Description
SBAs participation in this publication is not an endorsement of the views, opinions, and products.
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U.S. Small Business Administration • Colorado Edition
Resource Guide
for
Small Business
Businesses
Poised for Growth
page 8
Advertising
Phone: 863-294-2812 • 800-274-2812
Fax: 863-299-3909 • www.sbaguides.com
Staff
President/CEO
Joe Jensen [email protected]
English/Spanish Small Business Resource
Advertising
Nicky Roberts [email protected]
Martha Theriault [email protected]
Kenna Rogers [email protected]
Production
Diane Traylor [email protected]
SBA’s Marketing Of?ce:
The Small Business Resource Guide is published
under the direction of SBA’s Of?ce of Marketing and
Customer Service.
Director of Marketing
Paula Panissidi
[email protected]
Graphic Design
Gary Shellehamer
[email protected]
SBA’s participation in this publication is not an
endorsement of the views, opinions, products or
services of the contractor or any advertiser or other
participant appearing herein. All SBA programs
and services are extended to the public on a
nondiscriminatory basis.
Printed in the United States of America
While every reasonable effort has been made
to ensure that the information contained herein
is accurate as of the date of publication, the
information is subject to change without notice.
The contractor that publishes this guide, the federal
government, or agents thereof shall not be held
liable for any damages arising from the use of
or reliance on the information contained in this
publication.
SBA Publication # MCS-0018
This publication is provided under SBA Contract
# SBAHQ05C0014.
RENI
Publishing
Publishers of Small Business Resource
Visit us online: www.sba.gov/co 2 — Colorado Small Business Resource
SMALL BUSINESS
content
2015-2016 COLORADO
FEATURES
4 Introduction
4 Administrator’s Message
6 District Director’s Message
8 Feature Article
The Making of an SBA “Gazelle”
9 Counseling
Getting Help to Start Up, Market
and Manage Your Business
9 SBA Resource Partners
13 SBA’s Learning Center
14 Reaching Underserved
Communities
16 Are You Right for Small
Business Ownership?
17 Writing a Business Plan
18 Capital
Financing Options to Start or
Grow Your Business
18 SBA Business Loans
20 What to Take to the Lender
28 Surety Bond Guarantee
Program
28 Small Business Investment
Company Program
28 Small Business Innovation
Research Program
29 Small Business Technology
Transfer Program
31 SBA Loan Program Chart
33 SBA Lenders Program Chart
34 Contracting
Applying for Government
Contracts
34 How Government Contracting
Works
35 SBA Contracting Programs
38 Getting Started in Contracting
39 Disaster Assistance
Knowing the Types of Assistance
Available for Recovery
41 Advocacy and Ombudsman
Watching Out for Small Business
Interests
42 Additional Resources
Taking Care of Start Up Logistics
45 Business Organization:
Choosing your Structure
47 Other Assistance
51 Lender Listing
On the Cover: Elliott Henry, owner of two
companies working out of one building,
Maintenance Unlimited Janitorial and
Unlimited Water Processing. See his
success story on page 53.
Visit us online: www.sba.gov/co 4 — Colorado Small Business Resource
At the SBA, one of our core missions is to
provide access to capital in an inclusive
manner. But that’s not the end of our
commitment to America’s small business
owners; it’s only the start.
We know small businesses need reliable
lending to grow, but we also know how
important it is to provide information
regarding business fundamentals,
regulatory compliance, capital
management, public contract bidding,
exporting and networking to create new
opportunities and new customers.
Two of three graduates of the SBA’s
Emerging Leaders program go on to
increase their revenue; three out of four
make new hires and nearly half secure
government contracts. I’ll never forget
meeting the head of a public utilities
company when I was a banker in Los
Angeles. His company was committed to
working with more underserved businesses
and he told me he had a strong preference
to contract with companies whose
executives had been through programs
like this one. He said Emerging Leaders
are more sophisticated. They speak the
language of business and know how to run
sound operations and how to problem-
solve. Learn more about this program in
the Counseling section of this guide.
The SBA is also focused on the unique
opportunities presented by international
commerce. Over the next decade, one
billion consumers are going to join the
global middle class. The SBA’s State
Trade and Export Promotion (STEP)
program can help small businesses sell to
them. We’re also focused on helping more
of our military veterans apply their military
leadership skills to their dream of business
ownership through Boots to Business.
Most of the job creation in our economy
comes when small businesses get the
counseling, capital and contracts they need
to implement their expansion plans. This
guide will give you fresh ideas about how
the SBA can work with your small business
to scale up and reach even greater heights.
Go to www.sba.gov to learn more about
how the SBA can support your growth
strategy. We look forward to working with
you to help your business realize its full
potential.
Warmest regards,
Maria Contreras-Sweet
Administrator
U.S. Small Business Administration
F R O M T H E A D MI NI S T R A T O R
The U.S. Small Business Administration
Take Your Business
to the Next Level
Message From The District Director
Visit us online: www.sba.gov/co 6 — Colorado Small Business Resource
Colorado is a Great
Place to Start a
Small Business
T
he numbers speak for
themselves. More than
98 percent of all businesses
in Colorado have fewer
than 100 employees, and
86 percent have fewer than 20 workers.
Small business played a critical role in
keeping the state’s economy afoat during
the 2008 recession, and continues to drive
new job creation today. At the SBA, we
have an important role to play and I like
to describe our core mission in simple
terms with three C’s: capital, counseling
and contracts. We work with more than
100 different statewide lending partners
to provide access to capital. We have
a vast network of business resources to
provide counseling to assist entrepreneurs.
And we open new markets and connect
small businesses with federal contracts –
including international export contracts.
It can be easy to forget the importance
that small business plays in our lives, in
our communities, and across our state.
It was the 1920’s political humorist Will
Rogers that said “A man only learns in
two ways, one by reading, and the other
by association with smarter people.”
Over the years I have met thousands of
small business owners and these men and
women are some of the most imaginative,
creative, innovative, and business smart
people I have ever met.
Owning and managing a small business
is challenging.With more than 560,000
small frms in Colorado, employing over
one million people – small business is the
heart and soul of our state’s economy.
That’s at least 560,000 Coloradans that
must make payroll each week; need to
collect and pay taxes regularly; and have
a sense of personal responsibility to their
employees and their families for their
well-being. Small business owners are
required to wear many different hats.
They are the company’s sales force, IT
administrators, janitors, delivery person,
head cheerleader, and accountant. All
these functions in addition to being a
mother, father, parent, soccer coach,
school volunteer, caretaker, brother,
sister, and friend.
Colorado is one of the best states in the
nation to start and grow a small business.
Small business remains the backbone of
our economy; they maintain our local
tax base, hire locally, and support our
local community organizations and
non-profts like our schools, little league
teams, libraries, and churches. SBA
Administrator Maria Contreras-Sweet
likes to say the SBA should stand for
“Smart, Bold, and, Accessible.” She
knows that the key to a strong and lasting
middle-class is opportunity for all.
This Reni Guide is a beginning step in
your journey to small business ownership.
The SBA remains committed to helping
all Coloradans fulfll their dreams of
entrepreneurship and looks forward to a
long and successful relationship with you
and your business.
Good luck in your future endeavors.
Sincerely,
Edward J. Cadena
District Director of
SBA’s Colorado District Ofce
COLORADO
SBA Staff Listing
Edward J. Cadena
District Director
303-844-2159
[email protected]
Frances Padilla
Deputy District Director
303-844-4293
[email protected]
Brad Currie
Administrative Of?cer
303-844-0509
[email protected]
Briana Wilson
District Support Assistant
303-844-5234
[email protected]
BUSINESS OPPORTUNITY
SPECIALISTS:
Carolyn Terrell
Supervisory Business Opp.
Specialist
303-844-5238
[email protected]
JoAnna Burciaga
Business Opp. Specialist
303-844-6504
[email protected]
Katherine Roth
Business Opp. Specialist
303-844-3461
[email protected]
James Klitzke-Kidd
Business Opp. Specialist
303-844-0528
[email protected]
Charles Aycock
Business Opp. Specialist
303-844-5638
[email protected]
LENDER RELATIONS
SPECIALISTS:
James Van Horn
Lead Lender Relations
Specialist
303-844-5237
[email protected]
Robert Martin
Lender Relations Specialist
303-844-6508
[email protected]
SURETY BOND
SPECIALISTS
Jennifer Vigil
Area Director
303-844-927-3489
[email protected]
Leonard English
Surety Bond Specialist
303-927-3485
[email protected]
Richard Gomez
Surety Bond Specialist
303-927-3490
[email protected]
Leslie Long
Surety Bond Specialist
303-927-3476
[email protected]
Tamara Murray
Surety Bond Specialist
303-927-3479
[email protected]
Danny Vu
Surety Bond Specialist
303-927-3478
[email protected]
ADVOCACY
John Hart
Region VIII Advocate
303-844-0503
[email protected]
EXPORTING
Bryson Patterson
Export Finance Specialist
303-844-6622
[email protected]
GOVERNMENT
CONTRACTING
Tom Clarke
Industrial Specialist/
Forestry
303-927-3486
[email protected]
Edward J. Cadena
Visit us online: www.sba.gov/co Colorado Small Business Resource — 7
When Maria Velez began Ayuda
Companies in 2002 she knew the
focus of the business needed to
center around her core values of
commitment, courage, creativity,
consistency, challenges, compassion,
and community. In the beginning
the business had one employee
and $33,000 in revenue. Today,
Ayuda Companies has grown to
40 employees and $16 million in
revenues.
Maria Velez learned very early in life
about the importance of hard work
and treating people fairly. She learned
these principles from her grandfather
who taught himself English and
worked his way up to becoming
the head chef at Jack Dempsey’s
Broadway Restaurant in New York
City. Maria Velez comes from an
Ecuadorian family of entrepreneurs
including her dad who started an
IT company, and her aunt who ran
a successful snack stand in Cuenca,
Ecuador. She was taught that nothing
would be handed to you in life, and
no task is worth doing unless you are
willing to go above and beyond and
do it right.
Ayuda Companies provides
environmental remediation,
environmental consulting, and
construction management to
customers in both the public and
private sectors. In order to help spur
revenue growth at her business Velez
applied to and was accepted into the
SBA’s 8(a) Business Development
Program. The positive results were
immediate and Maria eventually
needed to fnd a business partner that
complemented her skillsets. In 2006,
Sonya Yungeberg joined Velez as
executive vice president and co-owner
of the business.
Along the way Ayuda Companies
utilized other SBA programs including
the Surety Bond Guaranty Program
which helped the business win
construction contracts at Buckley
Air Force Base and the Blue Grass
Chemical Depot. In 2013, with the
assistance of an SBA 504 loan, Ayuda’s
owners were able to purchase an
old mansion located in a Denver
HUBZone which they converted into
their corporate ofce.
In 2014, Ayuda became a participant
in the SBA’s Mentor Protégé Program
which connected them to a large
business mentor on environmental
remediation contracts. Ayuda has
gained valuable expertise and
greatly benefted from this business
opportunity. Both Velez and
Yungeberg look forward to paying
this assistance forward by mentoring
another less experienced company
following their graduation from the
8(a) program.
Community is one of Maria Velez’s
core values that she feels most
strongly about. Ayuda Companies has
a policy that allows each employee
to give two hours of paid work time
each month towards any charity
the employee chooses. Maria is
committed to speaking at training
sessions throughout Colorado
targeting minority women, small
business owners, and service members
leaving the U.S. armed forces. She
has also spoken at high schools to
encourage students to fnd their sense
of creativity and overcome challenges
in order to graduate on time. Ayuda
Companies has certainly become a
Colorado and SBA business success
story!
THE COLORADO DISTRICT OFFICE
The Colorado District Ofce is
responsible for the delivery of SBA’s
programs and services. The District
Ofce is located in the Custom House,
721 19th St., Ste. 426, Denver, CO 80202.
Ofce hours are from 8:00 am until 4:30
pm, Monday through Friday, except
holidays. Please note a picture ID is
required to enter the building.
Phone Number: 303-844-2607
Website: www.sba.gov/co
Doing Business in Colorado
SUCCESS STORY
Ayuda Companies
Leverages SBA Programs
for Business Success
Visit us online: www.sba.gov/co 8 — Colorado Small Business Resource
F
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Throughout the pages of this resource guide,
you’ll read about how SBA has resources,
programs, and services for small business owners
and aspiring entrepreneurs at every stage of the
business life cycle. This is de?nitely true; from
developing your business plan to helping you
?nance a new location to taking your product
overseas, SBA is there for you. However, I’d be
lying if I didn’t say there was a special place in my
heart for what we here at SBA Headquarters refer
to as the “gazelles.”
Gazelles are animals that are known for being
both graceful and quick, outrunning their
predators and surviving under what are often very
harsh conditions. It is exactly in that context that
we use the term. Like the top students in school,
SBA’s “gazelles” are those businesses that you
can just tell are destined for greatness. They have
a certain quality that is intrinsic to their nature; it
comes from within. They don’t just want to coast
by; they want to succeed. Life may deal them
challenges, but they have the drive to survive. In
a nutshell, SBA gazelles are hungry. They seek
out and take advantage of every opportunity.
SBA gazelles are at a certain stage in their
business life cycle. We call them “poised for
growth,” and, while the potential to be a gazelle
may be inherent, a small business owner that
hones his or her skills through experience and
training at this phase is much more likely to
thrive. It is for this reason that SBA offers a
number of training programs for small businesses
in this stage of development, such as our
Emerging Leaders Program and the 8(a) Business
Development Program. Both programs are
designed for small business owners with some
experience under their belts and a desire, like the
gazelle that swiftly and gracefully leaps to safety,
not just to survive but to thrive.
Earlier this year, I sat down with some of the
graduates from the Baltimore and Washington,
DC classes of the 2015 Emerging Leaders
Program to hear about their experience and
whether they would recommend the program
to other small business owners like themselves.
They were overwhelmingly positive about the
program, and, though they admitted it was
hard work, they highly recommended it to their
peers. Visiting with them was invigorating and
reminded me of all the great work we do in our
district of?ces to help small businesses succeed.
If you’d like to feel inspired, check out the video
we made for small business owners who are
considering applying for the program at
www.sba.gov/emergingleaders.
The next several pages pro?le just a handful of
the small businesses that have succeeded, in
large part, due to the assistance they received
from SBA. Lest anyone think from this article
that we take credit for an SBA gazelle’s success,
we acknowledge that we play but a small
role in a business’ rise to becoming “the next
household name.” We hope these stories both
inspire and motivate you to pursue the path of
entrepreneurship.
For more information about the SBA Emerging
Leaders Program, please visit
www.sba.gov/emergingleaders.
For information on the 8(a) Business Development
Program, see www.sba.gov/8a.
To fnd the location of your nearest SBA District
Ofce, visit www.sba.gov/tools/local-assistance.
The Making of an SBA
“Gazelle”
by Paula Panissidi, SBA’s Director of Marketing
Visit us online: www.sba.gov/co Colorado Small Business Resource — 9
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very year, the U.S. Small
Business Administration
and its nationwide network
of resource partners help
millions of potential and
existing small business owners start,
grow and succeed.
Whether your target market is global
or just your neighborhood, the SBA and
its resource partners can help at every
stage of turning your entrepreneurial
dream into a thriving business.
If you’re just starting out, the SBA
and its resources can help you with
business and fnancing plans. If you’re
already in business, you can use
the SBA’s resources to help manage
and expand your business, obtain
government contracts, recover from
disaster, fnd foreign markets, and
make your voice heard in the federal
government.
You can access SBA information at
www.sba.gov or visit one of our local
offces for assistance.
SBA’S RESOURCE
PARTNERS
In addition to our district offces,
which serve every state and territory,
the SBA works with a variety of local
resource partners to meet your small
business needs: SCORE chapters,
Small Business Development Centers
(SBDCs), and Women’s Business
Centers (WBCs). This partner
network reaches into communities
across America: More than 13,000
business counselors, mentors and
trainers available through over 900
Small Business Development Centers,
110 Womens’ Business Centers and 350
SCORE chapters. These professionals
can help with writing a formal business
plan, locating sources of fnancial
assistance, managing and expanding
your business, fnding opportunities
to sell your goods or services to the
government, and recovering from
disaster. To fnd your local district offce
or SBA resource partner, visit
www.sba.gov/tools/local-assistance.
SCORE
SCORE is a national network of more
than 11,000 entrepreneurs, business
leaders and executives who volunteer as
mentors to America’s small businesses.
SCORE volunteers donated more than
1.1 million hours providing services
to small business clients. SCORE
leverages decades of experience from
seasoned business professionals to
help entrepreneurs to start and grow
companies and to create jobs in local
communities. SCORE does this by
harnessing the passion and knowledge
of individuals who have owned and
managed their own businesses and
want to share this “real world” expertise
with you.
Found in more than 350 chapters
and 800 locations throughout the
country, SCORE provides key services
– both face-to-face and online – to busy
entrepreneurs who are just getting
started or are in need of a seasoned
business professional as a sounding
board for their existing business. As
members of your community, SCORE
mentors understand local business
licensing rules, economic conditions and
important business networks. SCORE
can help you as they have done for
many entreprenurs through the years
by:
• Matching your specifc needs with a
business mentor
• Traveling to your place of business
for an on-site evaluation
• Teaming with several SCORE
mentors to provide you with tailored
assistance in a number of business
areas
Across the country, SCORE offers
more than 10,000 local business
educational workshops and seminars
ranging in topic and scope depending
on the needs of the local business
community. SCORE workshops cover
all manner of business topics, including:
an introduction to the fundamentals of
a business plan, managing cash fow
and marketing your business. For
established businesses, SCORE offers
more in-depth training in areas like
customer service, hiring practices and
home-based businesses.
For around-the-clock business advice
and information on the latest business
news and trends visit www.sba.gov/score
or call 800-634-0245 for the SCORE
offce nearest you. More than 1,200
online mentors with over 150 business
skill sets answer your questions about
starting and running a business.
For more information on SCORE and
to get your own business mentor, visit
www.SCORE.org.
• You get to be your own boss.
• Hard work and long hours directly bene?t you,
rather than increasing pro?ts for someone else.
• Earnings and growth potential are unlimited.
• Running a business will provide endless
variety, challenge and opportunities to learn.
ON THE UPSIDE
It’s true, there are a lot of
reasons not to start your
own business. But for the
right person, the advantages
of business ownership far
outweigh the risks.
COUNSELING
Getting Help to Start, Market and Manage Your Business
Colorado SCORE Chapters:
Jack Scott, District Director
721 19th St., Ste. 426
Denver, CO 80202
303-844-3985
[email protected]
Chris Van Lauwe, Chapter Chair
Denver Chapter 62 (Denver, Glenwood
Springs, Castle Rock, Northern Colorado)
721 19th St., Ste. 426
Denver, CO 80202
303-844-3985
[email protected]
J. R. Dickens, Chapter Chair
Colorado Springs Chapter 206
3595 E. Fountain Blvd., Ste. G1
Colorado Springs, CO 80910
719-636-3074
Coloradosprings.score.org
Michelle Parks, Chapter Chair
Pueblo Chapter 110
302 N. Santa Fe
Pueblo, CO 81003
719-542-1704
Pueblo.score.org
Randy Rudasics
Steamboat Springs SCORE Of?ce
Yampa Valley Entrepreneurship Center
Colorado Mountain College
1275 Crawford Ave.
Steamboat Springs, CO 80487-5189
970-870-4491
[email protected]
SMALL BUSINESS
DEVELOPMENT CENTERS
The U.S. Small Business
Administration’s Small Business
Development Centers (SBDC) mission
is to build, sustain, and grow small
businesses; as well as to promote small
business development and enhance local
economies by creating businesses and
fulflling its mission of creating jobs.
The Small Business Development
Centers, vital to SBA’s entrepreneurial
outreach, have been providing service
to small businesses for almost 35 years.
It is one of the largest professional
small business management and
technical assistance networks in the
nation. With over 900 locations across
the country, SBDCs offer existing and
future entrepreneurs free one-on-one
expert business counseling and low-cost
training by qualifed small business
professionals.
In addition to its core services,
the SBDCs offer special focus areas
such as green business technology,
disaster recovery and preparedness,
export assistance, international trade
assistance, veteran’s assistance,
technology transfer and regulatory
compliance.
The program combines a unique
combination of federal, state and private
sector resources to provide, in every
state and territory, the foundation
for the economic growth of small
businesses. The return on investment is
demonstrated by the program’s success
during FY2013.
• Assisted more than 14,200
entrepreneurs to start new
businesses – equating to nearly 39
new business starts per day.
• Provided counseling services to
more than 104,000 emerging
entrepreneurs and over 96,000
existing businesses.
• Provided training services to
approximately 330,000 clients.
The effcacy of the SBDC program
has been validated by a nationwide
impact study. Of the clients surveyed,
more than 80 percent reported that the
business assistance they received from
the SBDC counselor was worthwhile.
The top fve impacts of counseling
cited by SBDC clients were revising
marketing strategy, increasing sales,
expanding products and services,
improving cash fow and increasing
proft margin. More than 40 percent of
long-term clients receiving fve hours or
more of counseling reported an increase
in sales and proft margins.
For information on the SBDC
program, visit www.coloradosbdc.org or
ww.sba.gov/sbdc.
Colorado SBDC Locations:
Boulder SBDC
Boulder Public Library
1001 Arapahoe Ave.
Boulder, CO 80302
303-442-1475
Colorado Springs SBDC
El Paso County Citizens Center
1675 Garden of the Gods Rd., Ste. 1107
Colorado Springs, CO 80907
719-667-3821
Denver Metro SBDC
Denver Metro Chamber of Commerce
1445 Market St.
Denver, CO 80202
303-620-8076
East Colorado SBDC
UNC BizHub
807 17th St., Ste. D
Greeley, CO 80631
970-351-4274
Grand Junction SBDC
Western Colorado Business Development
Corporation
2591 Legacy Way
Grand Junction, CO 81503
970-243-5242
Southeast Colorado SBDC
Otero Junior College
1802 Colorado Ave.
La Junta, CO 81050
719-384-6959
Larimer SBDC
Rocky Mountain Innosphere
320 E. Vine Dr. #303
Fort Collins, CO 80524
970-498-8918
North Metro Denver SBDC
Front Range Community College -
Westminster Campus
3645 W. 112th Ave.
Westminster, CO 80031
303-404-5340
Northwest Colorado SBDC
Colorado Mountain College - Summit
Campus
325 Fiedler Ave./P.O. Box 1414
Dillon, CO 80435
970-968-5802
San Luis Valley SBDC
Alamosa County Economic Development
Corporation
610 State Ave., #120
Alamosa, CO 81101
719-589-3682
Aurora - South Metro SBDC
15151 E. Alameda Pkwy., #2300
Aurora, CO 80012
303-326-8686
Southern Colorado SBDC
131 S. Main St.
Pueblo, CO 81003
719-549-3224
Southwest Colorado SBDC
Fort Lewis College
1000 Rim Dr., 140 EEB
Durango, CO 81301
970-247-7009
West Central SBDC
Western State Colorado University
112 Taylor Hall
Gunnison, CO 81231
970-943-3157
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Visit us online: www.sba.gov/co 10 — Colorado Small Business Resource
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SBDC Lead Center
Kelly Manning, State Director
Colorado SBDC Network
303-892-3840
The Lead Center sponsors entrepreneurial
training for business owners through
the Leading Edge program and manages
the Connect2DOT program which helps
small businesses capitalize on contracting
opportunities with the Colorado Department
of Transportation.
For more information about the Colorado
SBDC Network visit: www.coloradosbdc.org/.
Colorado Small Business
Development Center Program
Recap:
Connect2DOT:
www.connect2dot.org
Connect2DOT is a new program
formed as a result of an innovative
partnership between the Colorado
SBDC Network and the Colorado
Department of Transportation (CDOT).
The program is designed to help small
businesses in the transportation
industry become more competitive
and successful in bidding and
contracting with CDOT and other local
transportation agencies.
In addition to free one-on-one
consulting and business training,
Connect2DOT provides online resources
and events tailored to construction
contractors and professional design,
architecture and engineering
frms. Whether you’re just starting
your business and want to explore
opportunities with CDOT, or you’re
an experienced subcontractor looking
to grow and expand your business,
Connect2DOT has the expertise and
resources to help.
SBDC Advanced:
www.coloradosbdc.org/consulting/sbdc-
advanced
SBDC ADVANCED is a new business
development program administered by
the Colorado SBDC Network. It is an
economic gardening program, focused
on helping Colorado companies to grow
by providing custom-ft market research
and corporate-level tools that might
otherwise be out of reach for small to
mid-sized businesses. These businesses
can then use this data to make informed
strategic growth decisions.
The SBDC ADVANCED program
is open to Colorado businesses at
three levels: Gold, Silver, and Copper.
Deliverables provided may include
specialized reports in market research,
geographic information systems (GIS),
fnancial analysis, marketing and
search engine optimization (SEO).
The SBDC ADVANCED program taps
into corporate-level tools, experienced
consultants and their strategic plans.
Disaster Relief Program:
www.coloradosbdc.org/disaster
The Colorado SBDC Network is here
to help businesses that have been
affected by recent Colorado disasters,
including devastating wildfres and
foods. Come to the SBDC for assistance
with disaster loan applications, long-
term planning, insurance navigation,
physical and economic loss estimations,
business preparedness and more.
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The SBDC is using all available local,
state and federal resources to help
businesses recover and works closely
with communities impacted by these
disasters.
Veteran’s Program:
www.coloradosbdc.org/consulting/veterans
Since 2010, the Colorado SBDC
Network has been awarded a Veteran’s
Grant from the U.S. Small Business
Administration to provide one-on-one
business consulting and specialized
training and programs for Colorado
veterans and their families. We are
dedicated to helping veterans become
successful. That’s why we’ve brought
on consultants specializing in sales,
marketing, government contracting,
certifcations and fnancials, who are
also veterans, to meet with you one-
on-one, at no cost, to help bring your
business to the next level. Contact your
local SBDC and let them know you are
a veteran to schedule an appointment
with one of our specialized veteran
consultants.
Join us each year as we offer our
Veteran’s Small Business Conference
and Resource Fair, which has been held
in Denver and Colorado Springs. This
event brings together subject experts on
a variety of topics all aimed specifcally
at the veteran entrepreneur. The day
concludes with a networking event and
cocktail hour.
Health Insurance Marketplace:
www.coloradosbdc.org/consulting/health
The Colorado SBDC Network has
been chosen to be an assistance site for
Connect for Health Colorado™, the new
online marketplace where individuals
and small employers in Colorado can
shop, compare, pick and purchase
health insurance plans and apply for
fnancial help to reduce costs. Certifed
Health Coverage Guides are available
at your local SBDC to meet with small
business owners one-on-one for no cost
assistance to help you navigate the new
marketplace.
Worksite Wellness:
www.coloradosbdc.org/consulting/wellness
The Colorado SBDC has partnered
with Health Links™ to provide small
businesses assistance in creating a
work environment that promotes
safety, physical activity, healthy habits
and overall well-being for employees
through work-site certifcation and
seed money. Health Links recognizes
small businesses that champion
worker well-being and safety with
the Health Links™ Health Business
Certifcation, a program that recognizes
small businesses for meeting or
exceeding worker health and safety
standards. Certifed businesses will
receive community, industry and media
recognition; a promotional package
including certifcate, stickers, logos and
icons; recognition on the Health Links
and SBDC websites; discounts from
sponsors and vendors and more. For
small businesses that are just getting
started, Health Links provides support
through the Kick-Start Program, which
awards seed funding and provides
free one-on-one consulting by certifed
SBDC consultants to qualifed small
businesses for successfully building
work-site wellness and safety programs.
Businesses with 2-49 employees can
apply to receive the funding and
assistance, which includes creating a
Health Business Road Map: an action
plan for creating a health, safe and fun
place to work.
International Trade:
www.coloradosbdc.org/consulting/
international
If you’re a Colorado manufacturer or
professional service provider looking to
start or expand your international trade
efforts, certifed SBDC consultants
through the Offce of Economic
Development and International Trade
(OEDIT) are ready to meet with you
to provide free assistance. The Offce
of International Trade works to create
and retain jobs by helping Colorado
companies expand and diversify their
markets, as well as build the state’s
identity as an international business
center. The international staff assists
companies in obtaining the information,
skills, resources and contacts you need
to successfully export goods and services
worldwide.
U.S. Export Assistance Centers
SBA trade fnance specialists are
located in 19 U.S. Export Assistance
Centers throughout the U.S., which
also are staffed by U.S. Department
of Commerce and, in some locations,
Export-Import Bank of the U.S.
personnel, providing trade promotion
and export-fnance assistance in a
single location. The USEACs also
work closely with other federal,
state and local international trade
organizations to provide assistance to
small businesses. To fnd your nearest
USEAC, visit: http://www.sba.gov/content/
us-export-assistance-centers. You can
fnd additional export training and
counseling opportunities by contacting
your local SBA district offce.
WOMEN’S BUSINESS CENTERS
The SBA’s Women Business Center
(WBC) program is a network of over 100
community-based centers that provide
business training, counseling, coaching,
mentoring and other assistance geared
toward women, particularly those
who are socially and economically
disadvantaged. WBCs are located in
nearly every state and U.S. territory
including the District of Columbia
and the territories of Puerto Rico and
American Samoa. They are partially
funded through a cooperative agreement
with the SBA.
To meet the needs of women
entrepreneurs, WBCs offer services
at convenient times and locations,
including evenings and weekends.
WBCs are located within non-proft host
organizations that offer a wide variety
of services in addition to the services
provided by the WBC. Many of the
WBCs also offer training and counseling
and provide materials in different
languages in order to meet the diverse
needs of the communities they serve.
WBCs often deliver their services
through long-term training or group
counseling, both of which have shown to
be effective. WBC training courses are
often free or are offered for a small fee.
Some centers will also offer scholarships
based on the client’s needs.
While most WBCs are physically
located in one designated location, a
number of WBCs also provide courses
and counseling via the Internet, mobile
classrooms and satellite locations.
WBCs have a track record of success.
In fscal year 2013, the WBC program
counseled and trained nearly 134,000
clients, creating local economic growth
and vitality. In addition, WBCs helped
entrepreneurs access more than
$25 million dollars in capital. Based
on a 2010 Impact Study, of the WBC
clients that have received three or
more hours of counseling, 15 percent
indicated that the services led to hiring
new staff, 34 percent indicated that
the services led to an increased proft
margin, and 47 percent indicated that
the services led to an increase in sales.
In addition, the WBC program has
taken a lead in preparing women
business owners to apply for the
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Women-Owned Small Business
(WOSB) Federal Contract program
that authorizes contracting offcers to
set aside certain federal contracts for
eligible women-owned small businesses
or economically disadvantaged women-
owned small businesses. For more
information on the program, visit
www.sba.gov/wosb.
To fnd the nearest SBA WBC, visit
www.sba.gov/women.
Colorado Women’s Business Center
Location:
Mi Casa Resource Center
360 Acoma St.
Denver, CO 80223
303-573-1302 • 303-595-0422 Fax
[email protected]
SBA EMERGING LEADERS
The intense seven-month
entrepreneurship training for small
business leaders creates a learning
environment to accelerate the growth
of high-potential small businesses,
stimulates job creation and helps drive
economic development within their
communities. A competitive selection
process results in company executives
participating in high-level training
and peer-networking sessions led by
professional instructors. Graduates
are poised to create an economic ripple
effect because they are now equipped
with the support, resources and
enhanced business skills to succeed
in increasing their revenue, creating
jobs and driving sustainable economic
growth throughout their communities.
Impact of Emerging Leaders:
The initiative is currently offered in
27 underserved communities across
the country with plans to expand
to more communities in 2015. Over
2,500 businesses have participated in
Emerging Leaders since its inception.
An independent impact study of
Emerging Leaders past participants
reported that they:
• Created nearly 2,000 new full-time
jobs
• Secured federal, state, local and
tribal contracts awards over
$1 Billion
• Accessed over $73 Million in new
fnancing
• 95% were satisfed with the
Emerging Leaders program.
Visit www.sba.gov/emergingleaders for
more information.
SBA’S LEARNING CENTER
SBA’s Learning Center is a virtual
campus complete with free online
courses, workshops, podcasts and
learning tools.
Key Features of the SBA’s Learning
Center:
• Training is available anytime and
anywhere — all you need is a
computer (or mobile device) with
Internet access.
• Nearly 50 free online and
interactive courses and workshops
available.
• Checklists and worksheets to get
your business planning underway.
• Course topics include how to write
a business plan, fnancing options
that include SBA lending programs,
mastering overseas markets
through exporting, public sector
procurement tactics, and specialty
material for veterans, young
entrepreneurs, and women business
owners.
• Over 10 new courses launched
in the last year; including a new
Spanish-language version of a
course for Young Entrepreneurs.
This robust portal also includes
video content, templates, and
articles.
Visit www.sba.gov/learning for these
free resources.
SBA’S CLUSTER INITIATIVE
Every small business must
effectively connect into the key
relationships necessary to drive
success in its particular industry or
market sector. Regional Innovation
Clusters act as a networking hub
to connect small businesses in
a particular industry sector and
geographic region with other business
innovators in the same sector and
with specialized suppliers, research
institutions, large prime customers
or contractors and investors who also
operate in that sector. In addition,
market success requires small
businesses to know their customers
and target their product development
dollars effciently. Therefore, through
intensive, industry-specifc technical
assistance, our Clusters help small
business innovators commercialize
promising technologies needed by
government and industry buyers
in that particular sector. And then,
through showcasing, networking
and “demonstration events,” they
help get these small businesses and
their products in front of investment
and other funding sources, research
institutions and customers/buyers in
order to bring products to market.
Across the country, our resource
partners work with our Regional
Innovation Clusters: The resource
partners provide the businesses with
information and coaching on the key
building blocks of business success,
while the Cluster experts help them
with the highly technical product
development and relationship-building
assistance necessary to get and keep
customers and investors in their
particular market sector (such as
smart-grid, fuel cell energy storage,
solar cells, imaging, aerospace, and
agricultural processing technologies
and networks).
For more information on SBA’s
Cluster Initiative, go to
www.sba.gov/clusters.
