstanding child
support?• Have you ever defaulted on any
federal contract or loan?• Do you have proof of owner equity?• Have you completed a business
plan with 2 years of financial projections?
• Have you had 3 or more months of sales or do you have contracts for future sales?
• Did your business make a profit last year?
• Do you have formal training/experience in your field of business?
• Have you had any personal or business bank accounts with checks returned due to insufficient funds?
• Will a credit report show that you have been current with creditors over the past 2 years?
• Have you addressed any derogatory statements on your credit report?
Visit us at www.sba.gov 15
What Lenders Look For
Visit us at www.sba.gov 16
Information for Loan ApplicationBusiness Information• Name of Business• Address of Business• Business Phone Number• Names of Principals and Percent
Ownership of each• Type of Business and Structure• Description of Business• Amount of Loan Request• Purpose of Loan Proceeds
– Working Capital– Inventory– Equipment– Supplies– Other
Personal Information• Name• Address• Residence Phone Number• Email Address• SSN• DOB• Experience• Citizenship• Adjusted Gross Income• Source of Income• Assets
– Cash, Savings, Insurance, etc.– Vehicles
Visit us at www.sba.gov 16
What Lenders Look For
Visit us at www.sba.gov 17
Information for Loan ApplicationReal Estate Information• Address• Mortgage Holder• Market Value• Date of Purchase and Purchase
Price• Mortgage Value• Any 2nd MortgagesLiabilities• Personal Loans and Student Loans• Mortgages• Vehicle Loans• Unpaid Taxes• Credit Cards• Pending Lawsuits• Other
Additional Information• If a Franchise – Universal Franchise
Offering Circular• Additional Franchise Information• Copy of Lease or Letter of
Commitment• Resumes of Principals• Use of Proceeds• Personal Financial Statements• Tax Returns for 3 YearsIf Purchasing an Existing Business• 3 Years Tax Returns for Business• Profit and Loss and Balance Sheet
to within 60 Days of Application• Copy of Purchase Agreement or
Letter of Intent to PurchaseVisit us at www.sba.gov 17
What Lenders Look For
Visit us at www.sba.gov 18Visit us at www.sba.gov 18
Access to Capital• Grants NOT available from SBA• The SBA is not a direct lender.• SBA offers loan guarantees to lenders
– Partial refund for failed loan– Lender obtains guarantee
• Lenders handle all loan transactions– Application– Approval– Disbursement– Servicing– Collection (Liquidation)
Visit us at www.sba.gov 19Visit us at www.sba.gov 19
Access to Capital
So why would a lender use an SBA Guarantee??
Visit us at www.sba.gov 20Visit us at www.sba.gov 20
Access to CapitalLoan Application Process
Loan Application
YES –Bank will do loan
commercially
NO –Bank will not do
the loan commercially
SBA –Bank won’t do loan commercially, but WILL do loan with
SBA guarantee
Visit us at www.sba.gov 21Visit us at www.sba.gov 21
Access to Capital
• Not all loans are eligible for an SBA Guarantee
• The SBA-Guaranteed Loan Program mitigates risk to the lender
• If the lender cannot originate the loan conventionally – the lender can consider an SBA guarantee
Visit us at www.sba.gov 22Visit us at www.sba.gov 22
Access to Capital
Primary reasons a lender would consider using the SBA loan guarantee:
• Start-ups
• Insufficient collateral
• Non-standard repayment terms
• Industry risk
Visit us at www.sba.gov 23Visit us at www.sba.gov 23
Ineligible Businesses
• Non-Profit Organizations
• Religious Organizations
• Charitable Organizations
• Lending Activities
• Gambling or Speculation
• Real Estate Investment• Pyramid Sales • Illegal Activities• Religious Schools• Prurient Sexual Material
• Prior Loss To The Gov’t: Owners who defaulted on federal loan or federally-assisted financing
