SOUTH BUSINESS SMALL SMALL RESOURCE

Taking Advantage of What the SBA has to Offer page 34 Counseling PAGE 8 Capital PAGE 17 Contracting PAGE 35

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Staff President/CEO content2013-2014 SOUTH FLORIDA Joe Jensen [email protected] English/Spanish Small Business Resource FEATURES Advertising Nicky Roberts [email protected] 4 Introduction 34 Feature Article Martha Theriault [email protected] 4 Administrator’s Message Taking Advantage of What the Kenna Rogers [email protected] 6 District Director’s Letter SBA has to Offer Production Diane Traylor [email protected] 8 Counseling 35 Contracting Getting Help to Start Up, Market Applying for Government and Manage Your Business Contracts SBA’s Marketing Offce: 8 SBA Resource Partners 35 How Government Contracting The Small Business Resource Guide is published under the direction of SBA’s Offce of Marketing and 12 SBA’s Online Tools and Works Customer Service. Training 36 SBA Contracting Programs 13 Reaching Underserved 39 Getting Started in Contracting Director of Marketing Communities Paula Panissidi 15 Are You Right for Small 40 Disaster Assistance [email protected] Business Ownership? Knowing the Types of Assistance 16 Writing a Business Plan Available for Recovery Graphic Design Gary Shellehamer [email protected] 17 Capital 42 Advocacy and Ombudsman Financing Options to Start or Watching Out for Small Business Grow Your Business Interests SBA’s participation in this publication is not an endorsement of the views, opinions, products or 17 SBA Business services of the contractor or any advertiser or other 18 What to Take to the Lender 43 Additional Resources participant appearing herein. All SBA programs 28 Surety Bond Guarantee Taking Care of Start Up Logistics and services are extended to the public on a nondiscriminatory basis. Program 46 Business Organization: 28 Small Business Investment Choosing your Structure Printed in the United States of America Company Program While every reasonable effort has been made 29 Small Business Innovation 47 Other Assistance to ensure that the information contained herein Research Program is accurate as of the date of publication, the information is subject to change without notice. 29 Small Business Technology 49 Lender Listing The contractor that publishes this guide, the federal Transfer Program government, or agents thereof shall not be held 31 SBA Program Chart liable for any damages arising from the use of or reliance on the information contained in this 33 SBA Lenders Program Chart publication.

SBA Publication # MCS-0018 On the Cover: Lil Anderson, owner and founder, sits in her This publication is provided under SBA Contract business, the popular Nosh # SBAHQ05C0014. Wine Lounge in Omaha, Nebraska.

2 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida At 1st Manatee, we take pride in being a locally owned community offering a complete line of banking services.

There are a lot of banking choices available to both the consumer and commercial client. At 1st Manatee, we provide a high level of customer service that will make your choice an easy one.

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tst Manatee Bank Your HomEfown Community Bank The U.S. Small Business Administration FROM THE ADMINISTRATOR At SBA we are focused on we have something to offer, or some way to making sure entrepreneurs assist each and every small business owner and small business owners across the country. are able to take advantage of the tools, resources and We have worked hard over the past three programs that we offer. The years to streamline and simplify our country’s 28 million small programs so we can better serve the small frms today create two out business community. And we are proud of every three private sector jobs. And it is of the improved, effcient programs and our mission to make sure we are helping as initiatives that have resulted. We are now many of those small businesses as possible shifting our focus to make sure that all to grow and create jobs. small businesses and entrepreneurs can beneft from the tools and resources we have This year we had our second consecutive available. record year of delivering more than $30 billion in loan guarantees. We also I encourage anyone who is interested in counseled over one million current and starting a business or who currently owns a aspiring entrepreneurs, assisted families small business to immediately contact their and businesses affected by Hurricane Sandy local SBA District Offce and fnd out which through our disaster operation, and worked of SBA’s programs and resources can help across the federal government to drive your company grow and create jobs. Or, approximately $100 billion in government check out our wide range of tools on contracts into the hands of small businesses. SBA.gov and fnd local SBA resources in your area. But we also know there are more entrepreneurs and small businesses out there Sincerely, that could use our help. I hope that this guide allows some of the small businesses we have not yet reached to take advantage of Karen G. Mills the tools we offer at SBA. I am confdent that Administrator U.S. Small Business Administration

About the SBA www.sba.gov SBA offers help in the following areas: • Counseling Your Small Business Resource • Capital • Contracting • Disaster Assistance Every year, the U.S. Small Business Administration and its nationwide • Advocacy and the Ombudsman network of partners help millions of potential and current small business owners start, grow and succeed. Visit SBA online at www.sba.gov for 24/7 access to small business news, information and training for entrepreneurs. Resources and programs targeting small businesses provide an advantage necessary to help small businesses compete effectively in All SBA programs and services are provided on a nondiscriminatory the marketplace and strengthen the overall U.S. economy. basis.

4 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida OVER FIFTY PERCENT OF THE NATION'S SMALL BUSINESSES ARE HOME-BASED

Start small.

With over 17,000 resource listings across the country, we provide you with door-to-door directions to lenders, Smatt ·· .. , 3 training, and support that will help you start your own www.smallbusiness3.com small business. Message From The District Director SOUTH FLORIDA SBA Staff Listing We Are Here www.sba.gov/southforida

Telephone Numbers: To Help You Main Reception Desk: 305-536-5521, Ext. 102 or 0 Toll Free: 800-733-2894, Ext. 1 Fax Numbers: ou are now reading the one As your business grows, I hope you will use Main: 305-536-5058 publication I am certain will have the many no-cost, high-quality programs and Lender Relations: 305-536-5579 a tremendous impact on the services SBA offers to small business owners. Executive Direction: 305-536-7566 success of your entrepreneurial Our resource partners, SCORE--Counselors NAME EXT. DEPT. experience. Thank you for this to America’s Small Business, the Florida Brooks, James 104 Public Affairs Specialist Yopportunity to introduce you to the U.S. Small Business Development Center Network Campbell, Jeffery 156 Asst. District Director/8(a) Small Business Administration’s financial, (FSBDCN), and the Women’s Business Carrion, Gwen 130 8(a) Business Opp. Spec. procurement and technical assistance Centers, counseled and trained thousands of Davis, Tina 117 Administrative Offcer programs and services in South Florida. people last year. Our programs have proven Estevez, Manuel 110 Program Support Asst./ SBA has one goal: to help entrepreneurs value. I hope you will include SBA in your Lender Relations start and expand successful businesses. The plans for success. Gonzalez, Miguel 141 Asst. District Director/ SBA is a federal agency chartered by the Contact us today and find out how we Lender Relations U.S. Congress to preserve and stimulate free can assist you. Additionally, the SBA’s Harris, Althea 152 Assistant District enterprise in order to maintain and strengthen Website, www.sba.gov is a great source for Director/M&O Area 1 the national economy. Our objective is clear valuable online resources as well as for more Hein, Jonel 147 Deputy District Director and we take our responsibilities very seriously. information about who we are and what Horner, Eve 139 8(a) Business Opp. Spec. Please take the time to acquaint yourself with we do. Keep a copy of the 2014 South Johnson, Ralph 132 District Support Asst./ SBA’s services and use them to ensure your Florida Small Business Resource Guide Admin. Services success in business. handy and share the information with other Marrero, Francisco (Pancho) 118 District Director The South Florida Small Business Resource entrepreneurs. I wish you success. Negroni, Jose 154 Lender Relations Spec. Guide provides practical information and Perez-Velazquez, Maritza 102 District Support lists resources that will help you start and Asst./Admin. Services build your business. Through our resource Sincerely, Prenter, Kim 142 Lender Relations partners, SBA can help you develop a viable Specialist

Suarez, Aimee 131 8(a) Business Opp. Spec. business plan, obtain financing on competitive Velasco, Frank 122 8(a) Business Opp. Spec. terms, or develop a marketing strategy for Francisco “Pancho” A. Marrero your product or service in the national and Ft. Pierce AWS Site (Area 2) international market place. District Director of LoPresti, Vincent 772-466-1944 Asst. District Director/ SBA’s South Florida District Office M&O Area 2

Tampa AWS Site (Area 3) Chavarria, Robert 813-228-2100 ext. 24 Assistant District Director/M&O Area 3 South Florida District Counties Long, Charles 813-228-2104 ext. 27 Lead Economic Brevard Manatee Development Specialist Broward Martin Co-Located SBA Employees Charlotte Miami-Dade Barbeite, Javier 112 Field Information Tech. Specialist Collier Monroe Braverman, Richard 136 District Attorney DeSoto Okeechobee Cook, Linda 124 Team Leader, Litigation Glades Osceola Unit Giddens, Traci 115 Program Analyst, OSBDC Hardee Palm Beach Goldman, Audrey 114 Attorney, Litigation Unit Hendry Pasco Nirk, Scott 158 Procurement Center Rep. Highlands Pinellas Rosenfeld, Susan 111 District Counsel Hillsborough Polk Indian River St. Lucie Lee Sarasota

6 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida The SBA helps business owners grow and expand Doing Business in South Florida their businesses every day.

THE SOUTH FLORIDA DISTRICT OFFICE Development Centers (SBDC) and The South Florida District Office is Women’s Business Centers (WBC). They SUCCESS STORY also conduct high-quality training events responsible for the delivery of SBA’s Woman Small Business many programs and services. The throughout the district; some require a District Director is Francisco “Pancho” nominal registration fee. Owner Finds Success A. Marrero. The District Office is located Through Fashion and at 100 S. Biscayne Boulevard, 7th Floor, Assistance to businesses owned and Travel Miami, FL. Office hours are from 8:00 controlled by socially and economically AM until 4:30 PM, Monday through disadvantaged individuals is available Friday, except Federal Holidays. through the Business Development Program. CONTACTING THE SOUTH FLORIDA When she graduated from West Virginia A Women’s Business Ownership University (WVU) with a degree in business DISTRICT OFFICE in 2002, Anu Madan was undecided what the Representative is available to assist For program and service information, next step in her life was. women business owners. Please contact It turned out the next step was onto a flight please contact the Information Desk at Vincent LoPresti at 772-466-1944 or to Spain.

305-536-5521 ext. 102. e-mail: [email protected]. “I didn’t know what to do so I traveled to Spain to study Spanish,” said Madan, SERVICES AVAILABLE Special loan programs are available for the owner of Anukshah, an Indian-inspired resort and beachwear clothing wholesaler. Financial assistance for new and businesses involved in international “I love to travel and I fell in love with Spain existing businesses is available through trade. For more information please when I spent a summer in Europe as part of a guaranteed loans made by area bank and contact Mary Hernandez at 305-526-7425 business school exchange program at WVU.” non-bank lenders. ext. 21 or e-mail: Madan said her parents ran their own small [email protected] business accounting firm near her alma mater Free counseling, advice and information but she wasn’t decided on entering the world of small business quite then. A Veterans Affairs Officer is available on starting, better operating or expanding Though she mastered Spanish, the a small business is available through to assist veterans. Please contact James European adventure didn’t lead to any SCORE-- Counselors to America’s Brooks at 305-536-5521 ext. 104 or e-mail: serendipitous revelations on a lifetime pursuit. Small Business, Florida Small Business [email protected]. She returned to the U.S. and moved to Palm Beach, Fla. where she had family. “I enrolled in the Art Institute of Fort Lauderdale (AIFL) because I always loved 2 Alternate Work Sites: fashion. I never studied it but it was something I had a passion in.” We Welcome Your U.S. Small Business Administration Little did Anu know but her education, love Questions 501 E. Kennedy Boulevard, Suite 210 of travel and fashion, and family connections Tampa, FL 33602 were all pointing her way to the successful South Florida District Office business she has today. “My parents had their own accounting 100 S. Biscayne Boulevard, 7th Floor Tel: 813-228-2100 Fax: 813-228-2114 company and my father often times gave me Miami, FL 33131-2011 advice. He saw what I was studying and took me to India to meet with his relatives who ran Tel: 305-536-5521 Fax: 305-536-5058 U.S. Small Business Administration their own clothing businesses. My parents 505 South 2nd Street, Suite 225 came from there and I hadn’t visited since I Website: www.sba.gov/southflorida Fort Pierce, FL 34950 was a young child. After about a week, he left and I stayed where I learned about dyeing and beading.” Tel: 772-466-1944 Fax: 772-466-6580 When she returned from India, Anu said she began selling Indian clothes and accessories at AIFL. She’d bring in jewelry and clothing from her family connections Service Area 1 / Miami in India and sell them to students as well as Counties served: Broward, Collier, Hendry, Lee, Miami-Dade and Monroe. faculty at student art fairs. It was then she realized this was something she not only enjoyed but more importantly, could be a Service Area 2 / Ft. Pierce AWS small business idea she’d enjoy pursuing. Counties served: Brevard, Glades, Highlands, Indian River, Martin, Okeechobee, Osceola, “It was fun and I saw people were Palm Beach and St. Lucie. interested in the clothing and accessories I was selling. But I did not have the knowledge to sell in bulk.” Service Area 3 / Tampa AWS Anu decided then to learn the wholesale Counties served: Charlotte, Desoto, Hardee, Hillsborough, Manatee, Pasco, Pinellas, Polk clothing business through experience. “I got a job with a t-shirt manufacturer and Sarasota. for Wal-Mart,” said Madan. “I was a project continued on page 10

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 7 COUNSELING Getting Help to Start Up, Market and Manage Your Business

Found in more than 350 offices and 800 locations throughout the country, SCORE provides key services – both face-to-face and online – to busy entrepreneurs who are just getting started or in need of a seasoned business professional as a sounding board for their existing business. As members of your community, SCORE mentors understand local business COUNSELING licensing rules, economic conditions and important networks. SCORE can help you as they have done for more than 10 million clients by: • Matching your specific needs with a business mentor • Traveling to your place of business for an on-site evaluation • Teaming with several SCORE mentors to provide you with tailored assistance in a number of business very year, the U.S. Small through over 900 Small Business areas Business Administration Development Centers, 110 Womens’ Across the country, SCORE offers and its nationwide network Business Centers and 350 SCORE more than 10,000 local business of resource partners help chapters. These professionals can help training workshops and seminars millions of potential and with writing a formal business plan, ranging in topic and scope depending Eexisting small business owners start, locating sources of financial assistance, on the needs of the local business grow and succeed. managing and expanding your business, community such as offering an Whether your target market is global finding opportunities to sell your goods introduction to the fundamentals of or just your neighborhood, the SBA and or services to the government, and a business plan, managing cash flow its resource partners can help at every recovering from disaster. To find your and marketing your business. For stage of turning your entrepreneurial local district office or SBA resource established businesses, SCORE offers dream into a thriving business. partner, visit www.sba.gov/sba-direct. more in-depth training in areas like If you’re just starting out, the SBA customer service, hiring practices and and its resources can help you with home-based businesses. business and financing plans. If you’re SCORE SCORE is a national network of more For around-the-clock business advice already in business, you can use than 13,000 entrepreneurs, business and information on the latest trends go the SBA’s resources to help manage leaders and executives who volunteer as and expand your business, obtain to the SCORE website (www.score.org). mentors to America’s small businesses. government contracts, recover from More than 1,200 online mentors with SCORE leverages decades of experience disaster, find foreign markets, and over 800 business skill sets answer your from seasoned business professionals make your voice heard in the federal questions about starting and running a to help small businesses start, grow government. business. In fiscal year 2012, SCORE companies and create jobs in local You can access SBA information at mentors served 460,000 entrepreneurs. communities. SCORE does this by For information on SCORE and to get www.sba.gov or visit one of our local harnessing the passion and knowledge your own business mentor, visit offices for assistance. of individuals who have owned and managed their own businesses and www.sba.gov/score, go to www.SCORE.org SBA’S RESOURCE want to share this “real world” expertise or call 1-800-634-0245 for the SCORE PARTNERS with you. office nearest you. In addition to our district offices which serve every state and territory, the SBA • You get to be your own boss. works with a variety of local resource partners to meet your small business ON THE UPSIDE • Hard work and long hours directly benefit you, needs: SCORE chapters, Small Business rather than increasing profits for someone else. Development Centers (SBDCs), and It’s true, there are a lot of Women’s Business Centers (WBCs). reasons not to start your • Earnings and growth potential are unlimited. This partner network reaches into own business. But for the communities across America: More right person, the advantages • Running a business will provide endless than 13,000 business counselors, of business ownership far variety, challenge and opportunities to learn. mentors and trainers available outweigh the risks.

8 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida Area 1 – SCORE Chapters Treasure Coast SCORE #308 fulfilling its mission of creating jobs. Broward, Collier, Hendry, Lee, 3220 U.S. Hwy. 1, Ste. 2 The Small Business Development Miami-Dade, Monroe Ft. Pierce, FL 34982 Centers, vital to SBA’s entrepreneurial 772-489-0548 • 772-489-9548 Fax outreach, have been providing Miami-Dade/Monroe SCORE #29 [email protected] service to small businesses for 175 S.W. 7th St., Ste. 1921 http://treasurecoast.score.org more than 30 years. It is one of the Miami, FL 33130 largest professional small business 786-425-9119 Space Coast SCORE #400 management and technical assistance COUNSELING [email protected] Melbourne Professional Complex networks in the nation. With over 900 http://miamidade.score.org 1600 Sarno Rd., Ste. 205 Counties served: Miami-Dade & Monroe Melbourne, FL 32935 locations across the country, SBDCs 321-254-2288 • 321-254-2288 Fax offer existing and future entrepreneurs Broward County SCORE #17 [email protected] free one-on-one expert business advice 299 E. Broward Blvd., Rm. 123 www.spacecoastscore.org and low-cost training by qualified small Ft. Lauderdale, FL 33301 business professionals to existing and 954-356-7263 • 954-356-7145 Fax Area 3 – SCORE Chapters future entrepreneurs. [email protected] Charlotte, DeSoto, Hardee, Hillsborough, In addition to its core services, http://broward.score.org Manatee, Pasco, Pinellas, Polk, Sarasota the SBDCs offer special focus areas Counties served: Broward such as green business technology, Pinellas/Suncoast SCORE #115 disaster recovery and preparedness, South Broward/North Miami Airport Business Center #311 international trade assistance, veteran’s SCORE #235 4707 140th Ave. N. assistance, technology transfer and 6565 Taft St., Ste. 403 Clearwater, FL 33762 regulatory compliance. Hollywood, FL 33024 727-532-6800 • 727-532-6800 Fax 954-966-8415 • 954-966-2313 Fax [email protected] The program combines a unique [email protected] http://pinellascounty.score.org combination of federal, state and private http://southbroward.score.org sector resources to provide, in every Counties served: South Broward & North Manasota SCORE #116 state and territory, the foundation Miami-Dade 2801 Fruitville Rd., #280 for the economic growth of small Sarasota, FL 34237 businesses. The return on investment is Naples/Collier SCORE #573 941-955-1029 • 941-955-5581 Fax demonstrated by the program’s success Fifth Third Bank Bldg. [email protected] during 2012 900 Goodlette Rd. N. http://manasota.score.org • Assisted more than 14,300 Naples, FL 34102 entrepreneurs to start new 239-430-0081 • 239-430-0082 Fax SCORE #122 businesses – equating to nearly 40 [email protected] 5410 S. Florida Ave., #3 new business starts per day. http://naples.score.org Lakeland, FL 33813 • Provided counseling services to Counties served: Collier & Monroe 863-619-5783 more than 111,000 emerging http://centralforida.score.org Southwest Florida SCORE Chapter #219 entrepreneurs and over 101,000 Social Security Bldg. Hillsborough SCORE #203 existing businesses. 3650 Colonial Blvd., Ste. 231 Corp. Square - Bldg. 400, #425 • Provided training services to Fort Myers, FL 33966 7402 N. 56th St. approximately 332,000 clients. 239-489-2935 • 239-489-1170 Fax Tampa, FL 33617 The efficacy of the SBDC program [email protected] 813-988-1435 • 813-914-4027 Fax has been validated by a nationwide http://southwestforida.score.org [email protected] impact study. Of the clients surveyed, Counties served: Lee www.tampascore.org more than 80 percent reported that the business assistance they received from Area 2 – SCORE Chapters Charlotte/Desoto SCORE #318 Brevard, Glades, Highlands, Indian River, 1777 Tamiami Tr., Ste. 411 the SBDC counselor was worthwhile. Martin, Okeechobee, Osceola, Palm Beach, Port Charlotte, FL 33948 Similarly, more than 70 percent St. Lucie 941-743-6179 reported that SBDC guidance was http://portcharlotte.score.org beneficial in making the decision to South Palm Beach County SCORE #412 start a business. More than 40 percent 7999 N. Federal Hwy., Ste. 201 Pasco/Hernando County SCORE #439 of long-term clients, those receiving five Boca Raton, FL 33487 6014 U.S. Hwy. 19, #302 hours or more of counseling, reported 561-981-5180 • 561-981-5391 Fax New Port Richey, FL 34652 an increase in sales and 38 percent [email protected] 727-842-4638 • 727-842-4766 Fax www.scoresouthforida.net [email protected] reported an increase in profit margins. http://pascohernando.score.org For information on the SBDC Palm Beach SCORE #224 program, visit www.sba.gov/sbdc. 500 Australian Ave. S., Ste. 115 West Palm Beach, FL 33401 SMALL BUSINESS *Less than 40 hours per week 561-833-1672 • 561-833-1470 Fax DEVELOPMENT CENTERS State Offce [email protected] The U.S. Small Business http://palmbeach.score.org 11000 University Pkwy., Bldg. 8 Counties served: Palm Beach Administration’s Small Business Pensacola, FL 32514-5732 Development Centers (SBDC) mission 850-473-7800 is to build, sustain, and grow small www.FloridaSBDC.org businesses; as well as to promote small business development and enhance local economies by creating businesses and

