shamrock bonding services |

A Surety Brokerage Serving Contractors

8(A) Program

Posted on

A

Handouts

Small Business Administration 8(a) Development Program Mission

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.

The Small Business Administration (SBA) was officially established in 1953, but its philosophy and mission began to take shape years earlier in a number of predecessor agencies.

In the Small Business Act of July 30, 1953, Congress created the Small Business Administration, whose function was to “aid, counsel, assist and protect, insofar as is possible, the interests of small business concerns.” The charter also stipulated that the SBA would ensure small businesses a “fair proportion” of government contracts and sales of surplus property.

The SBA 8(a) Business Development Program is named for Section 8(a) of the Small Business Act. This business development program was created to help small disadvantaged businesses compete in the American economy, and more specifically, in the federal contracting arena. To qualify for this program, a firm must be a small business, be unconditionally owned and controlled by one or more socially and economically disadvantaged individuals, and demonstrate a potential for success.

A small disadvantaged business is defined as one that is at least 51% owned by one or more individuals who are both socially and economically disadvantaged. This can include a publicly owned business that has at least 51% of its stock unconditionally owned by one or more socially disadvantaged individuals and whose management and daily business is controlled by one or more such individuals.

Under the SBA’s 8(a) Program, a federal agency can sole source a contract to an 8(a) company if it meets certain criteria. In general, these criteria include that the company can demonstrate that it has the capability to perform the work and that the solicitation has not been published as a competitive procurement. There is a $3 million dollar limit on the size of a service contract that may be offered on a sole-source basis to an 8(a) company. A company that is classified as an 8(a) with tribal status is not subject to this threshold. The U.S. government provided this opportunity because unlike regular small businesses where profits generally go to one individual or one family, the profits from Native American organizations and tribal corporations are shared by hundreds – and sometimes even thousands – of Native American tribal members.

B

8(a) BUSINESS DEVELOPMENT

The 8(a) Business Development Program is SBA’s effort to promote equal access for socially and economically disadvantaged individuals to participate in the business sector of the nation’s economy. Socially and economically disadvantaged individuals include Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, and Subcontinent Asian Americans. Individuals not members of these minority groups who can demonstrate that they are socially and economically disadvantaged also may be eligible.

Socially and economically disadvantaged individuals represent a significant percentage of U.S. citizens yet account for a disproportionately small percentage of total U.S. business revenues. The program recognizes the historical lack of equal access that minorities and other disadvantaged individuals have had to the resources needed to develop their small businesses. The program assists 8(a) approved firms to participate in the business sector and to become independently competitive in the marketplace.

SBA may provide participating firms with procurement, marketing, financial, management or other technical assistance. SBA may also enter into prime contracts with departments and agencies of the U.S. government to provide goods and services and subcontract the actual performance on the contracts to 8(a) approved firms. To assist 8(a) firms to develop self sufficiency and successfully compete in the commercial market, SBA also provides a series of marketing tools to help participants obtain the support of major businesses.

The SBA administers two particular business assistance programs for small disadvantaged businesses (SDB’s). These programs are the 8(a) Business Development Program and the Small Disadvantaged Business Certification Program. While the 8(a) Program offers a broad scope of assistance to socially and economically disadvantaged firms, SDB certification strictly pertains to benefits in Federal procurement. Companies which are 8(a) firms automatically qualify for SDB certification.

Today’s 8(a) Business Development Program is strengthened and improved to be a truly effective business development vehicle. New regulations permit 8(a) companies to form beneficial teaming partnerships and allow Federal agencies to streamline the contracting process. New rules make it easier for non-minority firms to participate by proving their social disadvantage. We also have implemented the new Mentor-Protégé Program to allow starting 8(a) companies to learn the ropes from experienced businesses. Our task is to teach 8(a) and other small companies how to compete in the Federal contracting arena and how to take advantage of greater subcontracting opportunities available from large firms as the result of public-private partnerships.

The new and improved 8(a) Program has become an essential instrument for helping socially and economically disadvantaged entrepreneurs gain access to the economic mainstream of American society. SBA has helped thousands of aspiring entrepreneurs over the years to gain a foothold in government contracting. Participation is divided into two phases over nine years: a four-year developmental stage and a five-year transition stage. In fiscal year 1998, more than 6,100 firms participated in the 8(a) Program and were awarded $6.4 billion in Federal contract awards.

Benefits of the Program

• Participants can receive sole-source contracts, up to a ceiling of $3 million for goods and services and $5 million for manufacturing. While SBA helps 8(a) firms build their competitive and institutional know-how, the agency also encourages them to participate in competitive acquisitions.

C

• Federal acquisition policies encourage Federal agencies to award a certain percentage of their contracts to SDBs. To speed up the award process, the SBA has signed Memorandums of Understanding (MOU’s) with 25 Federal agencies allowing them to contract directly with certified 8(a) firms.

• Recent changes permit 8(a) firms to form joint ventures and teams to bid on contracts. This enhances the ability of 8(a) firms to perform larger prime contracts and overcome the effects of contract bundling, the combining of two or more contracts together into one large contract.

Program goals require 8(a) firms to maintain a balance between their commercial and government business. There is also a limit on the total dollar value of sole-source contracts that an individual participant can receive while in the program: $100 million or five times the value of its primary SIC code. The overall program goal is to graduate firms that will go on to thrive in a competitive business environment.

To achieve this end, SBA district offices monitor and measure the progress of participants through annual reviews, business planning, and systematic evaluations. 8(a) participants may take advantage of specialized business training, counseling, marketing assistance, and high-level executive development provided by the SBA and its resource partners. They may also be eligible for assistance in obtaining access to surplus government property and supplies, SBA-guaranteed loans, and bonding assistance.

D

SBA’s Role

The U.S. Small Business Administration (SBA) is an independent Agency of the Executive Branch of the Federal Government. It is charged with the responsibility of providing four primary areas of assistance to American Small Business. These are: Advocacy, Management, Procurement, and Financial Assistance. Financial Assistance is delivered primarily through SBA’s Investment programs, Business Loan Programs, Disaster Loan Programs, and Bonding for Contractors.

SBA’s Business Loan Programs

SBA administers three separate, but equally important loan programs. SBA sets the guidelines for the loans while SBA’s partners (Lenders, Community Development Organizations, and Microlending Institutions) make the loans to small businesses. SBA backs those loans with a guarantee that will eliminate some of the risk to the lending partners. The Agency’s Loan guarantee requirements and practices can change however as the Government alters its fiscal policy and priorities to meet current economic conditions. Therefore, past policy cannot always be relied upon when seeking assistance in today’s market.

Federal appropriations are available to the SBA to provide guarantees on loans structured under the Agency’s requirements. With a loan guarantee, the actual funds are provided by independent lenders who receive the full faith and credit backing of the Federal Government on a portion of the loan they make to small business.

