SBA Programs & Services

Transcription

1 Helping you start, grow and succeed. SBA Programs & Services 2012 Government Small Business Conference

2 South Florida District Office Overview Covers 24 counties from Monroe to Osceola District Office located in Downtown Miami, FL Alternate Work sites located in Tampa and Ft. Pierce, FL

3 Topics SBA Resource Partners Why lenders use SBA Loans? 5C s of Credit SBA Loans Other SBA Programs

4 Resource Partners SCORE (Counselors to America s Small Business)- in person or on-line at Small Business Development Centers (SBDCs) Women Business Centers and Microloan Intermediaries ($500 to $50,000) Lenders US Export Assistance Centers

5 Why do Lenders use SBA Lending Programs? SBA s Guaranty reduces the lender s risk of loss SBA s Guaranty can broadens a lender s lending activities: Start-Ups Longer Terms High Risk Businesses Collateral Shortfalls SBA s Guaranty can allow lenders to increase their lending limits to borrowers. SBA s Guaranty can increase profitability to Lenders Selling loans on the Secondary Market.

6 Finding the Right Lender To access SBA loans, you must apply with a participant lender: Your lender of account SBA s Active Lender List Remember each lender is different; each has different requirements, and you are responsible for making the best decision possible.

7 Questions when Applying for a SBA Loan How much money do I need to borrow for my business? What will I use the loan money for? How much money do I have to inject into this business? Remember it is a loan; not a grant!

8 5 C s of Credit Character Capacity Capital Collateral Conditions

9 What SBA Looks For Good Character Management Expertise and Commitment Feasible Business Plan Adequate Equity or Investment (25% to 30% injection for new business) Sufficient Collateral Ability to Repay the Loan from Earnings

10 Use of Proceeds SBA can Fund: Working Capital Inventory Equipment Real Estate Debt Refinancing SBA can t Fund: Speculation Partial Change of Ownership Payment to Principals Delinquent Payroll/Sales Taxes Existing Business

11 Ineligible Businesses Gambling Real Estate Investment Speculation Lending Activities & life insurance companies Businesses selling through a pyramid plan Illegal Businesses Non-Profit Organizations Businesses providing prurient sexual material Businesses which restrict patronage Businesses owned by individual(s) on probation, parole and with pending criminal charges

12 Size Standards Sales in Millions Retail $7.0 to $35.5 Service $7.0 to $35.5 Construction $7.0 to $33.5 Agriculture $.75 to $17.5 Number of Employees Wholesale < 100 Manufacturing 500 to 1500 Note: Size Standard is NAICS Code specific

13 Collateral Sufficient assets must be pledged to adequately secure the loan to the extent available. Personal guarantees of all 20% or more owners of the business Liens on personal assets are considered if undercollateralized by business assets Lack of collateral, in and of itself, is not a reason for decline.

14 Terms Flexible maturities: Up to 10 years for working capital Up to 25 years for fixed assets: Real estate, Construction, Equipment

15 SBA Loan Programs 7(a) Program (Guaranteed Loan Programs): SBA Express, Community Express, Export Express and Patriot Express CAPLines (Lines of Credit) Export Working Capital (EWCP) International Trade Lenders Advantage Certified Development Company 504 MicroLoan Program

16 Maximum Guarantee Percentage by Program Standard 7(a) Loan - $150,000 or less 85% Standard 7(a) Loan - over $150,000 75% SBA Express 50% Export Express 90% Patriot Express 90% EWCP 90% 504 Loan 100%

17 Maximum Loan Amounts Standard 7(a) Loan $ 5,000,000 SBA Express $ 350,000 SBA Export Express $ 500,000 Patriot Express $ 500,000 EWCP $ 5,000, $ 5,000,000 to 5,500,000

18 Standard 7(a) Loan Program Maximum Interest Rates Example with Prime rate as Base Less than 7 years Base % 5.5% 7 years or more Base % 6.0% $25,001 - $50,000 Plus 1% 7.0% $25,000 or less Plus 2% 8.0% (Higher rates on SBAExpress, Export Express) 7.75% % RATES may be FIXED or VARIABLE

19 SBA s Other Products & Services Counseling SCORE SBDC WBDC Procurement 8a HUB Zones SDB Certification SBIC s Larger Amounts Venture Capital Disaster Personal Business Economic Injury

20 For More Information... web site - South Florida District Office at (305)

21 Thank You! U. S. Small Business Administration South Florida District Office