FINANCIAL LITERACY
If you want to start a business or
learn how to better manage your
business money, begin with Money
Smart. SBA and FDIC jointly provide
an instructor-led business training
curriculum, Money Smart for Small
Business, for free. This curriculum
is designed to provide introductory-
style training for new and aspiring
entrepreneurs. The 10 modules
provide the most essential information
on running a small business from a
fnancial standpoint. In addition to
grounding participants in the basics,
the curriculum serves as a foundation
for more advanced training and
technical assistance. You can fnd this
curriculum by visiting
www.sba.gov/moneysmart.
To learn more about the Financial
Literacy and Education Commission,
visit www.mymoney.gov.
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The SBA also offers a number of
programs specifcally designed to
meet the needs of the underserved
communities..
WOMEN BUSINESS OWNERS
Women entrepreneurs are changing
the face of America’s economy. In the
1970s, women owned less than
5 percent of the nation’s businesses.
Today, they are majority owners
of about a third of the nation’s small
businesses and are at least equal
owners of about half of all small
businesses. SBA serves women
entrepreneurs nationwide through its
various programs and services, some
of which are designed especially for
women.
The SBA’s Offce of Women’s
Business Ownership (OWBO) serves
as an advocate for women-owned
businesses. The offce oversees a
nationwide network over 100 Women’s
Business Centers that provide business
training, counseling and mentoring
geared specifcally to women, especially
those who are socially and economically
disadvantaged. The program is a
public-private partnership with locally-
based nonprofts.
Women’s Business Centers serve
a wide variety of geographic areas,
population densities, and economic
environments, including urban,
suburban, and rural. Local economies
vary from depressed to thriving, and
range from metropolitan areas to entire
states. Each Women’s Business Center
tailors its services to the needs of its
individual community, but all offer a
variety of innovative programs, often
including courses in different languages.
They provide training in fnance,
management, and marketing, as well as
access to all of the SBA’s fnancial and
procurement assistance programs.
Colorado Women’s Business Center
Location:
Mi Casa Resource Center
360 Acoma St.
Denver, CO 80223
303-573-1302 • 303-595-0422 Fax
[email protected]
VETERAN BUSINESS OWNERS
The Offce of Veterans Business
Development (OVBD), established
with Public Law 106-50, has taken
strides in expanding assistance to
veteran, service-disabled veteran small
business owners and reservists by
ensuring they have access to SBA’s full-
range of business/technical assistance
programs and services, and that
they receive special consideration for
SBA’s entrepreneurial programs and
resources.
The SBA’s Veterans Offce provides
funding and collaborative assistance for
a number of special initiatives targeting
local veterans, service-disabled
veterans, and Reserve Component
members. These initiatives include
Veterans Business Outreach Centers
(VBOCs), the business assistance tools
–Balancing Business and Deployment,
and Getting Veterans Back to Business,
which includes interactive CD ROMs
for reservists to help prepare for
mobilization and/or reestablishment
of businesses upon return from active
duty.
The agency offers special assistance
for small businesses owned by activated
Reserve and National Guard members.
Any self-employed Reserve or Guard
member with an existing SBA loan
can request from their SBA lender
or SBA district offce loan payment
deferrals, interest rate reductions and
other relief after they receive their
activation orders. In addition, the
SBA offers special low-interest-rate
fnancing to small businesses when an
owner or essential employee is called
to active duty. The Military Reservist
Economic Injury Disaster Loan Program
(MREIDL) provides loans up to
$2 million to eligible small businesses to
cover operating costs that cannot be met
due to the loss of an essential employee
called to active duty in the Reserves or
National Guard.
Each of the SBA’s 68 District
Offces also has a designated veteran’s
business development offcer. These
local points-of-contact assist veteran
small business owners/entrepreneurs
with starting, managing and growing
successful businesses. Yearly, OVBD
reaches thousands of veterans, Reserve
component members, transitioning
service members and others who
are – or who want to become –
entrepreneurs and small business
owners. In fscal year 2012, the number
of veterans assisted through OVBD
programs exceeded 135,000. For more
information about OVBD, please visit
www.sba.gov/veterans.
NATIONAL BOOTS TO
BUSINESS INITIATIVE
The aptly named Operation Boots
to Business program (B2B) builds
on SBA’s role as a national leader
in entrepreneurship training. The
program’s mission is to develop veteran
entrepreneurs from the approximately
250,000 service members who transition
from the military each year. Boots
to Business is an entrepreneurial
education program offered as an
elective track within the Department of
Defense’s revised Transition Assistance
Program called Transition Goals,
Plans, Success (Transition GPS). The
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curriculum provides valuable assistance
to transitioning service members
exploring self-employment opportunities
by leading them through the key steps
for evaluating business concepts and
the foundational knowledge required for
developing a business plan. Participants
are also introduced to SBA resources
available to help access start up capital
and additional technical assistance.
Boots to Business is delivered in
partnership with SBA resource
partners and the Institute for Veterans
and Military Families at Syracuse
University. It is available free of
charge at participating installations to
service members and their dependents
transitioning or retiring from the U.S.
military.
The program has three parts: 1) The
Entrepreneurship Track Overview -
an introductory video shown during
the mandatory fve day Transition
GPS course; 2) Introduction to
Entrepreneurship – a two day classroom
course offered as one of the three
Transition GPS elective tracks; and, 3)
Foundations of Entrepreneurship – an
eight week instructor led online course
that offers in-depth instruction on the
elements of a business plan and tips
and techniques for starting a business.
After completing the course, counselors
and mentors from SBA’s resource
partner network remain available
to work with veterans in their local
communities. For more information
about B2B, please visit
www.sba.gov/bootstobusiness.
CENTER FOR FAITH-BASED AND
NEIGHBORHOOD PARTNERSHIPS
SBA’s Center for Faith-Based and
Neighborhood Partnerships (The
Partnership Center) works to engage
and build strong partnerships with
community and nonproft organizations,
both secular and faith-based, to support
entrepreneurship, economic growth and
promote prosperity for all Americans.
The center works in coordination
with other offces within the Agency
to assist in formulating policies and
practices with the goal of extending
the reach and impact of SBA programs
into communities. SBA recognizes the
important role of community leaders
and networks in economic development
at the local and national level, and
that partnerships provide effective and
effcient leverage for SBA programs.
Further, the center plays a key role in
helping identify, engage and impact
underserved communities.
The program engages in outreach,
technical assistance, education,
formulates and administers training
programs, coordinates entrepreneurial
and business development opportunities
and access to SBA’s 68 district offces
and extensive network of resource grant
partners. The center additionally works
with the White House Offce of Faith-
Based and Neighborhood Partnerships
and the Faith-Based and Neighborhood
Partnership Centers that are within
13 additional federal agencies, and
participates in interagency working
groups to ensure effective and effcient
coordination of resources and initiatives.
The center was established by, and
follows the guidelines, operational
policy and statutory requirements of
Executive Order 13279 — Fundamental
Principles and Policymaking Criteria
for Partnerships with Faith-Based and
Other Neighborhood Organizations.
NATIVE AMERICAN
BUSINESS DEVELOPMENT
The SBA Offce of Native American
Affairs (ONAA) ensures that American
Indians, Alaska Natives and Native
Hawaiians seeking to create, develop
and expand small businesses have full
access to business development and
expansion tools available through the
agency’s entrepreneurial development,
lending, and contracting programs.
The offce provides a network of
training initiatives that include a
Native Entrepreneurial Empowerment
Workshop, a Native American 8(a)
Business Development Workshop, a
Money Smart Workshop, an Incubator
Workshop and the online tool, “Small
Business Primer: Strategies for
Growth”. ONAA also is responsible for
consulting with tribal governments
prior to fnalizing SBA policies that may
have tribal implications.
Visit www.sba.gov/naa for more
information.
VETERANS BUSINESS
OUTREACH CENTERS
The Veterans Business Outreach
Program (VBOP) is designed to provide
entrepreneurial development services
such as business training, counseling
and mentoring, and referrals for
eligible veterans owning or considering
starting a small business. The SBA
has 15 organizations participating
in this cooperative agreement
and serving as Veterans Business
Outreach Centers (VBOC) across the
country. Services provided by VBOC’s
include: pre-business plan workshops,
concept assessments, business plan
preparations, comprehensive feasibility
analysis, entrepreneurial training and
counseling, mentorship, and other
business-development related services.
VBOCs also provide assistance and
training in such areas as international
trade, franchising, Internet marketing,
accounting, etc. For a VBOC directory,
please visit www.sba.gov/vets.
SBA also administers two
contracting and business
development programs that are
specifcally designed to beneft
underserved communities. For
more information on the 8(a)
Business Development Program
and the HUBZone Program, see the
Contracting section.
Young Entrepreneurs
The SBA recognizes the importance
of fostering young entrepreneurs and
small business owners and their role in
the economy. The SBA offers different
activities and resources throughout
the year aimed at aspiring young
entrepreneurs, including social media
outreach and customized online courses.
The SBA also works with other federal
agencies to provide various activities
for this market (www.?ndyouthinfo.gov).
To fnd more information, visit
www.sba.gov/young.
Encore Entrepreneurs
To help meet the needs of “encore
entrepreneurs,” SBA and AARP have
joined forces to mentor, counsel,
and educate Americans age 50 and
over on how to start or grow a small
business. Through this partnership,
SBA and AARP collaborate to connect
the 50+ population to small business
development resources, including online
courses, live workshops, conferences,
and mentoring activities. For additional
information, visit www.sba.gov/encore.
REACHING UNDERSERVED COMMUNITIES
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Most new business owners who
succeed have planned for every phase
of their success. Thomas Edison, the
great American inventor, once said,
“Genius is 1 percent inspiration and
99 percent perspiration.” That same
philosophy also applies to starting a
business.
First, you’ll need to generate a little
bit of perspiration deciding whether
you’re the right type of person to start
your own business.
IS ENTREPRENEURSHIP
FOR YOU?
There is simply no way to eliminate
all the risks associated with starting
a small business, but you can improve
your chances of success with good
planning, preparation and insight.
Start by evaluating your strengths and
weaknesses as a potential owner and
manager of a small business. Carefully
consider each of the following
questions:
• Are you a self-starter? It will
be entirely up to you to develop
projects, organize your time, and
follow through on details.
• How well do you get along with
different personalities? Business
owners need to develop working
relationships with a variety
of people including customers,
vendors, staff, bankers,
employees and professionals
such as lawyers, accountants, or
consultants. Can you deal with a
demanding client, an unreliable
vendor, or a cranky receptionist
if your business interests demand
it?
• How good are you at making
decisions? Small business
owners are required to make
decisions constantly – often
quickly, independently, and
under pressure.
• Do you have the physical and
emotional stamina to run a
business? Business ownership
can be exciting, but it’s also a
lot of work. Can you face six or
seven 12–hour workdays every
week?
• How well do you plan and
organize? Research indicates
that poor planning is responsible
for most business failures. Good
organization — of fnancials,
inventory, schedules, and
production — can help you avoid
many pitfalls.
• Is your drive strong enough?
Running a business can wear
you down emotionally. Some
business owners burn out quickly
from having to carry all the
responsibility for the success
of their business on their own
shoulders. Strong motivation
will help you survive slowdowns
and periods of burnout.
• How will the business affect
your family? The frst few years
of business start-up can be hard
on family life. It’s important for
family members to know what
to expect and for you to be able
to trust that they will support
you during this time. There also
may be fnancial diffculties until
the business becomes proftable,
which could take months or
years. You may have to adjust to
a lower standard of living or put
family assets at risk.
Once you’ve answered these
questions, you should consider what
type of business you want to start.
Businesses can include franchises,
at-home businesses, online businesses,
brick-and-mortar stores or any
combination of those.
FRANCHISING
There are more than 3,000 business
franchises. The challenge is to decide
on one that both interests you and is
a good investment. Many franchising
experts suggest that you comparison
shop by looking at multiple franchise
opportunities before deciding on the
one that’s right for you.
Some of the things you should
look at when evaluating a franchise:
historical proftability, effective
fnancial management and other
controls, a good image, integrity
and commitment, and a successful
industry.
In the simplest form of franchising,
while you own the business, its
operation is governed by the terms
of the franchise agreement. For
many, this is the chief beneft for
franchising. You are able to capitalize
on a business format, trade name,
trademark and/or support system
provided by the franchisor. But you
operate as an independent contractor
with the ability to make a proft or
sustain a loss commensurate with your
ownership.
If you are concerned about starting
an independent business venture, then
franchising may be an option for you.
Remember that hard work, dedication
and sacrifce are key elements in
the success of any business venture,
including a franchise.
Visit www.sba.gov/franchise for more
information.
HOME-BASED BUSINESSES
Going to work used to mean
traveling from home to a plant, store
or offce. Today, many people do some
or all their work at home.
Getting Started
Before diving headfrst into a home-
based business, you must know why
you are doing it. To succeed, your
business must be based on something
greater than a desire to be your
own boss. You must plan and make
improvements and adjustments along
the road.
Working under the same roof where
your family lives may not prove to be
as easy as it seems. One suggestion is
to set up a separate offce in your home
to create a professional environment.
Ask yourself these questions:
• Can I switch from home
responsibilities to business work
easily?
• Do I have the self-discipline to
maintain schedules while at home?
• Can I deal with the isolation of
working from home?
Legal Requirements
A home-based business is subject to
many of the same laws and regulations
affecting other businesses.
Some general areas include:
• Zoning regulations. If your
business operates in violation of
them, you could be fned or shut
down.
• Product restrictions. Certain
products cannot be produced in
the home. Most states outlaw
home production of freworks,
drugs, poisons, explosives,
sanitary or medical products and
toys. Some states also prohibit
home-based businesses from
making food, drink or clothing.
Be sure to consult an attorney and
your local and state departments of
labor and health to fnd out which
laws and regulations will affect
your business. Additionally, check
on registration and accounting
requirements needed to open your
home-based business. You may need
a work certifcate or license from the
state. Your business name may need
to be registered with the state. A
separate business telephone and bank
account are good business practices.
Also remember, if you have
employees you are responsible for
withholding income and Social-
Security taxes, and for complying with
minimum wage and employee health
and safety laws.
ARE YOU RIGHT FOR SMALL BUSINESS OWNERSHIP?
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WRITING A BUSINESS PLAN
After you’ve thought about what type
of business you want, the next step is
to develop a business plan. Think of
the business plan as a roadmap with
milestones for the business. It begins
as a pre-assessment tool to determine
proftability and market share, and
then expands as an in-business
assessment tool to determine success,
obtain fnancing and determine
repayment ability, among other factors.
Creating a comprehensive business
plan can be a long process, and you
need good advice. The SBA and its
resource partners, including Small
Business Development Centers,
Women’s Business Centers, Veterans
Business Outreach Centers, and
SCORE, have the expertise to help
you craft a winning business plan. The
SBA also offers online templates to get
you started.
In general, a good business plan
contains:
Introduction
• Give a detailed description of the
business and its goals.
• Discuss ownership of the business
and its legal structure.
• List the skills and experience you
bring to the business.
• Discuss the advantages you
and your business have over
competitors.
Marketing
• Discuss the products and services
your company will offer.
• Identify customer demand for your
products and services.
• Identify your market, its size and
locations.
• Explain how your products and
services will be advertised and
marketed.
• Explain your pricing strategy.
Financial Management
• Develop an expected return on
investment and monthly cash
fow for the frst year.
• Provide projected income
statements and balance sheets for
a two-year period.
• Discuss your break-even point.
• Explain your personal
balance sheet and method of
compensation.
• Discuss who will maintain your
accounting records and how they
will be kept.
• Provide “what if” statements
addressing alternative
approaches to potential problems.
Operations
• Explain how the business will be
managed day-to-day.
• Discuss hiring and personnel
procedures.
• Discuss insurance, lease or rent
agreements.
• Account for the equipment
necessary to produce your goods
or services.
• Account for production and
delivery of products and services.
Concluding Statement
Summarize your business goals
and objectives and express your
commitment to the success of your
business. Once you have completed
your business plan, review it with
a friend or business associate and
professional business counselor
like SCORE, WBC or SBDC
representatives, SBA district offce
economic development specialists
or veterans’ business development
specialists.
Remember, the business plan is a
fexible document that should change
as your business grows.
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any entrepreneurs need
fnancial resources to start
or expand a small business
and must combine what
they have with other
sources of fnancing. These sources can
include family and friends, venture-
capital fnancing and business loans.
This section of the Small Business
Resource guide discusses SBA’s primary
business loan and equity fnancing
programs. These are: the 7(a) Loan
Program, the Certifed Development
Company or 504 Loan Program, the
Microloan Program and the Small
Business Investment Company
Program. The distinguishing features
for these programs are the total dollar
amounts that can be borrowed, the type
of lenders who can provide these loans,
the uses for the loan proceeds and the
terms placed on the borrower. The SBA
does not provide grants to individual
business owners to start or grow a
business.
SBA BUSINESS LOANS
If you are contemplating a business
loan, familiarize yourself with the SBA’s
business loan programs to see if they
may be a viable option. The SBA has
a variety of loan programs which are
distinguished by their different uses of
the loan proceeds, their dollar amounts,
and the requirements placed on the
actual lenders. The three principal
players in most of these programs
are the applicant small business, the
lender and the SBA. The Agency
does not actually provide the loan,
but rather they guaranty a portion of
the loan provided by a lender (except
for microloans). The lender can be a
regulated bank or credit union, or a
community based lending organization.
The business applies directly to a
lender by providing them the documents
they require. Generally an application
includes a business plan that explains
what resources will be needed to
accomplish the desired business
purpose including the associated costs,
the applicants’ contribution, planned
uses for the loan proceeds, a listing
of the assets that will secure the loan
(collateral), a history of the business
and explanation of how the business
generates income, and most important,
an explanation of how the business will
be able to repay the loan in a timely
manner.
The lender will analyze the
application to see if it meets their
criteria and make a determination if
they will need an SBA guaranty in
order to provide the loan. SBA will
look to the lender to do much, if not
all, of the analysis before it provides
its guaranty to the lender’s proposed
loan. The SBA’s business loan guaranty
programs provide a key source of
fnancing for viable small businesses
that have real potential but cannot
qualify for credit on reasonable terms by
themselves.
In the case of microlenders, SBA lends
monies to intermediaries at favorable
rates so they can re-lend to businesses
with fnancing needs up to $50,000.
7(a) LOAN PROGRAM
The 7(a) Loan program is the SBA’s
primary business loan program. It
is the agency’s most frequently used
non-disaster fnancial assistance
program because of its fexibility in loan
structure, variety of uses for the loan
proceeds and availability. The program
has broad eligibility requirements and
credit criteria to accommodate a wide
range of fnancing needs.
Congress authorized SBA to provide
fnancial assistance either directly
or in cooperation with banks or
other fnancial institutions through
agreements to participate in section 7(a)
of the Small Business Act. Historically,
a 7(a) loan was provided either
directly from SBA or from regulated
lenders who provided the loan after
they obtained a guaranty from SBA.
Since 1996, all 7(a) loans have only
been provided on a guaranteed basis,
meaning from a lender participating in
the 7(a) Loan Guaranty Program.
The business loans that SBA
guarantees do not come from the
Agency, but rather from banks and
other approved lenders. The loans are
funded by these organizations and they
make the decisions to approve or deny
the applicants’ request for fnancial
assistance.
The guaranty that SBA provides
the lender reduces the lender’s risk
of borrower non-payment because
the guaranty assures the lender that
if the borrower defaults, the lender
can request that SBA pay the debt
rather than the borrower. SBA only
guarantees a portion or percentage
of every loan not the whole debt, so
in the event of default the lender will
only get partially repaid by SBA. This
means that if the borrower can’t make
the payments and defaults, the lender
can recover the guaranteed portion of
the defaulted debt from the SBA. The
borrower is still obligated for the full
amount.
CAPITAL
Financing Options to Start or Grow Your Business
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To qualify for an SBA guaranteed
loan, a small business must meet
the lender’s criteria and the 7(a)
program requirements. One of those
requirements is that the lender must
certify that it would not provide this
loan under the proposed terms and
conditions without an SBA guaranty.
If the SBA is going to provide a lender
with a guaranty, the applicant must be
eligible and creditworthy and the loan
structured under conditions acceptable
to the SBA.
The 7(a) Program includes ten (10)
types of loans which all share certain
eligibility requirements but which
also have some different requirements
so they can accommodate specifc
business needs and/or give lenders
greater fexibility with loan structure.
The most popular 7(a) loan type is the
Basic 7(a) Loan, which can be used for
the most diverse purposes. The other
nine 7(a) loan types are variations of
the Basic 7(a) Loan with different uses
for the loan proceeds and alternative
structures.
To be eligible for any of the 7(a) loans,
the recipients must be both eligible and
creditworthy. In addition the applicant
business must:
1. Be an operating business (except
for loans to Eligible Passive
Companies);
2. Be organized for proft;
3. Be located in the United States;
4. Be able to demonstrate a need for
the desired credit.
5. Be a business, along with its
Affliates, that meets SBA’s Size
Standard Requirements.
6. Be a business that is not engaged
in a prohibited business activity or
owned by a non-qualifed owner, or
located at a prohibited place.
7. Use the Loan Proceeds
for only acceptable purposes, which
includes proceeds to start-up a new
business, buy an existing business,
acquire machinery & equipment
and/or furniture & fxtures,
acquire or renovate a building
which the business will occupy,
permanent working capital, and
refnancing existing business debt
under certain conditions. Proceeds
from a Basic 7(a) cannot be used
to buy investments that are held
for their potential appreciation, or
to be provided to an associate
of the business except under very
limited circumstances.
8. Be able to demonstrate that it
can’t get the proceeds from its own
resources or those of its principal
owners and the lender must certify
that they would only approve
the loan if it is able to obtain a
guaranty from SBA.
9. Have ownership that is of Good
Character
10. Be able to satisfy any
Miscellaneous Eligibility
Requirements that may be
imposed on a loan request based
on the circumstances of the case
including, but not limited to the
purpose of the loan.
THE BASIC 7(a) LOAN
The Basic 7(a) Loan is the most
commonly provided type of SBA
business loan based on historical
dollars approved. They are the most
fexible types of SBA loans because they
can help fnance such a large variety
of business purposes for the largest
number of business types, engaged in
the widest spectrum of activities.
In the Federal Government’s 2013
Fiscal Year (October 1, 2012 to
September 30, 2013) about 80 percent
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Documentation requirements will
vary depending upon the purpose of
the loan. Contact your lender for the
information you must supply.
Common requirements include the
following:
A Business Plan that includes:
• Purpose of the loan
• History of the business
• Projections of income, expenses
and cash fow as well as an
explanation of the assumptions
used to develop these projections
• Personal fnancial statements on
the principal owners
• Resume(s) of the principal
owners and managers.
• Amount of investment in the
business by the owner(s)
• Projected opening-day balance
sheet (new businesses)
• Lease details
• Proposed Collateral
Financial Statements that include:
• Balance Sheet and Income
Statement (P&L) for three
years (existing businesses) (Tax
Returns usually suffce)
• Interim Financial Statements
dated within 180 days of the
request for assistance
• Schedule of term debts (existing
businesses)
• Aging of accounts receivable and
payable (existing businesses)
How the 7(a) Program Works
Small Business applicant assembles
their request for fnancing based on
the intended purpose of the proposed
loan and what documents the lender
requires. A loan to help a moving
company acquire a new truck will be
less involved than a loan to acquire or
start-up a business. The paperwork
can be completed on either a business
loan application provided by the lender
or an SBA application, but using the
SBA forms does not actually increase
the change an applicant has in getting
a business loan. The applicant then
submits their loan application to a
lender for the initial review. If the
applicant is applying for their frst
business loan, it is recommended that
the selected lender be the one who
maintains the personal account of the
owner(s).
The lender will generally review
the credit merits of the request before
deciding if they will make the loan
themselves or if they will need an SBA
guaranty. If a guaranty is needed, the
lender will also review the application
for SBA eligibility. The applicant
should be prepared to complete some
additional documents if the lender
says they need an SBA guaranty for
approval. Applicants who feel they
need more help with the process
should contact their local SBA district
offce or one of the SBA’s resource
partners for assistance.
There are several ways a lender
can request a 7(a) Guaranty for a
proposed business loan from SBA.
The main differences between these
processing methods are based on
the experience the lender has in
requesting guarantees from SBA, the
documentation the lender provides to
SBA, the amount of review the SBA
conducts after receiving the request,
the amount of the loan and the lender
responsibilities in case the loan
defaults and the business’ assets must
be liquidated. The current different
processing methods are:
• Standard 7(a) Guaranty
• Certifed Lender Program
• Preferred Lender Program
• SBA Express
• Export Express
• Community Advantage
When a lender requests a 7(a)
guaranty for a business loan they
propose to provide a small business
their application consist of two parts.
The applicant flls out SBA Form 1919
while the lender completes SBA Form
1920. The Form 1919 is designed for
the applicant to explain what they
intend to do with the money and how
they will repay the loan. The Form
1920 requires the lender to explain
their analysis of the eligibility and
credit merits of the request.
When the request loan amount is
smaller (generally under $350,000) the
lender is allowed to provide SBA with
less information in their application
for guaranty but that does not mean
the applicant business can provide
the lender with less information.
The lender has the ability to ask the
applicant for as much detail as they
believe is necessary for them to make
their decision on the specifc request.
When the SBA receives a request
for guaranty from a lender they will
either re-analyze, review or trust the
lender’s eligibility and credit analysis
before deciding to approve or reject the
request. See the section on 7(a) Loan
Processing from Lenders later on in
this article for more detail on what
SBA does when it receives a request
for guaranty from the lender.
By guaranteeing a loan, the SBA
assures the lender that, in the event
the borrower does not repay the loan,
the government will reimburse the
lending institution for a percentage of
the amount owed. By providing this
guaranty, the SBA is able to help tens
of thousands of small businesses every
year get fnancing they might not
otherwise obtain.
When SBA approves a guaranty they
notify the lender who will work with
the applicant to make sure the terms
and conditions designed for the specifc
loan are met before closing. The
lender also disburses the funds and
assumes responsibility for collecting
the payments and general servicing.
The borrower makes loan payments
directly to the lender. As with any
loan, the borrower is obligated to
repay the full amount of the loan in a
timely manner.
What the SBA Looks for:
• Ability to repay the loan on time
from the projected operating cash
fow;
• Owners and operators who are of
good character;
• Feasible business plan;
• Management expertise and
commitment necessary for
success;
• Suffcient funds, including
(but not limited to) the SBA
guaranteed loan, to operate the
business on a sound fnancial
basis (for new businesses, this
includes the resources to meet
start-up expenses and the initial
operating phase);
• Adequate equity invested in the
business; and
• Enough collateral to fully secure
the loan or, all worthwhile
available business collateral plus
personal real estate if the loan
cannot be fully secured.
The Impact of a Credit Score
SBA also credit scores every
business that is a potential recipient of
a loan guaranteed by SBA. If the loan
is for $350,000 or less, the credit score
obtained will have a signifcant impact
on the amount of work the lender has
to complete when applying for an SBA
guaranty. As such it is important
for any owner of a potential business
loan to be aware of their credit score
and correct any discrepancies prior to
approaching their lender.
What to Take to the Lender
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of the dollars and 38 percent of the
number of all 7(a) loans guaranteed
by SBA were Basic 7(a) Loans. The
reciprocal percentages were divided
between the nine other 7(a) Programs.
The Basic 7(a) Loan is a term loan
usually repaid with one monthly
payment of principal and interest.
Interest only repayment periods are
permitted when needed, such as for a
start-up business that doesn’t achieve
breakeven in its initial months of
operation. Other repayment structures
are also permitted depending upon the
borrower’s needs and the fexibility of
the lender.
A Basic 7(a) Loan does not revolve
so the sum of the disbursements is
the loan amount. SBA can guaranty
revolving lines of credit, but that is
accomplished through some of the nine
variations to the Basic 7(a) Loan.
The following aspects of the Basic 7(a)
Loan are also applicable to all other 7(a)
Loan unless specifcally referenced as
not applying to a specifc Special 7(a)
Loan.
Percentage of Guarantees and Loan
Maximums
SBA only guarantees a portion
of any particular 7(a) loan so each
loan will have an SBA share and an
unguaranteed portion which gives the
lender a certain amount of exposure
and risk on each loan. The percentage
of guaranty depends on either the dollar
amount or the program the lender
uses to obtain its guaranty. For loans
of $150,000 or less the SBA generally
guarantees as much as 85 percent
and for loans over $150,000 the SBA
generally provides a guaranty of up to
75 percent.
The maximum dollar amount of a
single 7(a) loan is $5 million and there
is no minimum. The maximum dollar
amount of the SBA share which can be
provided to any one business (including
affliates) is $3,750,000.
Interest Rates
The actual interest rate for a 7(a) loan
guaranteed by the SBA is negotiated
between the applicant and lender
but is subject to the SBA maximums.
Both fxed and variable interest rate
structures are available. The maximum
rate comprises two parts, a base rate
and an allowable spread. There are
three acceptable base rates (Wall Street
Journal Prime*, London Interbank One
Month Prime plus 3 percent, and an
SBA Peg Rate). Lenders are allowed
to add an additional spread to the base
rate to arrive at the fnal rate. For
loans with maturities of less than seven
years, the maximum spread will be no
more than 2.25 percent. For loans with
maturities of seven years or more, the
maximum spread will be 2.75 percent.
The spread on loans under $50,000
and loans processed through Express
procedures have higher maximums.
Most 7(a) term loans are repaid
with monthly payments of principal
and interest. For fxed-rate loans the
payments stay the same because the
interest rate is constant. For variable
rate loans the lender can change the
payment amount when the interest
rates change. Applicants can request
that the lender establish the loan with
interest-only payments during the start-
up and expansion phases (when eligible)
to allow the business time to generate
income before it starts making full loan
payments.
Guaranty and Other Fees
Loans guaranteed by the SBA are
assessed a guaranty fee. This fee is
based on the loan’s maturity and the
dollar amount guaranteed, not the total
dollar amount of the loan. The guaranty
fee is initially paid by the lender and
then passed on to the borrower at
closing. The funds the business needs
to reimburse the lender can be included
in the overall loan proceeds.
On any loan with a maturity of one
year or less, the fee is just 0.25 percent
of the guaranteed portion of the loan.
On loans with maturities of more than
one year, the normal guaranty fee is:
• 2.0 percent of the SBA guaranteed
portion on loans up to $150,000; **
• 3.0 percent on loans over $150,000
but not more than $700,000; and
• 3.5 percent on loans over $700,000.
There is also an additional fee of
0.25 percent on any guaranteed
portion over $1 million.
* All references to the prime rate
refer to the base rate in effect on the
?rst business day of the month the loan
application is received by the SBA.
** For all SBA-guaranteed loans of
$150,000 or less that are approved
between October 1, 2014 and September
30, 2015, the guaranty fee will be 0%.
Beneft For Veterans and/or
Spouses: Any guaranteed loans
approved to businesses owned by
Veterans of any era or their Spouses
during fscal year 2015 (October 1,
2014 through September 30, 2015 will
receive the beneft of having its regular
guaranty fee reduced by 50%, when the
loan is over $150,000 .
The lender may not charge a
prepayment penalty if the loan is paid
off before maturity but the SBA will
charge the borrower a prepayment fee
if the loan has a maturity of 15 or more
years and is pre-paid during the frst
three years.
7(a) Loan Maturities
The SBA’s loan programs are
generally intended to encourage longer
term small-business fnancing, but
actual loan maturities are based on
the ability to repay, the purpose of the
loan proceeds and the useful life of the
assets fnanced. Maturity generally
ranges from 7 to 10 years for working
capital, business start-ups, and business
acquisition type loans, and up to 25
years if the purpose is to acquire real
estate or fxed assets with a long term
useful life.
Collateral
The SBA expects every 7(a) loan
to be secured frst with the assets
acquired with the loan proceeds and
then with additional business and
personal assets, depending upon the
loan amount and the way the lender
requests their guaranty. However, SBA
will not decline a request to guaranty
a loan if the only unfavorable factor
is insuffcient collateral, provided all
available collateral is offered. When
the lender says they will need an
SBA guaranty, the applicant should
be prepared for liens to be placed
against all business assets. Personal
guaranties are required from all the
principal owners of the business. Liens
on personal assets of the principals
may also be required. SBA does
not require any collateral for any 7(a)
guaranteed loan for $25,000 or less but
the lender can require collateral if they
chose.
Loan Structure
The structure of a Basic 7(a) Loan
is that repayment has to be set up so
the loan is paid in full by maturity.
Over the term of the loan there can
be additional payments or payment
relaxation depending on what Is
happening with the business. Balloon
payments and call provisions are not
allowed on any 7(a) term loan.
Eligibility
7(a) loan eligibility is based on a
number of different factors, ranging
from Size and Nature of Business to
Use of Proceeds and factors that are
case specifc.
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Size Eligibility
The frst eligibility factor is size, as
all loan recipients must be classifed as
“small” by the SBA. The size standards
for all 7(a) loans are outlined below. A
more in-depth listing of standards can
be found at: www.sba.gov/size.
SBA Size Standards have the following
general ranges:
• Manufacturing — from 500 to 1,500
employees
• Wholesale Trades — Up to 100
employees
• Services — $2 million to $35.5
million in average annual receipts
• Retail Trades — $7 million to $35.5
million in average annual receipts
• Construction — $7 million to $33.5
million in average annual receipts
• Agriculture, Forestry, Fishing,
and Hunting — $750,000 to $17.5
million in average annual receipts
There is an alternate size standard
for businesses that do not qualify under
their industry size standards for SBA
funding. That Alternative is that the
applicant business (plus affliates can’t
have a tangible net worth exceeding
$15 million and average net income
exceeding $5 million for the last two
years. This new alternate makes
more businesses eligible for SBA loans
and applies to SBA non-disaster loan
programs, namely its 7(a) Business
Loans and Certifed Development
Company programs.
Nature of Business
The second eligibility factor is based
on the nature of the business and the
process by which it generates income or
the customers it serves. The SBA has
general prohibitions against providing
fnancial assistance to businesses
involved in such activities as lending,
speculating, passive investment,
pyramid sales, loan packaging,
presenting live performances of a
prurient nature, businesses involved in
gambling and any illegal activity.
