SBA Overview. October 2014

Transcription

1 SBA Overview October 214

2 Contents Strategic Goals SBA by the Numbers Budget Overview SBA Programs: 3 C s a D and an A 2

3 SBA s Strategic Goals 1 Growing businesses and creating jobs 2 Building an SBA that meets the needs of today s and tomorrow s small businesses 3 Serving as the voice of small businesses 3

4 Contents Strategic Goals SBA by the Numbers Budget Overview SBA Programs: 3 C s, a D, and an A 4

5 Full Time Employees (FTEs) SBA Employees by Department SBA has 2,139 employees more than half are in Field Operations or Capital Access x OFO OCA GCBD OCOO OGC OCFO OII OED OIT OCPL OA Other small offices Note: Employee counts are as of January

6 Contents Strategic Goals SBA by the Numbers Budget Overview SBA Programs: 3 C s a D and an A 6

7 SBA budget ($M) SBA Budget Overview SBA s budget authority for the past ten fiscal years 1,2 1, FY5 actual FY6 actual FY7 actual FY8 actual FY9 actual FY1 actual FY11 actual FY12 actual FY13 (w/ sequester) FY14 enacted 7

8 Contents Strategic Goals SBA by the Numbers Budget Overview SBA Programs: 3 C s a D and an A 8

9 SBA s Programs: Three C s Capital 7(a) Loans 54 Loans Alternative & Micro Lending Small Business Investment Companies (SBIC) Small Business Innovation Research/Small Business Technology Transfer (SBIR/STTR) Contracting Small Business Contracting Socio-economic programs Performance Bonds Size Standards Counseling SBA Field Network Small Business Development Centers Women s Business Centers SCORE Veteran s Business Outreach Centers 9

10 SBA s Programs: D, and an A Disaster Business Physical Disaster Loans Economic Injury Disaster Loans Home Physical Disaster Loans Advocacy Office of Advocacy Regional Advocate - Yvonne Lee (SF D.O.) Office of the National Ombudsman 1

11 Jobs supported (K) SBA lending ($, billion) Capital: All SBA Loans Total loans supported since Fiscal Year FY6 FY7 FY8 FY9 FY1 FY11 FY12 FY13 Thousands of jobs supported by SBA lending since Fiscal Year 26 (self-reported) FY6 FY7 FY8 FY9 FY1 FY11 FY12 FY13 12

12 Capital: 7(a) Loans Who: all small businesses 7(a) loan data (last five fiscal years) What: SBA s primary financing program, 7(a) loans can be used for most business expenses, including o working capital o the purchase of inventory, supplies, or raw materials o the purchase of business-occupied real-estate How: Loans are offered by private lending institutions. SBA guarantees up to 85% on loans up to $15K, and up to 75% on all other loans of loan value up to $5M International Trade: International Trade loans & Export Working Capital loans , 55, 5, 45, 4, 35, 3, 7(a) lending loans approved ($, billions) FY1 FY11 FY12 FY13 FY14 YTD 7(a) lending # of loans approved 53,76 47, 44,377 46,399 47,517 FY1 FY11 FY12 FY13 FY14 YTD 13

13 Capital: 54 Loans Who: Small businesses that want to expand or improve their existing operations What: Provides long-term, fixed-rate capital to acquire real estate and major fixed assets How: SBA provides a Certified Development Company (CDC) with a guarantee of up to 4% of a project s financing, a commercial lender provides up to 5% of the financing, and the borrower contributes at least 1% as equity 54 loan data (last five fiscal years) 54 lending loans supported ($, billions) FY1 FY11 FY12 FY13 FY14 YTD Other Background: The 54 program requires that 1 job be created for every $65,. in the SBA debenture portion of the project. 1, 8, 6, 4, 2, 54 lending # of loans approved 9,471 7,833 7,983 7,78 5,428 FY1 FY11 FY12 FY13 FY14 YTD 15

14 Capital: Alternative Lending Micro lending and Alternative Lenders Who: Small businesses and certain not-for-profit childcare centers What: SBA provides small (up to $5K) short-term ( 6 years) loans for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment How: Program is delivered through specially designated intermediary lenders (nonprofit organizations with experience in lending and technical assistance). These intermediaries administer the Microloan program for eligible borrowers Alternative Lenders: Non-traditional lenders 16

