SBA Programs and Services

Transcription

1 U.S. Small Business Administration SBA Programs and Services Robert Chavarria Senior Area Manager South Florida District (813) ext 24 Serving Charlo.e, DeSoto, Hardee, Hillsborough, Manatee, Pasco, Pinellas, Polk, and Sarasota Coun;es

2 SBA Mission Statement Maintain and strengthen the na;on s economy by aiding, counseling, assis;ng and protec;ng the interests of small businesses and by helping families and businesses recover from na;onal disasters. SBA Na;onal Website To download a copy of the South Florida Resource Guide; And select Florida- South

3 SBA Programs And Services Business Training and Counseling Information to Start and Run your Business Financial Assistance Federal government Contracting Assistance Disaster Assistance

4 Start Up Assistance Start Up Basics Starting Your Business Managing Your Business Financing Marketing Employees Taxes Legal Aspects Outreach Programs

5 Business Training and Counseling Small Business Development Centers Procurement Technical Assistance Centers SCORE Women Business Centers Veteran s Business Outreach Centers SBA Website Training and Counseling Other Local Partners

6 SBA Financial Assistance Finding Money for Your Business - SBA SBA Loan Programs Export Assistance SBA Guaranteed Surety Bonds Small Business Investment Program Disaster Loan Programs

7 SBA Loan Programs 7 (a) Guaranteed Loan Program Ø Basic 7(a) Ø Small Loan Advantage Ø SBA Express Ø SBA Veterans Advantage Ø CAPline Ø Community Advantage Ø Interna;onal Trade Ø Export Working Capital Ø Export Express Microloan Program 504 Loan Program

8 Maximum Loan Amounts 7(a) Basic Loan $ 5,000,000 CAPLines $ 5,000,000 SBA Express $ 350,000 Small Loan Advantage $ 350,000 Community Advantage $ 250,000 Veterans Loan Advantage $ 350,000 Export Working Capital $ 5,000,000 Interna;onal Trade $ 5,000,000 Export Express $ 500,000 Rural Lender Advantage $ 350, Facili;es Loans $ 5,000,000 - $5,500,000 Microloans $ 50,000

9 Loan Requirements Ø Credit Ø Investment Ø Collateral Ø Ability to Pay

10 Benefits of 7(a) Loans REDUCES LENDER S RISK of LOSS Broadens Bank s Lending Ac;vi;es: Start- Ups High Risk Businesses Longer Terms Collateral Shor`alls Allows banks to increase its lending limits to borrowers. Community Reinvestment Act (CRA) Increased Profitability to Banks Selling loans on the Secondary Market.

11 Other Types of Financial Assistance DISASTER LOANS For Home, Business, Economic Injury (EIDL), and for Deploying Reservists (MREID) SURETY BONDS Bid, performance, payment, and ancillary Small Business Investment Companies (SBIC) SBIR Small Business Innovation Research Program STTR Small Business Technology Transfer Program

12 Types of SBA Disaster Loans Home Disaster Loans Homeowners Repair, replace, refinance real property - $200,000 Homeowners Mitigate/prevent future loss 20% of approved loan Renters and homeowners - personal property $40,000 Business Physical Disaster Loans Businesses of all sizes - to repair or replace real estate, equipment, furniture, etc. loans up to $2,000,000 Small or large businesses Mitigate/prevent future losses 20% of approved loan Economic Injury Disaster Loans (EIDL) Small businesses and agricultural coops only (NAICS size standards) Economic injury caused by a disaster Maximum loan amount - $1,500,000 h.p://

13 4 MAJOR CONTRACT SURETY BONDS FREQUENTLY REQUIRED SBA guarantees Surety Bond Companies against a percentage of losses sustained as a result of default on: 1) Bid Bond 2) Performance Bond 3) Payment Bonds 4) Ancillary Bonds SBA will guarantee bonds up to $6.5 million written by any surety company that has been approved to participate, and is listed in the US Treasury s Circular 570

14 SBIC Program The SBA- licensed for profit Small Business Investment Companies (SBICs) and families of SBIC investment funds be.er leverage the capital they use to invest in small businesses Fund businesses through investments or loans SBIC s provide managerial, opera;onal, and technical assistance Invest in a wide range of industries h.p:

15 SBIR Program 1. S;mulate technological innova;on 2. Use small business to meet R&D needs 3. Encourage minority & disadvantaged par;cipa;on in technological innova;on 4. Increase private sector commercializa;on derived from federal R&D Program funds R&D efforts of a high risk nature with excellent commercial poten;al For innovators capable of conduc;ng high quality R&D Agencies with R&D budgets > $100 million must establish an SBIR program Phase I up to $100,000 funding Phase II up to $750,000 funding Phase III the small business commercializes product

