MARYLAND 2019-2020 Small Business resource guide
GROW YOUR BUSINESS in maryland
1 2 CONTENTS Maryland Edition 2019-2020
Local Business Funding Assistance Programs
8 National Success Story 24 National Success Story Jerado and Joyce Reynolds Jennifer and Jeff Herbert’s know their local landscape for meadery has expanded into a entrepreneurship support. multimillion dollar enterprise thanks to SBA assistance. 11 Local SBA Resource Partners 27 SBA Lenders
12 10 Steps to Start 32 Financing 101 Your Business 33 Need Financing? Your Advocates 13 34 Go Global with 14 How to Start a Business International Trade
19 Opportunities for Veterans 36 R&D Opportunities for High Growth Startups 20 Entrepreneurial Opportunities 38 National Success Story Cheeseburger Baby owner 22 Write Your Business Plan Stephanie Vitori persevered through a financial storm and a natural disaster.
42 Surety Bonds
Contracting
44 National Success Story Jennifer Rahn steers the course 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 Chesapeake Bay, photo by Lenny Rogers from Pixabay; photo by David Mark from Pixabay; Main Street by Nikki Bowman 3 Let us help give voice to your story.
SCOPE OF SERVICES We have all heard the phrase “content is king.” Creating rich, engaging, and inspiring content differentiates your brand in the Brand Voice Catalogs marketplace. But who has time to focus on Articles Visitor Guides anything other than running their business? Narrative works with you to develop Blogs Books the tools to tell your story across all Website Content Copywriting media platforms. Powerful and authentic Social Media Posts Photography storytelling helps you stand out. It inspires Email Content Videos action. It creates an emotional impact and Brochures forges enduring relationships. It separates you from the competition.
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4 Small businesses power our economy.
The SBA powers small businesses.
Whether you dream of transforming your business idea into a thriving company, growing your customer base, or expanding into new markets or locations, the SBA is here for you. We offer programs, expertise, and access to capital that will empower you to take your small business to the next level of success.
Stop by your local SBA office or visit SBA.gov to learn how you can move your business forward with confidence.
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The U.S. Small Business Administration’s Office of Marketing & Customer Service directs the publication of the Small Business Resource Guide under SBA Contract #SBAHQ- 17-C-0018. SBA publication summer 2019 national edition #mcs-0089.
WRITER/EDITOR Becky Bosshart (202) 205-6677 [email protected]
DIRECTOR OF MARKETING Paula Panissidi Tavares [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 nondis- criminatory basis. Directory listings do not constitute or imply an endorsement by the SBA of any opinions, products, or services of any private individual or entity.
Printed in the United States of America.
While every reasonable effort has been made to ensure that the information con- tained 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 govern- ment, 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 SBA Baltimore District Office 100 S. Charles St., suite 1201 Baltimore, MD 21201 (410) 962-6195 sba.gov/md @SBA_Baltimore
District Director Lender Relations District Director Letter Stephen D. Umberger Specialists elcome to the 2020-2021 edition of the U.S. Small Business (410) 962-6195 Michael Collins Administration Maryland Small Business Resource Guide, [email protected] (410) 244-3341 covering the state of Maryland. The SBA helps make [email protected] Wthe American dream of small business ownership a reality. We are Deputy District Director the only federal agency dedicated to helping our 30 million small Edward Knox Lender Relations businesses start, grow, expand, or recover after a disaster. (410) 244-3326 Specialist To get started, visit an SBA office or one of our SBA Resource [email protected] Debra Brown Partners. Starting on pg. 9 you will find listings for free or (410) 244-3338 Public Information Officer/ low-cost business advisers, which includes Small Business [email protected] Economic Development Development Centers, SCORE mentors, Women’s Business Specialist Lead Business Opportunity Centers, and the Veterans Business Outreach Center. Interested Rachel Howard Specialist/8(a) in small business financing? Find out if SBA-backed financing is (410) 244-3337 Christine Kingston right for you by consulting with an SBA specialist at one of our [email protected] (410) 244-3336 partner lending institutions, listed in the green Funding Programs [email protected] section. This guide also details SBA disaster assistance loans District Counsel and SBA-backed loans exclusively for small business exporting. If Dawn DiBenedetto Business Opportunity you are interested in getting started in government contracting, (804) 253-8902 Specialists/8(a) read about SBA certifications and our business development [email protected] James Pope programs. SBA programs and services help you better compete in (410) 244-3335 the public marketplace. Loan Programs Lead [email protected] The SBA works with the U.S. Department of Agriculture and Sam Reprogel the Department of Housing and Urban Development to increase (410) 244-3325 Business Opportunity opportunities in rural communities and Opportunity Zones, which [email protected] Specialists/8(a) expand from our HUBZones, Historically Underutilized Business Zones. Austen Colledge Stay up to date on SBA events near you and get valuable local Lead Economic (410) 244-3353 business information by following us on Twitter at @SBA_Baltimore. Development Specialist/ [email protected] Register for email updates at sba.gov/updates. Use our Small Business Women’s Business Resource Guide to power your dream of starting, growing, or expanding Ownership Representative Business Opportunity your small business in Maryland. Tonia McCoy Specialists/8(a) (410) 244-3323 Justin Chen Sincerely, [email protected] (410) 244-3353 [email protected] Veterans Business Representative/Economic Business Opportunity Development Specialist Specialists/8(a) Stephen D. Umberger Courtney McCalla Laura Sheldon District Director (410) 244-3330 (410) 244-3377 [email protected] [email protected]
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 corporation 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 taxes. 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 businesses 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 revenues 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 Our Local SBA Resource Partners SBA’s Resource Partners are independent organizations funded through SBA cooperative agreements or grants. Small Business Development Centers Maryland SBDC Network marylandsbdc.org
Corridor Region SBDC We Work, 7761 Diamondback Drive College Park (301) 403-8300 or toll free (877) 787-7232
Southern Region SBDC College of Southern Maryland 8730 Mitchell Road, CE building Suite 139 Arthur and Sandra Johnson, owners LaPlata of 21 Short Stop in Georgia, received (301) 934-7583 assistance from their local Small Business Development Center and SCORE chapter. Eastern Region SBDC Franklin P. Perdue School of Business Mid-Shore Chapter 626 Salisbury University EC-215 SCORE Serving Talbot, Dorchester, Caroline, 215 Power Street Visit sba.gov/score to start working on Wicomico, Somerset, and Worcester counties Salisbury your business goals. Contact your local Call (410) 822-4653 for an appointment (410) 548-4419 office to schedule an appointment. [email protected] easternshorescore.org/chapter626 Northern Region SBDC Baltimore Chapter 3 midshore.score.org Harford Community College Serving Baltimore, Baltimore City, Harford, Bel Air Hall and Howard counties Southern Maryland Chapter 390 401 Thomas Run Road Call (410) 962-2233 for an appointment Serving Anne Arundel, Charles, St. Mary’s, Bel Air [email protected] and Calvert counties (443) 412-2237 greaterbaltimore.score.org Call (410) 266-9553 for an appointment [email protected] Western Region SBDC Mid Maryland Chapter 632 score390.org Frostburg State University Serving Frederick, Carroll, Washington, 235 Hitchens Allegany & Garrett counties Upper Shore Chapter 670 Frostburg Call (240) 215-4757 for an appointment Serving Queen Anne’s, Kent, and Cecil counties (888) 237-9007 x1 [email protected] Call (410) 810-2969 for an appointment frederick.score.org [email protected] uppershore.score.org 11 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 tax IDs. You’ll use your Employer Identification Number for important steps to start and grow your business, 8like opening a bank 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.