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 9 FSBDC at the University of Central FSBDC at Pinellas County Economic FSBDC at Florida Gulf Coast University Florida Development CLI, Lutgert COB Kissimmee/Osceola County COC 13805 58th St. N., Ste. 1-200 Unit 2320, 10501 FGCU Blvd. S. 1425 E. Vine St. Clearwater, FL 33760-3716 Fort Myers, FL 33965-6502 Kissimmee, FL 34744-3621 727-453-7200 239-745-3700 407-847-2452 www.SBDCtampabay.com www.sbdc.fgcu.edu www.sbdcorlando.com FSBDC at the University of South Florida FSBDC at Florida Gulf Coast University FSBDC at Eastern Florida State College South Florida Community College 1020 Cultural Park Blvd., Unit 3 3865 N. Wickham Rd., Rm. 117, Bldg. 10 600 W College Dr., Bldg. T Cape Coral, FL 33990-6502 Melbourne, FL 32935-2310 Avon Park, FL 33825-9356 239-573-2737 321-433-5570 863-784-7378 www.sbdc.fgcu.edu www.easternforida.edu www.southforida.edu/sbdc * FSBDC at Florida Gulf Coast University FSBDC at the University of South Florida FSBDC at State College of Florida, 2702 Tamiami Tr. 1101 Channelside Dr., Ste. 210 Manatee-Sarasota Port Charlotte, FL 33952-5129 Tampa, FL 33602-3613 Business Resource Center 941-627-2222 COUNSELING 813-905-5800 8000 Tamiami Tr. S. www.sbdc.fgcu.edu www.SBDCtampabay.com Venice, FL 34293-5113 941-408-1412 FSBDC at Indian River State College FSBDC at Hillsborough County www.scf.edu/sbdc 3209 Virginia Ave., Bldg. E., Rm. 123 7402 N. 56th St., Bldg. 400, Ste. 425 Fort Pierce, FL 34981-5541 Tampa, FL 33617-7743 FSBDC at State College of Florida, 772-462-7296 or 888-283-1177 813-914-4028 Manatee-Sarasota www.irscbiz.com www.SBDCtampabay.com Lakewood Ranch 7131 Professional Pkwy. E. * FSBDC at Indian River State College * FSBDC at the University of South Florida Sarasota, FL 34240-8453 2400 S.E. Salerno Rd. Donald R. Tapia School of Business 941-363-7219 Stuart, FL 34997-6505 33701 SR 52 www.scf.edu/sbdc 772-419-5694 Saint Leo, FL 33574 www.irscbiz.com 888-929-2221 www.SBDCtampabay.com

SUCCESS STORY Woman Small Business Owner Finds Success continued from page 7

manager and took care of their sourcing for “I started by walking into stores and asking Three years later, the Anukshah clothing their clothing. That gave me experience and them if they would buy my Indian-inspired line is carried in recognized shops at Walt insight into the wholesale clothing business.” women’s clothing and accessories. I found Disney World resort as well as the Marriott Though it might seem Madan’s experiences some buyers and many who didn’t buy my and Hilton hotel. Anu says she isn’t and passions were incrementally transforming clothing gave me contacts to other people and done expanding her business yet and is her into a small business owner, she found shops to talk to. I listened to their advice and investigating other ways to go using SBA as a assistance and an ally in the U.S. Small found more buyers. I started using student springboard. Business Administration. Madan found interns from a nearby language school where “I’m interested in expanding my business sound advice from the Miami SCORE chapter I taught part time, to help me out. In 2008, throughout the Caribbean by exports. I’ve and took a couple free workshops to broaden I went to my first trade shows in New York spoken to an SBA representative at the U.S. her entrepreneurial skills. and Las Vegas.” Export Assistance Center who has sent me “I took a couple free workshops and talked But no sooner as Anukshah started to some information that I want to read and to the instructors who were either owned or grow, Anu met a challenge face-to-face consider. SBA has touched my business at managed their own businesses. It was a great which she had no control over: the economic every step of its growth.” resource for me.” downturn that hit south Florida and the Anu Madan combined her love for But like the small business owners she met nation, hard. travel, fashion and family background into as volunteer SCORE counselors, her father “I was teaching while trying to grow my a successful wholesale women’s clothing was there to offer his experience and sage business so I had a fall back plan,” she said. and accessory business featuring Indian- wisdom. “Up to this point I used my own money and inspired resort and beachware. She still “My father is an accountant and I worked personal connections but the weren’t enjoys teaching English, business and hotel in the family business as I grew up. He lending. I couldn’t find capital.” management on-the-side. She isn’t shy about advised me to set up a limited liability Thanks to a re-tooled SBA 7A Community dispensing advice and will tell other students corporation for what I wanted to do to start Express loan program designed to stimulate and entrepreneurs to follow their hearts when my own business. He said I could change my the economy by increasing federal loan considering starting their own business. organization as I grew but I knew this was the guarantees to 90% and reducing lender risk, “The worse that can happen is you fail. best way to start. ” Anu was approved for a $25,000 loan from So if you are going to start a business, do She named her new business “Anukshah,” Borrego Springs Bank in November 2009. something you believe in. That’s important, which is her full Indian, first name “The loan helped me expand my business because if you fail, then you were enjoying As many small business owners will attest, as well as to hire three employees. They are what you were doing and can start anew. starting off is hard work and it wasn’t any my sales representatives who pack and ship Don’t quit.” different for Anu despite her education and orders as well as go to shows to help grow the family connections. business.”

10 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida * FSBDC at Indian River State College FSBDC Monroe provided by the WBC. Many of the IRSC Mueller Campus 5901 College Rd., Rm. C-218 WBCs also offer training and counseling 6155 College Ln. Key West, FL 33040-4315 and provide materials in different Vero Beach, FL 32966-1034 305-809-3156 languages in order to meet the diverse 772-226-2541 www.keywestsbdc.org needs of the communities they serve. www.irscbiz.com WBCs often deliver their services FSBDC at Palm Beach State College WOMEN’S BUSINESS CENTERS through long-term training or group

3000 Saint Lucie Ave., Ste. AD303 The SBA’s Women Business Center counseling, both of which have shown to COUNSELING Boca Raton, FL 33431-6418 (WBC) program is a network of over 100 be effective. WBC training courses are 561-862-4726 community-based centers that provide often free or are offered at a small fee. www.palmbeachstate.edu/sbdc.xml business training, counseling coaching, Some centers will also offer scholarships mentoring and other assistance geared based on the client’s needs. * FSBDC at Palm Beach State College toward women, particularly those While most WBCs are physically 3160 PGA Blvd. Palm Beach Gardens, FL 33410-2802 who are socially and economically located in one designated location, a 561-862-4727 disadvantaged. WBCs are located in number of WBCs also provide courses www.palmbeachstate.edu/sbdc.xml nearly every state and U.S. territory and counseling via the Internet, mobile including the District of Columbia classrooms and satellite locations. FSBDC Broward and the territories of Puerto Rico and WBCs have a track record of success. Florida Atlantic University American Samoa. They are partially In fiscal year 2012, the WBC program 111 E. Las Olas Blvd. funded through a cooperative agreement counseled and trained over 136,000 Higher Education Complex, Rm. 1010 with the SBA. clients, creating local economic growth Ft. Lauderdale, FL 33301 954-762-5235 To meet the needs of women and vitality. In addition, WBCs helped www.browardsbdc.org entrepreneurs, WBCs offer services entrepreneurs access more than at convenient times and locations, $40 million dollars in capital. Based FSBDC Miami-Dade including evenings and weekends. on a 2010 Impact Study, of the WBC (Regional Offce) WBCs are located within non-profit host clients that have received three or Miami organizations that offer a wide variety more hours of counseling, 15 percent 866-737-7232 of services in addition to the services indicated that the services led to hiring http://miamisbdc.org

Contt'nental Notioool Bank of Miomi_ tn busirress slncti 197 4, has been m1 SBA pref erred le-naer for mare thon three decodes.

We are dedicated to helping bu~nesses in the community meet theidf noncial needs and to simpufying the process for small businesses applying. Our full army of Guarionmoo Loon Programs under SBA i11clude 7a Loans, SBA :Ex!pr,ess, Small Loon A~ontoge, Ex_port Express and 504 Loans. Far personalized service wim ostuble aoo secure bunk, ~eose visit one of oorsev,en ,offi~es or call oor SM Specialist, Ivette Llopirnt (305} 642-2440, email: illopil®corrtioontolbar1tcom for more infullllation .

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Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 11 new staff, 34 percent indicated that increase in annual revenue on to connect small businesses in the services led to an increased profit average). a particular industry sector and margin, and 47 percent indicated that • Creation of 908 new full time geographic region with other business the services led to an increase in sales. positions; an average job creation innovators in the same sector and In addition, the WBC program has rate of 1.9 jobs per business. with specialized suppliers, research taken a lead in preparing women • Nearly half of the participants institutions, large prime customers business owners to apply for the secured federal, state, local and and investors who also operate in Women-Owned Small Business tribal contracts with a cumulative that sector. In addition, market (WOSB) Federal Contract program total of $330 million. This figure success requires small businesses that authorizes contracting officers to has increased each year since the to know their customers and target set aside certain federal contracts for initiative’s inception. their product development dollars eligible women-owned small businesses • Respondents accessed $26,381,044 efficiently. Therefore, through or economically disadvantaged women- in new financing (excluding lines intensive, industry-specific technical owned small businesses. For more of credit) since graduating the assistance, our Clusters help small information on the program, visit program and implementing their business innovators commercialize growth plans, a 27 percent increase COUNSELING www.sba.gov/wosb. promising technologies needed by To find the nearest SBA WBC, visit compared to the previous year. government and industry buyers in www.sba.gov/women. To find out more about this executive- that particular sector. And then, level training opportunity, please visit through showcasing, networking Florida Women’s Business Center www.sba.gov/emergingleaders for host and “demonstration events,” they Victoria Hughes, Director cities, training schedules, and selection help get these small businesses and 401 W. Atlantic Ave., Ste. 09 criteria. their products in front of investment Delray Beach, FL 33444 and other funding sources, research 866-353-3790 ext. 113 Toll Free institutions and customers/buyers in 561-265-0806 Fax SBA’S ONLINE order to bring products to market. [email protected] www.fwbc.org TOOLS AND TRAINING Across the country, our resource SBA’s Online Learning Center is partners work with our regional Satellite Offce: Broward County a virtual campus complete with free innovation clusters: The resource 330 N. Federal Hwy. online courses, workshops, podcasts, partners provide the businesses with Hollywood, FL 33020 learning tools and business-readiness information and coaching on the key 954-923-4000 assessments. building blocks of business success,

Key Features of the SBA’s Online while the cluster experts help them Satellite Offce: Lee County with the highly technical product 3903 Dr. Martin Luther King Jr. Blvd. Learning Center: Training is available anytime development and relationship-building Fort Myers, FL 33916 assistance necessary to get and keep 239-321-7086 and anywhere — all you need is a computer (or mobile device) with customers and investors in their Women’s Business Center at Florida Tech Internet access. particular market sector (such as Beth Gitlin, Director • More than 30 free online courses smart-grid, fuel cell energy storage, 150 W. University Blvd. and workshops available. solar cells, imaging, aerospace, and Melbourne, FL 32901 • Templates and samples to get your agricultural processing technologies 321-674-7006 • 321-674-7008 Fax business planning underway. and networks). [email protected] • Online, interactive assessment tools For more information on SBA’s wbc.ft.edu are featured and used to direct Cluster Initiative generally, go to clients to appropriate training. www.sba.gov/clusters. EMERGING LEADERS Course topics include tutorials on writing a business plan, financing INITIATIVE strategies that include SBA lending The SBA’s Emerging Leaders programs, mastering overseas Initiative is currently hosted in 27 markets through exporting, public markets across the country using a sector procurement tactics, and nationally demonstrated curriculum specialty material for veterans, that supports the growth and young entrepreneurs, and women development of small firms that have business owners. This robust portal substantial potential for expansion also includes video content, e-books, and community impact. A competitive templates and articles. selection process results in company Visit www.sba.gov/training for these executives participating in high-level free resources. training and peer-networking sessions led by professional instructors. SBA’S CLUSTER INITIATIVE Post-training, economic impact results Every small business must from responding executives from the effectively connect into the key 2009 – 2011 cohorts indicate: relationships necessary to drive • Significant revenue growth with success in its particular industry or respondents averaging $1.8M market sector. Regional Innovation year-to-year increases (67 percent Clusters act as a networking hub

12 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida REACHING UNDERSERVED COMMUNITIES

The SBA also offers a number of The SBA’s Veterans Office provides Each of the SBA’s 68 District Offices programs specifically designed to funding and collaborative assistance for also has a designated veteran’s business meet the needs of the underserved a number of special initiatives targeting development officer. These local points- communities. local veterans, service-disabled of-contact assist veteran small business veterans, and Reserve Component owners/entrepreneurs with starting, WOMEN BUSINESS OWNERS members. These initiatives include managing and growing successful small COUNSELING Women entrepreneurs are changing Veterans Business Outreach Centers firms. Yearly, OVBD reaches thousands the face of America’s economy. In the (VBOCs), the business assistance tools of veterans, Reserve component 1970s, women owned less than –Balancing Business and Deployment, members, transitioning service 5 percent of the nation’s businesses. and Getting Veterans Back to Business, members and others who are – or who Today, they are majority owners which includes interactive CD ROMs want to become – entrepreneurs and of about a third of the nation’s small for reservists to help prepare for small business owners. In fiscal year businesses and are at least equal mobilization and/or reestablishment 2011, the number of veterans assisted owners of about half of all small of businesses upon return from active through OVBD programs exceeded businesses. SBA serves women duty. 135,000. For more information about entrepreneurs nationwide through its The agency offers special assistance OVBD, please visit www.sba.gov/vets. various programs and services, some for small businesses owned by activated of which are designed especially for Reserve and National Guard members. VETERANS BUSINESS women. Any self-employed Reserve or Guard The SBA’s Office of Women’s member with an existing SBA loan OUTREACH CENTERS Business Ownership (OWBO) serves can request from their SBA lender The Veterans Business Outreach as an advocate for women-owned or SBA district office loan payment Program (VBOP) is designed to provide businesses. The office oversees a deferrals, interest rate reductions and entrepreneurial development services nationwide network of 110 Women’s other relief after they receive their such as business training, counseling Business Centers that provide business activation orders. In addition, the and mentoring, and referrals for training, counseling and mentoring SBA offers special low-interest-rate eligible veterans owning or considering geared specifically to women, especially financing to small businesses when an starting a small business. The SBA those who are socially and economically owner or essential employee is called has 15 organizations participating disadvantaged. The program is a to active duty. The Military Reservist in this cooperative agreement and public-private partnership with locally- Economic Injury Disaster Loan Program serving as Veterans Business Outreach based nonprofits. (MREIDL) provides loans up to Centers (VBOC) across the country. Women’s Business Centers serve $2 million to eligible small businesses to Services provided by VBOC’s include: a wide variety of geographic areas, cover operating costs that cannot be met Pre-Business Plan Workshops, population densities, and economic due to the loss of an essential employee Concept Assessments, Business environments, including urban, called to active duty in the Reserves or Plan Preparations, Comprehensive suburban, and rural. Local economies National Guard. Feasibility Analysis, Entrepreneurial vary from depressed to thriving, and range from metropolitan areas to entire states. Each Women’s Business Center tailors its services to the needs of its individual community, but all offer a variety of innovative programs, often including courses in different languages. They provide training in finance, management, and marketing, as well as access to all of the SBA’s financial and procurement assistance programs.

VETERAN BUSINESS OWNERS The Office of Veterans Business Development (OVBD), established with Public Law 106-50, has taken strides in expanding assistance to veteran, service-disabled veteran small business owners and Reservists by ensuring they have access to SBA’s full-range of business/technical assistance programs and services, and they receive special consideration for SBA’s entrepreneurial programs and resources.

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 13 REACHING UNDERSERVED COMMUNITIES

Training and Counseling, Mentorship, (GPS) program -- formerly called and other business-development related Transition Assistance Program/TAP -- NATIVE AMERICAN services. and is conducted on military BUSINESS DEVELOPMENT VBOCs also provide assistance and installations. Through B2B, SBA’s The SBA Office of Native American training in such areas as international extensive network of resource partners Affairs (ONAA) ensures American trade, franchising, Internet marketing, will collaboratively deliver face-to- Indians, Alaska Natives and Native accounting, etc. For a VBOC directory, face introductory entrepreneurship Hawaiians seeking to create, develop please visit www.sba.gov/vets. training, developed in collaboration and expand small businesses have with Syracuse University’s Institute full access to the necessary business for Veterans and Military Families development and expansion tools VETERANS AND RESERVISTS (IVMF). For those service members available through the agency’s BUSINESS DEVELOPMENT who complete the two-day B2B class entrepreneurial development, lending,

COUNSELING Veterans, service-disabled veterans and are interested in more detailed and contracting programs. and Reserve and National Guard and intensive training, SBA offers a The office provides a network of member entrepreneurs receive continuation of B2B via an 8-week training (including the online tool special consideration in some of online business plan training course. “Small Business Primer: Strategies SBA’s entrepreneurial programs The 8-week online curriculum was for Growth”), initiatives that include and resources. Each year, the Office also developed in collaboration with a Native American Entrepreneurial of Veterans Business Development and is delivered by IVMF. Of course, Empowerment Workshop and Native (OVBD) reaches thousands of veterans, counselors and mentors from SBA’s American Emerging Leaders Reserve Component members, resource partner network remain (formerly e200). ONAA also is transitioning service members and available to work with service members responsible for consulting with tribal others who are – or who want to throughout B2B and thereafter as these governments prior to finalizing become – entrepreneurs and small service members start and grow their SBA policies that may have tribal business owners. OVBD develops and businesses. implications. distributes informational materials B2B piloted at several military Visit www.sba.gov/naa for more for entrepreneurship such as, Getting installations in 2012 and is currently information. Veterans Back to Business, Balancing being implemented nationwide during Business with Deployment. In addition, 2013. For more information about B2B, there are 15 Veterans Business please visit www.sba.gov/bootstobusiness. Outreach Centers strategically located throughout the country that provide CENTER FOR FAITH-BASED AND both online and in-person training, counseling, mentoring, workshops, NEIGHBORHOOD PARTNERSHIPS referrals, and more. Each of the SBA’s Faith-Based and Neighborhood 68 District Offices also has a designated organizations know their communities, veteran’s business development officer and they have earned the trust of the (www.sba.gov/districtoffces). communities they serve. As a result, Among the SBA’s unique services for they are uniquely positioned to build veterans are programs such as, Boots to awareness of programs that encourage Business; Entrepreneurship Boot Camp entrepreneurship, economic growth and for Veterans with Disabilities; VWISE; job creation. and Operation Endure and Grow. For The SBA is committed to reaching more information about these programs, out to faith-based and community please visit www.sba.gov/vets. organizations to enlist their support in informing their congregants, members and neighbors about SBA’s programs. In NATIONAL BOOTS TO particular, faith-based and community non-profit organizations can provide a BUSINESS INITIATIVE local financing option for entrepreneurs The aptly named Operation Boots by becoming SBA Microloan to Business program (B2B) builds Intermediaries. An SBA Microloan on SBA’s role as a national leader in Intermediary often acts as a bank for entrepreneurship training. B2B aims to entrepreneurs and small businesses provide exposure to entrepreneurship that might otherwise be unable to to the 250,000 service members who access capital. transition from the military each year. The B2B two-day Entrepreneurship Training is an optional track in the Department of State’s revitalized Transition Goals, Plans and Success

14 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida ARE YOU RIGHT FOR SMALL BUSINESS OWNERSHIP?