The SBA also cannot make loan
guaranties to non-proft businesses,
private clubs that limit membership on
a basis other than capacity, businesses
that promote a religion, businesses
owned by individuals incarcerated or
on probation or parole, municipalities,
and situations where the business or
its owners previously failed to repay
a federal loan or federally assisted
fnancing, or are delinquent on existing
federal debt.
Use of Proceeds
The third eligibility factor is Use of
Proceeds. A Basic 7(a) Loan can provide
proceeds to purchase machinery,
equipment, fxtures, supplies, and
to make improvements to land and/
or buildings that will be occupied
by the subject applicant business.
Proceeds can also be used to:
• Permanent Working Capital;
• Purchase Inventory;
• Expand or renovate facilities;
• Acquire machinery, equipment,
furniture, fxtures and leasehold
improvements;
• Acquire a business;
• Start a business;
• Acquire Land and Build a Location
for the applicant business; and
• Refnance existing debt under
certain conditions.
SBA 7(a) loan proceeds cannot be
used:
• For the purpose of making
investments.
• To provide funds to any of the
owners of the business except for
ordinary compensation for actual
services provided.
• For Floor Plan Financing
• For a purpose that does not beneft
the business
Miscellaneous Factors
The fourth factor involves a variety
of requirements such as SBA’s credit
elsewhere test where the personal
resources of the owners need to be
checked to see if they can make a
contribution before getting a loan
guaranteed by the SBA. It also includes
the SBA’s anti-discrimination rules and
limitations on lending to agricultural
enterprises because there are other
agencies of the Federal government
with programs to fund such businesses.
Generally, SBA loans must meet the
following criteria:
• Every loan must be for a sound
business purpose;
• There must be suffcient invested
equity in the business so it can
operate on a sound fnancial basis;
• There must be a potential for long-
term success;
• The owners must be of good
character and reputation; and
• All loans must be so sound as to
reasonably assure repayment.
For more information, go to
www.sba.gov/apply.
SPECIAL PURPOSE
7(a) LOAN PROGRAMS
The 7(a) loan program is the most
fexible of the SBA’s lending programs.
Over time, the Agency has developed
several variations of the Basic 7(a) Loan
in order to address specifc fnancing
needs for particular types of small
businesses or to give the lender greater
fexibility with the loan’s structure.
The general distinguishing feature
between these loan types is their use
of proceeds. These programs allow the
proceeds to be used in ways that are
not otherwise permitted in a basic 7(a)
loan. These special purpose programs
are not necessarily for all businesses
but may be very useful to some small
businesses. They are generally
governed by the same rules, regulations,
fees, interest rates, etc., as the basic
7(a) loan. Lenders can advise you of any
variations. The Special Purpose Loans
include:
International Trade Loan Program
The SBA’s International Trade
Loan (ITL) is designed to help
small businesses enter and expand
into international markets or,
when adversely affected by import
competition, to make the investments
necessary to better compete. The ITL
offers a combination of fxed asset,
working capital fnancing and debt
refnancing with the SBA’s maximum
guaranty--90 percent--on the total loan
amount. The maximum loan amount is
$5 million.
Guaranty Coverage
The SBA can guaranty up to 90
percent of an ITL up to a maximum
of $4.5 million, less the amount of
the guaranteed portion of other SBA
loans outstanding to the borrower. The
maximum guaranty for any working
capital component of an ITL is limited
to $4 million. Any other working capital
SBA loans that the borrower has are
counted against the $4 million guaranty
limit.
Use of Proceeds
• For the facilities and equipment
portion of the loan, proceeds may be
used to acquire, construct, renovate,
modernize, improve or expand
facilities or equipment in the
U.S. to produce goods or services
involved in international trade,
including expansion due to bringing
production back from overseas if
the borrower exports to at least one
market.
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• Working capital is an allowable use
of proceeds under the ITL.
• Proceeds may be used for the
refnancing of debt not structured
on reasonable terms and conditions,
including any debt that qualifes for
refnancing under the standard SBA
7(a) Loan Program.
Loan Term
• Maturities on the working capital
portion of the ITL are typically
limited to 10 years.
• Maturities of up to 10 years on
equipment unless the useful life
exceeds 10 years.
• Maturities of up to 25 years are
available for real estate.
• Loans with a mixed use of fxed-
asset and working-capital fnancing
will have a blended-average
maturity.
Exporter Eligibility
• Applicants must meet the same
eligibility requirements as for the
SBA’s standard 7(a) Loan Program.
• Applicants must also establish that
the loan will allow the business to
expand or develop an export market
or demonstrate that the business
has been adversely affected by
import competition and that the ITL
will allow the business to improve
its competitive position.
Foreign Buyer Eligibility
Foreign buyers must be located in
those countries where the Export-
Import Bank of the U.S. is not
prohibited from providing fnancial
assistance.
Collateral Requirements
• Only collateral located in the
U.S. (including its territories and
possessions) is acceptable.
• First lien on property or equipment
fnanced by the ITL or on other
assets of the business is required.
However, an ITL can be secured
by a second lien position if the
SBA determines there is adequate
assurance of loan repayment.
• Additional collateral, including
personal guaranties and those
assets not fnanced with ITL
proceeds, may be appropriate.
A small business wanting to qualify
as adversely impacted from import
competition must submit supporting
documentation that explains the
impact, and a plan with projections
that explains how the loan will
improve the business’ competitive
position.
Export Working Capital Program
The SBA’s Export Working Capital
Program (EWCP) assists businesses
exporters in meeting their short-term
export working capital needs. Exporters
can use the proceeds to make the
products they will be exporting. They
can also apply for such lines of credit
prior to fnalizing an export sale or
contract. With an approved EWCP
loan in place, exporters have greater
fexibility in negotiating export payment
terms—secure in the assurance that
adequate fnancing will be in place
when the export order is won.
Bene?ts of the EWCP
• Financing for suppliers, inventory
or production of export goods.
• Export working capital during long
payment cycles.
• Financing for stand-by letters of
credit used as bid or performance
bonds or advance payment
guarantees.
• Reserves domestic working capital
for the company’s sales within the
U.S.
• Permits increased global
competitiveness by allowing the
exporter to extend more liberal sales
terms.
• Increases sales prospects in under-
developed markets which may have
high capital costs for importers.
• Low fees and quick processing
times.
Guaranty Coverage
• Maximum loan amount is
$5,000,000.
• 90 percent of principal and accrued
interest up to 120 days.
• Low guaranty fee of one-quarter
of one percent of the guaranteed
portion for loans with maturities of
12 months or less.
• Loan maturities are generally for 12
months or less, but can be up to a
maximum of 36 months.
Use of Proceeds
• To pay for the manufacturing costs
of goods for export.
• To purchase goods or services for
export.
• To support standby letters of credit
to act as bid or performance bonds.
• To fnance foreign accounts
receivable.
Interest Rates
The SBA does not establish or
subsidize interest rates on loans. The
interest rate can be fxed or variable
and is negotiated between the borrower
and the participating lender.
Advance Rates
• Up to 90 percent on purchase
orders.
• Up to 90 percent on documentary
letters of credit.
• Up to 90 percent on foreign
accounts receivable.
• Up to 75 percent on eligible foreign
inventory located within the U.S.
• In all cases, not to exceed the
exporter’s costs.
Collateral Requirements
The export-related inventory and the
receivables generated by the export
sales fnanced with EWCP funds
generally will be considered adequate
collateral. The SBA requires the
personal guarantee of owners with 20
percent or more ownership.
How to apply
Application is made directly to SBA-
participating lenders. Businesses are
encouraged to contact SBA staff at their
local U.S. Export Assistance Center
(USEAC) to discuss whether they are
eligible for the EWCP and whether it is
the appropriate tool to meet their export
fnancing needs. Participating lenders
review/approve the application and
submit the guaranty request to SBA
staff at the local USEAC.
CAPLines
The CAPLines Program Is designed
to help small businesses meet their
short-term and cyclical working capital
needs. The programs can be used to
fnance seasonal working capital needs;
fnance the direct costs of performing
certain construction, service and supply
contracts, subcontracts, or purchase
orders; fnance the direct cost associated
with commercial and residential
construction; or provide general working
capital lines of credit. The maturity
can be for up to 10 years except for
the Builders Capline which is limited
to 36 months after the frst structure
is completed. Guaranty percentages
are the same as for a Basic 7(a) Loan.
There are four distinct short term loan
programs under the CAPLine umbrella:
• The Contract Loan Program is
used to fnance the cost associated
with contracts, subcontracts, or
purchase orders. Proceeds can be
disbursed before the work begins. If
used for one contract or subcontract,
it is generally not revolving; if
used for more than one contract
or subcontract at a time, it can be
revolving. The loan maturity is
usually based on the length of the
contract, but no more than 10 years.
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Contract payments are generally
sent directly to the lender but
alternative structures are available.
• The Seasonal Line of Credit
Program is used to support
buildup of inventory, accounts
receivable or labor and materials
above normal usage for seasonal
inventory. The business must have
been in business for a period of 12
months and must have a defnite
established seasonal pattern. The
loan may be used over again after
a “clean-up” period of 30 days to
fnance activity for a new season.
These loans also may have a
maturity of up to fve years. The
business may not have another
seasonal line of credit outstanding
but may have other lines for non-
seasonal working capital needs.
• The Builders Line Program
provides fnancing for small
contractors or developers to
construct or rehabilitate residential
or commercial property. Loan
maturity is generally three years
but can be extended up to fve
years, if necessary, to facilitate
sale of the property. Proceeds are
used solely for direct expenses of
acquisition, immediate construction
and/or signifcant rehabilitation
of the residential or commercial
structures. The purchase of the land
can be included if it does not exceed
20 percent of the loan proceeds. Up
to 5 percent of the proceeds can be
used for physical improvements
that beneft the property.
• The Working Capital Line
Program is a revolving line of
credit (up to $5,000,000) that
provides short term working capital.
These lines are generally used by
businesses that provide credit to
their customers, or whose principle
asset is inventory. Disbursements
are generally based on the size of a
borrower’s accounts receivable and/
or inventory. Repayment comes
from the collection of accounts
receivable or sale of inventory. The
specifc structure is negotiated with
the lender. There may be extra
servicing and monitoring of the
collateral for which the lender can
charge up to 2 percent annually to
the borrower.
Other Guaranty Lines of Credit
All the Special Purpose Programs
listed above have SBA structured
repayment terms meaning the Agency
tells the lender how principal and
interest is to be repaid. These programs
also require the lender to use certain
closing forms. Lenders with the ability
to obtain 7(a) guarantees through any
of the Express processes are considered
experienced enough to be able to
structure their own repayment terms
and use their own closing documents.
With this ability the lender can tailor
a line of credit that it gets guaranteed
by SBA to the needs of the business.
Therefore, if a potential applicant sees
that the previously listed Basic 7(a) or
Special Purpose 7(a) Programs don’t
meet their needs they should discuss
their options with a lender capable of
providing an SBA Express or Export
Express loan with an SBA guaranty.
SBAExpress
The SBAExpress Loan or Line of
Credit is a fexible smaller loan up
to $350,000 that a designated lender
can provide to its borrower using
mostly their own forms, analysis and
procedures to process, structure, service,
and disburse this SBA-guaranteed
loan. When structured as a term loan
the proceeds and maturity are the
same as a Basic 7(a) Loan. When
structured as a revolving line of credit
the requirements for the payment
of interest and principal are at the
discretion of the lender and maturity
can’t exceed 7 years.
Colorado SBA Express Lenders:
Citywide Banks
10660 E. Colfax Ave.
Denver, CO
303-365-3600
CoBiz Bank
821 17th St.
Denver, CO
303-293-2265
First Colorado National Bank
133 Grand Ave.
Paonia, CO
970-527-4141
First State Bank of Colorado
102 E. Bridge St.
Hotchkiss, CO
970-872-3111
First Bank
10403 W. Colfax Ave.
Denver, CO
303-232-2000
Guaranty Bank & Trust
1331 17th St.
Denver, CO
303-293-5500
Mountain View Bank of Commerce
12365 Huron St.
Westminster, CO
303-243-5400
Steele Street Bank & Trust
55 Adams St.
Denver, CO
303-376-3800
Verus Bank of Commerce
3700 S. College Ave.
Ft Collins, CO
970-204-1010
Export Express
SBA’s Export Express loans offers
fexibility and ease of use for both
borrowers and lenders on loans up to
$500,000. It is the simplest export loan
product offered by the SBA.
Use of Proceeds
Loan proceeds may be used for
business purposes that will enhance a
company’s export development. Export
Express can take the form of a term
loan or a revolving line of credit. As
an example, proceeds can be used to
fund participation in a foreign trade
show, fnance standby letters of credit,
translate product literature for use in
foreign markets, fnance specifc export
orders, as well as to fnance expansions,
equipment purchases, and inventory or
real estate acquisitions, etc.
Ineligible Use of Proceeds
Proceeds may not be used to fnance
overseas operations other than those
strictly associated with the marketing
and/or distribution of products/services
exported from the U.S.
Interest Rates
Terms are negotiated between the
borrower and lender but interest rates
may not exceed Prime plus 4.5 percent
on loans over $50,000 and Prime plus
6.5 percent on loans of $50,000 or less.
Exporter Eligibility
Any business that has been in
operation, although not necessarily in
exporting, for at least 12 full months
and can demonstrate that the loan
proceeds will support its export
activity is eligible for Export Express.
The one year in business operations
requirement can be waived if the
applicant can demonstrate previous
successful business experience and
exporting expertise and the lender does
conventional underwriting, not relying
solely on credit scoring.
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Foreign Buyer Eligibility
The exporter’s foreign buyer must be
a creditworthy entity and not located
in countries prohibited for fnancial
support on the Export-Import Bank’s
Country Limitation Schedule and the
methods of payment must be acceptable
to the SBA and the SBA lender.
How to Apply
Interested businesses should contact
their existing lender to determine
if they are an SBA Export Express
lender. Application is made directly
to the lender. Lenders use their own
application material in addition to
SBA’s Borrower Information Form.
Lenders’ approved requests are then
submitted with a limited amount of
eligibility information to SBA’s National
Loan Processing Center for review.
7(a) LOAN PROCESSES FOR
LENDERS
There are various ways a lender can
apply to SBA for a 7(a) guaranty. Some
are designed for experienced lenders
who are fully committed to providing
business loans guaranteed by SBA to
their clientele that need them, while
others are designed for lenders with
limited experience or when there
are certain issues that require SBA
to thoroughly review the situation.
The fundamental process available
to all lenders who have signed up to
participate with SBA is called the
Standard Loan Guaranty Process. It is
used by lenders to request a guaranty
from SBA when they are new to SBA
lending or the request requires an SBA
review. Other methods of processing
a request for guaranty have less
requirements for SBA, so the time
SBA take Is less, but potentially more
requirements or responsibilities for
the lender. The determining factors
on which one is use depends on the
experience of the lender in dealing
with SBA, the complexity of the case,
the purpose of the loan, and the dollar
amount being requested.
Standard 7(a) Loan Processing
After the applicant business and
lender complete their required
documents, the lender makes
application to SBA for a guaranty
by submitting them to SBA’s Loan
Guaranty Processing Center. The
center will screen the application and, if
satisfactory complete a thorough review
of both eligibility and creditworthiness
before making the decision to approve
the issuance of a guaranty as submitted,
approve with modifcations (which
will be discussed with the lender), or
reject the request. When the lender
makes application to SBA, they have
already internally agreed to approve
the recommended loan to the applicant
if, and only if, the SBA provides a
guaranty.
Standard processing means a lender
makes their request for guaranty using
SBA Form 1920 and the applicant
completes SBA Form 1919, even if the
applicant previously completed the
lender’s required application forms.
The analysis of eligibility starts with a
review of the “Eligibility Questionnaire,”
completed by the lender. The analysis
of credit starts with a review of the
SBA Form 1920 and the lender’s credit
memo which must discuss at least six
elements:
1. Balance sheet and ratio analysis;
2. Analysis of repayment. It is not
acceptable to base repayment ability
solely on the applicant’s credit score.
3. Assessment of the management
skills of the applicant;
4. Explanation of the collateral used to
secure the loan and the adequacy of
the proposed collateral;
5. Lender’s credit history with
applicant including an explanation
of any weaknesses;
6. Current fnancial statements and
pro-forma fnancial spread. SBA
pro-forma analysis refects how
the business will look immediately
following disbursement, not one
year after disbursement.
SBA also expects that the lender’s
credit memo includes the intended
use of the loan proceeds and any
historical and current issues that
require explanation. SBA also expects
a discussion of the process by which the
applicant business generates its income
when it is not immediately obvious.
An explanation of how the business
conducts its operation is also expected.
SBA has three days to screen
and 10 days to process the request
for guaranty from the lender. Any
additional time a lender takes to make
their determination prior to requesting
a guaranty from SBA will add to the
length of time to reach a fnal decision.
If the guaranty is approved, SBA will
prepare a loan authorization outlining
the terms and conditions under which
the guaranty is provided and prepare an
approval letter for transmission to the
lender.
Certi?ed Processing
SBA has a Certifed Lenders Program
(CLP) which lenders with more
experience and commitment to SBA
lender can obtain which allows them
to request a 7(a) guaranty through a
process similar to the Standard process
except the SBA will only review the
lenders request rather than re-analyze.
Preferred Processing
SBA has a Preferred Lenders
Program (PLP) designed for lenders
who have been delegated the authority
to make both the eligibility and credit
decisions without a second look by
SBA. This process is used by the most
experienced lenders who have the
most dedicated staffs ready to review
requests for fnancial assistance from
existing and potential customers in
order to see if they need to become SBA
guaranteed loans.
SBAExpress Processing
The SBAExpress guaranty is available
to lenders as a way to obtain a guaranty
on smaller loans up to $350,000. The
program authorizes select, experienced
lenders to use mostly their own forms,
analysis and procedures to process,
structure, service, and disburse SBA-
guaranteed loans. The SBA guarantees
up to 50 percent of an SBAExpress
loan. Loans under $25,000 do not
require collateral. The use of proceeds
for a term loan is the same as for any
Basic 7(a) Loan. Like most 7(a) loans,
maturities are usually fve to seven
years for working capital and up to
25 years for real estate or equipment.
Revolving lines of credit are allowed for
a maximum of seven years.
Export Express Processing
SBA Export Express offers
fexibility and ease of use for lenders.
Participating lenders may use their
own forms, procedures and analyses.
The SBA provides the lender with an
immediate response. This loan is subject
to the same loan processing, closing,
servicing and liquidation requirements
as for other similar-sized SBA loans.
Guaranty Coverage
The SBA provides lenders with a
90 percent guaranty on loans up to
$350,000 and a 75 percent guaranty on
loans between $350,001 and $500,000.
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Community Advantage Loans
The Community Advantage Pilot
Program is aimed at helping businesses
located in underserved communities
gain access to capital by opening up 7(a)
lending to mission-focused, community-
based lenders — such as Community
Development Financial Institutions
(CDFIs), Certifed Development
Companies (CDCs), and microlenders.
These lenders provide technical
assistance and economic development
support to businesses located in
underserved markets.
The application process is the same
as for a Basic 7(a) Loan. The main
difference with this program from other
SBA 7(a) loan programs is the lender
who ultimately provides the loan funds
is not a traditional SBA lender.
Visit: www.sba.gov/advantage for more
information about this program.
CERTIFIED DEVELOPMENT
COMPANY LOAN PROGRAM
(504 LOANS)
The 504 Loan program is an economic
development program that supports
American small business growth and
helps communities through business
expansion and job creation. The 504
loan program provides long-term, fxed-
rate, subordinate mortgage fnancing
for acquisition and/or renovation of
capital assets including land, buildings
and equipment. Some refnancing is
also permitted. Most for-proft small
businesses are eligible for this program.
The types of businesses excluded from
7(a) loans (listed previously) are also
excluded from the 504 loan program.
The SBA’s 504 Certifed Development
Companies (CDC) serve their
communities by fnancing business
expansion needs. Their professional
staff works directly with borrowers to
tailor a fnancing package that meets
program guidelines and the credit
capacity of the borrower’s business.
CDCs work with banks and other
lenders to make loans in frst position
on reasonable terms, helping lenders
retain growing customers and provide
Community Reinvestment Act credit.
The SBA 504 loan is distinguished
from the SBA 7(a) loan program in
these ways:
The maximum debenture, or long-term
loan, is:
• $5 million for businesses that create
a certain number of jobs or improve
the local economy;
• $5 million for businesses that
meet a specifc public policy goal,
including loans for aiding rural
development and expansion of small
businesses owned by veterans,
women, and minorities; and
• $5.5 million for manufacturers and
energy related public policy projects.
Recent additions to the program
allow $5.5 million for each project
that reduces the borrower’s energy
consumption by at least 10 percent;
and $5.5 million for each project that
generates renewable energy fuels, such
as biodiesel or ethanol production.
Projects eligible for up to $5.5 million
under one of these two requirements
do not have to meet the job creation or
retention requirement, so long as the
CDC portfolio refects an average jobs to
debenture portfolio ratio of at least 1 job
per $65,000.
• Eligible project costs are limited
to long-term, fxed assets such
as land and building (occupied
by the borrower) and substantial
machinery and equipment.
• Most borrowers are required
to make an injection (borrower
contribution) of just 10 percent
which allows the business to
conserve valuable operating
capital. A further injection of 5
percent is needed if the business
is a start-up or new (less than two
years old), and a further injection
of 5 percent is also required if the
primary collateral will be a single-
purpose building (such as a hotel).
• Two-tiered project fnancing: A
lender fnances approximately
50 percent of the project cost and
receives a frst lien on the project
assets (but no SBA guaranty); A
CDC (backed by a 100 percent
SBA-guaranteed debenture)
fnances up to 40 percent of the
project costs secured with a junior
lien. The borrower provides the
balance of the project costs.
• Fixed interest rate on SBA
loan. The SBA guarantees
the debenture 100 percent.
Debentures are sold in pools
monthly to private investors. This
low, fxed rate is then passed on to
the borrower and establishes the
basis for the loan rate.
• All project-related costs can be
fnanced, including acquisition
(land and building, land and
construction of building,
renovations, machinery and
equipment) and soft costs, such
as title insurance and appraisals.
Some closing costs may be
fnanced.
• Collateral is typically a
subordinate lien on the assets
fnanced; allows other assets to
be free of liens and available to
secure other needed fnancing.
• Long-term real estate loans are up
to 20-year term, heavy equipment
10- or 20-year term and are self-
amortizing.
Businesses that receive 504 loans are:
• Small — net worth under $15
million, net proft after taxes under
$5 million, or meet other SBA size
standards.
• Organized for-proft.
• Most types of business — retail,
service, wholesale or manufacturing.
For information, visit
www.sba.gov/504.
Colorado Certi?ed Development
Companies:
Community Economic Development
Company of Colorado
d/b/a Small Business Finance Corporation
1175 Osage St., Ste. #110
Denver, CO 80204
Contact: Bill Bacon
303-893-8989 • 303-892-8398 Fax
Pat Berry
970-243-5442 ext. 409
Grand Junction Of?ce
Edith A. Corwin-Newberg
970-264-0496
Pagosa Springs Of?ce
[email protected]
Area of Operation – Colorado
Preferred Lending Partners, a Denver
Urban Economic Development
Corporation Company
140 E. 19th St., Ste. 202
Denver, CO 80203
Contact: Stephanie G. Gerringer, Director
303-861-4100 • 303-861-9456 Fax
[email protected]
Area of Operation - Colorado
Colorado Lending Source
518 17th St., Ste. 1800
Denver, CO 80202
Contact: Mike O’Donnell, Director
303-657-0010 • 303-657-0140 Fax
Tod Cecil
970-947-1400
Glenwood Springs Of?ce
[email protected]
Area of Operation – Colorado
Pikes Peak Regional Development
Corporation
322 S. Cascade Ave.
Colorado Springs, CO 80903
Contact: Douglas Adams
719-471-2044 • 719-471-2042 Fax
[email protected]
Area of Operation - Colorado
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SCEDD Development Company
d/b/a Business Lending Center
1104 N. Main St.
Pueblo, CO 81003
Contact: Edie McLish, Executive Director
719-545-8680 • 719-545-9908 Fax
[email protected]
Area of Operation - Colorado
Greater Salt Lake Business District
d/b/a Mountain West Small Business
Finance
2595 E. 3300 S.
Salt Lake City, UT 84109
Contact: Robert Edminster
801-474-3232 • 801-493-0111 Fax
[email protected]
Area of Operation- Moffat, Rio Blanco,
Gar?eld, Mesa, Montrose, San Miguel,
Dolores, Montezuma, and La Plata counties.
MICROLOAN PROGRAM
(LOANS UP TO $50,000)
The Microloan program provides
very small loans (up to $50,000) to
women, low-income, minority, veteran,
and other small business owners
through a network of more than 100
Intermediaries nationwide. Under
this program, the SBA makes funds
available to nonproft intermediaries
that, in turn, make the small loans
directly to start-up and existing
businesses. Entrepreneurs work directly
with the Intermediaries to receive
fnancing, and business knowledge
support. The proceeds of a microloan
can be used for working capital, or the
purchase of furniture, fxtures, supplies,
materials, and/or equipment. Microloans
may not be used for the purchase of real
estate. Interest rates are negotiated
between the borrower and the
Intermediary. The maximum term for
a microloan is six years. Because funds
are borrowed from the Intermediary,
SBA is not involved in the business loan
application or approval process. And,
payments are made directly from the
small business to the Intermediary.
The program also provides business-
based training and technical assistance
to micro-borrowers and potential micro-
borrowers to help them successfully
start or grow their businesses. Such
training and technical assistance may
include general business education,
assistance with business planning,
industry-specifc training, and other
types of training support.
Entrepreneurs and small business
owners interested in small amounts
of business fnancing should contact
the nearest SBA district offce for
information about the nearest Microloan
Program Intermediary Lender or go to
www.sba.gov/microloans.
Visit the following Colorado Microloan
Intermediaries:
Colorado Enterprise Fund
1888 Sherman St., Ste. 530
Denver, CO 80203
Contact: Alan Ramirez, Director of Lending
303-860-0242 • 303-860-0409 Fax
[email protected]
Service area: State of Colorado
Region 10 LEAP for Economic
Development
300 N. Cascade St., Ste. 1
Montrose, CO 81401
Executive Director: Michelle Haynes
Microloan Contact: Vince Fandel
970-249-2436
[email protected]
Service Area: West Central area including
Delta, Gunnison, Hinsdale, Montrose, Ouray
and San Miguel counties.
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STATE TRADE AND EXPORT
PROMOTION (STEP)
PROGRAM
The State Trade and Export
Promotion (STEP) Program is a pilot
export initiative to make matching-
fund awards to states to assist small
businesses enter and succeed in the
international marketplace. Activities to
support small business exporting under
the STEP Program are provided to
eligible small business concerns (“STEP
Clients”) located in states, territories,
and the District of Columbia. For more
information on the STEP program visit
www.sba.gov/internationaltrade.
SURETY BOND
GUARANTEE PROGRAM
The Surety Bond Guarantee Program
is a public-private partnership between
the Federal government and surety
companies to provide small businesses
with the bonding assistance necessary
for them to compete for public and
private contracting and subcontracting
opportunities. The guarantee provides
an incentive for sureties to bond small
businesses that would otherwise be
unable to obtain bonding. The program
is aimed at small businesses that lack
the working capital or performance
track record necessary to secure
bonding on a reasonable basis through
regular commercial channels.
Through this program, the SBA
guarantees bid, payment, performance
and ancillary bonds issued by surety
companies for individual contracts and
subcontracts up to $6.5 million. The
SBA reimburses sureties between 70
and 90 percent of losses sustained if a
contractor defaults on the contract. On
Federal contracts, SBA can guarantee
bonds on contracts up to $10 million, if
the contracting offcer certifes that a
guarantee would be in the best interest
of the Government.
SBA has two program components,
the Prior Approval Program and the
Preferred Surety Bond Program. In
the Prior Approval Program, the SBA
guarantees 90 percent of surety’s paid
losses and expenses on bonded contracts
up to $100,000, and on bonded contracts
greater than $100,000 that are
awarded to socially and economically
disadvantaged concerns, HUBZone
contractors, and veterans, and
service-disabled veteran-owned small
businesses. All other bonds guaranteed
in the Prior Approval Program receive
an 80 percent guarantee. Sureties must
obtain the SBA’s prior approval for
each bond guarantee issued. Under the
Preferred Program, the SBA guarantees
70 percent, and sureties may issue,
monitor and service bonds without the
SBA’s prior approval. Small businesses,
surety companies, and bond producers
are invited to visit our website at
www.sba.gov/osg. You may also call the
program offce at 202-205-6540.
Colorado Surety Agencies:
CB Insurance
Colorado Springs, CO
719-477-4278
CJS Bonds
Littleton, CO
720-236-8245
Cherry Creek Insurance Group
Greenwood Village, CO
720-330-7922
Colorado BW Insurance Agency
Grand Junction, CO
970-243-9012
Douglas County Insurance Group
Castle Rock, CO
720-524-9334
Hub International Insurance
Denver, CO
303-893-0300
Moody Insurance Agency
Denver, CO
303-824-6603
Mountain West Insurance
Craig, CO
970-824-8185
Rocky Mountain Surety
Englewood, CO
303-670-9600
Tom Sauer Bond Agency
Littleton, CO
303-738-3856
Wells Fargo Insurance Services
Denver, CO
303-863-6503
Willis of Colorado
Denver, CO
303-722-7776
SMALL BUSINESS
INVESTMENT COMPANY
PROGRAM
The Small Business Investment
Company (SBIC) program is a multi-
billion dollar program founded in 1958,
as one of many fnancial assistance
programs available through the U.S.
Small Business Administration. The
structure of the program is unique in
that SBICs are privately owned and
managed investment funds, licensed
and regulated by SBA, that use their
own capital plus funds borrowed with
an SBA guarantee to make equity
and debt investments in qualifying
small businesses. The funds raise
private capital and can receive SBA-
guaranteed leverage up to three times
private capital, with a leverage ceiling
of $150 million per SBIC and $225
million for two or more licenses under
common control. Licensed SBICs are
for-proft investment frms whose
incentive is to share in the success
of a small business. The U.S. Small
Business Administration does not invest
directly into small business through the
SBIC Program, but provides funding
through SBA guarantee debentures
to qualifed investment management
frms with expertise in certain sectors or
industries.
THE SMALL BUSINESS
INNOVATION RESEARCH
PROGRAM
The Small Business Innovation
Research (SBIR) program is a highly
competitive program that encourages
domestic small businesses to engage
in Federal Research/Research and
Development (R/R&D) that has the
potential for commercialization.
Through a competitive awards-
based program, SBIR enables small
businesses to explore their technological
potential and provides the incentive to
proft from its commercialization. By
including qualifed small businesses
in the nation’s R&D arena, high-tech
innovation is stimulated and the United
States gains entrepreneurial spirit
as it meets its specifc research and
development needs.
SBIR Program Eligibility
Only United States small businesses
are eligible to participate in the SBIR
program. An SBIR awardee must meet
the following criteria at the time of
Phase I and II awards:
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1. Organized for proft, with a place
of business located in the United
States;
2. No more than 500 employees,
including affliates;
3. Be a concern which is more than
50% directly owned and controlled
by one or more individuals (who
are citizens or permanent resident
aliens of the United States),
other small business concerns
(each of which is more than 50%
directly owned and controlled by
individuals who are citizens or
permanent resident aliens of the
United States), or any combination
of these;
4. Be a concern which is more than
50% owned by multiple venture
capital operating companies, hedge
funds, private equity frms, or any
combination of these (for agencies
electing to use the authority in 15
U.S.C. 638(dd)(1)); or
5. Be a joint venture in which each
entity to the joint venture must
meet the requirements set forth in
paragraph (a)(1)(i) or (a)(1)(ii) of
this section. A joint venture that
includes one or more concerns
that meet the requirements of
paragraph (a)(1)(ii) of this section
must comply with §121.705(b)
concerning registration and
proposal requirements.
6. No single venture capital operating
company, hedge fund, or private
equity frm may own more than
50% of the concern.
7. For awards from agencies using the
authority under 15 U.S.C. 638(dd)
(1), an awardee may be owned and
controlled by more than one VC,
hedge fund, or private equity frm
so long as no one such frm owns a
majority of the stock.
8. If an Employee Stock Ownership
Plan owns all or part of the
concern, each stock trustee and
plan member is considered an
owner.
9. If a trust owns all or part of the
concern, each trustee and trust
benefciary is considered an owner.
10. Phase I awardees with multiple
prior awards must meet the
benchmark requirements for
progress toward commercialization.
SBIR-Participating Agencies
Each year, Federal agencies with
extramural research and development
(R&D) budgets that exceed $100 million
are required to reserve 2.9% (FY 15)
of the extramural research budget
for SBIR awards to small businesses.
These agencies designate R&D topics
and accept proposals. Currently, eleven
agencies participate in the SBIR
program:
• Department of Agriculture
• Department of Commerce -
National Institute of Standards and
Technology
• Department of Commerce -
National Oceanic and Atmospheric
Administration
• Department of Defense
• Department of Education
• Department of Energy
• Department of Health and Human
Services
• Department of Homeland Security
• Department of Transportation
• Environmental Protection Agency
• National Aeronautics and Space
Administration
• National Science Foundation
For additional information visit
www.sbir.gov.
SMALL BUSINESS
TECHNOLOGY TRANSFER
PROGRAM
Small Business Technology Transfer
(STTR) is another program that
expands funding opportunities in
the federal innovation research and
development (R&D) arena. Central to
the program is expansion of the public/
private sector partnership to include
the joint venture opportunities for
small businesses and nonproft research
institutions. The unique feature of
the STTR program is the requirement
for the small business to formally
collaborate with a research institution
in Phase I and Phase II. STTR’s most
important role is to bridge the gap
between performance of basic science
and commercialization of resulting
innovations.
STTR Program Eligibility
Only United States small businesses
are eligible to participate in the STTR
program. The small business must meet
all of the following criteria at time of
award:
• Organized for proft, with a place
of business located in the United
States;
• At least 51 percent owned
and controlled by one or more
individuals who are citizens of, or
permanent resident aliens in, the
United States, and;
• No more than 500 employees,
including affliates.