The loan guarantee which SBA provides transfers the risk of borrower non-payment, up to the amount of the guarantee, from the lender to SBA. Therefore, when a business applies for an SBA Loan, they are actually applying for a commercial loan, structured according to SBA requirements, which receives an SBA guarantee.

In a variation of this concept, community development organizations can get the Government’s full backing on their loan to finance a portion of the overall financing needs of an applicant small business.

SBA’s Investment Programs

In 1958 Congress created The Small Business Investment Company (SBIC) program. SBICs, licensed by the Small Business Administration, are privately owned and managed investment firms. They are participants in a vital partnership between government and the private sector economy. With their own capital and with funds borrowed at favorable rates through the Federal Government, SBICs provide venture capital to small independent businesses, both new and already established.

All SBICs are profit-motivated businesses. A major incentive for SBICs to invest in small businesses is the chance to share in the success of the small business if it grows and prospers.

E

SBA’s Bonding Programs

The Surety Bond Guarantee (SBG) Program was developed to provide small and minority contractors with contracting opportunities for which they would not otherwise bid. The U.S. Small Business Administration (SBA) can guarantee bonds for contracts up to $2 million, covering bid, performance and payment bonds for small and emerging contractors who cannot obtain surety bonds through regular commercial channels.

SBA’s guarantee gives sureties an incentive to provide bonding for eligible contractors, and thereby strengthens a contractor’s ability to obtain bonding and greater access to contracting opportunities. A surety guarantee, an agreement between a surety and the SBA, provides that SBA will assume a predetermined percentage of loss in the event the contractor should breach the terms of the contract.

Website: http://www.sba.gov/financing/basics/sbarole.html

SBA Programs

Technical Assistance (Training & Counseling)

Entrepreneurial Development Business & Community Initiatives Native American Affairs SBDC’s SCORE Small Business Training Network Women’s Business Ownership International Trade

Financial Assistance

Loan Programs Specialty Loan Programs Financial Assistance (General Overview) Investment Division (SBIC’s) Surety Guarantees International Trade

Contracting Assistance

8a Business Development HUBZone Government Contracting/BD Government Contracting Small Disadvantaged Business Size Standards Surety Guarantees Technology (SBIR/STTR)

Special Interests

International Trade Minorities Native American Affairs Technology (SBIR/STTR) Women’s Business Ownership Young Entrepreneurs Veterans Business Development

Internal Administrative & Support

About SBA Chief Financial Officer – CFO Freedom of Information Hearings and Appeals Inspector General Lender Oversight Press Office Civil Rights Compliance – CRC -English -En Espanol

Website: http://www.sba.gov/aboutsba/sbaprograms.htm

F

G

SBA 7(a) Lenders

SBA’s 7(a) programs are designed to deliver the greatest amount of money to the smallest businesses with the least amount of actual taxpayer expense. To accomplish this, the SBA currently offers to guarantee loans made by non-Government lenders rather than provide the loan funds itself. The money comes from the lenders. Taxpayer funds are only used in the event of borrower default. This reduces the risk to the lender, but not to the borrower, since the borrower remains obligated for their full debt, even if they default.

Banks, savings & loans, credit unions, and other specialized lenders participate with SBA on a deferred basis to provide small business loans that are structured under 7(a) guidelines. To participate lenders must execute an SBA Form 750 Agreement. This is a deferred participation agreement that establishes the terms under which SBA will guarantee a loan submitted by the lender.

In order to participate with SBA, a lender must meet the following requirements as indicated in the Code of Federal Regulations (CFR):

1.) Have a continuing ability to evaluate, process, close, disburse, service and liquidate small business loans;

2.) Be open to the public for the making of such loans (not be a financing subsidiary, engaged primarily in financing the operations of an affiliate);

3.) Have continuing good character and reputation, and otherwise meet and maintain the ethical requirements as identified in 13 CFR Sec. 120.140

4.) Be supervised and examined by a State or Federal regulatory authority, satisfactory to SBA.

When a lender chooses to utilize the SBA guarantee, the lender must certify that they would only make the loan if SBA provides its guaranty. The lender applies to SBA for a guarantee on a proposed loan. SBA will then make its decision whether to guarantee the loan based on the information provided in the loan application

When a lender’s loan is guaranteed by SBA, certain conditions for guaranty are imposed on the lending institution. Some of these conditions are related to how the lender must close and administer the account. Other conditions pertain to the business or its owner(s) and are imposed on the borrower. The borrower agrees to these requirements as a condition for obtaining the loan.

If a guaranteed loan defaults, the lender may request SBA to purchase the guaranteed portion. To begin the relationship with SBA, a lender should contact the local SBA Office and inquire about participating with SBA.

SBA offers its participants (the lenders) a variety of methods for applying for a guarantee on their proposed loans. The differences between these methods are related to the levels of authority and responsibility the lender and SBA have in making the decisions associated with processing, closing, and administering each loan.

Lenders are given authority to take on more of the responsibilities associated with loan processing and administration from SBA, based on the lenders historical experience and performance with SBA. The better a lender has conducted its analysis and performed the administrative functions in the past, the more likely SBA will not have to re-analyze or check these factors in the future.

H

Website: http://www.sba.gov/financing/lendinvest/clp.html

SBA Loan Programs

PROGRAM: Basic 7(a) Loan Guaranty

FUNCTION:

• Serves as the SBA’s primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels.

• It is also the agency’s most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes.

Loan proceeds can be used for most sound business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets.

CUSTOMER: Start-up and existing small businesses, commercial lending institutions

Website: www.sba.gov/financing/sbaloan/7a.htm

PROGRAM: Certified Development Company (CDC), a 504 Loan Program

FUNCTION:

• Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization.

• Typically a 504 project includes a loan secured from a private-sector lender with:

o a senior lien a loan secured from a CDC (funded by a 100 percent SBA-guaranteed debenture)

o a junior lien covering up to 40 percent of the total cost

o a contribution of at least 10 percent equity from the borrower.

CUSTOMER: Small businesses requiring “brick and mortar” financing

Website: www.sba.gov/financing/sbaloan/cdc504.htm

PROGRAM: Microloan, a 7(m) Loan Program

FUNCTION:

• Provides short-term loans of up to $35,000 to small businesses and not-for-profit child-care centers for working capital or the purchase of:

I

o inventory

o supplies

o furniture

o fixtures

o machinery

o equipment

• Proceeds cannot be used to pay existing debts or to purchase real estate.

• The SBA makes or guarantees a loan to an intermediary, who in turn, makes the microloan to the applicant.

• These organizations also provide management and technical assistance.

• The loans are not guaranteed by the SBA.

• The microloan program is available in selected locations in most states.

CUSTOMER: Small businesses and not-for-profit child-care centers needing small-scale financing and technical assistance for start-up or expansion

Website: www.sba.gov/financing/sbaloan/microloans.htm

PROGRAM: Loan Prequalification

FUNCTION:

• Allows business applicants to have their loan applications for $250,000 or less analyzed and potentially sanctioned by the SBA before they are taken to lenders for consideration.

