U.S. Small Business Administration. The SBA Advantage. Resources and Programs for Success

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1 U.S. Small Business Administration The SBA Advantage Resources and Programs for Success

2 The SBA Advantage Millions of entrepreneurs use SBA resources and programs to: Start or grow a business Effectively compete in the marketplace Have you explored your Small Business Advantage?

3 A Nationwide Network Online Training Training any time & any where with computer and Internet access Internet-based training site provides: Free online courses and workshops Learning tools Direct access to electronic counseling and other forms of technical assistance

4 Financing-Small Business Advantage Do you know your financing options? Small business loans Loans for land and buildings Surety bonds for small and minority construction contractors Venture capital investing Export assistance Disaster assistance

5 Financing-Small Business Advantage SBA financial assistance programs can help small businesses: Start-up Grow/Expand Export goods and services Recover from a disaster SBA is primarily a guarantor of loans made by private and other institutions. The SBA does not offer grants to start or grow small businesses.

6 Financing-Small Business Advantage SBA 7(a) Guaranteed Loan Initiatives 7a program - up to $5 million for most needs Small Loan Advantage for smaller amounts Rural Lender Advantage - for smaller amounts, limited lenders SBA Express can be used for lines of credits Patriot Express - for career transition military, veteran borrowers and spouses Export Express for exporters Export Working Capital for exporters with contracts CAPLines working capital supporting certain contractors SBA 504 Guaranteed Loan Program Up to $5 million, Up $5.5 million for specific projects (e.g. Manufacturing and Positive Environmental Impact) For Real Estate and Long-Lived Assets (Equipment/ Machinery) Administered on behalf of SBA by CDCs

7 Financing Small Business Advantage Three Main Factors for eligibility are: 1. Type of Business: For Profit Some Franchises: check or call District Office for assistance Mostly Owner-Occupied Non-passive, Non-Investment, Not Illegal, No Gambling, No Lending Activities, No Pyramids 2. Purpose of Loan: Most Biz Activities, except speculative activities and/or R&D

8 Financing Small Business Advantage Three Main Factors for eligibility are: 3. Size of Business - Must meet SBA Size Standards for a small business: Max. tangible net worth of the applicant not more than $15,000,000; and Average net income after Federal income taxes (excluding any carry-over losses) of the applicant for the 2 full fiscal years before the date of the application is not more than $5 million OR - Size Standards set by the NAICS codes - General maximums are: Construction - from $7m to $33.5m Manufacturing from 500 to 1,500 employees Wholesaling 100 employees Service from $7m to $35.5m Retail from $7m to $35.5m Agriculture from $750k - $10.5m

9 Financing Small Business Advantage WIIFM The Small Business? Longer term for improved cash flow! Reasonable equity requirement! Improved servicing flexibility! Loan availability for start-ups and abnormal collateral ventures!

10 Financing Small Business Advantage Terms of Loans Working Capital 7 to 10 yrs Building/Land up to 25 yrs Purchase of Business Assets useful life of items Machinery Equipment Furniture/Fixtures Leasehold Improvements Mixed Use weighted average or up to longest term available for largest asset class

11 Financing Small Business Advantage What are Lenders and the SBA looking for in order to finance a Small Business? Feasible business plan Management expertise and commitment necessary for success Sufficient funds, including SBA guaranteed loan, to operate the business on a sound financial basis Adequate equity invested in the business Sufficient collateral Ability to repay the loan on time from the projected operating cash flow Owners and operators of good character

12 Financing Loan CDCs New Mexico Certified Development Companies Enchantment Land Certified Development Company Albuquerque, NM Ron Brown, Interim Director Las Cruces, NM Don Panagrossi-BDS Capital Certified Development Corporation (Limited Area By Referral Only) Austin, TX Toll Free Community Economic Development Company of Colorado (San Juan County ONLY) Denver, CO Edi Newberg Mountain West Small Business Finance CDC (San Juan County ONLY) Salt Lake City, UT Southern Utah

13 Financing Other Sources SBA Microlenders in NM WESST: The Loan Fund : New Mexico Community Lenders ACCION New Mexico Other Governmental Lenders NM Finance Authority USDA RD B&I Guarantees, Renewable Energy Loans/Guarantees & Revolving Loan Funds Check w/ local RD office Tribes, Pueblos, Nations loan funds for own members Case-by-Case Basis Venture Capital/Equity Investors State of NM EDD list:

14 NEED HELP WITH YOUR APPLICATIONS OR OTHER BUSINESS MATTERS? Procurement Technical Assistance Program (PTAP) Lead Center Santa Fe: NM Small Business Development Centers Women s Economic Self-Sufficiency Team (WESST) Service Corps of Retired Executives (SCORE) Minority Business Enterprise Center: Native American BEC (New Mexico Statewide) New Mexico BEC

15 Financing - 7(a) Lenders Participating SBA 7(a) Lenders 2013 NM Small Business Resource Guide NM District Office Quarterly Lender Rankings SBA District website:

16 A Nationwide Network NM Contacts Small Business Development Centers (SBDC) SBDC centers in 20 communities across NM Workshops/Training Schedules available online SCORE Counselors to America s Small Business Albuquerque (505) Las Cruces (575) Santa Fe (505) Workshops/Training Schedules available online Women Business Centers (WESST) GO-WESST 6 WESST offices located Albuquerque, Farmington, Las Cruces, Rio Rancho, Roswell, and Santa Fe Workshops/Training Schedules available online

17 The official resource for businesses to find: Compliance information Forms Contacts at government agencies

18 U.S. SMALL BUSINESS ADMINISTRATION SBA New Mexico Team CAPITAL ACCESS Lender Relations Specialist Bob Martin- (505)

19 Your SBA NM District Office General Questions? SBA New Mexico District Office 500 Gold Ave. SW, Suite Albuquerque, NM Toll Free NM Small Business Hotline: , select Option 2, followed by selection of Option 3.