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U.S. Small Business AdministrationNew York District Office

Products and Services

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SBA General Information

Banner Guide

Business Counseling & Training

Federal Government Contracting

Business Development Certification Programs & Bonding

Financing Programs

Advocacy and Ombudsman

Government Contracting

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SBA GENERAL INFORMATION

25 million businesses 99.8% - small businesses 75% - no employees Most are sole-proprietorships 53% - home-based More than 550,000 new businesses per year Only 1 out of 2 will still be in existence after 4

years

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SBA GENERAL INFORMATION

#1. Insufficient financing #2. Insufficient management skills/lack

of planning The U.S. Small Business Administration

(SBA) can help you start, grow and succeed.

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SBA SUCCESS STORIES

America Online (AOL)StaplesFederal ExpressNikeBen & Jerry’sIntelApple ComputerOutback SteakhouseAnd Hundreds of Thousands of ‘mom & pops’

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SBA GENERAL INFORMATION

SBA can help small for-profit businesses: Financial Assistance Programs Business Counseling, Mentoring and Training Business Plan Development Loan Packaging Services Workshops and Entrepreneurial Training Federal Government Contracting Assistance Surety Bonds Online Training-Small Business Training Network

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SBA GENERAL INFORMATIONThe SBA does not provide:

Grants or legal advice Financing for real-estate speculation,

investments, pyramid schemes Financing for non-profit organizations

(except in certain declared disaster situations) Contact SBA marketing department

(212) 264-4354 to see if your needs qualify for SBA assistance

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7(a) Financing Programs

SBA is not a direct lender: Loans are made by commercial lenders SBA guarantees up to 85% of the loan Maximum loan is $2,000,000 Loans can be term or lines-of-credit Loans are long-term with competitive

low interest rates

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7(a)Financing Programs

Customer Benefits

Lenders more likely to make a loan that they may not have made without the SBA guaranty.

Lenders may take a ”second look” when credit scores alone are not sufficient

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7(a) Financing Programs

Use of Loans: Working capital

(on-going operating expenses) Purchase equipment, machinery, commercial

real estate, commercial vehicles, furniture, fixtures

Inventory, cost of goods sold Renovations, construction Export goods, international trade

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7(a)Financing Programs

SBA Express Loan

Up to $350,000 SBA turn-around time of 36 hours SBA Express lenders use their own

applications and are authorized to underwrite and approve

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7(a) Financing Programs

SBA Community Express

Starts at $5,000, up to $50,000 Competitive Interest Rates Borrower must receive technical

assistance from authorized provider SBA continually recruiting technical

assistance providers to join program

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504 Financing Programs

SBA 504 CDC Loan Program Provides affordable financing for

acquiring land, commercial buildings, machinery and equipment with a life expectancy greater than 10 years

Or for building, modernizing, renovating or restoring facilities

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Financing Programs

SBA 504 CDC Loan Requirements: Owner puts in at least 10% of own

equity Owner’s business must occupy at least

51% of total building structure Below-market, fixed-rate financing (Loan cannot be used for speculation)

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Financing Programs

SBA 504 CDC Loan Program A private lender(50%), A certified development company(40%) SBA (guarantee)

SBA financing portion up to$1.5 million for regular loans $2.0 million for public policy loans $4.0 million for manufacturing (total loan however can be higher)

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Certified Development Companies

Certified Development Companies (CDCs) are community-based development companies approved and licensed by SBA to administer the 504 loan program.

Authorized by SBA to: Marketing the program Package and process loans Close loans Service loans

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NY District Certified Development Corporations

Business Initiative Corporation of NY (718) 590-3980 Empire State Certified Development

Corp. (212) 803-3100/(800)782-8369 GNYDC/Long Island Development Corp. (866) 433-5432/(516)433-5000

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Financing Programs

Qualifying for SBA Financing Programs: Good character & Management expertise Good personal and business credit Feasible business plan Owner/s must personally guarantee all loans Owner/s must secure loans over $25,000

with existing assets

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Financing Programs

SBA Microloan ProgramSBA makes funds available to nonprofit

intermediaries that, in turn, make the loan directly to entrepreneurs.

From under $500 to $35,000 Interest Rates are negotiated between the

borrower and the intermediary. Microlenders provide technical assistance

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Microloan Lenders

BOC Capital Corp. (718)624-9115 Community Development Corp. of LI 631-471-1215 East Harlem Business Capital Corp. 212-427-6590 NY Assoc. for New Americans (NYANA) 212-898-4112 Renaissance Economic Development Corp. 212-964-6022 Washington Heights and Inwood Development Corp.

212-795-1600 Westchester Housing Fund, dba Community Capital

Resources 914-747-8020

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Export Financing Programs

SBA Export Express Program The Export working Capital Loan Program The International Trade Loan

See www.sba.gov for other programs

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SBA Export Express Program Maximum amount of $250,000

The guaranty up to $150,000 is 85%, over $150,000 is 75%

Financing export-development activities Transaction-specific financing for overseas

orders Revolving lines of credit for export purposes Acquiring, constructing, renovating, improving

or expanding facilities or equipment used in US to produce goods or services for export

Financing standby letters of credit used as bid or performance bonds on foreign contracts

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The Export Working Capital Loan Program

SBA guarantee up to 90% up to $1.5 million

Purchase finished goods or acquire inventory Finance pre-export costs of labor and

materials Finance costs of U.S. labor and overhead for

service-company exports Finance standby letter of credit used for bid or

performance bonds Finance foreign accounts receivable

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The International Trade Loan

Fixed Assets limited to $1 million Working Capital limited to $1.25 million Combined up to $1.75 million

Terms and interest rates are negotiated between the applicant and the lender.