• The program focuses on the applicant’s character, credit, experience and reliability rather than assets.

• An SBA-designated intermediary works with the business owner to review and strengthen the loan application.

• The review is based on key financial ratios, credit and business history, and the loan-request terms.

• The program is administered by the SBA’s Office of Field Operations and SBA district offices.

CUSTOMER: Designated small businesses

Website: www.sba.gov/financing/sbaloan/prequalification.htm

J

SBA Partners

The 504 Certified Development Company (CDC) Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community. CDC’s work with the SBA and private-sector lenders to provide financing to small businesses. There are about 270 CDC’s nationwide. Each CDC covers a specific geographic area.

CDC provides to small businesses A CDC must operate in and adequately service its Area of Operations. It must market the 504 program, package and process 504 loan applications, and close and service 504 loans. A CDCs loan portfolio must be diversified by business sector.

A CDC may provide small businesses with financial and technical assistance, or may help small businesses obtain such assistance from other sources, including preparing, closing, and servicing loans under contract with Lenders in SBA’s 7(a) program.

A CDC also may loan amounts to the Borrower equal to the value of all or part of the Borrower’s contribution to a Project in the form of cash or land, including site improvements, previously acquired by the CDC.

Applications for Certification as a CDC

A CDC must be a non-profit corporation in good standing. Applicants for certification as a CDC must apply to the SBA District Office serving the area in which the applicant has or proposes to locate its headquarters. A CDC must have a designated Area of Operations, specified by the CDC and approved by SBA. There can be only one statewide CDC in each state, which must foster economic development throughout the state and provide 504 assistance to areas not adequately served by other CDCs. An SBA District Office may accept an application for a county only if:

(1) There is no CDC that includes the county in its Area of Operations; (2) Any CDCs that include the county in their Areas of Operations have not averaged together at least

one 504 loan approval per 100,000 population per year averaged over the 24 months prior to SBA receiving a complete application from the applicant; and the county has not become part of another CDC’s Area of Operations within the prior 24 months; or (3) The county is part of the Area of Operations of only one CDC; the county has a population of 100,000 or more; the county has not become part of an Area of Operations within the prior 24 months of another CDC; the applicant is incorporated in the State where the county is located; and the CDC that includes the county in its Area of Operations submits a statement of no objection to the application.

An applicant whose application has been accepted must then demonstrate that it satisfies the certification and operating criteria in Secs. 120.820 through 120.829 and the need for 504 services in the Area of Operations Applications must also include an operating

K

budget approved by the applicant’s Board of Directors, and a plan to meet CDC operating requirements (without specializing in a particular industry). An applicant’s proposed Area of Operations may include Local Economic Areas. An applicant may not apply to cover an area as a Multi-State CDC. The AA/FA shall make the certification decision.

Public notice of CDC certification application

• As part of the application process, the applicant must publish a notice in a general circulation newspaper in the proposed Area of Operations, including the name and location of the proposed CDC, its purpose and Area of Operations, and the names and addresses of its officers and directors. The applicant shall send a copy of the notice to SBA. The notice shall provide the public at least 30 days to submit written comments to the District Office. The SBA shall consider the comments in making its decision on the application.

• CDCs serving the proposed Area of Operations shall be directly notified and given at least 30 days to comment.

Probationary period for newly certified CDCs

• Newly certified CDCs will be on probation for a period of two years, at the end of which the CDC must petition for:

o Permanent CDC status

o A single, one-year extension of probation

o ADC status

SBA will consider failure to file a petition before the end of the probationary period as a withdrawal from the 504 program. If the CDC elects ADC status or withdrawal, it must transfer all funded and/or approved loans to another CDC, SBA, or another service approved by SBA.

CDC membership

A CDC must have at least 25 members (or stockholders for for-profit CDCs approved prior to January 1, 1987). The CDC membership must meet annually. No person or entity may own or control more than 10 percent of the CDC’s voting membership (or stock). Members must be representative of and provide evidence of active support in the Area of Operations. Members must be from each of the following groups:

Government organizations responsible for economic development in the Area of Operations and acceptable to SBA

• Financial institutions that provide commercial long term fixed asset financing in the Area of Operations

• Community organizations dedicated to economic development in the Area of Operations such as chambers of commerce, foundations, trade associations, colleges, or universities

L

• Businesses in the Area of Operations. A CDC that is incorporated in one State and is operating as a Multi-State CDC in another State must meet the membership requirements for each State.

CDC Board of Directors

The CDC must have a Board of Directors chosen from the membership by the members, and representing at least three of the four membership groups. No single group shall control. No person who is a member of a CDC’s staff may be a voting member of the Board except for the CDC manager. The Board Members must be responsible officials of the organizations they represent and at least one member other than the CDC manager must possess commercial lending experience. The Board must meet at least quarterly and shall be responsible for CDC staff decisions and actions. A quorum shall require at least 5 Directors authorized to vote. When the Board votes on SBA loan approval or servicing actions, at least one Board Member with commercial loan experience acceptable to SBA, other than the CDC manager, must be present and vote. There must be no actual or apparent conflict of interest with respect to any actions of the Board.

• The Board may establish a Loan Committee of non-Board Members that reports to the Board. Loan Committee members must include at least one member with commercial lending experience acceptable to SBA. All members of the Loan Committee must live or work in the Area of Operations of the State where the 504 project they are voting on is located unless the project falls under one of the exceptions listed in Sec. 120.839, Case-by-case extensions. No CDC staff may serve on a Loan Committee. A quorum must have at least five committee members authorized to vote. The CDC’s Board must ratify the actions of any Loan Committee. There must be no actual or apparent conflict of interest with respect to any actions of the Loan Committee.

• If the CDC is incorporated in one State and is approved as a Multi-State CDC to operate in another State, the CDC must meet the Board requirements for each State and must have a Loan Committee for each State.

Professional management and staff

A CDC must have full-time professional management, including an Executive Director (or the equivalent) managing daily operations. It must also have a full-time professional staff qualified by training and experience to market the 504 Program, package and process loan applications, close loans, service, and, if authorized by SBA, liquidate the loan portfolio, and sustain a sufficient level of service and activity in the Area of Operations. CDCs may obtain, under written contract, marketing, packaging, processing, closing, servicing or liquidation services provided by qualified individuals and entities who live or do business in the CDC’s Area of Operations under the following circumstances:

• The CDC has at least one salaried professional employee that is employed directly (not contracted) full-time to manage the CDC. A CDC may petition SBA to waive the requirement of at least one full-time manager if:

o The CDC is rural and has insufficient loan volume to justify its own management, and another CDC located in the same general area will provide the management

M

o The management of a CDC is to be contributed by a non-profit affiliate of the CDC that has the economic development of the CDC’s Area of Operations as one of its principal activities. In the latter case, the management contributed by the affiliate may work on and operate other economic development programs of the affiliate, but must be available to 504 customers during regular business hours

• SBA must pre-approve contracts the CDC makes for managing, marketing, packaging, processing, closing, servicing, or liquidation functions. (CDCs may contract for legal and accounting services without SBA approval, except for legal services in connection with loan liquidation or litigation.)

