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SBA video: The Recovery Act and Government Contracting

December 29, 2009 By 1 Comment

This is a good 15 minute video from the Small Business Administration for businesses interested in government contracting. SBA’s Joe Jordan, the Associate Administrator for Government Contracting, answers questions about government contracting opportunities created by the Recovery Act. It’s a little bit heavy on the public relations aspects and light on detail, but a good overview of what the SBA is doing to help small business get more of the GovCon pie.

Visit our YouTube page for more of our favorite videos: http://www.youtube.com/user/GovConNetwork

For more information about SBA’s Office of Government Contracting, visit them at: http://www.sba.gov/aboutsba/sbaprograms/gc/index.html

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For other SBA videos visit the SBA YouTube page

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Additional Funding for SBA Recovery Lending Programs

December 22, 2009 By Leave a Comment

Additional $4.5 billion in small business loans included in recent appropriations bill signed by the President.

WASHINGTON – President Obama signed the U.S. Department of Defense (DOD) appropriations bill on Saturday, which included $125 million to continue through Feb. 28, 2010, the enhancements made possible through the American Recovery and Reinvestment Act (ARRA) to SBA’s two largest loan programs.

The SBA estimates the additional funding will support $4.5 billion in small business lending.

New approvals of loans with the higher guarantee and reduced fees made possible by ARRA are expected to begin by Dec. 28. Loan applications from borrowers who chose to be placed in the SBA’s Recovery Loan Queue will be funded first, followed by new loan approvals beginning on or before Dec. 28.

“This Administration and Congress recognize that these key programs were successful in helping jump-start the economic recovery for America’s small businesses,” said SBA Administrator Karen Mills. “The increased guarantee and reduced fees on SBA loans helped put more than $16.5 billion in the hands of small business owners and brought more than 1,200 lenders back to SBA loan programs. The extension of these programs through February is important to continuing our path toward recovery and will mean thousands more small business owners have access to the credit they need.

“Just two weeks ago, President Obama laid out key aspects of his jobs plan, including significant ongoing support for small businesses. We will continue to work with Congress on moving those proposals forward, including extending these loan enhancements as the President has called for, to ensure that small business owners have the tools they need to drive economic growth and create jobs in communities all across the country.”

As part of ARRA, SBA received $730 million, which included $375 million to increase the SBA guarantee on 7(a) loans to 90 percent and to waive borrower fees on most 7(a) and 504 loans. More information about the waived fees can be found here. The funds for these programs were exhausted on Nov. 23.

SBA created the Recovery Loan Queue as part of its transition back to pre- ARRA lending on Nov. 23 because previously approved loans are sometimes canceled or never disbursed for a variety of reasons. Eligible small businesses, in consultation with their lender, could choose to be placed in the queue for possible approval of an ARRA loan if funding became available. Currently there are 1,069 loans totaling almost $530 million in the Recovery Loan Queue.

The extension included in the DOD bill authorizes the higher guarantee levels through Feb. 28, 2010. The fee relief is authorized until this additional funding is exhausted or the end of the fiscal year, whichever comes first. As was the case in November, SBA will transition into a queue system as the funds start to wind down in order to ensure the maximum stimulative effect of the programs and disbursement of funds.

For non-ARRA 7(a) or 504 loans funded during the transition period, this extension does not provide a retroactive guarantee or waived fees. Loans that were funded under non-ARRA terms cannot be canceled and resubmitted to take advantage of the ARRA extension provisions.

This extension does not affect other SBA ARRA programs, including the America’s Recovery Capital (ARC) loan program or the agency’s microloans. ARRA funding still remains for both of those programs.

Links:
SBA Web site: http://www.sba.gov
SBA Tweets: http://twitter.com/smallbusinessad
SBA Recovery Loan Queue: http://www.sba.gov/recoveryq/index.html

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SBA Adds New Training Tools to Increase Opportunities for Vets

November 11, 2009 By Leave a Comment

Disabled VeteranWASHINGTON – The U.S. Small Business Administration today announced a three-year agreement to expand and deliver entrepreneurship training for service-disabled veterans of the wars in Iraq and Afghanistan.

The agreement with SBA’s Office of Veterans Business Development will support the expansion of the year-long Entrepreneurship Bootcamp for Veterans with Disabilities (EBV). The expansion of this innovative management training and mentorship program will maximize small business programs for veterans, service-disabled veterans, reserve-component members, and their dependents or survivors.

Additionally, this week SBA launched a new online contracting tutorial on www.sba.gov, as part of its ongoing efforts to expand services to veterans and service-disabled veterans. Veterans and military spouses who own small businesses can utilize this free online course to learn how to identify and take advantage of federal contracting opportunities.

“At this important time, with veterans returning from foreign soil in increasing numbers, we at the SBA are working to ensure they have the resources to successfully start and run their small businesses. As a result of the leadership skills they develop during their service, veterans over-index in entrepreneurial activities,” SBA Administrator Karen G. Mills said today. “Our commitment is to honor that service by helping our nation’s veterans – especially those who return home with disabilities – fulfill the American Dream. Initiatives like the Entrepreneurship Bootcamp and our online training courses give veteran business owners the tools they need to grow, be competitive, and create
jobs.”

Working with Syracuse University’s Whitman School of Management, the University of Connecticut School of Business, Mays Business School at Texas A&M, UCLA Anderson School of Management, Florida State University’s College of Business, and the Krannert School of Management at Purdue University, SBA’s grant and other assistance will significantly expand the reach and impact of the EBV initiative and help maximize economic opportunities for U.S. veterans with disabilities.