The nonproft research institution
must also meet certain eligibility
criteria:
• Located in the US
• Meet one of three defnitions:
• Nonproft college or university
• Domestic nonproft research
organization
• Federally funded R&D center
(FFRDC)
STTR differs from SBIR in three
important aspects:
1. The SBC and its partnering
institution are required to
establish an intellectual property
agreement detailing the allocation
of intellectual property rights
and rights to carry out follow-
on research, development or
commercialization activities.
2. STTR requires that the SBC
perform at least 40% of the R&D
and the single partnering research
institution to perform at least 30%
of the R&D.
3. Unlike the SBIR program, STTR
does not require the Principal
Investigator to be primarily
employed by the SBC.
STTR-Participating Agencies
Each year, Federal agencies with
extramural research and development
(R&D) budgets that exceed $1 billion
are required to reserve 0.40% (FY 15)
of the extramural research budget for
STTR awards to small businesses.
These agencies designate R&D topics
and accept proposals. Currently, fve
agencies participate in the STTR
program:
• Department of Defense
• Department of Energy
• Department of Health and Human
Services
• National Aeronautics and Space
Administration
• National Science Foundation
For additional information visit
www.sbir.gov.
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The old adage “time is money” is
perhaps one of the most pertinent
statements that you can apply to
small business owners. Whether
you’re starting a business or managing
a growing one, entrepreneurs and
business owners wear many hats and
have many questions:
• What laws and regulations apply
to my business?
• How do I start to write a business
plan?
• Where can I get help with X, Y
and Z?
Many of us invariably turn to our
networks and the Internet to fnd
answers. But how can you trust that
the information you are getting is truly
applicable to your business and, let’s
face it, even accurate?
As part of its mission to help
business owners start, succeed and
grow, SBA, through the SBA.gov
website has developed numerous
online tools and guides to help
small businesses get information
and answers they need quickly and
effciently. For example, these
10 Steps to Starting a Business
and these 10 Steps to Hiring your
First Employee guides are essential
reading. Then there are the Licenses
and Permits Search Tool and the
Loans and Grants Search Tool.
New Online Tools to Help Business Owners
Plan, Manage and Grow
Over the past couple of months, the
SBA has expanded its capacity and
selection of tools and information that
business owners need by developing
a whole range of new online features!
Check them out:
1. Get to Know Your Market and
Competition Better with the SizeUp Tool
Want to know how your business
stacks up against the competition?
Where your potential competitors
are located? Where the best places
are to advertise your business?
These are all critical inputs
for your business plan and can
also help back up any fnancing
applications.
Now with the new SizeUp tool you
can crunch millions of data points
and get customizable reports and
statistics about your business and
its competition. Just enter your
industry, city, state and other
details. SizeUp then runs various
reports and provides maps and
data related to your competition,
suppliers and customers. It also
highlights potential advertising
opportunities.
2. Build a Business Plan Tool
Business planning can seem a
daunting task, but it doesn’t have
to be that way. To help you plan
and steer your business, this new
“Build a Business Plan” tool
guides you through the process
of creating a basic, downloadable
business plan. The great thing
about it is you can build a plan in
smaller chunks of time, save your
progress and return at your leisure.
To use the tool, simply log into
SBA.gov and enter information into
a template for each section of the
business plan including, market
analysis, company description and
fnancial projections. The tool is
secure and confdential and will
keep your plan on record for up
to six months. You can also save,
download or email the plan at any
time.
3. Size Standards Tool - Find Out Fast if You
Qualify for Government Contracts
In order to be eligible to sell to
the government and compete
for small business “set-aside”
contracts, business owners had to
rummage through various rules
and matrices to fnd out if their
business is truly “small” according
to SBA size standards. Now,
with this new Size Standards
Tool, you can follow three simple
steps to cut through the guesswork
and quickly fnd out if you qualify
for government contracting
opportunities. SBA also offers
other resources including
government contracting
training courses, and guides
to help you register as a
contractor.
4. Events Calendar - Locate Business
Training and Seminars
SBA and its partners, including
Small Business Development
Centers, Women’s Business
Centers, and SCORE, hold
hundreds of small business
training seminars and workshops
across the country. Until now,
there was no single repository
for these events. Now, with
SBA’s Events Calendar, you
can quickly fnd and sign up for
training. Enter a date range and/
or zip code to locate events in your
area. Results are fltered by topic
such as “starting a business,”
“managing a business,” “business
planning,” and “fnancing a
business.”
SBA ONLINE: WEB-BASED TOOLS FOR BUSINESS OWNERS
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Loan Programs for Businesses
Ways borrowers can use the money
(Information current as of 03/03/2015)
Program Who Qualifes Use of Proceeds Maturity Maximum Loan
Amount
Structure Benefts to
Borrower
Basic 7(a) For proft businesses
that can meet SBA’s
size standards,
nature of business,
use of proceeds,
credit elsewhere, and
other miscellaneous
eligibility factors.
Acquire land; purchase
existing building; convert,
expand or renovate
buildings; construct
new buildings; acquire
and install fxed assets;
acquire inventory;
purchase supplies and
raw materials; purchase a
business, start a business,
leasehold improvements,
term working capital; and,
under certain conditions,
to refnance certain
outstanding debts.
Based on the use
of proceeds and
borrower’s ability to
repay. Not based on
collateral. Maximum
maturity: 10 years
for working capital
(seven years is
common), 10 years
for fxed assets,
25 years for real
estate.
A Basic 7(a) can be
for as much as $5
million. SBA’s limit
to any one business
is $3.75 million so
a business can
have multiple loans
guaranteed by SBA
but the guaranteed
portion combined
cannot exceed
$3.75 million.
Term loans with one
monthly payment of
principal and interest
(P&I). Borrower
contribution required.
Interest rate depends
upon how lender applies
for guaranty (see lender
program chart). Cannot
revolve, no balloon or
call provisions.
Business can
obtain fnancing
not otherwise
available, fxed
maturity, available
when collateral
is limited. Can
establish or re-
affrm relationship
with lender.
International
Trade Loan
(ITL)
Same as Basic
7(a), plus, business
must be engaged or
preparing to engage
in exporting or be
adversely affected
by competition from
imports.
Acquire, renovate,
modernize facilities or
equipment used in making
products or services to
be exported, plus, for
permanent working capital
and to refnance business
debts currently on
unreasonable terms.
Same as Basic 7(a). Same as Basic
7(a), but when
borrower has both
international trade
and working capital
loans guaranteed by
the SBA, the limit to
any one business is
$4 million.
Same as Basic 7(a). Same as Basic
7(a). Plus, long-
term fnancing
for export-related
fxed assets and
working capital.
Export
Working
Capital Loan
(EWCP)
Same as Basic 7(a).
Plus, must be in
business one year
and engaged or
preparing to engage
in exporting.
Short-term working capital
to cover the costs of flling
export orders, including
ability to support an Export
Stand-By Letter of Credit.
Can be up to a
maximum of 36
months but generally
12 months or less.
Gross loan amount
$5.0 million. SBA
guaranteed portion
$4.5 million
Finance single or
multiple transactions.
Interest paid monthly,
principal paid as
payments from items
shipped overseas
are collected. Can be
renewed annually. Extra
fees apply. Percentage
of guaranty up to 90%.
Generally revolving.
Provides U.S.
exporters with a
line of credit that
can be separated
from domestic
operations line of
credit.
Can be used to
fnance 100% of
the cost of flling
export orders.
Seasonal
CAPlines
Same as Basic 7(a).
Plus, in business
for at least one year
and can demonstrate
seasonal fnancing
needs.
To fnance the seasonal
increases of accounts
receivable, inventory and
labor.
10 years Same as Basic 7(a). Short-term fnancing for
seasonal activities to be
repaid at the end of the
season when payment
for the seasonal activity
is made to business
Provides
opportunity
for seasonal
businesses to get
seasonal fnancing
not otherwise
available.
Contract
CAPlines
Same as Basic 7(a).
Plus, will perform on
contract or purchase
order for some third-
party buyer.
To fnance the cost of
one or more specifc
contract, sub-contract, or
purchase order, including
overhead or general and
administrative expenses,
allocable to the specifc
contract(s).
10 years Same as Basic 7(a). Short-term fnancing
for performance of
approved contract, sub-
contract, or purchase
order to be repaid when
payment for the activity
is made to business.
Can be revolving or not.
Provides
opportunity for
contractors and
sub-contractors
to get fnancing
not otherwise
available.
Builders
CAPlines
Same as Basic
7(a). Plus, building/
renovating residential
or commercial
structure for re-sale
without knowing
buyer at time of
approval.
For the direct expenses
related to the construction
and/or “substantial”
renovation costs of specifc
residential or commercial
buildings for resale,
including labor, supplies,
materials, equipment
rental, direct fees. The
cost of land is potentially
eligible.
Maximum of three
years to disburse and
build or renovate.
Extension possible to
accommodate sale.
Same as Basic 7(a). Short-term fnancing to
build or renovate home
or building for sale to
unknown third party.
“Substantial” means
rehabilitation expenses
of more than one-third
of the purchase price or
fair market value at the
time of application. Can
be revolving or not.
Provides
opportunity for
residential and
commercial
builders to
get fnancing
not otherwise
available.
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Program Who Qualifes Use of Proceeds Maturity Maximum Loan
Amount
Structure Benefts to
Borrower
Working
Capital
CAPlines
Same as Basic 7(a).
Borrower should
sell on credit and/
or have inventory
needing immediate
replacement after
the sale.
For short-term working
capital and operating
needs, including to fnance
export sales. Proceeds
must not be used to pay
delinquent withholding
taxes or similar trust funds
(state sales taxes, etc.) or
for foor planning.
10 years Same as Basic 7(a). Structured with
requirements for
payment of principal
tied to the businesses
collection of payments
from their clientele
Provides
opportunity for
businesses that
sell on credit to
get revolving
fnancing not
otherwise
available.
SBA Express
Lender
Structured
Loans or
Lines of
Credit
Businesses needing
a line of credit to
conduct credit in the
USA.
Working capital If revolving, seven-
year maximum,
including term out
period.
$350,000 Structure is established
by individual lender.
Lender must have SBA
Express designation
Has availability
for a line of credit
to help with short-
term cash needs
of the business.
Export
Express
Lender
Structured
Loans or
Lines of
Credit
Businesses needing
a line of credit to
support exporting
activity.
Working capital 70 percent
of which is to be used
to support exporting
activities.
If revolving, seven-
year maximum,
including term out
period.
$500,000 Structure is established
by individual lender.
Lender must have
Export Express
designation
Has availability
for a line of credit
to help with short-
term cash needs
of the business.
Non-7(a) Programs
504 Loan
Program
For-proft businesses
that can meet
the SBA’s size
standards, nature
of business, use
of proceeds, credit
elsewhere, and
other miscellaneous
factors.
Non-7(a) Programs
For the acquisition of
long-term fxed assets,
equipment with a useful
life of at least 10 years;
refnance loan-term fxed
asset debt under certain
conditions; working capital
under certain conditions;
to reduce energy
consumption; and to
upgrade renewable energy
resources.
Based on the use of
proceeds. Twenty
years for real
estate. Ten years
for machinery and
equipment.
The SBA portion of
the fnancing can
generally be up to
$5.0 million but may
be up to $5.5 million
for manufacturing
businesses or energy
saving public policy
goals.
Loans packaged by
Certifed Development
Companies (CDC) and
designed to fnance
up to 40 percent of
a “project”
1
secured
with a 2nd position
lien. Another loan from
a third party lender
fnancing up to 50
percent of the same
project secured in 1st
position, and borrower
contribution of at least
10 percent. Extra
contributions for special-
purpose properties and
new businesses.
Long-term
Treasury fxed
rates that are
below market,
low borrower
contribution only
10 to 20 percent,
full amortization
with no call or
balloon conditions.
Microloan
Program
Same as Basic 7(a).
Plus, nonproft child-
care businesses.
Similar to Basic 7(a). Plus,
start-up nonproft child-
care businesses
Shortest term
possible, not to
exceed six years.
$50,000 to the small
business at any
given time.
The SBA provides a
loan to a nonproft
micro-lender called an
“intermediary” who uses
the proceeds to make
microloans to small
businesses. Technical
assistance can also be
provided.
Direct loan
from nonproft
intermediary
lender, fxed-rate
fnancing, can
be very small
loan amounts,
and technical
assistance is
available.
1
“Project” is the purchase or lease, and/or improvement or renovation of long-term fxed assets by a small business, with 504 fnancing, for use in its business
operations.
All SBA programs and services are extended to the public on a nondiscriminatory basis.
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Lender’s Programs Chart
Ways lenders can request guarantees
(Information current as of 03/03/2015)
Program
Processing
Which Lenders
Qualify
Types of Loans that
can be Guaranteed
Maximum Allowable
Interest Rates
Eligibility Analysis Credit Analysis Maximum Loan
Amount
Standard
Processing
Lenders that
have an executed
participation
agreement with the
SBA.
Basic 7(a). International
Trade, Export Working
Capital, all CAPlines.
Base rate is Wall
Street Journal prime,
or LIBOR* one month
rate plus 3 percent, or
SBA Peg rate. Plus, an
allowable spread from
2.25 to 2.75 percent
based on term. Lender
can add 2 percent if
loan is $25,000 or less,
and 1 percent if loan is
$25,001 to $50,000. Can
be fxed or variable.
Lender completes
eligibility
questionnaire
and SBA reviews
eligibility during loan
processing.
Lender to cover all
aspects of prudent credit
analysis with emphasis
on applicant’s ability
to repay loan from
operation. SBA conducts
analysis of lender’s
analysis.
Maximum loan
$5 million. Loans
up to $150,000
guaranteed up to
85 percent; loans
over $150,000
guaranteed up
to 75 percent.
Business with
multiple SBA
loans may get
some variations.
Certifed
Lender
Program
(CLP)
Processing
Same as Standard
7(a). Plus, an
executed CLP
agreement.
Same as Standard 7(a)
processing except no
policy exceptions.
Same as Standard 7(a). Same as Standard
7(a).
Same as Standard 7(a)
except SBA reviews
lender’s analysis work,
not a re-analysis.
Maximum loan
$5 million.
Guaranty
percentage same
as Standard 7(a).
Preferred
Lender
Program
(PLP)
Processing
Same as Standard
7(a). Plus, an
executed PLP
agreement.
Same as Standard
processing except
restrictions on loans
involving some types of
debt refnancing.
Same as Standard 7(a). Lender completes
Eligibility Analysis.
Delegated to lender. Maximum loan
$5 million.
Guaranty
percentage same
as Standard 7(a).
SBA Express
Processing
Same as Standard
7(a). Plus, an
executed SBA
Express agreement.
Basic 7(a) with
restrictions on
some types of debt
refnancing. Plus, lender
structured term and
revolving loans.
If $50,000 or less,
cannot exceed prime
+ 6.5 percent. If over
$50,000, cannot exceed
prime + 4.5 percent.
Prime may be lender
prime.
Lender completes
SBA Form
1920 “Eligibility
Information.”
Delegated to lender. Maximum loan
$350,000.
Guaranty
percentage
50 percent.
Export
Express
Processing
Same as Standard
7(a). Plus, an
executed Export
Express agreement.
Similar to export
working capital loan
and international trade
loans which meet export
related eligibility criteria.
If $50,000 or less,
cannot exceed prime
+ 6.5 percent. If over
$50,000, cannot exceed
prime + 4.5 percent.
Prime may be lender
prime.
Lender completes
SBA Form
1920 “Eligibility
Information.”
Delegated to lender. Maximum loan
$500,000.
Guaranty
percentage range
between 75 and
90 percent.
Community
Advantage
Lenders that have an
executed Community
Advantage
agreement.
Basic 7(a) except
restrictions on some
types of refnancing.
Prime + 6 percent. Lenders complete
SBA Form 1920
“Eligibility
Information.”
Similar to Standard 7(a)
except credit factors
to consider are more
defned.
Maximum loan
$250,000.
Guaranty
percentage same
as Standard 7(a).
• London InterBank Offered Rate
All SBA programs and services are extended to the public on a nondiscriminatory basis.
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The U.S. government is the largest
single purchaser of goods and services
in the world, buying everything from
armored tanks to paper clips. Every
year, the federal government awards
more than $500 billion in contracts, and
a signifcant share of those contracts are
specifcally allotted to small businesses.
The Small Business Administration
works with agencies to award at least
23 percent of all prime government
contracts to small businesses, with
specifc statutory goals for small
business, small disadvantaged
businesses (SDB), businesses that
are women-owned (WOSB) or service-
disabled veteran-owned (SDVOSB),
and businesses that are located in
historically underutilized business zones
(HUBZone frms).
The agency ensures that small
businesses have access to long-lasting
development opportunities, which
means working with small businesses
to help them stay competitive, as
well as encouraging federal agencies
to award more contracts to small
businesses. The SBA provides outreach
programs, matchmaking events, and
online training opportunities; and
helps agencies identify contracting
opportunities for small businesses.
HOW GOVERNMENT
CONTRACTING WORKS
Sealed bidding vs. Negotiation
There are two contracting methods the
government uses to purchase goods and
services, sealed bidding and negotiation.
The frst method, sealed bidding,
involves the issuance of an invitation
for bid by a procuring agency. Under
the sealed bidding method, a contract is
awarded to a responsible bidder whose
bid, conforms to the requirements of a
solicitation (Invitation for Bids (IFB))
that will be most advantageous to the
government, considering only price and
the price-related factors included in the
IFB. The second method, negotiation,
involves issuing a request for proposal
(RFP) or request for quotation (RFQ).
The business with the best proposal in
terms of technical content, best value,
price and other factors generally wins
the contract.
Types of Contracts
Firm fxed-price contracts place
the full responsibility for the costs
and risk of loss on the contractor.
Firm fxed-price contracts do not
permit any adjustment on the basis
of the contractor’s costs during the
performance of the contract. It provides
maximum incentive for the contractor
to control costs and perform effectively
and imposes a minimum administrative
burden upon the contracting parties.
This type of contract is used in all
sealed bid and some negotiated
procurements.
Cost reimbursement contracts provide
for the payment of allowable costs
incurred by the contractor, to the extent
stated in the contract. The contract
establishes a ceiling price, above which
a contractor may not exceed without the
approval of the contracting offcer. Cost
reimbursement contracts are commonly
used in research and development
contracts.
Some contracts do not ft neatly into
these two categories, such as time
and material contracts (prices for
hourly wages are fxed but the hours
are estimated) and letter contracts
(authorizes a contractor to begin work
on an urgent requirement).
Small Business Set-Asides
A “set-aside” for small businesses
reserves an acquisition exclusively
for small business participation.
This includes HUBZone Certifed
small businesses, SBA 8(a) Certifed
small businesses, Service-Disabled
CONTRACTING
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Veteran-Owned small businesses and
Economically Disadvantaged/Women-
Owned small businesses in specifc
industries. There are two ways in
which set-asides can be determined.
First, if an acquisition of goods or
services has an anticipated dollar value
of at least $3,000 but not exceeding
$150,000, it is automatically reserved
for small businesses. The acquisition
will be set aside only if the contracting
offcer determines there are two or more
responsible small businesses that are
competitive in terms of prices, quality
and delivery. Second, if an acquisition
for goods or services is estimated
at more than $150,000, and it is
determined that offers will be obtained
from two or more responsible small
businesses, at a fair market price,
the acquisition is reserved exclusively
for small business participation.
Reasonable expectations of small
business competition may be evaluated
using past acquisition history of an item
or similar items.
There are several exceptions and
unique rules for specifc kinds of
small businesses and industries. For
Research and Development (R&D)
small business set-asides, there
must be reasonable expectation of
obtaining from small businesses the
best scientifc and technological sources
consistent with the requirements of
the proposed acquisition. For small
business set-asides other than for
services or construction services, any
business proposing to furnish a product
that it did not manufacture must
furnish the product of a small business
manufacturer unless the SBA has
granted either a waiver or exception
to this requirement, referred to as the
Non-manufacturer rule. In industries
where the SBA fnds that there are no
small business manufacturers, it may
issue a waiver to the non-manufacturer
rule. Waivers permit small businesses
dealers or distributors to provide any
domestic frm’s product.
Subcontracting
Subcontracting opportunities are a
great resource for small businesses,
especially for those not ready to bid as
prime contractors. Experience gained
from subcontracting with a federal
prime contractor can better prepare
businesses to bid for prime contracts.
Current regulations stipulate that
for contracts offering subcontracting
opportunities over $650,000 for
goods and services, or $1.5 million
for construction must offer the
maximum practicable subcontracting
opportunities to small businesses.
In addition, potential large business
prime contractors must submit a
subcontracting plan with their proposal
describing how they will successfully
maximize subcontracting opportunities
to small businesses.
To fnd subcontracting opportunities,
a list of federal prime solicitations is
listed under the U.S. Small Business
Administration Subcontracting Network
(SUBNET) web.sba.gov/subnet/search/
index.cfm and through the General
Services Administration (GSA) at
www.gsa.gov/portal/content/101195.
Research the list of prime contractors
and determine which are best suited
to your business. Develop a marketing
strategy, and then contact the Small
Business Liaison Offcer (SBLO)
listed for each prime to schedule an
appointment.
SBA CONTRACTING
PROGRAMS
HUBZONE
The Historically Underutilized
Business Zones (HUBZone) program
helps small businesses located in
distressed urban and rural communities
gain access to federal set-aside contracts
and sole source contracts, as well as a
price evaluation preference in full and
open contract competitions. There is
a statutory goal that HUBZone small
business concerns be awarded not less
than 3 percent of the total value of all
prime contract and subcontract awards.
The HUBZone program also establishes
preference for award of federal contracts
to small businesses in these areas. To
qualify for the program, a business
(except those that are tribally-owned)
must meet the following criteria:
• It must be a small business by SBA
size standards
• It must be owned and controlled at
least 51 percent by U.S. citizens,
or a Community Development
Corporation (CDC), an agricultural
cooperative, or an Indian tribe
• Its principal offce must be located
within a “Historically Underutilized
Business Zone,” which includes
lands considered “Indian Country”
and military facilities closed by the
Base Realignment and Closure Act
• At least 35 percent of its employees
must reside in a HUBZone.
Note: Different rules apply for
Tribal Governments, Alaska Native
Corporations, Community Development
Corporations and small agricultural
cooperatives. These are delineated
in Title 13 of the Code of Federal
Regulations, Part126.
Existing businesses that choose to
move to qualifed areas are eligible to
apply for certifcation provided they
meet all the eligibility requirements. To
fulfll the requirement that 35 percent
of a HUBZone frm’s employees reside
in a HUBZone, employees must 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
indefnitely.
The SBA is responsible for:
• Determining whether or not
individual concerns are qualifed
HUBZone small business concerns;
• Maintaining a list of qualifed
HUBZone small business concerns
for use by acquisition agencies
in awarding contracts under the
program;
• Adjudicating protests and appeals
of eligibility to receive HUBZone
contracts.
For additional information, visit
www.sba.gov/hubzone.
8(a) BUSINESS DEVELOPMENT
PROGRAM
The 8(a) Business Development
program is a nine-year program
established to assist eligible socially and
economically disadvantaged individuals
to develop and grow their businesses.
Business development assistance
includes one-on-one counseling, training
workshops, match-making opportunities
with federal buyers and other
management and technical guidance.
There is a statutory requirement that
small disadvantaged business concerns
be awarded not less than 5 percent of
the total value of all prime contract
awards. All frms that become eligible
for SBA’s 8(a) business development
assistance are also considered small
disadvantaged business concerns for the
purpose of federal contracting.
To be eligible for the 8(a) Business
Development program, a business must
meet the following criteria:
• It must be a small business by SBA
size standards;
• It must be owned (at least 51
percent) by one or more individuals
who qualify as socially and
economically disadvantaged, and
who are U.S. citizens of good
character;
• It must be controlled, managed,
and operated full-time by one or
more individuals who qualify as
disadvantaged, and;
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• It must demonstrate potential
for success (generally by being in
business for at least two full years)
and have the capacity to perform on
government and non-government
contracts before applying.
Socially disadvantaged individuals
are those who have been subjected to
racial or ethnic prejudice or cultural
bias because of their identity as a
member of a group without regard
to their individual capabilities. The
following individuals are presumed
to be socially disadvantaged: Black
Americans, Native Americans, Alaska
Natives or Native Hawaiians, Hispanic
Americans, Asian Pacifc Americans,
and Subcontinent Asian Americans.
An individual who is not a member
of one of these groups must establish
individual social disadvantage by a
preponderance of evidence.
Economically disadvantaged
individuals are socially disadvantaged
individuals whose ability to compete
in the free-enterprise system has been
impaired due to diminished capital
and credit opportunities as compared
to others in the same or similar
line of business who are not socially
disadvantaged.
Firms owned by Alaska Native
Corporations, Indian tribes, Native
Hawaiian organizations, and
Community Development Corporations
can also apply to the SBA for 8(a)
business development assistance.
So that approved frms can obtain
training, counseling, and business
development assistance, SBA designates
a staff person at a local SBA district
offce, geographically near the business
to coordinate the frm’s business
development assistance.
SBA is responsible for:
• Determining whether a business
qualifes for the 8(a) Business
Development program;
• Determining whether a business
continues to qualify, during the
nine-year term;
• Approving Mentor/Protégé
agreements between 8(a) frms and
large businesses;
• Providing technical guidance and
business development assistance
during the nine-year term.
For additional information, visit
www.sba.gov/8a.
PROCUREMENT TECHNICAL
ASSISTANCE CENTERS
(PTACs)
Doing business with the government
is a big step to growing your business.
Procurement Technical Assistance
Centers (PTACs) provide local,
in-person counseling and training
services for you, the small business
owner. They are designed to provide
technical assistance to businesses that
want to sell products and services to
federal, state, and/or local governments.
PTAC services are available either
free of charge, or at a nominal cost.
PTACs are part of the Procurement
Technical Assistance Program, which is
administered by the Defense Logistics
Agency.
What can a PTAC do for you?
• Determine if your business is ready
for government contracting.
Pursuing government contracts is
a challenge, and can be burden for
your company if you do not have
the resources or maturity to handle
a contract. A PTAC representative
can sit with you one-on-one and
determine if your company is ready,
and how to position yourself for
success.
• Help you register in the proper
places. There are numerous
databases to register with to get
To be eligible to bid on a federal
contract, you must know your business.
Answer the following three questions:
1. Are you a small business?
Is your small business:
• Organized for proft?
• Located in the U.S.?
• Operated primarily within the
U.S. or making a signifcant
contribution to the U.S. economy
through payment of taxes or use of
American products, materials, or
labor?
• Independently owned and
operated?
• Not dominant in the feld of
operation in which it is bidding for
government contracts?
• A sole proprietorship, partnership,
corporation, or any other legal
form?
If the frst six criteria apply to your
business, ask yourself the second
important question to fnd out if
your business meets size standard
requirements.
2. What is the size standard for your
business?
Size standards are used to determine
whether a business is small or
“other than small.” Size standards
vary depending upon the industry.
To determine the size standard for
your business, you will need a North
American Industry Classifcation code
(NAICS). Every federal agency uses
these codes when considering your
business. To determine your NAICS
code, go to www.census.gov/eos/www/naics/.
Some SBA programs require their
own unique size standards. To fnd out
more about these requirements and
other size standard information, go to
www.sba.gov/size.
3. Do you fall under a speci?c
certi?cation?
Under the umbrella of “small
business,” SBA has outlined several
specifc certifcations that businesses
may fall under. These certifcations are
divided into two categories:
SBA-Certi?ed and Self-Certi?ed.
The SBA-Certifed Programs were
created to assist specifc businesses
in securing federal contracts and
therefore can only be issued by SBA
administrators. For the Self-Certifed
Programs, you can determine for
yourself if your business meets the
requirements by referring to the
Federal Acquisition Regulation (FAR).
Just as Congress has given federal
agencies a goal of procuring 23
percent of federal contracts from
small businesses, so too must federal
agencies meet specifc contracting goals
for other categories of small frms.
These goals are:
• 23 percent of contracts for Small
Businesses
• 5 percent of contracts to Small
Disadvantaged Businesses
• 5 percent to Women-Owned Small
Businesses
• 3 percent to Service-Disabled
Veteran-Owned Small Businesses
• 3 percent to HUBZone Small
Businesses
Federal agencies have a strong
incentive to fulfll these contracting
goals. You should apply for those SBA-
Certifed and Self-Certifed programs
for which you qualify to take advantage
of contracting opportunities.
WHAT YOU SHOULD KNOW
ABOUT YOUR BUSINESS
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involved with the government
marketplace, including the
Department of Defense’s System for
Award Management (SAM), GSA
Schedules, and other government
vendor sites.
• See if you are eligible in any small
business certifcations. Some
government contracts are set
aside for certain businesses that
have special certifcations, such as
woman-owned, minority-owned, and
HUBZone. A PTAC representative
can help you obtain these
certifcations, if you are eligible,
allowing for more government
contract opportunities.
• Research past contract
opportunities. A PTAC
representative can look into past
contracts, to see what types of
contracts have been awarded to
businesses like yours.
In addition, a PTAC can help you
identify and bid on a contract, and if you
are awarded the contract, continue to
provide you support through measuring
your performance and helping with your
contract audits. Don’t hesitate to fnd
the PTAC near you today to get started
in government contracting or to improve
your success.
SMALL DISADVANTAGED
BUSINESS
A Small Disadvantaged Business
(SDB) is defned as a small business
that is at least 51 percent owned and
controlled by one or more individuals
who are socially and economically
disadvantaged.
There is a federal government-wide
goal of awarding at least 5 percent
of prime contracting dollars to SDBs
each year. Large prime contractors
must also establish a 5 percent
subcontracting goal for SDBs in their
subcontracting plans which includes
SBA 8(a) certifed small businesses.
Firms self-certify as SDB in the
federal data base called the System for
Award Management (SAM) without
submitting any application to the SBA;
however, frms approved by the SBA
into the 8(a) Business Development
Program are automatically certifed as
an SDB. To self certify, frms should
access the website: www.sba.gov/sdb.
By reading the information contained
therein you will be given guidance as to
what steps are required.
SERVICE-DISABLED VETERAN-
OWNED SMALL BUSINESS
The Service-Disabled Veteran-
Owned Small Business (SDVOSB)
program has a federal government-wide
goal of awarding at least 3 percent
of prime and subcontracting dollars
to Service-Disabled Veteran-Owned
Small Businesses each year. Large
prime contractors must also establish
a subcontracting goal for SDVOSBs
in their subcontracting plans. These
subcontracting goals are reviewed at
time of proposal by both the contracting
offcer and the SBA prior to the award
of a contract.
While the SBA does not certify
companies as SDVOSBs, SDVOSB
protest process is administered by
SBA to ensure that only businesses
owned by service-disabled veterans
receive contracts reserved exclusively
for them. When a business’s SDVOSB
self-certifcation is challenged, the
SBA determines if the business meets
the status, ownership and control
requirements.
To determine your eligibility,
contact your local veterans’ business
development offcer, visit the
various program websites, or contact
SBA’s Offce of Veterans Business
Development at www.sba.gov/about-
of?ces-content/1/2985.
WOMEN-OWNED
SMALL BUSINESS
FEDERAL CONTRACT PROGRAM
On October 7, 2010, the SBA
published a fnal rule effective February
4, 2011, aimed at expanding federal
contracting opportunities for women-
owned small businesses. The Women-
Owned Small Business (WOSB)
Federal Contract Program authorizes
contracting offcers to set aside certain
federal contracts for eligible women-
owned businesses and economically
disadvantaged women-owned small
businesses (EDWOSB) in industries
where it has be determined WOSBs
and EDWOSBs are underrepresented..
To be eligible, a frm must be at least
51 percent owned or controlled by one or
more women. The women must be U.S.
citizens and the WOSB or EDWOSB
must be “small” under its primary
industry in accordance with SBA’s size
standards established for under the
North American Industry Classifcation
code assigned to that industry. To be
deemed “economically disadvantaged”
its owners must demonstrate economic
disadvantage in accordance with the
requirements set forth in the fnal rule.
For additional information, visit
www.sba.gov/wosb.
Protests under the WOSB Federal
Contract Program are also administered
by the SBA. When a company’s WOSB
or economically disadvantaged WOSB
self-certifcation is challenged, the
SBA determines if the business meets
ownership and control requirements.
Large prime contractors must also
establish a subcontracting goal for
Woman-Owned Small Businesses in
their Subcontracting Plans. These
subcontracting goals are reviewed at
time of proposal by both the contracting
offcer and the SBA prior to the award
of a contract.
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Once you have identifed the important
information regarding your business, it is
time to start the process of procuring a
government contract.
1. Identify your DUNS (Data Universal
Numbering System) Number
To register your business, obtain a
DUNS number used to identify and track
millions of businesses. You can
obtain your free DUNS number when
registering with the System for Award
Management. Log on to www.sam.gov
for more information or by contacting
Dun & Bradstreet at www.dnb.com.
2. Identify your EIN
(Employer Identi?cation Number)
An EIN, otherwise known as a federal tax
identifcation number, is generally
required of all businesses. For more
information, go to www.irs.gov.
3. Identify your NAICS (North American
Industry Classi?cation) codes
The NAICS codes are used to classify the
industry a particular business occupies.
You will need at least one NAICS code to
complete your registration, but be sure to
list as many as apply. You may also add
or change NAICS codes at any time. Visit
www.census.gov/eos/www/naics/ to fnd
NAICS codes.
4. Identify your SIC (Standard Industrial
Classi?cation) codes
The SIC codes are four-digit numbers
that are used to classify the industry a
particular business occupies. While
NAICS codes have largely replaced SIC
codes, you will still need to provide your
SIC code. SIC codes can be found at
www.osha.gov/pls/imis/sicsearch.html.
5. Register with the System for Award
Management (SAM), formerly the
Central Contractor Registration (CCR)
The SAM is an online federal
government maintained database of
companies wanting to do business with
the federal government. Agencies search
the database for prospective vendors.
Register at www.SAM.gov.
After completing registration, you will
be asked to enter your small business
profle information through the SBA
Supplemental Page. The information will
be displayed in the Dynamic Small
Business Search.
Creating a profle in SAM and keeping it
current ensures your frm has access
to federal contracting opportunities.