• Contracts must clearly identify terms and conditions satisfactory to SBA that permit the CDC to terminate the contract prior to its expiration date on a reasonable basis.

• The CDC must provide copies of these contracts to SBA for review annually.

• If a CDC’s Board believes that it is in the best interest of the CDC to contract for a management, marketing, packaging, processing, closing, servicing or liquidation function, the CDC’s Board must explain its reasoning to SBA. The CDC’s Board must demonstrate to SBA that:

o The compensation under the contract is only from the CDC, reasonable and customary for similar services in the Area of Operations, and is only for actual services performed

o The full term of the contract (including options) is reasonable

o The contract does not evidence any actual or apparent conflict of interest or self-dealing on the part of any of the CDC’s officers, management, and staff, including members of the Board and any Loan Committee

• No contractor (under this section) or Associate of a contractor may be a voting or non-voting member of the CDC’s Board.

Minimum level of CDC lending activity

A CDC must provide at least two 504 loan approvals each full fiscal year. A CDC’s portfolio must reflect an average of one Job Opportunity per $35,000 of 504 loan funding.

Website: http://www.sba.gov/financing/sbapartner/becomecdc.html

N

SBA Microloan Program

INFORMATION FOR SMALL BUSINESSES

The Microloan Program provides very small loans to start-up, newly established, or growing small business concerns. Under this program, SBA makes funds available to nonprofit community based lenders (intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. The average loan size is about $13,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.

Terms, Interest Rates, and Fees: The maximum term allowed for a microloan is six years. However, loan terms vary according to the size of the loan, the planned use of funds, the requirements of the intermediary lender, and the needs of the small business borrower. The maximum loan amount is $35,000; however, the average loan amount is around $13,000. Interest rates vary, depending upon the intermediary lender and costs to the intermediary from the U.S. Treasury. Generally these rates will be between 8 eight percent and thirteen percent. Collateral Each intermediary lender has its own lending and credit requirements. However, business owners contemplating application for a microloan should be aware that intermediaries will generally require some type of collateral, and the personal guarantee of the business owner. Technical Assistance Each intermediary is required to provide business based training and technical assistance to its microborrowers. Individuals and small businesses applying for microloan financing may be required to fulfill training and/or planning requirements before a loan application is considered. How to Apply: Small businesses that are interested in applying for a microloan should contact a microlender in their area. The following link contains a state-by-state list of all SBA participating Microlending Intermediaries and their areas of operation.

O

SBA Microlending Intermediaries

INFORMATION FOR NON-PROFIT ENTITIES SEEKING TO BECOME INTERMEDIARY LENDERS

Applying to become an Intermediary

Organizations interested in becoming Intermediaries should contact SBA for information on the application process and should review the regulations published in the Code of Federal Regulations, specifically sections 120.700-120.716. In order to participate in the program, applicants must meet three general criteria:

• An applicant must be organized as a non-profit organization, quasi-governmental economic development corporation, or an Agency established by a Native American Tribal Government;

• An applicant must have made and serviced short-term fixed rate loans of not more than $35,000 to newly established or growing small businesses for at least one year; and

• An applicant must have at least one year of experience providing technical assistance to its borrowers.

Applications should contain supporting information describing:

• The types of businesses assisted in the past and those the applicant intends to assist with Microloans;

• The average size of the loans made in the past and the average size of intended Microloans;

• The extent to which the applicant will make Microloans to small businesses in rural areas;

• The geographic area in which the applicant intends to operate, including a description of the economic and demographic conditions existing in the intended area of operations;

• The availability and cost of obtaining credit for small businesses in the area;

• The applicant’s experience and qualifications in providing marketing, management, and technical assistance to small businesses;

• Any plan to use other technical assistance resources (such as counselors from the Service Corps of Retired Executives) to help Microloan borrowers.

Website: http://www.sba.gov/financing/sbaloan/microloans.html

P

Investment Program

Understanding Equity Capital

Equity capital or financing is money raised by a business in exchange for a share of ownership in the company. Ownership is represented by owning shares of stock outright or having the right to convert other financial instruments into stock of that private company. Two key sources of equity capital for new and emerging businesses are angel investors and venture capital firms.

Typically, angel capital and venture capital investors provide capital unsecured by assets to young, private companies with the potential for rapid growth. Such investing covers most industries and is appropriate for businesses through the range of developmental stages. Investing in new or very early companies inherently carries a high degree of risk. But venture capital is long term or “patient capital” that allows companies the time to mature into profitable organizations.

Angel and venture capital is also an active rather than passive form of financing. These investors seek to add value, in addition to capital, to the companies in which they invest in an effort to help them grow and achieve a greater return on the investment. This requires active involvement and almost all venture capitalists will, at a minimum, want a seat on the board of directors.

Although investors are committed to a company for the long haul, that does not mean indefinitely. The primary objective of equity investors is to achieve a superior rate of return through the eventual and timely disposal of investments. A good investor will be considering potential exit strategies from the time the investment is first presented and investigated.

Differences Between Debt and Equity Capital

Debt Capital: Debt capital is represented by funds borrowed by a business that must be repaid over a period of time, usually with interest. Debt financing can be either short-term, with full repayment due in less than one year, or long-term, with repayment due over a period greater than one year. The lender does not gain an ownership interest in the business and debt obligations are typically limited to repaying the loan with interest. Loans are often secured by some or all of the assets of the company.

Equity Capital: Equity capital is represented by funds that are raised by a business, in exchange for a share of ownership in the company. Equity financing allows a business to obtain funds without incurring debt, or without having to repay a specific amount of money at a particular time.

Q

Angel Investors

Business “angels” are high net worth individual investors who seek high returns through private investments in start-up companies. Private investors generally are a diverse and dispersed population who made their wealth through a variety of sources. But the typical business angels are often former entrepreneurs or executives who cashed out and retired early from ventures that they started and grew into successful businesses. These self-made investors share many common characteristics:

• They seek companies with high growth potentials, strong management teams, and solid business plans to aid the angels in assessing the company’s value. (Many seed or start ups may not have a fully developed management team, but have identified key positions.)

• They typically invest in ventures involved in industries or technologies with which they are personally familiar.

• They often co-invest with trusted friends and business associates. In these situations, there is usually one influential lead investor (“archangel”) whose judgment is trusted by the rest of the group of angels.

• Because of their business experience, many angels invest more than their money. They also seek active involvement in the business, such as consulting and mentoring the entrepreneur.