15 Capital: Small Business Investment Companies (SBIC) Who: Private investment funds that wish to make equity and/or debt investments in small businesses What: Program is a private-public partnership to fill the gap between the availability of growth capital and the needs of small businesses How: SBA licenses qualified private equity fund managers and provides them with access to low-cost, government-guaranteed capital to make investments in small businesses Other Background: FY13 represented a fourth consecutive record-breaking year for SBIC debentures. More than 85 small businesses received approximately $3.3 billion in growth capital, a 1 percent increase in financing from FY12 SBIC data (last five fiscal years) SBIC financings ($, billions) FY9 FY1 FY11 FY12 FY13 SBIC debentures # of debentures FY9 FY1 FY11 FY12 FY13 17

16 Capital: SBIR / STTR SBIR Who: Small businesses engaged in federal research and development (R&D) projects What: Program that encourages small business to explore their technological potential and provides the incentive to profit from its commercialization How: Program reserves 2.8% of R&D funds at federal agencies with $1M R&D budgets for small businesses. SBA oversees the awarding of competitive contracts and grants to small firms for R&D projects based on the needs of 11 participating government agencies Other Background: SBIR spending is a function of the 11 SBIR agencies budgets, but has recently hovered around $2.5B STTR Who: Small businesses and nonprofit research institutions What: Program that expands funding opportunities in the federal innovation research and development arena and introduces entrepreneurial skills to high-tech research efforts How: SBA coordinates and oversees awards made to small businesses that pursue technological innovation through cooperative research and development with certain Federal laboratories and non-profit scientific and educational institutions 18

17 Contracting: Small Business Contracting Who: Small business contractors What: SBA manages the small business contracting programs for all federal agencies and is responsible for ensuring the government achieves the statutory goals: 23% Small Business 5% Small Disadvantaged Business (8a) 5% Women-Owned Small Businesses 3% HUBZone 3% Service-Disabled Veteran-Owned SBs Small Business Prime Contracting Achievement (%) 24% 23% Goal 22% % % FY5 FY6 FY7 FY8 FY9 FY1 FY11 FY12 Small Business Prime Contracting Achievement ($, Billions) How: Set-aside programs are in place for each of the small business categories above. SBA manages the certification and protest process for each program FY5 FY6 FY7 FY8 FY9 FY1 FY11 FY12 19

18 Contracting: Performance Bonds Surety Bonds Who: Small business contractors bidding on public and private construction projects What: SBA provides and manages surety bond guarantees for qualified small and emerging businesses, in direct partnership with surety companies How: SBA guarantees up to 9% on four types of surety bonds: bid bonds, performance bonds, payment bonds, ancillary bonds issued by participating surety companies for contracts up to $6.5M 2

19 Contracting: Size Standards Who: All small businesses What: SBA sets the small business size standard for each industry based on the North American Industry Classification Codes (NAICS); These standards are used for all SBA programs How: Size standards are determined based on economic analysis of each industry Standards are based on either (1) number of employees, (2) annual revenues or (3) a combination of the two Per the Small Business Jobs Act of 21, all size standards need to be updated every 5 years Most common standards for a small business: 5 employees for most manufacturing and mining industries $7 million in average annual receipts for most non-manufacturing industries Largest size standards: 15 employees for select manufacturing industries $35.5 million in average annual receipts for select construction, retail and services industries 22

20 Counseling: SBA Field Network Ten regions, 68 district offices, and hundreds of resource partners 24

21 Counseling: Small Business Development Centers Who: All small businesses and entrepreneurs What: These resource partners provide a vast array of technical assistance that helps strengthen business performance and adds to the creation of new businesses. How: SBA awards matching grants to SBDC leads in each state; one or more sponsors (state/local government or private) must provide matching fund contributions. SBDCs offer no cost, extensive, one-on-one, longterm professional business advising, low-cost training and other specialized services Number: For years statute has required that SBA fund 63 cooperative agreements with resource partners that serve as lead SBDCs SBDC data (last five fiscal years, plus FY14 budget) SBDC grants in budget - $M FY9 FY1 FY11 FY12 FY13 FY14 Thousands x of SBDC clients counseled (red) and trained (blue) FY9 FY1 FY11 FY12 FY13 25

22 Counseling: Women Business Centers Who: Socially and economically disadvantaged women business owners What: These educational centers are designed to assist women looking to start and grow small businesses How: SBA awards matching grants to WBCs; one or more sponsors (private or state/local government) must provide matching fund contributions. Entrepreneurs are offered counseling and training in finance, marketing, management, and the Internet, as well as access to all of the SBA s assistance programs Number of WBCs FY9 FY1 FY11 FY12 FY13 FY14 WBC data (last five fiscal years, plus FY14 budget) WBC grants in budget - $M FY9 FY1 FY11 FY12 FY13 FY14 Thousands x of WBC clients counseled (red) and trained (blue) FY9 FY1 FY11 FY12 FY13 26