12 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 offices 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 13 LOCAL BUSINESS ASSISTANCE
Adriana Medina, owner of Fuerte Fitness, in Seattle, WA, received counseling from a SCORE mentor and a Women's
Business Center adviser. COURTESY OF THE SBA How to Start a Business in Maryland Thinking of starting a business? Here are the nuts & bolts.
The Startup Logistics choosing a site for your business. Contact the local business Even if you’re running a home-based business, you will have to license office where you plan to locate your business. You may not comply with many local, state, and federal regulations. Do not ignore be permitted to conduct business out of your home or engage in regulatory details. You may avoid some red tape in the beginning, but industrial activity in a retail district. your lack of compliance could become an obstacle as your business »» Maryland Open For Business grows. Taking the time to research regulations is as important as Maryland Business Express knowing your market. Carefully investigate the laws affecting your businessexpress.maryland.gov industry. Being out of compliance could leave you unprotected legally, »» Maryland State Board lead to expensive penalties, and jeopardize your business. 500 N. Calvert St. #401, Baltimore (410) 230-6220 Market Research dllr.state.md.us Need to do research on your clients and location? View consumer »» Health Related Occupations and business data for your area using the Census Business Department of Health & Mental Hygiene Builder: Small Business Edition, https://cbb.census.gov/sbe. 201 West Preston St., Baltimore Filter your search by business type and location to view data on (877) 463-3464 your potential customers, including consumer spending, and a dhmh.maryland.gov summary of existing businesses, available as a map and a report.
Business License & Zoning Name Registration Licenses are typically administered by a variety of state and local Register your business name with the county clerk where your departments. It is important to consider zoning regulations when business is located. If you’re a corporation, also register with the state.
14 LOCAL BUSINESS ASSISTANCE
An O’Fallon Casting Inc. employee at work in O’Fallon, MO. General Manager Vince Gimeno grew his business thanks to the Small Business Innovation
COURTESY OF THE SBA Research Program.
Taxes Verification Form I-9. The U.S. Citizenship and Immigration As a business owner, you should know your federal tax responsibilities Service offers information and assistance throughuscis.gov/i-9- and make business decisions to comply with certain tax requirements. central. For forms call (800) 870-3676. For the employer hotline 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 an Employer Identification Number, paying and filing income tax, in partnership with the Social Security Administration, virtual workshops, forms, and publications. electronically verifies the Social Security number and As the IRS continues to implement some of the Tax Cuts and employment eligibility information reported on Form I-9. It’s Jobs Act provisions, your tax obligations may change. Visit the the quickest way for employers to determine the employment eligibility of new hires. Visit , call (888) 464-4218 or Tax Reform Provisions that Affect Businesses page on irs.gov for e-verify.gov the latest tax reform updates that affect your bottom line. email [email protected]. »» State Taxes & Sales Tax Health & Safety Maryland Department of Assessments and Taxation All businesses with employees are required to comply with state 301 W. Preston St., room 809, Baltimore and federal regulations regarding the protection of employees, (410) 767-1184 or (888) 246-5941 visit dol.gov for information. The Occupational Safety and Health dat.maryland.gov Administration provides information on the specific health and safety standards used by the U.S. Department of Labor. Call Social Security (800) 321-6742 or visit osha.gov. If you have any employees, including officers of a corporation All new or rehired employees must be reported to the but not the sole proprietor or partners, you must make periodic Maryland New Hire Registry, (888) 634-4737, mdnewhire.com. payments, and/or file quarterly reports about payroll taxes and »» Maryland OSHA other mandatory deductions. You can contact the IRS or the 10946 Golden West Drive #160, Hunt Valley Social Security Administration for information, assistance, and (410) 527-4499 forms, at (800) 772-1213 or visit socialsecurity.gov/employer. dllr.state.md.us/labor/mosh You can file W-2s online or verify job seekers through the Social Security Number Verification Service. Employee Insurance Check with your state laws to see if you are required to Employment Eligibility Verification provide unemployment or workers’ compensation insurance The Federal Immigration Reform and Control Act of 1986 requires for your employees. For health insurance options, call the employers to verify employment eligibility of new employees. Small Business Health Options Program at (800) 706-7893 or The law obligates an employer to process Employment Eligibility visit healthcare.gov/small-businesses/employers.