Visit us at www.sba.gov 24Visit us at www.sba.gov 24
SBA Programs
• 7(a) Guarantee Loan Program– SBA Express– Veteran’s Advantage– CAPLine Program– Export Programs – Community Advantage
• 504 Program• Microloan Program
Visit us at www.sba.gov 25Visit us at www.sba.gov 25
7(a) Program • Eligibility
Independently owned and operated
Small business based on Federal standards (NAICS code or alternative size standard)
– Maximum Size Restriction Examples• Wholesaling - ≤ 100 Employees• Retail/Service – Avg. Sales $4.5 million to $32.5 million • Manufacturing - ≤ 500 Employees• Construction - $14 million to $33.5 million
– Alternative Size Standard • Tangible Net Worth < $15 million• Two year Avg. of Net Income up to $5 million
Visit us at www.sba.gov 26Visit us at www.sba.gov 26
7(a) Program
Use of Proceeds– Working capital (day-to-day)– Inventory– Lines of credit– Furniture/Fixtures/Equipment– Refinance debt for compelling reasons– Expansion/Renovation– Leasehold improvements– Land or buildings
(Purchase/Construction/Refinance)
Visit us at www.sba.gov 27Visit us at www.sba.gov 27
7(a) Program • Loan Amount
– Maximum of $5 Million (gross)• Guarantees
– ≤ $150,000 = 85%• Maximum $127,500
– > $150,000 = 75%• Maximum Guarantee of
$3.75 Million• Terms
– Usually up to 10 years for working capital– Usually up to 10-15 years for equipment– Up to 25 years for real estate
Visit us at www.sba.gov 28Visit us at www.sba.gov 28
7(a) Program • SBA Guarantee Fees
– Can be included in loan– Calculated on guaranteed portion of loan
• Maturity ≤1 year – 0.25%– ≤$150,000 = 0% (until 9/30/2016)
• Maturity >1 year– ≤$150,000 = 0% (until 9/30/2016)– $150,000 - $700,000 = 3%– >$700,000 = 3.5%
• Guarantee ≥ $1,000,000– Additional 0.25%
Only on guaranteed
portion –not
total loan amount
Visit us at www.sba.gov 29Visit us at www.sba.gov 29
7(a) Program • Interest Rates
– Determined by lender (Negotiable)– Maximum variable interest rate:
• < 7 Year Term = [Prime + 2.25%] • ≥ 7 Year Term = [Prime + 2.75%]• Loan ≤ $25K
– Additional 2%• Loan $25K - $50K
– Additional 1%• Higher rates may apply for Express programs
– Prepayment penalty • Maturity > 15 years and prepaid during 1st 3 years
Visit us at www.sba.gov 30Visit us at www.sba.gov 30
Community Advantage • Selected lenders providing Technical Assistance and
Economic development support in underserved markets– Certified Development Companies – SBA Microlenders– Community Development Financial Institutions
• Loans ≤ $25,000– No collateral required
• Technical Assistance– May be provided at Lender’s discretion
Visit us at www.sba.gov 31Visit us at www.sba.gov 31
• Use of Proceeds– Same as 7(a) – Subprogram of 7(a)
• Loan Amount– Maximum $250,000
• Guarantee– Same as 7(a)
• Maximum Variable Interest Rates– Prime + 6%
Community Advantage
Visit us at www.sba.gov 32Visit us at www.sba.gov 32
Microloan Program
• Accessed through SBA Microlenders 12 in Eastern Pennsylvania– Microlenders Borrow Dollars from SBA and
Lend Directly to Borrowers– Use of Proceeds
• Working Capital• Machinery and Equipment/Inventory • Leasehold Improvements• *Cannot be used for down payment to
purchase real estate or LOC• TECHNICIAL Assistance
Visit us at www.sba.gov 33Visit us at www.sba.gov 33
Microloan Program• Small Dollar Amount Loans
– $500 to $50,000• Eligibility
– Generally the same as 7(a) Criteria• Maturity
– Short-term, Not to Exceed 6 Years• Fixed Interest Rates
– Negotiable– Loans ≤ $10,000 = Cost of Funds + 8.5% (Max)– Loans > $10,000 = Cost of Funds + 7.75% (Max)
Visit us at www.sba.gov 34
SBA Microlenders
Microloan Program
Community First Fund | 30 W. Orange St. Lancaster, PACounties: Adams, Berks, Chester, Cumberland, Dauphin, Franklin, Lancaster, Lehigh, Lebanon, Montgomery, Northampton, Perry & York.
