NATIONAL EDITION SUMMER 2019­ Small resource guide

How to Start and Grow Your BUSINESS 1 2 CONTENTS National Edition | Summer ­2019

Local Business Funding Assistance Programs

8 National Success Story 30 National Success Story Rebecca Fyffe launched Landmark Jennifer and Jeff Herbert’s Pest Management with the help meadery has expanded into a of the SBA-supported Women’s multimillion dollar enterprise Business Development Center. thanks to SBA assistance.

10 SBA Resource 33 Need Financing? Partners 34 Go Global with 11 Your Advocates International Trade

12 Write Your 36 R&D Opportunities for High Growth Startups 14 10 Steps to Start Your Business 38 National Success Story Cheeseburger Baby owner 15 Opportunities for Veterans Stephanie Vitori persevered through a financial storm and a 16 Entrepreneurial natural disaster. Opportunities 42 Surety Bonds 18 Find Your Closest SBA Contracting 22 How to Start a Business

28 10 Tips to Help You 44 National Success Story Build and Grow a Stand- Jennifer Rahn steers the course Out Brand for Admiral Engineering, succeeding as a small business subcontractor.

47 Government Contracting

48 SBA Certification Programs

49 Woman-Owned Small Business certification

ON THE COVER Jennifer and Jeff Herbert, courtesy of Superstition Meadery 3 4 5 published by New South Media, Inc. 304.413.0104 | newsouthmediainc.com

PUBLISHER Nikki Bowman, [email protected]

ASSOCIATE EDITORS Zack Harold, [email protected] Pam Kasey, [email protected]

DESIGNER Hayley Richard, [email protected]

OPERATIONS MANAGER Holly Leleux-Thubron, [email protected]

ADVERTISING DIRECTOR Heather Mills, [email protected]

ADVERTISING SALES Sandy Burky, Kelley McGinnis, Bryson Taylor [email protected] Copyright: New South Media, Inc. Reproduction in part or whole is strictly prohibited without the express written permission of the publisher. © NEW SOUTH MEDIA, INC.

ALL RIGHTS RESERVED The U.S. Small Business Administration’s Office of & Customer Service directs the publication of the Small Business Resource Guide under SBA Contract #SBAHQ–17–C–0018. SBA publication Spring 2018 National edition #mcs-0087.

WRITER/EDITOR Becky Bosshart (202) 205-6677 [email protected]

DIRECTOR OF MARKETING Paula Panissidi Tavares [email protected]

PUBLIC AFFAIRS SPECIALIST Kelley Daniels [email protected] The SBA’s participation in this publication is not an endorsement of the views, opinions, products or services of the contractor or any advertiser or other participant appearing here. All SBA programs and services are extended to the public on a nondiscriminatory basis. Printed in the of America. While every reasonable effort has been made to ensure that the information contained here is accurate as of the date of publication, the information is subject to change without notice. The contractor that publishes this guide, the federal government, or agents thereof shall not be held liable for any damages arising from the use of or reliance on the information contained in this publication.

6 7 LOCAL BUSINESS ASSISTANCE

How We Did It Made

toJoyce and Jerado Last Reynolds used SBA support to succeed. Written by Micaela Morrissette COURTESY OF SHANA SURECK PHOTOGRAPHY SURECK SHANA OF COURTESY 8 LOCAL BUSINESS ASSISTANCE

eynolds Welding & Fabrication has grown steadily, building a loyal customer base, since Tips for Jerado Reynolds founded the company in 2005. Success R“At first the company was just Jerado,” recalls his wife and co-owner, Joyce 5 Find a great business mentor. Reynolds. “Then it was him and me part To find your local SBA office and time.” During the day she worked as a resource partners in your area, visit nurse and spent her evenings doing all sba.gov/localresources. the company’s paperwork. The Reynolds sank everything they earned into the business—money, time, and energy. She Have a healthy view remembers with pride helping Jerado of competition. weld a stair railing at a local school. Her COURTESY OF SHANA SURECK PHOTOGRAPHY SURECK SHANA OF COURTESY We’re not always competing. son later attended that same school, We’re a competitor, but if a similar and she watched her child and others SBA Resource Partner, where “from day business has extra work, they’ll send using the rail, benefiting from the one it was, Eureka! Everyone wanted it to us and vice versa. That’s the hard work the couple did together. It to see us win.” Women entrepreneurs relationship to have. was then Joyce decided as much as she receive essential business counseling and loved her day job, she wanted to devote training from this national network of herself full time to the family business community-based centers. Most helpful Record everything you do. in Windsor, Connecticut. She wanted was the detailed personal attention Navigating business relationships to work side-by-side with her husband, available through free one-on-one in this age means keeping an email fully focused on administration and record of everything you do. Leave a business counseling. Joyce also learned business growth. As they both hoped, clear paper trail. about workshops offered by providers like word of mouth spread; clients made the Metropolitan District, a Connecticut referrals. Joyce was soon overwhelmed nonprofit municipal offering with paperwork. They brought on two water and sewer services. At a meet- Sacrifice to ensure quality. employees—doubling up in the busy We don’t cut corners. Sometimes you and-greet, Joyce understood how much seasons. They were able to maintain four have to lose money to do quality work— the SBA could help her business. An full-time employees by 2009. After this, it’s rough, but nothing is more important. SBA professional walked Joyce through Joyce says, they saw that “things were the extensive paperwork and, crucially, not moving.” She wanted to scale up. helped her register the company in Seek SBA assistance to Challenge the System for Award Management The company wasn’t growing in part (sam.gov), positioning the company for see if you qualify for because it wasn’t certified with the new federal contracts. business certifications. state department of transportation or “Resources like the Entrepreneurial We used to look for jobs. Now that prequalified with the Connecticut State Center and the SBA will train you from we’re on the SBA Subcontracting Department of Administrative Services, bottom to top,” Joyce says. “They have Network database, SubNet, and sam.gov, we have a continuous flow Joyce says. She decided to tackle the finance classes that open your eyes of contractors reaching out to us. certification problem full time, leaving regarding . You'll learn how to her nursing career. This was the change register your business. They’ll help she'd been wanting to make, but since with a contract or your website or on two bridges—a lifelong dream. Joyce her background was in health care, accountability statements. Everything!” continues to move forward, getting Joyce didn’t feel fluent in the languages Before the SBA, Reynolds Welding Reynolds qualified for the SBA 8(a) of construction or business. Joyce attempted the DOT certification on five Business Development Program, which wanted to learn, and she had incentive: separate occasions, always falling short provides free business development they needed the certifications to bid because the process was so complicated. education to small so they on bigger jobs. “Never be afraid to ask Joyce secured the certification with SBA can better compete in the public sector. questions,” she says. Joyce needed to guidance on the first attempt. “When I came on full time, I set a goal find people with answers. for what I would like for the company, Benefit and I’ve achieved 80% of that,” Joyce Solution Reynolds Welding now employs more says. When she secures 8(a) certification She and Jerado connected with the than 15 workers, constructing stairs, for Reynolds, she’ll have hit all her University of Hartford Entrepreneurial rails, structural beams, and columns objectives. Then, she admits, she’ll Center & Women’s Business Center, an throughout the region. Jerado is working probably come up with some new ones.

9 LOCAL BUSINESS ASSISTANCE

SBA Resource Partners No matter your industry, location, or experience, if you have a dream, the SBA is here to help you achieve it. Our SBA Resource Partners offer mentoring, counseling, and training to help you startup and thrive at all stages of the business life cycle. These independent organizations operating across the United States and U.S. territories are funded through SBA cooperative agreements or grants.

SMALL BUSINESS DEVELOPMENT CENTERS

Achieve your dream of business ownership and remain competitive in an ever-changing global economy with assistance from your local SBDC. Access free counseling and free or low- + cost training on topics like regulatory compliance, technology 950 development, and international trade. Find an SBDC adviser at Small Business sba.gov/sbdc. Development Centers

SCORE

Join the ranks of other business owners who have experienced higher and increased growth thanks to SCORE, the nation’s largest network of volunteer business mentors. Experienced + executives share real-world knowledge to fit your busy schedule. 300 SCORE mentors are available for free as often as you need, in person, SCORE chapters via email or over video chat. Find a mentor at sba.gov/score.

WOMEN’S BUSINESS CENTERS

Women entrepreneurs receive essential business counseling and training from this national network of community-based centers. Each center tailors its services to help you navigate the challenges + women often face when starting or growing a business. To learn 100 about SBA resources for women visit sba.gov/women. Women’s Business Centers

VETERANS BUSINESS OUTREACH CENTERS

Veteran and military entrepreneurs receive business training, counseling, and referrals to other SBA Resource Partners at a Veterans Business Outreach Center, sba.gov/vboc. Receive + procurement guidance to better compete for government 20 contracts. VBOCs also serve active duty service members, Veterans Business National Guard or Reserve members, veterans of any era, and Outreach Centers military spouses.

10 LOCAL BUSINESS ASSISTANCE

To report how a proposed federal regulation could unfairly affect you, Your find your regional SBA advocate at sba.gov/advocacy.

To submit a comment about how your business has been hurt by an Advocates existing regulation, visit The SBA’s of advocacy and ombudsman are sba.gov/ombudsman/comments independent voices for small business within the federal government.