15 LOCAL BUSINESS ASSISTANCE
Department of Labor Association Health Plans allow small businesses, including self-employed workers, to band together by geography or industry to obtain health care coverage as if they were a single large employer. For information, visit dol.gov/general/topic/association-health-plans. »» Unemployment Insurance (410) 949-0033 or (800) 492-5524 dllr.maryland.gov Environmental Regulations State assistance is available for small businesses that must comply with environmental regulations under the Clean Air Act. State Small Business Environmental Assistance programs provide free and confidential assistance to help small business owners understand and comply with complex environmental regulations and permitting requirements. These state programs can help businesses reduce emissions at the source, often reducing regulatory burden and saving you money. To learn more about these free services visit nationalsbeap.org/states/list. »» Maryland Department of the Environment 1800 Washington Blvd., Baltimore (410) 537-3000 mde.maryland.gov
Accessibility and ADA Compliance For assistance with the Americans with Disabilities Act, call the ADA Center at (800) 949-4232 or the Department of Justice at (800) 514-0301. Direct questions about accessible design and the Reeves Clippard used the business ADA standards to the U.S. Access Board at (800) 872-2253, TTY knowledge he acquired in the SBA (800) 993-2822, [email protected] or visit access-board.gov. Emerging Leaders program to grow A/R Solar in Seattle, WA. COURTESY OF THE SBA
Child Support A patent for an invention is the grant of a property right to an Employers are essential to the success of the child support inventor, issued by the U.S. patent office. The right conferred by program and are responsible for collecting 75% of support the patent grant is the right to exclude others from making, using, nationwide through payroll deductions. The Office of Child offering for sale, or selling the invention in the United States or Support Enforcement at Health and Human Services offers importing the invention into the country. For information visit employers step-by-step instructions for processing income uspto.gov/inventors. withholding orders for child support. Download the fact sheet There are three types of patents: about the Employer’s Role in the Child Support Program at the • Utility patents may be granted to anyone who invents or Office of Child Support Enforcement’s website at acf.hhs.gov/ discovers any new and useful process, machine, manufacture, programs/css > employer responsibilities. You can also find or composition of matter, or any new and useful improvement. information about other employer responsibilities and tools that can make meeting those responsibilities easier, such as electronic • Design patents may be granted to anyone who invents a new, income withholding orders and the Child Support Portal. Send original, and ornamental design for an article of manufacture. questions to [email protected]. • Plant patents may be granted to anyone who invents or discovers and asexually reproduces any distinct and new Intellectual Property variety of plant, other than a tuber propagated plant or a plant Patents, trademarks, and copyrights are types of intellectual found in an uncultivated state. property that serve to protect creations and innovations. A trademark or service mark includes any word, name, symbol, The United States Patent and Trademark Office is the federal device, or any combination, used or intended to be used to identify agency that grants U.S. patents and registers trademarks. For and distinguish the goods/services of one seller or provider from information and resources about U.S. patents and federally those of others and to indicate the source of the goods/services. registered trademarks consult uspto.gov. Call the patent and Trademarks and service marks may be registered at both the trademark office help center at (800) 786-9199 or visit your state and federal level. The U.S. Patent and Trademark Office nearest office: only registers federal trademarks and service marks. Federally »» U.S. Patent and Trademark headquarters in Alexandria, Virginia registered trademarks may conflict with and supersede those registered only at the state level. Visit uspto.gov/trademarks. 16 LOCAL BUSINESS ASSISTANCE
»» Maryland Registration of Trademarks Caroline County Greater Severna Park & Arnold 16 Francis St., Annapolis (410) 479-4638 (410) 647-3900 (410) 974-5521 x2 carolinechamber.org gspacc.com sos.state.md.us Carroll County Hagerstown-Washington County Copyrights protect original works of (410) 848-9050 (301) 739-2015 authorship including literary, dramatic, carrollcountychamber.org hagerstown.org musical and artistic, and certain other intellectual works. Copyrights do not Cecil County Hancock protect facts, ideas, and systems, (410) 392-3833 (301) 678-5900 although they may protect the way cecilchamber.com hancockmd.com they are expressed. For general information contact: Central Maryland Harford County (301) 725-4000 (410) 838-2020 »» U.S. Copyright Office bwcc.org harfordchamber.org U.S. Library of Congress Charles County Havre de Grace James Madison Memorial Building (301) 932-6500 or (301) 870-3089 (410) 939-3303 101 Independence Ave. SE charlescountychamber.org hdgchamber.com Washington, DC (202) 707-3000 or toll free (877) 476-0778 Chesapeake Gateway Howard County copyright.gov (443) 317-8763 (410) 730-4111 chesapeakechamber.org howardchamber.com
Chambers of Crisfield Hunt Valley Business Forum Commerce (410) 968-2500 or (800) 782-3913 (443) 834-2918 crisfieldchamber.com hvbf.org Aberdeen (410) 272-2580 Dorchester County Kent County aberdeencc.com (410) 228-3575 (410) 810-2968 dorchesterchamber.org kentchamber.org Allegany County (301) 722-2820 Dundalk Maryland alleganycountychamber.com (410) 284-3700 (410) 269-0642 Dundalkchamber.com mdchamber.org Anne Arundel County (410) 266-3960 Elkton Alliance Inc. Maryland Hispanic Chamber aaaccc.org (410) 398-5076 (443) 620-0165 elktonalliance.org mdhcc.org Baltimore City (410) 837-7101 Frederick County Maryland LGBT baltimorecitychamber.org (301) 662-4164 (443) 384-7855 frederickchamber.org mdlgbt.org Baltimore County (410) 825-6200 Garrett County Northern Anne Arundel baltcountychamber.com (301) 387-4386 (410) 766-8282 visitdeepcreek.com naaccc.com Baltimore Hispanic Chamber (443) 200-0055 Greater Baltimore Black Chamber North East bhcc.us (443) 424-2201 (410) 287-2658 greaterbaltimorechamber.com northeastchamber.org Berlin (410) 641-4775 Greater Baltimore Committee Northwest berlinchamber.org (410) 727-2820 (410) 702-7073 gbc.org northwestchambermd.com BWI Business Partnership (410) 859-1000 Greater Catonsville Ocean City bwipartner.org (410) 719-9609 (410) 213-0552 catonsville.org oceancity.org Calvert County (410) 535-2577 Greater Crofton Ocean Pines calvertchamber.org (410) 721-9131 (410) 641-5306 croftonchamber.com oceanpineschamber.org