Entering your small business profle,
including your business information
and key word description, allows
contracting offcers, prime contractors,
and buyers from state and local
governments to learn about your
company.
6. Register with the GSA Schedule
The GSA (General Services
Administration) Multiple Award Schedule
(aka Federal Supply Schedule) is used by
GSA to establish long-term, government-
wide contracts with commercial frms.
Once these contracts are established,
government agencies can order the
supplies and services they need directly
from the frms through the use of an
online shopping tool. Becoming a GSA
schedule contractor increases your
opportunity for contracts across all levels
of government. Businesses interested in
becoming GSA schedule contractors
should review the information available
at www.gsa.gov/schedules.
7. Make Sure Your Business is
Financially Sound
This critical step is absolutely necessary
to make sure that your business is
fnancially prepared for the journey
ahead. Even if you are able to obtain a
government contract, you will not be
receiving all of the money at once. It
helps to have a clear plan of how your
business will stage the benefts of the
contract.
8. Search Federal Business Opportunities
(FedBizOpps) for Contracting
Opportunities
FedBizOpps, is an online service operated
by the federal government that
announces available business
opportunities. FedBizOpps helps identify
the needs of federal agencies and
available contracting opportunities.
To begin searching for contracting
opportunities, go to www.fbo.gov.
9. Marketing Your Business
Registering your business is not enough
to obtain a federal contract; you will need
to market your business to attract federal
agencies. Tips for good marketing are:
• Determine which federal agencies
buy your product or service, and
get to know them;
• Identify the contracting
procedures of those agencies;
• Focus on opportunities in your
niche and prioritize them.
• Although not required, you may want
to obtain a PSC (Product Services
Code) and/or a FSC (Federal Supply
Classifcation). These codes provide
additional information about the
services and products your business
offers.
GETTI NG STARTED I N CONTRACTI NG
The following federal procurement
resources may also be of assistance:
• The Certi?cates of Competency (CoC)
program allows a small business,
which is the apparent successful
offeror, to appeal a contracting offcer’s
non-responsibility determination that
it is unable to fulfll the requirements
of a specifc government contract. The
SBA will conduct a detailed review
of the frm’s technical and fnancial
capabilities to perform on the contract.
If the business demonstrates the
capability to perform, the SBA issues
a Certifcate of Competency to the
contracting offcer, requiring award of
that contract to the small business.
• Procurement Center Representatives
(PCR) and Commercial Marketing
Representatives (CMR): PCRs work
to increase the small business share
of federal procurement awards.
CMRs offer many services to small
businesses, including counseling on
how to obtain subcontracts. To fnd a
PCR or CMR near you, go to
www.sba.gov/content/procurement-center-
representatives.
• PTACs (Procurement Technical
Assistance Centers): PTACs provide
assistance to businesses that want to
sell products and services to federal,
state, and/or local government. To
fnd a PTAC in your state, go to
www.dla.mil/SmallBusiness/Pages/ptap.aspx.
• Department of Defense (The DoD is
the largest purchaser of goods from
small businesses):
www.acq.osd.mil/osbp/
• Of?ce of Federal Procurement Policy:
www.whitehouse.gov/omb/procurement_default
• Acquisition Forecast:
www.acquisition.gov/comp/procurement
_forecasts/index.html
• Federal Supply Schedule (FSS):
www.gsa.gov
• GSA Center for Acquisition Excellence:
www.gsa.gov/portal/content/103487
ADDITIONAL PROCUREMENT RESOURCES
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he disaster program is
SBA’s largest direct loan
program, and the only SBA
program for entities other
than small businesses. SBA
is responsible for providing low-interest
disaster loans to businesses of all
sizes, private non-proft organizations,
homeowners and renters following
declared disasters.
The SBA is authorized by the Small
Business Act to make two types of
disaster loans:
Physical Disaster Loans
Physical Disaster Loans are
the primary source of funding for
permanent rebuilding and replacement
of uninsured or underinsured disaster-
caused damages to privately-owned
real and/or personal property. SBA’s
physical disaster loans are available
to businesses of all sizes, private non-
proft organizations, homeowners
and renters. Businesses and private,
nonproft organizations of any size may
apply for a loan up to $2 million (actual
loan amounts are based on the amount
of uncompensated damage) to repair
or replace real property, machinery,
equipment, fxtures, inventory and
leasehold improvements. A homeowner
may apply for a loan of up to $200,000
to repair or replace the primary
residence to its pre-disaster condition.
Homeowners or renters may apply
for a loan up to $40,000 to help repair
or replace personal property, such as
clothing, furniture or automobiles, lost
in the disaster.
The SBA may increase a loan up
to 20 percent of the total amount of
physical loss as verifed by SBA to make
improvements that protect the property
from similar future disasters.
Economic Injury Disaster Loans
Economic Injury Disaster Loans
provide the necessary working capital
after a declared disaster until normal
operations resume. Small businesses,
small agricultural cooperatives, small
businesses engaged in aquaculture
(fsheries, for example) and most private
nonproft organizations of all sizes are
eligible for EIDL assistance, regardless
of whether there was any physical
damage. The loan limit is $2 million.
The EIDL helps small businesses meet
ordinary and necessary operating
expenses as they recover from a disaster.
The limit for physical and EIDL loans
combined is $2 million.
The Military Reservists Economic
Injury Disaster Loan is a working
capital loan for small businesses facing
fnancial loss when the owner or an
essential employee is called up to active
duty in their role as a military reservist.
The loan limit is $2 million and the
business can use the funds to cover
operating expenses until the essential
employee or business owner is released
from active duty.
The SBA can only approve disaster
loans to applicants having an acceptable
credit history and repayment ability.
The terms of each loan are established
in accordance with each borrower’s
ability to repay. The law gives SBA
several powerful tools to make disaster
loans affordable: low-interest rates
(around 4 percent), long-terms (up to
30 years), and refnancing of prior liens
(in some cases). As required by law, the
interest rate for each loan is based on
SBA’s determination of whether the
SBA DISASTER ASSISTANCE
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applicant has credit available elsewhere
— the ability to borrow or use their own
resources to recover from the disaster
without causing undue hardship.
More information on all of SBA’s
disaster assistance programs, including
information for military reservists,
is available at www.sba.gov/disaster.
Apply online using the Electronic Loan
Application (ELA) via SBA’s secure
Website at: https://disasterloan.sba.gov/ela.
Disaster Preparedness
Recovering from a disaster doesn’t
begin with clearing the debris and
returning to work. Imagine stepping into
your store, or restaurant, or the offce
where you run your business, a day or
two after the fre has been contained,
the tornado has passed, or foodwaters
have receded. First come the questions:
“How much will it cost to rebuild? Will
my insurance cover all this? How will
I pay my employees and vendors and
cover the bills during the recovery
phase?” Before a disaster strikes is a
good time to start, or update and test
your business continuity plan.
While SBA disaster loans go a long
way toward revitalizing communities
devastated by the economic fallout
that follows disasters, with a solid
preparedness plan in place, your
business will be able to recover sooner,
possibly without taking on new debt.
Assessing your risks and needs are
an important frst step in developing
your business continuity strategy. The
American Red Cross’ Ready Rating™
program (www.readyrating.org) is a
free online tool that helps businesses
get prepared for disaster and other
emergencies. With Ready Rating you
can evaluate your level of disaster
readiness, and you’ll get customized
feedback on how to establish or expand
your disaster plan.
Another useful site provided by FEMA
— Ready.gov (www.ready.gov) — provides
practical disaster preparedness tips
and checklists for homeowners, renters
and businesses. SBA has teamed up
with Agility Recovery Solutions to offer
business continuity strategies through
the “PrepareMyBusiness” website
(www.preparemybusiness.org) and
monthly disaster planning webinars.
Previous topics — presented by
experts in their felds — have included
crisis communications, testing the
preparedness plan, and using social
media to enhance small business
recovery. At the website you can
sign up for future webinars, view
previous webinars, and download
checklists that give you tips on risk
assessment, evacuation plans and food
preparedness, that will help you develop
a solid business continuity plan.
Meanwhile, here are a few
preparedness tips to consider:
• Review Your Insurance Coverage.
Contact your insurance agent to
fnd out if your coverage is right for
your business and make sure you
understand the policy limits.
Ask about Business Interruption
Insurance, which compensates you
for lost income and covers operating
expenses if your company has to
temporarily shut down after a
disaster.
• Establish a solid supply chain.
If all your vital external vendors
and suppliers are local and if the
disaster is signifcantly widespread,
you’ll all be in the same boat,
struggling to recover. It’s a good
idea to diversify your list of vendors
for key supplies to companies
outside your area or internationally,
if possible. Create a contact list for
important contractors and vendors
you plan to use in an emergency
and fnd out if those suppliers have
a recovery plan in place. Keep this
list with other documents fled in a
place that’s accessible, and also at a
protected off-site location.
• Plan for an alternate location. Do
some research well in advance of
the disaster for several alternative
places to relocate your company
in the event a disaster forces you
to shut down indefnitely. Some
options include contacting a local
real estate agent to get a list of
available vacant offce space. Make
an agreement with a neighboring
business to share offce space if
disaster strikes. If possible, make
plans for employees to telecommute
until the offce has been rebuilt.
The fnancial and emotional cost of
rebuilding a business after a disaster
can be overwhelming. However, with a
business continuity plan in place, you’ll
be able to rebound and reopen quickly,
and in a better position to contribute
to the economic recovery of your
community.
As small businesses are leading
America’s economic recovery, many of
them are investing time and money
into their plans to grow and create
jobs. Developing a strong disaster
preparedness plan should be a critical
and integral piece of those efforts.
Planning for a disaster is the best way of
limiting its effects.
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OFFICE OF ADVOCACY
The SBA’s Offce of Advocacy, the
“small business watchdog” of the
government, examines the role and
status of small business in the economy
and independently represents the views
of small business to federal agencies,
Congress, the president and federal
appellate courts as friends of the court.
The advocacy offce compiles and
interprets statistics on small business
and is the primary entity within the
federal government to disseminate
small business data.
Headed by the chief counsel for
advocacy, the offce also funds outside
research of small business issues
and produces numerous publications
to inform policy makers about the
important role of small businesses
in the economy and the impact
of government policies on small
businesses. In addition, the offce
monitors federal agency compliance
with the Regulatory Flexibility Act
– the law that requires agencies to
analyze the impact of their proposed
regulations on small entities (including
small businesses, small governmental
jurisdictions and small nonproft
organizations), and consider regulatory
alternatives that minimize the economic
burden on small entities.
Advocacy’s mission is enhanced by
a team of regional advocates, located
in the SBA’s 10 regions. They are
Advocacy’s direct link to small business
owners, state and local government
entities, and organizations that
support the interests of small entities.
The regional advocates help identify
regulatory concerns of small business
by monitoring the impact of federal and
state policies at the grassroots level.
Learn more about the Offce of
Advocacy at www.sba.gov/advocacy.
OFFICE OF THE NATIONAL
OMBUDSMAN:
Bringing Fair Regulatory Enforcement
to America’s Small Businesses
The National Ombudsman has helped
thousands of small businesses save
time and money by resolving diffcult
regulatory compliance and enforcement
issues. As part of President Obama’s
mandate to promote a level playing feld
for small business, we work directly
with federal regulators to facilitate
practical and timely resolutions of
Regulatory Enforcement Fairness (REF)
matters impacting small businesses.
The National Ombudsman oversees
fair enforcement of small business
regulation by:
• Providing small business owners
a confdential way to report and
resolve federal REF problems, like
excessive enforcement action or
disproportionate fnes
• Escalating small business concerns
to federal agencies for fairness
review & resolution
• Grading federal agencies on their
small business policies and practices
Small businesses can connect with the
National Ombudsman online at
sba.gov/ombudsman, in-person,
or through a national network of
Regulatory Fairness Board Members.
The National Ombudsman meets
with small business owners around
the country at listening sessions and
regulatory fairness dialogues in all ten
SBA Regions. These outreach events
provide critical, real-time input from
the small business community on REF
issues impacting small business growth
and help federal regulators better
understand how government can best
support small business success.
Regional Regulatory Fairness Boards
in each of SBA’s 10 regions promote
regulatory fairness by alerting federal
regulators to important REF issues such
as unintended consequences of a new
rule or regulation. These Boards, each
made up of fve small business owners,
also help raise awareness in their
communities about resources available
to small businesses through the SBA
and the National Ombudsman.
Every year, the National Ombudsman
reports to Congress its fndings on the
impact of the policies and practices of
every federal agency that touches small
business.
To learn more about how the National
Ombudsman can help your small
business, or to confdentially report
a REF issue, call 888-REG-FAIR
(888-734-3247) or complete the simple
one-page form at sba.gov/ombudsman/
comment.
ADVOCACY AND OMBUDSMAN
Watching Out for the Interests of Small Businesses
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ven if you are running a
small home-based business,
you will have to comply
with many local, state and
federal regulations. Avoid
the temptation to ignore regulatory
details. Doing so may avert some red
tape in the short term, but could be
an obstacle as your business grows.
Taking the time to research the
applicable regulations is as important
as knowing your market. Bear in mind
that regulations vary by industry. If
you’re in the food-service business,
for example, you will have to deal
with the health department. If you
use chemical solvents, you will have
environmental compliances to meet.
Carefully investigate the regulations
that affect your industry. Being
out of compliance could leave you
unprotected legally, lead to expensive
penalties and jeopardize your
business.
BUSINESS LICENSES
There are many types of licenses,
both state and local as well as
professional. Depending on what you
do and where you plan to operate,
your business may be required to
have various state and/or municipal
licenses, certifcates or permits.
Licenses are typically administered
by a variety of state and local
departments. Consult your state or
local government for assistance.
Colorado Department of Regulatory
Agencies (DORA)
Many professions and occupations
in Colorado are licensed by DORA.
Examples include plumbers,
electricians, hairstylists, real estate
brokers, CPAs, counselors, investment
advisors, doctors, chiropractors, and
veterinarians. For a complete list of
professionals and occupations that
must be licensed to do business in
Colorado visit www.dora.state.co.us.
Colorado Department of Agriculture
Almost all food processing and/or
sales in Colorado are regulated for
safety purposes. This includes items
that may be sold through a home-
based business, at farmers markets,
or fea markets. Restaurant health
inspections are completed by your
local county health department. For
more information on the processing
or sale of food items – and assistance
in developing your market or for
exporting – contact the CDA at
303-869-9000 or visit www.colorado.gov/
agmain.
Registering Your Business Name
Colorado does not have a general
business license. However, the
business trade name is required to
be registered with the Secretary of
State’s offce. A business name must
“be distinguishable on the records
of the Secretary of State” from other
business names and trademarks
previously registered. All fling must
be done on line.
Colorado Secretary of State
1700 Broadway, Ste. 200
Denver, CO 80290
303-894-2200
www.sos.state.co.us
FICTITIOUS BUSINESS NAME
Search to determine if the name
of your proposed business is already
in use. If it is not used, register the
name to protect your business. For
more information, contact the county
clerk’s offce in the county where
your business is based. If you are a
corporation, you’ll need to check with
the state.
BUSINESS INSURANCE
Like home insurance, business
insurance protects your business
against fre, theft and other losses.
Contact your insurance agent or
broker. It is prudent for any business
to purchase a number of basic types
of insurance. Some types of coverage
are required by law, others simply
make good business sense. The types of
insurance listed below are among the
most commonly used and are merely a
starting point for evaluating the needs
of your business.
Liability Insurance – Businesses
may incur various forms of liability
in conducting their normal activities.
One of the most common types is
product liability, which may be
incurred when a customer suffers
harm from using the product. There
are many other types of liability,
which are frequently related to specifc
industries. Liability law is constantly
changing. An analysis of your liability
insurance needs by a competent
professional is vital in determining
an adequate and appropriate level of
protection for your business.
Property – There are many different
types of property insurance and levels
of coverage available. It is important
to determine the property insurance
you need to ensure the continuation
of your business and the level of
insurance you need to replace or
rebuild. You should also understand
ADDITIONAL RESOURCES
Taking Care of Startup Logistics
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the terms of the insurance, including
any limitations or waivers of coverage.
Business Interruption – While
property insurance may pay enough
to replace damaged or destroyed
equipment or buildings, how will you
pay costs such as taxes, utilities and
other continuing expenses during the
period between when the damage
occurs and when the property is
replaced? Business Interruption (or
“business income”) insurance can
provide suffcient funds to pay your
fxed expenses during a period of time
when your business is not operational.
“Key Man” – If you (and/or any
other individual) are so critical to
the operation of your business that it
cannot continue in the event of your
illness or death, you should consider
“key man” insurance. This type of
policy is frequently required by banks
or government loan programs. It also
can be used to provide continuity
of operations during a period of
ownership transition caused by the
death, incapacitation or absence due
to a Title 10 military activation of an
owner or other “key” employee.
Automobile – It is obvious that
a vehicle owned by your business
should be insured for both liability
and replacement purposes. What is
less obvious is that you may need
special insurance (called “non-owned
automobile coverage”) if you use your
personal vehicle on company business.
This policy covers the business’
liability for any damage which may
result from such usage.
Offcer and Director – Under most
state laws, offcers and directors of a
corporation may become personally
liable for their actions on behalf of the
company. This type of policy covers
this liability.
Home Offce – If you are
establishing an offce in your home,
it is a good idea to contact your
homeowners’ insurance company to
update your policy to include coverage
for offce equipment. This coverage
is not automatically included in a
standard homeowner’s policy.
TAXES
Taxes are an important and complex
aspect of owning and operating a
successful business. Your accountant,
payroll person, or tax adviser may be
very knowledgeable, but there are still
many facets of tax law that you should
know. The Internal Revenue Service is
a great source for tax information.
Small Business/Self-Employed Tax
Center: www.irs.gov/Businesses/Small-
Businesses-&-Self-Employed.
When you are running a business,
you don’t need to be a tax expert.
However, you do need to know some
tax basics. The IRS Small Business/
Self-Employed Tax Center gives you
the information you need to stay tax
compliant so your business can thrive.
For Small Business Forms and
Publications visit: www.irs.gov/
Businesses/Small-Businesses-&-Self-
Employed/Small-Business-Forms-and-
Publications.
FEDERAL PAYROLL TAX
(EIN NUMBERS)
An Employer Identifcation Number
(EIN), also known as a Federal
Employer Identifcation Number
(FEIN), is used to identify a business
entity. Generally, businesses need an
EIN to pay federal withholding tax.
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You may apply for an EIN in various
ways, one of which is to apply online
at www.irs.gov/Businesses/Small-
Businesses-&-Self-Employed/Employer-
ID-Numbers-EINs. This is a free service
offered by the Internal Revenue
Service.
Call 800-829-1040 if you have
questions. You should check with your
state to determine if you need a state
number or charter.
EMPLOYEE/EMPLOYER ISSUES
Colorado Department of Labor and
Employment
Division of Workers Compensation
633 17th St., Ste. 400
Denver, CO 80202
303-318-8700
Colorado Department of Labor and
Employment
Unemployment Insurance Bene?ts
303-318-9100 or 800-480-8299
www.colorado.gov/cdle/ui
U.S. Department of Labor
DOL Colorado District Of?ce
Wage and Hour Division
1999 Broadway, Ste. 710
Denver, CO 80202
720-264-3250
Bureau of Immigration and Customs
Enforcement
Employer is required to complete and
maintain a Form I-9, employment eligibility
veri?cation for each employee. Visit the web
site at: www.uscis.gov/i-9
Of?ce of Special Counsel for Immigration
Related Unfair Employment Practices
Employer Hotline: 800-255-8155
www.justice.gov/crt/about/osc/
United States Immigration and
Customs Enforcement
12445 E. Caley Ave.
Centennial, CO 80111
720-873-2899
FEDERAL
SELF-EMPLOYMENT TAX
Every employee must pay Social
Security and Medicare taxes. If you
are self-employed, your contributions
are made through the self-employment
tax.
The IRS has publications, counselors
and workshops available to help you
sort it out. For more information,
contact the IRS at 800-829-1040 or
www.irs.gov.
SALES TAX
EXEMPTION CERTIFICATE
If you plan to sell products, you
will need a Sales Tax Exemption
Certifcate. It allows you to purchase
inventory, or materials, which will
become part of the product you sell,
from suppliers without paying taxes.
It requires you to charge sales tax
to your customers, which you are
responsible for remitting to the
state. You will have to pay penalties
if it is found that you should have
been taxing your products and now
owe back taxes to the state. For
information on sales tax issues,
contact your state government or
contact the Colorado Department of
Revenue Taxation Division at
303-238-7378.
FEDERAL INCOME TAX
Like the state income tax, the method
of paying federal income taxes depends
upon your legal form of business.
Sole Proprietorship: You must fle
IRS Federal Form Schedule C along
with your personal Federal Income
Tax return (Form 1040) and any other
applicable forms pertaining to gains or
losses in your business activity.
Partnership: You must fle a Federal
Partnership return (Form 1065). This
is merely informational to show gross
and net earnings of proft and loss. Also,
each partner must report his share of
partnership earnings on his individual
Form 1040 based on the information
from the K-1 fled with the Form 1065.
Corporation: You must fle a
Federal Corporation Income Tax
return (Form 1120). You will also
be required to report your earnings
from the corporation including salary
and other income such as dividends
on your personal federal income tax
return (Form 1040). Go to www.irs.
gov for additional Information on fling
business related tax returns.
FEDERAL PAYROLL TAX
Federal Withholding Tax: Any
business employing a person must
register with the IRS and acquire an
EIN and pay federal withholding tax at
least quarterly. File Form SS-4 with the
IRS to obtain your number and required
tax forms. Call 800-829-3676 or
800-829-1040 if you have questions.
IRS WEB PRODUCTS
FOR SMALL BUSINESSES
For the most timely and up-to-date
tax information, go to www.irs.gov.
VIRTUAL SMALL BUSINESS
WORKSHOP
www.irs.gov/Businesses/Small-Businesses-
&-Self-Employed/Small-Business-Self-
Employed-Virtual-Small-Business-Tax-
Workshop
The Virtual Small Business Tax
Workshop is the frst of a series of
video products designed exclusively
for small business taxpayers.
This workshop helps business
owners understand federal tax
obligations. The Virtual Small
Business Workshop is available on
CD at www.irs.gov/businesses/small/
article/0,,id=101169,00.html if you
are unable to attend a workshop in
person. Small business workshops are
designed to help the small business
owner understand and fulfll their
federal tax responsibilities. Workshops
are sponsored and presented by
IRS partners who are federal tax
specialists.
Workshop topics vary from a
general overview of taxes to more
specifc topics such as recordkeeping
and retirement plans. Although
most are free, some workshops have
fees associated with them. Fees
for a workshop are charged by the
sponsoring organization, not the IRS.
The IRS’s Virtual Small Business
Tax Workshop is an interactive
resource to help small business owners
learn about their federal tax rights
and responsibilities. This educational
product, available online and on CD
consists of nine stand-alone lessons
that can be selected and viewed in
any sequence. A bookmark feature
makes it possible to leave and return
to a specifc point within the lesson.
Users also have access to a list of
useful online references that enhance
the learning experience by allowing
them to view references and the video
lessons simultaneously.
The Tax Calendar for
Small Businesses and Self-
Employed (Publication 1518)
www.irs.gov/businesses/small/
article/0,,id=101169,00.html .html
contains useful information on general
business taxes, IRS and SSA customer
assistance, electronic fling and paying
options, retirement plans, business
publications and forms, common tax
fling dates, and federal legal holidays.
SOCIAL SECURITY CARDS
All employees must have a Social
Security number and card. It must be
signed by its owner, and you should
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always ask to see and personally record
the Social Security number. Failure to
do so may cause your employee to lose
benefts and considerable trouble for
yourself in back tracking to uncover the
error.
Each payday, your employees must
receive a statement from you telling
them what deductions were made
and how many dollars were taken out
for each legal purpose. This can be
presented in a variety of ways, including
on the check as a detachable portion
or in the form of an envelope with the
items printed and spaces for dollar
deductions to be flled in.
EMPLOYEE CONSIDERATIONS
Taxes
If you have any employees, including
offcers of a corporation but not the sole
proprietor or partners, you must make
periodic payments towards, and/or fle
quarterly reports about payroll taxes
and other mandatory deductions. You
may contact these government agencies
for information, assistance and forms.
Social Security Administration
800-772-1213
www.ssa.gov
Social Security’s Business Services
Online
The Social Security Administration
now provides free electronic services
online at www.socialsecurity.gov/
employer/. Once registered for Business
Services Online, business owners or
their authorized representative can:
• fle W-2s online; and
• verify Social Security numbers
through the Social Security
Number Verifcation Service,
used for all employees prior to
preparing and submitting Forms
W-2.
Federal Withholding
U.S. Internal Revenue Service
800-829-1040
www.irs.gov
Affordable Care Act
For general information about the
ACA go to www.healthcare.gov.
Health Insurance
Compare plans in your area at
www.healthcare.gov.
Colorado’s Own Health Insurance
Marketplace
Connect for Health Colorado is a
marketplace that helps individuals,
families and small employers across
Colorado purchase health insurance and
apply for new federal fnancial
assistance to reduce costs. In addition
to the shopping website, Connect for
Health Colorado offers a statewide
customer support network of Customer
Service Center Representatives, Health
Coverage Guides and licensed agents/
brokers to help Coloradans fnd the best
health plan for their needs. Connect
for Health Colorado is the only place
where Coloradans can apply for advance
premium tax credits and cost-sharing
reductions to help pay for commercial
insurance coverage.
For more information about health
insurance in Colorado go to
www.connectforhealthco.com.
Unemployment and Worker’s
Compensation Insurance
If you hire employees you may be
required to provide unemployment
or workers’ compensation insurance.
For more information on workers
compensation in Colorado go to
https://www.colorado.gov/paci?c/cdle/dwc.
BUSINESS ORGANIZATION:
Choosing Your Business Structure
There are many forms of legal
structure you may choose for your
business. Each legal structure offers
organizational options with different
tax and liability issues. We suggest
you research each legal structure
thoroughly and consult a tax
accountant and/or attorney prior to
making your decision.
The most common organizational
structures are sole proprietorships,
general and limited partnerships and
limited liability companies.
Each structure offers unique tax and
liability benefts. If you’re uncertain
which business format is right for you,
you may want to discuss options with a
business counselor or attorney.
Sole Proprietorship
One person operating a business as
an individual is a sole proprietorship.
It’s the most common form of business
organization. Profts are taxed as
income to the owner personally. The
personal tax rate is usually lower than
the corporate tax rate. The owner
has complete control of the business,
but faces unlimited liability for its
debts. There is very little government
regulation or reporting required with
this business structure.
General Partnership
A partnership exists when two
or more persons join together in
the operation and management
of a business. Partnerships are
subject to relatively little regulation
and are fairly easy to establish. A
formal partnership agreement is
recommended to address potential
conficts such as: who will be
responsible for performing each
task; what, if any, consultation is
needed between partners before
major decisions, and what happens
when a partner dies. Under a general
partnership each partner is liable for
all debts of the business. Profts are
taxed as income to the partners based
on their ownership percentage.
Limited Partnership
Like a general partnership, a
limited partnership is established by
an agreement between two or more
persons. However, there are two types
of partners.
• A general partner has greater
control in some aspects of the
partnership. For example, only
a general partner can decide to
dissolve the partnership. General
partners have no limits on the
dividends they can receive from
proft so they incur unlimited
liability.
• Limited partners can only
receive a share of profts based
on the proportional amount of
their investment, and liability is
similarly limited in proportion to
their investment.
LLCs and LLPs
The limited liability company
or partnership is a relatively
new business form. It combines
selected corporate and partnership
characteristics while still maintaining
status as a legal entity distinct from
its owners. As a separate entity it can
acquire assets, incur liabilities and
conduct business. It limits liability
for the owners. The limited liability
partnership is similar to the LLC, but
it is for professional organizations.
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Employee Insurance
If you hire employees you may be
required to provide unemployment or
workers’ compensation insurance.
WORKPLACE DISABILITY
PROGRAMS
Americans with Disabilities Act
(ADA): For assistance with the ADA,
call 800-669-3362 or visit www.ada.gov.
U.S. CITIZENSHIP AND
IMMIGRATION SERVICES
The Federal Immigration Reform and
Control Act of 1986 requires employers
to verify employment eligibility of
new employees. The law obligates
an employer to process Employment
Eligibility Verifcation Form I-9. The
U.S. Citizenship and Immigration
Services Offce of Business Liaison
offers a selection of information
bulletins and live assistance through
the Employer Hotline. For forms call
800-870-3676, for the Employer Hotline
call 800-357-2099.
E-Verify: Employment Eligibility
Veri?cation
E-Verify, operated by the Department
of Homeland Security in partnership
with the Social Security Administration,
is the best — and quickest — way for
employers to determine the employment
eligibility of new hires. It is a safe,
simple, and secure Internet-based
system that electronically verifes
the Social Security number and
employment eligibility information
reported on Form I-9. E-Verify is
voluntary in most states and there is no
charge to use it.
If you are an employer or employee
and would like more information about
the E-Verify program, please visit
www.dhs.gov/E-Verify or contact
Customer Support staff: 1-888-464-4218
Monday – Friday 8 a.m. – 5 p.m.
E-mail: [email protected]
SAFETY AND HEALTH
REGULATIONS
All businesses with employees
are required to comply with state
and federal regulations regarding
the protection of employees. The
Occupational Safety and Health
Administration provides information on
the specifc health and safety standards
adopted by the U.S. Department of
Labor. Call 1-800-321-6742 or visit
www.osha.gov.
Occupational and Safety Health
Administration (OSHA)
1391 Speer Blvd. (In general, covers
businesses north of I-70)
Denver, CO
303-844-5285
Federal regulations protect the safety and
health of employees.
If outside metro Denver, visit the web site
at: www.osha.gov
Englewood Area Of?ce (In general,
covers businesses south of I-70)
7935 East Prentice Ave, Suite 209
Englewood, CO 80111
303-843-4500
BUILDING CODES,
PERMITS AND ZONING
It is important to consider zoning
regulations when choosing a site
for your business. You may not be
permitted to conduct business out of
your home or engage in industrial
activity in a retail district. Contact
the business license offce in the city or
town where the business is located.
BAR CODING
Many stores require bar coding on
packaged products. Many industrial
and manufacturing companies use bar
coding to identify items they receive and
ship. There are several companies that
can assist businesses with bar-coding
needs. You may want to talk with an
SBDC, SCORE or WBC counselor for
more information.
Federal Registration of Trademarks
and Copyrights
Trademarks or service marks are
words, phrases, symbols, designs or
combinations thereof that identify
and distinguish the source of goods.
Trademarks may be registered at both
the state and federal level. To register a
federal trademark, contact:
U.S. Patent and Trademark Rocky
Mountain Of?ce
1961 Stout St.
Denver, CO 80294
303-297-4600
http://www.uspto.gov/about-us/uspto-
locations/rocky-mountain-regional-of?ce-
colorado.html
U.S. Patent and Trademark Of?ce
P.O. Box 1450
Alexandria, VA 22313-1450
800-786-9199
www.uspto.gov/
Trademark Information Hotline
703-308-9000
STATE REGISTRATION
OF A TRADEMARK
Trademarks and service marks may
be registered in a state.
Caution: Federally registered
trademarks may confict with and
supersede state registered business and
product names.
Patents
A patent is the grant of a property
right to the inventor by the U.S. Patent
and Trademark Offce. It provides the
owner with the right to exclude others
from making, using, offering for sale or
selling the patented item in the United
States.
Additional information is provided in
the publications, General Information
Concerning Patents and other
publications distributed through the
U.S. Patent and Trademark Offce. For
more information, contact the:
U.S. Patent and Trademark Of?ce
800-786-9199 • www.uspto.gov
Copyrights
Copyrights protect original works of
authorship including literary, dramatic,
musical and artistic, and certain other
intellectual works. Copyrights do
not protect facts, ideas and systems,
although it may protect the way these
things are expressed. For general
information contact:
U.S. Copyright Of?ce
U.S. Library of Congress
James Madison Memorial Building
Washington, DC 20559
202-707-9100 - Order Line
202-707-3000 - Information Line
www.copyright.gov
OTHER SOURCES OF
ASSISTANCE
Colorado is rich with history, cultural
activities and events. Colorado was the
38th state of the Union on August 1,
1876. It was called the “Centennial State”
in honor of the one-hundredth year of the
Declaration of Independence. Origin of
State’s Name is Spanish for “Colored Red”.
It has 104,247 square miles (8th largest
state). There are 64 counties and about
180,000 self-employed workers.
Many Indian tribes roamed Colorado
and contributed to the state’s history.
The Apache, Cheyenne, Ute, Arapaho,
Comanche, and Kiowa were important
plains tribes. The Apaches followed the
base of the Rocky Mountains from their
homeland in Canada to their residences on
the eastern plains. The Navajo eventually
settled in southern Colorado. After the
Apaches moved south, the Cheyenne and
Arapaho roamed the state’s north eastern
plains while the Comanche and Kiowa
lived in the south eastern plains. The
Ute inhabited the mountains and river
valleys of western Colorado. Many Native
Americans have remained in Colorado,
especially members of the Ute tribe. Indian
reservations exist today in the southwestern
corner of the state.
Major Industries &
Employers
Colorado is the major hub for business
and industry in the growing Rocky
Mountain region. A wide-range of growing
and established industries ?ourishes
in Colorado. Their prosperity is due, in
part, to the strong partnerships between
the public and private sector, a highly
educated workforce and one of the
best business economies in the country.
From telecom to cable, aerospace to
agriculture, biotechnology to research,
Colorado provides a healthy mix of viable
industries and educated employees, offering
relocating and expanding companies
everything they need to grow and thrive.
Colorado has a diverse economic base. The
state is not dependent on any single sector,
but has a strong core of businesses in a
variety of high-tech and traditional sectors.
Colorado’s strength in mature high tech
industries such as telecommunications,
software development, and high tech
manufacturing has resulted in the highest
concentration among all 50 states of high
tech workers. Emerging industries such as
biotech, photonics, homeland security and
aerospace, nanotech and renewable energy
are gaining momentum.