16 STTR Program 1. To foster innova;on necessary to meet the na;on s scien;fic and technological challenges 2. Expands funding opportuni;es in the federal R&D arena 3. Expansion of private sector partnerships to include joint ventures with small businesses and premier non- profit research ins;tu;ons 4. Encourage minority & disadvantaged par;cipa;on in technological innova;on 5. Increase private sector commercializa;on derived from federal R&D Program funds R&D efforts of a high risk nature with excellent commercial poten;al For innovators capable of conduc;ng high quality R&D Agencies with R&D budgets > $100 million must establish an SBIR program Phase I up to $100,000 funding Phase II up to $750,000 funding Phase III the small business commercializes product

17 Federal Contract Certifications Formal SBA Certification Programs 8(a) Business Development HUBZone Empowerment Contracting Self-Certifications Woman-owned Small Business (WOSB) Veteran-owned Small Business (VOSB)-Self certified except for VA Contracts* Service Disabled Veteran-owned Small Business (SDVOSB)-Self certified except for VA contracts* Small Business Determined by NAICS Codes Small Disadvantaged Business (SDB) *

18 Prime Contracting Government-wide Procurement Goals Small Business (SB) - 23% Small Disadvantaged Business (SDB) - 5% Women-Owned Small Business - (WOSB)- 5% HUBZone Small Business 3% Service-Disabled Veteran-Owned SB (SDVOSB) - 3%

19 Formal Certification Programs 8(a) and HUBZone programs require preapproval by SBA Both programs provide eligibility for Sole Source Contracts: 8(a) up to $6.5M for (mfg.) and up to $4.0M for (non-mfg.) HUBZone $5.5 (mfg.) and $3.5 (non-mfg.) 8(a) - Socially and economically disadvantaged firms enrolled in a 9-year business development program. Eligible to receive competitive and sole source contract awards. HUBZone - Small businesses, owned and controlled by US Citizens, community Development Corps, Indian tribes with its principal office located in areas identified as historically underutilized business zones, and with 35% of employees coming from a HUBZone, eligible to receive competitive and sole source awards.

20 8(a) Business Development Program 8(a) Program Objectives Promote business development among small business concerns owned and controlled by socially and economically disadvantaged individuals. To see if you qualify go to

21 8(a) Program Eligibility A small business US Citizen 51% owned and controlled by socially & economically disadvantaged individuals who are of good character Net worth below $250K (excludes the individual's equity in the firm and in the primary residence) In business at least 2 years (to demonstrate potential for success)

22 Socially Disadvantaged U.S. Citizens presumed to be socially disadvantaged who have been subjected to prejudicial practices because of their identity as members of designated groups: Black American Asian American/Pacific Islander Hispanic American (includes Spanish & Portuguese descent). Native American Subcontinent Asian American

23 Economically Disadvantaged Those individuals socially disadvantaged and whose prejudicial experiences have resulted in impairment of access to capital, credit and markets. Net Worth below $250K- (Average over 3 years) Less equity in primary residence Less equity in business= adjusted net worth

24 Members of Non-Designated Groups MUST ESTABLISH SOCIAL DISADVANTAGE ON THE BASIS OF THE PREPONDERANCE OF THE EVIDENCE SUCH AS: Rejection letters of Job applications Denials of credit applications Rejection of contract offers, i.e. Bids Abstracts or Solicitations Personnel Records Payroll Records

25 Application Process for the 8(a) Program 8(a) firms are encouraged to use the electronic application on the SBA website and submit via internet. Go to to get step by step instructions on how to apply 8(a) Application User Guide Obtain a GLS log-in and password to access the electronic application FAQ s, Hotlines and Support

26 HUBZone Empowerment Contracting Program The HUBZone Empowerment Contracting program was enacted into law as part of the Small Business Reauthorization Act of The program encourages economic development in historically underutilized business zones - "HUBZone" - through the establishment of preferences. Designed to promote economic development and employment growth in distressed areas by providing access to more Federal contracting opportunities.

27 HUBZone Empowerment Contracting Program A "HUBZone" is an area that is located in one or more of the following: A qualified census tract A qualified "non-metropolitan county. Lands within the boundaries of federally recognized Indian reservations.