Advocacy When you need a voice within the federal »» when you need economic and small »» seek remedies when rules are government for your interests as a small business statistics inconsistently applied business owner, the SBA’s regional advocates The SBA’s Office of Advocacy also »» recover payment for services done by are here to assist. The advocates analyze the independently represents small business and government contractors effects of proposed regulations and consider advances its concerns before Congress, the alternatives that minimize the economic White House, federal agencies, federal courts, Make your voice heard by participating in a burden on small businesses, governmental and state policy makers. Regional Regulatory Enforcement Fairness jurisdictions, and nonprofits. Find your Roundtable or a public hearing hosted by the regional advocate at sba.gov/advocacy. Ombudsman SBA’s national ombudsman. These events Entrepreneurs who have an issue with an are posted periodically on the ombudsman Your advocate helps with these small existing federal regulation or policy can website, . business issues: sba.gov/ombudsman receive assistance from the SBA’s national To submit a comment or complaint through »» if your business could be negatively ombudsman. the online form, visit sba.gov/ombudsman/ affected by regulations proposed by the . Your concerns will be directed to The ombudsman’s office helps you: comments government the appropriate federal agency for review. The » resolve regulatory disputes with federal »» if you have contracting issues with a » SBA will collaborate with you and the agency federal agency agencies to help resolve the issue. »» reduce unfair penalties and fines 11 LOCAL BUSINESS ASSISTANCE Write your Business Plan Your business plan is the foundation of your business. Learn how to write a business plan with the help of an SBA Resource Partner. TRADITIONAL BUSINESS PLAN FORMAT When you write your business plan, you don’t have to stick to the exact business plan template. Instead, use the sections that make the most sense for your business and your needs. Executive Summary Briefly summarize your company and why it will be successful. Include your mission statement, your product or service, and basic information about your company’s leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing. Company Description Go into detail about the problems your business solves. Be specific as to audience and location. List out the consumers, organizations, or businesses your company plans to serve. Explain the competitive advantages you have that will make your business successful. Are there experts on your team? Have you found the perfect location? Your company description is the place to boast about your strengths. Market Analysis Demonstrate a solid understanding of your industry outlook and tar- get market. This is where it pays to partner with an experienced busi- ness counselor from your local Small Business Development Center, SCORE, Women's Business Center, or Veterans Business Outreach Center—all these SBA Resource Partners provide free or low-cost business assistance. Competitive research will show what other busi- nesses are doing and their strengths. In your market research, look for trends and themes. What do successful competitors do? Why does it work? Can you do it better? Now's the time to answer these questions. Business plans help you run your business. A good business plan guides you through managing your business. Organization and Management You’ll use your business plan as a roadmap for how to structure, run, Explain how your com- and grow your new business. pany will be structured Business plans can help you get funding or bring on new and who will run it. business partners. Investors want to see a return on their Describe the legal Want to see an investment. Your business plan is the tool you’ll use to convince structure of your busi- example of a people that working with you—or investing in your company—is ness. State whether you a smart investment. Brain storm with a business counselor (visit have or intend to incor- business plan? one of our SBA Resource Partners detailed on page 8) and write porate your business as View examples of business plans a C or an S corporation, a traditional business plan, which uses a standard structure at sba.gov/business-guide/plan/ form a general or limited and detailed sections. Once you've got it all down, you can then write-your-business- condense it to a lean startup business plan, which typically , or if you're a plan-template contains key points on only one page. sole proprietor or limited liability company.

12 LOCAL BUSINESS ASSISTANCE

LEAN STARTUP PLAN FORMAT TRADITIONAL BUSINESS PLAN CHECKLIST Write a lean startup plan if requested from an investor, or if your ❒ Executive summary business is relatively simple or you plan to regularly change and refine as you go. ❒ Company description Lean startup plans use more visual organization tools and only a ❒ Market analysis handful of elements to describe your company’s value proposition, ❒ Organization and management infrastructure, customers, and finances. They’re useful for visualiz- ing your company's fundamental facts. Your business counselor can ❒ Service or product line help you edit down into the Business Model Canvas, used here—the ❒ Marketing and sales most well known style, or another lean startup template. ❒ Funding request Key ❒ Financial projections Note the other businesses you’ll work with--suppliers, manufactur- ers, subcontractors, and similar strategic partners. ❒ Appendix Key Activities List the ways your business will gain a competitive advantage. Use an organizational chart to show the hierarchy. Explain how Will you sell direct to consumers or use technology to tap into the each person’s experience will contribute to the success of your sharing economy? venture. Consider including CVs of key members. Key Resources Service or Product Line List resources you’ll leverage to create value for your customer. Describe what you sell or what service you offer. Explain how it ben- Your most important include staff, capital, or intellectual efits your customers and the . Share your plans for property. Leverage business resources that might be available intellectual property, like copyright or patent filings. If you're doing to women, veterans, Native Americans, and HUBZone–certified research and development for your service or product, explain it. businesses. Marketing and Sales Value Proposition Your marketing strategy should evolve and change to fit your needs Make a clear and compelling statement about the unique value in each context. your company brings to the market. Describe how you'll attract and retain customers. Show how a sale will actually happen. You'll refer to this section later when you Customer Relationships make financial projections, so be thorough. Describe how customers will interact with your business. Think through the customer experience from start to finish. Is it auto- Funding Request mated or personal? In person or online? If you're asking for funding, outline your funding requirements. Specify whether you want debt or and the terms you'd like. Customer Segments Your goal is to clearly explain how much funding you’ll need over Name your target market. Your business won’t be for everybody; the next five years and how the investment will be used. it’s important to have a clear sense of who you serve. Specify if you need funds to buy equipment or materials, pay Channels salaries, or cover specific bills until increases. Explain how List the most important ways you’ll talk to your customers. you'll pay off the debt. Cost Structure Financial Projections Will your company focus on reducing cost or maximizing value? Supplement your funding request with a prospective financial Define your strategy, then list the most significant costs you’ll face. outlook for the next five years. Show how your business will be a Revenue Streams financial success. Explain how your company makes money: direct sales, member- If your business is already established, include income state- ships fees, selling advertising space? If your company has multiple ments, balance sheets, and cash flow statements for the last three to revenue streams, list them all. five years. List collateral you could put against a . Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, be even more specific and use quarterly—or even monthly —projections. Make sure to clearly explain your projections and LEAN STARTUP PLAN CHECKLIST match them to your funding requests. ❒ Key partnerships ❒ Customer segments Use visual organization tools--graphs and charts—to tell your ❒ Key activities ❒ Channels business's financial story. ❒ Key resources ❒ Cost structure Appendix Here you'll attach supporting documents or other requested ❒ Value proposition ❒ Revenue streams materials. Common items to include are credit histories, CVs, ❒ Customer relationships product pictures, letters of reference, licenses, permits, patents, legal documents, and other contracts.

13 LOCAL BUSINESS ASSISTANCE

Pick your business location. Are you setting up a brick-and mortar business or 4 launching online? Choose a business structure. The legal structure you choose for your business will affect your business registration requirements, how 5much you pay in taxes, and your personal liability.

Choose your business name. Pick a name reflecting your brand. Check your secretary of state's website to make sure your business name isn’t 6already being used.

Register your business. Once you’ve picked the perfect business name, it’s time to make it legal and protect your brand. If you’re 7doing business under a name different than your own, you’ll need to register with the federal government and often your state government.

Get federal and state IDs. You’ll use your Employer Identification Number for important steps to start and grow your business, 8like opening a account and paying taxes. It’s like a social security number for your business. Some, but not all, states 10 STEPS require you to get a tax ID as well.

to Start Your Apply for licenses and permits. Keep your business running smoothly by staying legally compliant. The licenses and permits you need for your Business 9business vary by industry, state, and location. Starting a business involves planning, making Open a business bank account. key financial decisions, and completing a A small business checking account can help you series of legal requirements. 10 handle legal, tax, and day-to-day issues.

Conduct market research. This will tell you if there’s an opportunity to turn your idea into a successful business. Gather information about 1potential customers and businesses already operating in your area so you can use that information to find a competitive advantage.

Write your business plan. This is the roadmap for how to structure, run, and grow your new business. You’ll use it to convince people that working 2with you and/or investing in your company is a smart choice.

Fund your business. Your business plan will help you figure out how much money you’ll need to startup. Investors or lenders will help 3you get the amount you need.

14 LOCAL BUSINESS ASSISTANCE

Need financing? Loan Fee Relief To encourage lending to members of the military community who want to start or grow their business, the SBA reduces upfront guarantee fees on select . That means the cost savings will be passed down to you, the eligible veteran or qualifying military member. Ask your local SBA district office or SBA Lender about the Veterans Advantage program. Have an employee who was called to active duty?

COURTESY OF LIFEHEALTH OF COURTESY You may receive funds that enable your business to meet ordinary and necessary HOW THE SBA HELPED US SUCCEED operating expenses when an essential Margot Adam Langstaff, left, and Elisa Hamill, right, sought assistance from their employee is called up to active duty in the local Veterans Business Outreach Center, which helped them better compete for military reserve. Ask your local SBA district government contracts. LifeHealth of Littleton, CO has expanded to more than 30 office or SBA Lender about the Military states with offices in Washington, DC and San Antonio, TX. Their clients include the Reservist Economic Injury Disaster Loan. Department of Defense, the National Guard, and the Indian Health Service. They also expanded their business using an SBA-backed for $350,000. Margot Interested in contracting? started her career as an Army medic, eventually running one of the largest outpatient Veteran-owned and service-disabled clinics in the Northeast at Ft. Devens, MA. veteran-owned small businesses interested in federal contracting receive training from the Veteran Institute for Procurement, which offers a platform with three Opportunities training programs to assist veterans. Visit nationalvip.org. for Veterans VIP Start Members of the military community can start and grow their small Enter the federal market and become ready businesses with the help of SBA programs. for procurement. Nearly 200 veteran-owned businesses from 29 states plus Washington, Need training? For women veterans DC have graduated from the program. In Boots to Business, you explore Receive entrepreneurial training geared VIP Grow business ownership and other self- toward women veterans, service members, Strategize to expand and operate within opportunities while learning and spouses of service members through the federal marketplace. More than 700 key business concepts. You will walk away these SBA-funded programs: veteran-owned businesses from 42 states with an overview of entrepreneurship »» Veteran Women Igniting the Spirit of plus DC and Guam have graduated from and applicable business ownership Entrepreneurship in Syracuse, New York this program. fundamentals, including how to access VIP International startup capital using SBA resources. »» LiftFund in San Antonio, Texas Enter or expand your federal and commercial Boots to Business is conducted on all For service-disabled veterans contracting opportunities overseas. military installations as part of the Learn how to start and grow a small business Department of Defense’s Transition Get certified using these SBA-funded programs: Assistance Program. Learn about the service-disabled veteran- »» Entrepreneurship Bootcamp for Veterans owned small business certification program Who’s eligible? with Disabilities in Syracuse, New York on page 49. Service members transitioning out of »» Veterans Entrepreneurship Program at active duty and military spouses. For more assistance the Riata Center for Entrepreneurship, Are you a veteran or member of Veteran and military entrepreneurs Spears School of Business, Oklahoma the National Guard or Reserve or a receive business training, counseling, and State University in Stillwater, Oklahoma military spouse? Boots to Business: referrals to other SBA Resource Partners Reboot teaches this entrepreneurship »» Veteran Entrepreneurship Jumpstart at at a Veterans Business Outreach Center, curriculum off base and in local St. Joseph’s University in Philadelphia, sba.gov/vboc. For veterans business communities. Register for either B2B Pennsylvania information visit sba.gov/veterans. program at https://sbavets.force.com. »» Dog Tag Inc., affiliated with Georgetown University in Washington, DC 15 LOCAL BUSINESS ASSISTANCE Entrepreneurial Opportunities

Regional Innovation Clusters Create jobs and grow the economy through an SBA Regional Innovation Cluster. Online Resources Find free short courses and learning Who should join Small businesses driving innovation in one of these tech industries: tools to start and grow your small • advanced composites business at sba.gov/learning. The free SBA Online Learning Center is a • agTech great resource for every entrepreneur, • bioscience especially rural business owners looking • food processing for easy access to vital business training. • data sciences • medical sciences Courses include: • power and energy • writing your business plan • unmanned aerial systems • buying a business • water tech • financing options • wood products • digital and traditional marketing to win customers • disaster recovery How it works • understanding your customer Each industry cluster is based in a geographic region. Your small business must be located in or near that region in order to join the cluster. For example, the AgLaunch Initiative cluster, which focuses on agricultural technology, is located in the Tennessee area. A small agTech business in or near Tennessee will connect with other agTech suppliers, service providers, and related institutions through that innovation cluster. Native American How it benefits you Network with other industry innovators and connect with Workshops resources that will help your small business find funding. You’ll Tribal enterprises and business organizations also receive guidance on how to better compete for government contracts and other opportunities so you can grow and expand. can receive training at an SBA Entrepreneurial Receive free technical and legal assistance to develop your tech Empowerment Workshop. These workshops and get it to market for government and industry buyers. cover business concepts important for starting, Get involved growing, or expanding a small business. RedWind Find an SBA Regional Innovation Cluster near you by visiting instructors identify and help participants avoid sba.gov/localassistance. Select the regional innovation clusters common pitfalls. Learn how to prepare a business on the drop-down menu. plan, gain access to capital, and basic book keeping. Request a workshop in your area by visiting nativesmallbusiness.org.