Finanta | 1301 N. 2nd St., Philadelphia, PACounty: Philadelphia
Cooperative Business Assistance Corporation328 Market St., Camden, NJ | County of Operation: Philadelphia
First State Community Loan Fund 100 W. 10th St., Ste. 1005, Wilmington, DE 19801Counties: Chester & Delaware.
MetroAction, Inc. | 222 Mulberry St., Scranton, PA Counties: Carbon, Lackawanna, Luzerne, Monroe, Pike, Schuylkill, Susquehanna, Wayne & Wyoming.
North Central Penn. Regional Planning & Development Commission651 Montmorenci Rd., Ridgway, PACounties: Cameron, Clearfield, Elk, Jefferson, McKean & Potter.
The Enterprise Center Capital Corporation4548 Market St., Philadelphia, PA | Counties: Delaware, Montgomery, Philadelphia.
Women’s Opportunities Resource Center2010 Chestnut St., Philadelphia, PACounties of Operation: Bucks, Chester, Delaware, Montgomery & Philadelphia.
6
5
4
3
2
1
7
8
Visit us at www.sba.gov 35Visit us at www.sba.gov 35
504 Program
• Long-term financing program– Land– Buildings– Capital Equipment
• Access through CDC(Certified Development Company)
– 11 in Pennsylvania
Visit us at www.sba.gov 36Visit us at www.sba.gov 36
504 Program • Business Eligibility
– For Profit– ≤ 500 Employees
ORTangible Net Worth ≤ $15 million and Net Income After Taxes ≤ $5 million
– Job creation requirement (CDC Portfolio)
• Max 504 Loan Amounts– $5.5 million for Manufacturing/Energy
Improvements - $13,750,000 project– $5.0M for All Other Industries –– $12,500,000 project
Visit us at www.sba.gov 37
Certified Development CompaniesAltoona-Blair County Dev. Corp.
Altoona, PA | Area of Operation: Statewide Pennsylvania
Northeastern Economic Development Company Moosic, PA | Area of Operation: Statewide Pennsylvania
DelVal Business Finance Corp.Philadelphia, PA | Area of Operation: Statewide Pennsylvania
EDC Finance CorporationLancaster, PA | Area of Operation: Statewide Pennsylvania
Lehigh Valley Economic Development CorporationBethlehem, PA Area of Operation: Statewide Pennsylvania
Mid-Atlantic Business Finance CompanyGlen Burnie, MD | Area of Operation: Bucks, Chester, Delaware, Lancaster, Montgomery, Philadelphia and York counties.
NEPA AlliancePittston, PAArea of Operation: Carbon, Lackawanna, Luzerne, Monroe, Pike, Schuylkill and Wayne counties.
Pennsylvania Community Development& Finance CorporationReading, PA | Area of Operation: Statewide Pennsylvania
SEDA-COG Local Development CorporationLewisburg, PA | Area of Operation: Statewide Pennsylvania; concentrating on Centre, Clinton, Columbia, Juniata, Mifflin, Northumberland, Lycoming, Perry, Union and Snyder counties.
