Welcome To. America s Small Business Resource

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1 Welcome To America s Small Business Resource

2 ú Small business plays a vital role in North Carolina's economy There are more than 800,000 small businesses in North Carolina. 85% of North Carolina small businesses are considered very small (have no employees or less than 20)

3 ú Counseling and Training ú Government Contracting ú Financing ú Disaster Assistance ú Exporting ú Online Assistance ú Advocacy How can the SBA help you with your business? 3

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5 SCORE Business Counselors to America 6 chapters in North Carolina NC Small Business & Technology Development Center (SBTDC) 25 centers in the North Carolina Women s Business Center of North Carolina

6 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.

7 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) 7

8 Loan Guarantee Program ú 12 different loan programs ú Up to $5 million guaranty ú For start-up & existing businesses ú SBA 7a and 504

9 Some restrictions apply No businesses which benefit primarily from gambling or prurient interest; no businesses located outside of the United States; no businesses selling through pyramid plans Can't use SBA funds to pay down delinquent taxes. Non-profits aren't eligible Applicant must: Be an operating business; Be organized for profit; Be located in the United States (includes territories and possessions); Be small (as defined by SBA); Demonstrate a need for the desired credit (your write-up should address the fact that credit is not otherwise available); and Not be delinquent on federal debt (including principals owning 20% +).

10 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

11 7(a) Standard Loan Guarantee Loan Amount: Up to $5 million Use: Machinery, equipment, furniture & inventory, refinancing on existing loan, real estate, finance long-term or short-term working capital needs Working capital between 7 to 10 years (with wri8 en jus;fica;on for the 10 year term) M&E/F&F up to 10 years not to exceed useful life Real Estate up to 25 years Interest Rates Loans less than 7 years: $0 - $25,000 Prime % $25,001 - $50,000 P % Over $50,000 Prime % Loans 7 years or longer: 0 - $25,000 Prime % $25,001 - $50,000 P % Over $50,000 Prime % Interest Rates may be fixed or variable.

12 504 Loan Program Designed as an economic development program to support small business growth and helping communities with Business expansion Job creation Provides long-term, fixed-rate, financing for fixed assets or real estate How it works: Lender generally provides 50% SBA generally provides 40% financed through CDC Borrower down payment between 10-20%

13 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 13

14 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 14

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16 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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18 Background: The U.S. Small Business Administration (SBA or Agency) is proposing to amend its regulations to implement provisions of the Small Business Jobs Act of 2010 and the National Defense Authorization Act for Fiscal Year These changes will impact the following groups: 8(a), HUBZone, WOSB, SDVOSBs and Small Business entities.

19 SBA Proposed rules in the areas of : Government-Wide Mentor-Protégé Program (including HUBZone, WOSB, SDVOSB and Small Businesses) Limitations on Subcontracting Proposed SBA rulemaking impact on : Joint Ventures Affiliation Size recertification Similarly Situated Entities

20 The new standard Mentor-Protégé program will be patterned on the 8(a) Mentor Protégé program identified at 13CFR The 8(a) M-P program was designed as a business development tool to enhance the 8(a) protégé s capabilities, allowing for the provision of: Financial, technical, and/or management assistance Small business protégés to joint venture with large business mentors Mentor could own up to 40% of the protégé M-P relationship will offer assistance through loans, financing, prime contracts, and subcontracts Once implemented, all Small Businesses, HUBZone, WOSBs and SDVOSBs will be required to prepare written M-P package that will be reviewed, approved and monitored by a cognizant agency (more than likely SBA)

21 SBA is attempting to clarify what it means by informal joint ventures i.e., a joint venture not formed as a separate legal entity Would eliminate populated joint ventures for formal joint ventures Annual certifications of compliance from joint ventures, with possibility of suspension/debarment for noncompliance Uniform requirements for all small business programs regarding size and content of JV agreement Comparable to existing 8(a) JV requirements (e.g., small business must perform at least 40% of the work) HUBZone firms may JV with non-hubzone firms Size protests permitted, including for 8(a) JVs

22 The SBA proposed rule keeps the same subcontracting limits as found in the existing rule. However, the proposed rule would shift the focus to the total contract value rather than base the percentage off of the contract s labor costs like it is done today. A similarly situated entity is a firm that meets the same size/setaside status requirements as the prime contractor for the project in question Any work done by a similarly situated small business will not constitute subcontracting A prime contractor and its similarly situated subcontractors must perform the required amount of work themselves - cannot flow down to large business subcontractors Percentage of the prime contract award amount that will be spent on each similarly situated entity must be identified in a written agreement with the similarly situated entity Written agreement must be attached to the prime contractor s proposal

23 As of Oct. 14, 2015 WOSB is eligible for Sole Source Contracts Contract must be awarded at fair market price Section 825 of the 2015 NDAA utilizes language that requires a formal WOSB/ EDWOSB certification process, either by a Federal or State agency, the SBA or by a National Certifier approved by SBA. Na;onal Defense Authoriza;on Act (NDAA) removed the dollar value caps on WOSB / EDWOSB contract awards. The SBA s regula;on change was effective May 7, As of Oct. 14, 2015 WOSB is eligible for Sole Source Contracts Contract must be awarded at fair market price

24 Questions?

25 U.S. Small Business Administration North Carolina District Office Mia Fagley Lead Business Opportunity Specialist Phone: Small business s partner for success 25

26 PTAC as a Resource Rebecca Barbour Procurement Counselor NC Procurement Technical Assistance Center

27 What is the Procurement Technical Assistance Program? Authorized by Congress in 1985 (Congressional Program) Funded by the Department of Defense Administered by the Defense Logistics Agency (DLA) Provides matching funds through cooperative agreements with state and local governments and non-profit organizations

28 What are Procurement Technical Assistance Centers? Nationwide network of procurement professionals comprised of 94 centers with over 300 local offices Provide a wide range of services including classes and seminars, individual counseling, and easy access to information necessary to successfully compete for government contracts

29 How PTAC s Assist Small Business Assistance selling to the federal, state and local governments Understanding government rules and regulations Completing mandatory registrations and certifications Researching award histories Identifying contracting opportunities Reviewing bids and proposals Understanding GSA/VA contracts and schedules

30 How PTAC s Assist Large Business Make connections with small business subcontractors and suppliers Serve as a business development resource for small business suppliers Provide support for Small Business Liaison Officers and Supplier Diversity Primes Business development assistance for Mentor Protégé Programs

31 The North Carolina Procurement Technical Assistance Center Part of the Small Business and Technology Development Center, NC s leading business assistance and support resource Administered by North Carolina State University on behalf of the University of North Carolina system Statewide program comprised of six procurement counselors and a program director

32 NC PTAC Offices

33 QUESTIONS?