• They often take bigger risks or accept lower rewards when they are attracted to the non-financial characteristics of an entrepreneur’s proposal.

Venture Capital

Successful long-term growth for most businesses is dependent upon the availability of equity capital. Lenders generally require some equity cushion or security (collateral) before they will lend to a small business. A lack of equity limits the debt financing available to businesses. Additionally, debt financing requires the ability to service the debt through current interest payments. These funds are then not available to grow the business.

Venture capital provides businesses a financial cushion. However, equity providers have the last call against the company’s assets. In view of this lower priority and the usual lack of a current pay requirement, equity providers require a higher rate of return/return on investment (ROI) than lenders receive.

Website: http://www.sba.gov/financing/capital/equity.html

R

The SBA Mentor-Protégé Program

• The Design and Purpose of the Program

The Mentor-Protégé Program is designed to encourage approved Mentors to provide various forms of assistance to eligible protégé Participants. The purpose of the mentor-protégé relationship is to enhance the capabilities of the Protégés; and to improve their ability to successfully compete for federal contracts.

• Who is Qualified to Participate

Mentors – Any concern that demonstrates both a commitment and the ability to assist 8(a) Participants may serve as a Mentor. Mentors include: businesses that have graduated from the 8(a) BD Program; firms that are in the transitional stage of the Program; other small businesses; as well as large businesses.

• To qualify as a Mentor, a concern must demonstrate that it: (i) Possesses favorable financial health, including profitability for at least the last two years; (ii) Possesses good character; (iii) Does not appear on the federal list of debarred or suspended contractors; and (iv) Can impart value to a Protégé from lessons learned and practical experience gained from the 8(a) BD program, or through its general knowledge of government contracting.

• Generally, a Mentor will not have more than one Protégé at a time. However, the SBA may authorize a concern to mentor more than one protégé.

• In order to demonstrate its favorable financial health, a firm seeking to be a Mentor must submit its federal tax returns for the last two years to SBA for review.

• Once approved, a Mentor must annually certify that it continues to possess good character and a favorable financial position.

Protégés –

• To qualify initially as a Protégé, an 8(a) Participant must: (i) Be in the developmental stage of the 8(a) Program, or (ii) Have never received an 8(a) contract; or, (iii) Its size is less than half the size standard corresponding to its primary SIC code.

• The firm must be in good standing in the 8(a) BD program (i.e., firms that do not have termination or suspension proceedings against them; and are up to date with all reporting requirements).

• A Protégé firm may have only one Mentor at a time. (No exception.)

• The Mentor-Protégé Agreement

• The Mentor and Protégé firms must enter into a written Agreement setting forth the Protégé’s needs and describing the assistance the Mentor is committed to provide to address those needs. These include: management, financial and/or technical assistance, loans and/or equity investments, cooperation on joint venture projects, or subcontracts under prime contracts being performed by the Mentor. The Agreement must also specify that the Mentor will provide such assistance to the Protégé firm for at least one year. The SBA’s AA/8(a) BD must approve the written Agreement. For its approval, the Agreement must set forth the assistance to be provided by the Mentor for promoting real and sufficient gains significant to the Protégé. The Agreement must NOT be merely a vehicle to enable the non-8(a) participant to continue to receive 8(a) contracts.

• The Agreement must provide that either the Protégé or the Mentor may terminate the Agreement with 30 days advance notice to the other party in the mentor-protégé relationship; and a copy to SBA.

• The mentor must annually certify to favorable financial health and good character.

• SBA will review the mentor-protégé relationship annually to determine whether to approve its continuation for another year.

• SBA must approve all changes to a Mentor-Protégé Agreement in advance.

S

• Annual Evaluation of the Mentor-Protégé Relationship

• In its annual business plan update, as required by Sec. 124.403(a,), the Protégé must report to SBA for the Protégé’s preceding program year:

• All technical and/or management assistance provided by the Mentor to the Protégé;

• All loans to and/or equity investments made by the Mentor in the Protégé;

• All subcontracts awarded to the Protégé by the Mentor, and the value of each subcontract;

• All federal contracts awarded to the mentor-protégé relationship as a joint venture (designating each as an 8(a), small business set aside, or unrestricted procurement), the value of each contract, and the percentage of the contract performed and the percentage of revenue accruing to each party in the joint venture; and

• A narrative describing the success such assistance has had in addressing the developmental needs of the Protégé and addressing any problems encountered.

• The Protégé must annually certify to SBA whether there has been any change in the terms of the Agreement.

• The mentor must annually certify to favorable financial health and good character.

• SBA will review the Protégé’s report on the mentor-protégé relationship as part of its annual review of the firm’s business plan pursuant to Sec. 124.403. SBA may decide not to approve continuation of the Agreement if it finds that the Mentor has not provided the assistance set forth in the Mentor-Protégé Agreement or that the assistance has not resulted in any material benefits to the Protégé.

• What Are the Benefits

• In order to raise capital for the Protégé firm, the Mentor may invest an equity interest of up to 40% in the Protégé firm.

• Notwithstanding the mentor-protégé relationship, a Protégé firm may qualify for other assistance as a small business, including SBA financial assistance.

• No determination of affiliation or control may be found between a Protégé firm and its Mentor based on the Mentor-Protégé Agreement or any assistance provided pursuant to the Agreement.

• Effective Dates

June 30, 1998: Final Rules published in the Federal Register.

(date) ………..

(date) ………..

• Where to Contact Us

(202) 205-6423, Office of 8(a) Business Development

U.S. Small Business Administration 8(a) BD Mentor-Protégé Program 409 – Third Street, SW Washington, DC 20416

• Where and How to Apply

• Qualified 8(a) Participants may apply to be considered as a Protégé or Mentor with the SBA District Office where it is registered.

ADDITIONAL INFORMATION

The SBA has a number of other programs and services available. These include training and educational programs, advisory services, publications, financial programs, and contract assistance. The agency also offers specialized programs for women business owners, veterans, international trade, and historically underutilized business zone (HUBZone) for development.

T

The SBA has offices located around the country. For the one nearest you, consult the telephone directory under U.S. Government; or call the Small Business Answer Desk at 1-800-8-ASK-SBA, or (202) 205-7064 (FAX). For the hearing impaired, the TDD number is (202) 205-7333.

The U.S. Small Business Administration, established in 1953, provides financial, technical and management assistance to help Americans start, run, and grow their businesses. With a portfolio of business loans, loan guarantees and disaster loans worth more than $45 billion, the SBA is the nation’s largest single financial backer of small businesses. Last year, the SBA offered management and technical assistance to more than one million small business owners. The SBA also plays a major role in the government’s disaster relief efforts by making low-interest recovery loans to both homeowners and businesses.

America’s 23 million small businesses employ more than 50 percent of the private workforce, generate more than half of the nation’s gross domestic product, and are the principal source of new jobs in the U.S. economy.

