AGENDA Background Information SBA Counseling Lending Government Contracting

1. AGENDA • Background Information • SBA • Counseling • Lending • Government Contracting

8. http://www.sba.gov/aboutsba/history.html

9. http://www. myownbusiness.org/course_sba.html Free Courses On Line

10. Maximum Size Standards • Manufacturing • 500 employees or less • Wholesaling • 100 employees or less • Service and Retail • $6 million or less in annual receipts • There are many variations so check with the District Office if you feel you business is close to these maximums

12. SBA in Hawai‘i • Counseling and Training • Financial Help – Loans • Government Contracting • Small Business Set Asides • 8(a) Sole Source Contracts • Women-owned Businesses • HUBZone Businesses

13. Small Business Resource Center

14. Counseling Partners • SBRC – Library/Computers – Honolulu & Moloka‘i • SCORE – volunteers, counsel in skill areas • WBC – Women-owned small businesses • Small Business Development Center Network • Professional counselors • In Hilo, Kihei Maui, Honolulu, Kaua‘i Com. College • Under University of Hawai‘i at Hilo

15. Financial Assistance • Loans • Primarily made by private lenders, with SBA guaranties • Guaranties are generally up to 85% of loans to $150,000; 75% of loans above $150,000

16. SBA Borrower Requirements • Good character • Management expertise and commitment to succeed • Reasonable personal contribution or business equity • Feasible business plan • Sufficient collateral • Ability to repay loan from projected operating cash flow

17. Lending History 20042005 518 Loans 428 Loans $63.2 Million $52.9 Million

18. Loan Activity, FY 2006 - Nine months ended 6/30/06

19. COMMUNITYEXPRESS LOAN

22. Congressional Goals • Prime • Small Business 23 % • SDB 5 % • Women Owned 5 % • Hub Zone 3 % • Veteran 3 %

25. Achievements in Hawai‘i – 2005 $ Million % Small Business $588 43 % Small Disadvantaged Bus. $399 29 % Woman Owned Business $102 8 % HubZone $ 57 4 % Veteran – SDVOSB $ 2 --

26. Certifications Available through SBA • 8(a) • Small Disadvantaged Business (SDB) • HUBZone (Historically Underutilized Business Zone)

27. http://www.sba.gov/8abd/

28. The 8(a) Program • Must be a small business • A for-profit small business • Owned/Controlled by a minority person • A U.S. Citizen • Minimum 2 year experience by the firm • Personal assets of < $250,000 • Excludes home and business assets

29. Benefits of 8(a) Program • Firms can receive sole-source contracts below $3 million • Firms can compete above $3 million limited to 8(a) firms only • Mentor/protégé program is available • Joint Venture permitted on larger contracts

30. The 8(a) Program FY 2003FY 2004FY 2005 8(a) $ Million $268 $229 $283

31. The 8(a) Portfolio • As of July 2006 210 firms in the portfolio • In 2005 – 110 firms contracts/mods • 716 transactions

32. The Native Hawaiian Organization (NHO) Program • An NHO is a community service organization serving Native Hawaiians • A non-profit corporation that has filed articles of incorporation with the Hawai‘i Department of Commerce and Consumer Affairs • Is controlled by Native Hawaiians • Whose activities principally benefit Native Hawaiians • For profit 8(a) firms may become subsidiaries of NHOs • The NHO must acquire 51% of the 8(a) firm • The 8(a) firm can be located anywhere in the United States • The Benefit – non-bid contracts of unlimited size

33. Current 8(a) Firms Owned by Native Hawaiian Organizations