28 HUBZone Program How the Program Works The (SBA) regulates and implements the program and determines which businesses are eligible to receive HUBZone contracts and; Maintains a listing of qualified HUBZone small businesses that Federal agencies can use to locate vendors Adjudicates protests of eligibility to receive HUBZone contracts. Reports to the Congress on the program's impact on employment and investment in HUBZone areas.

29 HUBZone Eligibility Requirements A small business must meet all of the following criteria to qualify for the HUBZone program: It must be located in a "historically underutilized business zone" or HUBZone. It must be owned and controlled by one or more US Citizens, and at least 35% of its employees must reside in a HUBZone. Go to to determine if your business and employees reside in a federal HUBZone.

30 HUBZone Awards A competitive HUBZone contract Can be awarded if the contracting officer has a reasonable expectation that at least two qualified HUBZone small businesses will submit offers The contract can be awarded at a fair market price.

31 HUBZone Awards Cont d A sole source HUBZone contract Can be awarded if the contracting officer does not have a reasonable expectation that two or more qualified HUBZone small businesses will submit offers The government estimate cannot exceed $5.5 million for manufacturing requirements or $3.5 million for all other requirements. Determines that the contract can be awarded at a fair price.

32 Application Process for Federal HUBZone Federal HUBZone firms are encouraged to use the electronic application on the HUBZone website and submit via internet. Go to to access the electronic application Features include electronic verification of submission of application View online sample application View online application guide

33 Women Owned Small Business Federal Contract Certification Program Provides Equal Access to Federal Contracting Opportunities For Women Owned Small Business (WOSB) Foe Economically Disadvantaged Women Owned Small Businesses (EDWOSB) Allows Contracting Officers to Set Aside specific contracts for WOSB s and EDWOSB s Effective February 4, Size_Standards_Table.pdf

34 Women-Owned Small Business (WOSB) Federal Contracting Program On December 21, 2000, Congress enacted the Small Business Reauthorization Act of Public Law Section 811 of that Act added a new section 8(m), 15 U.S.C. 637(m) which; Authorizes Federal contracting officers to restrict competition to eligible Women-Owned Small Businesses (WOSBs) or Economically Disadvantaged Women- Owned Small Business (EDWOSBs) for Federal contracts in certain industries. Program Effective Date: February 2011

35 WOSB/EDWOSB and SBA The Small Business Administration (SBA) is charged with implementing and administering the program. SBA publishes regulations that provide the framework for the program Conducts eligibility examinations of WOSB and EDWOSBs Decides protests and conducts studies to determine eligible industries

36 WOSB Contracting Program Eligibility Requirements To qualify as a WOSB, a concern must be: a small business not less than 51 percent unconditionally and directly owned and controlled by one or more women who are United States citizens. To qualify as an EDWOSB An eligible business must be not less than 51 percent owned by one or more women who are economically disadvantaged (i.e. an EDWOSB). Economically Disadvantaged WOSB means: Net Worth below $750,000 Income not exceeding $350,000 Assets not exceeding $6.0 Million

37 WOSB Contracting Program Set Asides In order to restrict or set-aside contracts for WOSBs or EDWOSBs; The contract award price must not exceed $5 million in the case of manufacturing contracts $3 million in the case of all other contracts The contract can be awarded at a fair and reasonable price

38 WOSB Certification Process A WOSB or EDWOSB must: (1) be certified by a Federal agency, a State government, or a national certifying entity approved by the Administrator, as a small business concern owned and controlled by one or more women (referred to as a Third Party Certifier); or, (2) certify to the contracting officer that it is a small business concern owned and controlled by women and provide adequate documentation, in accordance with standards established by SBA, to support such certification.

39 Women-Owned Small Business (WOSB) Federal Contracting Program On December 21, 2000, Congress enacted the Small Business Reauthorization Act of Public Law Section 811 of that Act added a new section 8(m), 15 U.S.C. 637(m) which; Authorizes Federal contracting officers to restrict competition to eligible Women-Owned Small Businesses (WOSBs) or Economically Disadvantaged Women-Owned Small Business (EDWOSBs) for Federal contracts in certain industries. Program Effective Date: February 2011

40 WOSB Contracting Program Set Asides EDWOSB In Underrepresented NAICS Codes (216 NAICS* Codes) WOSB In Substantially Underrepresented NAICS* Codes (157 NAICS Codes) Codes are available at *North American Industry Classification System Codes (NAICS)

41 WOSB Self Certification Process WOSBs and EDWOSBs must self-certify their status in the System for Award Management (SAM) formally Central Contractor Registration (CCR) at as other small businesses do. WOSBs and EDWOSBs must also submit documents to the WOSB Program Repository located at via the SBA General Log in system

42 Service Disabled Veteran Small Business Concern Program On December 16, 2003, the Veterans Benefits Act of 2003 (Public Law ) was passed by Congress. Section 308 of the Act (Public Law ) established a procurement program for Service-Disabled Veteran- Owned Small Business Concerns (SDVOSBC). This procurement program provides that federal contracting officers may restrict competition to SDVOSBCs and award a sole source or set-aside contract where certain criteria are met.