Colorado’s major industries include:
• Aerospace & Satellite
• Agriculture
• Bioscience
• Emerging Technologies
• Energy, Mining and Natural Resources
• Financial Services
• Information Technology
• Manufacturing
• Telecommunications and Digital Media
MISCELLANEOUS
INFORMATION
This section includes resource information
regarding ADA requirements, copyright
laws, trademarks, patents, exports,
demographic data, health insurance,
environmental and health requirements,
food safety, etc.
GOVERNMENT CONTRACTING ASSISTANCE
- FEDERAL, STATE AND LOCAL
COLORADO PROCUREMENT TECHNICAL
ASSISTANCE CENTER (PTAC)
www.coloradoptac.org
719-434-3470
LEGAL
Legal information can be found on
www.BusinessLaw.gov.
CONNECT2DOT
A Colorado SBDC program funded by the
Colorado Department of Transportation to
help small businesses in the transportation
industry become more competitive and
successful in bidding and contracting
with CDOT and other local transportation
agencies. Free consulting, training and
networking events.
720-624-6728
[email protected]
www.connect2dot.org
U.S. ARCHITECTURAL & TRANSPORTATION
BARRIERS COMPLIANCE BOARD
(USACCESS BOARD):
Provides minimum guidelines for
architectural requirements under the
Americans with Disabilities Act
For technical assistance call: 800-872-3353
www.access-board.gov
TRADEMARKS:
Colorado Secretary of State
303-894-2200
www.sos.state.co.us
U.S. PATENT AND TRADEMARK OFFICE
800-786-9199
www.uspto.gov
COLORADO DEPARTMENT OF
AGRICULTURE
303-239-4100
MARKETS DIVISION
700 Kipling St., Ste. 4000
Lakewood, CO 80215-5894
[email protected]
Specializes in foreign and domestic market
development and technical assistance for
Colorado agricultural products.
COLORADO DEPARTMENT OF PUBLIC
HEALTH AND ENVIRONMENT
4300 Cherry Creek Dr. S.
Denver, CO 80246-1530
303-692-2000
www.cdphe.state.co.us
FOOD AND DRUG ADMINISTRATION (FDA):
Denver Federal Center
Building 20
W 6th Ave & Kipling
Lakewood, CO
214-253-5252
EXPORT/IMPORT:
COLORADO OFFICE OF ECONOMIC
DEVELOPMENT & INTERNATIONAL TRADE
1625 Broadway, Ste. 2700
Denver, CO 80202
303-892-3840 • 303-892-3848 Fax
www.colorado.gov/cs/Satellite/OEDIT/
OEDIT/1162927366334
WORLD TRADE CENTER EDUCATIONAL
SERVICES
1625 Broadway, Ste. 680
Denver, Colorado 80202 USA
303-592-5760
[email protected]
U.S. EXPORT ASSISTANCE CENTER
1625 Broadway, Ste. 680
Denver, CO 80202
303-844-6623
THE DENVER PUBLIC LIBRARY
10 W. 14th Ave. Pkwy.
Denver, CO 80202
720-865-1111
COLORADO DEMOGRAPHY OFFICE
1313 Sherman St.
Denver, CO 80203
303-866-2771
[email protected]
COLORADO DIVISION OF INSURANCE
1560 Broadway
Denver, CO 80202
303-894-7499
H. INCUBATORS
This program is designed to encourage
business start-ups. They provide workshops,
multi-tenant of?ce space, shared of?ce
services, and improved access to capital.
Each center provides services to a very
speci?c clientele. They do this at a low cost
and with a good return on investment to
investors.
COLORADO SPRINGS TECHNOLOGY
INCUBATOR
3595 E. Fountain Blvd.
Colorado Springs, CO 80910
719-685-7877
www.cstionline.org
WESTERN COLORADO BUSINESS
DEVELOPMENT CORP.
2591 Legacy Way
Grand Junction, CO 81503
970-243-5242
www.gjincubator.org/
FITZSIMONS BIOBUSINESS PARTNERS
12635 E. Montview Blvd.
Aurora, CO 80010
720-859-4100
ROCKY MOUNTAIN INNOSPHERE
320 E Vine Dr. #101
Ft Collins, CO 80524
970-221-1301
Colorado Chambers of
Commerce (CoC):
AKRON CoC
245 Main St.
Akron, CO 80720
970-345-2624
ALAMOSA CoC
610 State St.
Alamosa, CO 81101
719-589-3681
ANTONITO CoC
P.O. Box 427
Antonito, CO 81120-0427
719-376-2277
ARVADA CoC
7305 Grandview Ave.
Arvada, CO 80002
303-424-0313
ASIAN CoC
924 Colfax Ave.
Denver, CO 80204
303-595-9737
ASPEN CHAMBER RESORT ASSOCIATION
425 Rio Grande Pl.
Aspen, CO 81611
970-925-1940
[email protected]
AURORA CoC
14305 E. Alameda Ave., Ste. 300
Aurora, CO 80012
303-344-1500
[email protected]
BASALT CoC
101 Midland Ave.
Basalt, CO 81621
970-927-4031
[email protected]
BAYFIELD CoC
P.O. Box 7
Bay?eld, CO 81122
970-884-7372
[email protected]
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BENNETT OR I-70 CORRIDOR CoC
401 S. First St.
Bennett, CO 80102
303-644-4607
[email protected]
BERTHOUD CoC
428 Mountain Ave.
Berthoud, CO 81513
970-532-4200
[email protected]
BLACK CoC
1410 Grant St., Ste. B-104
Denver, CO 80203
303-831-0720
[email protected]
BOULDER CoC
2440 Pearl St.
Boulder, CO 80302
303-442-1044
[email protected]
BRECKENRIDGE RESORT CoC
311 S. Ridge
Breckenridge, CO 80424
970-453-2913
[email protected]
BRIGHTON CoC
22 S. 4th Ave., Ste. 205
Brighton, CO 80601
303-659-0223
[email protected]
BROOMFIELD CoC
2095 W. 6th Ave., Ste. 109
Broom?eld, CO 80020
303-466-1775
info@broom?eldchamber.com
BRUSH AREA CoC
218 Clayton St.
Brush, CO 80723-2104
970-842-2666
[email protected]
BUENA VISTA AREA CoC
343 Hwy. 24 S.
Buena Vista, CO 81211
719-395-6612
[email protected]
BURLINGTON CoC
P.O. Box 62
Burlington, CO 80807
719-346-8070
CANON CITY CoC
403 Royal Gorge Blvd.
Canon City, CO 81212
800-876-7922
[email protected]
CARBONDALE COMMUNITY CoC
520 3rd St., Ste. 3
Carbondale, CO 81623
970-963-1890
[email protected]
CASTLE ROCK CoC
420 Jerry St.
Castle Rock, CO 80104
303-688-4597 or 866-441-8508
[email protected]
CEDAREDGE AREA CoC
245 W. Main St.
Cedaredge, CO 81413-0278
970-856-6961
CHAMBER OF THE AMERICAS
720 Kipling St.
Denver, CO 80215
303-462-1275
[email protected]
CHERRY CREEK CoC
P.O. Box 6449
Denver, CO 80206
303-388-6022
[email protected]
COLLBRAN CoC
P.O. Box 143
Collbran, CO 81624-0143
970-314-4999
DENVER GAY AND LESBIAN CoC
P.O. Box 1678
Denver, CO 80201
720-556-0682
COLORADO SPRINGS BLACK CoC
905 Aviation Way, Ste. 170
Colorado Springs, CO 80916
719-487-9179
COLORADO SPRINGS HISPANIC CHAMBER
912 N. Circle Dr., #203
Colorado Springs, CO 80909
719-635-5001
[email protected]
COLORADO SPRINGS KOREAN CoC
1740 Shasta Dr.
Colorado Springs, CO 80910
719-637-4909
[email protected]
COLORADO WOMEN’S CoC
1350 17th St., #100
Denver, CO 80202
303-458-0220
[email protected]
CONIFER CoC
25997 Conifer Rd.
Conifer, CO 80433
303-838-5711
[email protected]
CORTEZ AREA CoC
928 E. Main St.
Cortez, CO 81321
970-565-3414
[email protected]
CRAIG CoC
360 E. Victory Way
Craig, CO 81625
970-824-5689
[email protected]
CRAWFORD AREA CoC
P.O. Box 22
Crawford, CO 81415
970-921-4000 • 970-921-4725 F
[email protected]
CREEDE-MINERAL COUNTY CoC
904 Main St.
Creede, CO 81130
719-658-2374 or 800-327-2102
719-658-2717 F
[email protected]
CRESTED BUTTE/MT. CRESTED BUTTE CoC
601 Elk Ave.
Crested Butte, CO 81224-1288
970-349-6438 or 800-545-4505
[email protected]
CUSTER COUNTY CoC INC.
110 Rosita Ave.
Westcliffe, CO 81252
719-783-9163
[email protected]
DELTA AREA CoC
301 Main St.
Delta, CO 81416
970-874-8616
[email protected]
DENVER HISPANIC CoC
Bernard Valdez Hispanic
Heritage Ctr.
924 W. Colfax Ave.
Denver, CO 80204
303-534-7783
[email protected]
DENVER METRO CoC
1445 Market St.
Denver, CO 80202-1729
303-534-8500
[email protected]
DIVIDE CoC
P.O. Box 101
Divide, CO 80814-0101
719-686-7605
[email protected]
DOLORES CoC
201 Railroad Ave.
Dolores, CO 81323
970-882-4018
[email protected]
DOWNTOWN DENVER PARTNERSHIP
511 16th St., #200
Denver, CO 80202
303-534-6161
[email protected]
DURANGO AREA CoC
111 S. Camino del Rio
Durango, CO 81302-2587
970-247-0312
[email protected]
EADS CoC
P.O. Box 163
Eads, CO 81036-0163
719-438-5590
[email protected]
EAGLE VALLEY CoC
P.O. Box 964
Eagle, CO 81631
970-306-2262
[email protected]
ELIZABETH AREA CoC
166 Main St., Ste. E
Elizabeth, CO 80107
303-646-4287
[email protected]
ENGLEWOOD CoC
3501 S. Broadway
Engelwood, CO 80110
303-789-4473 • 303-789-0098 F
[email protected]
ERIE CoC
235 Wells St.
Erie, CO 80516
303-828-3440
[email protected]
ESTES PARK CoC
140 Moraine Ave.
Estes Park, CO 80517
970-586-4431
EVANS AREA CoC
2986 W. 29th St.
Greeley, CO 80631
970-330-4204
[email protected]
EVERGREEN AREA CoC
30480 Stagecoach Blvd.
Evergreen, CO 80439
303-674-3412
[email protected]
FLORENCE CoC
117 S. Pikes Peak Ave.
Florence, CO 81226-0145
719-784-3544
[email protected]
FORT COLLINS AREA CoC
225 S. Meldrom
Fort Collins, CO 80521
970-482-3746
[email protected]
FORT LUPTON CoC
321 Denver Ave.
Fort Lupton, CO 80621
303-857-4474 • 303-857-4433 F
[email protected]
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FORT MORGAN AREA CoC
300 Main St./P.O. Box 971
Fort Morgan, CO 80701
970-867-6702
fortmorganchamber@?ci.net
FOUNTAIN CoC
410 S. Santa Fe Ave., #100
Fountain, CO 80817
719-382-3190
[email protected]
FRUITA AREA CoC
432 E. Aspen Ave.
Fruita, CO 81521
970-858-3894
[email protected]
GLENWOOD SPRINGS CHAMBER RESORT
ASSOCIATION
802 Grand Ave.
Glenwood Springs, CO 81601
970-945-6589
[email protected]
GOLDEN CoC
1010 Washington St.
Golden, CO 80402
303-279-3113
[email protected]
GRANBY CoC
475 E. Agate Ave.
Granby, CO 80446
970-887-2311
[email protected]
GRAND JUNCTION AREA CoC
360 Grand Ave.
Grand Junction, CO 81501
970-242-3214
[email protected]
GRAND LAKE AREA CoC
P.O. Box 429
Grand Lake, CO 80447
970-627-3402
[email protected]
GREATER COLORADO SPRINGS CoC
6 S. Tejon
Colorado Springs, CO 80903
719-635-1551
[email protected]
GREELEY/WELD CoC
902 7th Ave.
Greeley, CO 80631
970-352-3566
[email protected]
GUNNISON COUNTY CoC
500 E. Tomichi
Gunnison, CO 81230-0036
970-641-1501
[email protected]
HAXTUN CoC
145 S. Colorado
Haxtun, CO 80731
970-774-6104
[email protected]
HAYDEN CoC
252 W. Jefferson
Hayden, CO 81639
970-846-0616
HEART OF THE ROCKIES CoC
406 W. Hwy. 50
Salida, CO 81201
719-539-2068
[email protected]
HIGHLANDS RANCH CoC
300 W. Plaza Dr., #225
Highlands Ranch, CO 80129
303-791-3500
[email protected]
HOLYOKE CoC
212 S. Interocean
Holyoke, CO 80734
970-854-3517
[email protected]
HOTCHKISS COMMUNITY CoC
P.O. Box 158
Hotchkiss, CO 81419
970-872-3226
HUERFANO COUNTY CoC
400 Main St.
Wallsenburg, CO 81089
719-738-1065
[email protected]
IDAHO SPRINGS CoC
P.O. Box 1641
Idaho Springs, CO 80452
303-567-4447
INDIA CoC (NUICC)
700 17th St., Ste. 2000, 20th Fl.
Denver, CO 80202
720-323-3728
[email protected]
JOHNSTOWN-MILLIKEN CoC
26 Rutherford Ave.
Johnstown, CO 80534
970-587-7042
[email protected]
KEENESBURG CoC
P.O. Box 44
Keenesburg, CO 80643
303-732-4009
KERSEY AREA CoC
P.O. Box 397
Kersey, CO 80644
970-330-3099
KREMMLING CoC
203 Park Ave.
Kremmling, CO 80459
970-724-3472
[email protected]
LA JUNTA CoC
110 Sante Fe Ave.
LaJunta, CO 81050
719-384-7411
[email protected]
LA VETA-CUCHARA CoC
P.O. Box 32
La Veta, CO 81055
719-742-3676
[email protected]
LAFAYETTE CoC
1209 S. Public Rd.
Lafayette, CO 80026
303-666-9555
[email protected]
LAKE CITY-HINSDALE COUNTY CoC
800 Gunnison Ave.
Lake City, CO 81235
970-944-2527
[email protected]
LAKEWOOD, WEST CoC
Serving Jefferson County
1667 Cole Blvd., Bldg. 19, Ste. 400
Lakewood, CO 80228-0748
303-233-5555
[email protected]
LAMAR CoC
109 A E. Beech St.
Lamar, CO 81052
719-336-4379
[email protected]
LAS ANIMAS COUNTY CoC
332 Ambassador Thompson Blvd.
Las Animas, CO 81054
719-456-0453
LEADVILLE LAKE COUNTY CoC
809 Harrison Ave.
Leadville, CO 80461
719-486-3900
[email protected]
LIMON CoC
P.O. Box 101
Limon, CO 80828
719-775-9418
LOGAN COUNTY CoC
109 N. Front St.
Sterling, CO 80751
970-522-5070
[email protected]
LONGMONT AREA CoC
528 Main St.
Longmont, CO 8050
303-776-5295
[email protected]
LOUISVILLE CoC
901 Main St.
Louisville, CO 80027
303-666-5747
[email protected]
LOVELAND CoC
5400 Stonecreek Cir.
Loveland, CO 80538
970-667-6311
[email protected]
LYONS CoC
443 Main St.
Lyons, CO 80540
303-823-5215
[email protected]
MANCOS CoC
101 E. Bauer St.
Mancos, CO 81328
970-533-7434
[email protected]
MANITOU SPRINGS CoC
354 Manitou Ave.
Manitou Springs, CO 80829
719-685-5089
[email protected]
MEEKER CoC
710 Market St.
Meeker, CO 81641
970-878-5510
[email protected]
METRO NORTH CoC
14583 Orchard Pkwy., #300
Westminster, CO 80023
303-288-1000
[email protected]
MONTE VISTA CoC
947 1st Ave.
Monte Vista, CO 81144
719-852-2731
[email protected]
MONTROSE ASSOCIATION OF COMMERCE
AND TOURISM
1519 E. Main St.
Montrose, CO 81401-3807
970-249-5000 or 800-923-5515
[email protected]
MONUMENT, TRI-LAKES CoC
300 Hwy. 105
Monument, CO 80132
719-481-3282
[email protected]
NATURITA, NUCLA-NATURITA AREA COC
203 W. Main St.
Naturita, CO 81422-0425
970-865-2350
[email protected]
NEW CASTLE CoC
386 W. Main St., Ste. 101
New Castle, CO 81647
970-984-2897
[email protected]
NORTH PARK CoC
472 Main St.
Walden, CO 80480
970-723-4600
[email protected]
NORWOOD CoC
P.O. Box 116
Norwood, CO 81423-0116
970-327-4928
[email protected]
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ORDWAY, CROWLEY COUNTY CoC
631 Main St.
Ordway, CO 81063
719-267-5225
PAGOSA SPRINGS CoC
402 San Juan St.
Pagosa Springs, CO 81147
970-264-2360
[email protected]
PALISADE CoC
319 Main St.
Palisade, CO 81526-0729
970-464-7458
[email protected]
PAONIA CoC
124 Grand Ave.
Paonia, CO 81428
970-527-3886
[email protected]
PARKER CoC
19590 E. Main St., #100
Parker, CO 80138
303-841-4268
[email protected]
PLATEAU VALLEY CoC
P.O. Box 143
Collbran, CO 81624
970-314-4999
[email protected]
PUEBLO LATINO CoC
215 S. Victoria Ave.
Pueblo, CO 81003
719-542-5513
[email protected]
PUEBLO, GREATER CoC
302 N. Santa Fe Ave.
Pueblo, CO 81002
719-542-1704
[email protected]
RANGELY AREA CoC
209 E. Main St.
Rangely, CO 81648
970-675-8476
[email protected]
RIFLE AREA CoC
200 Lions Park Cir.
Ri?e, CO 81650
970-625-2085
mail@ri?echamber.com
ROCKY FORD CoC
105 Main St.
Rocky Ford, CO 81067
719-254-7483
[email protected]
ROCKY MOUNTAIN INDIAN CoC
924 W. Colfax Ave., Ste. 104F
Denver, CO 80204
303-629-0102
[email protected]
SALIDA, HEART OF THE ROCKIES CoC
See Heart of the Rockies Chamber
SILVERTON CoC
414 Green St.
Silverton, CO 81433-0565
970-387-5654
[email protected]
SNOWMASS VILLAGE RESORT
ASSOCIATION
38 Snowmass Village Upper Mall
Snowmass Village, CO 81615
970-923-2000
[email protected]
SOUTH FORK CoC
29803 W. Hwy. 160
South Fork, CO 81154
719-873-5556
[email protected]
SOUTH METRO CoC
2154 E. Commons Ave., Ste. 342
Centennial, CO 80122
303-795-0142
[email protected]
SOUTHERN COLO WOMEN’S CoC
P.O. Box 49218
Colorado Springs, CO 80906
719-442-2007
[email protected]
STEAMBOAT SPRINGS CHAMBER RESORT
ASSOCIATION
125 Anglers Dr.
Steamboat Springs, CO 80477
970-879-0880
[email protected]
STERLING CoC
P.O. Box 1683
Sterling, CO 80443
970-522-5070
SUMMIT COUNTY CoC
P.O. Box 5450
Frisco, CO 80443
970-668-2051
[email protected]
TELLURIDE CoC
P.O. Box 653
Telluride, CO 81435
800-525-3455
[email protected]
THORNTON, METRO NORTH CoC
2921 W. 120th Ave., Ste. 210
Thornton, CO 80229
303-288-1000
[email protected]
TRINIDAD-LAS ANIMAS COUNTY CoC
See Las Animas County Chamber of
Commerce
VAIL CHAMBER & BUSINESS
ASSOCIATION
241 S. Frontage Rd. E., #2
Vail, CO 81657
970-477-0075
[email protected]
VALLECITO LAKE CoC
17252 County Rd. 501
Bay?eld, CO 81122
970-247-1573
[email protected]
WALSENBURG, HUERFANO COUNTY CoC
See Huerfano County Chamber of
Commerce
WELD CoC
See Greeley Chamber of Commerce
WESTCLIFFE, CUSTER COUNTY
MERCHANTS & COC
P.O. Box 81
Westcliffe, CO 81252-0081
719-783-9163
[email protected]
WINDSOR CoC
421 Main St.
Windsor, CO 80550
970-686-7189
[email protected]
WINTER PARK-FRASER VALLEY CoC
78841 U.S. Hwy. 40/P.O. Box 3236
Winter Park, CO 80482
970-726-4118 • 970-726-9449 F
[email protected]
WOODLAND PARK CoC, GREATER
210 E. Midland Ave.
Woodland Park, CO 80866
719-687-9885
[email protected]
WRAY CoC
110 E. 3rd St.
Wray, CO 80758
970-332-3484
[email protected]
OTHE R ASSI STANCE
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Visit us online: www.sba.gov/co 50 — Colorado Small Business Resource
Visit us online: www.sba.gov/co Colorado Small Business Resource — 51
SBA Lenders
Approved to
Originate 7(a) Loans
5 STAR BANK
7(a) Loans
719-475-7827
ADVANTAGE BANK
7(a) Loans
970-613-1982
ALAMOSA STATE BANK
7(a) Loans
719-589-2564
ALPINE BANK
7(a) Loans, SBA Express
970-945-2424
AMG BANK
7(a) Loans
303-447-8877
ANB
7(a) Loans
303-394-5100
BANK OF BURLINGTON
7(a) Loans
719-346-5376
BANK OF COLORADO
7(a) Loans
970-206-1160
THE BANK OF DENVER
7(a) Loans
303-572-3600
BANK OF ESTES PARK
7(a) Loans
970-586-4485
CACHE BANK & TRUST
7(a) Loans
970-351-8600
CANYON NATIONAL BANK
7(a) Loans, PLP
719-276-9153
CASTLE ROCK BANK
7(a) Loans
303-688-5191
CENTENNIAL BANK
7(a) Loans, SBA Express
303-680-1600
CHAMPIONS BANK
7(a) Loans
303-840-8484
CITIZENS BANK OF PAGOSA
7(a) Loans
970-264-2235
THE CITIZENS BANK OF OURAY
7(a) Loans
970-325-4476
CITYWIDE BANK
7(a) Loans, SBA Express
303-365-3600
COBIZ BANK
7(a) Loans, PLP, SBA Express,
Export Express
303-293-2265
COLLEGIATE PEAKS BANK
7(a) Loans
719-395-2472
THE COLORADO BANK & TRUST
COMPANY OF LA HUNTA
7(a) Loans
719-384-8131
COLORADO EAST BANK & TRUST
7(a) Loans
719-336-5200
COLORADO ENTERPRISE FUND
Community Advantage
303-860-0242
COLORADO LENDING SOURCE
Community Advantage
303-657-0010
COLORADO NATIONAL BANK
7(a) Loans, PLP
970-464-5701
COMMUNITY BANKS
OF COLORADO
7(a) Loans, PLP
720-554-6656
DEL NORTE BANK
7(a) Loans
719-657-3376
DENVER INVESTMENT ADVISORS
LLC
7(a) Loans
303-312-5000
THE EASTERN COLORADO BANK
7(a) Loans
785-852-2000
EVERGREEN NATIONAL BANK
7(a) Loans
303-674-2700
FARMERS SATE BANK OF AULT
7(a) Loans
970-834-2121
FARMERS STATE BANK
OF BRUSH
7(a) Loans
970-842-6101
FARMERS STATE BANK
OF CALHAN
7(a) Loans
719-347-2727
FIRST AMERICAN STATE BANK
7(a) Loans
303-694-6464
FIRST COLORADO NATIONAL
BANK
7(a) Loans, PLP, SBA Express
970-527-4141
FIRST NATIONAL BANK
OF TRINIDAD
7(a) Loans
719-846-9881
THE FIRST NATIONAL BANK
OF DURANGO
7(a) Loans
970-247-3020
THE FIRST NATIONAL BANK
OF FLEMING
7(a) Loans
970-265-2555
THE FIRST NATIONAL BANK
OF HUGO
7(a) Loans
719-743-2415
FIRST NATIONAL BANK
OF ANIMAS
7(a) Loans
719-465-1512
FIRST NATIONAL BANK
OF CORTEZ
7(a) Loans
970-565-3781
FIRST NATIONAL BANK
OF WRAY
7(a) Loans
970-332-4824
FIRST PIONEER NATIONAL BANK
7(a) Loans
970-332-4824
FIRST SOUTHWEST BANK
7(a) Loans
719-587-4200
FIRST STATE BANK
OF COLORADO
7(a) Loans, PLP, SBA Express,
Export Express
970-872-3111
FIRST BANK
7(a) Loans, SBA Express
303-238-9000
FLAT IRONS BANK
7(a) Loans
303-530-4999
SBA PARTI CI PATI NG L E NDE RS
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Top 10 SBA Lenders in FY 2014 Loan Units Loan Volume in $
U.S. BANK NATIONAL ASSOCIATION 249 $38,175,600
WELLS FARGO BANK NATL ASSOC 248 $77,207,800
JPMORGAN CHASE BANK NATL ASSOC 89 $12,783,200
COBIZ BANK 66 $42,100,100
COMPASS BANK 62 $9,643,700
KEYBANK NATIONAL ASSOCIATION 49 $18,224,500
BANK OF THE WEST 37 $19,620,900
WILSHIRE BANK 36 $34,806,500
GUARANTY BK & TR CO 28 $15,136,100
BBCN BANK 22 $25,930,300
For more information on SBA loan guaranty programs or lender contact information please call the
Colorado District Offce at 303-844-2607.
COLORADO DISTRICT OFFICE FISCAL YEAR 2014 STATISTICS
SBA PARTI CI PATI NG L E NDE RS
Visit us online: www.sba.gov/co 52 — Colorado Small Business Resource
FMS BANK
7(a) Loans
970-867-3319
FOWLER STATE BANK
7(a) Loans
719-263-4276
FRONTIER BANK
7(a) Loans
719-336-4351
GRAND MOUNTAIN BANK FSB
7(a) Loans
970-887-1221
GUARANTY BANK & TRUST
COMPANY
7(a) Loans, PLP, SBA Express,
Export Express
303-293-5500
THE GUNNISON BANK AND
TRUST COMPANY
7(a) Loans
970-641-0320
HIGH COUNTRY BANK
7(a) Loans
719-539-2516
HIGH PLAINS BANK
7(a) Loans
719-765-4000
HOME LOAN STATE BANK
7(a) Loans
970-243-6600
HOME STATE BANK
7(a) Loans
970-203-6100
INTEGRITY BANK & TRUST
7(a) Loans
719-484-0077
LEGACY BANK
7(a) Loans
719-829-4811
MANCOS VALLEY BANK
7(a) Loans
970-533-7736
MOUNTAIN VALLEY BANK
7(a) Loans
970-723-8221
MOUNTAIN VIEW BANK
OF COMMERCE
7(a) Loans, PLP, SBA Express
303-243-5400
NATIVE AMERICAN BANK,
NATIONAL ASSOCIATION
7(a) Loans
800-368-8894
NORTH VALLEY BANK
7(a) Loans
303-452-5500
NORTHSTAR BANK OF
COLORADO
7(a) Loans
720-387-3900
PARK STATE BANK & TRUST
7(a) Loans
719-687-9234
PEOPLES NATIONAL BANK
7(a) Loans
800-999-9929
PIKES PEAK NATIONAL BANK
7(a) Loans
719-473-5310
PINE RIVER VALLEY BANK
7(a) Loans
970-884-9583
POINTS WEST COMMUNITY
BANK
7(a) Loans
970-474-3341
PREMIER BANK
7(a) Loans
303-623-8888
THE PUEBLO BANK AND TRUST
COMPANY
7(a) Loans
719-545-1834
REDSTONE BANK
7(a) Loans
720-880-5000
ROCKY MOUNTAIN BANK &
TRUST FLORENCE
7(a) Loans
719-784-6316
SOLERA NATIONAL BANK
7(a) Loans, PLP
303-209-8600
THE STATE BANK
7(a) Loans
719-384-5901
STOCKMENS BANK
7(a) Loans, PLP, SBA Express,
Export Express
719-228-1104
SUMMIT BANK & TRUST
7(a) Loans
303-460-4700
TIMBERLINE BANK
7(a) Loans, PLP, SBA Express,
Export Express
970-683-5560
VALLEY BANK & TRUST
7(a) Loans
303-659-3490
VERUS BANK OF COMMERCE
7(a) Loans, PLP, SBA Express,
Export Express
970-204-1010
WESTERN CAPITAL HOLDINGS,
INC
7(a) Loans
866-997-6775
WRAY STATE BANK
7(a) Loans
970-332-4111
YAMPA VALLEY BANK
7(a) Loans
970-879-2993
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When Teresa Porter took over as the
President and CEO of ISYS Technologies
(ISYS) in 2002 the frm had just two
employees. Today, the business has
grown to more than 200 employees and
subcontractors in 16 locations across
10 states. ISYS Technologies is an
engineering and information technology
services company providing support
to the Federal Government and other
public sector customers. In addition to its
Littleton, CO headquarters, the company
has offces in Colorado Springs, Omaha,
and the National Capital Region.
The company is a Woman-Owned Small
Business that targets its services to
federal, state and local government
customers worldwide. Porter has a 30-year
sales and management background in
the technology industry, which includes
diverse experience managing both
small and large service organizations.
Since joining ISYS Technologies, the
business has grown signifcantly into a
reputable and reliable supplier to the U.S.
government. The frm’s annual revenues
have expanded from less than $1 million
per year to more than $22 million in 2014.
ISYS Technologies provides services in
three core areas: Infrastructure Support
Services/Cyber Security, Engineering
Services, and Military Operations
Support. Their current customers include
the Department of Defense, NASA,
NOAA and other federal, state and local
government entities. In order to support
these organizations, the business employs
eight full-time recruiters who maintain a
pipeline of new employee candidates and
a proprietary database of over 100,000
resumes. They are able to identify, hire
and deploy new employees typically within
2-3 weeks.
Since 2012, Teresa Porter has applied
her guiding principles to maintain a
stable fnancial position in a declining
market. Working with industry partners,
she minimizes risk to ISYS by receiving
advice, counsel and support to develop new
service offerings. Currently, the business
is in a Mentor Protégé relationship
with the Raytheon Company, which is
sponsored by the U.S. Air Force. Through
the Mentor Protégé Program, the Air Force
provides fnancial support to Raytheon
in exchange for mentoring ISYS, which
involves providing
developmental
assistance in
Cyber Security
service offerings.
Porter has established a companywide
commitment to supporting local and
national community organizations. Some
of the programs supported by ISYS
employees include the National Guard and
Reserve, Crawford House for Homeless
Veterans in Colorado Springs, Toys for
Tots, Wounded Warriors and the Denver
Children’s Hospital. In 2014 the company
was given the Patriotic Employer award
from the Offce of the Secretary of Defense
for their work with the National Guard
and Reserve.
In 2010, ISYS earned the distinction as
SBA’s Region VIII Subcontractor of the
Year. The business was named a Top 100
Colorado Women-Owned Business and one
of the Top 500 Woman-Owned Companies
in the nation by DiversityBusiness.
com. Recently, the Denver Business
Journal named it a Top 20 Women-
Owned Company. All of this hard work
culminated in 2015 when Teresa Porter
was named the SBA’s Colorado Small
Business Person of the Year
Colorado District Office
2015 Small Business Person of the Year Winner
S T O R Y
S U C C E S S
Teresa Porter
Builds ISYS
Technologies Into
a Business
Powerhouse
www.SBA.gov
•
connect with us @ facebook.com/SBAgov twitter.com/sbagov youtube.com/sba
On the Cover: SBA Helps Unify Janitorial and Water Companies Under One Roof
Elliott Henry had just graduated from high school when he traveled to St. Louis looking for work. He had $35
in his pocket and a burning desire to land a factory job. With patience and a lot of determination, he landed his
dream job as a utility worker cleaning foors and restrooms. Having some free evenings to fll, Elliott took on
part-time employment with a local janitorial company. He learned the cleaning business frst hand and attended
evening seminars to expand his leadership skills.
When the owner of the company was ready to sell his business, Elliott decided to branch out on his own. He
developed a business plan, received a business license, and launched Maintenance Unlimited Janitorial. To help
fund his new business, Elliott received a small SBA 7(a) Loan of $10,000. The 7(a) Loan is the SBA’s primary
business loan and is the agency’s most frequently used loan program because of its fexibility.
The janitorial company was doing quite well when Elliott received an unexpected opportunity to get into the
water distribution business. It was a leap of faith since Elliott had no prior water processing experience. He
named his new venture Unlimited Water Processing, and, before long, his water company was making its own
plastic bottles and delivering water by the truckload to such companies as Conrail, Union Pacifc and Metro Rail
in Chicago.
By 2011, Elliott was operating his janitorial and water processing companies out of four different buildings.
The separate locations led to a drop in productivity and poor
communication. Yet, despite having two proftable companies
and a substantial amount in personal savings, Elliott found it
diffcult to secure a loan to purchase a new building. Then he
was introduced to SBA’s 504 Loan Program, which provides
growing businesses long-term, fxed-rate fnancing for major fxed
assets, such as land and buildings.
In addition to making it easier to make payroll while fnancing his
new facility, the $700,000 loan Elliott received helped him spread
his two businesses over 54,000 square feet of space. His 73
employees are now more productive and happily united under
one roof.
Visit us online: www.sba.gov/co 54 — Colorado Small Business Resource
Visit us online: www.sba.gov/co Colorado Small Business Resource — 55
doc_161509866.pdf
SBAs participation in this publication is not an endorsement of the views, opinions, and products.
PAGE
9 Counseling
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18 Capital
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U.S. Small Business Administration • Colorado Edition
Resource Guide
for
Small Business
Businesses
Poised for Growth
page 8
Advertising
Phone: 863-294-2812 • 800-274-2812
Fax: 863-299-3909 • www.sbaguides.com
Staff
President/CEO
Joe Jensen [email protected]
English/Spanish Small Business Resource
Advertising
Nicky Roberts [email protected]
Martha Theriault [email protected]
Kenna Rogers [email protected]
Production
Diane Traylor [email protected]
SBA’s Marketing Of?ce:
The Small Business Resource Guide is published
under the direction of SBA’s Of?ce of Marketing and
Customer Service.
