3 rd Annual Maritime Business & Technology Summit November 28, 2011 Nicholas Manalisay Deputy Director for Area VI

1. 3rd Annual Maritime Business & Technology Summit November 28, 2011 Nicholas Manalisay Deputy Director for Area VI San Diego, CA

2. AGENDA • Overview of SBA Programs & Services • SBA Government Contracting Programs • How to do Business with the Federal Government • Small Business Programs for R&D Firms

3. The SBA’s Mission: “To maintain and strengthen the Nation’s economy by aiding, counseling, assisting, and protecting the interests of small businesses and families recover from economic and other disasters.”

4. 5 Pronged Mission • Access to Capital • Counseling and Training • Disaster Assistance • Advocacy • Government Contracting

5. SBA Loan Programs • 7(a) Loan Guaranty Program • 504 Loan Program • Micro-Loan Program We help provide access to capital.

6. SBA Requirements • Good character • Management expertise • Reasonable personal contribution or business equity • Feasible business plan • Collateral if available • Ability to repay loan from cash flow

7. 7(a) Loan Guaranty Program • SBA’s umbrella loan program • Loans up to $5 million • Apply for loan with participating SBA • lender • Lender submits application to SBA for • review and approval • After SBA approval, lender disburses and • services loan

8. 504 Loan Program • Long-term, fixed rate financing • Best real estate deal in town: 10%down, 40% SBA portion, lender 50% • Must create or retain one job for every $75,000 of SBA process

9. Microloan Program • Direct loans through intermediaries • Loans of up to $58,000 • Fast turnaround • Up to six years to repay • Technical/management assistance available • Interest rate-subject to negotiation

10. What about grants for small business? • SBA does NOT provide grants for starting and expanding a business • While other federal agencies may offer grants for specific research (e.g., NIH), almost none are for starting or expanding an existing small business concern

11. Business Counseling and Training. • Small Business Development Center (SBDC) • SCORE: Counselors to Americas Small Business • Women’s Business Center (WBC)

12. Free Customized Business Counseling • Legal Incorporation, corporate structures, leases/contracts, intellectual property • Business Planning Research, preparation, development, review • Marketing Business Development, target market identification, strategy development and implementation

13. Free Customized Business Counseling • Financial Financial statement development, analysis, strategy, capital needs, cash flow management, loan packaging, referrals to funding sources • Procurement Government Contracting, proposal preparation, negotiation, contract management • International Trade Import and Export

14. Disaster Assistance Loan Program for Homes and Personal Property • Program activated by disaster declaration by President or SBA Administrator • Real Property loans For uninsured losses to $200, 000 To restore home to pre-disaster condition • Personal property loans For uninsured losses to $40,000 Available to homeowners and

15. Advocacy for Small Business Office of Advocacy • Researches issues, develops policy and monitors effects • Produces economic reports and interprets small business statistics • Primary federal agency disseminating small business data • Oversees compliance with Regulatory Flexibility Act • More information at www.sba.gov/advo

16. Federal Contracting and Certifications

17. Federal Contracting • Certificate of Competency (COC) • Size Determination (SIZE) • Subcontracting Assistance (CMR) • Prime Contracts Program (PCR) Four SBA Programs:

18. Prime Contracts Program • Promotes full, open competition • Designed to increase small business’ share of federal contracts • SBA initiates set-asides, identifies small business sources and provides counseling

19. Federal Procurement Certifications SBA Formal Certification Programs • 8(a) Business Development (BD) • Historically Underutilized Business Zone (HUBZone)

20. Formal Certification Programs • Requires SBA Approval • 8(a) BD – Socially and economically disadvantaged firms enrolled in a 9-year business development program • HUBZone – Small businesses located in areas identified as historically underutilized business zones and with 35% of its employees living in HUBZones • 51% control & ownership by U.S. citizens required

21. 8(a) BD Program • Applies to all purchases over $3,000 • Participants MUST be certified by SBA • Non-competitive and competitive contracts awarded through program • Award must be made at fair market price • See Federal Acquisition Regulation (FAR) Part 19.8 • 9-year term – no renewals

22. HUBZone Program (Historically Underutilized Business Zone Program) • Develops historically underutilized urban and rural areas • Establishes federal award preferences for small businesses • Information is available at www.sba.gov/hubzone Note: Locator is on website.

23. HUBZone Program • Must be certified by SBA – no term limits • Principal office must be in a HUBZone • 35% of employees must live in a HUBZone • Recertification required every 3 years • Applies to purchases over $3,000 • Competitive and sole-source contract awards; • 10% Price Evaluation Preference (PEP) • See FAR Part 19.13

24. Federal Procurement Certifications Self- Certifications • Small Business (SB) • Women-Owned Small Business (WOSB) • Veteran-Owned Small Business (VOSB) • Service-Disabled Veteran-Owned Small Business (SDVOSB) • Self-certify in CCR and ORCA

25. SDVOSB Procurement Program • Applies to purchases over $3,000 • U.S. Department of Veterans Affairs (VA) determines service-connected disability • No term limits • Competitive and sole-source contract awards • Prime Contracting and Subcontracting Goals • See FAR Part 19.14 • VA’s “Veteran First Program”

26. WOSB Federal Contract Program • Self certify BUT must upload documents to SBA’s repository • Economically Disadvantaged WOSB (EDWOSB) • Only applicable to 83 NAICS codes • Contract values between $150,000 and $4 million • Competitive set-asides only

27. Getting started in Federal Contracting

28. Register your business • Online database of small businesses interested in federal contracting • Markets small businesses to potential federal customers • Provides links to Federal agencies and procurement opportunities • Update yearly • Accessed at: www.ccr.gov CCR (Central Contractor Registration)

29. Register Your Business • ORCA (Online Representations and Certifications Application) • www.orca.bpn.gov

30. Finding Prime Contract Opportunities • Identify Current Procurement Opportunities Federal Business Opportunities (FBO) www.fbo.gov • Research Past Purchases: GSA Federal Procurement Data Center www.FPDS.gov

31. Marketing Your Firm • Present your capabilities directly to the federal activities and large prime contractors that buys your products and services • Attend procurement conferences and business expos • Attend business matchmaking events

32. Contract Performance • Contingency Plans • Have a back up plan • Give yourself enough time to react • Anticipating Final Inspection • Make an appointment before shipping date • On-Time delivery • Establish a good track record

33. Specialty Programs for Research & Development (R&D) Small Business

34. Research & Development Assistance Small Business Innovation Research (SBIR) • Meets specific research and R&D needs of the federal government • Promotes commercialization of results • Awards federal grants competitively • Eleven Federal Agencies involved • More information available at: www.sba.gov/SBIR

35. Research & Development Assistance Small Business Technology Transfer (STTR) • Awards federal grants competitively • Target hi-tech firms • Mandates company collaboration with nonprofit research institution • More information available at: www.sba.gov/sbir/indexsbir-sttr.html

36. Research & Development Assistance • MilTech • Office of Technology Transition Partnership Intermediary • MilTech provides assistance to DOD customers that are transitioning innovative technology to deployed combat operations • Phone: 406-994-7700 • Email: help@miltechcenter.com

37. Federal Contracting • Procurement Technical Assistance Center (PTACs): www.dla.mil/db/procurem.htm • Small Business Specialists www.acq.osd.osd.mil/sadbu • SBA Resource Partners: • SBDCs • WBC • SCORE