All of SBA’s programs and services are extended to the public on a non-discriminatory basis.

Website: http://www.sba.gov/8abd/indexmentorprogram.html

U

HUBZone “Historically Underutilized Business Zone”

The HUBZone Empowerment Contracting Program

Q1. What is a Hubzone?

A1. The HUBZone Empowerment Contracting Program stimulates economic development and creates jobs in urban and rural communities by providing Federal contracting preferences to small businesses. These preferences go to small businesses that obtain HUBZone (Historically Underutilized Business Zone) certification in part by employing staff who live in a HUBZone. The company must also maintain a “principal office” in one of these specially designated areas. [A principal office can be different from a company headquarters, as explained in our section dedicated to Frequently Asked Questions.] The program resulted from provisions contained in the Small Business Reauthorization Act of 1997. he HUBZone Empowerment Contracting Program is administered by a staff in Washington, D.C. in cooperation with field staff located in SBA District Offices around the country. A full listing of those local District Office staff members [HUBZone liaisons] is available on the HUBZone web page under “Contacts.”

Q2. What’s the easiest way to find the location of a HUBZone in my area?

A2. Simply log onto the web at http://www.sba.gov/hubzone and select the option Are You in a HUBZone? You can search the system using several designations, including a specific address, a county or a full state.

Q3. How does a firm qualify for this program? A3. To qualify for the program, a business must meet the following criteria:

• It must be a small business by SBA size standards;

• It’s principal office must be located within a HUBZone, which includes lands on federally recognized Indian reservations;

• It must be owned and controlled by one or more U.S. citizens (N.B.-this means any level of ownership in an applicant small business by another company would result in a decline). Approved ownership can also be by a Community Development Corporation or Indian tribe; and

• At least 35% of its employees must reside in a HUBZone.

Q4. If I own the company applying for HUBZone certification, should I include myself when calculating the number of employees?

A4. Yes. You count regardless of whether you serve in a paid or unpaid status, so long as you consider yourself to be a principal employee of the firm and spend full-time equivalent hours devoted to the business.

Q5. How does SBA define the term “reside” in reference to the residency requirement?

A5. The term reside means to live in a primary residence at a place for at least 180 days, or as a currently registered voter, and with intent to live there indefinitely. Employers should be aware that it makes no difference which HUBZone their employees reside in. An employee can reside in one HUBZone and work in another and meet the standards for this residency requirement.

Q6. How does SBA define the term “principal office?”

A6. It’s the location where the greatest number of employees at any one location actually perform their work, except for construction and service industries, which have exemptions based on their occasional need to assign employees at the contract location. Notice that the (principal office) definition can mean something very different from a company’s headquarters. It could happen that a small business might have a headquarters in a non-HUBZone location and establish a

principal office within a HUBZone locality and still qualify legitimately for program participation.(more details – see ‘Regulatory Amendments’ that follows).

Q7. I understand that some regulatory amendments became effective Feb. 20, 2001. What’s changed? A7. Those amendments to our rules appeared in the Federal Register on Jan. 18, 2001. The amendments impact four areas: Clarification on applicability to state and local governments. This makes clear that the HUBZone program does not apply to contracts awarded by state and local governments, since the HUBZone Act only applies to the federal government.

V

Definition of ‘principal office: The amended rule says that for concerns whose primary industry is services or construction (i.e., other than manufacturing), the principal office would be the location where the greatest number of the concern’s employees perform their work, but excluding those employees who perform their work at job-site locations to fulfill specific contract obligations.

Rules on Affiliation

Before the amendment, regulations permitted a qualified HUBZone SBC to have affiliates only if those affiliates are qualified HUBZone SBCs, participants in the 8(a) Business Development Program, or woman-owned businesses (WOBs). But this was all seen as overly restrictive.

• Accordingly, SBA eliminated these restrictions on affiliation and allows a qualified HUBZone SBC to have affiliates as long as it, when combined with its affiliates, is still small pursuant to SBA’s size regulations.

• In addition, the removal allows SBCs in non-HUBZone areas to establish new business ventures in HUBZones. This is especially critical due to the historical lack of investment capital in HUB Zones and the need for such capital to establish new businesses that will promote economic development and create jobs.

Procurement requirements for non-manufacturers

SBA amended the provisions concerning non-manufacturers.

Under the amended rule, non-manufacturer HUBZone concerns no longer are required to demonstrate that they can provide product or products manufactured by qualified HUBZone SBCs.

• SBA now allows a qualified HUBZone SBC to use any manufacturer, including a large business, for

• HUBZone contracts at or below $25,000 in total value. This provision encourages the participation of small business non-manufacturers that are located in HUBZones.

• Contracts above $25,000 will still require that the HUBZone non-manufacturer provide the product of a HUBZone manufacturer.

Q8. If my small business has several offices and one is qualified as a (principal office) that serves as the basis for a HUBZone designation, can all my offices claim HUBZone certification?

A8. Yes, HUBZone is a status that applies to the entire business. This designation will remain in effect as long as any of the firm’s locations meet the test for and are certified as a “principal office” for HUBZone certification (assuming all other eligibility requirements are similarly maintained).

Q9. What benefits are small businesses receiving under this program?

A9. Generally speaking, there are two levels of benefit. The first relates directly to Federal contracts, while the second involves specialized assistance.

Federal Contract Benefits –

There are four types of HUBZone contract opportunities:

Competitive: Contracts can be set-aside for HUBZone competition when the contracting officer has a reasonable expectation that at least two qualified HUBZone small business concerns (SBCs) will submit offers and that the contract will be awarded at a fair market price. Sole-source: HUBZone contracts can be awarded if the contracting officer determines that:

o only one qualified HUBZone SBC is responsible to perform the contract,

o two or more qualified HUBZone SBCs are not likely to submit offers and

o the anticipated award price of the proposed contract, including options, will not exceed:

— $5 million for a requirement within the North American Industry Classification System (NAICS) code for manufacturing or — $3 million for a requirement within all other NAICS codes

W

Full and open competitive contracts can be awarded with a price evaluation preference. The offer of the HUBZone small business must not be 10 percent higher than the offer of a non-small business. Subcontracting: All subcontracting plans for large business Federal contractors must include a HUBZone subcontracting goal.

Other Specialized Assistance

o Eligible HUBZone firms can qualify for higher SBA-guaranteed surety bonds on construction and service contract bids.

o Firms in Federal Empowerment Zones and Enterprise Communities (EZ/EC) can also benefit from employer tax credits, tax-free facility bonds, and investment tax deductions.

Q10. Can HUBZone certified firms receive any special loans, grants or tax credits through the HUBZone Program? A10. No, the Federal benefits are limited to those listed above.

Q11. I’ve submitted a HUBZone application, but haven’t heard anything yet. How can I check the status?