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Pikesville Owings Mills Region Housing Development & Revitalization Garrett County (410) 484-2337 Housing developers and small businesses in (301) 334-1921 pomchamber.org locally designated revitalization areas can gcedonline.com access financial assistance and tax credits Pocomoke City Harford County by contacting the Maryland Department (410) 957-1919 (410) 638-3059 pocomoke.com of Housing & Community Development, harfordbusiness.org (301) 429-7400. Visit dhcd.maryland.gov. Princess Anne Funds are available for those who protect Howard County (410) 651-2961 and enhance historic resources, as well as (410) 313-6500 townofprincessanne.com maintain and improve existing residential hceda.org Queen Anne’s County and commercial structures. Kent County (410) 643-8530 Tech Seed Capital (410) 778-4600 qacchamber.com Emerging tech companies looking to kentcounty.com/economic-development Reisterstown/Owings Mills/Glyndon connect with federal laboratories, research Queen Anne’s County (410) 702-7073 universities, and business incubators (410) 604-2100 romgchamber.com can receive guidance from the Maryland qac.org Technology Development Corp., (410) Salisbury Area St. Mary’s County 740-9442. Visit marylandtedco.org. It’s (410) 749-0144 (301) 475-4200 Maryland’s leading investor of seed capital, salisburyarea.com stmarysmd.com/ded while also providing entrepreneurial Snow Hill business assistance. Somerset County (410) 632-0809 Maryland Development Agencies (410) 651-0500 snowhillareachamber.com somersetcountyedc.org Allegany County Southern Anne Arundel (301) 777-5967 Talbot County (410) 867-3129 alleganyworks.org (410) 770-8058 southcounty.org talbotcountymd.gov Anne Arundel County St. Mary’s (410) 222-7410 Hagerstown-Washington County (301) 737-3001 aaedc.org (240) 313-2280 smcchamber.com Baltimore City hagerstownedc.org Talbot County (410) 837-9305 Salisbury-Wicomico County (410) 822-4653 baltimoredevelopment.com (410) 749-1251 talbotchamber.org Baltimore County swed.org Taneytown (410) 887-8000 Worcester County (410) 756-4234 baltimorecountymd.gov (410) 632-3112 taneytownchamber.org Calvert County co.worcester.md.us (410) 535-4583 Towson co.cal.md.us (410) 825-1144 Small Business towsonchamber.com Caroline County (410) 479-4188 Resource West Anne Arundel carolinebusiness.com (410) 672-3422 Centers Carroll County westcountychamber.org Serving Baltimore City (410) 386-2070 (443) 451-7160 carrollbiz.org Economic 3000 Druid Park Drive, Baltimore Cecil County Counseling by appointment Development (410) 996-6292 cecilcounty.us/ecdev Serving Baltimore County State Assistance (410) 825-6200 Business Incentives Charles County baltcountychamber.com/small- (301) 885-1340 For help with expanding in Maryland, and business-resource-center.html meetcharlescounty.com incentives to stay or relocate, contact the SCORE & SBDC by appointment Maryland Department of Commerce, (410) Dorchester County 767-6300 or (888) 246-6736. The office (410) 228-0155 Serving Howard County also provides workforce training grants choosedorchester.org Maryland Center for Entrepreneurship and programs and export assistance. Visit 9250 Bendix Road North, Columbia Frederick County commerce.maryland.gov. (410) 313-6550 (301) 600-1058 discoverfrederickmd.com SCORE & SBDC by appointment
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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 loans. 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 line of credit 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 entrepreneurship 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 employment 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 65. 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 19 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.
20 SBA Regional Innovation Clusters
Autonomous & Unmanned Systems Cluster – Emerging Tech Ventures Integrative Business Services Inc. (Industry focus: Optics) The Ozarks Cluster – Startup Junkie (Industry focus: Food processing, supply Great Plains Technology & chain, & logistics) Manufacturing Cluster
The Water Council Cluster Montana Bioscience Cluster – Montana Technology Enterprise Center Marine Industry Science & Technology Cluster AgLaunch Initiative BioSTL: St. Louis Biosciences Cluster Utah Advanced Material Oklahoma-South Kansas Unmanned Aeri- Manufacturing Initiative al Systems Cluster Defense Alliance - LSI Business The Appalachian Ohio Wood Products Cluster Development Inc. (Industry focus: Advanced Power and Energy) Conductor RIC in Healthcare, Education & Data/Decision Sciences – Startup Junkie Consulting 21 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 partnership, or if you're a plan-template contains key points on only one page. sole proprietor or limited liability company.
22 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 Partnerships ❒ 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 assets include staff, capital, or intellectual efits your customers and the product lifecycle. 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 equity 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 revenue 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 loan. 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.
23 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 24 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.
25 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.
26 FUNDING PROGRAMS
SBAThese participating SBA Lenders serve Lenders all Maryland unless otherwise noted. Contact the lender for information.
