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The United States Small Business Administration of M’erica

The United States Small Business Administration of M’erica. By: Blake Miller, Tess Strickland, and Becca Childress. Who is the SBA? (Small Business Administration). The SBA is a U.S. government agency. Provides support to entrepreneurs and small businesses.

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The United States Small Business Administration of M’erica

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  1. The United States Small Business Administration of M’erica By: Blake Miller, Tess Strickland, and Becca Childress

  2. Who is the SBA?(Small Business Administration) • The SBA is a U.S. government agency. • Provides support to entrepreneurs and small businesses. • The Small Business Administration’s mission is, “To maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters."

  3. Who is the SBA? (continued) • Provides loans to small businesses throughout America. • These loans have a government backed guarantee • Loans made through banks, credit unions, etc.

  4. How the SBA’s Loans Work • Partner with lenders. • Provide loans for small businesses • Do not write loans, only guarantees them. • If the borrower defaults, SBA covers part of the balance • This minimizes the lender's losses. • Only guarantee loans that meet its guidelines.

  5. Qualifications for Loan Assistance • Personal Background and Resume • Business Plan • Personal and Business Credit Report • Income Tax Returns • Financial and Bank Statements • Collateral • Legal Documents

  6. Personal Background and Resume • Previous addresses, names, criminal record, education, etc. • Management and Business experience for new businesses

  7. Business Plan • A firm business plan to be submitted • Should include: • Set of projected financial statements (profit ) • Cash flow • Balance sheet

  8. Personal and Business Credit Report • Inaccuracies can lower chance of getting loans • Try to fix them before submitting it • If you already have a business: • Prepare to submit a Business Credit Report • Review credit report before submission

  9. Income Tax Returns • Personal and Business Tax Returns • Within last 3 years

  10. Financial and Bank Statements • Owners with more than 20% stake: • Submit signed personal financial statements • Provide projected financial Statements • 1 year of personal and bank statements

  11. Collateral • Strong business plan can prevent submitting this • Always prepare one just in case

  12. Legal Documents • Business license and registrations • Articles of Incorporation • Copies of contracts with third parties • Franchise agreements • Commercial leases

  13. Small Businesses/ Entrepreneurs • Small Businesses have less than 500 employees • Small Businesses increased employment by 853,074 (2001-2002) • 99.7% of all firms are small businesses • Owner’s income in 2008 was $1,069,600,000,000 (1,069.6 billion)

  14. The Effect of Small Businesses on the U.S. Economy • increased employment by 853,074 during 2001-2002. • 2004- growth of 7.3% in small business income. • Business bankruptcies decreased by 2.1% • Self-employment increased by 2.2% • small businesses represent 99.7% of all firms • create more than half of private (non-farm) gross domestic product

  15. What are C Corporations? • C Corporations are “separate taxpaying entities” • Taxed separately from their owners • May have unlimited number of shareholders • C Corporation can be public or private • Public-stock is up for sale to the public • Private-Shares are not sold to public • Shares usually held by family members, board members, private investors. • People buy stock, own portion of company • Stock holders not liable for company

  16. C Corporations: Pros and Cons • Shareholders are not liable • Shareholders not responsible for company debts • No limit to amount of shareholders • Shareholders not taxed on company’s income • Company still exists when shareholders sell • State, federal fees for starting one. • More paperwork • May experience double taxation. Advantages Disadvantages

  17. Forming a C Corporation • Register your business name • File certificate of incorporation/articles of incorporation • Pay a fee • Make corporate bylaws • Hold a board of director's meeting. • Recommended that they start in your home state

  18. Popular C Corporations General Electric Microsoft UPS

  19. Bibliography • http://www.sba.gov/ • http://usgovinfo.about.com/od/smallbusiness/a/sbadrives.htm • http://www.how.com • http://www.allbusiness.com/business-planning/business-structures-corporations/2515-1.html • http://sbinformation.about.com/od/ownership1/a/ccorporation.htm

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