Director of Marketing
Paula Panissidi
[email protected]
Graphic Design
Gary Shellehamer
[email protected]
SBA’s participation in this publication is not an
endorsement of the views, opinions, products or
services of the contractor or any advertiser or other
participant appearing herein. All SBA programs
and services are extended to the public on a
nondiscriminatory basis.
Printed in the United States of America
While every reasonable effort has been made
to ensure that the information contained herein
is accurate as of the date of publication, the
information is subject to change without notice.
The contractor that publishes this guide, the federal
government, or agents thereof shall not be held
liable for any damages arising from the use of
or reliance on the information contained in this
publication.
SBA Publication # MCS-0018
This publication is provided under SBA Contract
# SBAHQ05C0014.
RENI
Publishing
Publishers of Small Business Resource
Visit us online: www.sba.gov/co 2 — Colorado Small Business Resource
SMALL BUSINESS
content
2015-2016 COLORADO
FEATURES
4 Introduction
4 Administrator’s Message
6 District Director’s Message
8 Feature Article
The Making of an SBA “Gazelle”
9 Counseling
Getting Help to Start Up, Market
and Manage Your Business
9 SBA Resource Partners
13 SBA’s Learning Center
14 Reaching Underserved
Communities
16 Are You Right for Small
Business Ownership?
17 Writing a Business Plan
18 Capital
Financing Options to Start or
Grow Your Business
18 SBA Business Loans
20 What to Take to the Lender
28 Surety Bond Guarantee
Program
28 Small Business Investment
Company Program
28 Small Business Innovation
Research Program
29 Small Business Technology
Transfer Program
31 SBA Loan Program Chart
33 SBA Lenders Program Chart
34 Contracting
Applying for Government
Contracts
34 How Government Contracting
Works
35 SBA Contracting Programs
38 Getting Started in Contracting
39 Disaster Assistance
Knowing the Types of Assistance
Available for Recovery
41 Advocacy and Ombudsman
Watching Out for Small Business
Interests
42 Additional Resources
Taking Care of Start Up Logistics
45 Business Organization:
Choosing your Structure
47 Other Assistance
51 Lender Listing
On the Cover: Elliott Henry, owner of two
companies working out of one building,
Maintenance Unlimited Janitorial and
Unlimited Water Processing. See his
success story on page 53.
Visit us online: www.sba.gov/co 4 — Colorado Small Business Resource
At the SBA, one of our core missions is to
provide access to capital in an inclusive
manner. But that’s not the end of our
commitment to America’s small business
owners; it’s only the start.
We know small businesses need reliable
lending to grow, but we also know how
important it is to provide information
regarding business fundamentals,
regulatory compliance, capital
management, public contract bidding,
exporting and networking to create new
opportunities and new customers.
Two of three graduates of the SBA’s
Emerging Leaders program go on to
increase their revenue; three out of four
make new hires and nearly half secure
government contracts. I’ll never forget
meeting the head of a public utilities
company when I was a banker in Los
Angeles. His company was committed to
working with more underserved businesses
and he told me he had a strong preference
to contract with companies whose
executives had been through programs
like this one. He said Emerging Leaders
are more sophisticated. They speak the
language of business and know how to run
sound operations and how to problem-
solve. Learn more about this program in
the Counseling section of this guide.
The SBA is also focused on the unique
opportunities presented by international
commerce. Over the next decade, one
billion consumers are going to join the
global middle class. The SBA’s State
Trade and Export Promotion (STEP)
program can help small businesses sell to
them. We’re also focused on helping more
of our military veterans apply their military
leadership skills to their dream of business
ownership through Boots to Business.
Most of the job creation in our economy
comes when small businesses get the
counseling, capital and contracts they need
to implement their expansion plans. This
guide will give you fresh ideas about how
the SBA can work with your small business
to scale up and reach even greater heights.
Go to www.sba.gov to learn more about
how the SBA can support your growth
strategy. We look forward to working with
you to help your business realize its full
potential.
Warmest regards,
Maria Contreras-Sweet
Administrator
U.S. Small Business Administration
F R O M T H E A D MI NI S T R A T O R
The U.S. Small Business Administration
Take Your Business
to the Next Level
Message From The District Director
Visit us online: www.sba.gov/co 6 — Colorado Small Business Resource
Colorado is a Great
Place to Start a
Small Business
T
he numbers speak for
themselves. More than
98 percent of all businesses
in Colorado have fewer
than 100 employees, and
86 percent have fewer than 20 workers.
Small business played a critical role in
keeping the state’s economy afoat during
the 2008 recession, and continues to drive
new job creation today. At the SBA, we
have an important role to play and I like
to describe our core mission in simple
terms with three C’s: capital, counseling
and contracts. We work with more than
100 different statewide lending partners
to provide access to capital. We have
a vast network of business resources to
provide counseling to assist entrepreneurs.
And we open new markets and connect
small businesses with federal contracts –
including international export contracts.
It can be easy to forget the importance
that small business plays in our lives, in
our communities, and across our state.
It was the 1920’s political humorist Will
Rogers that said “A man only learns in
two ways, one by reading, and the other
by association with smarter people.”
Over the years I have met thousands of
small business owners and these men and
women are some of the most imaginative,
creative, innovative, and business smart
people I have ever met.
Owning and managing a small business
is challenging.With more than 560,000
small frms in Colorado, employing over
one million people – small business is the
heart and soul of our state’s economy.
That’s at least 560,000 Coloradans that
must make payroll each week; need to
collect and pay taxes regularly; and have
a sense of personal responsibility to their
employees and their families for their
well-being. Small business owners are
required to wear many different hats.
They are the company’s sales force, IT
administrators, janitors, delivery person,
head cheerleader, and accountant. All
these functions in addition to being a
mother, father, parent, soccer coach,
school volunteer, caretaker, brother,
sister, and friend.
Colorado is one of the best states in the
nation to start and grow a small business.
Small business remains the backbone of
our economy; they maintain our local
tax base, hire locally, and support our
local community organizations and
non-profts like our schools, little league
teams, libraries, and churches. SBA
Administrator Maria Contreras-Sweet
likes to say the SBA should stand for
“Smart, Bold, and, Accessible.” She
knows that the key to a strong and lasting
middle-class is opportunity for all.
This Reni Guide is a beginning step in
your journey to small business ownership.
The SBA remains committed to helping
all Coloradans fulfll their dreams of
entrepreneurship and looks forward to a
long and successful relationship with you
and your business.
Good luck in your future endeavors.
Sincerely,
Edward J. Cadena
District Director of
SBA’s Colorado District Ofce
COLORADO
SBA Staff Listing
Edward J. Cadena
District Director
303-844-2159
[email protected]
Frances Padilla
Deputy District Director
303-844-4293
[email protected]
Brad Currie
Administrative Of?cer
303-844-0509
[email protected]
Briana Wilson
District Support Assistant
303-844-5234
[email protected]
BUSINESS OPPORTUNITY
SPECIALISTS:
Carolyn Terrell
Supervisory Business Opp.
Specialist
303-844-5238
[email protected]
JoAnna Burciaga
Business Opp. Specialist
303-844-6504
[email protected]
Katherine Roth
Business Opp. Specialist
303-844-3461
[email protected]
James Klitzke-Kidd
Business Opp. Specialist
303-844-0528
[email protected]
Charles Aycock
Business Opp. Specialist
303-844-5638
[email protected]
LENDER RELATIONS
SPECIALISTS:
James Van Horn
Lead Lender Relations
Specialist
303-844-5237
[email protected]
Robert Martin
Lender Relations Specialist
303-844-6508
[email protected]
SURETY BOND
SPECIALISTS
Jennifer Vigil
Area Director
303-844-927-3489
[email protected]
Leonard English
Surety Bond Specialist
303-927-3485
[email protected]
Richard Gomez
Surety Bond Specialist
303-927-3490
[email protected]
Leslie Long
Surety Bond Specialist
303-927-3476
[email protected]
Tamara Murray
Surety Bond Specialist
303-927-3479
[email protected]
Danny Vu
Surety Bond Specialist
303-927-3478
[email protected]
ADVOCACY
John Hart
Region VIII Advocate
303-844-0503
[email protected]
EXPORTING
Bryson Patterson
Export Finance Specialist
303-844-6622
[email protected]
GOVERNMENT
CONTRACTING
Tom Clarke
Industrial Specialist/
Forestry
303-927-3486
[email protected]
Edward J. Cadena
Visit us online: www.sba.gov/co Colorado Small Business Resource — 7
When Maria Velez began Ayuda
Companies in 2002 she knew the
focus of the business needed to
center around her core values of
commitment, courage, creativity,
consistency, challenges, compassion,
and community. In the beginning
the business had one employee
and $33,000 in revenue. Today,
Ayuda Companies has grown to
40 employees and $16 million in
revenues.
Maria Velez learned very early in life
about the importance of hard work
and treating people fairly. She learned
these principles from her grandfather
who taught himself English and
worked his way up to becoming
the head chef at Jack Dempsey’s
Broadway Restaurant in New York
City. Maria Velez comes from an
Ecuadorian family of entrepreneurs
including her dad who started an
IT company, and her aunt who ran
a successful snack stand in Cuenca,
Ecuador. She was taught that nothing
would be handed to you in life, and
no task is worth doing unless you are
willing to go above and beyond and
do it right.
Ayuda Companies provides
environmental remediation,
environmental consulting, and
construction management to
customers in both the public and
private sectors. In order to help spur
revenue growth at her business Velez
applied to and was accepted into the
SBA’s 8(a) Business Development
Program. The positive results were
immediate and Maria eventually
needed to fnd a business partner that
complemented her skillsets. In 2006,
Sonya Yungeberg joined Velez as
executive vice president and co-owner
of the business.
Along the way Ayuda Companies
utilized other SBA programs including
the Surety Bond Guaranty Program
which helped the business win
construction contracts at Buckley
Air Force Base and the Blue Grass
Chemical Depot. In 2013, with the
assistance of an SBA 504 loan, Ayuda’s
owners were able to purchase an
old mansion located in a Denver
HUBZone which they converted into
their corporate ofce.
In 2014, Ayuda became a participant
in the SBA’s Mentor Protégé Program
which connected them to a large
business mentor on environmental
remediation contracts. Ayuda has
gained valuable expertise and
greatly benefted from this business
opportunity. Both Velez and
Yungeberg look forward to paying
this assistance forward by mentoring
another less experienced company
following their graduation from the
8(a) program.
Community is one of Maria Velez’s
core values that she feels most
strongly about. Ayuda Companies has
a policy that allows each employee
to give two hours of paid work time
each month towards any charity
the employee chooses. Maria is
committed to speaking at training
sessions throughout Colorado
targeting minority women, small
business owners, and service members
leaving the U.S. armed forces. She
has also spoken at high schools to
encourage students to fnd their sense
of creativity and overcome challenges
in order to graduate on time. Ayuda
Companies has certainly become a
Colorado and SBA business success
story!
THE COLORADO DISTRICT OFFICE
The Colorado District Ofce is
responsible for the delivery of SBA’s
programs and services. The District
Ofce is located in the Custom House,
721 19th St., Ste. 426, Denver, CO 80202.
Ofce hours are from 8:00 am until 4:30
pm, Monday through Friday, except
holidays. Please note a picture ID is
required to enter the building.
Phone Number: 303-844-2607
Website: www.sba.gov/co
Doing Business in Colorado
SUCCESS STORY
Ayuda Companies
Leverages SBA Programs
for Business Success
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Throughout the pages of this resource guide,
you’ll read about how SBA has resources,
programs, and services for small business owners
and aspiring entrepreneurs at every stage of the
business life cycle. This is de?nitely true; from
developing your business plan to helping you
?nance a new location to taking your product
overseas, SBA is there for you. However, I’d be
lying if I didn’t say there was a special place in my
heart for what we here at SBA Headquarters refer
to as the “gazelles.”
Gazelles are animals that are known for being
both graceful and quick, outrunning their
predators and surviving under what are often very
harsh conditions. It is exactly in that context that
we use the term. Like the top students in school,
SBA’s “gazelles” are those businesses that you
can just tell are destined for greatness. They have
a certain quality that is intrinsic to their nature; it
comes from within. They don’t just want to coast
by; they want to succeed. Life may deal them
challenges, but they have the drive to survive. In
a nutshell, SBA gazelles are hungry. They seek
out and take advantage of every opportunity.
SBA gazelles are at a certain stage in their
business life cycle. We call them “poised for
growth,” and, while the potential to be a gazelle
may be inherent, a small business owner that
hones his or her skills through experience and
training at this phase is much more likely to
thrive. It is for this reason that SBA offers a
number of training programs for small businesses
in this stage of development, such as our
Emerging Leaders Program and the 8(a) Business
Development Program. Both programs are
designed for small business owners with some
experience under their belts and a desire, like the
gazelle that swiftly and gracefully leaps to safety,
not just to survive but to thrive.
Earlier this year, I sat down with some of the
graduates from the Baltimore and Washington,
DC classes of the 2015 Emerging Leaders
Program to hear about their experience and
whether they would recommend the program
to other small business owners like themselves.
They were overwhelmingly positive about the
program, and, though they admitted it was
hard work, they highly recommended it to their
peers. Visiting with them was invigorating and
reminded me of all the great work we do in our
district of?ces to help small businesses succeed.
If you’d like to feel inspired, check out the video
we made for small business owners who are
considering applying for the program at
www.sba.gov/emergingleaders.
The next several pages pro?le just a handful of
the small businesses that have succeeded, in
large part, due to the assistance they received
from SBA. Lest anyone think from this article
that we take credit for an SBA gazelle’s success,
we acknowledge that we play but a small
role in a business’ rise to becoming “the next
household name.” We hope these stories both
inspire and motivate you to pursue the path of
entrepreneurship.
For more information about the SBA Emerging
Leaders Program, please visit
www.sba.gov/emergingleaders.
For information on the 8(a) Business Development
Program, see www.sba.gov/8a.
To fnd the location of your nearest SBA District
Ofce, visit www.sba.gov/tools/local-assistance.
The Making of an SBA
“Gazelle”
by Paula Panissidi, SBA’s Director of Marketing
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very year, the U.S. Small
Business Administration
and its nationwide network
of resource partners help
millions of potential and
existing small business owners start,
grow and succeed.
Whether your target market is global
or just your neighborhood, the SBA and
its resource partners can help at every
stage of turning your entrepreneurial
dream into a thriving business.
If you’re just starting out, the SBA
and its resources can help you with
business and fnancing plans. If you’re
already in business, you can use
the SBA’s resources to help manage
and expand your business, obtain
government contracts, recover from
disaster, fnd foreign markets, and
make your voice heard in the federal
government.
You can access SBA information at
www.sba.gov or visit one of our local
offces for assistance.
SBA’S RESOURCE
PARTNERS
In addition to our district offces,
which serve every state and territory,
the SBA works with a variety of local
resource partners to meet your small
business needs: SCORE chapters,
Small Business Development Centers
(SBDCs), and Women’s Business
Centers (WBCs). This partner
network reaches into communities
across America: More than 13,000
business counselors, mentors and
trainers available through over 900
Small Business Development Centers,
110 Womens’ Business Centers and 350
SCORE chapters. These professionals
can help with writing a formal business
plan, locating sources of fnancial
assistance, managing and expanding
your business, fnding opportunities
to sell your goods or services to the
government, and recovering from
disaster. To fnd your local district offce
or SBA resource partner, visit
www.sba.gov/tools/local-assistance.
SCORE
SCORE is a national network of more
than 11,000 entrepreneurs, business
leaders and executives who volunteer as
mentors to America’s small businesses.
SCORE volunteers donated more than
1.1 million hours providing services
to small business clients. SCORE
leverages decades of experience from
seasoned business professionals to
help entrepreneurs to start and grow
companies and to create jobs in local
communities. SCORE does this by
harnessing the passion and knowledge
of individuals who have owned and
managed their own businesses and
want to share this “real world” expertise
with you.
Found in more than 350 chapters
and 800 locations throughout the
country, SCORE provides key services
– both face-to-face and online – to busy
entrepreneurs who are just getting
started or are in need of a seasoned
business professional as a sounding
board for their existing business. As
members of your community, SCORE
mentors understand local business
licensing rules, economic conditions and
important business networks. SCORE
can help you as they have done for
many entreprenurs through the years
by:
• Matching your specifc needs with a
business mentor
• Traveling to your place of business
for an on-site evaluation
• Teaming with several SCORE
mentors to provide you with tailored
assistance in a number of business
areas
Across the country, SCORE offers
more than 10,000 local business
educational workshops and seminars
ranging in topic and scope depending
on the needs of the local business
community. SCORE workshops cover
all manner of business topics, including:
an introduction to the fundamentals of
a business plan, managing cash fow
and marketing your business. For
established businesses, SCORE offers
more in-depth training in areas like
customer service, hiring practices and
home-based businesses.
For around-the-clock business advice
and information on the latest business
news and trends visit www.sba.gov/score
or call 800-634-0245 for the SCORE
offce nearest you. More than 1,200
online mentors with over 150 business
skill sets answer your questions about
starting and running a business.
For more information on SCORE and
to get your own business mentor, visit
www.SCORE.org.
• You get to be your own boss.
• Hard work and long hours directly bene?t you,
rather than increasing pro?ts for someone else.
• Earnings and growth potential are unlimited.
• Running a business will provide endless
variety, challenge and opportunities to learn.
ON THE UPSIDE
It’s true, there are a lot of
reasons not to start your
own business. But for the
right person, the advantages
of business ownership far
outweigh the risks.
COUNSELING
Getting Help to Start, Market and Manage Your Business
Colorado SCORE Chapters:
Jack Scott, District Director
721 19th St., Ste. 426
Denver, CO 80202
303-844-3985
[email protected]
Chris Van Lauwe, Chapter Chair
Denver Chapter 62 (Denver, Glenwood
Springs, Castle Rock, Northern Colorado)
721 19th St., Ste. 426
Denver, CO 80202
303-844-3985
[email protected]
J. R. Dickens, Chapter Chair
Colorado Springs Chapter 206
3595 E. Fountain Blvd., Ste. G1
Colorado Springs, CO 80910
719-636-3074
Coloradosprings.score.org
Michelle Parks, Chapter Chair
Pueblo Chapter 110
302 N. Santa Fe
Pueblo, CO 81003
719-542-1704
Pueblo.score.org
Randy Rudasics
Steamboat Springs SCORE Of?ce
Yampa Valley Entrepreneurship Center
Colorado Mountain College
1275 Crawford Ave.
Steamboat Springs, CO 80487-5189
970-870-4491
[email protected]
SMALL BUSINESS
DEVELOPMENT CENTERS
The U.S. Small Business
Administration’s Small Business
Development Centers (SBDC) mission
is to build, sustain, and grow small
businesses; as well as to promote small
business development and enhance local
economies by creating businesses and
fulflling its mission of creating jobs.
The Small Business Development
Centers, vital to SBA’s entrepreneurial
outreach, have been providing service
to small businesses for almost 35 years.
It is one of the largest professional
small business management and
technical assistance networks in the
nation. With over 900 locations across
the country, SBDCs offer existing and
future entrepreneurs free one-on-one
expert business counseling and low-cost
training by qualifed small business
professionals.
In addition to its core services,
the SBDCs offer special focus areas
such as green business technology,
disaster recovery and preparedness,
export assistance, international trade
assistance, veteran’s assistance,
technology transfer and regulatory
compliance.
The program combines a unique
combination of federal, state and private
sector resources to provide, in every
state and territory, the foundation
for the economic growth of small
businesses. The return on investment is
demonstrated by the program’s success
during FY2013.
• Assisted more than 14,200
entrepreneurs to start new
businesses – equating to nearly 39
new business starts per day.
• Provided counseling services to
more than 104,000 emerging
entrepreneurs and over 96,000
existing businesses.
• Provided training services to
approximately 330,000 clients.
The effcacy of the SBDC program
has been validated by a nationwide
impact study. Of the clients surveyed,
more than 80 percent reported that the
business assistance they received from
the SBDC counselor was worthwhile.
The top fve impacts of counseling
cited by SBDC clients were revising
marketing strategy, increasing sales,
expanding products and services,
improving cash fow and increasing
proft margin. More than 40 percent of
long-term clients receiving fve hours or
more of counseling reported an increase
in sales and proft margins.
For information on the SBDC
program, visit www.coloradosbdc.org or
ww.sba.gov/sbdc.
Colorado SBDC Locations:
Boulder SBDC
Boulder Public Library
1001 Arapahoe Ave.
Boulder, CO 80302
303-442-1475
Colorado Springs SBDC
El Paso County Citizens Center
1675 Garden of the Gods Rd., Ste. 1107
Colorado Springs, CO 80907
719-667-3821
Denver Metro SBDC
Denver Metro Chamber of Commerce
1445 Market St.
Denver, CO 80202
303-620-8076
East Colorado SBDC
UNC BizHub
807 17th St., Ste. D
Greeley, CO 80631
970-351-4274
Grand Junction SBDC
Western Colorado Business Development
Corporation
2591 Legacy Way
Grand Junction, CO 81503
970-243-5242
Southeast Colorado SBDC
Otero Junior College
1802 Colorado Ave.
La Junta, CO 81050
719-384-6959
Larimer SBDC
Rocky Mountain Innosphere
320 E. Vine Dr. #303
Fort Collins, CO 80524
970-498-8918
North Metro Denver SBDC
Front Range Community College -
Westminster Campus
3645 W. 112th Ave.
Westminster, CO 80031
303-404-5340
Northwest Colorado SBDC
Colorado Mountain College - Summit
Campus
325 Fiedler Ave./P.O. Box 1414
Dillon, CO 80435
970-968-5802
San Luis Valley SBDC
Alamosa County Economic Development
Corporation
610 State Ave., #120
Alamosa, CO 81101
719-589-3682
Aurora - South Metro SBDC
15151 E. Alameda Pkwy., #2300
Aurora, CO 80012
303-326-8686
Southern Colorado SBDC
131 S. Main St.
Pueblo, CO 81003
719-549-3224
Southwest Colorado SBDC
Fort Lewis College
1000 Rim Dr., 140 EEB
Durango, CO 81301
970-247-7009
West Central SBDC
Western State Colorado University
112 Taylor Hall
Gunnison, CO 81231
970-943-3157
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SBDC Lead Center
Kelly Manning, State Director
Colorado SBDC Network
303-892-3840
The Lead Center sponsors entrepreneurial
training for business owners through
the Leading Edge program and manages
the Connect2DOT program which helps
small businesses capitalize on contracting
opportunities with the Colorado Department
of Transportation.
For more information about the Colorado
SBDC Network visit: www.coloradosbdc.org/.
Colorado Small Business
Development Center Program
Recap:
Connect2DOT:
www.connect2dot.org
Connect2DOT is a new program
formed as a result of an innovative
partnership between the Colorado
SBDC Network and the Colorado
Department of Transportation (CDOT).
The program is designed to help small
businesses in the transportation
industry become more competitive
and successful in bidding and
contracting with CDOT and other local
transportation agencies.
In addition to free one-on-one
consulting and business training,
Connect2DOT provides online resources
and events tailored to construction
contractors and professional design,
architecture and engineering
frms. Whether you’re just starting
your business and want to explore
opportunities with CDOT, or you’re
an experienced subcontractor looking
to grow and expand your business,
Connect2DOT has the expertise and
resources to help.
SBDC Advanced:
www.coloradosbdc.org/consulting/sbdc-
advanced
SBDC ADVANCED is a new business
development program administered by
the Colorado SBDC Network. It is an
economic gardening program, focused
on helping Colorado companies to grow
by providing custom-ft market research
and corporate-level tools that might
otherwise be out of reach for small to
mid-sized businesses. These businesses
can then use this data to make informed
strategic growth decisions.
The SBDC ADVANCED program
is open to Colorado businesses at
three levels: Gold, Silver, and Copper.
Deliverables provided may include
specialized reports in market research,
geographic information systems (GIS),
fnancial analysis, marketing and
search engine optimization (SEO).
The SBDC ADVANCED program taps
into corporate-level tools, experienced
consultants and their strategic plans.
Disaster Relief Program:
www.coloradosbdc.org/disaster
The Colorado SBDC Network is here
to help businesses that have been
affected by recent Colorado disasters,
including devastating wildfres and
foods. Come to the SBDC for assistance
with disaster loan applications, long-
term planning, insurance navigation,
physical and economic loss estimations,
business preparedness and more.
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The SBDC is using all available local,
state and federal resources to help
businesses recover and works closely
with communities impacted by these
disasters.
Veteran’s Program:
www.coloradosbdc.org/consulting/veterans
Since 2010, the Colorado SBDC
Network has been awarded a Veteran’s
Grant from the U.S. Small Business
Administration to provide one-on-one
business consulting and specialized
training and programs for Colorado
veterans and their families. We are
dedicated to helping veterans become
successful. That’s why we’ve brought
on consultants specializing in sales,
marketing, government contracting,
certifcations and fnancials, who are
also veterans, to meet with you one-
on-one, at no cost, to help bring your
business to the next level. Contact your
local SBDC and let them know you are
a veteran to schedule an appointment
with one of our specialized veteran
consultants.
Join us each year as we offer our
Veteran’s Small Business Conference
and Resource Fair, which has been held
in Denver and Colorado Springs. This
event brings together subject experts on
a variety of topics all aimed specifcally
at the veteran entrepreneur. The day
concludes with a networking event and
cocktail hour.
Health Insurance Marketplace:
www.coloradosbdc.org/consulting/health
The Colorado SBDC Network has
been chosen to be an assistance site for
Connect for Health Colorado™, the new
online marketplace where individuals
and small employers in Colorado can
shop, compare, pick and purchase
health insurance plans and apply for
fnancial help to reduce costs. Certifed
Health Coverage Guides are available
at your local SBDC to meet with small
business owners one-on-one for no cost
assistance to help you navigate the new
marketplace.
Worksite Wellness:
www.coloradosbdc.org/consulting/wellness
The Colorado SBDC has partnered
with Health Links™ to provide small
businesses assistance in creating a
work environment that promotes
safety, physical activity, healthy habits
and overall well-being for employees
through work-site certifcation and
seed money. Health Links recognizes
small businesses that champion
worker well-being and safety with
the Health Links™ Health Business
Certifcation, a program that recognizes
small businesses for meeting or
exceeding worker health and safety
standards. Certifed businesses will
receive community, industry and media
recognition; a promotional package
including certifcate, stickers, logos and
icons; recognition on the Health Links
and SBDC websites; discounts from
sponsors and vendors and more. For
small businesses that are just getting
started, Health Links provides support
through the Kick-Start Program, which
awards seed funding and provides
free one-on-one consulting by certifed
SBDC consultants to qualifed small
businesses for successfully building
work-site wellness and safety programs.
Businesses with 2-49 employees can
apply to receive the funding and
assistance, which includes creating a
Health Business Road Map: an action
plan for creating a health, safe and fun
place to work.
International Trade:
www.coloradosbdc.org/consulting/
international
If you’re a Colorado manufacturer or
professional service provider looking to
start or expand your international trade
efforts, certifed SBDC consultants
through the Offce of Economic
Development and International Trade
(OEDIT) are ready to meet with you
to provide free assistance. The Offce
of International Trade works to create
and retain jobs by helping Colorado
companies expand and diversify their
markets, as well as build the state’s
identity as an international business
center. The international staff assists
companies in obtaining the information,
skills, resources and contacts you need
to successfully export goods and services
worldwide.
U.S. Export Assistance Centers
SBA trade fnance specialists are
located in 19 U.S. Export Assistance
Centers throughout the U.S., which
also are staffed by U.S. Department
of Commerce and, in some locations,
Export-Import Bank of the U.S.
personnel, providing trade promotion
and export-fnance assistance in a
single location. The USEACs also
work closely with other federal,
state and local international trade
organizations to provide assistance to
small businesses. To fnd your nearest
USEAC, visit: http://www.sba.gov/content/
us-export-assistance-centers. You can
fnd additional export training and
counseling opportunities by contacting
your local SBA district offce.
WOMEN’S BUSINESS CENTERS
The SBA’s Women Business Center
(WBC) program is a network of over 100
community-based centers that provide
business training, counseling, coaching,
mentoring and other assistance geared
toward women, particularly those
who are socially and economically
disadvantaged. WBCs are located in
nearly every state and U.S. territory
including the District of Columbia
and the territories of Puerto Rico and
American Samoa. They are partially
funded through a cooperative agreement
with the SBA.
To meet the needs of women
entrepreneurs, WBCs offer services
at convenient times and locations,
including evenings and weekends.
WBCs are located within non-proft host
organizations that offer a wide variety
of services in addition to the services
provided by the WBC. Many of the
WBCs also offer training and counseling
and provide materials in different
languages in order to meet the diverse
needs of the communities they serve.
WBCs often deliver their services
through long-term training or group
counseling, both of which have shown to
be effective. WBC training courses are
often free or are offered for a small fee.
Some centers will also offer scholarships
based on the client’s needs.
While most WBCs are physically
located in one designated location, a
number of WBCs also provide courses
and counseling via the Internet, mobile
classrooms and satellite locations.
WBCs have a track record of success.
In fscal year 2013, the WBC program
counseled and trained nearly 134,000
clients, creating local economic growth
and vitality. In addition, WBCs helped
entrepreneurs access more than
$25 million dollars in capital. Based
on a 2010 Impact Study, of the WBC
clients that have received three or
more hours of counseling, 15 percent
indicated that the services led to hiring
new staff, 34 percent indicated that
the services led to an increased proft
margin, and 47 percent indicated that
the services led to an increase in sales.
In addition, the WBC program has
taken a lead in preparing women
business owners to apply for the
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Women-Owned Small Business
(WOSB) Federal Contract program
that authorizes contracting offcers to
set aside certain federal contracts for
eligible women-owned small businesses
or economically disadvantaged women-
owned small businesses. For more
information on the program, visit
www.sba.gov/wosb.
To fnd the nearest SBA WBC, visit
www.sba.gov/women.
Colorado Women’s Business Center
Location:
Mi Casa Resource Center
360 Acoma St.
Denver, CO 80223
303-573-1302 • 303-595-0422 Fax
[email protected]
SBA EMERGING LEADERS
The intense seven-month
entrepreneurship training for small
business leaders creates a learning
environment to accelerate the growth
of high-potential small businesses,
stimulates job creation and helps drive
economic development within their
communities. A competitive selection
process results in company executives
participating in high-level training
and peer-networking sessions led by
professional instructors. Graduates
are poised to create an economic ripple
effect because they are now equipped
with the support, resources and
enhanced business skills to succeed
in increasing their revenue, creating
jobs and driving sustainable economic
growth throughout their communities.
Impact of Emerging Leaders:
The initiative is currently offered in
27 underserved communities across
the country with plans to expand
to more communities in 2015. Over
2,500 businesses have participated in
Emerging Leaders since its inception.
An independent impact study of
Emerging Leaders past participants
reported that they:
• Created nearly 2,000 new full-time
jobs
• Secured federal, state, local and
tribal contracts awards over
$1 Billion
• Accessed over $73 Million in new
fnancing
• 95% were satisfed with the
Emerging Leaders program.
Visit www.sba.gov/emergingleaders for
more information.
SBA’S LEARNING CENTER
SBA’s Learning Center is a virtual
campus complete with free online
courses, workshops, podcasts and
learning tools.
Key Features of the SBA’s Learning
Center:
• Training is available anytime and
anywhere — all you need is a
computer (or mobile device) with
Internet access.
• Nearly 50 free online and
interactive courses and workshops
available.
• Checklists and worksheets to get
your business planning underway.
• Course topics include how to write
a business plan, fnancing options
that include SBA lending programs,
mastering overseas markets
through exporting, public sector
procurement tactics, and specialty
material for veterans, young
entrepreneurs, and women business
owners.
• Over 10 new courses launched
in the last year; including a new
Spanish-language version of a
course for Young Entrepreneurs.
This robust portal also includes
video content, templates, and
articles.
Visit www.sba.gov/learning for these
free resources.
SBA’S CLUSTER INITIATIVE
Every small business must
effectively connect into the key
relationships necessary to drive
success in its particular industry or
market sector. Regional Innovation
Clusters act as a networking hub
to connect small businesses in
a particular industry sector and
geographic region with other business
innovators in the same sector and
with specialized suppliers, research
institutions, large prime customers
or contractors and investors who also
operate in that sector. In addition,
market success requires small
businesses to know their customers
and target their product development
dollars effciently. Therefore, through
intensive, industry-specifc technical
assistance, our Clusters help small
business innovators commercialize
promising technologies needed by
government and industry buyers
in that particular sector. And then,
through showcasing, networking
and “demonstration events,” they
help get these small businesses and
their products in front of investment
and other funding sources, research
institutions and customers/buyers in
order to bring products to market.
Across the country, our resource
partners work with our Regional
Innovation Clusters: The resource
partners provide the businesses with
information and coaching on the key
building blocks of business success,
while the Cluster experts help them
with the highly technical product
development and relationship-building
assistance necessary to get and keep
customers and investors in their
particular market sector (such as
smart-grid, fuel cell energy storage,
solar cells, imaging, aerospace, and
agricultural processing technologies
and networks).
For more information on SBA’s
Cluster Initiative, go to
www.sba.gov/clusters.
FINANCIAL LITERACY
If you want to start a business or
learn how to better manage your
business money, begin with Money
Smart. SBA and FDIC jointly provide
an instructor-led business training
curriculum, Money Smart for Small
Business, for free. This curriculum
is designed to provide introductory-
style training for new and aspiring
entrepreneurs. The 10 modules
provide the most essential information
on running a small business from a
fnancial standpoint. In addition to
grounding participants in the basics,
the curriculum serves as a foundation
for more advanced training and
technical assistance. You can fnd this
curriculum by visiting
www.sba.gov/moneysmart.
To learn more about the Financial
Literacy and Education Commission,
visit www.mymoney.gov.
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The SBA also offers a number of
programs specifcally designed to
meet the needs of the underserved
communities..