ALLEGANY COUNTY Revere Bank BALTIMORE COUNTY Chessie Federal Credit Union Scott Nicholson (301) 841-9519 Columbia Bank/Fulton Bank NA Jack Hughes (301) 777-1781 reverebank.com Debbie Goldberg (410) 427-3576 x16776 chessiefcu.org thecolumbiabank.com Old Line Bank First Peoples Community FCU (800) 617-7511 Chesapeake Bank of Maryland Charles Croft (301) 784-3001 oldlinebank.com Rob Thompson (410) 665-7600 firstpeoples.com chesapeakebank.com Sandy Spring Bank Standard Bank PaSB John Walker (301) 289-3596 Essex Bank Dave Matthews (301) 729-3738 sandyspringbank.com Bryan LePage (410) 721-8427 standardbankpa.com essexbank.com Severn Savings Bank (410) 260-2000 Farmers & Merchants Bank ANNE ARUNDEL COUNTY severnbank.com Cheryl Lewis (410) 833-6600 Anne Arundel Economic farmersandmerchantsbk.com Development Corp. TD Bank Hamilton Federal Bank Stephen Primosch (410) 222-7410 Zainab Khan (410) 522-2390 hamiltonfsb.com aaedc.org tdbank.com Harbor Bank Bank of Glen Burnie BALTIMORE CITY Sandra Workman (443) 923-0573 Andy Hines (410) 863-7134 theharborbank.com thebankofglenburnie.com Columbia Bank/Fulton Bank NA Debbie Goldberg (410) 427-3576 x16776 Howard Bank thecolumbiabank.com Columbia Bank/Fulton Bank NA Rosa Scharf (410) 988-1574 Debbie Goldberg (410) 427-3576 x16776 howardbank.com thecolumbiabank.com Chesapeake Bank of Maryland Rob Thompson (410) 665-7600 Revere Bank Chesapeake Bank of Maryland chesapeakebank.com Scott Nicholson (301) 841-9519 Rob Thompson (410) 665-7600 reverebank.com chesapeakebank.com Colombo Bank Bill Linsao (410) 685-4611 Old Line Bank Community Bank of the Chesapeake colombobank.com (800) 617-7511 Greg Cockerman (240) 427-1032 oldlinebank.com cbtc.com Hamilton Federal Bank hamiltonfsb.com Point Breeze Credit Union Essex Bank Michelle Wells (443) 589-0442 Harbor Bank Bryan LePage (410) 721-8427 pbcu.com essexbank.com Sandra Workman (443) 923-0573 theharborbank.com Shore United First Citizens Bank & Trust Co. Heather Bacher (410) 490-3285 Howard Bank Chris Johnson (410) 571-2790 shoreunitedbank.com firstcitizens.com Rosa Scharf (410) 988-1574 howardbank.com TD Bank Hamilton Federal Bank Zainab Khan (410) 522-2390 hamiltonfsb.com Old Line Bank tdbank.com (800) 617-7511 Howard Bank oldlinebank.com Rosa Scharf (410) 988-1574 CALVERT COUNTY howardbank.com TD Bank Cedar Point FCU Zainab Khan (410) 522-2390 Rose Latham (301) 884-4074 tdbank.com cpfcu.com
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Community Bank of the Chesapeake Howard Bank First Peoples Community FCU Greg Cockerman (240) 427-1032 Rosa Scharf (410) 988-1574 Charles Croft (301) 784-3001 cbtc.com howardbank.com firstpeoples.com
Sona Bank Marie Leibson (800) 403-3851 CHARLES COUNTY HARFORD COUNTY sonabank.com Community Bank of the Chesapeake Cecil Bank Greg Cockerman (240) 427-1032 Tom Aheam (410) 398-1650 cbtc.com cecilbank.com CAROLINE COUNTY 1880 Bank Chesapeake Bank of Maryland Kevin Moran (410) 819-0300 DORCHESTER COUNTY Rob Thompson (410) 665-7600 1880bank.com 1880 Bank chesapeakebank.com Kevin Moran (410) 819-0300 Provident State Bank 1880bank.com Fidelity Bank (410) 673-2401 Darren Davis (404) 759-9287 providentstatebank.com Hebron Savings Bank lionbank.com Mark Sewell (410) 860-4884 Queenstown Bank hebronsavingsbank.com First United Bank & Trust (410) 827-8881 Josh Bosley (301) 533-2304 queenstownbank.com Provident State Bank mybankfirstunited.com (410) 673-2401 Shore United providentstatebank.com Freedom Federal Credit Union Heather Bacher (410) 490-3285 (800) 440-4120 shoreunitedbank.com Shore United freedomfcu.org Heather Bacher (410) 490-3285 shoreunitedbank.com Harford Bank CARROLL COUNTY Mary Ann Bogarty (410) 838-7001 Carroll Community Bank harfordbank.com George Peck (410) 795-1900 FREDERICK COUNTY https://www.carrollcobank.com First United Bank & Trust Howard Bank Josh Bosley (301) 533-2304 Rosa Scharf (410) 988-1574 Farmers & Merchants Bank mybankfirstunited.com howardbank.com Cheryl Lewis (410) 833-6600 farmersandmerchantsbk.com Frederick County Bank Old Line Bank Harry Weetenkamp (240) 529-1568 (800) 617-7511 Fidelity Bank https://www.fcbmd.com oldlinebank.com Darren Davis (404) 759-9287 lionbank.com Revere Bank Point Breeze Credit Union Scott Nicholson (301) 841-9519 Michelle Wells (443) 589-0442 Old Line Bank reverebank.com pbcu.com (800) 617-7511 oldlinebank.com Old Line Bank TD Bank (800) 617-7511 Zainab Khan (410) 522-2390 Point Breeze Credit Union oldlinebank.com tdbank.com Michelle Wells (443) 589-0442 pbcu.com Sandy Spring Bank John Walker (301) 289-3596 HOWARD COUNTY Sandy Spring Bank sandyspringbank.com Columbia Bank/Fulton Bank NA John Walker (301) 289-3596 Debbie Goldberg (410) 427-3576 x16776 sandyspringbank.com Woodsboro Bank thecolumbiabank.com Charles Reeder (301) 898-4786 woodsborobank.com Hamilton Federal Bank CECIL COUNTY hamiltonfsb.com Cecil Bank Tom Aheam (410) 398-1650 GARRETT COUNTY Howard Bank cecilbank.com Clear Mountain Bank Rosa Scharf (410) 988-1574 (304) 379-2111 howardbank.com Harford Bank clearmountainbank.com Mary Ann Bogarty (410) 838-7001 Revere Bank harfordbank.com First United Bank & Trust Scott Nicholson (301) 841-9519 Josh Bosley (301) 533-2304 reverebank.com mybankfirstunited.com
28 FUNDING PROGRAMS
Old Line Bank Revere Bank Shore United (800) 617-7511 Scott Nicholson (301) 841-9519 Heather Bacher (410) 490-3285 oldlinebank.com reverebank.com shoreunitedbank.com
Sandy Spring Bank Old Line Bank John Walker (301) 289-3596 (800) 617-7511 WASHINGTON COUNTY sandyspringbank.com oldlinebank.com Bulldog Federal Credit Union David Barrett (301) 797-6318 Shore United Prince George’s Community FCU bdfcu.com Heather Bacher (410) 490-3285 Diane Brown (301) 627-2666 shoreunitedbank.com princegeorgescfcu.org First United Bank & Trust Josh Bosley (301) 533-2304 Sandy Spring Bank mybankfirstunited.com KENT COUNTY John Walker (301) 289-3596 Shore United sandyspringbank.com Heather Bacher (410) 490-3285 WICOMICO COUNTY shoreunitedbank.com Sona Bank Bank of Delmarva Marie Leibson (800) 403-3851 Carl Cottingham (410) 548-1706 sonabank.com bankofdelmarvahb.com MONTGOMERY COUNTY Eagle Bank TD Bank Union Bank & Trust John Baier (240) 406-1883 Zainab Khan (410) 522-2390 Bob Stanley (757) 934-6384 eaglebankcorp.com tdbank.com bankatunion.com