23 Counseling: SCORE Who: Small businesses and aspiring entrepreneurs What: SCORE members are trained to serve as counselors advisors and mentors to aspiring entrepreneurs and business owners How: SBA awards a single grant to SCORE. Working and retired executives and business owners donate their time providing entrepreneurs with free, confidential face-toface and online business counseling services offered at no fee, as a community service Number of SCORE-funded chapters FY9 FY1 FY11 FY12 FY13 SCORE data (last five fiscal years, plus FY14 budget) SCORE grant size in budget - $M FY9 FY1 FY11 FY12 FY13 FY14 Thousands x of SCORE clients counseled (red) and trained (blue) FY9 FY1 FY11 FY12 FY13 27

24 Counseling: Veteran s Business Outreach Centers Background VBOCs Who: veteran business owners or veterans considering starting a business What/How: program is designed to provide entrepreneurial development services such as business training, counseling, mentoring and referrals. VBOC workshops are focused on tools for self-employment for developing and expanding new businesses. Services Provided by the Centers: Pre-Business Plan Workshops VBOCs conduct entrepreneurial development workshops dealing specifically with the major issues of self-employment, which include using the Internet to develop and expand businesses. Each client has the opportunity to work directly with a business counselor. Business Plan Preparations VBOCs assist clients in developing and maintaining a business plan. The business plan includes such elements as the legal and organizational structure of the business; equipment requirements and costs; strategic and financial plans; and market research. Comprehensive Feasibility Analysis VBOCs help identify and analyze strengths and weaknesses of the business plan to increase the probability of success. Analysis results are used to revise the strategic planning portion of the business plan. Entrepreneurial Training and Counseling VBOCs, working with other SBA resource partners, conduct entrepreneurial training and counseling sessions specifically for service-disabled veteran entrepreneurs. Mentorship When needed, VBOCs conduct on-site visits with clients to ensure they are following their business plans. Additionally, VBOCs review monthly financial statements to determine if the business plan needs to be changed to achieve targeted goals. 28

25 Disaster: Business Disaster Loans Business Physical Disaster Loans Business disaster loan data (last five fiscal years) Who: Businesses or most private nonprofit organizations located in a declared disaster area with losses not fully covered by insurance What/How: SBA makes physical disaster loans of up to $2M for the repair or replacement of the following: equipment, fixtures, inventory, machinery, and leasehold improvements Business Economic Injury Disaster Loans Business disaster loan lending - $M FY9 FY1 FY11 FY12 FY13 Who: small businesses and private nonprofits located in a declared disaster area 6, Business disaster loans approved 5,119 What/How: SBA makes economic injury loans of up to $2M to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. This capital helps organizations survive until normal operations resume after a disaster. 4, 2, 3,372 2,7 1,717 1,97 FY9 FY1 FY11 FY12 FY13 29

26 Disaster: Home Physical Disaster Loans Who: homeowners, renters and/or personal property owners located in a declared disaster area What: Primary source funding for permanent rebuilding and replacement of uninsured or underinsured disaster damages How: SBA can provide up to $4K to homeowners and renters to help repair or replace personal property, such as clothing, furniture, automobiles, etc., lost in a disaster. SBA can also provide homeowners a loan of up to $2K to repair or replace their primary residence to its pre-disaster condition Other Background: Fiscal Year 213 s spike in home disaster loans was a result of Hurricane Sandy Home disaster loan data (last five fiscal years) Home disaster loan lending - $M 3, 2,426 2, 1, FY9 FY1 FY11 FY12 FY13 Home disaster loans approved 5, 41,698 4, 3, 2, 18,48 13,286 11,926 13,417 1, FY9 FY1 FY11 FY12 FY13 3

27 Advocacy: Watching Out for Small Business Interests Office of Advocacy Who: The small business Watchdog of the government. What: Examines the role and status of small business in the economy and independently represents the views of small business to federal agencies and Congress. The office also compiles and interprets statistics on small business and funds outside research of small business issues. Other Background: The office monitors federal agency compliance with the Regulatory Flexibility Act the law that requires agencies to analyze the impact of their proposed regulations on small entities; including small governmental jurisdictions and small nonprofits. Office of the National Ombudsman Who: Voice in Washington DC for small business. What: If excessive fines, penalties or unfair regulatory enforcement by federal agencies are problems for a small business, the Ombudsman can take your comment to that federal agency on your behalf for review. In some cases, fines may be lowered or eliminated and decisions changed in favor of the small business owner. Other Background: There are 1 Regulatory Fairness Boards across the country that meet regularly to receive comments. Regional Advocate for Sacramento: Yvonne Lee in San Francisco 32

28 Sacramento District Office Contact Information Sylvan Road Citrus Heights, CA October 214

29 Questions? October 214