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Financing Programs

Qualifying and Applying for SBA Financing Programs:

Visit your bank of record Visit an active SBA lender Or visit a SBA Resource Partner

(SBDCs, SCORE, WBCs)

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TOP 10 SBA LENDERS Oct. 1, 2007 to, June 30, 2008

1) JPMorgan Chase- 1,222 for $60,916,8002) Bank of America- 327 for $11,371,900 3) Innovative Bank- 221 for $ 5,730,000 4) Banco Popular North America5) Citibank6) Washington Mutual Bank7) BNB Bank, National Association8) Capital One Bank9) Manufacturers & Traders Trust 10) Flushing Saving Bank, FSB

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SBA NY District Office County Report Fiscal Year 2007

County Number Amount Bronx 376 $ 37,755,700 Kings 1,051 $ 81,849,900 Nassau 613 $ 72,920,900 Manhattan 1,184 $118,729,200 Queens 1,268 $106,758,200 Suffolk 588 $ 90,581,050

Total 5,985 $619,689,080

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SBA NY District Office County Report 10/01/07 – 06/30/08

County Number Amount

Bronx 157 $ 17,645,600 -47% -35% Kings 584 $ 57,506,000 -24% 1% Nassau 354 $ 68,530,500 -24% 25% Manhattan 678 $ 91,312,548 -26% 0% Queens 646 $ 51,255,700 -31% -34% Suffolk 333 $ 65,556,400 -27% 4% Total 3,247 $436,209,315 -28% -4%

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SBA NY District Office Dynamic Market

Report 10/01/07 – 06/30/08

Afr Amer 296 $ 31,185,830Asian 990 $112,318,167Hispanic 304 $ 20,318,500Women 893 $105,684,430Veterans 134 $ 17,012,500

Total 3,247 $436,209,315

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Business Counseling & Training- SBA Resource Partners

NYS Small Business Development Centers (SBDCs)• Loan packaging • information about loans • Business plan development • financial projections • workshops

Website: www.nyssbdc.org

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Business Counseling & Training- SBA Resource Partners

SCORE (Counselors to America’s Small Business) Business advice and industry specific

expertise Business plan development Workshops

Website: www.score.org

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SCORE Counseling

Time: M-F 10 A.M.-2 P.M. Location: 26 Federal Plaza, Rm.3100 NY, NY 10278 Phone: 212-264-4507

Website: www.SCORE.org

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Business Counseling & Training SBA Resource Partners

Women's Business Centers (WBCs)

Business services oriented toward women Entrepreneurial training programs &

workshopsWebsite: www.onlinewbc.gov

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The world’s largest buyer.

In 2007- over $300 billion dollars

Government Contracting

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Government-wide contracting goals:

23% for small businesses in general5% for Small Disadvantaged Businesses

5% for Women Owned businesses3% for HubZone businesses3% for Service Disabled Veterans

Both federal contractors and prime contractors are looking for the above small business categories

Government Contracting

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To determine if the federal government buys your product or service go to:

www.fbo.gov and www.fedbizopps.gov

Register your business at www.ccr.gov

Government Contracting

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Business Development Certification Programs

8(a) Business Development Certification Program

Socially and economically disadvantaged firms

At least two years

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Business Development Certification Programs

8(a) Business Development Certification Program

Visit www.sba.gov/8abd for further information and applications

Call (212) 264-4354 to attend one of the monthly informational workshops/seminars.

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(SDB) Small Disadvantaged Business Certification Program

A certification program for socially and economically disadvantaged businesses

Visit www.sba.gov/sdb for info/applicationsor call (212) 264-4354 to attend one of the monthly informational workshops/seminars

Business Development Certification Programs

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HUBZone (Historically Underutilized Business Zones)

Federal contracting opportunities for qualified small businesses located in distressed census tract areas

Visit www.sba.gov/HUBZone for information

Business Development Certification Programs

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The SBA can guarantee bonds for contracts starting at $100,000 up to $2,000,000.

The program covers bid, performance and payments bonds for small and emerging contractors who cannot obtain surety bonds through regular commercial channels.

SBA Surety Bonds

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Disaster Assistance

Disaster Assistance helps people recover from disasters (as declared by State Governor or U.S. President) via affordable loans to homeowners, renters and businesses (i.e. WTC-9/11, Hurricane Katrina, etc.)

$10 billion in loans to Gulf Coast clients in the past year alone

Visit www.sba.gov/disaster for more information or call (800) 659-2955

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Advocacy and Ombudsman Office of Advocacy ensures that federal rules

and regulations do not unfairly affect small businesses (www.sba.gov/advo)

Office of Ombudsman assists small businesses subjected to unfair audits, fines or enforcement actions by any federal agency (send an email to Ombudsman@sba.gov)

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IN CONCLUSION

Improve your likelihood of business success Call the SBA at (212) 264-4354 for help with

any of the discussed programs and services Visit SBA NY District Office web-site

www.sba.gov/ny/ny Spanish language web-site

www.negocios.gov

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FREE “Online Classroom”Business Education and Training www.sba.gov/services/training/onlinecourses/index.html STARTING A BUSINESS BUSINESS PLANNING BUSINESS MANAGEMENT FINANCING & ACCOUNTING MARKETING & ADVERTISING GOVERNMENT CONTRACTING RISK MANAGEMENT & CYBER SECURITY E-COMMERCE INTERNATIONAL TRADE FEDERAL TAX TRAINING SMALL BUSINESS RETIREMENT

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Visit Our Resource Guide www.SBAguides.com

Thank You!