U.S. Small Business Administration

1. U.S. Small Business Administration Veterans Business Development “Helping Veterans Succeed”

2. Mission Statement • To foster enhanced entrepreneurship among eligible veterans by providing increased opportunities. • To vigorously promote the legitimate interests of small business concerns owned and controlled by eligible veterans. • To ensure that those concerns receive fair consideration in purchases made by the Federal government.

3. Starting and/or Growing a Small Businesses

4. What we do for veterans… • Start and/or Grow Small Businesses • Access Capital • Business Counseling • Government Contracts www.sba.gov/vets

5. Starting/Expanding Businesses… • Special considerations are given to veterans under SBA’s management and technical assistance programs and guaranty loan programs. These special considerations include: • Liaison personnel in each field office; • In-depth management counseling and training assistance; and • Prompt and priority processing of any loan application or financial process. (Section 401 of PL 106-50)

6. Starting/Expanding Businesses… SBA provides a wide range of business development information and tools through the Internet. The main Web Pages are: www.sba.gov www.sba.gov/training www.sba.gov/vets www.onlinewbc.gov/militaryspouses.html

7. Starting/Expanding Businesses… SBA provides a wide range of business development information and tools through the Internet. The main Web Pages are: www.sba.gov www.sba.gov/espanol www.sba.gov/training www.sba.gov/vets www.onlinewbc.gov/militaryspouses.html

8. Other resources for you… Center for Veterans Enterprise www.vetbiz.gov/default2.htm Department of Veterans Affairs www.va.gov Center for Women Veterans www1.va.gov/womenvet Disability Information Center www.disabilityinfo.gov Internal Revenue Service www.irs.gov/businesses/small/index.html Office of Small & Disadvantage Business Utilization www.va.gov/osdbu

9. Small Business help for the Military Spouse WOMEN BUSINESS INSTITUE- provides assistance and/or training in finance, management, marketing and the Internet, and addresses specialized topics such as home-based businesses and welfare-to-work. Provides individual business counseling and tailors its programs to the needs of its constituency. www.onlinewbc.gov/militaryspouses.html WOMEN BUSINSS CENTER - provides a full business-training curriculum for every level of business, from start-up to going public. It also offers worldwide networking, chats, bulletin boards, resources and links, mentoring, and even individual counseling. www.onlinewbc.gov/militaryspouses.html

10. Help with Business Counseling • In-depth business and management counseling and training assistance for you or your employees. Through the following programs: • Small Business Development Centers • Service Corps of Retire Executive • Cyber counseling • Online Workshops

11. ACCESSING CAPITAL

12. Major SBA Loan Programs • Regular 7(a) Business Loans. • SBA Express • Community Express • Patriot Express • 504

14. SBA’s Patriot Express Loan • Maximum Loan Amount • $500,000.00 • Maximum Guaranty Percentage • 75 percent to 85 percent depending on the amount of the loan • The SBA guaranty on a Patriot Express loan may not exceed 85 percent for loans of $150,000 or less • Or, may not exceed 75 percent for loans over $150,000

15. SBA’s Patriot Express Loan • Eligibility Criteria • Must meet standard SBA eligibility • Must be 51 percent owned/controlled by: • Veteran (other than dishonorably discharged) • Service-disabled veteran • Active Duty Military potential retiree within 24 months of separation and discharging Active Duty member within 12 months of discharge (TAP eligible) • Reservist and National Guard (limited to current members and their spouses) • Current spouse of above or spouse of service member or veteran who died of a service-connected disability

16. SBA’s Patriot Express Loan • Patriot Express Loan Uses: • The Patriot Express Loan may be used for the following purposes: • Business startup • Business expansion • Equipment purchases • Working capital • Inventory • Business-occupied real-estate purchases

17. SBA’s Patriot Express Loan • Collateral Requirements • Lenders are not required to take collateral for loans up to $25,000 • Lenders may use their existing collateral policy for loans over $25,000 up to $350,000 • Lenders must take available collateral for loans greater than $350,000

18. SBA’s Patriot Express Loan • Revolving Lines of Credit • Revolving loans are allowed up to 7 years with maturity extensions permitted at the outset • In offering revolving lines of credit and their enhancements, SBA must ensure that borrowers, particularly those accessing SBA guaranteed loans through credit cards, under stand that these funds must be used for business-related purposes

19. SBA’s Patriot Express Loan • Interest Rates • For Patriot Express Loans, the standard 7(a) interest rate restrictions apply: • A lender may charge up to 2.25 percent over the Prime rate for maturities under seven years • A lender may charge up to 2.75 percent over the Prime rate for maturities over seven years • The rates can be 2 percent higher for loans of $25,000 or less • Or, 1 percent higher for loans between $25,000 or $50,000.