16 egona nnovaon sers

SBA Regional Innovation Clusters

11

14

3

13 7

10 5

6 2 12 8 9 1

4

1 Autonomous & Unmanned Systems Cluster – Emerging Tech Ventures Integrative Business Services Inc. 9 (Industry focus: Optics) The Ozarks Cluster – Startup Junkie Great Plains Technology & 2 (Industry focus: Food processing, supply 10 chain, & logistics) Cluster

3 The Water Council Cluster 11 Montana Bioscience Cluster – Montana Technology Enterprise Center 4 Marine Industry Science & Technology Cluster 12 AgLaunch Initiative 5 BioSTL: St. Louis Biosciences Cluster Utah Advanced Material 13 Manufacturing Initiative 6 Oklahoma-South Kansas Unmanned Aerial Systems Cluster Defense Alliance - LSI Business 7 The Appalachian Ohio Wood Products Cluster 14 Development Inc. (Industry focus: Advanced Power and Energy) Conductor RIC in Healthcare, Education 8 & Data/Decision Sciences – Startup Junkie Consulting 17 LOCAL BUSINESS ASSISTANCE Find your Closest SBA Office for Small Business Assistance For information on SBA offices and resource partners in your area, visit sba.gov/localresources.

ALABAMA CALIFORNIA CONNECTICUT 1. Birmingham 1. Fresno 1. Hartford (205) 290-7101 (559) 487-5791 (860) 240-4700 sba.gov/al sba.gov/ca/fresno sba.gov/ct 2. Bridgeport 2. Mobile (203) 335-0427 (251) 490-8638

DELAWARE ALASKA 1. Wilmington 1. Anchorage (302) 573-6294 (907) 271-4022 2. Los Angeles-Glendale sba.gov/de sba.gov/ak (818) 552-3201 2. Fairbanks sba.gov/ca/la (907) 474-4878 3. Sacramento-Citrus Heights (916) 735-1700 sba.gov/ca/sacramento 4. San Diego (619) 557-7250 or (619) 727-4883 ARIZONA sba.gov/ca/sandiego 1. Phoenix 5. San Francisco (602) 745-7200 (415) 744-6820 sba.gov/az sba.gov/ca/sf FLORIDA 2. Tucson 6. Orange County/Inland Empire (520) 620-7042 (714) 550-7420 1. Jacksonville sba.gov/ca/santa (904) 443-1900 3. Show Low sba.gov/fl/north (928) 532-0034 2. Orlando (407) 648-2891 3. Miami (305) 536-5521 sba.gov/southflorida ARKANSAS 4. Fort Pierce 1. Little Rock (772) 466-3176 (501) 324-7379 COLORADO 5. Tampa sba.gov/ar 1. Denver (813) 228-2100 x24 2. Fayetteville (303) 844-2607 (501) 551-2694 sba.gov/co

18 LOCAL BUSINESS ASSISTANCE

GEORGIA 1. Atlanta Find your Closest (404) 331-0100 IOWA sba.gov/ga MARYLAND 1. Des Moines 1. Baltimore (515) 284-4422 (410) 962-6195 SBA Office for Small sba.gov/ia sba.gov/md 2. Cedar Rapids Business Assistance (319) 362-6405 For information on SBA offices and resource partners in your area, visit sba.gov/localresources. GUAM 1. Hagatna (671) 472-7277 sba.gov/gu MASSACHUSETTS 1. Boston (617) 565-5590 sba.gov/ma 2. Kansas City 2. Springfield KANSAS Serving eastern Kansas (413) 785-0484 HAWAII 1. Wichita & western Missouri* (316) 269-6616 (816) 426-4900 1. Honolulu sba.gov/ks sba.gov/mo (808) 541-2990 sba.gov/hi

IDAHO MICHIGAN Also serving Baker, 1. Detroit Grant, Harney, (313) 226-6075 Malheur, Union, and sba.gov/mi Wallowa counties, OR KENTUCKY 2. Grand Rapids 1. Boise 1. Louisville (616) 456-5512 (208) 334-9004 (502) 582-5971 sba.gov/id sba.gov/ky

ILLINOIS LOUISIANA 1. Chicago MINNESOTA (312) 353-4528 1. New Orleans sba.gov/il (504) 589-6685 1. Minneapolis sba.gov/la (612) 370-2324 2. Springfield sba.gov/mn (217) 793-5020

MAINE INDIANA MISSISSIPPI 1. Augusta 1. Jackson 1. Indianapolis (207) 622-8551 (601) 965-4378 (317) 226-7272 sba.gov/me sba.gov/in sba.gov/ms 2. Bangor 2. Gulfport (207) 450-2290 (228) 863-4449 3. Portland (207) 248-9040

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MISSOURI 2. Columbia NEW OHIO (573) 382-1792 MEXICO 1. St. Louis 1. Columbus Serving eastern Missouri 3. Kansas City 1. Albuquerque (614) 469-6860 (314) 539-6600 Serving (505) 248-8225 sba.gov/oh/ sba.gov/mo/stlouis counties in sba.gov/nm columbus eastern Kansas 2. Cincinnati & western (513) 684-2814 4. Cleveland Missouri* (216) 522-4180 (816) 426-4900 3. Dayton sba.gov/oh/cleveland sba.gov/mo (614) 633-6372 4. Springfield (417) 890-8501 OKLAHOMA MONTANA 1. Oklahoma City (405) 609-8000 1. Helena sba.gov/ok (406) 441-1081 sba.gov/mt NEW YORK 1. Buffalo (716) 551-4301 OREGON Also serving Clark, sba.gov/ny/buffalo 5. Elmira Cowlitz, Skamania, 2. Rochester (607) 734-8130 Wahkiakum (585) 263-6700 6. New York City counties, WA NEBRASKA 3. Syracuse (212) 264-4354 1. Portland 1. Omaha (315) 471-9393 sba.gov/ny (503) 326-2682 (402) 221-4691 sba.gov/ny/syracuse 7. Long Island- sba.gov/or sba.gov/ne 4. Albany Hauppauge (518) 446-1118 x231 (631) 454-0750

NEVADA 1. Las Vegas (702) 388-6611 sba.gov/nv

NORTH PENNSYLVANIA CAROLINA 1. Philadelphia- 3. Wilkes-Barre King of Prussia (570) 826-6204 NEW HAMPSHIRE 1. Charlotte 2. Wilmington (704) 344-6563 (610) 382-3062 4. Pittsburgh 1. Concord (910) 398-0746 sba.gov/nc sba.gov/pa/philadelphia (412) 395-6560 (603) 225-1400 3. Raleigh 2. Harrisburg sba.gov/pa/ sba.gov/nh (919) 532-5525 (717) 782-3840 pittsburgh

NORTH DAKOTA 1. Fargo (701) 239-5131 NEW JERSEY sba.gov/nd 1. Newark 2. Bismarck 3. Grand Forks PUERTO RICO (973) 645-2434 (701) 328-5850 (701) 746-5160 1. San Juan sba.gov/nj (787) 766-5572 sba.gov/pr

20 LOCAL BUSINESS ASSISTANCE

RHODE WASHINGTON, DC ISLAND Also serving Montgomery and Prince George’s counties, MD 1. Providence and Arlington, Fairfax, and (401) 528-4561 U.S. VIRGIN ISLANDS Loudoun counties, VA sba.gov/ri 1. St. Croix Post of Duty-Christiansted 1. (202) 205-8800 (787) 523-7120 sba.gov/dc sba.gov/pr SOUTH 2. St. Thomas CAROLINA (787) 523-7120 1. Columbia (803) 765-5377 sba.gov/sc 2. North Charleston (843) 225-7430 WEST VIRGINIA 1. Clarksburg SOUTH UTAH (304) 623-5631 DAKOTA sba.gov/wv 1. Sioux Falls 1. Salt Lake City (801) 524-3209 2. Charleston (605) 330-4243 (304) 347-5220 sba.gov/sd sba.gov/ut 2. Rapid City (605) 341-5962 WISCONSIN 1. Milwaukee (414) 297-3941 TENNESSEE sba.gov/wi 1. Nashville VERMONT 2. Madison (615) 736-5881 1. Montpelier (608) 441-5263 sba.gov/tn (802) 828-4422 sba.gov/vt 2. Memphis (901) 494-6906

VIRGINIA WYOMING 1. Richmond 1. Casper (804) 771-2400 (307) 261-6500 sba.gov/va sba.gov/wy

TEXAS * Missouri counties served by the SBA Kansas 1. Lower Rio Grande City District Office: Adair, Andrew, Atchison, Bates, Valley Buchanan, Caldwell, Carroll, Cass, Chariton, Clay, (956) 427-8533 Clinton, Cooper, Davies, DeKalb, Gentry, Grundy, sba.gov/tx/ 5. Houston Harrison, Henry, Holt, Howard, Jackson, Johnson, harlingen (713) 773-6500 Lafayette, Linn, Livingston, Mercer, Nodaway, Pettis, sba.gov/tx/houston 2. Corpus Christi Platte, Ray, Saline, Sullivan, and Worth. (361) 879-0017 6. San Antonio Kansas counties served by the SBA Kansas (210) 403-5900 3. Dallas/Fort Worth WASHINGTON City District Office:Allen, Anderson, Atchison, sba.gov/tx/ (817) 684-5500 Also serving Benewah, Bonner, Boundary, Bourbon, Brown, Cherokee, Coffey, Crawford, sanantonio sba.gov/tx/dallas Clearwater, Idaho, Kootenai, Latah, Lewis, Nez Doniphan, Douglas, Franklin, Jackson, 7. Lubbock-West Perce, Shoshone counties, ID 4. El Paso Jefferson, Johnson, Labette, Leavenworth, Texas (915) 834-4600 1. Seattle 2. Spokane Linn, Marshall, Miami, Montgomery, Nemaha, (806) 472-7462 sba.gov/tx/elpaso (206) 553-7310 (509) 353-2800 Neosho, Osage, Pottawatomie, Shawnee, sba.gov/tx/lubbock sba.gov/wa Wilson, Woodson, and Wyandotte. 21 LOCAL BUSINESS ASSISTANCE

Dac Tran grew her Viet Wah market in Seattle, WA with the

help of an SBA-backed 7(a) loan. COURTESY OF THE SBA How to Start

aThinking of startingBusiness a business? Here are the nuts & bolts.