SEED Co.Exton, PA | Area of Operation: Statewide Pennsylvania
The 504 CompanyPhiladelphia, PA Area of Operation: Statewide Pennsylvania
11
10
9
8
7
6
5
4
3
2
1
Options• Factoring
– Sell your receivables– Receive 80% - 90% of value up front– Receive remainder when invoices are paid– Interest rates are usually 18% - 30%.
• Lease-Back– Sell your real estate/equipment for cash– Lease real estate/equipment back
Visit us at www.sba.gov 38
Alternative Financing
Options• Cash Advances
– Business receives a lump sum from lender– Lender receives a percentage of daily
receipts until loan and fees are paid in full
• Non-Bank Loans– Available through alternative lending
organizations (non-banks)– Interest rates can be as high as 20%.
Visit us at www.sba.gov 39
Alternative Financing
Visit us at www.sba.gov 40Visit us at www.sba.gov 40
41
Federal Government:Getting Started with
CertificationsJennifer Tilden
Lead Business Opportunity SpecialistPhiladelphia District Office
First Thing To Do
Obtain a Data Universal Number System (DUNS) Numberwww.dnb.com/us
DUNS Number can be obtained free-of-charge at time of SAM registration (see next slide)
42
System for Award Management (SAM)www.sam.govMust keep current (updated at least annually)
Replaces both Central Contractor Registration Database (CCR) (www.ccr.gov) and Online Representations and Certifications Application (ORCA) (https://orca.bpn.gov/)
Will eventually include other systems as well – single point of entry for federal contracting
43
Register Your Business
44
Self-Certifications•Small Business – NAICS Codes*•Woman-owned Business•Veteran-owned Business•Service Disabled Veteran-owned Business•Small Disadvantaged Business (SDB)
Formal Certification Programs•8(a) Business Development: Socially and economically disadvantaged firms enrolled in a 9-year business development program•HUBZone: Small businesses located in areas identified as historically underutilized business zones, and with 35% of its employees living in HUBZones
*online at www.sba.gov/sites/default/files/Size_Standards_Table.pdf
Federal Contract Certifications
WOSB Program
45Visit us at www.sba.gov
Two parts: WOSB and EDWOSB (Economically Disadvantaged)
Set-Aside – sole source contracts available
No maximum contract value
Not all NAICS codes are eligible
Can self-certify or use a third-party certifier
FAR 19.15
Veteran-Owned Small Business
Only exists within the Veteran’s Administration!
Go to Vet Biz for more information on how to register for these set asides, or we can offer some help navigating the process
PTACs are a GREAT resource for working through the VA paperwork, and they’re free!
Temple University
Lehigh
UPenn
46
Veteran’s Program
47Visit us at www.sba.gov
Applies to purchases over $3,000
Self Certified on SAM VA determines Service Disability
No term limits Competitive and sole-source program benefits Subcontracting and Prime Contracting goals FAR 19.14
Service Disabled Veteran Owned Small Business
Small Disadvantaged Business
Much like a state MBE
Business faces challenges above and beyond size, including race or handicap
Self certify on SAM for SDB status
All 8(A) businesses are SDB, not all SDB are 8(A)
48
Visit us at www.sba.gov49
Formal Certifications
Requires SBA Approval– 8(a) - Socially and economically disadvantaged firms enrolled in a 9-year business development program.
– HUBZone - Small businesses located in areas identified as historically underutilized business zones,and with 35% of its employees living in HUBZones.