Most new business owners who own shoulders. Strong motivation succeed have planned for every phase will help you survive slowdowns and HOME-BASED BUSINESSES Going to work used to mean of their success. Thomas Edison, the periods of burnout. traveling from home to a plant, store great American inventor, once said, • How will the business affect or office. Today, many people do some “Genius is 1 percent inspiration and your family? The first few years of business start-up can be hard on or all their work at home. 99 percent perspiration.” That same family life. It’s important for family philosophy also applies to starting a members to know what to expect Getting Started business. and for you to be able to trust that Before diving headfirst into a home- COUNSELING First, you’ll need to generate a little they will support you during this based business, you must know why bit of perspiration deciding whether time. There also may be financial you are doing it. To succeed, your you’re the right type of person to start difficulties until the business becomes business must be based on something your own business. profitable, which could take months greater than a desire to be your or years. You may have to adjust to a own boss. You must plan and make lower standard of living or put family improvements and adjustments along IS ENTREPRENEURSHIP assets at risk. the road. FOR YOU? Once you’ve answered these Working under the same roof where There is simply no way to eliminate questions, you should consider what your family lives may not prove to be all the risks associated with starting type of business you want to start. as easy as it seems. One suggestion is a small business, but you can improve Businesses can include franchises, to set up a separate office in your home your chances of success with good at-home businesses, online businesses, to create a professional environment. planning, preparation and insight. brick-and-mortar stores or any Ask yourself these questions: Start by evaluating your strengths and combination of those. • Can I switch from home weaknesses as a potential owner and responsibilities to business work manager of a small business. Carefully easily? consider each of the following FRANCHISING • Do I have the self-discipline to There are more than 3,000 business maintain schedules while at home? questions: franchises. The challenge is to decide • Can I deal with the isolation of • Are you a self-starter? It will be working from home? entirely up to you to develop projects, on one that both interests you and is a good investment. Many franchising organize your time, and follow Legal Requirements through on details. experts suggest that you comparison shop by looking at multiple franchise A home-based business is subject to • How well do you get along with many of the same laws and regulations Business opportunities before deciding on the different personalities? affecting other businesses. owners need to develop working one that’s right for you. relationships with a variety of people Some of the things you should Some general areas include: • If your business including customers, vendors, staff, look at when evaluating a franchise: Zoning regulations. operates in violation of them, you bankers, employees and professionals historical profitability, effective could be fined or shut down. such as lawyers, accountants, or financial management and other • Product restrictions. Certain consultants. Can you deal with a controls, a good image, integrity products cannot be produced in the demanding client, an unreliable and commitment, and a successful home. Most states outlaw home vendor, or a cranky receptionist if industry. production of fireworks, drugs, your business interests demand it? In the simplest form of franchising, poisons, explosives, sanitary or • How good are you at making medical products and toys. Some decisions? Small business owners are while you own the business, its operation is governed by the terms states also prohibit home-based required to make decisions constantly businesses from making food, drink – often quickly, independently, and of the franchise agreement. For many, this is the chief benefit for or clothing. under pressure. Be sure to consult an attorney and • Do you have the physical and franchising. You are able to capitalize your local and state departments of emotional stamina to run a on a business format, trade name, labor and health to find out which business? Business ownership can trademark and/or support system be exciting, but it’s also a lot of work. provided by the franchisor. But you laws and regulations will affect Can you face six or seven 12–hour operate as an independent contractor your business. Additionally, check workdays every week? with the ability to make a profit or on registration and accounting • How well do you plan and sustain a loss commensurate with your requirements needed to open your organize? Research indicates that ownership. home-based business. You may need poor planning is responsible for most If you are concerned about starting a work certificate or license from the business failures. Good organization an independent business venture, then state. Your business name may need — of financials, inventory, schedules, to be registered with the state. A and production — can help you avoid franchising may be an option for you. Remember that hard work, dedication separate business telephone and bank many pitfalls. account are good business practices. • Is your drive strong enough? and sacrifice are key elements in Also remember, if you have Running a business can wear you the success of any business venture, down emotionally. Some business including a franchise. employees you are responsible for owners burn out quickly from having Visit www.sba.gov/franchise for more withholding income and Social- to carry all the responsibility for the information. Security taxes, and for complying with success of their business on their minimum wage and employee health and safety laws.

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 15 WRITING A BUSINESS PLAN

After you’ve thought about what type of business you want, the next step is to develop a business plan. Think of the business plan as a roadmap with milestones for the business. It begins as a pre-assessment tool to determine profitability and market share, and then expands as an in-business assessment tool to determine success, obtain financing and determine repayment ability, among other factors.

COUNSELING Creating a comprehensive business plan can be a long process, and you need good advice. The SBA and its resource partners, including Small Business Development Centers, Women’s Business Centers, Veterans Business Outreach Centers, and SCORE, have the expertise to help you craft a winning business plan. The Marketing SBA also offers online templates to get • Discuss the products and services your • Provide projected income statements and balance sheets for a two-year you started. company will offer. period. In general, a good business plan • Identify customer demand for your products and services. • Discuss your break-even point. contains: • Identify your market, its size and • Explain your personal balance sheet locations. and method of compensation. Introduction • Discuss who will maintain your • Give a detailed description of the • Explain how your products and accounting records and how they will business and its goals. services will be advertised and be kept. • Discuss ownership of the business marketed. • Provide “what if” statements and its legal structure. • Explain your pricing strategy. addressing alternative approaches to • List the skills and experience you potential problems. bring to the business. Financial Management • Develop an expected return on • Discuss the advantages you and your investment and monthly cash flow for Operations business have over competitors. the first year. • Explain how the business will be managed day-to-day. • Discuss hiring and personnel procedures. • Discuss insurance, lease or rent agreements. • Account for the equipment necessary to produce your goods or services. • Account for production and delivery of products and services. Concluding Statement Summarize your business goals and objectives and express your commitment to the success of your business. Once you have completed your business plan, review it with a friend or business associate and professional business counselor like SCORE, WBC or SBDC representatives, SBA district office economic development specialists or veterans’ business development specialists. Remember, the business plan is a flexible document that should change as your business grows.

16 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida CAPITAL Financing Options to Start or Grow Your Business

7(a) LOAN PROGRAM The 7(a) Loan program is the SBA’s primary business loan program. It is the agency’s most frequently used non-disaster financial assistance program because of its flexibility in loan structure, variety of uses for the loan proceeds and availability. The program has broad eligibility requirements and credit criteria to accommodate a wide range of financing needs.

The business loans that SBA CAPITAL guarantees do not come directly from the agency, but rather from banks and other approved lenders. The loans are funded by these organizations and they make the decisions to approve or deny the applicants’ request for financial assistance. The SBA guaranty reduces the any entrepreneurs need players in most of these programs are lender’s risk of borrower non-payment financial resources to start the applicant small business, the lender by providing a guaranty on a percentage or expand a small business and the SBA. The agency does not of the total loan. If the borrower and must combine what actually provide the loan, rather they defaults, the lender can request the they have with other guaranty a portion of the loan provided SBA to pay the lender that percentage Msources of financing. These sources can by a lender (except for microloans). The of the outstanding balance the agency include family and friends, venture- lender can be a regulated bank or credit guaranteed. This allows the lender to capital financing, and business loans. union, or a community based lending recover a portion of the defaulted debt This section of the Small Business organization. from the SBA if the borrower can’t Resource guide discusses SBA’s primary The business should have its business make the payments. The borrower is business loan and equity financing plan prepared before it applies for a still obligated for the full amount. programs. These are: the 7(a) Loan loan. This plan should explain what To qualify for an SBA loan, a small Program, the Certified Development resources will be needed to accomplish business must meet the lender’s criteria Company or 504 Loan Program, the the desired business purpose including and the 7(a) requirements. In addition, Microloan Program and the Small the associated costs, the applicants’ the lender must certify that it would not Business Investment Company contribution, planned uses for the provide this loan under the proposed Program. The distinguishing features loan proceeds, collateral, and, most terms and conditions without an SBA for these programs are the total dollar important, an explanation of how the guaranty. If the SBA is going to provide amounts that can be borrowed, the type business will be able to repay the loan a lender with a guaranty, the applicant of lenders who can provide these loans, in a timely manner. must be eligible and creditworthy and the uses for the loan proceeds, and the The lender will analyze the the loan structured under conditions terms placed on the borrower. application to see if it meets the lender’s acceptable to the SBA. Note: The SBA does not offer grants criteria and SBA’s requirements. to individual business owners to start or The SBA will look to the lender to do Percentage of Guaranty and Loan grow a business. much, if not all, of the analysis before Maximums it provides its guaranty on the lender’s The SBA only guarantees a portion SBA BUSINESS LOANS loan. In the case of microlenders, SBA of any particular 7(a) loan so each loan loans these intermediaries funds at will also have an unguaranteed portion, If you are contemplating a business giving the lender a certain amount loan, familiarize yourself with the SBA’s favorable rates so they can re-lend to businesses with financing needs of exposure and risk on each loan. business loan programs to see if they The percentage the SBA guarantees may be a viable option. The SBA has up to $50,000. The SBA’s business loan programs provide a key source of depends on either the dollar amount or a variety of loan programs which are the program the lender uses to obtain distinguished by their different uses of financing for viable small businesses that have real potential but cannot its guaranty. For loans of $150,000 or the loan proceeds, their dollar amounts, less the SBA generally guarantees as and the requirements placed on the qualify for credit on reasonable terms by themselves. much as 85 percent and for loans over actual lenders. The three principal $150,000 the SBA generally provides

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 17 a guaranty of up to 75 percent. Loans Both fixed and variable interest rate years, the maximum spread will be no made under the SBAExpress program, structures are available. The maximum more than 2.25 percent. For loans with which is discussed later in this section, rate comprises two parts, a base rate maturities of seven years or more, the have a 50 percent guaranty. and an allowable spread. There are maximum spread will be 2.75 percent. The maximum 7(a) loan amount is three acceptable base rates (Wall Street The spread on loans under $50,000 $5 million and there is no minimum. Journal Prime*, London Interbank One and loans processed through Express Month Prime plus 3 percent, and an procedures have higher maximums. Interest Rates and Fees SBA Peg Rate). Lenders are allowed Loans guaranteed by the SBA are The actual interest rate for a 7(a) loan to add an additional spread to the base assessed a guaranty fee. This fee is guaranteed by the SBA is negotiated rate to arrive at the final rate. For based on the loan’s maturity and the between the applicant and lender loans with maturities of less than seven dollar amount guaranteed, not the and is subject to the SBA maximums.

What to Take to the Lender

Documentation requirements will to the experience the lender has in requests processed through the vary depending upon the purpose of requesting guarantees from SBA, the Preferred Lender Program or Express the loan. Contact your lender for the documentation the lender provides to programs, the lender is delegated the information you must supply. SBA, the amount of review the SBA authority to make the credit decision Common requirements include the conducts upon receiving the request, without the SBA’s concurrences. following: the amount of the loan and the lender Requests processed through • Purpose of the loan responsibilities in case the loan Advantage procedures are a hybrid of

CAPITAL • History of the business defaults and the business’ assets must both. • Financial statements for three years be liquidated. The different methods By guaranteeing a loan, the SBA (existing businesses) are: assures the lender that, in the event • Schedule of term debts (existing • Standard 7(a) Guaranty the borrower does not repay the loan, businesses) • Certified Lender Program the government will reimburse the • Aging of accounts receivable and • Preferred Lender Program lending institution for a percentage of payable (existing businesses) • SBA Express • Projected opening-day balance sheet the amount owed. By providing this • Patriot Express (new businesses) guaranty, the SBA is able to help tens • Export Express • Lease details of thousands of small businesses every • Amount of investment in the • Small Loan Advantage year get financing they might not business by the owner(s) • Small/Rural Lender Advantage otherwise obtain. • Projections of income, expenses and • Community Advantage When an SBA guaranty is approved, cash flow as well as an explanation When lenders request guarantees the lender is notified and they will of the assumptions used to develop using Standard, Certified, or Preferred work with the applicant to make sure these projections processing methods, the applicant the terms and conditions designed for • Personal financial statements on the fills out SBA Form 4, and the lender principal owners the specific loan are met before closing completes SBA Form 4-I. The Form the loan, disbursing the funds, and • Resume(s) of the principal owners 4 requires the applicant to fully and managers. assuming responsibility for collection explain what they intend to do with and general servicing. The borrower the money and explain how they will How the 7(a) Program Works makes loan payments directly to the repay the loan. The Form 4-I requires lender. As with any loan, the borrower Small Business applicants submit the lender to explain their analysis their loan application to a lender for is obligated to repay the full amount of of the eligibility and credit merits the loan in a timely manner. the initial review. The lender will of the request. When lenders uses generally review the credit merits of Express or Advantage procedures to the request before deciding if they request guarantees, the loan amounts What the SBA Looks for: will make the loan themselves or are smaller and the information • Ability to repay the loan on time from if they will need an SBA guaranty. the applicant has to provide SBA is the projected operating cash flow; If a guaranty is needed, the lender reduced, but the lender can still ask • Owners and operators who are of good character; will also review the application for the applicant for as much detail as • Feasible business plan; eligibility. The applicant should be they believe is necessary for them prepared to complete some additional • Management expertise and to make their decision. Through commitment necessary for success; documents before the lender sends Express and Advantage procedures their request for guaranty to the SBA. • Sufficient funds, including the SBA the lender also provides SBA with less guaranteed loan, to operate the Applicants who feel they need more information about their credit analysis help with the process should contact business on a sound financial basis but the lender still has to conduct their (for new businesses, this includes the their local SBA district office or one due diligence. resources to meet start-up expenses of the SBA’s resource partners for When the SBA receives a request for and the initial operating phase); assistance. guaranty using Standard or Certified • Adequate equity invested in the There are several ways a lender procedures, it either reanalyzes or business; and can apply for a 7(a) guaranty from reviews the lender’s eligibility and • Sufficient collateral to secure the loan the SBA. The main differences credit analysis before deciding to or all available collateral if the loan between these methods are related approve or reject the request. For cannot be fully secured.

18 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida total loan amount. The guaranty fee is financed. However, maximum loan prepayment penalty if the loan is paid initially paid by the lender and then maturities have been established: 25 off before maturity but the SBA will passed on to the borrower at closing. years for real estate; up to 10 years for charge the borrower a prepayment fee The funds to reimburse the lender can equipment (depending on the useful life if the loan has a maturity of 15 or more be included in the overall loan proceeds. of the equipment); and generally up to years and is pre-paid during the first On any loan with a maturity of one seven years for working capital. Short- three years. year or less, the fee is just 0.25 percent term loans and revolving lines of credit Collateral of the guaranteed portion of the loan. are also available through the SBA to The SBA expects every 7(a) loan On loans with maturities of more than help small businesses meet their short- to be fully secured, but the SBA will one year, the normal guaranty fee is 2 term and cyclical working capital needs. not decline a request to guaranty a percent of the SBA guaranteed portion loan if the only unfavorable factor is on loans up to $150,000; 3 percent on Structure insufficient collateral, provided all loans over $150,000 but not more than Most 7(a) term loans are repaid available collateral is offered. What $700,000; and 3.5 percent on loans over with monthly payments of principal these two policies mean is that every $700,000. There is also an additional and interest. For fixed-rate loans the SBA loan is to be secured by all fee of 0.25 percent on any guaranteed payments stay the same because the available assets (both business and portion over $1 million. interest rate is constant, whereas for personal) until the recovery value * All references to the prime rate variable rate loans the lender can equals the loan amount or until all

refer to the base rate in effect on the require a different payment amount assets have been pledged to the extent CAPITAL frst business day of the month the loan when the interest rates changes. that they are reasonably available. application is received by the SBA. Applicants can request that the lender Personal guaranties are required establish the loan with interest-only from all the principal owners of the 7(a) Loan Maturities payments during the start-up and business. Liens on personal assets of the The SBA’s loan programs are expansion phases (when eligible) to principals may be required. generally intended to encourage longer allow the business time to generate term small-business financing, but income before it starts making full Eligibility

actual loan maturities are based on the loan payments. Balloon payments or 7(a) loan eligibility is based on four

ability to repay, the purpose of the loan call provisions are not allowed on any different factors. The first is size, as

proceeds and the useful life of the assets 7(a) loan. The lender may not charge a all loan recipients must be classified

you, small business owners Wells Fargo was named the #1 SB.A lender for 20 2* South Florida counts on small businesses. An you can count on We ls Fargo- the nation's largest SBA lender - for the financing you need to: • Purchase a building or an existing business • Finance a partner buyout • Meet virtu.aHy any other business need and Loan size With interest rates at all-time lows, now is the time to take advantage of SBA ]ending. Talk with your local Wells Fargo SBA spedalist today and get the financing you deserve:

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Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 19 as “small” by the SBA. The basic size standards are outlined below. A more in-depth listing of standards can be found at www.sba.gov/size.

SBA Size Standards have the following general ranges: • Manufacturing — from 500 to 1,500 employees • Wholesale Trades — Up to 100 employees • Services — $2 million to $35.5 million in average annual receipts • Retail Trades — $7 million to $35.5 million in average annual receipts • Construction — $7 million to $33.5 million in average annual receipts • Agriculture, Forestry, Fishing, and Hunting — $750,000 to $17.5 million in average annual receipts There is an alternate size standard for businesses that do not qualify under their industry size standards for SBA Proceeds can also be used to: • The owners must be of good funding – tangible net worth ($15 • Expand or renovate facilities; character and reputation; and • Acquire machinery, equipment, • All loans must be so sound as to

CAPITAL million or less) and average net income reasonably assure repayment. ($5 million or less for two years). This furniture, fixtures and leasehold improvements; For more information, go to new alternate makes more businesses • Finance receivables and augment . eligible for SBA loans and applies www.sba.gov/apply working capital; to SBA non-disaster loan programs, • Finance seasonal lines of credit; namely its 7(a) Business Loans and • Acquire businesses; SPECIAL PURPOSE Development Company programs. • Start businesses; 7(a) LOAN PROGRAMS Nature of Business • Construct commercial buildings; The 7(a) program is the most flexible and The second eligibility factor is based of the SBA’s lending programs. Over • Refinance existing debt under on the nature of the business and the time, the agency has developed several certain conditions. variations to the basic 7(a) program in process by which it generates income or SBA 7(a) loan proceeds cannot be used order to address specific financing needs the customers it serves. The SBA has for the purpose of making investments. for particular types of small businesses. general prohibitions against providing SBA proceeds cannot be used to The general distinguishing feature financial assistance to businesses provide funds to any of the owners between these loan types is their use involved in such activities as lending, of the business except for ordinary of proceeds. These programs allow the speculating, passive investment, compensation for actual services proceeds to be used in ways that are pyramid sales, loan packaging, provided. not otherwise permitted in a basic 7(a) presenting live performances of a loan. These special purpose programs prurient nature, businesses involved in Miscellaneous Factors are not necessarily for all businesses gambling and any illegal activity. The fourth factor involves a variety but may be very useful to some small The SBA also cannot make loan of requirements such as SBA’s credit businesses. They are generally governed by the same rules, regulations, guaranties to non-profit businesses, elsewhere test and utilization of fees, interest rates, etc., as the basic private clubs that limit membership on personal assets requirements, where the 7(a) loan. Lenders can advise you of any a basis other than capacity, businesses business and its principal owners must that promote a religion, businesses variations. The Special Purpose Loans use their own resources before getting include: owned by individuals incarcerated or a loan guaranteed by the SBA. It also on probation or parole, municipalities, includes the SBA’s anti-discrimination and situations where the business or International Trade Loan Program rules and limitations on lending to The SBA’s International Trade its owners previously failed to repay agricultural enterprises because Loan (ITL) is designed to help a federal loan or federally assisted there are other agencies of the federal small businesses enter and expand financing. government with programs to fund such into international markets and, businesses. Use of Proceeds when adversely affected by import Generally, SBA loans must meet the The third eligibility factor is use of competition, make the investments following criteria: necessary to better compete. The ITL proceeds. 7(a) proceeds can be used • Every loan must be for a sound offers a combination of fixed asset, to: purchase machinery; equipment; business purpose; working capital financing and debt fixtures; supplies; make improvements • There must be sufficient invested refinancing with the SBA’s maximum to land and/or buildings that will equity in the business so it can guaranty--90 percent--on the total loan be occupied by the subject applicant operate on a sound financial basis; amount. The maximum loan amount is business. • There must be a potential for long- $5 million in total financing. term success;

20 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida Use of Proceeds Foreign Buyer Eligibility gov to find your local SBA district • For the facilities and equipment Foreign buyers must be located in office for a list of participating portion of the loan, proceeds may be those countries wherein the Export- lenders. used to acquire, construct, renovate, Import Bank of the U.S. is not • A small business wanting to qualify modernize, improve or expand prohibited from providing financial as adversely impacted from import facilities or equipment in the assistance. competition must submit supporting U.S. to produce goods or services documentation that explains the involved in international trade, Collateral Requirements impact, and a plan with projections including expansion due to bringing • Only collateral located in the that explains how the loan will production back from overseas if U.S. (including its territories and improve the business’ competitive the borrower exports to at least one possessions) is acceptable. position. market. • First lien on property or • A small business expanding exports • Working capital is an allowable use equipment financed by the ITL or would need a business plan and of proceeds under the ITL. on other assets of the business is export sales projections showing • Proceeds may be used for the required. However, an ITL can be increased export sales and/or global refinancing of debt not structured secured by a second lien position competitiveness as a result of the on reasonable terms and conditions, if the SBA determines there ITL financing. including any debt that qualifies for is adequate assurance of loan refinancing under the standard SBA payment. Guaranty Coverage

7(a) Loan Program. • Additional collateral, including The SBA can guaranty up to 90 CAPITAL personal guaranties and those percent of an ITL up to a maximum Loan Term assets not financed with ITL of $4.5 million, less the amount of • Maturities on the working capital proceeds, may be appropriate. the guaranteed portion of other SBA portion of the ITL are typically loans outstanding to the borrower. The How to Apply limited to 10 years. maximum guaranty for any working • Maturities of up to 10 years on • A small business seeking an ITL must apply to an SBA-participating capital component of an ITL is limited equipment unless the useful life to $4 million. Any other working capital exceeds 10 years. lender. The lender will submit a SBA loans that the borrower has are • Maturities of up to 25 years are completed Application for Business counted against the $4 million guaranty available for real estate. Loan (SBA Form 4), including all • Loans with a mixed use of fixed- exhibits, to the SBA. Visit www.sba. limit. asset and working-capital financing will have a blended-average maturity.