Essex Bank Bryan LePage (410) 721-8427 QUEEN ANNE’S COUNTY WORCESTER COUNTY essexbank.com Queenstown Bank Bank of Delmarva (410) 827-8881 Carl Cottingham (410) 548-1706 Revere Bank queenstownbank.com bankofdelmarvahb.com Scott Nicholson (301) 841-9519 reverebank.com Shore United Bank of Ocean City Heather Bacher (410) 490-3285 Earl Conley (410) 524-6144 National Institutes of Health FCU shoreunitedbank.com bankofoceancity.com (301) 718-0208 nihfcu.org Calvin B. Taylor Bank SOMERSET COUNTY (410) 641-1700 Old Line Bank Hebron Savings Bank taylorbank.com (800) 617-7511 Mark Sewell (410) 860-4884 oldlinebank.com hebronsavingsbank.com Hebron Savings Bank Mark Sewell (410) 860-4884 Sandy Spring Bank hebronsavingsbank.com John Walker (301) 289-3596 ST. MARY’S COUNTY sandyspringbank.com Cedar Point FCU Union Bank & Trust Rose Latham (301) 863-7071 Bob Stanley (757) 934-6384 Sona Bank cpfcu.com bankatunion.com Marie Leibson (800) 403-3851 sonabank.com Community Bank of the Chesapeake Greg Cockerman (240) 427-1032 STATEWIDE LENDERS TD Bank cbtc.com Access National Bank Zainab Khan (410) 522-2390 Chad Ludwig (703) 871-7358 tdbank.com accessnationalbank.com TALBOT COUNTY 1880 Bank American Spirit Bank PRINCE GEORGE’S Kevin Moran (410) 819-0300 (302) 464-4067 Essex Bank 1880bank.com americanspirit.org Bryan LePage (410) 721-8427 essexbank.com Provident State Bank Atlantic Capital Bank (410) 673-2401 (410) 458-5546 Money One FCU providentstatebank.com atlanticcapitalbank.com Bradford May (301) 925-4600 moneyonefcu.org Queenstown Bank Bancorp Bank (410) 827-8881 Hetal Engineer (407) 758-3926 queenstownbank.com thebancorp.com
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Bank of America First Financial Bank Noah Bank John Golsen (240) 994-9369 Jeff Magginnis (317) 237-1588 (215) 424-5100 bankofamerica.com bankatfirst.com noahbank.com
BankUnited NA First Foundation Bank Northwest Savings Bank Scott Gillman (757) 625-1033 Dena Tapia (510) 914-1318 John Byrne (410) 581-9831 bankunited.com ff-inc.com northwestsavingsbank.com
BB&T First Home Bank Nymeo Mary Brodowski (410) 255-9737 Tom Zernick (727) 399-5680 Kerry Smith (240) 436-4027 bbt.com firsthomebank.com nymeo.org
BBVA Compass Bank First National Bank of Pennsylvania Pacific City Bank (888) 273-5363 Michael Byers (919) 881-1666 (213) 355-8828 compassweb.com fnb-online.com paccitybank.com
BNB Hana Bank Hana Small Business Lending Pacific Western Bank (800) 887-1589 Daniel Kim (571) 765-6053 George Harrop (301) 272-3710 bnbbank.com hanasba.com capitalsource.com
Beneficial Bank Hanmi Bank Peoples Bank of Cordorus Valley Larry Frank (215) 526-9217 Anna Chung (213) 427-3164 Tammy Clark-McFadden (717) 724-8847 thebeneficial.com hanmi.com peoplesbanknet.com
Berkshire Bank/44 Business Capital Home Loan Investment Bank PNC Bank Jeff Peisach (410) 356-2442 (877) 337-3757 Albert Szydlowski (410) 768-2018 44businesscapital.com homeloanbank.com pnc.com
Borrego Springs Bank Independence Bank Radius Bank Fred Crispen (866) 644-0042 Chip Pride (270) 696-1776 Anina Butler (617) 782-7336 borregospringsbank.com 1776bank.com radiusbank.com
CRF Small Business Loan Co. Industrial Bank Republic Bank & Trust Brian Burke (303) 870-9795 Douglas Dillon (202) 722-2000 x3121 (888) 584-3600 crfusa.com industrial-bank.com republicbank.com
Capital One JPMorgan Chase Bank NA Sona Bank Joanie Kreger (240) 283-0409 (888) 536-3722 Marie Leibson (800) 403-3851 capitalone.com chase.com sonabank.com
Capital Source Bank Legence Bank Spirit of Texas Bank George Harrop (301) 272-3710 Ryan Beckemeyer (618) 297-9859 Bobby Williamson (979) 846-8000 Capitalsource.com legencebank.com spiritoftexasbank.com
Celtic Bank Live Oak Bank State Employees Credit Union Benjamin Smith (801) 320-6548 JP Blevins (910) 796-1674 x1334 Gene Pryor (410) 487-7347 celticbank.com liveoakbank.com secumd.org
Commonwealth Business Bank Local Initiatives Support Corp. Stearns Bank NA (323) 988-3000 Mary Los (708) 610-8011 Brett Hucka (320) 852-4216 cbb-bank.com newmarkets.org stearnsbank.com
Compass Bank M&T Bank SunTrust Bank (800) 266-7277 Craig Engelhaupt (410) 964-6827 (410) 986-1676 bbvacompass.com mtb.com suntrust.com
Crestmark Bank Milestone Bank Superior Financial Group Steve Gross (248) 267-5925 (267) 327-4910 (877) 675-0500 crestmark.com milestonebank.com superiorfg.com
First Bank Financial Centre Newtek Small Business Finance Inc. United Community Bank Ross Kohl (262) 560-2065 Robert Rauch (855) 763-9835 x10426 Brett Comerford (423) 368-2470 fbfcwi.com newtekbusinessservices.com ucbi.com
30 FUNDING PROGRAMS
United Midwest Savings Bank Business Finance Group Maryland Capital Enterprises Andrew Shato (800) 626-2913 Gerald Baroudi (410) 774-4979 (410) 546-1900 umwsb.com businessfinancegroup.org marylandcapital.org
Wells Fargo Bank NA Chesapeake Business Finance Corp. Niraj Mehta (301) 938-2491 John Sower (202) 625-4373 wellsfargo.com chesapeake504.com Participating Wilmington Savings Fund Society FSC First (302) 792-6000 Shelly Gross-Wade (301) 883-6900 Microlenders wsfsbank.com fscfirst.com Accion East Melissa Roberts (617) 616-1549 World Trade Finance Inc. accionusa.org Brian Rush (312) 443-8508 world-trade-finance.com Community ECDC Enterprise Development Group Eric Loewe (703) 685-0510 Advantage entdevgroup.org Participating Latino Economic Development Corp. Lenders Alejandro Arizaga (443) 708-7054 Certified Business Finance Group ledcmetro.org Gerald Baroudi (410) 774-4979 businessfinancegroup.org Life Asset Inc. Development Markus Larsson (202) 549-6118 FSC First lifeasset.org Companies Shelly Gross-Wade (301) 883-6900 fscfirst.com Maryland Capital Enterprises 504 Capital Corp. Kirk Lingle (410) 546-1900 (757) 623-2691 Latino Economic Development Corp. marylandcapital.org 504capital.com Leda Hernandez (202) 588-5102 ledcmetro.org
31 FUNDING PROGRAMS Financing 101
1 What do you need funding for?
• Start or purchase a business
• Purchase, renovate or expand facilities
• Purchase inventory, equipment or machinery I need investors. I need to research and I’m bidding on a develop a business idea contract that requires • Revolving credit/working for commercialization. me to be bonded. capital for day-to-day expenses Look into SBICs. Research the SBIR Ask for information on • Export a product or service or STTR programs. SBA surety bonds.
