Who we are The Small Business Administration is the federal agency responsible for ensuring small businesses have the tools they need to start, grow and succeed.
What we do SBA provides guarantees on loans to small businesses that lenders would otherwise be unwilling to make because of the risk. SBA is responsible for ensuring that 23% of federal contracting dollars go to small businesses SBA s entrepreneurial development programs provide counseling and training to entrepreneurs and small business owners looking to start and grow their business. SBA offers low interest loans the only direct loans offered by the SBA to individuals and businesses who are victims of natural disasters.
Why it matters 29.6 million small businesses in the U.S. = 99.7 percent of all businesses. Small businesses employ 50 percent of all private sector employees Generated 65 percent of net new jobs over the past 17 years. Create more than half of the nation s nonfarm private GDP. Hire 43 percent of high tech workers (scientists, engineers, computer programmers, and others). Made up 97.5 percent of all identified exporters and produced 31 percent of export value in FY 2008. Produce 13 times more patents per employee than large patenting firms.
SBA s 3 C s Cs Capital Contracting Counseling
Capital: Loans Key Objectives Provide financial assistance programs for small businesses, including: 7(a) loans 504 loans Microloans Disaster loans Key Successes High taxpayer ROI: turned $680 million in taxpayer funds into $30 billion in small business lending through Recovery Act Increased active SBA lenders by 21% since 2007
Capital Flexible terms Longer repayment Lower payment Increased cash flow Minimal costs Benefits No points or origination fees Interest rate caps Ability to finance closing costs versus paying out of pocket
Capital: Investment Key Objectives Fosters small business growth through investment by stimulating and supplementing flow of private equity capital and long term loan funds SBIR/STTR grants SBIC investments Key Successes Small Business Investment Company (SBIC) program supports twice the investments in half the time. SBIC Program provided 50 year record high of $1.59 billion in financing for small businesses. Reinvented the Small Business Innovation program (SBIR).
Contracting Key Objectives Work to ensure federal government contracting dollars are awarded to small businesses, including those owned by: Women Service disabled d veterans Underserved markets Key Successes In FY2009, $96 billion, or 21.9% of contracting dollars, went to small businesses Nearly y$ $11 billion, or 31.6%, of Recovery Act contracts went to small businesses
Contracting Women New rule allows set asides in over 80 industry sectors where women are underrepresented Service Disabled Veterans C t ti ffi f t i Contracting officers of government agencies are authorized to limit procurement competitions or sole source contracts to small businesses owned by Service Disabled Veterans
Contracting 8(a) Economic disadvantage less than $250,000 not including equity in firm and personal residence Social ldisadvantage d presumed ddisadvantage d or preponderance of evidence through narrative HUBZone Business must be located in a HUBZone and 35% or us ess us be oca ed a U o e a d 35% o more of the employees must live in a HUBZone
Counseling Key Objectives Oversee programs and services that t support the training and counseling needs of small business Key Successes Served over 1.5 million small businesses and entrepreneurs in FY2010 Expand existing programs, such as the e200 training program for emerging inner city and Native American entrepreneurs
Putting the 3 C s to Work Start Up: Counseling, Microloans, 7(a) Mature: Counseling, 7(a), 504, Export, Government Contracting High Growth: Counseling, 7(a), 504, SBIR/STTR, SBIC
American Recovery and Reinvestment Act SBA ARRA provisions had a huge impact High taxpayer ROI SBA turned $680 million into $30 billion in small business lending Increased active SBA lenders by 21% since 2007 Nearly $11 billion, or 31.6% of Recovery Act contracts went to small businesses
Small Business Jobs Act of 2010 Small Business Jobs Act of 2010 is the most significant piece of small business legislation in over a decade More capital, more tax relief, and more opportunities to help America s entrepreneurs and small business owners create jobs Builds on what worked in Recovery Act
Small Business Jobs Act of 2010 Queue cleared: 2,000 loans for $1 billion cleared in one week $505 million subsidy expected to support $14 billion in small business lending
Small Business Jobs Act of 2010 Stronger SBA Capital programs Permanent: Maximum loans increased from $2 million to $5 million, microloans from $35,000 to $50,000 Export Express
Small Business Jobs Act of 2010 Stronger SBA Capital programs Temporary: 90% guarantees and fee waivers (expires 12/30/10) Express loans from $350,000 to $1 million (exp. 9/27/11) Owner-occupied commercial real estate refinancing (exp. 9/27/12)
Small Business Jobs Act of 2010 More Firms Eligible for SBA Loans Increased standards: $15 million net worth, $5 million average net income Lending Pilots Dealer Floor Plan extension, expansion Small Business Intermediary Lending
Small Business Jobs Act of 2010 Stronger SBA Programs: Contracting Parity: equal treatment for HUBZone, 8(a), women, service-disabled veterans More opportunities for small contractors Greater ability to pursue fraudulent firms Better treatment of subcontractors Pilot: small business teaming
Small Business Jobs Act of 2010 Stronger SBA Programs: Counseling $50 million more for Small Business Development Centers Increased staff at Export Assistance Centers Pil t St t T d d Pilot: State Trade and Export Promotion Grants ($90 million)
Small Business Jobs Act of 2010 Tax relief to the tune of $12 billion Jobs Act doubles number of tax benefits Higher expensing limit, accelerated depreciation, zero capital gains for investments, doubled start-up deduction, health insurance deduction d for self-employed
Small Business Jobs Act of 2010 Beyond SBA Department of Treasury New $30 billion Small Business Lending Fund Low cost capital for community banks, with incentives to go beyond 2009 level State t Small Business Credit Initiative $1.5 billion to support state efforts
Disaster Assistance SBA is a first responder to declared disasters Currently processing loans ten times faster than after Hurricane Katrina 95% of loans have initial disbursement within 5 days of loan closing Loans made directly by SBA Homeowners, renters, businesses of all sizes, and private non profits are eligible
Taking Small Business Support to the Next Level Leverage Connect Streamline
SBA is here for YOU! SBA: 10 Regions, 68 District Offices, 14 Branch Offices and 26 Alternate Work Sites. SCORE: 350 offices, 13,000 volunteer mentors Small Business Development Centers: 1,000 service centers Women s Business Centers: 110 service centers sba.gov g To find your local resources