Interest Rates Lenders may charge between 2.25 to 2.75 percent above the prime rate (as published in the Wall Street Journal) depending upon the maturity of the loan. Interest rates on loans of $50,000 and less can be slightly higher. Exporter Eligibility • Applicants must meet the same eligibility requirements as for the SBA’s standard 7(a) Loan Program. • Applicants must also establish that the loan will allow the business to expand or develop an export market or, demonstrate that the business has been adversely affected by import competition and that the ITL will allow the business to improve its competitive position. In addition, See how we can help your business.. stop in, call 1 855-.278-8988 “indirect export” is an acceptable eligibility criterion for the ITL. or vi:s,it www.tdbanlk.com/sballoa n. Indirect exports occur when the borrower’s customer is a U.S.-based business that might incorporate the borrower’s product into a final product being exported or an Export il!J Bank Trading Company that purchases a product to be exported. The America's M'.Mt Convenient Bank• borrower would need documentation from the exporter-of-record that its product, is, in fact, being exported.

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 21 Export Working Capital Program The SBA’s Export Working Capital Program (EWCP) assists lenders in meeting the needs of exporters seeking short-term export working capital. Exporters can apply for EWCP loans in advance of finalizing an export sale or contract. With an approved EWCP loan in place, exporters have greater flexibility in negotiating export payment terms — secure in the assurance that adequate financing will be in place when the export order is won.

Benefts of the EWCP • Financing for suppliers, inventory or production of export goods. • Export working capital during long payment cycles. • Financing for stand-by letters of credit used as bid or performance bonds or down payment guarantees. • Reserves domestic working capital • Up to 90 percent on documentary • Loan maturities are generally for 12 for the company’s sales within the letters of credit. months or less; maximum maturity

CAPITAL U.S. • Up to 90 percent on insured foreign is 3 years. • Permits increased global accounts receivable. competitiveness by allowing the • Up to 75 percent on eligible foreign U.S. Export Assistance Center exporter to extend more liberal sales inventory located within the U.S. While not a loan program, terms. • In all cases, not to exceed the entrepreneurs interested in learning • Increases sales prospects in under- exporter’s costs. more about exporting their goods developed markets which have high and services should be aware of SBA capital costs for importers. Collateral Requirements technical staff available at a U.S. Export • Low fees and quick processing Transaction collateral is typically Assistance Centers or USEAC. There times. adequate to secure an EWCP loan are 19 USEACs located throughout the via export-related inventory, and the Use of Proceeds U.S. They are staffed by SBA, U.S. accounts receivable generated by the Department of Commerce and, in some • To pay for the manufacturing costs export sales, as well as an assignment of goods for export. locations, Export-Import Bank of the of proceeds of any letter of credit or • To purchase goods or services for U.S. personnel, and they provide trade insurance policies covering export export. promotion and export-finance assistance • To support standby letters of credit sales financed with EWCP funds. The in a single location. The USEACs to act as bid or performance bonds. SBA requires the personal guarantee also work closely with other federal, • To finance foreign accounts of owners with 20 percent or more state and local international trade receivable. ownership stake. organizations to provide assistance to • Indirect exports also are an eligible small businesses. To find your nearest use of proceeds. Indirect exports How to apply USEAC, visit: www.sba.gov/content/ occur when the borrower’s customer Application is made directly to the us-export-assistance-centers. You can is U.S.-based businesses that might SBA’s participating lenders. Businesses find additional export training and incorporate the borrower’s product are encouraged to contact SBA staff counseling opportunities by contacting in a final product being exported at their local U.S. Export Assistance your local SBA office. or an Export Trading Company Center (USEAC) to discuss whether that purchases a product to be they are eligible for the EWCP and Regional Manager exported. The borrower would need whether it is the appropriate tool to SBA International Trade Program documentation from the exporter meet their export financing needs. Mary E. Hernandez of record that its product is, in fact, Participating lenders review/approve U.S. Export Assistance Center being exported. the application and submit the request 5835 Blue Lagoon Dr., Ste. 203 to SBA staff at the local USEAC. Miami, FL 33126 Interest Rates 305-526-7425 ext. 21 [email protected] The SBA does not establish or Guaranty Coverage subsidize interest rates on loans. The • Maximum loan amount is interest rate can be fixed or variable $5,000,000. CAPLines and is negotiated between the borrower • 90 percent of principal and accrued The CAPLines program for loans and the participating lender. interest up to 120 days. up to $5 million is designed to help • Low guaranty fee of one-quarter small businesses meet their short- Advance Rates of one percent of the guaranteed term and cyclical working capital • Up to 90 percent on purchase portion for loans with maturities of needs. The programs can be used to orders. 12 months or less. finance seasonal working capital needs;

22 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida finance the direct costs of performing their customers, or whose principle Dealer Floor Plan Program certain construction, service and supply asset is inventory. Disbursements In response to the need to help retail contracts, subcontracts, or purchase are generally based on the size of a businesses that sell inventory acquired orders; finance the direct cost associated borrower’s accounts receivable and/ through floor plan financing, the SBA with commercial and residential or inventory. Repayment comes created a program where SBA will from the collection of accounts construction; or provide general working guarantee a lender’s revolving floor receivable or sale of inventory. The capital lines of credit. The SBA provides plan line of credit. The minimum specific structure is negotiated with up to an 85 percent guarantee. There line of credit available under this are four distinct loan programs under the lender. There may be extra servicing and monitoring of the program is $500,000 and the maximum the CAPLine umbrella: collateral for which the lender can is $5,000,000 to acquire floor plan • The Contract Loan Program is inventory for resale. Principal used to finance the cost associated charge up to 2 percent annually to the borrower. payments must be made to the lenders with contracts, subcontracts, or as collections from inventory sales are purchase orders. Proceeds can be received from customers. The business disbursed before the work begins. If used for one contract or subcontract, cannot finance a customer’s purchase it is generally not revolving; if used for more than one contract or subcontract at a time, it can be revolving. The loan maturity is CAPITAL usually based on the length of the contract, but no more than 10 years. Contract payments are generally sent directly to the lender but alternative structures are available. the • The Seasonal Line of Credit Program is used to support Growth ,of Your Busin,ess buildup of inventory, accounts receivable or labor and materials above normal usage for seasonal RIGHT HERE inventory. The business must have been in business for a period of 12 months and must have a definite RIGHT NOW' established seasonal pattern. The loan may be used over again after a “clean-up” period of 30 days to Tools• St1rategies • Expertise finance activity for a new season. These loans also may have a For 16merging and Growt1 Businesses maturity of up to five years. The Confidential and at No-Cost business may not have another seasonal line of credit outstanding but may have other lines for non- seasonal working capital needs. • The Builders Line Program provides financing for small contractors or developers to construct or rehabilitate residential or commercial property. Loan maturity is generally three years Credentialed consultants wiH help you but can be extended up to five years, if necessary, to facilitate develop sustai1nallle growth strategies wittl sale of the property. Proceeds are used solely for direct expenses of Results-driven Be.nefits acquisition, immediate construction and/or significant rehabilitation • Understand your market of the residential or commercial FLOR I DA structures. The purchase of the land • Identify new opportunities Helping Bus inesses can be included if it does not exceed 20 percent of the loan proceeds. Up • Assess your financial situation Grow & Succeed to 5 percent of the proceeds can be used for physical improvements * Uncover hidden profits www.FloridaSBDC.org that benefit the property. :ll.866.737.72 32 • The Working Capital Line • Boost. . . . access ...... to.. ca p·•tal Program is a revolving line of credit (up to $5,000,000) that State Designated as Florida's IP rlncipal Provider of Business Assistance [§ 2&8.001, Fla. Stat.] provides short term working capital. These lines are generally used by ·t~t.· f SK 1)(N 1~. ,1 ~·• ~1 :1.·~•~1(1(• ~t.~"a1c ,• n~-.~·, ,.).1 11i:. f~J11(fc•c 1"1 ;_1t;r~ :r~,::-~-9"1 \'l cc.11)~":(•r~1~ ~·e t1~Jr,"'t•.-..~c·n: businesses that provide credit to w11 1) 1h1• us SRA \'l((r,"tit:i::11..1 :,, ~')(• 'lt~ t11::-,n(1I /l,.', ',(>~1~1r1(1 1~ r-.f SRD(--; t':ir1(~ "IC-)1t... ::J I~/ u•~i\,:-

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 23 The analysis of eligibility starts with a review of the “Eligibility Questionnaire,” completed by the lender. The analysis of credit starts with a review of the SBA Form 4-I and the lender’s credit memo which must discuss at least six elements: 1. Balance sheet and ratio analysis; 2. Analysis of repayment. It is not acceptable to base repayment ability solely on the applicant’s credit score. 3. Assessment of the management skills of the applicant; 4. Explanation of the collateral used to secure the loan and the adequacy of the proposed collateral; 5. Lender’s credit history with applicant including an explanation of any weaknesses; 6. Current financial statements and pro-forma financial spread. SBA pro-forma analysis reflects how because that would classify the business issues that requires SBA to thoroughly the business will look immediately as a lender, making them ineligible review the situation. The foundational following disbursement, not one

CAPITAL for SBA assistance. This program is process is called the Standard Loan year after disbursement. designed to help those businesses that Guaranty Process and it Is used by SBA also expects that the lender’s sell automobiles, motorcycles, boats, lenders to request a guaranty from SBA credit memo includes the intended recreational vehicles and other items when they are new to SBA lending or use of the loan proceeds and any that are licensed or titled. the request requires a SBA review. historical and current issues that Other methods of processing have less require explanation. SBA also expects Other Guaranty Lines of Credit requirements for SBA but more for the a discussion of the process by which the All the Special Purpose Programs lender and the determining factors on applicant business generates its income listed above have SBA structured which one a lender will use depends on when it is not immediately obvious. repayment terms meaning the agency the experience of the lender in dealing An explanation of how the business tells the lender how principal and with SBA, the complexity of the case, conducts its operation is expected. interest is to be repaid. These programs the purpose of the loan, and the dollar SBA has three days to screen and 10 also require the lender to use certain amount being requested. days to process the request for guaranty closing forms. Lenders with the ability from the lender. Any additional to obtain 7(a) guarantees through any Standard 7(a) Loan Processing time a lender takes to make their of the Express processes are considered After the applicant business and determination will add to the length of experienced enough to be able to lender complete their required time to a final decision. If the guaranty structure their own repayment terms documents, the lender makes is approved, SBA will prepare a loan and use their own closing documents. authorization outlining the terms and With this ability the lender can tailor application to SBA for a guaranty by submitting them to SBA’s Loan conditions under which the guaranty is a line of credit that it gets guaranteed provided and prepare an approval letter by SBA to the needs of the business. Guaranty Processing Center. The for transmission to the lender. Therefore, if a potential applicant sees center will screen the application and, if that the previously listed Basic 7(a) or satisfactory complete a thorough review Special Purpose 7(a) Programs don’t of both eligibility and creditworthiness SBAExpress meet their needs they should discuss before making the decision to approve The SBAExpress guaranty is available their options with a lender capable of the issuance of a guaranty as submitted, to lenders as a way to obtain a guaranty providing an SBAExpress loan with an approve with modifications (which on smaller loans up to $350,000. The SBA guaranty. will be discussed with the lender), or program authorizes select, experienced reject the request. When the lender lenders to use mostly their own forms, 7(a) LOAN PROCESSES FOR makes application to SBA, they have analysis and procedures to process, already internally agreed to approve structure, service, and disburse SBA- LENDERS the recommended loan to the applicant guaranteed loans. The SBA guarantees There are various procedures for if, and only if, the SBA provides a up to 50 percent of an SBAExpress loan. lender to follow when they apply to SBA guaranty. Loans under $25,000 do not require for a 7(a) guaranty. Some are designed Standard processing means a lender collateral. The use of loan proceeds is for experienced lenders who are fully makes their request for guaranty the same as for any basic 7(a) loan. Like committed to providing business using SBA Form 4-I and the applicant most 7(a) loans, maturities are usually loans guaranteed by SBA to their completes SBA Form 4, even if the five to seven years for working capital clientele that need them, while others applicant previously completed the and up to 25 years for real estate or are designed for lenders with limited lender’s required application forms. equipment. Revolving lines of credit are experience or when there are certain allowed for a maximum of seven years.

24 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida Patriot Express and Other Lending Programs For Veterans The Patriot Express pilot loan initiative is available only for veterans and members of the military community to establish or expand a small business. Eligible military community members include: • Veterans; • Service-disabled veterans; • Active-duty service members eligible for the military’s Transition Assistance Program; • Reservists and National Guard members; • Current spouses of any of the above, including any service member; • The widowed spouse of a service

member or veteran who died during CAPITAL service or of a service-connected disability. The Patriot Express loan is offered by the SBA’s nationwide network of 2013 PATRIOT EXPRESS LENDERS Export Express private lenders and features the fastest SBA Export Express offers flexibility turnaround time for loan approvals. 1ST UNITED BANK and ease of use for both borrowers ACHIEVA and lenders. It is the simplest export Loans are available up to $500,000 and BANK OF AMERICA, N.A. qualify for SBA’s maximum guaranty BANKFIRST loan product offered by the SBA and of 85 percent for loans of $150,000 BANKUNITED, N.A. allows participating lenders to use their or less and 75 percent for loans over BB&T own forms, procedures and analyses. $150,000 up to $500,000. For loans BUSEY BANK The SBA provides the lender with a above $350,000, lenders are required BUSEY BANK response within 36 hours. to either obtain all collateral or enough C1 BANK This loan is subject to the same collateral so the value is equal to the CAPITAL BANK, N.A. loan processing, closing, servicing and CELTIC BANK liquidation requirements as well as the loan amount. CENTENNIAL BANK The Patriot Express loan can be used CIT SMALL BUSINESS LENDING same maturity terms, interest rates and for most business purposes, including COMMUNITY BANK OF BROWARD applicable fees as for other 7(a) loans start-up, expansion, equipment COMMUNITY BANK OF THE SOUTH (except as noted below). purchases, working capital, and EUROBANK inventory or business-occupied real- FAIRWINDS CREDIT UNION Use of Proceeds estate purchases. FEDERAL TRUST BANK Loan proceeds may be used for Patriot Express loans feature the FIFTH THIRD BANK business purposes that will enhance a FIRST AMERICAN BANK-IOWA company’s export development. Export SBA’s lowest interest rates for business FIRST BANK loans, generally 2.25 percent to 4.75 FLORIDA BANK OF COMMERCE Express can take the form of a term percent over prime depending upon FLORIDA BUSINESS BANK loan or a revolving line of credit. As the size and maturity of the loan. FLORIDA SHORES BANK-SOUTHWEST an example, proceeds can be used to Your local SBA district office will have GULFSHORE BANK fund participation in a foreign trade a listing of Patriot Express lenders HSBC BANK USA, N.A. show, finance standby letters of credit, in your area. More information is INTERAMERICAN BANK, FSB translate product literature for use in INTERCREDIT BANK, N.A. available at www.sba.gov/patriotexpress. foreign markets, finance specific export JPMORGAN CHASE BANK, N.A. orders, as well as to finance expansions, Self-employed Reserve or Guard KEYBANK, N.A. members with an existing SBA loan can M&I MARSHALL & ILSLEY BANK equipment purchases, and inventory or request from their SBA lender or SBA NAVY FEDERAL CREDIT UNION real estate acquisitions, etc. district office, loan payment deferrals, PILOT BANK Indirect exports also are an eligible interest rate reductions and other relief PNC BANK, N.A. use of proceeds. Indirect exports occur after they receive activation orders. The POPULAR COMMUNITY BANK when the borrower’s customer is SBA also offers special low-interest-rate REGIONS BANK U.S.-based businesses that might REPUBLIC BANK financing of up to $2 million when an incorporate the borrower’s product SEACOAST NATIONAL BANK in a final product being exported or owner or essential employee is called SOUTHERN COMMERCE BANK to active duty through the Military STERLING SAVINGS BANK an Export Trading Company that Reservist Economic Injury Disaster SUNTRUST BANK purchases a product to be exported. The Loan program (MREIDL) to help cover SUPERIOR FINANCIAL GROUP, LLC borrower would need documentation operating costs due to the loss of an SYNOVUS BANK from the exporter of record that its essential employee called to active duty. TAMPA BAY FEDERAL CREDIT UNION product is, in fact, being exported. TD BANK, NATIONAL ASSOCIATION WELLS FARGO SBA LENDING

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 25 Ineligible Use of Proceeds is eligible for Export Express. The How to Apply Proceeds may not be used to finance one year in business requirement Interested businesses should contact overseas operations other than those can be waived if the applicant has their existing lender to determine strictly associated with the marketing demonstrated previous business success if they are an SBA Export Express and/or distribution of products/services and has exporting expertise on its lender. Application is made directly exported from the U.S. management staff and if the lender does to the lender. Lenders use their own conventional underwriting and does not application material in addition to the Exporter Eligibility rely solely on credit scoring. SBA’s Borrower Information Form. Any business that has been in Lenders’ approved requests are then operation, although not necessarily in Foreign Buyer Eligibility submitted with a limited amount of exporting, for at least 12 full months The exporter’s foreign buyer must be a eligibility information to the SBA’s and can demonstrate that the loan creditworthy entity and the methods of National Loan Processing Center for proceeds will support its export activity payment must be acceptable to the SBA review. and the SBA lender. SUCCESS John Diaz: SBA South Florida District STORY Minority-Owned Small Busness Person of the Year The Tampa, Fla., small business community business relationships. Diaz became The 21-year-old- has a designated hitter on their roster that is involved with the Florida Minority Supplier company has inspiring other entrepreneurs around south Development Council at the same time he realized a 21% Florida. was starting Impact Industrial Supplies. growth over the Tampa’s Impact Industrial Supplies-owner Certifying his business as a Hispanic-owned last three years.

CAPITAL John Diaz started down his career path as company gave him an edge that other Diaz continues to a supplier in tools, abrasives, adhesives businesses lacked. give back to his and other supplies used in industry in the “Becoming a certified Hispanic-owned hometown community by supporting many 1980’s. His dedication and the way he treated business gave me access to corporations that child-support charities including Tampa’s customers quickly advanced him to area other businesses must spend more time and Metropolitan Ministries, Big Brothers and Big manager several years later. But his career resources to access,” explained Diaz. “Once Sisters and little league baseball. Diaz is still to a life altering turn when the company I start a business relationship, I value that very active in the Florida Minority Supplier he worked for began to fail and long-time relationship and deliver the best customer Development Council where he serves as the employees left for other jobs. care I can.” Minority Business Enterprise Chair and on the “I saw the writing on the wall and I left. Industrial Impact Supplies customers executive committee. He provides guidance The company is still in business there was a include an 18-year relationship with Walt to chapter members on how to maximize their risk of closing. I had no job and four-month- Disney World; an eight-year relationship minority business enterprise designation. old baby twins at home,” said Diaz. “I had with United Space Alliance; and Honeywell Being a small business owner in Tampa and considered a business before and the time Corporation. It’s through these long term contributing to the economy is something he to start was now. I had great relationships relationships centered on treating customers is very proud of. with customers and suppliers and thought by with respect that allowed the industrial “We try to do more with fewer employees working at home, I would find the business- supply company to grow from a $190,000 and pay above the local pay scale,” said Diaz. family stability I needed.” home-based business revenue over $6million. “The majority of my work force doesn’t have Diaz set out to continue his relationships “I recently found a list of my top 20 customers college degrees but I try to offer a competitive with previous clients and with a lifetime that I wrote down in 2005. Of those 20 salary and a flexible schedule so they can find group of friends in his Tampa-hometown customers, I’m still doing business with 11 the opportunity to become successful. Two where he spent many days playing baseball. of them,“ said Diaz. “Eight of the others former employees were part time college He launched his own business in his home, are no longer in business. The other I lost students when they worked here. Today, Impact Industrial Supplies relying on his to a national competitor. Retention in the they not only graduated but formed their own previous experience as a supplier for products industrial supply business is difficult and pharmaceutical company and I’m proud to used in industrial companies. having retained those 11 businesses is a great know I could be part of their success.” “I had a staff of three people: my wife, accomplishment.” Creating that opportunity of success is sister-in-law and me. We had sales of While tenacity and learning the industrial important to Diaz. He admits his business $190,000 that first year,” recalled Diaz. “I’d supply business from the ground-up may philosophy comes from the baseball dugouts make service calls during the day, come home explain some of Diaz success, education and and the infield where he used to play. His for dinner with the family, and then go back learning business from the experts helped dream wasn’t to be a small business owner to fill orders for the next day. “ lead the way. but a third baseman in the major leagues. As Industrial Impact Supplies grew, Diaz “I got my associates degree in business What he is quick to point out, though, is he secured larger facilities. In 2001, he purchased on a baseball scholarship at Hillsborough had a plan when things weren’t unfolding a 15,000 square foot property in Tampa. Community College. I continued my business as he hoped. He seized other opportunities But the business growth wasn’t without studies, and played baseball, at Florida when they arose. difficulties. International University (FIU),” said Diaz. “My advice to other entrepreneurs is they “Like many small businesses, I had But his business acumen didn’t stop there. need to develop productive paranoia. There challenges of establishing lines of credit Diaz attended the 2002 Annual Small is no point in dwelling on failures and you and receiving credit from suppliers. But a Business Government Conference presented shouldn’t dwell on your successes either,” customer of mine who I had known for a by Florida’s Small Business Development Diaz explained. “Baseball is like that because long time introduced me to some others in Center (SBDC) and the Procurement Technical one day you can go hitless and the next day banking. There, I learned what could achieve Assistance Center (PTAC) that honed his go four-for-four. Be bullheaded; follow your with networking and managed to secure my entrepreneurial skills. Since then, Diaz gut instinct; don’t let events set you back and first line of credit that became the foundation estimates he has received more than 1,060 don’t let adversity slow you down.” for strong growth,” said Diaz. hours of consulting services and training from Diaz understands the value of strong the SBDC.