2 Do you need help with your business plan or loan package? If so, SBA Resource Partners can help. Find a list at your local SBA district office.
3 Now that you have your business plan and Be prepared to discuss: loan package ready, contact an SBA Lender • size and purpose of your loan to see if you qualify. There are two options... • how long your business has operated • your credit history Check out Lender Match Visit your local SBA district office • collateral A. (sba.gov/lendermatch) to B. for a list of find an SBA Lenders who may local SBA Lenders. • financial projections specialize in your industry or • technical assistance/ type of project. mentoring needs
CDC BANK
OPEN 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 COURTESY OF THE SBA ◀
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 (855) delivering content in seven languages, generating millions of website page views. 722-4877 or email your contact EarthQuaker owners Julie Robbins & Jamie Stillman developed their global information and trade issue to marketing strategy and multilingual promo materials with the SBA State Trade Expansion [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 Technology Transfer 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 FUNDING PROGRAMS
›› National Oceanic and Atmospheric Administration »» Department of Defense »» Department of Education Investment Capital »» Department of Energy Looking for investors? For mature, profitable busi- nesses with sufficient cash flow to pay interest, a Small »» Department of Health and Human Services Business Investment Company can help scale up your »» Department of Homeland Security small business. »» Department of Transportation »» Environmental Protection Agency How an SBIC works Investment companies with financing expertise in »» NASA certain industry sectors receive SBA-guaranteed loans, »» National Science Foundation which means the federal government is responsible in Visit sbir.gov to find funding opportunities and helpful program case of default. These investment companies then use tutorials, as well as past award winners, such as Qualcomm, the SBA-guaranteed capital and private funds to invest iRobot, Illumina, and Symantec. in qualifying small businesses. Each SBIC has its own investment profile in terms of targeted industry, geogra- SBIR Road Tour phy, company maturity, the types and size of financing Visit sbirroadtour.com to learn about national events they provide. connecting entrepreneurs working on advanced tech to the country’s largest source of early stage funding. Each SBIR Road To be eligible Tour stop introduces participating federal agency program The majority of your employees and assets must be within managers, who oversee over 5,000 new awards annually. the United States. Some ineligible small businesses and Southwest U.S. stops in Arizona, Texas, New Mexico, and activities include relenders, real estate, project financing, Colorado are planned for mid-August. Eastern stops in Vermont, and foreign investment. New York, New Jersey, Pennsylvania, and Maryland are planned Visit sba.gov and click on Funding Program and then for mid-September. The road tour stops in Miami and Puerto Investment Capital. Rico in November.
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 assistance may reduce again, she advertised that with damage caused by a the amount provided spray paint on the plywood covering by your SBA disaster the broken windows. Stephanie disaster. For information 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 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 Small businesses power our economy. Ready to start? The SBA partners with 36 surety companies The SBA and hundreds of bonding agents. Find powers authorized agents at sba.gov/osg. Do you want to discuss the advantages of small the SBA’s Surety Bond Guarantee program? Contact a bonding specialist: businesses.
Tamara E. Murray Denver, CO, (303) 927-3479 Whether you dream of transforming your business idea into a thriving company, growing your customer base, or expanding into new Kevin Valdes markets or locations, the SBA is here for you. Seattle, WA, (206) 553-7277 We offer programs, expertise, and access to capital that will empower you to take your small business to the next level of success. Jennifer C. Bledsoe Stop by your local SBA office or visit SBA.gov Washington, DC, (202) 205-6153 to learn how you can move your business forward with confidence.
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 1 Identify your product or service number at naics.com.
Search the FedBizOpps database (fbo.gov) to see if any federal 2 agencies are looking for your product or service.
Attend an SBA district office workshop on contracting. Visit sba. 3 gov/localassistance to find your local office. Talk to a local Small Business Development Center counselor (see page 8) or visit a Procurement Technical Assistance Program 4 adviser. Find your closest center at aptac-us.org. 5 Obtain a free DUNS number at fedgov.dnb.com/webform.
Register with the System for Award Management 6 (sam.gov) to start doing business with the government. Are you eligible for SBA certification programs? Read more about the 8(a), woman-owned small business, and HUBZone programs. Find out if you are eligible and upload all required documents to 7 certify.sba.gov.
46 CONTRACTING
Government Contracting OPEN GovernmentIs it for you? Contracting Is it right for you? Government contracting a can a be a a a a 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 compete a a for government contracts. a
Confirm your answer to all 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? ∙ Does your business generate revenue? Your local SBA district office can - Continue to question 4. Start with your local SBA district ✓ office. If you can't identify at least These are requirements for
- ✓ Continue to question 5. ✓ Continue to question 7. Visit an SBA Resource Partner Talk to an SBA Lender about ✓ Continue to question 6. Talk to an SBA Lender Before you get into government with the government’s requirements.
∙ a DUNS number ∙ the NAICS codes and size standards Continue to question 9. ✓ ∙ SAM registration ✓ Continue to question 8. Ask an SBA business opportunity ✓ Continue below. If you don't yet have contracting experience, you won't reap the full This is a requirement for 8(a) Business Development Program. You can participate in the 8(a) program once, so make sure it's the
It sounds like you may be a good fit for government contracting! Visit your local SBA district office or 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.
