How To Get A Loan From The Small Business Administration

Transcription

1 U.S. Small Business Administration Programs & Services Presentation to: Somerville Small Business Forum Thursday, February 23, 2012 By: Alfred J. Titone, District Director New Jersey District Office

2 U.S. Small Business Administration Programs & Services What is SBA? Like you, we need to be agile and adaptive. Small Agency Guarantor Government Contracting Counseling Advocate (Watchdog) Ombudsman (Proponent) Disaster Assistance International trade In other words

3 SBA Services to Small Business: the 3 Cs Capital Access Counseling and Training Contracting with Fed. Government

4 Financing Your Business CAPITAL ACCESS

5 New &/or Improved Programs! Improved! All 7a and 504 loan limits raised from $2 million to $5 million Microloan limits raised from $35,000 to $50, Green Projects Program Surety Bond Program New! Community Advantage Program developed to include more regular SBA lenders, as well as community based, non traditional lenders. 504 program can be used to refinance real estate and capital equipment loans to a fixed rate loan (expires 9/27/12)

6 The 7(a) Loan Guarantee Program 7 (a) Loan Program Details SBA s Primary Business Loan Program Broad eligibility requirements Wide range financing options Maximum loan amount increased from $2 million to $5 million 85% guarantee on loans up to $150,000 75% on loans > $150,000 7(a) Loan Program Maturities & Interest Rates 5-10 years for working capital, machinery, equipment Up to 25 years for real estate, construction Prime % for loans of 7 years or less Prime % for loans over 7 years Rates can be higher for smaller loans 7(a) Program Guarantee Fees 2% on loans up to $150,000 3% on loans $150,001 - $700, % on loans $700,001 - $ 1 million 3.75% on loans > $1 million

7 SBAExpress General Details Maximum loan amount: Streamlined financing up to $500,000 Maximum Guaranty: 50% Uses: revolving line of credit/term loan Interest Rate Maximum interest: Prime +6.5% for less than $50,000 Prime +4.5% for more than $50,000 Guaranty Fees Vary with amount/type of loan

8 Microloans General Details Maximum loan amount: increased from $35,000 to $50,000 No Loan Fees Applied Maturity: shortest term possible (6 years or less) Maximum Interest Rate: Negotiable with intermediary Uses Purchase machinery, equipment, fixtures, working capital, leasehold improvements, increased receivables

9 504/Certified Development Company Program Details Maximum Loan Amount: increases from $2 million to $5 million 1.5% origination fees Maximum guaranty: 100% SBA s portion Uses: Long-Term; Fixed Assets Maturity: Generally years Maximum Interest: Fixed rate established when debenture backing sold CDC/SBA 40% Bank 50% Business Owner 10%

10 504/CDC - Refinance Refinance Program Details Maximum Loan Amount: increases from $2 million to $5 million 85% of debt or 85% of original loan had to be for fixed assets 1.5% origination fees Maximum guaranty: 100% SBA s portion Uses: Long-Term; Fixed Assets Maturity: Generally years Maximum Interest: Fixed rate established when debenture backing sold CDC/SBA 40% Bank 50% Business Owner 10%

11 Advantage Loan Initiatives Streamlined application for 7(a) loans up to $250,000 Guarantees: 85% on loans up to $150,000 75% on loans $150,001 > Small Loan Advantage Available to PLP participants across the country Expanding opportunities for entrepreneurs and small business owners in underserved communities Community Advantage Open to mission-focused lenders (CDCs, Micro-lenders and CDFIs)

12 Export Initiative and Loan Programs International Trade Loans $5,000,000 maximum, up to 25 yrs Used for working capital, facilities, etc Term Loan Export Working Capital Loans $5,000,000 maximum Short term not to exceed 3 years generally 1 year or less Export Express Loans $500,000 maximum, up to 7 years Can be used for revolving line of credit

13 Targeted Loan Programs Patriot Express $500,000 maximum, up to 7 yrs Used for revolving lines of credit, or term loan Dealer Floor Plan $5,000,000 max., $500,000 min. Short term not to exceed 5 years, but minimum 1 year 100% advance on inventory that can be titled Cap Lines $5,000,000 maximum, up to 10 years; exc. Builders 5 years Uses: Seasonal, working capital, contract, builders, others.