26 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida Guaranty Coverage CERTIFIED DEVELOPMENT is also required if the primary The SBA provides lenders with a collateral will be a single-purpose 90 percent guaranty on loans up to COMPANY LOAN PROGRAM building (such as a hotel). $350,000 and a 75 percent guaranty on • Two-tiered project financing: A (504 LOANS) lender finances approximately loans between $350,001 and $500,000. The 504 Loan program is an economic 50 percent of the project cost and development program that supports Small/Rural Lender Advantage receives a first lien on the project American small business growth and assets (but no SBA guaranty); A The Small/Rural Lender Advantage helps communities through business CDC (backed by a 100 percent SBA- (S/RLA) initiative is designed to expansion and job creation. This SBA guaranteed debenture) finances up accommodate the unique loan program provides long-term, fixed- to 40 percent of the project costs processing needs of small community/ rate, subordinate mortgage financing secured with a junior lien. The rural-based lenders by specifying what for acquisition and/or renovation of borrower provides the balance of the the applicant has to provide to the capital assets including land, buildings project costs. lender and what the lender needs to and equipment. Some refinancing is • Fixed interest rate on SBA loan. provide SBA, particularly for smaller also permitted. Most for-profit small The SBA guarantees the debenture SBA loans. It is part of a broader SBA businesses are eligible for this program. 100 percent. Debentures are sold in initiative to promote the economic The types of businesses excluded from pools monthly to private investors. development of local communities, 7(a) loans (listed previously) are also This low, fixed rate is then passed particularly those facing the challenges excluded from the 504 loan program. on to the borrower and establishes CAPITAL of population loss, economic dislocation Loans are provided through Certified the basis for the loan rate. and high unemployment. Visit Development Companies. CDCs work • All project-related costs can be www.sba.gov/content/rural-business-loans with banks and other lenders to make financed, including acquisition (land and building, land and construction for more information. loans in first position on reasonable of building, renovations, machinery terms, helping lenders retain growing and equipment) and soft costs, such Advantage Loans customers and provide Community as title insurance and appraisals. In early 2011, the SBA rolled out two Redevelopment Act credit. other Advantage initiatives aimed at Some closing costs may be financed. The SBA 504 loan is distinguished • Collateral is typically a subordinate helping lenders help entrepreneurs in from the SBA 7(a) loan program in lien on the assets financed; allows underserved communities gain access to these ways: other assets to be free of liens and capital. The maximum debenture, or long-term available to secure other needed The Small Loan Advantage program loan, is: financing. is available to all lenders participating • $5 million for businesses that create • Long-term real estate loans are up in SBA’s 7(a) Program for term loans a certain number of jobs or improve to 20-year term, heavy equipment up to $350,000. The program allows the local economy; 10- or 20-year term and are self- lenders to get an indication from SBA • $5 million for businesses that amortizing. on the likelihood of SBA approval of meet a specific public policy goal, Businesses that receive 504 loans are: the request for guaranty based on including veterans; and • Small — net worth under $15 the applicant’s credit score and if the • $5.5 million for manufacturers and million, net profit after taxes under indication is yes, the lender only has to energy public policy projects. $5 million, or meet other SBA size provide SBA with limited information. Recent additions to the program standards. That does not mean the applicant can allow $5.5 million for each project • Organized for-profit. provide the lender with less information that reduces the borrower’s energy • Most types of business — retail, consumption by at least 10 percent; about their request for financial service, wholesale or manufacturing. and $5.5 million for each project that assistance than the lender normally The SBA’s 504 Certified Development generates renewable energy fuels, such requires. Companies serve their communities by as biodiesel or ethanol production. financing business expansion needs. The Community Advantage pilot Projects eligible for up to $5.5 million Their professional staffs work directly program opens up 7(a) lending to under one of these two requirements with borrowers to tailor a financing mission-focused, community-based do not have to meet the job creation package that meets program guidelines lenders – such as Community or retention requirement, so long as Development Financial Institutions the CDC portfolio average is at least and the credit capacity of the borrower’s (CDFIs), Certified Development $65,000. business. For information, visit Companies (CDCs), and microlenders • Eligible project costs are limited www.sba.gov/504. – who provide technical assistance to long-term, fixed assets such and economic development support in as land and building (occupied Florida Business Development underserved markets. The applicants by the borrower) and substantial Corporation machinery and equipment. ALP/PCLP and lender each has SBA forms to 6801 Lake Worth Rd., Ste. 209 complete before SBA can provide the • Most borrowers are required Lake Worth, FL 33467 lender with a determination on whether to make an injection (borrower Contact: Emmanuel J. Manos, President or not the request for guaranty is contribution) of just 10 percent 561-433-0233 • 561-433-8545 F a x approved. which allows the business to [email protected] More information on both programs is conserve valuable operating capital. www.fbdc.net available at www.sba.gov/advantage. A further injection of 5 percent is needed if the business is a start-up

or new (less than two years old), and a further injection of 5 percent

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 27 Florida First Capital Finance Corporation estate. Interest rates are negotiated ALP/PCLP between the borrower and the SURETY BOND 1351 N. Gadsden St. intermediary. The maximum term for a Tallahassee, FL 32303 GUARANTEE PROGRAM microloan is six years. The Surety Bond Guarantee Program Contact: Todd G. Kocourek, CEO The program also provides business- is a public-private partnership between 888-320-5504 • 850-681-3699 F a x based training and technical assistance the federal government and surety [email protected] to microborrowers and potential www.ffcfc.com microborrowers to help them be companies to provide small businesses successful at starting or growing their with the bonding assistance necessary Gulfcoast Business Finance, Inc. for them to compete for public and ALP/PCLP businesses. Such training and technical assistance may include general business private contracting and subcontracting 227 Second Ave. N. opportunities. The guarantee provides St. Petersburg, FL 33701 education, assistance with business Contact: Ron Reuss, President planning industry-specific training, an incentive for sureties to bond small 800-850-2504 • 727-822-2504 Fax and other types of training support. businesses that would otherwise be [email protected] Entrepreneurs and small business unable to obtain bonding. The program www.gulfcoastbiz.com owners interested in small amounts is aimed at small businesses that lack of business financing should contact the working capital or performance Independent Development Services the nearest SBA district office for track record necessary to secure Corporation information about the nearest Microloan bonding on a reasonable basis through ALP Program Intermediary Lender or go to regular commercial channels. 8280 College Pkwy., Ste. 204 www.sba.gov/microloans. Fort Myers, FL 33919-4113 Through this program, the SBA Contact: Thomas Wallace, President guarantees bid, payment, performance 239-652-5588 • 239-652-9988 Fax ACCION USA and ancillary bonds issued by surety [email protected] 2828 Coral Way, Ste. 200 companies for individual contracts and Miami, FL 33145

CAPITAL www.idscorp.org Contact: Fabiana Estrada, Director subcontracts up to $6.5 million. The 305-548-3360 ext. 1822 SBA reimburses sureties between 70 Tampa Bay Economic Development and 90 percent of losses sustained if a Corporation (TEDCO) Marcia Maia, Loan Consultant 7402 N. 56th St., Ste. 425 305-548-3360 ext. 1823 contractor defaults on the contract. On Tampa, FL 33617 www.accionusa.org Federal contracts, SBA can guarantee Contact: Ken Hornung, President Counties Served: All in Florida. bonds on contracts up to $10 million, if 813-984-8105 • 813-914-8810 Fax the contracting officer certifies that a [email protected] Central Florida Community Development guarantee would be in the best interest www.tedcoloans.com Corporation 847 Orange Ave. of the Government. Daytona Beach, FL 32114 SBA has two program components, Business Development Corporation of the Prior Approval Program and the Northeast Florida Contact: Gerald Chester

644 Cesery Blvd., Ste. 100 877-258-7520 • 386-238-3428 Fax Preferred Surety Bond Program. In Jacksonville, Fl 32211 www.cfcdc.com the Prior Approval Program, the SBA Contact: Steven E. Mahaven, Exec. Director Counties Served: Brevard, Volusia and guarantees 90 percent of surety’s paid 904-724-7455 • 904-724-7457 F a x St. Johns. losses and expenses on bonded contracts [email protected] Partners For Self Employment, Inc. up to $100,000, and on bonded contracts greater than $100,000 that are Essential Capital Finance, Inc. 3000 Biscayne Blvd., Ste. 215 Miami, FL 33137 awarded to socially and economically 1300 Riverplace Blvd., Ste. 105 disadvantaged concerns, HUBZone Jacksonville, FL 32207 Contact: Cornell Crews, Program Director 305-438-1407 ext. 215 contractors, and veterans, and Contact: Cleve Warren, President & CEO 904-398-9411 • 904-398-4995 F a x 305-438-1411 Fax service-disabled veteran-owned small [email protected] www.partnersforselfemployment.com businesses. All other bonds guaranteed www.essential capital.net Counties Served: Broward, Miami-Dade and in the Prior Approval Program receive Monroe. an 80 percent guarantee. Sureties must The Center for Enterprise Opportunity obtain the SBA’s prior approval for MICROLOAN PROGRAM each bond guarantee issued. Under the The Microloan program provides 2200 N. Florida Mango, Ste. 401 Preferred Program, the SBA guarantees small loans ranging from under $500 West Palm Beach, FL 33409 561-478-2337 • 561-478-2339 Fax 70 percent, and sureties may issue, to $50,000 to women, low-income, Contact: Lia Gaines, Executive Director minority, veteran, and other small monitor and service bonds without the www.ceoventures.org SBA’s prior approval. business owners through a network Counties Served: Hendry, Indian River, of approximately 160 intermediaries Martin, Palm Beach, Okeechobee and nationwide. Under this program, the St. Lucie. SMALL BUSINESS SBA makes funds available to nonprofit intermediaries that, in turn, make the Black Business Investment Fund of INVESTMENT COMPANY small loans directly to entrepreneurs, Central Florida (BBIF) PROGRAM including veterans. Proceeds can be 315 E. Robinson St., Ste. 660 08 North Garden Ave. There are a variety of alternatives to used for typical business purposes such bank financing for small businesses. as working capital, or the purchase of Orlando, FL 32601 The Small Business Investment furniture, fixtures, machinery, supplies, Contact: Inez Long Company (SBIC) program fills the gap equipment, and inventory. Microloans 407-649-4780 • 407-649-8688 Fax Counties Served: Lake, Osceola and Orange. between what owners can fund directly may not be used for the purchase of real and the needs of the small business for

28 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida funding for award to small business and non-profit research institution partners. Central to the program is expansion of public/private sector partnerships to include joint venture opportunities for small business and the nation’s premier nonprofit research institutions. Small business has long been where innovation and innovators thrive, but the risk and expense of conducting serious R&D efforts can be beyond the means of many small businesses. Non-profit research laboratories are also instrumental in developing high-tech innovations, but frequently innovation is confined to the theoretical. STTR combines the strengths of both entities by introducing entrepreneurial

skills to high-tech research efforts. CAPITAL The technologies and products are transferred from the laboratory to the marketplace. The small business profits growth capital. Licensed and regulated • Be 51 percent owned and from the commercialization, which, in by the SBA, SBICs are privately owned controlled by one or more turn, stimulates the U.S. economy. and managed investment funds that individuals who are U.S. citizens make capital available to qualifying or permanent resident aliens in STTR Requirements U.S. small businesses. The funds raise the U.S. or be a for-profit business Small businesses must meet private capital and can receive SBA- concern that is at least 51 percent the following eligibility criteria to guaranteed leverage up to three times owned and controlled by another participate in the STTR program. private capital, with a leverage ceiling of for-profit business concern that • Be 51 percent owned and $150 million per SBIC and $225 million is at least 51 percent owned controlled by one or more for two or more licenses under common and controlled by one or more individuals who are U.S. citizens control. Licensed SBICs are for-profit individuals who are citizens of, or or permanent resident aliens in investment firms whose incentive is to permanent resident aliens in, the the U.S. share in the success of a small business. U.S. • Be for-profit. The SBIC program provides funding • Be for-profit. • Principal researcher need not be for a broad range of industries. Some • Principal researcher must be employed by the small business. SBICs invest in a particular field or employed by the small business. • Company size cannot exceed • Company size cannot exceed 500 industry while others invest more 500 employees. (No size limit for employees. generally. For more information, visit nonprofit research institution). For more information on the SBIR www.sba.gov/inv. The nonproft research institution program visit www.sba.gov/sbir. partner must also meet certain eligibility criteria: SMALL BUSINESS Participating Agencies • Be located in the United States Each year, the following eleven and be one of the following: INNOVATION RESEARCH federal departments and agencies are • Nonprofit college or university. PROGRAM required to reserve 2.5 percent of their • Domestic nonprofit research The Small Business Innovation extramural R&D funds for award to organization. Research (SBIR) program encourages small businesses through the SBIR • Federally funded R&D center. small businesses to advance their program: Departments of Agriculture; technical potential from funds Commerce; Defense; Education; Participating Agencies committed by federal agencies with Energy; Health and Human Services; Each year the following five Federal large extramural research and Homeland Security; Transportation; departments and agencies are required development budgets. The SBIR Environmental Protection Agency; by STTR to reserve 0.3 percent of their program serves to fund the critical National Aeronautics and Space extramural R&D funds for award to startup and development stages Administration; and National Science small business/nonprofit research for a technology and encourages Foundation. institution partnerships: Department commercialization of the technology, of Defense; Department of Energy; product or service. In turn, this Department of Health and Human stimulates the U.S. economy. SMALL BUSINESS Services; National Aeronautics and TECHNOLOGY TRANSFER Space Administration; and National SBIR Requirements Science Foundation. Small businesses must meet PROGRAM the following eligibility criteria to The Small Business Technology participate in the SBIR program. Transfer (STTR) program reserves a specific percentage of federal R&D

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 29 SBA ONLINE: WEB-BASED TOOLS FOR BUSINESS OWNERS The old adage “time is money” is perhaps one of the most pertinent statements that you can apply to small business owners. Whether you’re starting a business or managing a growing one, entrepreneurs and business owners wear many hats and have many questions:

• What laws and regulations apply to my business? • How do I start to write a business plan? • Where can I get help with X, Y and Z? statistics about your business and steps to cut through the guesswork Many of us invariably turn to our its competition. Just enter your and quickly find out if you qualify networks and the Internet to find industry, city, state and other for government contracting answers. But how can you trust that details. SizeUp then runs various opportunities. SBA also offers the information you are getting is truly reports and provides maps and other resources including applicable to your business and, let’s data related to your competition, government contracting face it, even accurate? suppliers and customers. It also training courses, and guides As part of its mission to help highlights potential advertising to help you register as a

CAPITAL business owners start, succeed and opportunities. contractor. grow, SBA, through the SBA.gov website has developed numerous 2. Build a Business Plan Tool 4. Events Calendar - Locate Business online tools and guides to help Business planning can seem a Training and Seminars small businesses get information daunting task, but it doesn’t have SBA and its partners, including and answers they need quickly and to be that way. To help you plan Small Business Development efficiently. For example, these and steer your business, this new Centers, Women’s Business 10 Steps to Starting a Business “Build a Business Plan” tool Centers, and SCORE, hold and these 10 Steps to Hiring your guides you through the process hundreds of small business First Employee guides are essential of creating a basic, downloadable training seminars and workshops reading. SBA Direct is another useful business plan. The great thing across the country. Until now, about it is you can build a plan there was no single repository tool that personalizes business owners’ in smaller chunks of time, save for these events. Now, with experience on the SBA.gov website. your progress and return at your SBA’s Events Calendar, you Then there are the Licenses and leisure. can quickly find and sign up for Permits Search Tool and the Loans training. Enter a date range and/ and Grants Search Tool. To use the tool, simply log or zip code to locate events in your into SBA.gov (registration is area. Results are filtered by topic New Online Tools to Help Business Owners free, sign up here) and enter such as “starting a business,” Plan, Manage and Grow information into a template “managing a business,” “business Over the past couple of months, the for each section of the business planning,” and “financing a SBA has expanded its capacity and plan including, market analysis, business.” selection of tools and information that company description and financial business owners need by developing projections. The tool is secure a whole range of new online features! and confidential and will keep Check them out: your plan on record for up to six months. You can also save, 1. Get to Know Your Market and download or email the plan at any Competition Better with the SizeUp Tool time. Want to know how your business stacks up against the competition? 3. Size Standards Tool - Find Out Fast if You Where your potential competitors Qualify for Government Contracts are located? Where the best places In order to be eligible to sell to are to advertise your business? the government and compete These are all critical inputs for small business “set-aside” for your business plan and can contracts, business owners had to also help back up any financing rummage through various rules applications. and matrices to find out if their business is truly “small” according Now with the new SizeUp tool you to SBA size standards. Now, can crunch millions of data points with this new Size Standards and get customizable reports and Tool, you can follow three simple

30 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida Use of Proceeds in SBA Loan Programs SRAl.Gov Ways Borrowers Can Use The Money US. Small Business Administration (Information current as of 04/26/2013)

Program Who Qualifies Use of Proceeds Maturity Maximum Loan Structure Benefit to Amount Borrower Basic 7(a) For-profit Acquire land; purchase Based on the use A basic 7(a) can Term loans with one Obtains businesses that can existing building; convert, of proceeds and be for as much monthly payment of financing not meet SBA’s size expand or renovate buildings; borrower’s ability to as $5 million. principal and interest otherwise standards, nature construct new buildings; repay. Not based on SBA’s limit to any (P&I). Borrower available, of business, use acquire and install fixed collateral. Maximum one business is contribution required. fixed maturity, of proceeds, credit assets; acquire inventory; maturity: 10 years for $3.75 million so Interest rate depends available when elsewhere, and purchase supplies and working capital a business can upon how lender collateral is other miscellaneous raw materials; purchase a (seven years is have multiple loans applies for guaranty limited. Can eligibility factors. business, start a business, common), 10 years guaranteed by SBA (see lender program establish leasehold improvements, term for fixed assets, but the SBA portion chart), Cannot revolve, or re-affirm working capital; and under 25 years for real cannot exceed no balloon or call relationship certain conditions to refinance estate. $3.75 million. provisions. with lender. certain outstanding debts. International Same as basic Acquire, renovate, modernize Same as basic 7(a). Same as basic Same as basic 7(a). Same as basic Trade Loan 7(a). Plus, business facilities or equipment 7(a), but when 7(a). Plus, CAPITAL (ITL) must be engaged or used in making products borrower has both long-term preparing to engage or services to be exported. international trade financing for in exporting or be Plus, for permanent working and working capital export related adversely affected capital and to refinance loans, guaranteed fixed assets by competition from business debts currently on by the SBA, the and working imports. unreasonable terms. limit to any one capital. business can be $4 million. Export Same as basic 7(a). Short-term working capital for Can be up to a Same as basic Finance single or Provides Working Plus, must be in export purposes, including maximum of 36 7(a). multiple transactions. American Capital Loans business one year ability to support an Export months but generally Interest paid monthly, exporters with (EWCP) and engaged or Stand-By Letter of Credit. 12 months or less. principal paid as line of credit preparing to engage payments from items that can be in exporting. shipped overseas separated are collected. Can from domestic be renewed annually. operations line Extra fees apply. of credit. Percentage of guaranty up to 90%. Generally revolving. Seasonal Same as basic To finance the seasonal 10 years Same as basic Short-term financing Provides CAPlines 7(a). Plus, in increases of accounts 7(a). for seasonal activities opportunity business for at receivable, inventory and to be repaid at the for seasonal least one year and labor. end of the season businesses to can demonstrate when payment for the get seasonal seasonal financing seasonal activity is financing not needs. made to business. otherwise available. Contract Same as basic 7(a). To finance the cost of one or 10 years Same as basic Short-term financing Provides CAPlines Plus, will perform more specific contract, sub- 7(a). for performance of opportunity for on contract or contract, or purchase order, approved contract, contractors and purchase order for including overhead or general sub-contract, or sub-contractors some third party and administrative expenses, purchase order to be to get financing buyer. allocable to the specific repaid when payment not otherwise contract(s). for the activity is made available. to business. Can be revolving or not. Builders Same as basic For the direct expenses Maximum of three Same as basic Short-term financing to Provides CAPlines 7(a). Plus, building/ related to the construction years to disburse 7(a). build or renovate home opportunity for renovating and/or “substantial” renovation and build or or building for sale to residential and residential or costs of specific residential renovate. Extension unknown third party. commercial commercial or commercial buildings possible to “Substantial” means builders to structure for re-sale for resale, including labor, accommodate sale. rehabilitation expenses get financing without knowing supplies, materials, equipment of more than one-third not otherwise buyer at time of rental, direct fees. The cost of of the purchase price available. approval. land is potentially eligible. or fair market value at the time of application. Can be revolving or not.

