How To Get A Loan From The Sba

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1 Welcome To America s Small Business Resource

2 Counseling and Training Government Contracting Financing Disaster Assistance Exporting Online Assistance Advocacy How can the SBA help you with your business? 2

3 SCORE Business Counselors to America 3 chapters in Colorado (303) Small Business Development Centers (SBDC) 14 centers in the Colorado Women s Business Center hosted by Mi Casa Resource Center Denver, CO (303)

4 DID YOU KNOW The world s largest buyer of goods and services is the Federal Government, with purchases totaling more than $500 billion per year. Contracts exist for every item imaginable, from paper clips to armored tanks Federal agencies are required to establish contracting goals, with at least 23 percent of all government buying targeted to small firms.

5 Self-Certified: Small Business Veteran / Service Disabled Veteran Woman Owned Small Business (WOSB) SBA Certified: 8(a) HUBZone Goals (percent of Federal Contracting Dollars): 23% 3% 5% 5% 3% How to self- certify: MUST register in the System for Award Management (SAM) 5

6 Procurement Assistance Government Contracting Programs 8(a) Program The 8(a) team at the Colorado District office currently has 132 active firms. This past year, 7 of their firms were recognized in Denver Business Journal s Top 20 Minority-Owned Businesses in CO Contracts worth $1.06 billion Contracts worth $871 million Contracts worth $1.20 billion Contracts worth $1.04 billion 6

7 Loan Guarantee Program 12 different loan programs Up to $5 million guaranty For start-up & existing businesses

8 How does this process work? Step 1 Work with SBA and our resource partners to develop a finalized business plan Step 2 Visit your bank or lending institution to discuss financing options Step 3 Lender decides whether to work with you on a traditional loan or seek an SBA guarantee Step 4 - Lender contacts SBA to obtain SBA guarantee Step 5 If approved, lender works with you on loan closing

9 SBA Loans in Colorado FY2013 Total Loans Total 1,388 (#) $622.6 million

10 If you ve been turned down by a bank, these offer small loans for start-ups and existing business up to $50,000 Can be used for inventory, supplies, furniture, machinery, equipment, working capital, salaries, rent Cannot be used for payment of debt and real estate purchases Interest Rates between 8-13% Micro loan intermediaries: Microloan program Colorado Enterprise Fund (SBA funded) Region 10 Leap (SBA funded) Acción Rocky Mountain Micro Finance Institute (RMMFI)

11 Takes higher risks in exchange for potential higher returns Has a longer investment horizon than traditional financing Actively monitors portfolio companies via board participation, strategic marketing, governance, and capital structure Metric Typical Financing Size Over 3 Year Period Typical Cost of Financing Loans (no equity features) $250,000 to $10 million Interest 9 to 16% Maximum: 19% Debt with Equity features $250,000 to $10 million Interest 10 to14% Maximum: 14% Equity $100,000 to $5 million Equity For more information on the SBIC Program, please visit 11

12 Program Achievements & Success Stories In Fiscal 2013: The SBA issued $1.82 billion in new commitments to SBICs $2.83 billion in financing dollars were invested in small businesses 1,339 small businesses were financed An estimated 56,211 jobs were created...all at ZERO cost to taxpayers... The program's "success stories" include thousands of small businesses and a few of the more recognizable names: Staples AOL FedEx Jenny Craig Costco Callaway Cutter & Buck Amgen Apple Sun Microsystems Intel Outback Steakhouse Build-a-Bear Workshop 12

13 SBIR has helped thousands of small businesses to compete for federal research and development awards Some SBIR success stories: Artium Industries - High Sensitivity Laser- Induced Incandescence Instrument Atometric, Inc. - Micro/Meso Scale Manufacturing MicroFab Technologies, Inc. - Polymeric Coating by Ink Jet Printing 13

14 Companies supported by the SBIR Program generate some of the most important breakthroughs each year in the U.S. About 25 percent of R&D Magazine s Top 100 Innovations come from SBIR-funded small businesses. For more information on the SBIR Program, please visit: 14

15 Direct, low interest loans for: Homeowners Renters Business of all sizes Non-profits Physical Disaster Business Loans Economic Injury Disaster Loans FY2013 Colorado Disaster Loans Home Loans # $ 1402 $61.17 million Business Loans 184 $10.92 million Total 1586 $72.09 million In the case of a disaster prepare yourself, your belongings, and your business 15

16 The U.S. Export Assistance Center helps small businesses with the information, counseling, and loans they need to compete in the global marketplace. Assistance available: Trade Counseling Planning and Strategy Legal and Regulatory Issues Documentation and Product Requirements Trade Finance and Insurance Personalized Business Matchmaking Trade Missions Trade Shows Country and Industry Reports Customized Market Research Trade Data and Analysis

17 Office of Advocacy Advocate of small business concerns to Congress, White House, and Federal Agencies. John Hart, Regional Advocate National Ombudsman Works with Small Business to change regulations that are overly burdensome 17

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19 FREE Online Courses for Small Business Owners Starting a Business Writing a Business Plan Contracting Franchising Disaster Recovery Accounting Financing of Loans Marketing and Pricing Taxes-understanding how and why you pay Planning Your Exit

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21 Questions?

22 U.S. Small Business Administration Colorado District Office Lonnie Koyama Lead Economic Development Specialist Phone: ext Small business s partner for success 22