The Startup Logistics Market Research Even if you’re running a home-based business, you will have to Need to do research on your clients and location? View consumer comply with many local, state, and federal regulations. Do not and business data for your area using the Census Business ignore regulatory details. You may avoid some red tape in the Builder: Small Business Edition, https://cbb.census.gov/sbe. beginning, but your lack of compliance could become an obstacle Filter your search by business type and location to view data on as your business grows. Taking the time to research regulations your potential customers, including consumer spending, and a is as important as knowing your market. Carefully investigate summary of existing businesses, available as a map and a report. the laws affecting your industry. Being out of compliance could leave you unprotected legally, lead to expensive penalties, and Business License & Zoning jeopardize your business. Licenses are typically administered by a variety of state and local departments. It is important to consider zoning regulations when 22 LOCAL BUSINESS ASSISTANCE

An O'Fallon Casting Inc. employee at work in O'Fallon, MO. Owner Vince Gimeno grew his business thanks to expert

COURTESY OF THE SBA SBA business counseling. choosing a site for your business. Contact the local business forms, at (800) 772-1213 or visit socialsecurity.gov/employer. license office where you plan to locate your business. You may not You can file W-2s online or verify job seekers through the Social be permitted to conduct business out of your home or engage in Security Number Verification Service. industrial activity in a district. Employment Eligibility Verification Name Registration The Federal Immigration Reform and Control Act of 1986 requires Register your business name with the county clerk where your employers to verify employment eligibility of new employees. business is located. If you’re a corporation, also register with the state. The law obligates an employer to process Employment Eligibility Verification Form I-9. The U.S. Citizenship and Immigration Taxes Service offers information and assistance throughuscis.gov/i-9- As a business owner, you should know your federal tax responsibilities central. For forms call (800) 870-3676. For the employer hotline and make business decisions to comply with certain tax requirements. call (888) 464-4218 or email [email protected]. The IRS Small Business and Self-Employed Tax Center, go.usa.gov/ E-Verify, operated by the Department of Homeland Security xPxYR, offers information on a variety of topics including: obtaining in partnership with the Social Security Administration, an Employer Identification Number, paying and filing income tax, electronically verifies the Social Security number and virtual workshops, forms, and publications. employment eligibility information reported on Form I-9. It’s As the IRS continues to implement some of the Tax Cuts and the quickest way for employers to determine the employment Jobs Act provisions, your tax obligations may change. Visit the eligibility of new hires. Visit e-verify.gov, call (888) 464-4218 or Tax Reform Provisions that Affect Businesses page on irs.gov for email [email protected]. the latest tax reform updates that affect your bottom line. Health & Safety Social Security All businesses with employees are required to comply with state If you have any employees, including officers of a corporation and federal regulations regarding the protection of employees, but not the sole proprietor or partners, you must make periodic visit dol.gov for information. The Occupational Safety and Health payments, and/or file quarterly reports about payroll taxes and Administration provides information on the specific health and other mandatory deductions. You can contact the IRS or the safety standards used by the U.S. Department of Labor. Call (800) Social Security Administration for information, assistance, and 321-6742 or visit osha.gov. 23 LOCAL BUSINESS ASSISTANCE COURTESY OF THE KARI WEIGEL COURTESY OF THE SBA COURTESY OF J. EMILIO FLORES COURTESY OF THE SBA

Employee Environmental CLOCKWISE FROM TOP LEFT Check with your state laws to see if you Regulations Kari Weigel provides educational services to are required to provide unemployment rural communities through her Sylvan Learning State assistance is available for small Center in Fargo, ND, which she expanded with or workers’ compensation insurance for businesses that must comply with the help of SBA-backed financing. your employees. For environmental regulations under the With the guidance of the SBA, Gricelda Mata options, call the Small Business Clean Air Act. State Small Business qualified for SBA-backed financing to grow Health Options Program at (800) 706- her in Wyoming, MI, outside Grand Environmental Assistance programs Rapids. She opened Lindo Mexico’s new location 7893 or visit healthcare.gov/small- provide free and confidential assistance in 2015, complete with a larger dining area, an businesses/employers. to help small business owners understand expanded bar, and a patio area. Department of Labor Association and comply with complex environmental Mark Moralez was unable to find a bank to take a Health Plans allow small businesses, regulations and permitting requirements. risk on his business loan until he connected with including self-employed workers, to an SBA Lender. Mark qualified for a $1.1 million These state programs can help businesses SBA-backed 7(a) loan to purchase Printing Palace band together by geography or industry reduce emissions at the source, often in Santa, Monica, CA in 2015. to obtain health care coverage as if reducing regulatory burden and saving Assisted by her local Small Business Development they were a single large employer. For you money. To learn more about these Center and Women’s Business Center, Teresa information, visit dol.gov/general/ Myers, owner of Myers-Seth Pump in Jacksonville, free services visit nationalsbeap.org/ FL, received in-depth business assistance training topic/association-health-plans. states/list. in the SBA Emerging Leaders program. 24 LOCAL BUSINESS ASSISTANCE

Accessibility and ADA Compliance Reeves Clippard used the business knowledge he For assistance with the Americans with Disabilities Act, call the acquired in the SBA Emerging Leaders program to ADA Center at (800) 949-4232 or the Department of Justice at grow A/R Solar in Seattle, WA. (800) 514-0301. Direct questions about accessible design and the ADA standards to the U.S. Access Board at (800) 872-2253, TTY (800) 993-2822, [email protected] or visit access-board.gov.

Child Support Employers are essential to the success of the child support program and are responsible for collecting 75% of support nationwide through payroll deductions. The Office of Child Support Enforcement at Health and Human Services offers employers step-by-step instructions for processing income withholding orders for child support. Download the fact sheet about the Employer’s Role in the Child Support Program at the Office of Child Support Enforcement’s website at acf.hhs.gov/ programs/css > employer responsibilities. You can also find information about other employer responsibilities and tools that can make meeting those responsibilities easier, such as electronic income withholding orders and the Child Support Portal. Send questions to [email protected].

Intellectual Property Patents, trademarks, and copyrights are types of intellectual property that serve to protect creations and innovations. The United States Patent and Trademark Office is the federal agency that grants U.S. patents and registers trademarks. For information and resources about U.S. patents and federally registered trademarks consult uspto.gov. Call the patent and trademark office help center at (800) 786-9199 or visit your nearest office: »» U.S. Patent and Trademark headquarters in Alexandria, Virginia »» Elijah J. McCoy Midwest Regional Office in Detroit, Michigan,

uspto.gov/detroit COURTESY OF THE SBA »» Rocky Mountain Regional Office in Denver, Colorado, uspto.gov/denver A trademark or service mark includes any word, name, symbol, »» Silicon Valley USPTO in San Jose, California, device, or any combination, used or intended to be used to identify uspto.gov/siliconvalley and distinguish the goods/services of one seller or provider from those of others and to indicate the source of the goods/services. »» Texas Regional Office in Dallas, uspto.gov/texas Trademarks and service marks may be registered at both the A patent for an invention is the grant of a property right to an state and federal level. The U.S. Patent and Trademark Office only inventor, issued by the U.S. patent office. The right conferred registers federal trademarks and service marks. Federally registered by the patent grant is the right to exclude others from making, trademarks may conflict with and supersede those registered only at using, offering for sale, or selling the invention in the United the state level. Visit uspto.gov/trademarks. States or importing the invention into the country. For Copyrights protect original works of authorship including information visit uspto.gov/inventors. literary, dramatic, musical and artistic, and certain other There are three types of patents: intellectual works. Copyrights do not protect facts, ideas, and • Utility patents may be granted to anyone who invents or systems, although they may protect the way they are expressed. discovers any new and useful process, machine, manufacture, For general information contact: or composition of matter, or any new and useful improvement. »» U.S. Copyright Office • Design patents may be granted to anyone who invents a new, U.S. Library of Congress original, and ornamental design for an article of manufacture. James Madison Memorial Building • Plant patents may be granted to anyone who invents or 101 Independence Ave. Southeast discovers and asexually reproduces any distinct and new Washington, DC variety of plant, other than a tuber propagated plant or a plant (202) 707-3000 or toll free (877) 476-0778 found in an uncultivated state. copyright.gov 25 BLUEPRINT ADVERTISEMENT

We’re Builders at Heart Building a successful business is no easy feat. You’re responsible for managing financing, cashflow, hiring, payroll, taxes—all of which are areas that are challenging enough on their own before you take into account the efforts required to find and retain profitable customers.

Whether your business is creating products or offering services, While it’s easier than ever before to make your small business you’ll need to build your brand and find a way to reach your most brand big by leveraging mobile technology and , we valuable customers and prospects. know it can be daunting for entrepreneurs and owners who are not experienced digital marketers. Like you, we’re builders at heart. At Facebook, we’ve built a company that connects billions of people around the world. Our That is why we created Facebook Blueprint—a global education teams are constantly iterating, solving problems and working program that offers free, self-paced courses (online and video). together to empower people to build community and connect to It will help you master the tools and create effective marketing one another in meaningful ways. on Facebook and Instagram. From Creating a Facebook Business Page to Audience Targeting to Campaign Measurement, there’s a We’ve also built powerful tools that help millions of small course for everyone whether you’re a beginner or advanced. businesses to expand their reach, find new customers, and subsequently drive transactions and build lasting relationships with them.

For example, Lloyd Taco, a food truck and restaurant company based in Buffalo, New York, built their business from scratch using a Facebook Business Page (and Page tools) as their go-to platform for engaging with the community. The actions they took on their page included announcing the truck’s whereabouts, managing promotions and communicating directly with customers. As of mid-2018, the company reported:

• 37% of new customers learned about Lloyd Taco from Facebook • 42,000 people reached per week, on average • 15 hours saved per week by prescheduling Facebook post publishing

26 ADVERTISEMENTADVERTISEMENT FACEBOOK BLUEPRINT 3 Tips for Building Your Brand Online

You’re building a business, which means you’re also building your brand. These days, the first place people look when learning more about a business is online, and having a Facebook Business Page gives you a chance to make important information about your business easily accessible.

Here are 3 tips to set up your Facebook Business Page (and to make the most of Page tools) so you can be on your way to reaching your business goals.