20. Military Reservist Economic Injury Disaster Loan program (MREIDL) • Special Assistance to Reservists Ordered to Active Duty During Military Conflict: Loan terms - Up to 30 years Loan Amount Limit - $2,000,000 Maximum Interest Rate – 4.000% Direct Loan – SBA Filing Period: One year after discharge or release from Active Duty . (Section 402 of PL 106-50)

21. Selling to the Federal Government

22. First Thing To Do • Obtain a Data Universal Number System (DUNS) Number www.dnb.com/us • DUNS Number can be obtained free-of-charge at time of CCR registration (see next slide)

23. Central Contractor Registration Database (CCR) Keep Current (Update yearly at minimum) www.ccr.gov Online Representations and Certifications Application (ORCA) https://orca.bpn.gov/ Register Your Business

24. Veteran’s Program Service Disabled Veteran Owned Small Business • Applies to purchases over $3,000 • Self Certified on CCR • VA determines Service Disability • No term limits • Competitive and sole-source program benefits • Subcontracting and Prime Contracting goals • FAR 19.14

25. Know the Rules • Federal Acquisition Regulations (FAR) www.arnet.gov/far • Subpart 8.4 – Federal Supply Schedules • Part 13 – Simplified Acquisitions • Part 14 – Sealed Bidding • Part 15 – Contracting by Negotiation • Part 19 – Small Business Programs

26. Finding Prime Contract Opportunities • Research Past Purchases • GSA Federal Procurement Data Center https://www.FPDS.gov • Identify Current Procurement Opportunities • Federal Business Opportunities (FBO) www.fbo.gov

27. Finding Subcontracting Opportunities • Subcontracting Opportunities Directory of Large Prime Contractors www.sba.gov/gc/sbsd.html • SUB-Net http://web.sba.gov/subnet

28. Investigate Joint Venture/Teaming Arrangements Excluded from affiliation – 13 CFR 121.103(f)(3) “bundled” requirement other than a “bundled” requirement Joint Ventures & Teams

29. Market Your Firm • Present your capabilities directly to the federal activities and large prime contractors that buy your products and services • Attend procurement conferences and business expos • Attend Business Matchmaking events

30. Request or download a bid package Obtain copies of relevant specifications & drawings Understand relevant purchasing regulations Federal Acquisition Regulations: Micro-purchases (under $3,000) Simplified Acquisitions (under $100,000) Bids & Proposals (over $100,000) Contract clauses View Solicitations

31. 3 Rules for a solicitation: -Read it…Read it…Read it!!! Request a Procurement History Attend Pre-Bid Meetings & Walk-Throughs Get clarification of ambiguities Proofread your proposal Submit it on time! Prepare Your Offer

32. Contract Award • Are you Responsive? • Are you Responsible? • Pre-Award Survey: Technical capability & production capability • Quality Assurance (QA) • Financial: accounts receivable, net worth, cash flow • Accounting System • System for Qualifying Suppliers • Packaging, Marking, Shipping

33. Contract Performance • Contingency Plans • Have a back up plan if something goes wrong • Give yourself enough time to react • Anticipating Final Inspection • Make an appointment before shipping date • On-Time delivery • Establish a good track record

34. Getting Paid • Know the paperwork process • Keep good records • Know your options • Progress payments • Prompt Payment Act • EFT (electronic funds transfer) • Accept government credit cards

35. Seek Additional Assistance • Procurement Technical Assistance Center (PTACs) www.dla.mil/db/procurem.htm • Small Business Specialists www.acq.osd.mil/sadbu • Local District Offices and Resource Partners www.sba.gov • Local Small Business Development Centers • SCORE www.score.org • Women’s Business Development Centers http://www.onlinewbc.gov/

36. Helpful Web Sites • DOD Small & Disadvantaged Business Utilization Office www.acq.osd.mil/sadbu/ • Procurement and Technical Assistance Centers www.sellingtothegovernment.net • Small Business Development Centers www.sba.gov/sdbc/

37. More Helpful Web Sites • SBA’s Home Page: www.sba.gov • Government Contracting:www.sba.gov/GC Site includes links to all major government contracting programs discussed here plus much, much more.