Socially disadvantaged: those subjected HOW THE SBA HELPED to racial or ethnic prejudice or cultural bias ME SUCCEED without regard to their individual qualities September Myres knew that becoming a because of their identity as members government contractor would empower herself of certain groups. The following groups and other native peoples, while also growing often fit this status: Black Americans, her small business to the next level. She sought Native Americans, Alaska Natives, Native business development assistance from the SBA, Hawaiians, Hispanic Americans, Asian qualifying for the SBA 8(a) Business Development Pacific Americans, and Subcontinent Asian Program, which helps small disadvantaged Americans. A person who is not a member businesses compete in the federal marketplace. of one of these groups must establish that This program helped September strategically it is more likely than not that he or she has grow her company to become a competitive force suffered social disadvantage. in the environmental services industry. Sundance Economically disadvantaged: those whose Consulting of Pocatello, ID has won contracts ability to compete in the marketplace has from the Army Corps of Engineers and the U.S. been impaired because they have not had Forest Service. She has continually secured as much capital and credit opportunities Department of Defense contracts to improve compared to others in the same or similar Native American lands adversely affected by past line of business. department activities. September often assists The benefits of the 8(a) program: Native American tribes and Alaska Native villages with developing projects and community plans. »» You are assigned an SBA professional to American Indians, Alaska Natives, and native help coordinate business development Hawaiians seeking entreprenurial development assistance. training can start, grow, and expand their »» You could be awarded an 8(a) sole-source business with the help of the SBA, sba.gov/ contract up to $4 million for goods and naa. The Office of Native American Affairs services, $7 million for manufacturing,
COURTESY OF THE SUNDANCE CONSULTING SUNDANCE THE OF COURTESY also consults with tribal governments prior to exceptions apply. finalizing SBA policies affecting tribes. 8(a) small business that can provide the needed services. This is an accelerated process saving time for both you and the Contracting certification programs are education, training workshops, and government agency or office. designed to help you better compete match-making opportunities with federal for and win federal contracts set aside buyers. Firms owned by Alaska Native All Small Mentor-Protege for small businesses. Visit sba.gov/ Corporations, Indian tribes, Native Program contracting to learn more about set- Hawaiian organizations, and Community Looking for an opportunity to partner with asides and whether one or more of these Development Corporations are also a more experienced firm for mentorship? government certification programs is right eligible for 8(a) business development That effort can be rewarded in the All for your business. To see if you are eligible assistance. Small Mentor-Protege Program, sba.gov/ and then certify as a woman-owned, To be eligible for the 8(a) program, your allsmallmpp. At the same time you’re gaining HUBZone, 8(a), or All Small business, visit small business must: invaluable direction and experience, you and certify.sba.gov. »» be owned and controlled by U.S. citizens your mentor can compete for government who are socially and/or economically contracts, further growing your business. 8(a) Business To qualify for this program: Development Program disadvantaged If you’re an entrepreneur who is socially »» demonstrate at least a two-year track »» Proteges must have a mentor prior to or economically disadvantaged, you record and have potential for continued applying for the program. Visit your local may be eligible to receive business success SBA office for guidance. Ask about the SBA’s Resource Partners and the Procurement training and government contracting » have a net worth and adjusted gross » Technical Assistance Program for help in assistance through the 8(a) Business income of less than $250,000 and assets connecting you with a mentor business. Development Program, sba.gov/8a. under $4 million It includes free business development 48 CONTRACTING
»» You must be certified as a small business within your NAICS industry classification (naics.com). Women-Owned Small Business »» Mentors and proteges must be organized for profit or as an agricultural Certification cooperative. If you're a woman proprietor looking to sell to the federal »» Mentors cannot own more than 40% government, you may be eligible for the Women-Owned Small equity in the protege’s business. Business certification, sba.gov/wosb. »» An SBA determination of affiliation must not exist between the mentor and the Here’s how to get certified: protege. All Small-approved partnerships receive an exclusion of affiliation for contracting purposes. 1. Make sure you’re eligible
HUBZone • Your business must be at least 51 percent owned and controlled by one or more Businesses located in Historically women who are U.S. citizens. The ownership must be direct and unconditional. Underutilized Business Zones, sba.gov/ • A woman must hold the highest officer position and have managerial experience hubzone, can gain special access to federal required to run the business. contracts. To qualify for the certification, your small business must: • One or more women must manage the daily business operations on a full-time basis and conduct long-term decision making and planning. »» be owned and controlled by U.S. citizens, a Community Development Corporation, To qualify as an economically disadvantaged woman-owned small business, your an agricultural cooperative, Indian tribal company must meet these criteria and the business owner and/or manager must government, Alaska Native Corporation, meet certain income and asset requirements. or a Native Hawaiian organization »» have a principal office located in a HUBZone, which includes Indian reservations and military facilities closed 2. Register by the Base Realignment and Closure Act. Enter your address in our interactive map, • Register with the System for Award Management (sam.gov) to start doing busi- maps.certify.sba.gov/hubzone/map, to ness with the government. see if you qualify. » have at least 35% of your employees » 3. Certify living in a HUBZone Self-certify as a woman-owned small business or an economically disadvantaged Service-Disabled woman-owned small business for free, or obtain certification from one of the SBA’s Veterans approved third-party certifiers (which costs a fee): If you’re a service-disabled veteran looking to enter the federal marketplace, you • El Paso Hispanic Chamber of Commerce may be eligible for this small business • National Women Business Owners Corporation certification. To determine your eligibility, • U.S. Women’s Chamber of Commerce contact a veterans business development officer at your local SBA office, or the SBA’s • Women’s Business Enterprise National Council Office of Veterans Business Development, All required documents must be uploaded to certify.sba.gov prior to submitting sba.gov/ovbd. After you have set up to do an offer on a contract set aside for the program. business with the government in sam.gov, update your status as a service-disabled veteran business. Keep in mind, the SBA 4. Update your status does not officially certify this designation, so when a contract awarded based on • Update your status as a woman-owned small business in sam.gov. this eligibility is protested, the SBA will determine if your business meets the eligibility status, ownership, and 5. Search the database control requirements. • Search the FedBizOpps database (fbo.gov) for your new business opportunity.
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An O’Fallon Casting Inc. employee at work in O’Fallon, MO. Owner Vince Gimeno grew his business thanks to Get Expert expert SBA business counseling. Contracting & Certification Help Federal contracting can be complex, but you don’t have to do it alone. A Procurement Technical Assistance Center adviser can help you determine if your business is ready for government contracting. An adviser can also help you register in the System for Award 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 cost. Visit sba.gov/ localassistance to find your local SBA office or an SBA Resource Partner near you (see page 8). Maryland PTAC Headquarters 7100 Baltimore Ave., suite 303 College Park (301) 403-2740 Visit mdptac.org to find your nearest location.
By the Numbers The U.S. government is the largest single purchaser of goods and services in the world. Every year it awards more than $500 billion in contracts. Of those prime contracts, the federal government must set aside 23 percent for small businesses. This includes: • 5 percent for small disadvantaged businesses • 5 percent for women-owned small businesses • 3 percent for HUBZone- certified small businesses • 3 percent for service-disabled veteran-owned small businesses
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