A11. The application system available on the web (http://www.sba.gov/hubzone) has a built-in function that allows an applicant to check the status at any time. Just activate the certification function on the opening page and select the “Check Application Status” operation.

Q12. Does this program only apply to small businesses that are currently located in HUBZones, or can firms move to these areas and then become eligible to participate?

A12. This program applies to firms that are currently located within HUBZones and can include any start-up business that chooses to start operation in a HUBZone. An existing small business that chooses to relocate to a HUBZone can also become certified provided it meets the remaining criteria outlined earlier.

Q13. Where is there a list of all HUBZone certified companies?

A13. A state-by-state listing is available on the HUBZone Opening web page, but a more comprehensive search capability is offered through the Contracting Officer’s HUBZone Gateway, which now contains more than 4,700 Certified Small Business Concerns that have expressed an interest in working with the Federal government as HUBZone contractors.

Q14. Now that I’m HUBZone certified, what should I do next?

A14. Market your firm’s products and services to the appropriate Federal agencies, perhaps with the assistance and guidance of the SBA employee most responsible for being your advocate, the Procurement Center Representative. Identify your local PCR through this document link: http://www.sba.gov/GC/contacts.html. Look at the third entry, which also includes an option for downloading this list as a PDF (Adobe) file.

Q15. Does a business that attempts to qualify for the HUBZone Program based upon its location on an Indian reservation have to be Indian owned?

A15. No. As long as the principal office of the business is located on an Indian reservation and meets all other eligibility criteria, it can earn the HUBZone designation.

Q16. The HUBZone Program is based on a geographical designation. Are there differences in these geographical assignments and approximately how many current locations are there for each?

A16. The statute establishing the HUBZone Program directs the SBA to rely upon definitions provided by other Federal agencies to determine which areas qualify as HUBZones. Generally speaking, these determinations are arrived at after the collection of either income or employment data, and that data forms the basis for the calculations cited below:-

A HUBZone may be one of the following:

1. A qualified census tract. The definition for Qualified Census Tract is based on an Internal Revenue Service provision for the low income housing tax credit program that is developed in conjunction with the U.S. Department of Housing and Urban Development (HUD). The Secretary of HUD designates Qualified Census Tracts by a notice published periodically in the Federal Register. The most recent notice based on the results of the 2000 census data collection appeared December 12, 2002, and were represented on the HUBZone mapping system on May 19, 2003. (11,600 TOTAL in U.S.). Information on how data is compiled for the Qualified Census Tracts designation is available on the web at http://qct.huduser.org

2. A qualified county. The definition for qualified county is any county that, based on the most recent data available from the U.S. Census Bureau, is not located in a metropolitan statistical area and in which the median

X

household income is less than 80 percent of the median household income for the entire non-metropolitan area of a state and/or any non-metropolitan county that, based on the most recent data available from the Bureau of Labor Statistics (BLS), has an unemployment rate that is not less than 140 percent of the statewide average unemployment rate. (1,200 TOTAL in U.S.).

Information on decennial census data used to determine the household income is available on the web at http://www.census.gov/main/www/cen2000.html. Information in the local employment data used to determine the unemployment element is available on the web at http://www.bls.gov/lau/home.htm#data

3. A qualified Indian reservation. The definitions for qualified Indian reservations, which include lands covered by the phrase ‘Indian Country,’ are those established and used by the Bureau of Indian Affairs. There is one exception, which applies to portions of the state of Oklahoma where HUBZone is using a definition arrived at by the Internal Revenue Service. (EXCEEDS 340 TOTAL in U.S.). Information on Native American reservations and related information is available on the web at http://www.doi.gov/bureau-indian-affairs.html. Information on the Internal Revenue Service description for former Indian Reservations in Oklahoma is available on the web at http://www.irs.gov/newsroom/article/0,,id=99491,00.html

Q17. How often can these designations change?

A17. Urban is concurrent with the census (change is every ten years). Rural reflects employment and income adjustments (employment levels determined annually). Native American involves Federal recognition and boundary changes (no fixed time).

Q18. Will small businesses participating in the SBA’s 8(a) Business Development Program that are already in or relocate to a HUBZone area be eligible to receive both 8(a) and HUBZone contracting opportunities?

A18. Yes. This dual status can be quite beneficial, so a firm that has one designation and legitimately qualifies for the other is strongly urged to obtain both.

Q19. How can a firm’s eligibility as a HUBZone participant be challenged?

A19. The specific process for challenging a firm’s eligibility as a HUBZone participant is detailed in the SBA’s operating regulations. Generally, these regulations allow an interested party to challenge the accuracy of an existing certification based on allegedly falsified applicant information or substantive changes that might have occurred since certification was first obtained. The SBA will have final authority in this regard.

Q20. Which agencies participate in the HUBZone program and where are these contract opportunities posted for general public review?

A20. As of Oct. 1, 2000, all Federal buying agencies must abide by the HUBZone Program requirements and many of these contracts are posted on Fed Biz Opps, that can be accessed at http://vsearch2.eps.gov/servlet/SearchServlet. Under ‘Search by Set-Aside Code,’ select either “#5- Total HUB-Zone” or “#11- Partial HUB-Zone.”

Q21. Can the SBA protest a contracting officer’s decision not to award a contract opportunity to a qualified HUBZone small business?

A21. Yes. The SBA’s Administrator may file a written request for re-consideration of the contracting officer’s decision with the Secretary of the Department, or Agency head.

Q22. What is the SBA’s responsibility under the program?

A22. SBA is responsible for formulating regulations to implement and administer the program. SBA is also required to submit a report no later than March 2002 to the Small Business Committee concerning the degree to which the HUBZone Program has resulted in increased employment opportunities and investment in HUBZones. Further, SBA is required to periodically examine and verify participant eligibility and investigate challenges to HUBZone certification.

Website: https://eweb1.sba.gov/hubzone/internet/general/faqs.cfm

Y

Suggested Business Plan Outline

I. Executive Summary

• Should be Written Last-(Two pages or less)

• Should be a High Priority Section

• As a minimum, describe the following:

– The numbers including any cash required

– Company goods and services

– Competitive advantage

– Any other unique features of the Business

II. Business Goals and Objectives

• What are your company’s goals?

• When do you expect to achieve them?

• What are the objectives?

• How and when do you expect to achieve them?

III. Description of the Company, Products and/or Services

• Date and place of incorporation

• Office and general company information

• Founding shareholders and directors

• Legal description of your company

• Describe what your company does

• Describe the type of customers that buy from you

• Describe principle products and/or services

• Price and quality levels

• Major competitions

IV. The Company Story

• Why was your Company Started?

• Be sure, to include your Past Performance and Major Successes or Achievements.