38. Things To Remember • TARGET YOUR CUSTOMER: Who buys your product or service? How do they buy? When do they buy? • KNOW THE RULES: Federal Acquisition Regulations Contract requirements and specifications How to obtain Contract history • PERFORM AS PROMISED: On-time delivery, Good Quality, at a Fair Price

39. Service-Disabled Veteran-Owned Small Business Concern Program U.S. Small Business Administration Office of Federal Contract Assistance for Veteran Business Owners

40. PROGRAM HISTORY • The VETERANS ENTREPRENEURSHIP and SMALL BUSINESS DEVELOPMENT ACT of 1999 (PL106-50) established an annual Government-wide goal of not less than 3 percent of the total value of all prime contract and subcontract awards for participation by small business concerns owned and controlled by service-disabled veterans. • The VETERANS BENEFITS ACT (VBA) of 2003 (PL108-183) added, in addition to other provisions, a contracting mechanism to enable agencies to reach the 3% prime contracting goal established in1999.

41. PROGRAM HISTORY • On May 5, 2004, the SBA issued the Interim Final Rule to implement Section 308 of the VBA of 2003 established a sole source and set-aside procurement program for service-disabled veteran-owned small business concerns (SDVO SBC).Federal Register Vol 69, No. 87, p. 25262 • On October 20, 2004, President Bush issued Executive Order 13360 to strengthen opportunities in Federal contracting for Service-Disabled Veteran-Owned Small Business Concerns. Federal Register Vol 69, No. 206, p. 62549

42. PROGRAM ELIGIBILITY REQUIREMENTS Adjudication Size Ownership & Control Highest Position Held

43. ELIGIBILITYREQUIREMENTS • The SDV must have a service-connected disability that has been determined by the Dept of Veterans Affairs or DOD • The SDVO SBC must be small under the NAICS code assigned to the procurement • The SDV must unconditionally own 51% of the SDVO SBC • The SDV must control the management and daily operations of the SDVO SBC • The SDV must hold the highest officer position in the SDVO SBC 13 CFR § § 125.8 – 125.10/FAR Part 19.1403(a) - (b)

44. TYPES OF CONTRACTS SET-ASIDE EXEMPTIONS SET-ASIDES SOLE SOURCE SIMPLIFIED ACQUISITIONS

45. SET-ASIDE EXEMPTIONS A contracting activity may not make a requirement available for a SDVO contract if: • The requirement would be fulfilled through award to Federal Prison Industries, Inc. or to Javits-Wagner-O’Day Act participating non-profit agencies for the blind and severely disabled. • The requirement is currently being performed by an 8(a) participant or SBA has accepted that requirement for performance under the authority of the Section 8(a) Program. 13 CFR § 125.18/FAR Part 19.1404

46. SET-ASIDE REQUIREMENTS A Contracting Officer (CO) may set-aside requirements if: • The requirement is not exempted from SDVO contracting. • The contracting officer considers setting aside the requirement for 8(a), HUBZone, or SDVO SBC participation before considering setting aside the requirement as a small business set-aside. • There is a reasonable expectation that at least two responsible SDVO SBCs will submit offers; and • The award can be made at a fair market price. 13 CFR § 125.19/FAR Part 19.1405(a) – (b)

47. SOLE SOURCE CONTRACTS A CO may award a sole source contract if: • The requirement is not exempted from SDVO contracting and cannot be set-aside. • The CO does not have a reasonable expectation that at least two responsible SDVO SBCs will submit offers. • The anticipated award price of the contract, including options, will not exceed: • $5.0M for manufacturing requirements • $3.0M for all other requirements • Award can be made at a fair market price. 13 CFR § 125.20/FAR Part 19.1406

48. SIMPLIFIED ACQUISITION THRESHOLD If the requirement is at or below the simplified acquisition threshold, the CO may set-aside the requirement for consideration among SDVO SBCs using simplified acquisition procedures or may award a sole source contract to an SDVO SBC. 13 CFR § 125.21

49. ADDITIONAL CONTRACT REQUIREMENTS LIMITATIONS ON SUBCONTRACTING JOINT VENTURES NON-MANUFACTURERS

50. ADDITIONAL CONTRACT REQUIREMENTS • LIMITATIONS ON SUBCONTRACTING • SDVO SBC Prime or Sub-contractor can subcontract for: • SERVICES CONTRACTS (EXCEPT CONSTRUCTION): • 50% of the contract performance incurred for SDVO SBC personnel • SUPPLY CONTRACTS: • 50% of the cost of manufacturing the supplies • GENERAL CONSTRUCTION: • 15% of the contract performance incurred for SDVO SBC personnel • CONSTRUCTION BY SPECIAL TRADE: • 25% of the contract performance incurred for SDVO SBC personnel 13 CFR §125.6(b)