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U.S. Small Business Administration

U.S. Small Business Administration. Financing Your Business. Man-Li Kuo Lin, Business Development Specialist (212)264-7060 E-mail: Man-Li.Lin@SBA gov. The SBA Advantage — Resources and Programs for Success. Financing Your Business. Millions of entrepreneurs use

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U.S. Small Business Administration

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  1. U.S. Small Business Administration Financing Your Business Man-Li Kuo Lin, Business Development Specialist (212)264-7060 E-mail: Man-Li.Lin@SBA gov The SBA Advantage — Resources and Programs for Success

  2. Financing Your Business Millions of entrepreneurs use SBA resources and programs to • Start or grow a business • Effectively compete in the market place Have you explored the Small Business Advantage?

  3. Getting Started — Is Entrepreneurship for You? Financing Your Business Are you a self-starter? How well do you get alongwith different personalities? How good are you atmaking decisions? Do you have the physicaland emotional stamina torun a business? How well do you plan and organize? Is your drive strong enough? How will the business affect your family?

  4. Managing Your Business Financing Your Business • Leadership traits • Decision-making • Managing employees • Marketing basics • Forecasting for future growth • Financing options

  5. Financing Your Business Do you need assistance starting or managing business: • Developing abusiness plan • Making contacts • Accessing resources • Completing loan applications

  6. Financing Your Business The SBA and its partners provide business counseling and training at locations across the country: • SCORE • SBDCs (Small Business Development Centers) • Women’s Business Centers • SBA District Offices

  7. Financing Your Business Reaching the Underserved SBA strives to reach those underserved by our programs including: • Women • Veterans • Native Americans • Young Entrepreneurs

  8. Financing Your Business Young Entrepreneurs • Teen Business Link • Mindyourownbiz.org

  9. Financing Your Business SBA financial assistance programs can help you: • Start your business • Grow your business • Export your goods and services • Recover from a disaster SBA is primarily a guarantor of loans made by private and other institutions. The SBA does not offer grants to start or grow small businesses.

  10. Financing Your Business Do You Know Your Financing Options? • Small business loans • Loans for land and buildings • Surety bonds for small andminority construction contractors • Venture capital investing • Export assistance • Disaster assistance

  11. Financing Your Business • Owners and operators ofgood character • Feasible business plan • Management expertise andcommitment necessary for success • Sufficient funds, including SBA guaranteed loan, to operate the business on a sound financial basis • Adequate equity invested in the business • Sufficient collateral • Ability to repay the loan on time from the projected operating cash flow

  12. The 7(a) Loan Program • SBA’s primary business loan program • Broad eligibility requirements • Wide range of financing needs • Maximum loan amount of $2 million • Maximum guaranty of $1.5 million • 75% from $150,000 to $1.5 million • 85% of $150,000 or less

  13. Financing Your Business Uses for 7(a) Loan Proceeds • Expansion/renovation • Land/equipment/fixtures purposes • Working capital • Inventory • Other

  14. Financing Your Business 7(a) Loan Program Maturities • Maximum maturities • 5 - 10 years forworking capital,machinery,equipment • Up to 25 years for real estate, construction

  15. Financing Your Business 7(a) Loan Program Maximum Interest Rates • Prime + 2.25% for loansof 7 years or less • Prime + 2.75% for loansover 7 years • Rates can be higherfor smaller loans

  16. Financing Your Business The 7(a) Loan Fees • Vary with the amount of loan

  17. Financing Your Business SBAExpress • Maximum loan amount: $350,000 • Maximum guaranty: 50% • Uses: revolving line of credit/ term loan • Maximum interest: Prime +6.5% for less than $50,000; Prime +4.5% for more than $50,000 • Guaranty fees: vary with amount/ type of loan

  18. Financing Your Business CommunityExpress • Streamlined businessfinancing and management& technical assistance • Available to selected lenders • Available in pre-designated geographical areas • Designed to meet the needs of mostly low- and moderate-income areas and new markets small businesses • Maximum loan amounts: $250,000

  19. Financing Your Business Patriot Express Initiative Loan • Start-up Can be used for: • Expansion • Equipment purchases • Working capital • Inventory purchases • Business real-estate purchases

  20. Financing Your Business Patriot Express Initiative Loan • Veterans Loans up to $500,000 for military community members, including: • Service-disabled veterans • Soon to be discharged active-duty service members eligible for the military’s Transition Assistance Program • Reservists and National Guard members • Current spouses of any of the above • The widowed spouse of a service member or veteran who died during service or of a service-connected disability