V. Detailed Description of The C.E.O and the Management Team

• Resumes

• Organizational Charts

• References

• Statements of Values, Attitudes or Reputation

• Schedule of Past, Current and Proposed Salaries and other Compensation

• Enclose any Contract or Proposed Contract Between the Firm and Any Member of Management

VI. Competitive Analysis

• Current and Future

• Competition/Competitors

• What is Best

• What Mistakes

• Effectiveness of Competitors Strategy

Z

VII. Understanding Your Market

• Is this product or service in demand?

• How many competitors provide the same service?

• Can I create a demand for my product or service?

• Can I compete effectively in price, quality and delivery?

• Can I price my product or service to assure a profit?

VIII. Operational and Personnel Plan

• Operations – A discussion of what’s needed to develop your product or service in the way of research and development, manufacturing, equipment, facilities, and staffing.

• Personnel – If you need to hire others, the type of workers you will need what kind of background they will need to have, if you will pay benefits or overtime.

IX. Financing Required

• Set measurable financial goals. Set specific targets of what you want to achieve and when you want to achieve results.

• Understand the effect of each financial decision. Each financial decision you make can affect several other areas of your life. Remember that all of your financial decisions are interrelated.

• Re-evaluate your financial situation periodically. Financial planning is a dynamic process. Your financial goals may change over the years due to changes in your lifestyle or circumstances. Revisit and revise your financial plan as time goes by to reflect changes so that you stay on track with your long-term goals.

• Be realistic in your expectations. Financial planning is a common sense approach to managing your finances to reach your life goals. It cannot change your situation overnight; it is a lifelong process. Remember that events beyond your control such as inflation or changes in the stock market or interest rates will affect your financial planning results.

• Realize that you are in charge. If you’re working with a financial planner, be sure you understand the financial planning process and what the planner should be doing. Provide the planner with all of the relevant information on your financial situation. Ask questions about the recommendations offered to you and play an active role in decision-making.

X. Financial Pro forma and Explanations

• Whether or not your projections are realistic.

• How your projections compare against the standards for the industry.

• What operating capital is needed when you increase your sales?

• How you can manage the cash necessary to grow your business.

• How much financing you need to get your business where you want it to be.

• How to make accurate projections to achieve your desired results.

XI. Risk Analysis

Risk management involves five steps:

2. Identifying risk

3. Measuring risk

4. Formulating strategies to limit risk

5. Carrying out specific tactics to implement those strategies

6. Continuously monitoring the effort

AA

Individual Business Development Plan

Date: _____________________________________

Name: ____________________________________

Firm Name: _______________________________

Address: __________________________________

Email Address: ____________________________

Location of Training: _______________________

INTRODUCTION:

The Individual Business Development Plan (IBDP) program is designed to aid the 7(j) business owner in defining realistic one-year business goals and objectives. The firm’s business plan is the key to this process.

INSTRUCTIONS:

The President/CEO should prepare their IBDP using the questionnaire provided below. The deadline for submitting IBDP and participation in the program is one week after the participant’s Boot Camp Session. IBDP shall be e-mailed to Brenda Campbell, Sr. Management Coach at campbell [at] ussmc [dot] com/ ussmc1 [at] ussmc [dot] com or faxed to 301-322-8761. Also, firms needing assistance in achieving their goals should e-mail their questions to Brenda Campbell at campbell [at] ussmc [dot] com. At that point, the President/CEO will be referred to a SBA office or partner for assistance. All firms’ participating in the program will be required to provide feedback on their company’s performance. This assessment will be done the month of May and June of 2006.

The Boot Camp officials will provide further information about the program during the training session.

I. Your Personal Situation and Goals:

1. Do you have personal finance goals? Yes____ No____

If no, what and when will you plan to establish them?

If yes, are they reflected in your firm’s business and strategic plan? Yes__ No___

What are your plans to make your business plan more reflective or your personal goals?

2. Are you happy with your firm’s growth and progress to date? Yes_____ No____

If no, what are your plans to win more work or make progress in your business?

3. Do you have personnel problems that could severely damage your business in the coming year? Yes___ No___

If so, what are your plans to address this issue?

4. Do you have problems financing your company and/or projects? Yes___ No ____

If so, what are your plans to address this issue?

BB

5. Do you currently have an 8(a) contract? Yes____ No___

Do you have problems winning other business? Yes___ No ____

What are your plans to win more work?

6. Are you satisfied with your business plan? Yes____ No ____

If yes, is your plan tailored to different audiences? Yes ____ No ____

If no, what are your plans to address the problems?

II. Your Firm’s Vision:

In one or two sentences state your firm’s vision.

III. Your Firm’s Mission:

In one or two sentences state your firm’s mission.

IV. Your firm’s Revenue Target(s):

2008:

2007:

2006:

2005:

CC

ORAL PRESENTATION

What would you do if you were requested to participate in an oral presentation on your company as opposed to submitting a written technical proposal?

Scenario: We will have two volunteers to come up to the front of the class; we will ask the class to serve as the evaluators(Program Manager, Contract Officer, and COTR). The class will pretend to be apart of a panel that is evaluating a presentation based upon a real solicitation.

DD

Corporate Capabilities Checklist

1. Corporate Capabilities

• Identify the year company was founded/created

• Provide total number of employees

2. Business Cards (NAICS Codes) type business (8(a) GSA Schedules)

• Indicate if on GSA Schedule 70, MOBIS or other Multiple Award Schedules

3. Past Performance Overall

• Identify briefly the types of outcomes, to three specific past and three current contracts [in bullet form]

4. References

5. Line Cards

6. DVD’s/CD’s

7. Provide company name

8. Provide web site address

9. Provide location/mailing address

10. Provide point-of-contact, including telephone number

11. Indicate other applicable contract vehicle, identify if prime or subcontractor

12. Indicate if registered in VetBiz

13. Indicate if registered in CCR

14. Indicate if On Line Reps and Certs (ORCA) completed

15. Identify category of small business (e.g., service disabled veteran owned, veteran owned, minority owned, woman owned, 8a, Hub Zone, small disadvantaged.)

16. Indicate which of the following areas capture overall capabilities/core competencies (i.e., enterprise architecture, portfolio management, cyber and information security, telecommunications)

17. Indicate if any prior Federal Government Experience

18. Identify a representative sample of other clients as appropriate

19. For contracts identified with government and clients, include project names, purpose, outcome, prime or sub, dollar value at award, dollar value at the end of contract, period of performance, POC name, telephone and email address

20. Indicate levels of security clearances of employees

21. Indicate certifications of employees such as, project management, CSP, PE, PMP etc

22. Identify business partners

23. Provide information on recognition/awards if appropriate

24. Success Stories

25. Indicate if registered in CCR

26. Indicate if On Line Reps and Certs (ORCA) completed

27. Identify category of small business (e.g., service disabled veteran owned, veteran owned, minority owned, woman owned, 8a, Hub Zone, small disadvantaged.)

EE

Marketing Checklist

Tools for Marketing Communications

This entry was posted in General Surety. Bookmark the permalink.