The expansion of SBA’s entrepreneurship training initiatives builds on SBA’s support for veterans through its Patriot Express loan program. In less than two-and-a -half year’s time, this pilot loan initiative has supported nearly $400 million in loans to more than 4,700 veterans and spouses looking to establish or expand their small businesses. As a result of the American Recovery and Reinvestment Act, which raised loan guarantees to 90 percent and temporarily eliminated fees, the number of Patriot Express loans increased by more than 20 percent this year over 2008. Local SBA district offices have a listing of Patriot Express lenders in their areas. Details on the initiative can be found at
www.sba.gov/patriotexpress.

To learn more about additional opportunities for veterans available through the SBA, please visit: http://www.www.sba.gov/aboutsba/sbaprograms/ovbd/index.html

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SBA Proposes New Regulations to Strengthen the 8(a) Program

October 28, 2009 By Leave a Comment

The SBA is looking to update the 8(a) program and they are seeking input that you can submit through email (8aBD2@sba.gov) through Dec 28th.

Certified 8(a)WASHINGTON – The U.S. Small Business Administration today announced proposals aimed at strengthening opportunities for disadvantaged small businesses to benefit from its 8(a) Business Development program.

The proposed 8(a) regulation changes are the result of the first comprehensive review of the 8(a) program in a number of years and were published today in the Federal Register. The rules cover a variety of areas of the program, ranging from providing further clarification on determining economic disadvantage to requirements on Joint Ventures and the Mentor-Protégé program. The public comment period on the proposed changes is open for 60 days.

“The 8(a) program has a proven record as an effective program for helping disadvantaged small businesses gain access to training and contracting opportunities to help them grow, create jobs and ultimately succeed in the marketplace once they graduate from the program,” SBA Administrator Karen Mills said. “These proposed changes build on that foundation of success, and will strengthen the program and maximize its benefits for eligible small businesses.”

The 8(a) program is a nine-year business development program for small businesses that fit the SBA’s criteria of being socially and economically disadvantaged. The 8(a) program helps these firms develop their business and provides them with access to government contracting opportunities, allowing them to become solid competitors in the federal marketplace. It also provides specialized business training, counseling, marketing assistance and high-level executive development to its participants. In FY08, small businesses received $16.1 billion in 8(a) contracts.

Some of the components of the 8(a) program that the proposed changes will affect include:

Joint Ventures – qualifying that 8(a) firms are required to perform a significant portion of the work to ensure that these companies are able to build capacity;
Economic Disadvantage – providing more clarification on economic disadvantage as it relates to total assets, gross income, retirement accounts and a spouse of an 8(a) company owner in determining the owner’s access to capital and credit;

Mentor-Protégé Program – requiring that assistance provided through the Mentor-Protégé relationship is directly tied to the protégé firm’s business plan;

Ownership and Control Requirements – providing flexibility in admitting individuals of immediate family members of current and former 8(a) participants;

Tribally-Owned Firms – seeking public comments on the best way to determine whether a tribe meets the criteria of being economically disadvantaged for the 8(a) program;

Excessive Withdrawals – amending regulations on what is considered excessive as a basis for termination or early graduation from the 8(a) program; and

Business Size for Primary Industry – requiring that a firm’s size status remain small for its primary industry code during its participation in the 8(a) program.

Small businesses may submit comments to this proposed rule on or before December 28, 2009, to www.regulations.gov, where they will be posted or mailing them to 409 3rd St. SW, Mail Code: 6610, Washington, DC 20416 or via e-mail at: 8aBD2@sba.gov.

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SBA Proposes Revision of Small Business Size Standards

October 26, 2009 By Leave a Comment

The announcement below was just released by the SBA. It’s hot off the presses so there hasn’t been time to assess the impact across the various business types with changes proposed. More on the impact and unintended consequences later.

SBA Proposes Revision of Size Standards To Expand Opportunities for Small Businesses

Karen Mills

Karen Mills

WASHINGTON – The U.S. Small Business Administration is proposing increases in the size definitions for three broad commercial sectors. The proposed increases cover size standards for 71 different types of businesses, two-thirds of them in retail trade sectors. The rest are in accommodations and food services, and other services.

The changes, if adopted, will expand eligibility to small businesses and help them gain access to SBA’s financial assistance, contracting and other programs.

“SBA has undertaken a comprehensive review of our size standards to ensure they are current and reflect changes in the economy and the marketplace,” SBA Administrator Karen Mills said. “SBA’s lending and government contracting programs provide effective opportunities for small businesses to help them expand and create jobs, especially during these tough economic times. This review and proposed changes will help make these critical programs available to more small businesses and ensure SBA is in a position to be a real partner in helping our nation’s entrepreneurs and small business owners succeed.”

SBA recognizes that in some industries, existing size standards have been affected by changes in industry structure, market conditions and business models. SBA is therefore conducting a comprehensive review of all its small business size standards, and these three proposed rules are the first in the series. SBA is examining every industry to ensure that existing size standards are based on current economic data and SBA will propose to revise those where it believes it is necessary. The newly proposed rules give the public an opportunity to review and comment on SBA’s proposed standards as well as on the data and methodology that SBA uses to evaluate and revise size standards.

Before this comprehensive review, the last overall review of size standards occurred more than 25 years ago. Since then, most reviews of size standards have been limited to in-depth analyses of specific industries requested by the public and federal agencies. The SBA also makes periodic inflation adjustments to its dollar-denominated size standards. The latest inflation adjustment to size standards was published in the Federal Register on July 18, 2008.

Comments can be submitted on this proposed rule on or before Dec. 21, 2009, to www.regulations.gov, where they will be posted, or mailed to Khem R. Sharma, chief, Size Standards Division, 409 3rd St. SW, Mail Code 6530, Washington, DC 20416, or via e-mail at: sizestandards@sba.gov. For more information about SBA’s revisions to its small business size standards, visit http://www.sba.gov/size and click on “What’s New.”

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