43 Service Disabled Veteran Small Business Concern Program Eligibility In order to be eligible for the SDVOSBC, you and your business must meet the following criteria: The Service Disabled Veteran (SDV) must have a serviceconnected disability that has been determined by the Department of Veterans Affairs or Department of Defense The SDVOSBC must be small under the North American Industry Classification System (NAICS) code assigned to the procurement

44 Service Disabled Veteran Small Business Concern Program Eligibility Cont The SDV must unconditionally own 51% of the SDVOSBC The SDVO must control the management and daily operations of the SDVOSBC* The SDV must hold the highest officer position in the SDVOSBC* *or, in the case of a service-disabled veteran with permanent and severe disability, the spouse of permanent caregiver of such veteran

45 VA SDVOSB/VOSB Set-aside and Sole Source Contracts Public Law (P.L.) "Veterans Benefits, Health Care, and Information Technology Act of 2006" provides the Department of Veterans Affairs (VA) with unique authority for contracting with service-disabled Veteran-owned (SDVOSB) and Veteranowned small businesses (VOSB). Places VA s highest priority with SDVOB followed by VOSB. These are followed by 8(a), HUBZone, Woman-owned small business, then all other small businesses. VA refers to this program as the Veterans First Contracting Program.

46 VA SDVOSB Certification In order to qualify for participation in the VA Veterans First Contracting Program; Eligible business owners must first be verified in the VA s Vendor Information Page-(VIP). The application form (VA Form 0877) and supporting documents is submitted to CVE. VA has 90 days, when practicable, after receipt of both an application and supporting business records. Eligible to subcontract with VA s large prime contractors. Eligible to participate in VA s Veteran-owned small business Mentor- Protégé Program

47 SDVOSBC Sole Source Awards If the requirement is not exempted from SDVOSBC contracting and cannot be set-aside. The CO does not have a reasonable expectation that at least two responsible SDVO SBCs will submit offers. The anticipated award price of the contract, including options, will not exceed: $5.0M for manufacturing requirements $3.0M for all other requirements Award can be made at a fair market price.

48 System for Award Management (SAM) The FIRST STEP to register your business to participate in any federal government contracting program is to: REGISTER in SAM As part of the registration process, you will be required to enter information about your company In SAM, you may self-certify yourself as a small business SAM provides links to federal agencies and procurement opportunities More information is available at:

49 Register to do Business with the Federal Government Must have a Dun and Bradstreet number to register in the System for Award Management (SAM) at Must register in SAM (replaces Central Contractor Registration (CCR) (Effective 29 July 2012) It is recommended that you take the online training on SBA Certification Programs prior to applying available at:

50 Before you Register in SAM Obtain the SAM registration instructions and forms at Get your federal tax identification number EIN/TIN at Identify your North American Classification Codes (6 digit) (at least one is required) Get a Duns Number at Or call

51 SBA Online Assistance Main SBA Website - South Florida District Website Government Contracting: Site includes links to all major government contracting programs - Veteran Website Online Women s Business Centers

52 Other Helpful Web Sites DOD Small & Disadvantaged Business Utilization Office Small Business Development Centers Procurement Technical Assistance Centers (PTAC) Find a Procurement Center Representative

53 Other SBA Ini;a;ves Affordable Care Act Encore Entrepreneurs National Export Initiative Veterans Business Assistance

54 Affordable Care Act Small Business Resources

55 SBA Programs for Veterans Entrepreneurship Boot camp for Veterans with Disabilities Entrepreneurship Boot Camp for Families of Veterans with Disabilities Operation Endure and Grow For National Guard and Reservists VWISE For Women Veterans Boots to Business For Transitioning Veterans in TAP DOD Installations

56 U.S. Small Business Administration SBA Programs and Services Robert Chavarria Senior Area Manager South Florida District (813) ext 24 Serving Charlo.e, DeSoto, Hardee, Hillsborough, Manatee, Pasco, Pinellas, Polk, and Sarasota Coun;es