8(a) Overview
Applies to all purchases Must be certified by the SBA Non- and competitive programs 9-year term - no renewals All 8(a) firms are SDBs Award must be made at fair market price FAR 19.8
Visit us at www.sba.gov50
HUBZone Program
51Visit us at www.sba.gov
Applies to purchases over $3,000 Must be certified by SBA - no term limits Recertification required every 7 years Competitive and sole-source program benefits 10% price evaluation preference Principal office must be in a HUBZone 35% of employees must live in a HUBZone FAR 19.13
Goal Achievement
Small Business (23%)
WOSB (5%)
SDB/8(a) (5%)
SDVOSB (3%)
HUBZone (3%)
FY 2013 23.39%($83.1 B)
4.32%($15.4 B)
8.61%($30.6 B)
3.38%($12.0 B)
1.76%($6.2 B)
FY 2012 22.25%($89.9 B)
4.00%($16.2 B)
8.00%($32.3 B)
3.03%($12.3 B)
2.01%($8.1 B)
FY 2011 21.65%($91.5 B)
3.98%($16.8 B)
7.67%($32.4 B)
2.65%($11.2 B)
2.35%($9.9 B)
FY 2010 22.66%($97.9 B)
4.04%($17.5 B)
7.95%($34.4 B)
2.50%($10.8 B)
2.77%($12.0 B)
FY 2009 21.89% ($96.8 B)
3.68% ($16.3 B)
7.57% ($33.5 B)
1.98% ($8.8 B)
2.81% ($12.4 B)
52
Know the Rules
Federal Acquisition Regulations (FAR)www.acquisition.gov/far
Subpart 8.4 – Federal Supply Schedules
Part 13 – Simplified Acquisitions
Part 14 – Sealed Bidding
Part 15 – Contracting by Negotiation
Part 19 – Small Business Programs
53
54
Prime Contract Opportunities
Research Past Purchases‒ GSA Federal Procurement Data System
https://www.FPDS.gov
Identify Current Procurement Opportunities‒ Federal Business Opportunities (FBO)
www.fbo.gov
Subcontracting Opportunities
Directory of Large Prime Contractorshttp://www.sba.gov/category/navigation-structure/contracting/contracting-opportunities/sub-contracting/subcontracting-opportunities-directory
System for Award Management (www.sam.gov)Search by NAICSUse this list to search Federal Procurement Data System
(www.fpds.gov)FPDS identifies companies winning contracts
SUB-Nethttp://web.sba.gov/subnet
55
SUBNet
56
Investigate GSA Schedule ContractsContracts with no dollars committedMost terms negotiated up frontMay not be the best route for small businesses.
Become a GSA schedule contractor
www.gsa.gov
57
GSA Schedules
Investigate Joint Venture/Teaming Arrangements
‒Excluded from affiliation – 13 CFR 121.103(f)(3)
‒“bundled” requirement
‒other than a “bundled” requirement
58
Joint Ventures & Teams
Market Your Firm
Present your capabilities directly to the federal activities and large prime contractors that buy your products and services
Attend procurement conferences and business expos
Attend Business Matchmaking events
59
Be Remembered-- Be Fabulous!….
60
Capability Statement
Capabilities: type of work you can do Facilities & Equipment: List all facilities, equipment and
resources used to manufacture your products or provide your services Expertise: A brief summary of your expertise and key staff
expertise Codes: List your CAGE Code, NAICS, FSC/PSC, DGS vendor
number Certifications: Give your special business status and GSA
number if you have one Customers: Provide a list of at least three to four of your key
customers
3 Rules for a solicitation:
-Read it…Read it…Read it!!!
-Pay attention to contract clauses
Request a Procurement History
Attend Pre-Bid Meetings
& Walk-Throughs
Get clarification of ambiguities
Proofread your proposal
Submit it on time!62
Prepare Your Offer
Helpful Web Sites
Agency Small & Disadvantaged Business Utilization Offices
www.osdbu.gov
Procurement and Technical Assistance Centerswww.sellingtothegovernment.net
Small Business Development Centerswww.sba.gov/sdbc/
SBA’s Government Contracting Pagewww.sba.gov/GC
63
Things To Remember
64
TARGET YOUR CUSTOMER: Who buys your product or service? How do they buy? When do they buy?
KNOW THE RULES: Federal Acquisition Regulations; Contract requirements and specifications; How to obtain contract history
PERFORM AS PROMISED: On-time delivery, Good Quality, at a Fair Price
Questions?
65