Create a place for people to “meet your business” online Manage many aspects of your business from your Page You can create your Facebook Business Page in minutes. It’s In addition to posting, there are many more ways for you simple, free, and looks great on both desktop and mobile. to use your Page to manage your business: Be sure to select the Page template and action buttons (e.g. Shop • Encourage customers to take specific actions - Drive Now, Send a Message, Write a Recommendation) that make the more transactions with Page features tailored for most sense for your business. your business type. For example, you can schedule appointments or take reservations, drive people to your Build an active and engaged audience for your business website’s shop or donate page, or provide a link for your Grow your audience by inviting people who may be app or game to encourage people to download. interested in what you have to offer to like your Business • Offer great customer service - People can communicate Page. Your audience will likely consist of a wide variety of with your business through Messenger—it’s a familiar people — friends or family who are fans of your product/ and convenient way to answer questions or help out a content, potential customers, current customers and former customer. You can even create and save responses to customers. Posting on your Business Page is a great way to let common inquiries to cut down on response time. your customers and fans know what your business is up to. • Post an open job - Reach qualified job candidates Keep customers interested and engaged with product or service where they’re already spending their time—on updates, special promotions, event notifications and more. Facebook. You can post job opportunities on your Business Page for free. • Share on offer- Create coupons and discounts right from your Page to let people know about specials and Want to grow your deals—it can help you re-engage existing customers and attract new ones. business but don’t • Promote an event - If you’re hosting an event for your business, you can use Facebook Events to spread the know where to start? word. Share key details (time, location, etc.), increase attendance and sell tickets. Download and print your free ‘Grow • Sell things on Marketplace - Connect your products Your Business’ digital infographic which and services to your local community by listing things to provides a list of recommended online Facebook Marketplace. You can target buyers on the go courses for 6 marketing challenges with mobile-friendly listings. commonly faced by businesses. https://fb.me/start-your-learning-here This is a paid advertisement. The inclusion of this paid advertisement in the SBA Small Business Resource Guide does not indicate SBA’s endorsement of the company, its owner, or its advertised products or services. 27 LOCAL BUSINESS ASSISTANCE 10 Tips to Help You Build and Grow a Stand-Out Small Business Brand

Build a better business with these time-tested tips.

Elliot Henry, an 8(a) program graduate, runs Unlimited Water Processing in St. Louis, MO.

The United States loves small businesses. That’s according to niche, the target customer is very defined. Business operations a survey by the Pew Foundation reported by Small Business are agile and unconstrained by corporate rules and processes. Trends, smallbiztrends.com, which found that 71% of Americans Small businesses are also trusted for their integrity, community view small business more favorably than any other institutions, engagement, and customer service. When was the last time you including religious organizations. called a small business and got put through to an automated call Why is this? Well, small businesses are seen as a positive influence. center? These things come together to create a hugely competitive But it’s more than that. value proposition, the linchpin of your brand. Small businesses are in a unique position to create valuable But what can you do to leverage these experiences and grow customer experiences. Their products and services are often the appeal of your brand without breaking the bank?

28 LOCAL BUSINESS ASSISTANCE

What is Your Brand? Have a Distinct Voice It’s important to understand that your brand is much A great way to ensure your distinct brand message more than your logo, merchandising or products. It is is delivered consistently across your business is to all the experiences customers have with your business, focus on how you and your employees interact and 1including the visual elements of your business. It also includes 6communicate with customers in person, on the phone, and what you do, how you do it, customer interactions, and your on social media. Not sure what your “voice” should be? Look marketing. All of these elements help establish the trust and to other brands. What do they do that you’d like to emulate? credibility of your business. How do they greet and interact with you? What is it they do that makes you feel good about doing business with them? Stand Out If your brand is going to be strong, you need to be able Build Community Around What you Do to pinpoint what makes you different from competitors. A successful brand is one trusted and respected by A SCORE mentor, sba.gov/score, can help you use customers. Building a strong community online and 2competitive differentiators to build your business brand. off can help you achieve this. You don’t have to spend Don’t forget to weave your differentiators into your company’s 7a lot of money to do this. In fact, many successful brands messaging and marketing. concentrate almost exclusively in online and offline community building. Offline participation in community activities, such as Have Great Products and Services local events, fundraisers, and charities, as well as hosting your Word of mouth is often a small business’s greatest lead own events, such as workshops or loyal customer events, can all generator, so having great products and services that help you build community and extend the trust your brand has people talk about is a critical part of your brand. Even earned. 3the most outgoing and charming small business owner is not going to succeed in bringing customers back unless the product Be an Advocate for Your Business— or service they provide delivers and exceeds expectations. Don’t Not Just a Salesman lose sight of your product, keep refining it, testing new offerings, You don't have to be the greatest salesman to succeed and making sure you always put product first. in business. Selling takes many forms, and being a 8brand advocate gels them. For example, many small business Make Sure Your Customers Know owners strive to be the number one salesman, the number one the Face Behind the Product cheerleader, and the number one fan of their own business. If One of the biggest reasons that small businesses fail you are passionate about your business, be an advocate for it. is because of the persistent absence of the business Invite people in! 4owner. You only need to look at a few episodes of business makeover TV shows to witness what can go wrong when a Be Reliable business is left to run itself. Without an actively engaged owner, Letting your customers down by failing to live up employees lose motivation and structure, which can quickly lead to your own promises and brand standards can be to sloppy service, a poor product, and customer churn. Yes, your particularly harmful for small businesses that depend business needs to be able to function without your constant 9heavily on referrals. The foundation of brand loyalty lies in great presence, but it’s important to strike a balance. Find ways to service; a happy customer is a loyal customer. Make sure you make sure your customers know you and connect with the face aren’t making promises that you can’t keep, whether you run a behind the business. Businesses thrive when the energy of the pizza business and pledge to deliver within 30 minutes, or you’re owner is present. a painting contractor who promises to start a job on a Monday at 9 a.m. sharp. Stand by your promises. Get Your Name and Logo Right It’s important to get this right the first time because Have a Value Proposition changing your name and logo later can be costly. Your Value, not to be mistaken with price, can help logo and name should be easily recognizable and define your brand and differentiate you from 5reflect the nature and tone of your business as well as appeal the competition. This goes back to my second to your target market. I’m a dog owner, and two of my absolute 10point about standing out. What niche do you serve? What do you favorite small businesses cater to pet owners: my local provider do well in that niche that makes you different from everyone of dog walking services and a healthful pet food store. When else? What are the emotional benefits of what you do? The I see their logos, it makes me feel good; I feel an affinity with answers to these questions will help define what your value is to them. That’s what you need to shoot for. your customers. It could be your great customer service, product quality, innovation, or a combination of these.

written by Caron Beesley, contributor

29 FUNDING PROGRAMS Financing Your Small Business

How We Did It Crafting a

BusinessSBA-backed financing helped Superstition Meadery expand into a multimillion dollar enterprise. written by Becky Bosshart COURTESY OF SUPERSTITION MEADERY SUPERSTITION OF COURTESY 30 FUNDING PROGRAMS

ennifer and Jeff Herbert’s Solution home-based brewing has Thanks to guidance from an SBA expanded into a global, Resource Partner, the Small Business multimillion dollar Development Center at Yavapai enterprise thanks to SBA Community College, Jennifer and Jeff FUNDING PROGRAMS assistance. Using Arizona honey and learned about financing that worked Jingredients they’ve sourced from for them. The SBA guarantees loans Financing Your Small Business around the world (such as Tahitian made by lending institutions to small vanilla and Moroccan saffron), the business that would not otherwise be Herberts are selling nearly 30,000 able to obtain financing. Their small Tips for gallons annually of their honey-based business qualified for two SBA-backed fermented beverage. They operate a loans totaling more than $600,000. The downtown Prescott, Arizona tasting Herberts’ first SBA-backed loan allowed Success room and state-of-the-art production them to acquire commercial property to 5 facility, creating jobs and building design and build their mead production Get guidance. a local craft industry. The Herberts, facility. Their second SBA-backed loan Develop a working relationship with founding members of the American provided the funding for professional an SBA Resource Partner (see page 8) Mead Makers Association, have brewing equipment to complete their to help you find the funding that works traveled around the world hosting 7,450-square-foot production space. The best for you. pairing events and pouring at craft Herberts recently purchased a historic beverage festivals. building in downtown Phoenix, Arizona Define your lending needs. Challenge to open a mead-pairing restaurant. Determine if a loan is right for you. Is Benefit The Herberts wanted to scale up their this the right time? How much do you The Herberts started with two meadery while also staying true to need? What are you going to use it for? their values of quality ingredients and employees and now have over 20 craft process. It is often difficult for producing 29,000 gallons this year. new entrepreneurs or unique concepts From a homegrown setup, Jennifer and Talk to multiple lenders. Jeff are now charting revenue in excess like a meadery to get traditional See who best matches you and your financing, even though they knew of $2.6 million and distributing to 37 business. Has the lender successfully they had a great idea, the backing states, across Europe and Southeast worked with other businesses in wasn’t there to expand. They say that Asia. They have plans for another your industry? choosing to do something new breaks expansion, including a shipping the mold, which can be uncomfortable warehouse to manage their online retail for traditional lenders. and wholesale orders. Check all options. Consult with your lender to see if you’re eligible for SBA financing programs, determined by your industry & experience; collateral; credit score; and the relationship & transparency you develop with the lending agent.

Be ready for the ups and downs. Your entrepreneurial endeavor will be a roller coaster ride filled with challenges and successes. The path is all consuming so make sure that you love what you do. Passion is the price of admission.

Jeff & Jennifer Herbert, owners of Superstition Meadery, completed their 7,450-square- foot production space and opened a tasting room in Prescott, AZ with the assistance of SBA-backed financing. See their story on YouTube by searching for the 2019 National

COURTESY OF SUPERSTITION MEADERY SUPERSTITION OF COURTESY Small Business Persons of the Year.

31 FUNDING PROGRAMS

Lender SBA-backed Loans help small business owners and entrepreneurs who are Match creditworthy but don’t qualify for conventional financing. Find a lender interested If you cannot obtain a business loan with reasonable rates in working with you at sba.gov/lendermatch. and terms, contact your local SBA Lender to see if you are This matching tool eligible for SBA programs. The SBA works with participating connects entrepreneurs lenders to reduce their risk, increasing the likelihood your with SBA Lenders in loan will be approved with the terms that work best for your area. you. The guarantee is conditional on the lender following SBA program requirements. Just like with any other loan, you make your loan payments directly to your lender in accordance with your terms.