  21. Financing Your Business Patriot Express Initiative Loan • 85 percent for loans of$150,000 or less Patriot Express loans qualify for the SBA’s maximum guaranty: • 75 percent for loans over$150,000 up to $500,000 • Lenders are required to takeall available collateral forloans between $350,000and $500,000

  22. Financing Your Business CapLines • Maximum loan amount: $2 million • Maximum guaranty • 75% if More Than $150,000 • 85% if Less Than $150,000 • Uses: short-term/seasonal revolving line of credit • Maturity: up to 5 years • Maximum interest: vary with amount/type/length of loan • Guaranty fees: vary with amount/ type of loan

  23. Financing Your Business Microloans • Maximum loan amount:$35,000 • Maximum guaranty: N/A • Uses: purchase machinery, equipment, fixtures, working capital, leasehold improvements; increased receivables • Maturity: shortest term possible (6 years or less) • Maximum interest: negotiable withintermediary • Guaranty fees: none

  24. NY Microloan Lenders 1. East Harlem Business Capital Corp. • Mr. Nelson Garcia, Executive Director • 2261-63 1st Avenue, 3rd Fl., New York, NY 10035 • Phone: 212- 427-6590, Fax: 212- 427-6537 • E-mail: ehbcc@aol.com, Service Area: East Harlem, Manhattan 2. Renaissance Economic Development Corp. • Mr. Jeremy Fine, Manager • 1 Pike St., New York, NY 10002 • Phone: 212- 964-6022, Fax: 212- 964-6003 • E-mail: info@renaissance-ny.org, Service Areas: All 5 Boroughs • Serves Refugees & Immigrants

  25. NY Microloan Lenders 3. Structure Employment EDC (SEEDCO) • Ms. Lesia Bates Moss, President • 915 Broadway, 18th Fl. , New York, NY 10010 • Phone: 212-204-1300, Fax: 646-274-1165 • E-mail: mossl@seedco.org, Service Area: NYC All 5 Boroughs 4. ACCION USA, Inc. • Ms. Mariela Salas, Loan Consultant • 115 East 23rd St, 7th Fl. , New York, NY 10010 • Phone: 212-387-0377, Fax: 212-387-0277 • E-mail: msalas@accionusa.org, Web-site: www.accionusa.org • Service Area: All 5 Boroughs and New Jersey

  26. NY Microloan Lenders 5. Business Center for New Americans • Ms. Yanki Tshering, Executive Director • 267 Broadway, 3rd Fl. , New York, NY 10007 • Phone: 212-898-4112, Fax: 212-898-7821 • E-mail: ytshering@nybcna.og, Web site: www.nybcna.org • Service Area: Queens & Staten Island • Serves Women, Refugees & Immigrants in 5 Boroughs 6. Grameen American, Inc. • Mr. Steven Vogel, CEO • 1460 Broadway, 14th Fl., New York, NY 10036 • Phone: 212-735-4043, Fax: 212-735-4090 • E-mail: info@grameenamerica.com • Service Area: Queens, Brooklyn & Uptown Manhattan

  27. NY Microloan Lenders 7. Washington Heights & Inwood Development Corp. • Mr. Dennis C. Reeder, Executive Director • 57 Wadsworth Avenue, New York, NY 10033 • Phone: 212-795-1600, Fax: 212-781-4051 • E-mail: whidc@aol.com, Service Area: Washington Heights & Inwood 8. BOC Capital Corp. • Mr. Hector Davis, Loan Officer • 85 South Oxford Street, Brooklyn, NY 11217 • Phone: 718- 624-9115, Fax: 718- 246-1881 • E-mail: hdavis@bocnet.org, Service Area: All 5 Boroughs

  28. NY Microloan Lenders 9. Angel Fund • Ms. Joanne Grazi, Director • 379 Kings Highway, Brooklyn, NY 11223 • Phone: 718-787-1400 ext-15, Fax: 718-787-0695 • E-mail: info@angelfundnetwork.org, Service Area: Brooklyn & Manhattan 10. Community Development Corp. of Long Island • Ms. Marianne Garvin, President & CEO • 2100 Middle Country Rd., Ste. 300, Centereach, NY 11720 • Phone: 631-471-1215, Fax: 631-471-1210 • E-mail: mgarvin@cdcli.org, Service Area: Nassau & Suffolk Counties 11. Community Capital Resources • Ms. Tamara Underwood, Small Business Program Manager • 7 West Cross St. Ste. D, Hawthorne, NY 10532 • Phone: 914-747-8020 ext. 16, Fax: 914-747-2049 • E-mail: tunderwood@ccrhv.org, Service Area: Westchester, Rockland, Putnam & Dutchess counties

