U S Small Business Administration SBA Loans to

U. S. Small Business Administration SBA Loans to Finance & Expand Your Business Rhonda Fisher Mississippi District Office

SMALL BUSINESS: Discover New Possibilities!

SBA & America’s Entrepreneurs A Partnership for the 21 st Century

7(a) Loan Guaranty Program • Reduces Lender’s Risk • Assures Repayment • Helps 1000 s obtain financing

SBA Mission Statement Maintain and strengthen the nation’s economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.

SBA Programs And Services • Information to Start and Run your Business • Financial Assistance • Federal government Contracting Assistance • Business Training and Counseling • Disaster Assistance

SBA Loan Programs 7 (a) Guaranteed Loan Program Ø Basic 7(a) Ø SBA Express Ø Patriot Express Ø Gulf Opportunity Ø CAPline Ø Export Working Capital Ø International Trade Ø Export Express Ø Small Loan Advantage Microloan Program 504 Loan Program

7(a) Program § Maximum loan $5 Million § 85% guaranty up to $150, 000 § 75% guaranty above $150, 000 up to $5 Million

Eligibility Factors to Consider: 1. Size and Affiliation 1. Type of Business 1. Use of Proceeds

Size… • Applicant and all affiliates must: – Have a Net-worth less than $15, 000 – Have Net-profit (after taxes) less than $5, 000

Eligible Type of Business: • A Business must be For Profit • One that is Located in the United States • Owned by U. S. Citizens or legal permanent residents

Ineligible Businesses • • • Gambling Real Estate Investment Speculation Lending Activities & life insurance companies Businesses selling through a pyramid plan Illegal Businesses Non-Profit Organizations Businesses providing prurient sexual material Businesses which restrict patronage Businesses owned by individual(s) on probation, parole and with pending criminal charges

Eligible Uses of an SBA Loan Any Legitimate Purpose • Construction • Land & Building • Line of Credit • Leasehold Improvements • Machinery & Equipment • Expansions & Renovations • Inventory & Working Capital • Refinancing Business Debt • Purchasing of Existing Small Business

Ineligible Uses of Loan Proceeds • Speculation • Partial Change of Ownership • Payment to Principals • Delinquent Payroll/Sales Taxes SBA Loan

7(a) Continued § Fees v 2% $150. 0 v 3% $150. 1 -$700. 0 v 3. 5% 700. 0+ v 3. 75% for the portion in excess of $1. 0 Million

Collateral • Personal Guaranty from 20% + owners • A 7(a) loan must be fully secured (or secured to the extent possible) with available collateral (both business and personal).

What to take to the Bank BUSINESS PLAN § The Company § Products & Services § Marketing Strategy § Operations § Management § Proposed Financing § Financials

Mississippi Small Business Development Centers MSBDC State Office B-19 Jeanette Phillips Drive University, MS 38677 -1848 (662) 915 -5001 FAX: (662) 915 -5650 Toll-Free in MS: 1 -800 -725 -7232 e-mail: msbdc@olemiss. edu Website: www. mssbdc. org See Page 10 of the Resource Guide for the Center nearest you!

http: //www. sba. gov/smallbusinessplanner/ind ex. html 19

What SBA Looks For: • Good Character • Feasible Business Plan • Management Expertise & Commitment • Sufficient Funds to Operate on a Sound Financial Basis • Adequate Equity • Repayment Ability

SBAExpress v Underwriter uses own forms v Use bank’s lending policies v Loans or revolving lines of credit to $350, 000 v SBA guaranty is 50%

SBA Express Lenders… Page 19 of the Resource Guide

SBA Patriot Express Loan Program • • Loans up to $500, 000 75% to 85% guarantee Veterans Transition Assistance Program Active Duty Eligible • Reservists/National Guard Current Spouses of any of the above • Widowed spouse of service member or veteran who died during service or of a service connected disability

Gulf Opportunity Pilot Loan Program (GO Loan) • Targeted Relief for Small Businesses up to $150. 0 • SBA’s Most Favorable Guarantee • Streamlined Paperwork for Lenders & Borrowers

GO Loan Eligible Counties Adams Choctaw Copiah George Holmes Jackson Jones Lawrence Lowndes Montgomery Oktibbeha Rankin Smith Warren Wilkinson Amite Claiborne Covington Greene Humphreys Jasper Kemper Leake Madison Neshoba Pearl River Scott Stone Washington Winston Attala Clarke Franklin Hancock Hinds Jefferson Lamar Le. Flore Marion Newton Perry Sharkey Sunflower Wayne Yazoo Carroll Clay Forrest Harrison Issaquena Jefferson Davis Lauderdale Lincoln Monroe Noxubee Pike Simpson Walthall Webster

Other SBA Loan Programs Self Liquidating Lines of Credit Exporting Contractors Seasonal Businesses Business that sells on credit International Trade Loan Program Export Express Loan Program Export WC Loan Program

SBA Contractor’s Capline • Finances the labor and material costs of the specific contract(s) being financed. Proceeds cannot be used to coverhead or general and administrative expenses • Proceeds from the contract receivable assigned to lender • Are able to demonstrate an ability to operate profitably based upon the prior completion of similar contracts

SBA 504 Loan Program Long Term Fixed Asset Financing Local lender 50% SBA/CDC 40% Small Business 10%

504 LOANS - LOAN LIMITS u$5. 0 Million Maximum SBA/CDC share u. Up to $5. 5 Million for manufacturing

CERTIFIED DEVELOPMENT COMPANIES Three Rivers Local Development Company, Inc. Central Mississippi Development Company, Inc. Vernon R. Kelley, Executive Director Thelman L. Anderson P. O. Drawer B 75 South Main Street Pontotoc, Mississippi 38863 Telephone: (662) 4892435 Fax: (601) 489 -6815 Business Email: threerivers@trpdd. com P. O. Box 4935 1170 Lakeland Drive Jackson, Mississippi 39296 -4935 Telephone: (601) 981 -1625 Fax: (601) 981 -1515 Business Email: landerson@cmpdd. org

Small Business Counseling and Training – Partners at Work • Small Business Development Centers (SBDC) www. sba. gov/sbdc • Service Corps of Retired Executives (SCORE) www. score. org • Women’s Business Centers www. sba. gov/services/

SBA Online Assistance • www. sba. gov – Main SBA Website • www. sba. gov/ms - District. Website • www. business. gov – Business Gateway for Federal Resources, Legal & Regulatory Assistance • www. sba. gov/vets - Veteran Website • http: //www. sba. gov/onlinewbc/index. html – Online Women’s Business Centers • www. franchiseregistry. com – SBA Franchise Registry • www. sba. gov/teens - Teen Entrepreneur Guide

Contact Us! ØSBA Mississippi District Office 601 -965 -4378 ØSBA Gulfport Branch Office 228 -863 -4449 ØSBA Answer Desk 1 -800 -8 -ASK-SBA