14 New Jersey Results (as of 1/31/12) FY SBA-backed loans for $170 mm FY2011-1,298 SBA-backed loans for $675 mm

15 CDC, CA, Micro & Export Express Lenders BANK/LENDER ADDRESS CITY ST ZIP TEL. # CDCs Across Nations Pioneers, Inc. (CDC) 15 Engle Street, Suite 107 Englewood NJ New Jersey Business Finance Corp.(CDC) 2050 Center Avenue, Suite 375 Fort Lee NJ Trenton Business Assistance Corp (CDC) 3111 Quakerbridge Road, 2nd Floor Mercerville NJ CA LENDERS Trenton Business Assistance Corp (CDC) 3111 Quakerbridge Road, 2nd Floor Mercerville NJ UCEDC (M) (CA) Liberty Hall Corporate Center, 1085 Morris Avenue, Suite 531 Union NJ MICRO LENDERS Regional Business Assistance Corporation (M) 3111 Quakerbridge Road, 2nd Floor Mercerville NJ UCEDC (M) (CA) Liberty Hall Corporate Center, 1085 Morris Avenue, Suite 531 Union NJ Cooperative Business Assistance Corp. 328 Market Street Camden NJ Isles Community Enterprises 714 South Clinton Ave. Trenton NJ Export Express LENDERS 1st Colonial National Bank (P) (E) (EE) (PTX) (C) 1150 Haddon Avenue, 2nd Floor Collingswood NJ BankAsiana (P) (E) (EE) (C) 7 Broad Avenue Palisades Park NJ BCB Community Bank (P) (E) (EE) (PTX) (C) 595 Avenue C Bayonne NJ Community First Bank (P) (E) (EE) (C ) 408 Elizabeth Avenue Somerset NJ Cornerstone Bank (E) (EE) 6000 Midlantic Drive, Suite 120S Mt. Laurel NJ Financial Resources Federal Credit Union (P) (E) (EE) (PTX) (C) 520 Route 22 East, 1st Floor Bridgewater NJ Magyar Bank (P) (E) (EE) (PTX) (C) 582 Milltown Road North Brunswick NJ Kearny Federal Savings Bank (P) (E) (EE) (PTX) (C) 1903 Highway 35 Oakhurst NJ Hopewell Valley Comm.Bank (P) (E) (EE) (C) 3800 Quakerbridge Road Hamilton Twp. NJ Heritage Community Bank (E) (EE) 530 East Main Street, Route #53 Denville NJ Fulton Bank of New Jersey (P) (E) (EE) (PTX) (C) 70 East Main Street Somerville NJ Republic Bank (P) (E) (EE) (C) Two Tree Farm Road, Suite A230 Pennington NJ Shore Community Bank (P) (E) (EE) (C) 201 Main Street Toms River NJ Two River Community Bank (E) (EE) (PTX) 44 Elm Street Westfield NJ

16 CONTRACTING with the Federal Government

17 Government Contracting The U.S. government is the world s largest buyer of products and services. In 2009, it purchased over $425 billion dollars in products and services. Government-Wide Small Business Contracting Goals: 23 Percent For small businesses in general 5 Percent For SDB s 3 Percent For HubZone businesses 3 Percent For Service Disabled Veterans

18 8(a) Business Development Certification Program Provides a broad scope of training and assistance to socially and economically disadvantaged firms. Must be in business for at least two years with a product or service that the federal government procures. HUBZone: (Historically Underutilized Business Zones) Provides federal contracting opportunities for qualified small businesses located in distressed census tract areas. Visit for more information. 18

19 Women-Owned Small Business Federal Contracting Program Program allows contracting officers, for the first time, to set aside specific contracting opportunities for certified WOSBs and will help federal agencies achieve the existing statutory goal that 5% of federal contracting dollars are awarded to WOSB s. 83 Industrial and Commercial Sectors Some examples are: Residential building construction Building equipment and finishing contractors Motion picture and video industries Automotive repair and maintenance And many more For more information visit:

20 COUNSELING & TRAINING

21 Business Counseling and Training SBA s Resource Partners: Small Business Development Centers SCORE Women s Business Center Provide free business counseling and training on a wide variety of topics and services vital to small businesses. Export Assistance For comprehensive information and assistance on starting or expanding your international business, you can go to: Or simply go to and type in exporting into the search box

22 SBA on the Internet Easy-to-find information to help small businesses start, grow & succeed. Small Business Training Network an online virtual campus offering free courses workshops and resources. facebook.com/sbaatlantic twitter.com/sbaatlantic

23 U.S. Small Business Administration Programs & Services Contact information: Presenter: Al Titone Financing: William Boone Claudia Yarborough Government Contracting: Richard Zilg Marketing and Outreach Tony Leta