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 31 Use of Proceeds in SBA Loan Programs continued SBAl_GQV Ways Borrowers Can Use The Money U. S, Small Business Administration (Information current as of 04/26/2013)

Program Who Qualifies Use of Proceeds Maturity Maximum Loan Structure Benefit to Amount Borrower Working Same as basic For short-term working 10 years Same as basic Lender has latitude Provides Capital 7(a). Plus, business capital and operating needs. 7(a). with structuring opportunity for CAPlines needing short term Proceeds must not be used principal payments. businesses that revolving line of to pay delinquent withholding Borrower should sell on credit to credit. taxes or similar trust funds discuss with lender. get revolving (state sales taxes, etc.) or for Must be revolving. financing not floor planning. Extra fees apply. otherwise available. Dealer Floor Same as basic 7(a). For the acquisition of Minimum one year $5 million. Revolving Floor Provides Plan Pilot Plus, businesses inventory at wholesale Maximum five years Minimum loan size: Plan financing. opportunity for (Effective engaged in retail prices for retail re-sale that is $500,000 Disbursement to businesses through Sept. sales of inventory classified as titleable inventory acquire floor plan needing floor 30, 2013) requiring floor (auto, motorcycle, boat, RV, inventory, repayment plan financing plan financing trailers, and manufactured immediately after item when such requirements. homes). of inventory is sold. financing Potential high degree may not be of lender monitoring otherwise with corresponding available. extra servicing fees. CAPITAL Lender Businesses needing Working capital If revolving, seven- Depends upon how Structure is established Has availability Structured a line of credit. year maximum, the lender chooses by individual lender. for a line Line of Credit including term out to apply for an of credit to period. SBA Guaranty. help with the Generally up to short-term cash $350,000. needs of the business. Non-7(a) Programs 504 Loan Businesses that can For the acquisition of long- Based on the use of Based on the use Loans packaged by Fees under Program meet the SBA’s size term fixed assets, equipment proceeds. of proceeds. Certified Development 3 percent, long- standards, nature with a useful life of at least Twenty years for real Twenty years for Companies (CDC) and term fixed rate, of business, use 10 years; refinance loan-term estate. real estate. designed to finance low borrower of proceeds, credit fixed asset debt under certain Ten years for Ten years for up to 40 percent of a contribution, full elsewhere, and conditions; working capital machinery and machinery and “project 1” secured amortization other miscellaneous under certain conditions; to equipment. equipment. with a 2nd position with no call factors. reduce energy consumption; lien. Another loan or balloon and to upgrade renewable from a third party conditions. energy sources. lender financing up to 50 percent of the same project secured in 1st position, and borrower contribution of at least 10 percent. Extra contributions for special purpose properties and new businesses. Microloan Same as basic Same as basic 7(a). Plus, Shortest term $50,000 to the The SBA provides Direct loan Program 7(a). Plus, start-up funds to establish nonprofit possible, not to small business at a loan to a nonprofit from nonprofit nonprofit child-care child-care centers. exceed six years. any given time. micro-lender called intermediary businesses. an “intermediary” who lender, fixed- uses the proceeds rate financing, to make microloans can be very to small businesses. small loan Technical assistance amounts, can also be provided. and technical assistance is available.

1 “Project” is the purchase or lease, and/or improvement or renovation of long term fixed assets by a small business, with 504 financing, for use in its business operations.

All SBA programs and services are provided on a nondiscriminatory basis.

32 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida Lender’s Program Chart SM.Gov Ways Lenders Can Request Guarantees U.S. Small Business Administration (Information current as of 04/26/2013) Te chart below explains the rules for lenders for various SBA-backed loans to borrowers. Processing Which Lenders Types of Use of Maximum Allowable Eligibility Analysis Credit Analysis Maximum Loan Program Qualify Proceeds Loans that Interest Rates Amount can be Guaranteed Standard Lenders that Basic 7(a). International Base rate is Wall Street Lender completes Lender to cover Maximum loan Processing have an executed trade, export working Journal prime, LIBOR* eligibility questionnaire all aspects of $5 million. participation capital, all CAPlines, one month rate plus and SBA reviews prudent credit Loans up to agreement with the dealer floor plan. 3 percent, or SBA Peg eligibility during loan analysis with $150,000 SBA. rate. Plus, an allowable processing. emphasis on guaranteed up to spread from 2.25 to applicant’s ability 85 percent; loans 2.75 percent based on to repay loan over $150,000 term. Lender can add from operation. guaranteed up to 2 percent if loan is SBA conducts 75 percent. $25,000 or less, and analysis of Business with 1 percent if $25,001 to lender’s work. multiple SBA $50,000. Can be fixed loans may get or variable. some variations.

Certified Same as Standard Same as Standard Same as Standard 7(a). Same as Standard 7(a). Same as Maximum loan CAPITAL Lender 7(a). Plus, an processing except no Standard 7(a) $5 million. Program executed CLP policy exceptions. except SBA Guaranty (CLP) agreement. reviews lender’s percentage same Processing work, not a re- as Standard 7(a). analysis. Preferred Same as Standard Same as Standard Same as Standard 7(a). Lender completes Delegated to Maximum loan Lender 7(a). Plus, an processing except Eligibility Checklist (SBA lender. $5 million. Program executed PLP restrictions on loans Form 7). Guaranty (PLP) agreement. involving some types of percentage same

Processing debt refinancing. as Standard 7(a). SBA Express Same as Standard Basic 7(a) with If $50,000 or less, Lender completes SBA Delegated to Maximum loan Processing 7(a). Plus, an restrictions on some cannot exceed prime Form 1920SX (Part C) lender. $350,000. executed SBA types of debt refinancing. + 6.5 percent. If over “Eligibility Information.” Guaranty Express Plus, lender structured $50,000, cannot exceed percentage agreement. term and revolving loans. prime + 4.5 percent. 50 percent. Prime may be lender prime. Patriot Same as Standard Basic 7(a) except Same as Standard 7(a) Lender completes SBA Delegated to Maximum loan Express 7(a). Plus, either restrictions on some except Prime may be Form 1920SX (Part C) lender. $500,000. Processing an executed PLP types of refinancing. Lender Internal Prime. “Eligibility Information.” Guaranty or SBA Express Must be member of the percentage same Agreement. military community. as Standard 7(a). Export Same as Standard Similar to export working If $50,000 or less, cannot Lender completes SBA Delegated to Maximum loan Express 7(a). Plus, an capital loans and exceed prime + 6.5 Form 1920SX (Part C) lender. $500,000. Processing executed international trade loans percent. If over $50,000, “Eligibility Information.” Guaranty Export Express which meet export related cannot exceed prime + percentage same Agreement. eligibility criteria. 4.5 percent. Prime may as Standard 7(a). be lender prime. Small/Rural Same as Standard Basic 7(a) except Same as Standard 7(a). Lender completes Similar to Maximum loan Lender 7(a). Plus, separate restrictions on some SBA Form 2301 Standard 7(a) $350,000. Advantage approval based on types of refinancing. (Part C) “Eligibility except credit Guaranty having processed Questionnaire.” factors to percentage same 20 or fewer SBA consider are as Standard 7(a). loans annually over more defined. the last three fiscal years. Community Same as Standard Basic 7(a) except Prime plus 6 percent. Non-Delegated Lenders Similar to Maximum loan Advantage 7(a). Plus, an restrictions on some complete SBA Form Standard 7(a) $250,000. executed types of refinancing. 2301 (Part C). except credit Guaranty Community Delegated Lenders factors to percentage same Advantage complete SBA Form consider are as Standard 7(a). Agreement. 2301 (Part D). more defined. Small Loan Same as Basic 7(a) except Same as Standard 7(a). Lender completes SBA Similar to Maximum loan Advantage Standard 7(a) restrictions on some Form 1920SX (Part C) Standard 7(a) $350,000. and having PLP types of refinancing. “Eligibility Information.” except credit Guaranty and/or Express factors to percentage same Agreement consider are as Standard 7(a). provides added more defined. benefit to lender. All SBA programs and services are provided on a nondiscriminatory basis. * London InterBank Offered Rate

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 33 Take Advantage of What the SBA Offers

SBA has something to offer every entrepreneur and small For small businesses that are already successful, but have business owner across America. We have spent the past the potential for further growth, the SBA created the three years making our programs more streamlined and Emerging Leaders (formerly e200) program. This training more simplifed. initiative focuses on executives of established businesses, currently poised for growth from communities around Whether you are an older employee ready to begin a the country. The program provides these executives second career by starting your own business or a veteran with the organizational framework, resource network, returning from active duty service and interested in and motivation needed to build a sustainable business entrepreneurship, SBA can help. of size and scale. SBA has focused this program in historically underserved geographic areas, including Native SBA offers programs and services ranging from assisting American communities, and the result has been new jobs, with drafting a business plan, guidance on obtaining a investment and a more sustainable economic base in government contract to what it takes to start exporting. distressed areas.

Our goal is to make it as easy as possible for small For businesses located in underserved markets, SBA has businesses in every industry to fnd the resources and created the Small Loan Advantage (SLA) program which tools they need. One way we have helped small business encourages SBA lenders to make lower-dollar loans, often owners learn about the programs and tools available to benefting businesses in underserved communities, and them is through the creation of Business.USA.gov. We the Community Advantage initiative which increases worked jointly with the Department of Commerce to the number of SBA lenders that reach underserved develop a website where businesses could easily navigate communities. SBA’s Historically Underutilized Business and fnd resources across the federal government. We are Zones program can also help small businesses in urban confdent this centralized, one-stop platform will make and rural communities take advantage of preferential it easier than ever for businesses to take advantage of access to federal procurement opportunities. programs and services. If you are a small business interested in developing or For women who own small businesses, SBA offers expanding your exporting businesses, SBA has a number specialized training and counseling at Women Business of loan programs, including our Export Express Program Centers around the country. The Women-Owned Small and Export Working Capital Program that can help small FEATURE Business Federal Contract program that was created in businesses access loans for exporting quickly and easily. 2011 allows contracting offcers to set aside certain federal contracts for women-owned small businesses. For veteran entrepreneurs, in addition to loan programs and federal contracting set-asides, SBA has recently If you are a young entrepreneur, SBA has a program for launched the Boots to Business program which provides you whether it is a specialized online training course, videos, training and courses on entrepreneurship for an in-person event targeted at encouraging young transitioning service members. Based on the success we entrepreneurs to start their own businesses, or training on have seen, SBA is growing this program in 2013. small business opportunities through Jobs Corps Centers around the country through SBA’s partnership with the As you can see from this variety of programs and Department of Labor. For those who may no longer fall initiatives, SBA has something for everyone interested into the category of young entrepreneur, this year SBA in starting or growing small businesses. SBA and its launched a campaign to target entrepreneurs ages 50 nationwide network of resource partners help millions of and older. Through this initiative, SBA and AARP have small businesses each year start, grow and succeed, but committed to jointly counsel, train or mentor over 100,000 there are millions more small businesses out there that new and existing “Encore Entrepreneurs” over the next need SBA assistance. SBA’s mission this year is to help year. even more small businesses owners and entrepreneurs achieve their dreams. While some small businesses need signifcant funding to expand, other small businesses may only need small After streamlining and improving our programs over the loans to grow and create jobs. SBA’s microloan program past few years, we feel confdent that all small businesses, provides small, short-term loans to small businesses. The regardless of industry, can take advantage of one of average microloan amount is about $13,000, which allows SBA’s programs. SBA is committed to making sure that small businesses to take advantage of these loans for the agency has something to offer each and every small working capital, or purchasing inventory or machinery. business owner.

34 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida CONTRACTING Applying for Government Contracts

The U.S. government is the largest performance of the contract. It provides CONTRACTING single purchaser of goods and services HOW GOVERNMENT maximum incentive for the contractor in the world, buying everything from CONTRACTING WORKS to control costs and perform effectively armored tanks to paper clips. Every Sealed bidding vs. Negotiation and imposes a minimum administrative year, the federal government awards There are two methods the burden upon the contracting parties. more than $500 billion in contracts, and government uses to purchase goods This type of contract is used in all a significant share of those contracts are and services, sealed bidding and sealed bid and some negotiated specifically allotted to small businesses. negotiation. The first method, sealed procurements. The Small Business Administration bidding, involves issuing an invitation Cost reimbursement contracts provide works with agencies to award at least for bid by a procuring agency. Under for the payment of allowable costs 23 percent of all prime government the sealed bidding method, a contract incurred by the contractor, to the extent contracts to small businesses, with is awarded to a responsible bidder stated in the contract. The contract specific statutory goals for small whose bid, conforming to the invitation establishes a ceiling price, above which disadvantaged businesses (SDB), for bids, will be most advantageous to a contractor may not exceed without the businesses that are women-owned the government, considering only price approval of the contracting officer. Cost (WOSB) or service-disabled veteran- and the price-related factors included reimbursement contracts are commonly owned (SDVOSB), and businesses that in the invitation for bid. The second used in research and development are located in historically underutilized method, negotiation, involves issuing a contracts. business zones (HUBZone). request for proposal (RFP) or request Some contracts do not fit neatly into The agency ensures that small for quotation (RFQ). The business with these two categories, such as time businesses have access to long-lasting the best proposal in terms of technical and material contracts (prices for development opportunities, which content, best value, price and other hourly wages are fixed but the hours means working with small businesses factors generally wins the contract. are estimated) and letter contracts to help them stay competitive, as (authorizes a contractor to begin work well as encouraging federal agencies Types of Contracts on an urgent requirement). to award more contracts to small Firm fixed-price contracts place businesses. The SBA features outreach the full responsibility for the costs Small Business Set-Asides programs, matchmaking events, and A “set-aside” for small businesses and risk of loss on the contractor. online training opportunities; and reserves an acquisition exclusively for Firm fixed-price contracts do not helps agencies identify contracting small business participation. There permit any adjustment on the basis opportunities for small businesses. are two ways in which set-asides can of the contractor’s costs during the be determined. First, if an acquisition

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 35 of goods or services has an anticipated prime contractors must submit a The SBA is responsible for: dollar value of at least $3,000 but not subcontracting plan describing how they • Determining whether or not exceeding $150,000, it is automatically will successfully subcontract to small individual concerns are qualified reserved for small businesses. The businesses. HUBZone small business concerns; acquisition will be set aside only if the To find subcontracting opportunities, • Maintaining a list of qualified contracting officer determines there a list of federal prime solicitations is HUBZone small business concerns are two or more responsible small listed under the U.S. Small Business for use by acquisition agencies businesses that are competitive in terms Administration Subcontracting Network in awarding contracts under the of market prices, quality and delivery. (SUBNET) web.sba.gov/subnet/search/ program; Second, if an acquisition of goods or index.cfm and through the General • Adjudicating protests and appeals services is more than $150,000, and Services Administration (GSA) at of eligibility to receive HUBZone contracts. if it is likely offers will be obtained www.gsa.gov/portal/content/101195. from at least two responsible small Research the list of prime contractors For additional information, visit businesses, and if awards will be made and determine which are best suited www.sba.gov/hubzone. at fair market prices, the acquisition is to your business. Develop a marketing reserved exclusively for small business. strategy, and then contact the Small 8(a) BUSINESS DEVELOPMENT Reasonable expectations of small Business Liaison Officer (SBLO) PROGRAM business competition may be evaluated listed for each prime to schedule an The 8(a) Business Development using past acquisition history of an item appointment. program is a nine-year program or similar items. established to assist eligible socially and There are several exceptions and economically disadvantaged individuals unique rules for specific kinds of small SBA CONTRACTING to develop and grow their businesses. businesses and industries. For Research PROGRAMS Business development assistance and Development (R&D) small business includes one-on-one counseling, training set-asides, there must be reasonable HUBZONE The Historically Underutilized workshops, match-making opportunities expectation of obtaining from small with federal buyers and other businesses the best scientific and Business Zones (HUBZone) program helps small businesses located in management and technical guidance. technological sources consistent with the There is a statutory requirement that demands of the proposed acquisition. distressed urban and rural communities gain access to federal set-aside contracts small disadvantaged business concerns For small business set-asides other be awarded not less than 5 percent of than for construction services, any and sole source contracts, as well as a price evaluation preference in full and the total value of all prime contract business proposing to furnish a product awards. All firms that become eligible that it did not manufacture must open contract competitions. There is a statutory goal that HUBZone small for SBA’s 8(a) business development furnish the product of a small business assistance are also considered small manufacturer unless the SBA has business concerns be awarded not less than 3 percent of the total value of all disadvantaged business concerns for the granted either a waiver or exception to prime contract awards. The HUBZone purpose of federal contracting. this requirement. In industries where program also establishes preference To be eligible for the 8(a) Business the SBA finds that there are no small for award of federal contracts to small Development program, a business must business manufacturers, it may issue a businesses in these areas. To qualify for meet the following criteria: waiver to this non-manufacturer rule. the program, a business (except those • It must be a small business by SBA Waivers permit small businesses to that are tribally-owned) must meet the size standards; provide any domestic firm’s product. following criteria: • It must be owned (at least 51 South Florida District Offce • It must be a small business by SBA percent) by one or more individuals Procurement Center Representative size standards who qualify as socially and Government Contracting, Area III economically disadvantaged, and CONTRACTING • It must be owned and controlled at least 51 percent by U.S. citizens, who are U.S. citizens of good Scott Nirk or a Community Development character; 100 S. Biscayne Blvd., 7th Fl. • It must be controlled, managed, Miami, FL 33131 Corporation (CDC), an agricultural cooperative, or an Indian tribe and operated full-time by one or 305-536-5521 ext. 158 more individuals who qualify as [email protected] • Its principal office must be located within a “Historically Underutilized disadvantaged, and; Business Zone,” which includes • It must demonstrate potential Subcontracting lands considered “Indian Country” for success (generally by being in Subcontracting opportunities are a and military facilities closed by the business for at least two full years) great resource for small businesses, Base Realignment and Closure Act and have the capacity to perform on especially for those not ready to bid as • At least 35 percent of its employees government and non-government prime contractors. Experience gained must reside in a HUBZone. contracts before applying. from subcontracting with a federal Existing businesses that choose to Socially disadvantaged individuals prime contractor can better prepare move to qualified areas are eligible are those who have been subjected to businesses to bid for prime contracts. to apply for certification. To fulfill racial or ethnic prejudice or cultural Current regulations stipulate that the requirement that 35 percent of a bias because of their identity as a for contracts offering subcontracting HUBZone firm’s employees reside in member of a group without regard opportunities over $650,000 for goods a HUBZone, employees must live in a to their individual capabilities. The and services, or $1.5 million for primary residence at a place for at least following individuals are presumed construction, large business prime 180 days, or as a currently registered to be socially disadvantaged: Black contractors must offer maximum voter, and with intent to live there Americans, Native Americans, Alaska practicable subcontracting opportunities indefinitely. Natives or Native Hawaiians, Hispanic to small businesses. Large business Americans, Asian Pacific Americans,

36 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida and Subcontinent Asian Americans. An individual who is not a member of one of these groups must establish WHAT YOU SHOULD KNOW individual social disadvantage by a preponderance of evidence. ABOUT YOUR BUSINESS Economically disadvantaged individuals To be eligible to bid on a federal 3. Do you fall under a specifc are socially disadvantaged individuals contract, you must know your certifcation? whose ability to compete in the free- business. Answer the following three Under the umbrella of “small enterprise system has been impaired questions: business,” SBA has outlined several due to diminished capital and credit specific certifications that businesses opportunities as compared to others in 1. Are you a small business? may fall under. These certifications the same or similar line of business who Is your small business: are divided into two categories: are not socially disadvantaged. • Organized for profit? Firms owned by Alaska Native • Located in the U.S.? Corporations, Indian tribes, Native SBA-Certifed and Self-Certifed. • Operated primarily within the U.S. or The SBA-Certified Programs were Hawaiian organizations, and making a significant contribution to created to assist specific businesses Community Development Corporations the U.S. economy through payment can also apply to the SBA for 8(a) of taxes or use of American products, in securing federal contracts and business development assistance. materials, or labor? therefore can only be issued by SBA So that approved firms can obtain • Independently owned and operated? administrators. For the Self-Certified training, counseling, and business • Not dominant in the field of operation Programs, you can determine for development assistance, SBA designates in which it is bidding for government yourself if your business meets the a staff person at a local SBA district contracts? requirements by referring to the office, geographically near the business • A sole proprietorship, partnership, Federal Acquisition Regulation (FAR). to coordinate the firm’s business corporation, or any other legal form? Just as Congress has given federal development assistance. If the first six criteria apply to your agencies a goal of procuring 23 SBA is responsible for: business, ask yourself the second percent of federal contracts from • Determining whether a business important question to find out if small businesses, so too must federal qualifies for the 8(a) Business your business meets size standard agencies meet specific contracting Development program; requirements. goals for other categories of small • Determining whether a business continues to qualify, during the 2. What is the size standard for your firms. These goals are: • 23 percent of contracts for Small nine-year term; business? Businesses • Approving Mentor/Protégé Size standards are used to • 5 percent of contracts to Small agreements between 8(a) firms and determine whether a business is small large businesses; Disadvantaged Businesses or “other than small.” Size standards • 5 percent to Women-Owned Small • Providing technical guidance and vary depending upon the industry. CONTRACTING business development assistance Businesses To determine the size standard for • 3 percent to Service-Disabled Veteran- during the nine-year term. your business, you will need a North For additional information, visit Owned Small Businesses American Industry Classification code • 3 percent to HUBZone Small www.sba.gov/8a. (NAICS). Every federal agency uses Businesses these codes when considering your Federal agencies have a strong SMALL DISADVANTAGED business. To determine your NAICS incentive to fulfill these contracting BUSINESS code, go to www.census.gov/eos/www/naics/. goals. You should apply for those Some SBA programs require their SBA-Certified and Self-Certified A Small Disadvantaged Business own unique size standards. To find out programs for which you qualify (SDB) is defined as a small business more about these requirements and that is at least 51 percent owned and to take advantage of contracting other size standard information, go to opportunities. controlled by one or more individuals www.sba.gov/size. who are socially and economically disadvantaged. The SDVOSB protest is administered There is a federal government-wide SERVICE-DISABLED VETERAN- by SBA to ensure that only businesses goal of awarding at least 5 percent of owned by service-disabled veterans prime contracting dollars to SDBs each OWNED SMALL BUSINESS The Service-Disabled Veteran- receive contracts reserved exclusively year. Large prime contractors must Owned Small Business (SDVOSB) for them. When a business’s SDVOSB also establish a subcontracting goal for program has a federal government- self-certification is challenged, the SDBs in their subcontracting plans. wide goal of awarding at least 3 SBA determines if the business meets Firms self-certify as SDB without percent of prime and subcontracting the status, ownership and control submitting any application to the SBA; dollars to Service-Disabled Veteran- requirements. however, firms approved by the SBA Owned Small Businesses each year. To determine your eligibility, into the 8(a) Business Development Large prime contractors must also contact your local veterans’ business program are automatically certified establish a subcontracting goal for development officer, visit the as an SDB. To self-certify, firms Veteran-Owned Small Businesses in various program websites, or contact should update their System for Award their subcontracting plans. These SBA’s Office of Veterans Business Management (SAM), previously CCR subcontracting goals are reviewed at Development at www.sba.gov/about- profiles. time of proposal by both the contracting offces-content/1/2985. officer and the SBA prior to the award of a contract.