Let us help give

voice to your BY NEW SOUTH MEDIA We have all heard the phrase “content is story. king.” Creating rich, engaging, and inspiring content differentiates your brand in the marketplace. But who has time to focus on anything other than running their business? Narrative works with you to develop the tools to tell your story across all media platforms. Powerful and authentic storytelling helps you stand out. It inspires action. It creates an emotional impact and forges enduring relationships. It separates you from SCOPE OF SERVICES the competition. Brand Voice Brochures Videos To learn more, contact Buddy Butler at [email protected] or call Articles Website Content Photography and more 304.615.9884.

32 FUNDING PROGRAMS Need Financing? Visit your local SBA office or lender to learn about these funding options.

The 7(a) Loan, the SBA’s Largest Financing Program If you cannot get conventional financing and you meet the eligibility requirements, you can use a 7(a) loan to buy real estate, equipment, or inventory for your small business. It may also be used for working capital, to refinance business debt or purchase a small business. MAX LOAN AMOUNT: $5 million INTEREST RATE: generally prime + a reasonable rate capped at 2.75% TERMS: loan term varies according to the purpose of the loan, generally up to 25 years for real estate, 10 years for other fixed assets and working capital GUARANTEE: 50 to 90%

CAPLines Microloans Meet your revolving capital needs with lines of credit. CAPLines can Eligible businesses can startup and grow with working be used for contract financing, seasonal lines of credit, builders line capital or funds for supplies, equipment, furniture and fixtures. of credit, or for general working capital lines. Borrow from $500 to $50,000 and access free business counseling from microlenders. SBA Express Loan INTEREST RATE: loans less than $10,000, lender cost + 8.5%; loans Featuring a simplified process, these loans are delivered by $10,000 and greater, lender cost + 7.75% experienced lenders who are authorized to make the credit decision for the SBA. These can be term loans or revolving lines of credit. TERMS: lender negotiated, no early payoff penalty MAX LOAN AMOUNT: $350,000 504 Certified Development Company Loan INTEREST RATE: for loans less than $50,000, prime + 6.5%; for If you do not qualify for traditional financing, but would like to loans of $50,000 and greater, prime + 4.75% purchase or renovate real estate or buy heavy equipment for TERMS: loan term varies according to the purpose of the loan, your business, ask about the 504 loan. It provides competitive generally up to 25 years for real estate and 10 years for other fixed fixed-rate mortgage financing through a lender and a Certified assets and working capital Development Company. GUARANTEE: 50% MAX LOAN AMOUNT (UP TO 40% OF THE TOTAL PROJECT): up to $5 million; $5.5 million for manufacturing or energy public Community Advantage policy projects A financing program for women, veterans, low-income borrowers, and INTEREST RATE: below market fixed rates for 10, 20 or 25 year terms minority entrepreneurs just starting up or in business for a few years. TERMS: 20 or 25 years for real estate or long-term equipment, Receive free business counseling as you work with a community-based 10 years for general machinery and equipment financial institution. GUARANTEE: the lender provides a senior loan for 50% of the prime + 6% INTEREST RATE: project cost (with no SBA guarantee); the CDC finances up to 40% in TERMS: up to 25 years for real estate, 10 years for equipment and a junior lien position (supported by the SBA guarantee) working capital SPECIAL CONDITION: a minimum borrower contribution, or down GUARANTEE: 75 to 90% payment, is required, amounts vary by project but are usually 10%

33 FUNDING PROGRAMS Go Global with International Trade Businesses that export are more resilient—they are less dependent on any one market. Exporting also stabilizes sales for those who make seasonal products. COURTESY OF THE SBA COURTESY OF THE SBA

Expand your Market finalizing an export sale or contract, so adequate Interest rate: typically not to exceed prime Small businesses can enter and excel in the financing is in place by the time you win your + 6.5% international marketplace using State Trade contract. If you’ve been in business for at least Terms: up to 25 years for real estate, up to Expansion Program grants and training. a year, ask your area SBA regional finance 10 years for equipment, up to seven years Visit sba.gov/internationaltrade to find manager about the Export Working Capital for lines of credit out if your state is participating. program. The International Trade Loan program Guarantee: up to 90% You can: also helps exporters who have been adversely Approval time: 36 hours or less affected by foreign importing competition, • learn how to export helping you better compete globally. • participate in foreign trade missions and Max loan amount: $5 million trade shows Interest rate: for Export Working Capital, the Expert Advice on • obtain services to support foreign market rate is negotiated between borrower and lender. Exporting entry For the International Trade Loan, it also cannot Find an SBA professional in one of the exceed prime + 2.75% for loan amounts over • translate websites to attract foreign buyers 21 U.S. Export Assistance Centers, $50,000 and maturity of seven years or more • design international marketing products sba.gov/tools/local-assistance/ Terms: For Export Working Capital, typically or campaigns eac, located in most major metro one year, cannot exceed three years. For areas. The centers are also staffed by International Trade Loans, up to 25 years for Financing for International Growth the U.S. Department of Commerce real estate, up to 10 years for equipment Having trouble securing capital to meet your and, in some locations, the Export- Guarantee: up to 90% small business exporting needs? Use SBA Import Bank of the United States and international trade programs to cover short Export Express uses a streamlined process other public and private organiza- or long-term costs necessary to sell goods or that expedites the SBA guarantee—what tions. Visit your local Small Business services abroad. Loan proceeds can be used small businesses need most when preparing Development Center (see page 8) for for working capital to finance foreign sales or to export or ramping up international trade exporting assistance from profes- for fixed assets, helping you better compete on a fast timeline. sional business counselors. globally. You can apply for lines of credit prior to Max loan amount: $500,000

34 HOW THE SBA HELPED US SUCCEED Help with Trade Barriers Small businesses that qualify for the SBA State Trade Expansion Program use If you need assistance with grant proceeds to bolster their international market presence, which EarthQuaker international trade regulations, Devices has done in a seismic way. A manufacturer of guitar special effects the SBA can be your advocate in pedals in Akron, OH, EarthQuaker has built an international social media fanbase foreign markets. Call toll free delivering content in seven languages, generating millions of website page views. (855) 722-4877 or email your EarthQuaker owners Julie Robbins & Jamie Stillman developed their global contact information and trade marketing strategy and multilingual promo materials with the SBA State Trade Expansion issue to [email protected]. Program. The couple also received global marketing counseling and research assistance from the Ohio Small Business development Center Export Assistance Network. 35 FUNDING PROGRAMS R&D Opportunities for High Growth Startups Engaged in high-risk research and development? Compete for funding to develop your cutting-edge technology.

Do you work in one of these areas? »» advanced materials »» agTech »» artificial intelligence »» biomedical »» cybersecurity »» energy »» first response »» national security »» space exploration The Small Business Innovation Research and the Small Business programs, also called America’s Seed Fund, provide more than $3.5 billion in early stage capital through a competitive awards process.

How it works Every year, participating federal agencies announce topical areas that address their R&D needs. Eligible businesses submit proposals to win either grants or contracts. There are three phases: »» The proof-of-concept stage typically lasts from 6-12 months, and ranges from $100,000-$225,000. »» The full R&D period lasts about 24 months and typically provides $600,000- $1.5 million. »» The commercialization stage is when you seek public or private funds for your venture. COURTESY OF THE SBA

How your startup benefits HOW THE SBA HELPED US SUCCEED The funding agency does not take an equity Killer Snails brings science out of the laboratory and into classrooms and living rooms position or ownership of your business. The with award-winning educational games, such as BioDive, Assassins of the Sea, and federal government also protects data rights and Biome Builder. The Brooklyn, NY-based business gained access to startup funding the ability to win sole-source phase III contracts. thanks to the Small Business Innovation Research program. Dr. Mandë Holford, left, Participating agencies: Jessica Ochoa Hendrix, right, and Dr. Lindsay Portnoy envisioned how venomous »» Department of Agriculture marine snail research could be used in extended reality and digital learning to engage students and meet educators’ needs. The business has raised more than $1.2 million to »» Department of Commerce support a team of full-time employees. Killer Snails’s tabletop, digital, augmented and ›› National Institute of Standards virtual reality games have won national and international awards. and Technology

36 ›› National Oceanic and Atmospheric Administration »» Department of Defense »» Department of Education »» Department of Energy »» Department of Health and Human Services »» Department of Homeland Security »» Department of Transportation »» Environmental Protection Agency »» NASA »» National Science Foundation Visit sbir.gov to find funding opportunities and helpful program tutorials, as well as past award winners, such as Qualcomm, iRobot, Illumina, and Symantec.

SBIR Road Tour Visit sbirroadtour.com to learn about national events connecting entrepreneurs working on advanced tech to the country’s largest source of early stage funding. Each SBIR Road Tour stop introduces participating federal agency program managers, who oversee over 5,000 new awards annually. Southwest U.S. stops in Arizona, Texas, New Mexico, and Colorado are planned for mid-August. Eastern stops in Vermont, New York, New Jersey, Pennsylvania, and Maryland are planned for mid-September. The road tour stops in Miami and Puerto Rico in November. Investment Capital Looking for investors? For mature, profitable busi- nesses with sufficient cash flow to pay interest, a Small Business Investment Company can help scale up your small business.

How an SBIC works Investment companies with financing expertise in certain industry sectors receive SBA-guaranteed loans, which means the federal government is responsible in case of default. These investment companies then use the SBA-guaranteed capital and private funds to invest in qualifying small businesses. Each SBIC has its own investment profile in terms of targeted industry, geogra- phy, company maturity, the types and size of financing they provide.

To be eligible The majority of your employees and assets must be within the United States. Some ineligible small businesses and activities include relenders, real estate, project financing, and foreign investment. Visit sba.gov and click on Funding Program and then Investment Capital.

