U S Small Business Administration Financing Your Business

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

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

Financing Your Business Getting Started — Is Entrepreneurship for You? Are you a self-starter? How well do you get along with different personalities? How good are you at making decisions? Do you have the physical and emotional stamina to run a business? How well do you plan and organize? Is your drive strong enough? How will the business affect your family?

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

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

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

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

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

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

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

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

The 7(a) Loan Program • SBA’s primary business loan program • Broad eligibility requirements • Wide range of financing needs • Maximum loan amount of $2 million • Maximum guaranty of $1. 5 million – 75% from $150, 000 to $1. 5 million – 85% of $150, 000 or less

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

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

Financing Your Business 7(a) Loan Program Maximum Interest Rates • Prime + 2. 25% for loans of 7 years or less • Prime + 2. 75% for loans over 7 years • Rates can be higher for smaller loans

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

Financing Your Business SBAExpress • Maximum loan amount: $350, 000 • Maximum guaranty: 50% • Uses: revolving line of credit/ term loan • Maximum interest: Prime +6. 5% for less than $50, 000; Prime +4. 5% for more than $50, 000 • Guaranty fees: vary with amount/ type of loan

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

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

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

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

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

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

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

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

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

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

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

Financing Your Business 504/Certified Development Company • Maximum loan amount: $1. 2 to $4 million • Maximum guaranty: 50% • Project costs: financed by 504 Loan 40% lender finances — 50% equity finances 10 -20% • Uses: long-term; fixed assets • Maturity: generally 10 - 20 years • Maximum interest: fixed rate established when debenture backing sold • Guaranty fees: 0. 5% upfront fee to SBA; other factors may apply

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

Financing Your Business International Trade Financing • 96% of the world’s customers reside outside the U. S. • Conducting foreign business is easier than ever • Global communications enhance business opportunities

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

Financing Your Business Export Working Capital Program • Maximum loan amount: $2 million (may be combined with International Trade Loan) • Maximum guaranty: 90% up to $1. 5 million • Uses: short-term working capital for exporters • Maturity: generally 1 year or 1 transaction cycle • Maximum interest: no cap • Guaranty fees: vary with amount/type/ length of loan

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

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

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

Disaster Recovery for Businesses Physical Disaster Loans for Businesses • Loans of up to $1. 5 million • Businesses of any size Economic Injury Disaster Loans • Loans of up to $1. 5 million • Covers necessary operating expenses curtailed by the disaster Military Reservist Economic Injury Disaster Loans • Loans of up to $1. 5 million • Covers necessary operating expenses because owner or essential employee is federally activated • Loans mature after essential employee is released from active duty

Financing Your Business Development • Programs for women, disadvantaged individuals, service-disabled veterans and others • Assistance to businesses located in disadvantaged areas competing for government contracts • The Small Disadvantaged Business Certification Program • Mentor/Protégé Program

Financing Your Business Your Voice in Government • The SBA Office of Advocacy works to ensure federal rules and regulations do not unfairly affect small business. • The SBA Office of National Ombudsman assists small businesses subjected to unfair audits, fines or enforcement actions.

Financing Your Business SBA on the Internet www. sba. gov • Easy-to-find information to help small businesses start, grow and succeed. • Small Business Training Network — an online virtual campus offering free courses, workshops and resources.

Financing Your Business SBA Dial-Up 1 -800 -U ASK SBA (1 -800 -827 -5722) • A national toll free service providing information about SBA resources and programs • Talk to a business specialist 9 a. m. — 5 p. m. (East Coast Time) • Recorded information available 24/7

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

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