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 37 or more women. The women must be WOMEN-OWNED U.S. citizens. The firm must be “small” PROCUREMENT TECHNICAL SMALL BUSINESS in its primary industry in accordance ASSISTANCE CENTERS (PTACs) FEDERAL CONTRACT PROGRAM with SBA’s size standards for that The following Procurement Technical On October 7, 2010, the SBA industry. To be deemed “economically Assistance Centers (PTACs) provide published a final rule effective disadvantaged” its owners must local, in-person counseling and training February 4, 2011, aimed at expanding demonstrate economic disadvantage in services. They are designed to provide federal contracting opportunities for accordance with the requirements set technical assistance to businesses that women-owned small businesses. The forth in the final rule. For additional want to sell products and services to Women-Owned Small Business (WOSB) information, visit www.sba.gov/wosb. federal, state, and/or local governments. Federal Contract program authorizes Large prime contractors must also PTAC services are available either free contracting officers to set aside certain establish a subcontracting goal for of charge, or at a nominal cost: federal contracts for eligible women- Woman-Owned Small Businesses in their Subcontracting Plans. These University of West Florida owned businesses and economically Florida SBDC Network disadvantaged women-owned small subcontracting goals are reviewed at 11000 University Pkwy., Bldg. 38 businesses. time of proposal by both the contracting Pensacola, FL 32514 To be eligible, a firm must be at least officer and the SBA prior to the award 850-473-7806 51 percent owned or controlled by one of a contract. Program Headquarters Jane Dowgwillo - Florida PTAC Program Mgr. 850-473-7806 [email protected] http://www.fptac.org University of West Florida - Miami Offce 8500 S.W. 8th St., Ste. 224 Miami, FL 33144 866-737-7232 Chaynea Cox - Procurement Specialist [email protected] Florida Gulf Coast University Lutgert College of Business, Unit 2313 10501 FGCU Blvd. S. Ft. Myers, FL 33965-6565 239-745-3708 Dan Telep - Procurement Specialist 239-745-3708 [email protected] Palm Beach State College 3000 Saint Lucie Ave., Bldg. AD, Rm. 308 Boca Raton, FL 33431 561-862-4782 Jackie Rule - Procurement Specialist 561-862-4781 [email protected] Carole Hart - Procurement Specialist 561-862-4782 CONTRACTING [email protected] University of Central Florida 3201 E. Colonial Dr., Ste. A-20 Orlando, FL 32803 407-420-4850 Tony Espinosa - Assistant Director 407-420-4850 [email protected] University of Central Florida 601 Innovation Way Daytona Beach, FL 32114 386-872-3100 Derek Hudson - Procurement Specialist 386-872-3100 [email protected] University of South Florida 1101 Channelside Dr., Ste. 210 Tampa, FL 33602-3613 813-905-5800 Charlene Bostic - Procurement Specialist 813-905-5800 [email protected]

38 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida GETTING STARTED IN CONTRACTING Once you have identified the important 5. Register with the System for Award 7. Make Sure Your Business is information regarding your business, it is Management (SAM), formerly the Financially Sound time to start the process of procuring a Central Contractor Registration (CCR) This critical step is absolutely necessary government contract. The SAM is an online federal to make sure that your business is 1. Identify your DUNS (Data Universal government maintained database of financially prepared for the journey Numbering System) Number companies wanting to do business with ahead. Even if you are able to obtain a To register your business, obtain a the federal government. Agencies search government contract, you will not be DUNS number used to identify and track the database for prospective vendors. receiving all of the money at once. It millions of businesses. You can Register at SAM.gov. helps to have a clear plan of how your obtain your free DUNS number when After completing registration, you will business will stage the benefits of the registering with the System for Award be asked to enter your small business contract. Management. Log on to www.sam.gov profile information through the SBA 8. Search Federal Business Opportunities for more information or by contacting Supplemental Page. The information will (FedBizOpps) for Contracting Dun & Bradstreet at www.dnb.com. be displayed in the Dynamic Small Opportunities Business Search. 2. Identify your EIN FedBizOpps, is an online service operated Creating a profile in SAM and keeping it (Employer Identifcation Number) by the federal government that current ensures your firm has access An EIN, otherwise known as a federal tax announces available business to federal contracting opportunities. opportunities. FedBizOpps helps identify identification number, is generally Entering your small business profile, required of all businesses. For more including your business information the needs of federal agencies and information, go to www.irs.gov. and key word description, allows available contracting opportunities. 3. Identify your NAICS (North American contracting officers, prime contractors, To begin searching for contracting Industry Classifcation) codes and buyers from state and local opportunities, go to www.fbo.gov. The NAICS codes are used to classify the governments to learn about your 9. Marketing Your Business industry a particular business occupies. company. Registering your business is not enough You will need at least one NAICS code to 6. Register with the GSA Schedule to obtain a federal contract; you will need complete your registration, but be sure to The GSA (General Services to market your business to attract federal list as many as apply. You may also add Administration) Multiple Award Schedule agencies. Tips for good marketing are: or change NAICS codes at any time. Visit (aka Federal Supply Schedule) is used by • Determine which federal agencies www.census.gov/eos/www/naics/ to find GSA to establish long-term, government- buy your product or service, and NAICS codes. wide contracts with commercial firms. get to know them; 4. Identify your SIC (Standard Industrial Once these contracts are established, • Identify the contracting Classifcation) codes government agencies can order the procedures of those agencies; The SIC codes are four-digit numbers supplies and services they need directly • Focus on opportunities in your that are used to classify the industry a from the firms through the use of an niche and prioritize them. CONTRACTING particular business occupies. While online shopping tool. Becoming a GSA • Although not required, you may want NAICS codes have largely replaced SIC schedule contractor increases your to obtain a PSC (Product Services codes, you will still need to provide your opportunity for contracts across all levels Code) and/or a FSC (Federal Supply SIC code. SIC codes can be found at of government. Businesses interested in Classification). These codes provide www.osha.gov/pls/imis/sicsearch.html. becoming GSA schedule contractors additional information about the should review the information available services and products your business at www.gsa.gov/schedules. offers.

ADDITIONAL PROCUREMENT RESOURCES

The following federal procurement • Procurement Center Representatives • Department of Defense (The DoD is resources may also be of assistance: (PCR) and Commercial Marketing the largest purchaser of goods from • The Certifcates of Competency (CoC) Representatives (CMR): PCRs work small businesses): program allows a small business, to increase the small business share www.acq.osd.mil/osbp/ which is the apparent successful of federal procurement awards. • Offce of Federal Procurement Policy: offeror, to appeal a contracting officer’s CMRs offer many services to small www.whitehouse.gov/omb/procurement_default businesses, including counseling on non-responsibility determination that • Acquisition Forecast: how to obtain subcontracts. To find a it is unable to fulfill the requirements www.acquisition.gov/comp/procurement PCR or CMR near you, go to _forecasts/index.html of a specific government contract. The www.sba.gov/content/procurement-center- • Federal Supply Schedule (FSS): SBA will conduct a detailed review representatives.

of the firm’s technical and financial • PTACs (Procurement Technical www.gsa.gov capabilities to perform on the contract. Assistance Centers): PTACs provide • GSA Center for Acquisition Excellence: If the business demonstrates the assistance to businesses that want to www.gsa.gov/portal/content/103487 capability to perform, the SBA issues sell products and services to federal, a Certificate of Competency to the state, and/or local government. To contracting officer, requiring award of find a PTAC in your state, go to that contract to the small business. www.dla.mil/SmallBusiness/Pages/ptap.aspx.

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 39 SBA DISASTER ASSISTANCE Knowing the Types of Assistance Available for Recovery

he disaster program is or renters may apply for a loan up of whether there was any physical SBA’s largest direct loan to $40,000 to help repair or replace damage. The loan limit is $2 million. program, and the only SBA personal property, such as clothing, The EIDL helps small businesses meet program for entities other furniture or automobiles, lost in the ordinary and necessary operating than small businesses. SBA disaster. Businesses and private, expenses as they recover from a disaster. Tis responsible for providing affordable, nonprofit organizations of any size may The limit for physical and EIDL loans timely and accessible financial apply for a loan up to $2 million (actual combined is $2 million. assistance to homeowners, renters, non- loan amounts are based on the amount The Military Reservists Economic farm businesses of all sizes and private, of uncompensated damage) to repair Injury Disaster Loan is a working nonprofit organizations following or replace real property, machinery, capital loan for small businesses facing declared disasters. equipment, fixtures, inventory and financial loss when the owner or an The SBA is authorized by the Small leasehold improvements. essential employee is called up to active Business Act to make two types of The SBA may increase a loan up to duty in their role as a military reservist. disaster loans: 20 percent of the total amount of The loan limit is $2 million and the disaster damage to real estate as business can use the funds to cover Physical Disaster Loans verified by SBA to make improvements operating expenses until the essential Physical Disaster Loans are that protect the property from similar employee or business owner is released the primary source of funding for future disasters. from active duty.

DISASTER ASSISTANCE DISASTER permanent rebuilding and replacement The SBA can only approve disaster of uninsured or underinsured disaster- Economic Injury Disaster Loans loans to applicants having an acceptable caused damages to privately-owned Economic Injury Disaster Loans credit history and repayment ability. real and/or personal property. SBA’s provide the necessary working capital The terms of each loan are established physical disaster loans are available to after a declared disaster until normal in accordance with each borrower’s homeowners, renters, businesses of all operations resume. Small businesses, ability to repay. The law gives SBA sizes and private nonprofit organizations small agricultural cooperatives, small several powerful tools to make disaster of all sizes. A homeowner may apply businesses engaged in aquaculture loans affordable: low-interest rates for a loan of up to $200,000 to repair (fisheries, for example) and private (around 4 percent), long-terms (up to or replace the primary residence to its nonprofit organizations of all sizes are 30 years), and refinancing of prior liens pre-disaster condition. Homeowners eligible to apply for the EIDL, regardless (in some cases). As required by law, the

40 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida previous webinars, and download checklists that give you tips on risk assessment, evacuation plans and flood preparedness, that will help you develop a solid business continuity plan. Meanwhile, here are a few preparedness tips to consider: • Review Your Insurance Coverage. Contact your insurance agent to find out if your coverage is right for your business and make sure you understand the policy limits. Ask about Business Interruption Insurance, which compensates you for lost income and covers operating expenses if your company has to temporarily shut down after a disaster. • Establish a solid supply chain. If all your vital external vendors and suppliers are local and if the disaster is significantly widespread, you’ll all be in the same boat, struggling to recover. It’s a good idea to diversify your list of vendors for key supplies to companies outside your area or internationally, if possible. Create a contact list for important contractors and vendors you plan to use in an emergency and find out if those suppliers have a recovery plan in place. Keep this list with other documents filed in a place that’s accessible, and also at a interest rate for each loan is based on business will be able to recover sooner, protected off-site location. SBA’s determination of whether the without taking on new debt. • Plan for an alternate location. Do applicant has credit available elsewhere Assessing your risks and needs are some research well in advance of the disaster for several alternative -- the ability to borrow or use their own an important first step in developing places to relocate your company resources to recover from the disaster. your business continuity strategy. The in the event a disaster forces you More information on all of SBA’s American Red Cross’ Ready Rating™ to shut down indefinitely. Some DISASTER ASSISTANCE disaster assistance programs, including program (www.readyrating.org) is a options include contacting a local information for military reservists, is free online tool that helps businesses real estate agent to get a list of available at www.sba.gov/disaster. get prepared for disaster and other available vacant office space. Make emergencies. With Ready Rating you an agreement with a neighboring Disaster Preparedness can evaluate your level of disaster business to share office space if For small businesses, recovering from readiness, and you’ll get customized disaster strikes. If possible, make a disaster doesn’t begin with clearing feedback on how to establish or expand plans for employees to telecommute the debris and returning to work. your disaster plan. until the office has been rebuilt. Imagine stepping into your store, or Another useful site -- Ready.gov The financial and emotional cost of restaurant, or the office where you run (www.ready.gov) -- provides practical rebuilding a business after a disaster your business, a day or two after the disaster preparedness tips and checklists can be overwhelming. However, with a fire has been contained, the tornado has for homeowners, renters and businesses. business continuity plan in place, you’ll passed, or floodwaters have receded. SBA has teamed up with Agility be able to rebound and reopen quickly, First come the questions: “How much Recovery Solutions to offer business and in a better position to contribute will it cost to rebuild? Will my insurance continuity strategies through the to the economic recovery of your cover all this? How will I pay my “PrepareMyBusiness” website community. employees and vendors and cover the (www.preparemybusiness.org) and As small businesses are leading bills during the recovery phase?” monthly disaster planning webinars. America’s economic recovery, many of Now is a good time to start, or update Previous topics — presented by them are investing time and money and test your business continuity plan. experts in their fields — have included into their plans to grow and create And while SBA disaster loans go a long crisis communications, testing the jobs. Developing a strong disaster way toward revitalizing communities preparedness plan, and using social preparedness plan should be a critical devastated by the economic fallout media to enhance small business and integral piece of those efforts. that follows disasters, with a solid recovery. At the website you can Planning for a disaster is the best way of preparedness plan in place, your sign up for future webinars, view limiting its effects.

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 41 ADVOCACY AND OMBUDSMAN Watching Out for Small Business Interests

jurisdictions and small nonprofit enforcement from small business OFFICE OF ADVOCACY organizations), and consider regulatory owners, nonprofit organizations and The SBA’s Office of Advocacy, the alternatives that minimize the economic small government entities. Comments “small business watchdog” of the burden on small entities. are forwarded to federal agencies for government, examines the role and Advocacy’s mission is enhanced by review, and in some cases fines may status of small business in the economy a team of regional advocates, located be lowered or eliminated and decisions and independently represents the views in the SBA’s 10 regions. They are changed in favor of the small business of small business to federal agencies, advocacy’s direct link to small business owners. Each year the National Congress, the president and federal owners, state and local government Ombudsman files a report with the appellate courts as friends of the court. entities, and organizations that U.S. Congress on the responsiveness The advocacy office compiles and support the interests of small entities. of federal agencies regarding their interprets statistics on small business The regional advocates help identify actions of regulatory and compliance and is the primary entity within the regulatory concerns of small business enforcement on small businesses. federal government to disseminate by monitoring the impact of federal and To request help, send the National small business data. state policies at the grassroots level. Ombudsman a complete Federal Agency Headed by the chief counsel for Learn more about the Office of Comment Form. You may do this advocacy, the office also funds outside Advocacy at www.sba.gov/advocacy. online at www.sba.gov/ombudsman; by research of small business issues fax at 202-481-5719; or by mail at 409 and produces numerous publications Third Street S.W., Mail Code 2120, to inform policy makers about the OFFICE OF THE NATIONAL Washington, D.C. 20416. ADVOCACY AND OMBUDSMAN important role of small businesses OMBUDSMAN The Ombudsman also coordinates 10 in the economy and the impact If excessive fines, penalties or Regional Regulatory Fairness Boards of government policies on small unfair regulatory enforcement by that meet regularly to receive comments businesses. In addition, the office federal agencies are problems for your about federal regulations affecting small monitors federal agency compliance small business, you have a voice in businesses. with the Regulatory Flexibility Act Washington, D.C., through the SBA’s Learn more about the National – the law that requires agencies to Office of the National Ombudsman. Ombudsman at www.sba.gov/ombudsman analyze the impact of their proposed The ombudsman receives comments or call 888-REG-FAIR. regulations on small entities (including regarding federal regulatory small businesses, small governmental

42 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida ADDITIONAL RESOURCES Taking Care of Startup Logistics

professional is vital in determining an adequate and appropriate level of protection for your business. Property – There are many different types of property insurance and levels of coverage available. It is important to determine the property insurance you need to ensure the continuation of your business and the level of insurance you need to replace or rebuild. You must also understand the terms of the insurance, including any limitations or waivers of coverage. Business Interruption – While property insurance may pay enough to replace damaged or destroyed equipment or buildings, how will you pay costs such as taxes, utilities and other continuing expenses during the period between when the damage occurs and when the property is ven if you are running a FICTITIOUS BUSINESS NAME replaced? Business Interruption (or small home-based business, “business income”) insurance can you will have to comply Registering your business name, after doing a search to make sure that provide sufficient funds to pay your with many local, state and fixed expenses during a period of time federal regulations. Avoid it is not already in use, protects you from others who might want to use when your business is not operational. Ethe temptation to ignore regulatory “Key Man” – If you (and/or any the same name. For more information, details. Doing so may avert some red other individual) are so critical to tape in the short term, but could be contact the county clerk’s office in the county where your business is based. the operation of your business that it an obstacle as your business grows. cannot continue in the event of your Taking the time to research the If you are a corporation, you’ll need to check with the state. illness or death, you should consider applicable regulations is as important “key man” insurance. This type of as knowing your market. Bear in mind policy is frequently required by banks that regulations vary by industry. If BUSINESS INSURANCE or government loan programs. It also you’re in the food-service business, Like home insurance, business can be used to provide continuity for example, you will have to deal insurance protects your business of operations during a period of with the health department. If you against fire, theft and other losses. ownership transition caused by the use chemical solvents, you will have Contact your insurance agent or death, incapacitation or absence due environmental compliances to meet. broker. It is prudent for any business to a Title 10 military activation of an Carefully investigate the regulations to purchase a number of basic types owner or other “key” employee. that affect your industry. Being of insurance. Some types of coverage Automobile – It is obvious that

out of compliance could leave you are required by law, others simply a vehicle owned by your business ADDITIONAL RESOURCES unprotected legally, lead to expensive make good business sense. The types of should be insured for both liability penalties and jeopardize your insurance listed below are among the and replacement purposes. What is business. most commonly used and are merely a less obvious is that you may need starting point for evaluating the needs special insurance (called “non-owned of your business. automobile coverage”) if you use your BUSINESS LICENSES Liability Insurance – Businesses There are many types of licenses, personal vehicle on company business. may incur various forms of liability This policy covers the business’ both state and local as well as in conducting their normal activities. professional. Depending on what you liability for any damage which may One of the most common types is result from such usage. do and where you plan to operate, product liability, which may be your business may be required to Officer and Director – Under most incurred when a customer suffers state laws, officers and directors of a have various state and/or municipal harm from using the product. There licenses, certificates or permits. corporation may become personally are many other types of liability, liable for their actions on behalf of the Licenses are typically administered which are frequently related to specific by a variety of state and local company. This type of policy covers industries. Liability law is constantly this liability. departments. Consult your state or changing. An analysis of your liability local government for assistance. insurance needs by a competent

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 43 Home Office – If you are establishing an office in your home, it is a good idea to contact your homeowners’ insurance company to update your policy to include coverage for office equipment. This coverage is not automatically included in a standard homeowner’s policy.