37 FUNDING PROGRAMS DISASTER ASSISTANCE COURTESY OF THE SBA

How I Did It Smiling After the Storm With SBA assistance, Stephanie Vitori rebuilt her Miami Beach, FL restaurant after Hurricane Irma. written by Jess Walker beef cheeseburgers sizzle on the flat-top grill. f you ask Stephanie Vitori, the person who coined the term “bittersweet” Burgers are kept classic, no extra frills. “People must have run a business. In the 15 years Stephanie has owned feel at home,” Stephanie says. “You’re not just Cheeseburger Baby, the Florida burger joint has endured recessions, another table somebody has to serve.” Here, multiple hurricanes, and competition from corporate franchises. She has everybody feels like somebody, she says. So grown along with Cheeseburger Baby, changing with each stage of the many people love a good cheeseburger, which business lifecycle. is why all kinds of people are attracted to her IVitori worked as a delivery driver before purchasing the business in restaurant. Cheeseburger Baby’s handcrafted 2004. Since then, she’s expanded by purchasing two food trucks. She runs patties have been featured on the Food an open kitchen, which means customers can watch their 100% Angus Network and consumed by celebrities such as 38 DISASTER ASSISTANCE FUNDING PROGRAMS

What to do after a Disaster Declaration After a disaster is declared by the President Register with FEMA at disasterassistance.gov, or call (800) 621-3362, TTY 800-462-7585, or visit a Disaster Recovery Center. Locations can be found at fema.gov/drc. Businesses are automatically referred to the SBA. Most homeowners and renters will be referred by FEMA to the SBA to apply for disaster loan assistance. You must complete the SBA application to be considered for assistance. If the SBA cannot help you with a loan for all your needs, the SBA

COURTESY OF THE SBA will in most cases refer you back to FEMA. If you do not complete an SBA application, you may not be Jay-Z and Kanye West. Stephanie has met famous chefs “all through considered for assistance from other agencies. a cheeseburger.” But just as special to her is the Vietnamese couple who came in one day, speaking little English. They were eager to meet Express Bridge Loan Pilot Program Stephanie and show her a napkin with “Cheeseburger Baby” scrawled Businesses affected by a Presidential disaster on it. On the other side of the world, a friend had told them to come, declaration are eligible to receive expedited so they did. It all just goes to show you, Stephanie says, people come financing through an SBA Express lender. These together for a great cheeseburger. funds may be used for disaster-related purposes while the business waits for long-term financing Challenge through the SBA’s direct disaster loan program. Despite these sweet moments, there have also been bitter ones. Loan Amount: $25,000 Hurricane Irma struck in 2017, and Cheeseburger Baby lost equipment Terms: up to seven years and food supplies. Thirty percent of sales blew away with the wind. “It was a zombie zone in South Beach. People were scared to come since Guarantee: 50% they thought everything was destroyed,” Stephanie says. “It was the After a disaster is declared by the SBA roughest road I’ve ever traveled.” Businesses of all sizes, nonprofits, homeowners, and renters are eligible to apply Solution for an SBA disaster assistance An SBA disaster assistance loan aided Cheeseburger Baby’s recovery. loan. Visit a Business Recovery The SBA provides direct low-interest loans to businesses of all sizes, Center or Disaster Loan nonprofits, homeowners, and renters to repair damage or replace Outreach Center in your area or property not covered by insurance or other forms of assistance. visit disasterloan.sba.gov/ela to apply for a loan. SBA disaster assistance loans can also be used to rebuild stronger, You can also call the SBA customer service center protecting your home or business against future damage caused by a at (800) 659-2955, TTY (800) 877-8339, and ask for disaster. The SBA also introduced Stephanie to her local Small an application package. FEMA grant assistance for homeowners or renters is not available under an SBA declaration. When you're affected by a disaster the SBA, the Federal Information you need to get started: • address of damaged residence or business Emergency Management Agency, and other organizations and contact information work together to provide assistance. Once immediate safety and security needs are met, the SBA helps get you and your • insurance information, including type of community back to where you were before the disaster. Since insurance, policy numbers, and amount received low-interest SBA disaster assistance loans are government aid, creditworthiness and the ability to repay are taken into • household and/or business income consideration before a loan is awarded. • description of disaster-caused damage and losses

39 FUNDING PROGRAMS DISASTER ASSISTANCE

The SBA provides direct low-interest loans to Keep businesses of all sizes, nonprofits, homeowners, in and renters to repair mind Since an SBA disaster or replace damaged assistance loan is a direct loan from the property not covered government, other

COURTESY OF THE SBA organizations may by insurance or other reduce or not award Business Development Center, which you a grant if you have provided assistance with financing forms of assistance. received an SBA loan options and marketing. She continues or other assistance for to meet with SBDC advisers every SBA disaster assistance your disaster loss. Be month to remain competitive in an sure to check with the ever-changing economy. loans can also be used organization offering During disasters, the responsibility assistance to see how falls on the owner’s shoulders. But to rebuild stronger, an SBA loan might one lesson Stephanie has learned is affect your eligibility for the value in reaching out to others protecting your home or their program. In gen- for assistance and counsel. While her eral, recovery expenses brick-and-mortar restaurant was being business against future covered by insurance, rebuilt, she sold from a food truck. FEMA or other forms of When the restaurant was operational damage caused by a assistance may reduce again, she advertised that with the amount provided spray paint on the plywood covering disaster. For information by your SBA disaster the broken windows. Stephanie assistance loan. and her wife, Gabrie Vitori, rebuilt Cheeseburger Baby by depending on visit sba.gov/disaster. each other and SBA assistance. See their story on YouTube by searching for the 2019 Phoenix Award for Small Business Disaster Recovery. “You’ve got to have resiliency. You’ve got to swallow your pride sometimes,” Stephanie says. “But you also have to believe in your product.” Get Ready Benefit The Ready Business program, ready.gov/business, For Cheeseburger Baby, that product gives step-by-step guidance on how to prepare will continue satisfying the burger your business for a disaster. The series includes hankerings of locals, celebrities, and preparedness toolkits for earthquakes, hurricanes, tourists alike. Vitori sees expansion in her future—she’d like to have a brick- inland flooding, power outages, and severe winds/ and-mortar restaurant and food truck tornadoes. Spanish materials are available. in each growing town in South Florida. “My whole life is this. I’ve always felt a love for business ownership, ” Vitori says. “That drive keeps you going.”

40 DISASTER ASSISTANCE FUNDING PROGRAMS Getting Back to Business: Six essential preparedness steps for creating a continuity plan The financial and emotional cost of rebuilding a business after a disaster can be overwhelming. With a business continuity plan in place, you can recover more quickly.Your plan also puts you in a better position to contribute to the economic recovery of your community.

1 Establish a communications plan • Test your calling tree or communications list to reach employees to ensure they and their families are safe.

2 3 Protect your documents Review insurance coverage • Keep copies of vital business documents in a digital • Contact your insurance agent to find out if your coverage format or in an accessible, protected off-site location. is right for your business; make sure you understand the policy limits and deductibles. • Ask about business interruption insurance, which compensates you for lost income and covers operating expenses if your company has to temporarily shut down because of a disaster.

Establish a solid supply chain

• If your vendors and suppliers are local and the disaster is widespread, you will all be in the same situation— 4 struggling to recover. Put a disaster response plan in place to get key supplies from companies outside your area. Create a contact list of contractors and vendors you plan to use.

OPEN 5 6 Plan for an alternative location Practice your plan with your staff • Identify several places to relocate your operations in case Based on your location, assess your risk you must close your primary location for an extended time. for every type of emergency. • Consider creative options for available office space, including • Discuss as a group how your plan would be affected by sharing space and resources with other businesses. different types of disasters, such as an earthquake, tornado, • Allow employees to telecommute until your location reopens. flood, mudslight, or hurricane.

41 FUNDING PROGRAMS Surety Bonds SBA-backed surety bonds help small businesses succeed.

Eligible small businesses in the construction, supply, and service sectors better compete for contracting and subcontracting jobs using SBA-backed surety bonds.

How you benefit Surety bonds help small businesses receive the bonding assistance they need to win contracts by providing the customer with a guarantee the work will be completed.

How surety bonds work Many contracts require surety bonds, which are offered by surety companies. The SBA guarantee provides an incentive for surety companies to work with small businesses that would normally not be able to obtain the bond.

Is the program right for you? Small businesses that often come to the SBA for surety bonds: »» startups and firms in business less than three years

»» businesses with credit issues COURTESY OF AZTEC CONTRACTORS or internally prepared financial statements »» those who cannot secure bonding HOW THE SBA HELPED ME SUCCEED With SBA-backed surety bonds, Frank Spencer III has been able to better compete for through regular commercial commercial and government contracts. Aztec Contractors of El Paso, TX received the channels bonding support it needed to compete for construction contracts with the General »» subcontractors with a desire to Services Administration, U.S. Army Corps of Engineers, and the Mission and Installation establish their own bonding as a Contracting Command. Frank acquired Aztec in 2006 with no capital and only two prime contractor employees. Now he employs 25 full time and provides internship opportunities. Sales »» those wishing to increase their have grown to about $30 million annually. Aztec now qualifies for bonding in the current bonding limits standard surety market without SBA support.

42 FUNDING PROGRAMS

For all contracts and subcontracts up to $6.5 million, the SBA guarantees bid, payment, performance, and ancillary bonds issued by surety companies. For federal contracts up to $10 million, the SBA makes a guarantee if it’s in the best interest of the government.

The SBA reimburses surety companies in case of default 90% of losses sustained for veteran & service- disabled veteran, minority, 8(a), and HUBZone-certified small businesses; all projects up to $100,000 and 80% for all other small businesses.

Need a surety bond guarantee fast? For contracts under $400,000, the process is streamlined using the SBA’s QuickApp program. »» easy application »» no need to submit financials to the SBA »» online applications submitted to SBA authorized agents approved within hours

Ready to start? The SBA partners with 36 surety companies and hundreds of bonding agents. Find authorized agents at sba.gov/osg. Do you want to discuss the advantages of the SBA’s Surety Bond Guarantee program? Contact a bonding specialist:

Tamara E. Murray Kevin Valdes Jennifer C. Bledsoe Denver, CO Seattle, WA Washington, DC (303) 927-3479 (206) 553-7277 (202) 205-6153

43 CONTRACTING Doing Business with the Government

How I Did It COURTESY OF THE SBA Taking the Helm Jennifer Rahn steers Admiral Engineering and Manufacturing to success as a government subcontractor. written by Micaela Morrissette

44 CONTRACTING

Tips for CONTRACTING 5Success: Find a mentor. I had a great mentor in my company, and I reached for opportunity when it was in front of me.

Always move forward. The SBA has educational resources to improve your business know-how. To learn more about government contracting and SBA certification programs, call your local SBA district office or procurement center representative.

Compete smart. See if your company can use the SBA Subcontracting Network database, https://eweb1.sba.gov/ subnet/client/dsp_Landing.cfm. SubNet connects businesses with subcontractors & small businesses with contract opportunities. COURTESY OF THE SBA

Know your industry. ennifer Rahn was first said, laughing. I see everything; I have my hands in hired as an office assistant One of their largest clients, aero- everything. I don’t want to expand to at Phoenix, Arizona-based space and defense company L3 where I can’t do that anymore. Admiral Engineering and Technologies, nominated Admiral Manufacturing Co. Rising for the SBA Subcontractor of the to the top in a sector dominated by Year award. As a subcontractor for L3 Build a team. Jmen, Rahn’s career sounds a lot like Technologies, Rahn said she gets great Everybody feels like this is our work the classic American success story. She satisfaction from knowing soldiers family. My employees are as big a part got there with the help of a mentor and are able to communicate with their of my company as I am, so I make business growth earned as a federal leaders because of parts her company sure they know that. government subcontractor. has made. For 16 years, Rahn worked side-by- When Schlosser decided to retire, he side with then-owner David Schlosser, asked Rahn to purchase Admiral. major government contractors. She’s who became her mentor. Rahn says she “He did not want to sell to a corpo- grateful prime contractors have incen- learned “everything it takes to run a ration that would bring in their own tive to subcontract with small business, machine shop. I naturally just picked it people or end up foreclosing,” Rahn and that helps businesses like Admiral. up and wanted it.” says. “Then all your hard work is gone. Rahn has plans to grow, but not in The learning curve was steep— I agreed because it was everything I had the typical ways. She’s investing in Admiral specializes in complex spent my life working on, too.” replacing equipment, enhancing effi- machined parts for industries including In September 2017, she took over as ciency and productivity while leading aerospace and communications—and owner and president. Ownership tran- Admiral into new arenas like 3D print- Schlosser expected as much as he gave. sition poses a unique set of challenges. ing. Because of the stability provided “When I did something wrong, he told Rahn wanted to maintain relationships by being a government subcontractor, me, and I didn’t do that again,” Rahn with her existing clients, which include she’s able to do all of this.

