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SBA and Women-Owned Businesses

SBA and Women-Owned Businesses

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Published by: seritwo on Dec 02, 2011
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Small Business Administration

SBA and Women-Owned Businesses

The SBA Advantage — Resources and Programs for Success

The SBA Offers Assistance
Everyday, MILLIONS of entrepreneurs turn to SBA resources and programs
• Since July 30, 1953, the SBA has delivered millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses. • We help you start a business, grow a business, access federal contract opportunities and learn to effectively compete in the market place

Teach Management Skills To Succeed
• Leadership traits
• Decision-making skills

• Ability in managing employees
• Knowledge of marketing basics • Knowing how to forecast for future growth

• Skill in weighing your finances and knowing financing options

Evaluate/ Re-Evaluate Your Business Self
• Are you a self-starter?

• How well do you get along with different personalities? • Are you good at making decisions?
• Do you have the physical/emotional stamina to run a business? • How well do you plan and organize? • Is your drive strong enough? • Are you prepared for how the business might affect your family?

SBA on the Internet

• 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.

What’s at SBA.GOV?

Just for Women on SBA.GOV
• SBA’s Office of Women’s Business Ownership

• The National Women’s Business Council

Our Initiative to reach the “Underserved”
The SBA strives to reach those underserved by our programs including: • Women • Veterans • Native Americans • Young Entrepreneurs • Rural area business owners

How can SBA assistance help you?
• Generally, we at SBA like to explain our assistance as Three “C”s and a “D”
Providing access to CAPITAL Providing access to CONTRACTS Providing access to COUNSELING And offering DISASTER assistance, through direct loans, to help small businesses, homeowners and non-profits recover • We can also give you expert assistance to help you export when you are ready • • • •

What the First “C” Can Do
SBA financial assistance programs can help you: • Start or grow your business • Export your goods and services • Recover from a disaster For small business loans, the SBA is primarily a guarantor of loans made by private lenders and other types of non-profit institutions.

The SBA does not offer grants to start or grow small businesses.

What First “C” Programs SBA Offers
• Small business start-up and working capital loans – 7(a) Loan Program – up to $2 million • Loans for land and buildings – 504 Program – up to $ 5 million • Microloans – up to $35,000 • Surety bonds for small and minority construction contractors • Venture capital investing • Export assistance – loans for working capital • Disaster assistance – Direct Disaster Loans

SBA’s Loan Guaranty Qualifications
• 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 Cost of Capital
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

SBA Micro-Loans
• Maximum loan amount: $35,000 • May be used to purchase machinery, equipment, fixtures, working capital, leasehold improvements; or to increase receivables • Shortest term possible (6 years or less) • These loans usually carry the maximum interest, which is negotiable with the SBA intermediary

The National Export Initiative
International Trade Loan Program
• Maximum loan amount of up to $2 million acquiring longterm, fixed assets or refinancing debt for that purpose • Maximum guaranty of 75% if more than $150,000 85% if less than $150,000
• Maturity up to 25 years, with varying interest

Export Working Capital Program
• Short-term working capital for exporters • Up to $2 million (may be combined) 90% guarantee up to $1.5 million • Generally for one year or one transaction cycle.

SBA’s Second “C” - Counseling
The SBA and its partners provide business counseling and training – and this counseling provides you with a big advantage.
• Your St. Louis SBA District Office
 After Dec. 13 - 222 Spruce St., Suite 10.103, St. Louis

• Grace Hill Women's Development Center, at 2324 North Florissant. (Women’s Business Center) • SCORE- 7 Chapters Across Missouri • SBDCs (or SBDTCs in MO) - 5 Small Business Development and Technical Assistance Centers in the Metro area • St. Louis Veteran’s Business Resource Centers

The 3rd “C” - Contracting
• The Women-Owned Small Business (WOSB) program authorizes contracting officers to set aside certain federal contracts for eligible:
– Women-owned small businesses (WOSBs) or, – Economically disadvantaged women-owned small businesses (EDWOSBs)

• The Federal Acquisition Regulatory Council sets the program regulations in the FAR (part 19) • The SBA implements and administers the program.

The WOSB Contracting Rule
• The New WOSB Rule, implemented in 2011, is part of the Obama Administration’s commitment to expand opportunities for small businesses to compete for federal contracts.