TAXES Taxes are an important and complex aspect of owning and operating a successful business. Your accountant, payroll person, or tax adviser may be very knowledgeable, but there are still many facets of tax law that you should know. The Internal Revenue Service is a great source for tax information. The IRS has publications, counselors required to report your earnings from Small Business/Self-Employed Tax and workshops available to help you the corporation including salary and Center: www.irs.gov/businesses/small/ sort it out. For more information, other income such as dividends on your index.html. contact the IRS at 800-829-1040 or personal federal income tax return When you are running a business, www.irs.gov. (Form 1040). you don’t need to be a tax expert. However, you do need to know some tax basics. The IRS Small Business/ SALES TAX FEDERAL PAYROLL TAX Self-Employed Tax Center gives you EXEMPTION CERTIFICATE Federal Withholding Tax: Any the information you need to stay tax If you plan to sell products, you business employing a person must compliant so your business can thrive. will need a Sales Tax Exemption register with the IRS and acquire an For Small Business Forms and Certificate. It allows you to purchase EIN and pay federal withholding tax at Publications visit: www.irs.gov/ inventory, or materials, which will least quarterly. File Form SS-4 with the businesses/small /article.html. become part of the product you sell, IRS to obtain your number and required Download multiple small business from suppliers without paying taxes. tax forms. Call 800-829-3676 or and self-employed forms and It requires you to charge sales tax 800-829-1040 if you have questions. publications. to your customers, which you are responsible for remitting to the IRS WEB PRODUCTS FEDERAL PAYROLL TAX state. You will have to pay penalties if it is found that you should have FOR SMALL BUSINESSES (EIN NUMBERS) been taxing your products and now For the most timely and up-to-date An Employer Identification Number owe back taxes to the state. For tax information, go to www.irs.gov/ (EIN), also known as a Federal information on sales tax issues, businesses/small/index.html. Employer Identification Number contact your state government. (FEIN), is used to identify a business entity. Generally, businesses need an VIRTUAL SMALL BUSINESS EIN to pay federal withholding tax. FEDERAL INCOME TAX WORKSHOP You may apply for an EIN in Like the state income tax, the method www.tax.gov/virtualworkshop/ various ways, one of which is to apply of paying federal income taxes depends The Virtual Small Business Tax online at www.irs.gov/businesses/small/ upon your legal form of business. Workshop is the first of a series of article/0,,id= 102767,00.html. This is a Sole Proprietorship: You must file video products designed exclusively free service offered by the Internal IRS Federal Form Schedule C along for small business taxpayers. This Revenue Service. with your personal Federal Income workshop helps business owners Call 800-829-1040 if you have Tax return (Form 1040) and any other understand federal tax obligations. questions. You must check with your applicable forms pertaining to gains or The Virtual Small Business Workshop state to determine if you need a state losses in your business activity. is available on CD at www.irs.gov/ number or charter. Partnership: You must file a Federal businesses/small/article/0,,id=101169,00. Partnership return (Form 1065). This html and online www.irsvideos.gov/ is merely informational to show gross virtualworkshop/ if you are unable to FEDERAL and net earnings of profit and loss. Also, attend a workshop in person. Small SELF-EMPLOYMENT TAX each partner must report his share of business workshops are designed Every employee must pay Social partnership earnings on his individual to help the small business owner Security and Medicare taxes. If you Form 1040 based on the information understand and fulfill their federal are self-employed, your contributions from the K-1 filed with the Form 1065. tax responsibilities. Workshops are made through the self-employment Corporation: You must file a are sponsored and presented by

ADDITIONAL RESOURCES tax. Federal Corporation Income Tax IRS partners who are federal tax return (Form 1120). You will also be specialists.

44 — South Florida Small Business Resource Visit us online: www.sba.gov/southforida Workshop topics vary from a quarterly reports about payroll taxes general overview of taxes to more and other mandatory deductions. You specific topics such as recordkeeping may contact these government agencies and retirement plans. Although for information, assistance and forms. most are free, some workshops have Social Security Administration fees associated with them. Fees 800-772-1213 for a workshop are charged by the www.ssa.gov sponsoring organization, not the IRS. The IRS’s Virtual Small Business Social Security’s Business Services Tax Workshop is an interactive Online resource to help small business owners The Social Security Administration learn about their federal tax rights now provides free electronic services and responsibilities. This educational online at www.socialsecurity.gov/ product, available online and on CD employer/. Once registered for Business consists of nine stand-alone lessons Services Online, business owners or that can be selected and viewed in their authorized representative can: any sequence. A bookmark feature • file W-2s online; and makes it possible to leave and return • verify Social Security numbers to a specific point within the lesson. through the Social Security Number Users also have access to a list of Verification Service, used for all employees prior to preparing and useful online references that enhance submitting Forms W-2. the learning experience by allowing Federal Withholding them to view references and the video U.S. Internal Revenue Service lessons simultaneously. 800-829-1040 Tax Calendar for Small Businesses www.irs.gov and Self-Employed (Publication 1518) www.irs.gov/businesses/small/article/0,,id= Health Insurance Compare plans in your area at 176080,00.html. www.healthcare.gov. The Tax Calendar for Small Businesses and Self-Employed Employee Insurance contains useful information on general If you hire employees you may be business taxes, IRS and SSA customer required to provide unemployment or assistance, electronic filing and paying workers’ compensation insurance. options, retirement plans, business publications and forms, common tax employers to determine the employment filing dates, and federal legal holidays. WORKPLACE DISABILITY PROGRAMS eligibility of new hires. It is a safe, Americans with Disabilities Act simple, and secure Internet-based SOCIAL SECURITY CARDS (ADA): For assistance with the ADA, system that electronically verifies the Social Security number and All employees must have a Social call 800-669-3362 or visit www.ada.gov. Security card. It must be signed by its employment eligibility information owner, and you should always ask to reported on Form I-9. E-Verify is see and personally record the Social U.S. CITIZENSHIP AND voluntary in most states and there is no Security number. Failure to do so may IMMIGRATION SERVICES charge to use it. cause your employee to lose benefits and The Federal Immigration Reform and If you are an employer or employee considerable trouble for yourself in back Control Act of 1986 requires employers and would like more information about tracking to uncover the error. to verify employment eligibility of the E-Verify program, please visit Each payday, your employees must new employees. The law obligates www.dhs.gov/E-Verify or contact our ADDITIONAL RESOURCES receive a statement from you telling an employer to process Employment Customer Support staff: 1-888-464-4218 them what deductions were made Eligibility Verification Form I-9. The Monday – Friday 8 a.m. – 5 p.m. and how many dollars were taken out U.S. Citizenship and Immigration E-mail: [email protected] for each legal purpose. This can be Services Office of Business Liaison presented in a variety of ways, including offers a selection of information SAFETY AND HEALTH on the check as a detachable portion bulletins and live assistance through or in the form of an envelope with the the Employer Hotline. For forms call REGULATIONS items printed and spaces for dollar 800-870-3676, for the Employer Hotline All businesses with employees are required to comply with state deductions to be filled in. call 800-357-2099. and federal regulations regarding the protection of employees. The EMPLOYEE CONSIDERATIONS E-Verify: Employment Eligibility Occupational Safety and Health Taxes Verifcation Administration outlines specific health If you have any employees, including E-Verify, operated by the Department and safety standards adopted by the officers of a corporation but not the sole of Homeland Security in partnership U.S. Department of Labor. Call proprietor or partners, you must make with the Social Security Administration, 1-800-321-6742 or visit: www.osha.gov. periodic payments towards, and/or file is the best--and quickest--way for

Visit us online: www.sba.gov/southforida South Florida Small Business Resource — 45 BUILDING CODES, PERMITS AND ZONING BUSINESS ORGANIZATION: It is important to consider zoning regulations when choosing a site Choosing Your Business Structure for your business. You may not be permitted to conduct business out of There are many forms of legal responsible for performing each your home or engage in industrial structure you may choose for your task; what, if any, consultation is activity in a retail district. Contact business. Each legal structure offers needed between partners before the business license office in the city or organizational options with different major decisions, and what happens town where the business is located. tax and liability issues. We suggest when a partner dies. Under a general you research each legal structure partnership each partner is liable for thoroughly and consult a tax all debts of the business. Profits are BAR CODING accountant and/or attorney prior to taxed as income to the partners based Many stores require bar coding on making your decision. on their ownership percentage. packaged products. Many industrial The most common organizational and manufacturing companies use bar structures are sole proprietorships, coding to identify items they receive and Limited Partnership general and limited partnerships and ship. There are several companies that Like a general partnership, a limited liability companies. can assist businesses with bar-coding limited partnership is established by Each structure offers unique tax and needs. You may want to talk with an an agreement between two or more liability benefits. If you’re uncertain SBDC, SCORE or WBC counselor for persons. However, there are two types which business format is right for you, more information. of partners. you may want to discuss options with a • A general partner has greater control business counselor or attorney. in some aspects of the partnership. Federal Registration of Trademarks For example, only a general partner and Copyrights Sole Proprietorship can decide to dissolve the partnership. Trademarks or service marks are One person operating a business as General partners have no limits on the dividends they can receive from words, phrases, symbols, designs or an individual is a sole proprietorship. combinations thereof that identify profit so they incur unlimited liability. It’s the most common form of business • Limited partners can only receive and distinguish the source of goods. organization. Profits are taxed as a share of profits based on the Trademarks may be registered at both income to the owner personally. The proportional amount of their the state and federal level. To register a personal tax rate is usually lower than investment, and liability is similarly federal trademark, contact: the corporate tax rate. The owner limited in proportion to their investment. U.S. Patent and Trademark Offce: has complete control of the business, P.O. Box 1450 Alexandria, VA 22313-1450 but faces unlimited liability for its LLCs and LLPs 800-786-9199 debts. There is very little government The limited liability company is www.uspto.gov/ regulation or reporting required with a relatively new business form. It this business structure. combines selected corporate and Trademark Information Hotline 703-308-9000 partnership characteristics while General Partnership still maintaining status as a legal A partnership exists when two entity distinct from its owners. As a STATE REGISTRATION or more persons join together in separate entity it can acquire assets, the operation and management incur liabilities and conduct business. OF A TRADEMARK of a business. Partnerships are It limits liability for the owners. The Trademarks and service marks may subject to relatively little regulation limited liability partnership is similar be registered in a state. and are fairly easy to establish. A to the LLC, but it is for professional Caution: Federally registered formal partnership agreement is organizations. trademarks may conflict with and recommended to address potential supersede state registered business and conflicts such as: who will be product names. Patents U.S. Patent and Trademark Office. For things are expressed. For general A patent is the grant of a property more information, contact the: information contact: right to the inventor by the U.S. Patent U.S. Patent and Trademark Offce U.S. Copyright Offce and Trademark Office. It provides the 800-786-9199 • www.uspto.gov U.S. Library of Congress owner with the right to exclude others James Madison Memorial Building from making, using, offering for sale or Copyrights Washington, DC 20559 selling the patented item in the United Copyrights protect original works of 202-707-9100 - Order Line 202-707-3000 - Information Line States. authorship including literary, dramatic, www.copyright.gov Additional information is provided in musical and artistic, and certain other the publications, General Information intellectual works. Copyrights do Concerning Patents and other not protect facts, ideas and systems, publications distributed through the although it may protect the way these ADDITIONAL RESOURCES

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PORT CHARLOTTE CoC SEMINOLE CoC TARPON SPRINGS CoC YBOR CITY CoC 941-627-2222 • 941-627-9730 F 727-392-3245 • 727-455-0285 F 727-937-6109 • 727-937-2879 F 813-248-3712 • 813-247-1764 F PUERTO RICAN CoC SEMINOLE COUNTY CoC TITUSVILLE AREA CoC ZEPHYRHILLS CoC OF BROWARD COUNTY 407-333-4748 • 407-829-2100 F 321-267-3036 • 321-264-0127 F 813-782-1913 • 813-783-6060 F 954-559-5355 • 954-983-5327 F SO. FLORIDA/BROWARD INT’L CoC TREASURE ISLAND CoC PUERTO RICAN CoC OF SOUTH FLORIDA 561-542-8664 • 561-362-8227 F 727-360-4121 • 727-360-4609 F 305-571-8006 • 305-571-8007 F SOUTH FLORIDA HISPANIC CoC VENICE CoC PUERTO RICAN CoC SARASOTA/ OF SOUTH FLORIDA 941-488-2236 • 941-484-5903 F MANATEE RUSKIN COC 305-534-1903 • 305-534-8365 F VENICE CoC 813-645-3808 • 813-645-2099 F ST. CLOUD CoC 941-488-2236 • 941-484-5903 F SAFETY HARBOR CoC 407-892-3671 • 407-892-5289 F WELLINGTON CoC 727-726-2890 • 727-726-2733 F ST. PETERSBURG AREA CoC 561-792-6525 • 561-792-6200 F SANIBEL/CAPTIVA ISLANDS CoC 727-821-4069 • 727-895-6326 F WEST PASCO CoC 239-472-1080 • 239-472-1070 F STUART/MARTIN COUNTY CoC 727-842-7651 • 727-848-0202 F SARASOTA CoC 772-287-1088 • 772-220-3437 F WESTON AREA CoC 941-955-2508 ext. 235 SUN CITY AREA CoC 954-389-0600 • 954-384-6133 F 941-366-5621 F 813-634-5111 • 813-634-8438 F WINTER HAVEN CoC SEBASTIAN RIVER CoC TAMARAC CoC 863-293-2138 • 863-297-5818 F 772-589-5969 • 772-589-5993 F 954-722-1520 • 954-721-2725 F WOMEN’S CoC SEBRING CoC TAMPA BAY HISPANIC CHAMBER 305-446-6660 • 305-675-8523 F 863-385-8448 • 863-385-8810 F 813-414-9411 • 813-414-0811 F

SUCCESS Lisa Hickey: SBA South Florida District STORY Woman-Owned Small Business Person of the Year When Lisa Hickey took over the ownership scene, they still aren’t noticed. retirement goal and of her father’s business, Douglass Screen “I was in rare company back then but turned over the reins Printers in 1996, she not only faced a today women are on par with men in the to her daughter. But transforming industry driven by technology entrepreneurial world and women-owned before the leadership change but a more daunting challenge: being businesses are providing half the jobs in the change, Hickey a female CEO in an industry where there U.S.” said Hickey. pointed the business were few peers. Douglass Screen Printers became a certified in a direction of “My father brought me into the business woman-owned business in 2002 through greater growth through exporting. in the 1980s so I was very familiar with the National Women Business Owners “In 2010, I took the International Trade the screen printing business,” said Hickey. Corporation, who is inducting Hickey Certificate Training through the Florida SBDC “When I took over as owner, I knew of very into their Hall of Fame this May. Other and the company received a State Trade and few women who owned businesses, and certifications followed. In 2004, she received Export Promotion (STEP) grant that produced none like mine. It’s very important to have a certification through Women’s Business a marketing plan to grow our export portfolio. network of trusted peers”. Enterprise National Council (WBENC). The The trick in our business is to maintain Hickey accepted the challenge and moved State of Florida’s Department of Management diverse product lines and markets so we can forward to grow the business. Today, with Services’ Office of Supplier Diversity Woman focus where the growth is.” three locations, employing more than 45 Owned gave her their certification also in If you were to ask Lisa Hickey what advice people and being ranked in the top 10% 2004. Two years later, she self-certified as she can give to future small business owners, OTHER ASSISTANCE of all screen printing businesses in the a Small Business Enterprise 8(m) Women she’s not afraid to share her experience. In nation, Hickey’s Douglass Screen Printers Owned Small Business under SBA’s woman- fact, she is often asked to be a speaker at is a testament to success. She credits the owned small business contract program. business conferences. There, she tells listeners company’s livelihood with taking advantage “These certifications gave me an additional about the “wisdom list” she shared with her of entrepreneur programs at the Florida competitive advantage as we began to bid for daughter during transition. Small Business Development Center at contracts in the public and private sector,” “Business owners should have a sense the University of South Florida. There she said Hickey. of humanity, compassion, a focus on realized something that she tells every new, According to Hickey, 30% of her business is performance, and a written set of ambitious small business owner. with the Federal government and the balance goals. Once you’re focused on a goal, your “If you want to grow your business, the is private sector. decisions will be driven by that focus. Don’t resources are out there,” said Hickey. “While many of the federal contracts are make a big deal or stress over day-to-day “I did not have all the answers to lead this valued at $1000 or less, they do allow us events or challenges. If your decisions are company when I took over but I reached out to perpetuate long- standing relationships driven by your goal, then there is ultimately for assistance and ultimately I achieved better with the federal agencies. They know our little to question.” She adds, “And if you treat results.” capabilities and they come back to us with others as they wish to be treated, then you Hickey also sought to have Douglass more business,” said Hickey, adding “in fact, will build a lifelong committed team.” Screen Printers designated a woman-owned we are the only screenprinter in the top 50 By her own admission, Hickey is looking business so she could expand through suppliers to the US Government Printing for the next thing to accomplish. Whatever government contracting. Though she says Office and have been for several years”. goal she has her sights on, being a woman the number of women-owned businesses are Just as Hickey succeeded her father as the certainly isn’t going to distract her. more numerous than when she came on the CEO of Douglass, she attained her own

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SUCCESS SBA PARTICIPATING LENDERS SBA STORY Steve Miller: Florida Small Business Person of the Year

Simply put, Steve Miller likes to tinker. didn’t have a charter, I returned to nursing at Once Steve gets an idea in his head, he’s local hospitals. I was getting older but I was not letting it go until after he’s studied it not saving money for my future. “ closely, taken it apart, reassembled the pieces, With the realization of the cold, hard facts and see if he can’t make it perform better. before him, Miller made a very difficult He’s not afraid of getting a little dirt under decision. He gave up his charter business and his fingernails in the process. The Boynton went back to nursing full time. Beach, Fla., registered nurse created his own It wasn’t long after he was back to working small business success in his spare time full time as a nurse when Miller came upon simply by chasing his ideas. a business idea that was the inspiration for “When I started in nursing, more than his next company. Having worked at dozens one of the other nurses told me that I wasn’t of hospitals in several states over a few the sharpest knife in the drawer because I decades, Miller turned his attention toward couldn’t remember step-by-step procedures medical waste and how hospitals recycled the and had to write them down on three-by-five precious metals from used in cardiovascular cards.” said Miller. “So instead of letting their devices. negative remarks get to me, I started to view “Being the seat-of-the-pants type of guy I State of Florida Small Business Person of the myself as a really good spoon and not a knife. am, I wanted to figure out how the cardiology Year Steve Mills receives his award from SBA I realized I needed to find a role where spoon recycling process worked. The various Administrator Karen Mills during National Small qualities were essential because I considered companies involved with recycling provided Business Week ceremonies. myself the best there was.” poor service and I thought that I could do

Miller’s first foray into the business world better.” as best as they can. We also have a profit was establishing a 16-page health resources Miller also received some sage advice and sharing program where everyone benefits magazine that combined both holistic and direction from a no-cost business mentor from business success, and our least paid mainstream medical resources. program through south Florida’s SCORE employee makes over two-and-a-half times “I started the business in my spare time. I network. the minimum wage.” said Miller. didn’t make much money and I eventually “Herb Douglas was my business mentor Miller’s nursing background, sold the magazine.” said Miller. and his guidance and input was crucial,” entrepreneurial spirit and willingness to Working as a registered nurse paid the said Miller. “Small business capital was tinker has led him to develop two medical bills until one day when one of his businesses not my concern as working out of the home devices that he has patented and is awaiting ideas would take off. After leaving the minimized costs, but I don’t think I would be on FDA approval. And unlike television hospital at the end of the day, is when Miller where I am now without Herb’s mentorship warnings not to try something at home, it truly went to work. Needless to say, days and input from the other great staff at shouldn’t be a surprise that Miller tested them were divided by work and sleep but Steve SCORE.” on himself. He is also expanding EPreward didn’t see it that way. Through his own efforts and a lot of into an unused medical product redistribution “I was doing something I enjoyed. So research into recycling and refining processes, business to include unused materials that are working an 80 to 100 hour week did not seem Miller formed Electro-Physiology Reward nearing their shelf expiration date. like it was work. Anyone who is considering or EPreward. Unlike other medical waste “Everything I learned from school, hobbies, opening their own business should pursue companies, Miller says his EPreward is sports, previous jobs and life experiences I something they have a passion for because structured like a co-op for purchasing medical consider as being a ‘tool’ for my next project.” then you won’t notice those long hours,” said catheters from hundreds of hospitals and said Miller. “People may reject a job or a Miller. then provides rebates in a very transparent task because they don’t see the way it will fit Following his own passion for the sea transaction. it to their plans. But you should take those and sailing led Miller to open his own south “The most rewarding part of my business opportunities when they come because they Florida charter sailing business in south is having employees who are successful. I are a chance to add a tool to your personal Florida. can leave the office and do other things and tool belt. There will be a time down the road “I was a contract nurse between charters I know my employees are collaborating and when that skill will be necessary. A person and that’s what allowed me to keep my being productive. I see one of my main with a lot of passion but limited tools won’t charter business.” explained Miller. “That’s roles as a business owner, is to provide them succeed.” how I managed to keep it going. When I with everything they need to do their job

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