45 CONTRACTING How to do business with the government

Identify your product or service number at Obtain a free DUNS number at 1 naics.com. 5 fedgov.dnb.com/webform. Search the FedBizOpps database (fbo.gov) to Register with the System for Award see if any federal agencies are looking for your Management (sam.gov) to start doing 2 product or service. 6 business with the government. Attend an SBA district office workshop on Are you eligible for SBA certification contracting. Visit sba.gov/localassistance programs? Read more about the 8(a), 3 to find your local office. 7 woman-owned small business, and HUBZone programs. Find out if you are Talk to a local Small Business Development eligible and upload all required documents Center counselor (see page 8) or visit a to certify.sba.gov. 4 Procurement Technical Assistance Program adviser. Find your closest center at aptac-us.org.

46 CONTRACTING

Government Contracting OPEN GovernmentIs it for you? Contracting Is it right for you? Government contracting a can a be a aaa valuable tool to grow a your small business, but it isn't for everyone. Complete the following readiness a assessment a to help you decide whether your company can successfully competea a for government contracts. a

oes e governmen by e re yo caabe o ng Confirm your answer to all rodc or servce a yo se a governmen conrac e.g. o e oowng time, staffing, and materials)? ∙ Is the majority owner(s) a U.S. citizen? ✓ Continue to question 2. ∙ Does your company have a place of ✓ Continue to question 3. business in the U.S.? ∙ Is your business organized for profit? overnmen conracng may ∙ Does your business generate revenue? no be or yo a s me. Your local SBA district office can e yo gage ram me and Continue to question 4. Start with your local SBA district oer acors a conrbe o ✓ office. If you can't identify at least governmen conracng sccess. ree edera agences a mg These are requirements for by wa yo se conracng mg arcaon n governmen no be rg or yo. conracng rograms.

o yo ave cas on and o o yo ave an acconng re yo cred wory rcase worng nveno sysem a rodces nanca ry needed saemens sc as ro and ✓ Continue to question 5. oss saemens baance sees ✓ Continue to question 7. and cas ow rojecons Visit an SBA Resource Partner or s on rearng yor cred. Talk to an SBA Lender about ✓ Continue to question 6. geng a ne o cred or a oan o Talk to an SBA Lender do bsness w e governmen. Before you get into government abo ow o bd cred. conracng mae sre yor acconng sysem s comabe with the government’s requirements.

o yo aready ave o yo now were o nd ae sre yo ave edera/sae/oca governmen conracng oornes ∙ a DUNS number conracng eerence ∙ the NAICS codes and size standards Continue to question 9. or yor ndsry ✓ ∙ SAM registration ✓ Continue to question 8. Ask an SBA business opportunity ✓ Continue below. If you don't yet have contracting secas or e. experience, you won't reap the full bene o oornes e e This is a requirement for 8(a) Business Development Program. arcaon n some governmen You can participate in the 8(a) conracng rograms. program once, so make sure it's the rg me or yo.

It sounds like you may be a good fit for government contracting! Visit your local SBA district oice or sba.gov/conracng for more information. 47 CONTRACTING SBA Certification Programs Your business could earn profit and gain valuable work experience by providing goods or services to the government.

Contracting certification programs are designed to help you better compete for and win federal contracts set aside for small businesses. Visit sba.gov/contracting to learn more about set-asides and whether one or more of these government certification programs is right for your business. To see if you are eligible and then certify as a woman-owned, HUBZone, 8(a), or All Small business, visit certify.sba.gov. 8(a) Business Development Program If you’re an entrepreneur who is socially or economically disadvantaged, you may be eligible to receive business training and government contracting assistance through the 8(a) Business Development Program, sba.gov/8a. It includes free business development education, training workshops, and match-making opportunities with federal buyers. Firms owned by Alaska Native , Indian tribes, Native Hawaiian organizations, and Community Development Corporations are also eligible for 8(a) business development assistance. To be eligible for the 8(a) program, your COURTESY OF THE SUNDANCE CONSULTING SUNDANCE THE OF COURTESY small business must: ◀ »» be owned and controlled by U.S. citizens HOW THE SBA HELPED ME SUCCEED who are socially and/or economically September Myres knew that becoming a government contractor would empower disadvantaged herself and other native peoples, while also growing her small business to the next level. She sought business development assistance from the SBA, qualifying for the »» demonstrate at least a two-year track record SBA 8(a) Business Development Program, which helps small disadvantaged businesses and have potential for continued success compete in the federal marketplace. This program helped September strategically »» have a net worth and adjusted gross grow her company to become a competitive force in the environmental services income of less than $250,000 and assets industry. Sundance Consulting of Pocatello, ID has won contracts from the Army Corps under $4 million of Engineers and the U.S. Forest Service. She has continually secured Department of Defense contracts to improve Native American lands adversely affected by past Socially disadvantaged: those subjected department activities. September often assists Native American tribes and Alaska to racial or ethnic prejudice or cultural bias Native villages with developing projects and community plans. without regard to their individual qualities American Indians, Alaska Natives, and native Hawaiians seeking entreprenurial because of their identity as members development training can start, grow, and expand their business with the help of of certain groups. The following groups the SBA, sba.gov/naa. The Office of Native American Affairs also consults with tribal often fit this status: Black Americans, governments prior to finalizing SBA policies affecting tribes. Native Americans, Alaska Natives, Native Hawaiians, Hispanic Americans, Asian 48 CONTRACTING

Pacific Americans, and Subcontinent Asian Americans. A person who is not An O'Fallon Casting Inc. employee at a member of one of these groups must work in O'Fallon, MO. Owner Vince Gimeno grew his business thanks to establish that it is more likely than expert SBA business counseling. not that he or she has suffered social disadvantage. Economically disadvantaged: those whose ability to compete in the marketplace has been impaired because they have not had as much capital and credit opportunities compared to others in the same or similar line of business. The benefits of the 8(a) program: »» You are assigned an SBA professional to help coordinate business development assistance. »» You could be awarded an 8(a) sole- source contract up to $4 million for goods and services, $7 million for manufacturing, exceptions apply.

What is an 8(a) sole-source contract? A direct awarding of a contract to an 8(a) small business that can provide the needed services. This is an accelerated process saving time for both you and the government agency or office. All Small Mentor-Protege Program Looking for an opportunity to partner with a more experienced firm for mentorship? That effort can be rewarded in the All Small Mentor-Protege Program, sba.gov/allsmallmpp. At the same time you’re gaining invaluable direction and and the protege. All Small-approved »» have at least 35% of your employees experience, you and your mentor can partnerships receive an exclusion of living in a HUBZone compete for government contracts, affiliation for contracting purposes. further growing your business. Service-Disabled To qualify for this program: HUBZone Veterans »» Proteges must have a mentor prior to Businesses located in Historically If you’re a service-disabled veteran looking applying for the program. Visit your Underutilized Business Zones, sba. to enter the federal marketplace, you local SBA office for guidance. Ask gov/hubzone, can gain special access may be eligible for this small business about the SBA’s Resource Partners and to federal contracts. To qualify for the certification. To determine your eligibility, the Procurement Technical Assistance certification, your small business must: contact a veterans business development Program for help in connecting you »» be owned and controlled by U.S. citizens, officer at your local SBA office, or the SBA’s with a mentor business. a Community Development Corporation, Office of Veterans Business Development, sba.gov/ovbd. After you have set up to do »» You must be certified as a small an agricultural cooperative, Indian tribal business with the government in sam.gov, business within your NAICS industry government, Alaska Native Corporation, update your status as a service-disabled classification naics.com( ). or a Native Hawaiian organization veteran business. Keep in mind, the SBA »» Mentors and proteges must be organized »» have a principal office located in a does not officially certify this designation, for profit or as an agricultural cooperative. HUBZone, which includes Indian so when a contract awarded based on reservations and military facilities closed »» Mentors cannot own more than 40% this eligibility is protested, the SBA will by the Base Realignment and Closure Act. equity in the protege’s business. determine if your business meets the Enter your address in our interactive map, eligibility status, ownership, and »» An SBA determination of affiliation maps.certify.sba.gov/hubzone/map, to control requirements. must not exist between the mentor see if you qualify.

49 CONTRACTING

By the Woman-Owned Small Numbers Business Certification The U.S. government is the Certified woman-owned businesses can more easily largest single purchaser of compete for government contracts. Here’s how to goods and services in the world. get certified: Every year it awards more than

$500 billion in 1. Make sure you’re eligible contracts. »» The business must be owned and controlled by one or more women who are Of those prime contracts, U.S. citizens. the federal government »» A woman must hold the highest officer position. must set aside 23% »» Women must manage the daily business operations on a full-time basis and for small businesses. Why types of conduct long-term decision making and planning.

small businesses benefit? To qualify as an economically disadvantaged woman-owned small business, • 5% are small & disadvantaged the business owner and/or manager must also meet certain income and • 5% are women owned requirements. Find out more at sba.gov/wosb. • 3% are HUBZone certified • 3% are service-disabled 2. Register veteran owned »» Register with the System for Award Management (sam.gov) to start doing business with the government.

3. Certify Get Expert »» Submit your free application and eligibility documents to certify.sba.gov, or obtain certification from one of the SBA’s approved third-party certifiers (which Contracting & costs a fee): Certification • El Paso Hispanic Chamber of Commerce Help • National Women Business Owners Corp. Federal contracting can be complex, • U.S. Women’s Chamber of Commerce but you don’t have to do it alone. A • Women’s Business Enterprise National Council Procurement Technical Assistance Center adviser can help you determine if your business is ready for government contracting. An adviser can also help 4. Update your status you register in the System for Award »» Update your status as a woman-owned small business in sam.gov. Management (sam.gov), and see if you’re eligible for any small business certifications and/or programs. One-on-one counseling is free or low 5. Search the database cost. Visit sba.gov/localassistance » Search the FedBizOpps database (fbo.gov) for your new business opportunity. to find your local SBA office or an SBA » You must receive your certification prior to submitting an offer on a contract set Resource Partner near you (see page 8). aside for a woman-owned small business.

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