1 / 34

U.S. Small Business Administration

U.S. Small Business Administration. Small Business Financing. U.S. Small Business Administration. Indiana District Office Peter D. Smith Lender Relations Specialist (317) 226-7272 x119 Peter.smith@sba.gov. U.S. Small Business Administration. Millions of entrepreneurs use

olina
Télécharger la présentation

U.S. Small Business Administration

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. U.S. Small Business Administration Small Business Financing

  2. U.S. Small Business Administration Indiana District Office Peter D. Smith Lender Relations Specialist (317) 226-7272 x119 Peter.smith@sba.gov

  3. U.S. Small Business Administration Millions of entrepreneurs use SBA resources and programs to: • Start a new business • Grow an existing business • Export goods and services Have you explored the Small Business Advantage?

  4. SBA Loan Guaranty Requirements • Business must qualify as “Small” based on the North American Industry Classification System (NAICS) • Business must be operated for profit • Business must be open to the general public • Owners must be U.S. citizens or have permanent residence status • Owners must make reasonable investment into business, usually 10-25% • Owners must be of good character

  5. What is a Small Business?

  6. What is a Small Business? Alternative Size Standard Maximum tangible net worth not more than $15,000,000 and average net income after taxes for the full 2 fiscal years prior to the application not more than $5,000,000

  7. U.S. Small Business Administration The Role of SBA: • 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.

  8. The 7(a) Loan Program 7(a) Guaranty Loan Program

  9. The 7(a) Loan Program 7(a) Guaranty Loan Program • SBA’s primary business loan program • Wide range of financing needs • Maximum loan amount of $ 5.0 million • Maximum guaranty of $ 3.75 million

  10. The 7(a) Loan Program Uses for 7(a) Loan Proceeds • Expansion/renovation • Land/equipment/fixtures purposes • Working capital • Inventory • Exporting

  11. The 7(a) Loan Program 7(a) Loan Program Maturities • Maximum maturities • Up to 7 years for working capital • Useful life or 10 years for equipment • Up to 25 years for real estate

  12. The 7(a) Loan Program 7(a) Loan Program Maximum Interest Rates • Base Rate + 2.25% for loansof 7 years or less • Base Rate + 2.75% for • loans over 7 years • Rates can be higherfor smaller loans

  13. The 7(a) Loan Program Three Options for Base Rate • Prime Rate* • LIBOR (One month)* • SBA Peg Rate • * Rate in effect on first business day of the month

  14. The 7(a) Loan Program Maximum Rate Examples • $75,000 – 10 year loan • Prime Rate: 3.25% + 2.75% = 6.00 % • LIBOR (One month): .24% + 2.75% + 3.00% = 5.99% • SBA Peg Rate: 2.25% + 2.75% = 5.00% • 3.00% added to One Month Libor

  15. The 7(a) Loan Program 7(a) Loan Program Guaranty Fees • Based on guaranteed portion • Fee = 2% to 3.75% • Maturity 12 months or less – fee = ¼%

  16. The 7(a) Loan Program 7(a) Guaranty Fee Examples • $30,000 loan 85% SBA guaranty • $30,000 x 85% = $25,500 guaranteed portion • $25,500 x 2% = $510 guaranty fee • $1,000,000 loan 75% SBA guaranty • $1,000,000 x 75% = $750,000 guaranteed portion • $750,000 x 3.5% = $26,250 guaranty fee

  17. SBA Express • Streamlined approval process • Loans of $350,000 or less • Credit not reviewed by SBA • Term or revolving loans • Lender uses own bank forms • Lender must be pre-approved

  18. Patriot Express • For members of the Military Community • Maximum loan amount $500,000 • Term or revolving loans • One day SBA Approval

  19. PatriotExpress • Veterans • Service-disabled veterans • Soon to be discharged active-duty service members • Reservists and National Guard members • Current spouse of: • any Veteran (other than dishonorably discharged), • any Service-Disabled Veteran, • any Active Duty Military member, or • any Reservist or National Guard member • Widowed spouse of: • a service member who died while in service, or • a veteran (other than dishonorably discharged) who died of a service-connected disability Eligible participants:

  20. Express & Patriot Express Collateral Policies • No collateral required under $25,000 • Lenders use existing collateral policy for loans between $25,000 up to $350,000 • Lenders must take all available collateral for PE loans greater than $350,000

  21. The 7(a) Loan Program CapLines • Short-term/seasonal revolving line of credit • Maximum loan amount: $ 5.0 million • Maturity: up to 5 years • Maximum interest: vary with amount/type/length of loan

  22. International Trade Loan Program The 7(a) Loan Program • Maximum loan amount: $ 5.0 million • 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

  23. Export Working Capital Program The 7(a) Loan Program • Maximum loan amount: $ 5 million (may be combined with International Trade Loan) • Uses: short-term working capital for exporters • Maturity: generally 1 year or 1 transaction cycle • Maximum interest: no cap

  24. The 504 CDC Loan Program 504 Certified Development Company Loan Program

  25. The 504 CDC Loan Program 504/Certified Development Company Loan Program • Project costs: 504 CDC Loan 30% to 40% • Third party lender 50% • Borrower injection 10% to 20% • Maximum debenture amount: $5.0 to $5.5 million • Uses: long-term; fixed assets • Maturity: 10 or 20 years • Maximum interest: fixed rate established when debenture backing sold

  26. The 504 CDC Loan Program 504/Certified Development Company Loan Program Example of $1 million dollar project:

  27. The 504 CDC Loan Program SBA Indiana Certified Development Companies Regional Development Company – Portage, IN Business Development Corporation - South Bend, IN Community Development Corporation - Fort Wayne, IN Indiana Statewide Certified Development Corporation – Indianapolis, IN Premier Capital Corporation – Indianapolis, IN

  28. Lender Visit – Be Prepared What to take to the lender: • Written business plan • Personal tax returns • Business tax returns • Business financial statements

  29. U.S. Small Business Administration SBA’s Resource Partners: • SCORE • Small Business Development Centers (SBDC) • Women’s Business Centers (WBC)

  30. U.S. Small Business Administration SBA’s Resource Partners: • SCORE • Lafayette Branch – Chapter 6 • Lafayette Chamber of Commerce • 337 Columbia Street • Lafayette, IN 47901 • Phone: (765) 742-4041

  31. U.S. Small Business Administration SBA’s Resource Partners: • Small Business Development Centers (SBDC) • Hoosier Heartland ISBDCBurton D. Morgan Ctr. 1201 West State StreetWest Lafayette, IN 47907Toll Free: (866) 961-7232

  32. Your SBA For more information about your Indiana SBA resources go to: www.sba.gov/in

  33. U.S. Small Business Administration Indiana District Office Peter D. Smith Lender Relations Specialist (317) 226-7272 x119 Peter.smith@sba.gov

  34. Small Business Financing QUESTIONS?

More Related