• The rule identified 83 industries in which WOSBs are under-represented or substantially underrepresented in the federal contract marketplace. • It’s another tool to help achieve the statutory goal that 5 percent of federal contracting dollars which are supposed to go to women-owned small businesses.

Impact of the WOSB program
• Levels the playing field for WOSBs to compete for and win federal contracts • Provides procuring agencies a tool to help meet their WOSB contracting goal • Ultimately, the program helps create and retain more jobs for Women Owned Small Business.

Eligibility Requirements for WOSBs
• Meet small business size standard for the primary NAICS code and contract • At least 51% unconditionally and directly owned by women who are U.S. citizens* • The woman must manage the day-to-day operations • The woman must make the long-term decisions for the business • A woman must hold highest officer position • The woman must work at the business full-time during normal working hours

• No minimum amount of time the business has been operational

Eligibility Requirements for EDWOSBs
Same requirements as WOSBs (on previous page) PLUS:

• Personal net worth (assets minus liabilities) is less than $750,000 excluding:
– – – – Ownership in business and primary personal residence Income reinvested or used to pay taxes of business Funds reinvested in IRA or other retirement account* Transferred assets within two years to or on behalf of immediate family member for select purposes**

• Adjusted gross income average over three years is $350,000 or less excluding:
– Income reinvested or used to pay taxes of business

• Fair market value of assets is $6 million or less excluding:
– Funds reinvested in IRA or other official retirement account

Two Ways to Become WOSB Eligible
1) Self-Certification
 Register in CCR as WOSB or EDWOSB  Compile and upload all required documents to the repository, and  Represent your status in ORCA

2) Third Party Certification
(list available at www.sba.gov/wosb)
 You register in CCR as WOSB or EDWOSB  You obtain certification from an SBA-approved third party certifier.

The Third Party Certifier:
 Compiles and uploads all required documents to the repository  Represents your status in ORCA

What is CCR and What Do I Need To Do?
• CCR is an online government-maintained database of companies wanting to do business with the Federal government available at: https://www.bpn.gov/ccr/default.aspx

• To be eligible for a WOSB or EDWOSB setaside you must check the WOSB or EDWOSB box, as appropriate • You must meet ALL requirements to check the box

You Must Also Have an SBA GLS Account
• Go to: https://eweb.sba.gov/gls

• Click on ―Instructions for GLS‖ for information on how to request an account • Go to ―Request SBA User ID‖ to create an account • Then log into your GLS account

What and Where is the WOSB Repository?
• By statute, documents verifying a WOSB or EDWOSBs eligibility must be submitted to the contracting officer (CO) on a bid • Rather than have WOSBs submit documents to a CO each time, the SBA has created a document warehouse • A WOSB’s documents in the repository can be accessed only by the WOSB, SBA and a CO (only with your permission.) • Once logged into GLS, click on “WomenOwned Small Business Program Repository”

What Needs to Be Uploaded?
• Birth certificates, naturalization papers, unexpired passports to verify U.S. citizenship • Copy of JV agreement (if applicable) • Copy of WOSB/EDWOSB Certification (OMB approved form) • DBA certificate • Corporate information relating to verifying ownership by a woman or women • EDWOSBs: All of above andSBA Form 413, Personal Financial Statement for each woman claiming economic disadvantage.

SBA Can Help You Bond Your Contracts
The Surety Bond Guarantee Program with two 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.

Finally a word about the “D”
SBA provides Disaster low-interest loans:
For Homeowners & Renters to Recover • Restore primary residences to pre-disaster conditions and to repair or replace uninsured personal property Physical Disaster Loans for Businesses • Loans of up to $1.5 million for businesses of any size Economic Injury Disaster Loans • Loans of up to $1.5 million to small businesses to cover necessary operating expenses curtailed by the disaster ALSO…Military Reservist Economic Injury Disaster Loans • Funded through the disaster program after the 9/11 conflict, these loans cover necessary operating expenses because owner or essential employee is federally activated

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.

Your SBA
For more information About your local SBA resources go to:

And, follow us on:
FaceBook at SBA Great Plains And Twitter - @SBAGreatPlains

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