  29. Financing Your Business 504/Certified Development Company • Maximum loan amount:$1.2 to $4 million • Maximum guaranty: 50% • Project costs: financed by 504 Loan 40% • lender finances — 50% • equity finances 10-20% • Uses: long-term; fixed assets • Maturity: generally 10 - 20 years • Maximum interest: fixed rate established when debenture backing sold • Guaranty fees: 0.5% upfront fee to SBA; other factors may apply

  30. Three Certified Development Companies 1. Business Initiative Corporation of New York c/o The Bronx Overall Economic Development Corp. 198 E. 161st St., Ste. 201, Bronx, NY 10451 718-590-3980, mmarquez@boedc.org 2. Empire State Certified Development Corp. 50 Beaver St./P.O. Box 738, Albany, NY 12201-0738 800-782-8369 or 212-803-3100, esd@empire.state.ny.us 3. Long Island Development Corp./ Greater New York Development Company 45 Seaman Ave, Bethpage, NY 11714 516-433-5000 or 866-433-5432 www.LIDC.org/www.gnydc.org

  31. Financing Your Business International Trade Financing • 96% of the world’scustomers reside out-side the U.S. • Conducting foreign businessis easier than ever • Global communicationsenhance business opportunities

  32. International Trade Loan Program Financing Your Business • Maximum loan amount: $2 million • Maximum guaranty: 75% if more than $150,000 85% if less than $150,000 • Uses: acquiring long-term, fixed assets or refinancing debt for that purpose • Maturity: up to 25 years • Maximum interest:vary with amount/type/length of loan

  33. Export Working Capital Program Financing Your Business • Maximum loan amount:$2 million (may be combinedwith International Trade Loan) • Maximum guaranty:90% up to $1.5 million • Uses: short-term working capital for exporters • Maturity: generally 1 year or 1 transaction cycle • Maximum interest: no cap • Guaranty fees: vary with amount/type/length of loan

  34. Small Business Investment Company Program Financing Your Business • Uses own funds plus funds obtained at favorable rates with SBA guarantees. • Provides equity capital, long-term loans, debt-equity investments and management assistance. • Funds all types of manufacturing and service-industry businesses.

  35. The Surety Bond Guarantee Program Financing Your Business SBA has two program options available: • Prior Approval Program (Plan A): • SBA guarantees 90% of a surety’s paid losses, expenses on bonded contracts up to $100,000and on bonds for socially and economically disadvantaged HUBZone contractors andveterans & service-disabled veterans. • All other bonds guaranteed in the Plan A program receive an 80% guarantee. • Preferred Surety Bond Program (Plan B) • SBA guarantees 70%, but sureties may issue, monitor and service bonds without SBA’s prior approval.

  36. Disaster Recovery for Homeowners & Renters Financing Your Business Low-interest loans may be used to: • Restore primaryresidences to pre-disaster conditions • Repair or replace uninsured personal property

  37. Disaster Recovery for Businesses Physical Disaster Loans for Businesses • Loans of up to $1.5 million • Businesses of any size Economic Injury Disaster Loans • Loans of up to $1.5 million • Covers necessary operating expenses curtailed by the disaster Military Reservist Economic Injury Disaster Loans • Loans of up to $1.5 million • Covers necessary operating expenses because owner or essential employee is federally activated • Loans mature after essential employee is released from active duty

  38. Business Development Financing Your Business • Programs for women,disadvantaged individuals,service-disabled veteransand others • Assistance to businesseslocated in disadvantagedareas competing for government contracts • The Small Disadvantaged Business Certification Program • Mentor/Protégé Program

  39. Your Voice in Government Financing Your Business • The SBA Office of Advocacyworks to ensure federal rulesand regulations do not unfairlyaffect small business. • The SBA Office of NationalOmbudsman assists smallbusinesses subjected to unfairaudits, fines or enforcementactions.

  40. SBA on the Internet Financing Your Business www.sba.gov • Easy-to-findinformation to helpsmall businessesstart, grow and succeed. • Small Business Training Network — an online virtual campus offering free courses, work-shops and resources.

  41. Financing Your Business SBA Dial-Up 1-800-U ASK SBA (1-800-827-5722) • A national toll free service providing information about SBA resourcesand programs • Talk to a businessspecialist9 a.m. — 5 p.m.(East Coast Time) • Recordedinformationavailable 24/7

  42. Financing Your Business www.business.gov The official resource to help businesses find: • Compliance information • Forms • Contacts at government agencies

  43. Your SBA For more information about your local SBA resources go to: www.sba.gov/NY/NY

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