WOMEN BUSINESS OWNERS
Women entrepreneurs are changing
the face of America’s economy. In the
1970s, women owned less than
5 percent of the nation’s businesses.
Today, they are majority owners
of about a third of the nation’s small
businesses and are at least equal
owners of about half of all small
businesses. SBA serves women
entrepreneurs nationwide through its
various programs and services, some
of which are designed especially for
women.
The SBA’s Offce of Women’s
Business Ownership (OWBO) serves
as an advocate for women-owned
businesses. The offce oversees a
nationwide network over 100 Women’s
Business Centers that provide business
training, counseling and mentoring
geared specifcally to women, especially
those who are socially and economically
disadvantaged. The program is a
public-private partnership with locally-
based nonprofts.
Women’s Business Centers serve
a wide variety of geographic areas,
population densities, and economic
environments, including urban,
suburban, and rural. Local economies
vary from depressed to thriving, and
range from metropolitan areas to entire
states. Each Women’s Business Center
tailors its services to the needs of its
individual community, but all offer a
variety of innovative programs, often
including courses in different languages.
They provide training in fnance,
management, and marketing, as well as
access to all of the SBA’s fnancial and
procurement assistance programs.
Colorado Women’s Business Center
Location:
Mi Casa Resource Center
360 Acoma St.
Denver, CO 80223
303-573-1302 • 303-595-0422 Fax
[email protected]
VETERAN BUSINESS OWNERS
The Offce of Veterans Business
Development (OVBD), established
with Public Law 106-50, has taken
strides in expanding assistance to
veteran, service-disabled veteran small
business owners and reservists by
ensuring they have access to SBA’s full-
range of business/technical assistance
programs and services, and that
they receive special consideration for
SBA’s entrepreneurial programs and
resources.
The SBA’s Veterans Offce provides
funding and collaborative assistance for
a number of special initiatives targeting
local veterans, service-disabled
veterans, and Reserve Component
members. These initiatives include
Veterans Business Outreach Centers
(VBOCs), the business assistance tools
–Balancing Business and Deployment,
and Getting Veterans Back to Business,
which includes interactive CD ROMs
for reservists to help prepare for
mobilization and/or reestablishment
of businesses upon return from active
duty.
The agency offers special assistance
for small businesses owned by activated
Reserve and National Guard members.
Any self-employed Reserve or Guard
member with an existing SBA loan
can request from their SBA lender
or SBA district offce loan payment
deferrals, interest rate reductions and
other relief after they receive their
activation orders. In addition, the
SBA offers special low-interest-rate
fnancing to small businesses when an
owner or essential employee is called
to active duty. The Military Reservist
Economic Injury Disaster Loan Program
(MREIDL) provides loans up to
$2 million to eligible small businesses to
cover operating costs that cannot be met
due to the loss of an essential employee
called to active duty in the Reserves or
National Guard.
Each of the SBA’s 68 District
Offces also has a designated veteran’s
business development offcer. These
local points-of-contact assist veteran
small business owners/entrepreneurs
with starting, managing and growing
successful businesses. Yearly, OVBD
reaches thousands of veterans, Reserve
component members, transitioning
service members and others who
are – or who want to become –
entrepreneurs and small business
owners. In fscal year 2012, the number
of veterans assisted through OVBD
programs exceeded 135,000. For more
information about OVBD, please visit
www.sba.gov/veterans.
NATIONAL BOOTS TO
BUSINESS INITIATIVE
The aptly named Operation Boots
to Business program (B2B) builds
on SBA’s role as a national leader
in entrepreneurship training. The
program’s mission is to develop veteran
entrepreneurs from the approximately
250,000 service members who transition
from the military each year. Boots
to Business is an entrepreneurial
education program offered as an
elective track within the Department of
Defense’s revised Transition Assistance
Program called Transition Goals,
Plans, Success (Transition GPS). The
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curriculum provides valuable assistance
to transitioning service members
exploring self-employment opportunities
by leading them through the key steps
for evaluating business concepts and
the foundational knowledge required for
developing a business plan. Participants
are also introduced to SBA resources
available to help access start up capital
and additional technical assistance.
Boots to Business is delivered in
partnership with SBA resource
partners and the Institute for Veterans
and Military Families at Syracuse
University. It is available free of
charge at participating installations to
service members and their dependents
transitioning or retiring from the U.S.
military.
The program has three parts: 1) The
Entrepreneurship Track Overview -
an introductory video shown during
the mandatory fve day Transition
GPS course; 2) Introduction to
Entrepreneurship – a two day classroom
course offered as one of the three
Transition GPS elective tracks; and, 3)
Foundations of Entrepreneurship – an
eight week instructor led online course
that offers in-depth instruction on the
elements of a business plan and tips
and techniques for starting a business.
After completing the course, counselors
and mentors from SBA’s resource
partner network remain available
to work with veterans in their local
communities. For more information
about B2B, please visit
www.sba.gov/bootstobusiness.
CENTER FOR FAITH-BASED AND
NEIGHBORHOOD PARTNERSHIPS
SBA’s Center for Faith-Based and
Neighborhood Partnerships (The
Partnership Center) works to engage
and build strong partnerships with
community and nonproft organizations,
both secular and faith-based, to support
entrepreneurship, economic growth and
promote prosperity for all Americans.
The center works in coordination
with other offces within the Agency
to assist in formulating policies and
practices with the goal of extending
the reach and impact of SBA programs
into communities. SBA recognizes the
important role of community leaders
and networks in economic development
at the local and national level, and
that partnerships provide effective and
effcient leverage for SBA programs.
Further, the center plays a key role in
helping identify, engage and impact
underserved communities.
The program engages in outreach,
technical assistance, education,
formulates and administers training
programs, coordinates entrepreneurial
and business development opportunities
and access to SBA’s 68 district offces
and extensive network of resource grant
partners. The center additionally works
with the White House Offce of Faith-
Based and Neighborhood Partnerships
and the Faith-Based and Neighborhood
Partnership Centers that are within
13 additional federal agencies, and
participates in interagency working
groups to ensure effective and effcient
coordination of resources and initiatives.
The center was established by, and
follows the guidelines, operational
policy and statutory requirements of
Executive Order 13279 — Fundamental
Principles and Policymaking Criteria
for Partnerships with Faith-Based and
Other Neighborhood Organizations.
NATIVE AMERICAN
BUSINESS DEVELOPMENT
The SBA Offce of Native American
Affairs (ONAA) ensures that American
Indians, Alaska Natives and Native
Hawaiians seeking to create, develop
and expand small businesses have full
access to business development and
expansion tools available through the
agency’s entrepreneurial development,
lending, and contracting programs.
The offce provides a network of
training initiatives that include a
Native Entrepreneurial Empowerment
Workshop, a Native American 8(a)
Business Development Workshop, a
Money Smart Workshop, an Incubator
Workshop and the online tool, “Small
Business Primer: Strategies for
Growth”. ONAA also is responsible for
consulting with tribal governments
prior to fnalizing SBA policies that may
have tribal implications.
Visit www.sba.gov/naa for more
information.
VETERANS BUSINESS
OUTREACH CENTERS
The Veterans Business Outreach
Program (VBOP) is designed to provide
entrepreneurial development services
such as business training, counseling
and mentoring, and referrals for
eligible veterans owning or considering
starting a small business. The SBA
has 15 organizations participating
in this cooperative agreement
and serving as Veterans Business
Outreach Centers (VBOC) across the
country. Services provided by VBOC’s
include: pre-business plan workshops,
concept assessments, business plan
preparations, comprehensive feasibility
analysis, entrepreneurial training and
counseling, mentorship, and other
business-development related services.
VBOCs also provide assistance and
training in such areas as international
trade, franchising, Internet marketing,
accounting, etc. For a VBOC directory,
please visit www.sba.gov/vets.
SBA also administers two
contracting and business
development programs that are
specifcally designed to beneft
underserved communities. For
more information on the 8(a)
Business Development Program
and the HUBZone Program, see the
Contracting section.
Young Entrepreneurs
The SBA recognizes the importance
of fostering young entrepreneurs and
small business owners and their role in
the economy. The SBA offers different
activities and resources throughout
the year aimed at aspiring young
entrepreneurs, including social media
outreach and customized online courses.
The SBA also works with other federal
agencies to provide various activities
for this market (www.?ndyouthinfo.gov).
To fnd more information, visit
www.sba.gov/young.
Encore Entrepreneurs
To help meet the needs of “encore
entrepreneurs,” SBA and AARP have
joined forces to mentor, counsel,
and educate Americans age 50 and
over on how to start or grow a small
business. Through this partnership,
SBA and AARP collaborate to connect
the 50+ population to small business
development resources, including online
courses, live workshops, conferences,
and mentoring activities. For additional
information, visit www.sba.gov/encore.
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Most new business owners who
succeed have planned for every phase
of their success. Thomas Edison, the
great American inventor, once said,
“Genius is 1 percent inspiration and
99 percent perspiration.” That same
philosophy also applies to starting a
business.
First, you’ll need to generate a little
bit of perspiration deciding whether
you’re the right type of person to start
your own business.
IS ENTREPRENEURSHIP
FOR YOU?
There is simply no way to eliminate
all the risks associated with starting
a small business, but you can improve
your chances of success with good
planning, preparation and insight.
Start by evaluating your strengths and
weaknesses as a potential owner and
manager of a small business. Carefully
consider each of the following
questions:
• Are you a self-starter? It will
be entirely up to you to develop
projects, organize your time, and
follow through on details.
• How well do you get along with
different personalities? Business
owners need to develop working
relationships with a variety
of people including customers,
vendors, staff, bankers,
employees and professionals
such as lawyers, accountants, or
consultants. Can you deal with a
demanding client, an unreliable
vendor, or a cranky receptionist
if your business interests demand
it?
• How good are you at making
decisions? Small business
owners are required to make
decisions constantly – often
quickly, independently, and
under pressure.
• Do you have the physical and
emotional stamina to run a
business? Business ownership
can be exciting, but it’s also a
lot of work. Can you face six or
seven 12–hour workdays every
week?
• How well do you plan and
organize? Research indicates
that poor planning is responsible
for most business failures. Good
organization — of fnancials,
inventory, schedules, and
production — can help you avoid
many pitfalls.
• Is your drive strong enough?
Running a business can wear
you down emotionally. Some
business owners burn out quickly
from having to carry all the
responsibility for the success
of their business on their own
shoulders. Strong motivation
will help you survive slowdowns
and periods of burnout.
• How will the business affect
your family? The frst few years
of business start-up can be hard
on family life. It’s important for
family members to know what
to expect and for you to be able
to trust that they will support
you during this time. There also
may be fnancial diffculties until
the business becomes proftable,
which could take months or
years. You may have to adjust to
a lower standard of living or put
family assets at risk.
Once you’ve answered these
questions, you should consider what
type of business you want to start.
Businesses can include franchises,
at-home businesses, online businesses,
brick-and-mortar stores or any
combination of those.
FRANCHISING
There are more than 3,000 business
franchises. The challenge is to decide
on one that both interests you and is
a good investment. Many franchising
experts suggest that you comparison
shop by looking at multiple franchise
opportunities before deciding on the
one that’s right for you.
Some of the things you should
look at when evaluating a franchise:
historical proftability, effective
fnancial management and other
controls, a good image, integrity
and commitment, and a successful
industry.
In the simplest form of franchising,
while you own the business, its
operation is governed by the terms
of the franchise agreement. For
many, this is the chief beneft for
franchising. You are able to capitalize
on a business format, trade name,
trademark and/or support system
provided by the franchisor. But you
operate as an independent contractor
with the ability to make a proft or
sustain a loss commensurate with your
ownership.
If you are concerned about starting
an independent business venture, then
franchising may be an option for you.
Remember that hard work, dedication
and sacrifce are key elements in
the success of any business venture,
including a franchise.
Visit www.sba.gov/franchise for more
information.
HOME-BASED BUSINESSES
Going to work used to mean
traveling from home to a plant, store
or offce. Today, many people do some
or all their work at home.
Getting Started
Before diving headfrst into a home-
based business, you must know why
you are doing it. To succeed, your
business must be based on something
greater than a desire to be your
own boss. You must plan and make
improvements and adjustments along
the road.
Working under the same roof where
your family lives may not prove to be
as easy as it seems. One suggestion is
to set up a separate offce in your home
to create a professional environment.
Ask yourself these questions:
• Can I switch from home
responsibilities to business work
easily?
• Do I have the self-discipline to
maintain schedules while at home?
• Can I deal with the isolation of
working from home?
Legal Requirements
A home-based business is subject to
many of the same laws and regulations
affecting other businesses.
Some general areas include:
• Zoning regulations. If your
business operates in violation of
them, you could be fned or shut
down.
• Product restrictions. Certain
products cannot be produced in
the home. Most states outlaw
home production of freworks,
drugs, poisons, explosives,
sanitary or medical products and
toys. Some states also prohibit
home-based businesses from
making food, drink or clothing.
Be sure to consult an attorney and
your local and state departments of
labor and health to fnd out which
laws and regulations will affect
your business. Additionally, check
on registration and accounting
requirements needed to open your
home-based business. You may need
a work certifcate or license from the
state. Your business name may need
to be registered with the state. A
separate business telephone and bank
account are good business practices.
Also remember, if you have
employees you are responsible for
withholding income and Social-
Security taxes, and for complying with
minimum wage and employee health
and safety laws.
ARE YOU RIGHT FOR SMALL BUSINESS OWNERSHIP?
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WRITING A BUSINESS PLAN
After you’ve thought about what type
of business you want, the next step is
to develop a business plan. Think of
the business plan as a roadmap with
milestones for the business. It begins
as a pre-assessment tool to determine
proftability and market share, and
then expands as an in-business
assessment tool to determine success,
obtain fnancing and determine
repayment ability, among other factors.
Creating a comprehensive business
plan can be a long process, and you
need good advice. The SBA and its
resource partners, including Small
Business Development Centers,
Women’s Business Centers, Veterans
Business Outreach Centers, and
SCORE, have the expertise to help
you craft a winning business plan. The
SBA also offers online templates to get
you started.
In general, a good business plan
contains:
Introduction
• Give a detailed description of the
business and its goals.
• Discuss ownership of the business
and its legal structure.
• List the skills and experience you
bring to the business.
• Discuss the advantages you
and your business have over
competitors.
Marketing
• Discuss the products and services
your company will offer.
• Identify customer demand for your
products and services.
• Identify your market, its size and
locations.
• Explain how your products and
services will be advertised and
marketed.
• Explain your pricing strategy.
Financial Management
• Develop an expected return on
investment and monthly cash
fow for the frst year.
• Provide projected income
statements and balance sheets for
a two-year period.
• Discuss your break-even point.
• Explain your personal
balance sheet and method of
compensation.
• Discuss who will maintain your
accounting records and how they
will be kept.
• Provide “what if” statements
addressing alternative
approaches to potential problems.
Operations
• Explain how the business will be
managed day-to-day.
• Discuss hiring and personnel
procedures.
• Discuss insurance, lease or rent
agreements.
• Account for the equipment
necessary to produce your goods
or services.
• Account for production and
delivery of products and services.
Concluding Statement
Summarize your business goals
and objectives and express your
commitment to the success of your
business. Once you have completed
your business plan, review it with
a friend or business associate and
professional business counselor
like SCORE, WBC or SBDC
representatives, SBA district offce
economic development specialists
or veterans’ business development
specialists.
Remember, the business plan is a
fexible document that should change
as your business grows.
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any entrepreneurs need
fnancial resources to start
or expand a small business
and must combine what
they have with other
sources of fnancing. These sources can
include family and friends, venture-
capital fnancing and business loans.
This section of the Small Business
Resource guide discusses SBA’s primary
business loan and equity fnancing
programs. These are: the 7(a) Loan
Program, the Certifed Development
Company or 504 Loan Program, the
Microloan Program and the Small
Business Investment Company
Program. The distinguishing features
for these programs are the total dollar
amounts that can be borrowed, the type
of lenders who can provide these loans,
the uses for the loan proceeds and the
terms placed on the borrower. The SBA
does not provide grants to individual
business owners to start or grow a
business.
SBA BUSINESS LOANS
If you are contemplating a business
loan, familiarize yourself with the SBA’s
business loan programs to see if they
may be a viable option. The SBA has
a variety of loan programs which are
distinguished by their different uses of
the loan proceeds, their dollar amounts,
and the requirements placed on the
actual lenders. The three principal
players in most of these programs
are the applicant small business, the
lender and the SBA. The Agency
does not actually provide the loan,
but rather they guaranty a portion of
the loan provided by a lender (except
for microloans). The lender can be a
regulated bank or credit union, or a
community based lending organization.
The business applies directly to a
lender by providing them the documents
they require. Generally an application
includes a business plan that explains
what resources will be needed to
accomplish the desired business
purpose including the associated costs,
the applicants’ contribution, planned
uses for the loan proceeds, a listing
of the assets that will secure the loan
(collateral), a history of the business
and explanation of how the business
generates income, and most important,
an explanation of how the business will
be able to repay the loan in a timely
manner.
The lender will analyze the
application to see if it meets their
criteria and make a determination if
they will need an SBA guaranty in
order to provide the loan. SBA will
look to the lender to do much, if not
all, of the analysis before it provides
its guaranty to the lender’s proposed
loan. The SBA’s business loan guaranty
programs provide a key source of
fnancing for viable small businesses
that have real potential but cannot
qualify for credit on reasonable terms by
themselves.
In the case of microlenders, SBA lends
monies to intermediaries at favorable
rates so they can re-lend to businesses
with fnancing needs up to $50,000.
7(a) LOAN PROGRAM
The 7(a) Loan program is the SBA’s
primary business loan program. It
is the agency’s most frequently used
non-disaster fnancial assistance
program because of its fexibility in loan
structure, variety of uses for the loan
proceeds and availability. The program
has broad eligibility requirements and
credit criteria to accommodate a wide
range of fnancing needs.
Congress authorized SBA to provide
fnancial assistance either directly
or in cooperation with banks or
other fnancial institutions through
agreements to participate in section 7(a)
of the Small Business Act. Historically,
a 7(a) loan was provided either
directly from SBA or from regulated
lenders who provided the loan after
they obtained a guaranty from SBA.
Since 1996, all 7(a) loans have only
been provided on a guaranteed basis,
meaning from a lender participating in
the 7(a) Loan Guaranty Program.
The business loans that SBA
guarantees do not come from the
Agency, but rather from banks and
other approved lenders. The loans are
funded by these organizations and they
make the decisions to approve or deny
the applicants’ request for fnancial
assistance.
The guaranty that SBA provides
the lender reduces the lender’s risk
of borrower non-payment because
the guaranty assures the lender that
if the borrower defaults, the lender
can request that SBA pay the debt
rather than the borrower. SBA only
guarantees a portion or percentage
of every loan not the whole debt, so
in the event of default the lender will
only get partially repaid by SBA. This
means that if the borrower can’t make
the payments and defaults, the lender
can recover the guaranteed portion of
the defaulted debt from the SBA. The
borrower is still obligated for the full
amount.
CAPITAL
Financing Options to Start or Grow Your Business
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To qualify for an SBA guaranteed
loan, a small business must meet
the lender’s criteria and the 7(a)
program requirements. One of those
requirements is that the lender must
certify that it would not provide this
loan under the proposed terms and
conditions without an SBA guaranty.
If the SBA is going to provide a lender
with a guaranty, the applicant must be
eligible and creditworthy and the loan
structured under conditions acceptable
to the SBA.
The 7(a) Program includes ten (10)
types of loans which all share certain
eligibility requirements but which
also have some different requirements
so they can accommodate specifc
business needs and/or give lenders
greater fexibility with loan structure.
The most popular 7(a) loan type is the
Basic 7(a) Loan, which can be used for
the most diverse purposes. The other
nine 7(a) loan types are variations of
the Basic 7(a) Loan with different uses
for the loan proceeds and alternative
structures.
To be eligible for any of the 7(a) loans,
the recipients must be both eligible and
creditworthy. In addition the applicant
business must:
1. Be an operating business (except
for loans to Eligible Passive
Companies);
2. Be organized for proft;
3. Be located in the United States;
4. Be able to demonstrate a need for
the desired credit.
5. Be a business, along with its
Affliates, that meets SBA’s Size
Standard Requirements.
6. Be a business that is not engaged
in a prohibited business activity or
owned by a non-qualifed owner, or
located at a prohibited place.
7. Use the Loan Proceeds
for only acceptable purposes, which
includes proceeds to start-up a new
business, buy an existing business,
acquire machinery & equipment
and/or furniture & fxtures,
acquire or renovate a building
which the business will occupy,
permanent working capital, and
refnancing existing business debt
under certain conditions. Proceeds
from a Basic 7(a) cannot be used
to buy investments that are held
for their potential appreciation, or
to be provided to an associate
of the business except under very
limited circumstances.
8. Be able to demonstrate that it
can’t get the proceeds from its own
resources or those of its principal
owners and the lender must certify
that they would only approve
the loan if it is able to obtain a
guaranty from SBA.
9. Have ownership that is of Good
Character
10. Be able to satisfy any
Miscellaneous Eligibility
Requirements that may be
imposed on a loan request based
on the circumstances of the case
including, but not limited to the
purpose of the loan.
THE BASIC 7(a) LOAN
The Basic 7(a) Loan is the most
commonly provided type of SBA
business loan based on historical
dollars approved. They are the most
fexible types of SBA loans because they
can help fnance such a large variety
of business purposes for the largest
number of business types, engaged in
the widest spectrum of activities.
In the Federal Government’s 2013
Fiscal Year (October 1, 2012 to
September 30, 2013) about 80 percent
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Documentation requirements will
vary depending upon the purpose of
the loan. Contact your lender for the
information you must supply.
Common requirements include the
following:
A Business Plan that includes:
• Purpose of the loan
• History of the business
• Projections of income, expenses
and cash fow as well as an
explanation of the assumptions
used to develop these projections
• Personal fnancial statements on
the principal owners
• Resume(s) of the principal
owners and managers.
• Amount of investment in the
business by the owner(s)
• Projected opening-day balance
sheet (new businesses)
• Lease details
• Proposed Collateral
Financial Statements that include:
• Balance Sheet and Income
Statement (P&L) for three
years (existing businesses) (Tax
Returns usually suffce)
• Interim Financial Statements
dated within 180 days of the
request for assistance
• Schedule of term debts (existing
businesses)
• Aging of accounts receivable and
payable (existing businesses)
How the 7(a) Program Works
Small Business applicant assembles
their request for fnancing based on
the intended purpose of the proposed
loan and what documents the lender
requires. A loan to help a moving
company acquire a new truck will be
less involved than a loan to acquire or
start-up a business. The paperwork
can be completed on either a business
loan application provided by the lender
or an SBA application, but using the
SBA forms does not actually increase
the change an applicant has in getting
a business loan. The applicant then
submits their loan application to a
lender for the initial review. If the
applicant is applying for their frst
business loan, it is recommended that
the selected lender be the one who
maintains the personal account of the
owner(s).
The lender will generally review
the credit merits of the request before
deciding if they will make the loan
themselves or if they will need an SBA
guaranty. If a guaranty is needed, the
lender will also review the application
for SBA eligibility. The applicant
should be prepared to complete some
additional documents if the lender
says they need an SBA guaranty for
approval. Applicants who feel they
need more help with the process
should contact their local SBA district
offce or one of the SBA’s resource
partners for assistance.
There are several ways a lender
can request a 7(a) Guaranty for a
proposed business loan from SBA.
The main differences between these
processing methods are based on
the experience the lender has in
requesting guarantees from SBA, the
documentation the lender provides to
SBA, the amount of review the SBA
conducts after receiving the request,
the amount of the loan and the lender
responsibilities in case the loan
defaults and the business’ assets must
be liquidated. The current different
processing methods are:
• Standard 7(a) Guaranty
• Certifed Lender Program
• Preferred Lender Program
• SBA Express
• Export Express
• Community Advantage
When a lender requests a 7(a)
guaranty for a business loan they
propose to provide a small business
their application consist of two parts.
The applicant flls out SBA Form 1919
while the lender completes SBA Form
1920. The Form 1919 is designed for
the applicant to explain what they
intend to do with the money and how
they will repay the loan. The Form
1920 requires the lender to explain
their analysis of the eligibility and
credit merits of the request.
When the request loan amount is
smaller (generally under $350,000) the
lender is allowed to provide SBA with
less information in their application
for guaranty but that does not mean
the applicant business can provide
the lender with less information.
The lender has the ability to ask the
applicant for as much detail as they
believe is necessary for them to make
their decision on the specifc request.
When the SBA receives a request
for guaranty from a lender they will
either re-analyze, review or trust the
lender’s eligibility and credit analysis
before deciding to approve or reject the
request. See the section on 7(a) Loan
Processing from Lenders later on in
this article for more detail on what
SBA does when it receives a request
for guaranty from the lender.
By guaranteeing a loan, the SBA
assures the lender that, in the event
the borrower does not repay the loan,
the government will reimburse the
lending institution for a percentage of
the amount owed. By providing this
guaranty, the SBA is able to help tens
of thousands of small businesses every
year get fnancing they might not
otherwise obtain.
When SBA approves a guaranty they
notify the lender who will work with
the applicant to make sure the terms
and conditions designed for the specifc
loan are met before closing. The
lender also disburses the funds and
assumes responsibility for collecting
the payments and general servicing.
The borrower makes loan payments
directly to the lender. As with any
loan, the borrower is obligated to
repay the full amount of the loan in a
timely manner.
What the SBA Looks for:
• Ability to repay the loan on time
from the projected operating cash
fow;
• Owners and operators who are of
good character;
• Feasible business plan;
• Management expertise and
commitment necessary for
success;
• Suffcient funds, including
(but not limited to) the SBA
guaranteed loan, to operate the
business on a sound fnancial
basis (for new businesses, this
includes the resources to meet
start-up expenses and the initial
operating phase);
• Adequate equity invested in the
business; and
• Enough collateral to fully secure
the loan or, all worthwhile
available business collateral plus
personal real estate if the loan
cannot be fully secured.
The Impact of a Credit Score
SBA also credit scores every
business that is a potential recipient of
a loan guaranteed by SBA. If the loan
is for $350,000 or less, the credit score
obtained will have a signifcant impact
on the amount of work the lender has
to complete when applying for an SBA
guaranty. As such it is important
for any owner of a potential business
loan to be aware of their credit score
and correct any discrepancies prior to
approaching their lender.
What to Take to the Lender
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of the dollars and 38 percent of the
number of all 7(a) loans guaranteed
by SBA were Basic 7(a) Loans. The
reciprocal percentages were divided
between the nine other 7(a) Programs.
The Basic 7(a) Loan is a term loan
usually repaid with one monthly
payment of principal and interest.
Interest only repayment periods are
permitted when needed, such as for a
start-up business that doesn’t achieve
breakeven in its initial months of
operation. Other repayment structures
are also permitted depending upon the
borrower’s needs and the fexibility of
the lender.
A Basic 7(a) Loan does not revolve
so the sum of the disbursements is
the loan amount. SBA can guaranty
revolving lines of credit, but that is
accomplished through some of the nine
variations to the Basic 7(a) Loan.
The following aspects of the Basic 7(a)
Loan are also applicable to all other 7(a)
Loan unless specifcally referenced as
not applying to a specifc Special 7(a)
Loan.
Percentage of Guarantees and Loan
Maximums
SBA only guarantees a portion
of any particular 7(a) loan so each
loan will have an SBA share and an
unguaranteed portion which gives the
lender a certain amount of exposure
and risk on each loan. The percentage
of guaranty depends on either the dollar
amount or the program the lender
uses to obtain its guaranty. For loans
of $150,000 or less the SBA generally
guarantees as much as 85 percent
and for loans over $150,000 the SBA
generally provides a guaranty of up to
75 percent.
The maximum dollar amount of a
single 7(a) loan is $5 million and there
is no minimum. The maximum dollar
amount of the SBA share which can be
provided to any one business (including
affliates) is $3,750,000.
Interest Rates
The actual interest rate for a 7(a) loan
guaranteed by the SBA is negotiated
between the applicant and lender
but is subject to the SBA maximums.
Both fxed and variable interest rate
structures are available. The maximum
rate comprises two parts, a base rate
and an allowable spread. There are
three acceptable base rates (Wall Street
Journal Prime*, London Interbank One
Month Prime plus 3 percent, and an
SBA Peg Rate). Lenders are allowed
to add an additional spread to the base
rate to arrive at the fnal rate. For
loans with maturities of less than seven
years, the maximum spread will be no
more than 2.25 percent. For loans with
maturities of seven years or more, the
maximum spread will be 2.75 percent.
The spread on loans under $50,000
and loans processed through Express
procedures have higher maximums.
Most 7(a) term loans are repaid
with monthly payments of principal
and interest. For fxed-rate loans the
payments stay the same because the
interest rate is constant. For variable
rate loans the lender can change the
payment amount when the interest
rates change. Applicants can request
that the lender establish the loan with
interest-only payments during the start-
up and expansion phases (when eligible)
to allow the business time to generate
income before it starts making full loan
payments.
Guaranty and Other Fees
Loans guaranteed by the SBA are
assessed a guaranty fee. This fee is
based on the loan’s maturity and the
dollar amount guaranteed, not the total
dollar amount of the loan. The guaranty
fee is initially paid by the lender and
then passed on to the borrower at
closing. The funds the business needs
to reimburse the lender can be included
in the overall loan proceeds.
On any loan with a maturity of one
year or less, the fee is just 0.25 percent
of the guaranteed portion of the loan.
On loans with maturities of more than
one year, the normal guaranty fee is:
• 2.0 percent of the SBA guaranteed
portion on loans up to $150,000; **
• 3.0 percent on loans over $150,000
but not more than $700,000; and
• 3.5 percent on loans over $700,000.
There is also an additional fee of
0.25 percent on any guaranteed
portion over $1 million.
* All references to the prime rate
refer to the base rate in effect on the
?rst business day of the month the loan
application is received by the SBA.
** For all SBA-guaranteed loans of
$150,000 or less that are approved
between October 1, 2014 and September
30, 2015, the guaranty fee will be 0%.
Beneft For Veterans and/or
Spouses: Any guaranteed loans
approved to businesses owned by
Veterans of any era or their Spouses
during fscal year 2015 (October 1,
2014 through September 30, 2015 will
receive the beneft of having its regular
guaranty fee reduced by 50%, when the
loan is over $150,000 .
The lender may not charge a
prepayment penalty if the loan is paid
off before maturity but the SBA will
charge the borrower a prepayment fee
if the loan has a maturity of 15 or more
years and is pre-paid during the frst
three years.
7(a) Loan Maturities
The SBA’s loan programs are
generally intended to encourage longer
term small-business fnancing, but
actual loan maturities are based on
the ability to repay, the purpose of the
loan proceeds and the useful life of the
assets fnanced. Maturity generally
ranges from 7 to 10 years for working
capital, business start-ups, and business
acquisition type loans, and up to 25
years if the purpose is to acquire real
estate or fxed assets with a long term
useful life.
Collateral
The SBA expects every 7(a) loan
to be secured frst with the assets
acquired with the loan proceeds and
then with additional business and
personal assets, depending upon the
loan amount and the way the lender
requests their guaranty. However, SBA
will not decline a request to guaranty
a loan if the only unfavorable factor
is insuffcient collateral, provided all
available collateral is offered. When
the lender says they will need an
SBA guaranty, the applicant should
be prepared for liens to be placed
against all business assets. Personal
guaranties are required from all the
principal owners of the business. Liens
on personal assets of the principals
may also be required. SBA does
not require any collateral for any 7(a)
guaranteed loan for $25,000 or less but
the lender can require collateral if they
chose.
Loan Structure
The structure of a Basic 7(a) Loan
is that repayment has to be set up so
the loan is paid in full by maturity.
Over the term of the loan there can
be additional payments or payment
relaxation depending on what Is
happening with the business. Balloon
payments and call provisions are not
allowed on any 7(a) term loan.
Eligibility
7(a) loan eligibility is based on a
number of different factors, ranging
from Size and Nature of Business to
Use of Proceeds and factors that are
case specifc.
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Size Eligibility
The frst eligibility factor is size, as
all loan recipients must be classifed as
“small” by the SBA. The size standards
for all 7(a) loans are outlined below. A
more in-depth listing of standards can
be found at: www.sba.gov/size.
SBA Size Standards have the following
general ranges:
• Manufacturing — from 500 to 1,500
employees
• Wholesale Trades — Up to 100
employees
• Services — $2 million to $35.5
million in average annual receipts
• Retail Trades — $7 million to $35.5
million in average annual receipts
• Construction — $7 million to $33.5
million in average annual receipts
• Agriculture, Forestry, Fishing,
and Hunting — $750,000 to $17.5
million in average annual receipts
There is an alternate size standard
for businesses that do not qualify under
their industry size standards for SBA
funding. That Alternative is that the
applicant business (plus affliates can’t
have a tangible net worth exceeding
$15 million and average net income
exceeding $5 million for the last two
years. This new alternate makes
more businesses eligible for SBA loans
and applies to SBA non-disaster loan
programs, namely its 7(a) Business
Loans and Certifed Development
Company programs.
Nature of Business
The second eligibility factor is based
on the nature of the business and the
process by which it generates income or
the customers it serves. The SBA has
general prohibitions against providing
fnancial assistance to businesses
involved in such activities as lending,
speculating, passive investment,
pyramid sales, loan packaging,
presenting live performances of a
prurient nature, businesses involved in
gambling and any illegal activity.
The SBA also cannot make loan
guaranties to non-proft businesses,
private clubs that limit membership on
a basis other than capacity, businesses
that promote a religion, businesses
owned by individuals incarcerated or
on probation or parole, municipalities,
and situations where the business or
its owners previously failed to repay
a federal loan or federally assisted
fnancing, or are delinquent on existing
federal debt.
Use of Proceeds
The third eligibility factor is Use of
Proceeds. A Basic 7(a) Loan can provide
proceeds to purchase machinery,
equipment, fxtures, supplies, and
to make improvements to land and/
or buildings that will be occupied
by the subject applicant business.
Proceeds can also be used to:
• Permanent Working Capital;
• Purchase Inventory;
• Expand or renovate facilities;
• Acquire machinery, equipment,
furniture, fxtures and leasehold
improvements;
• Acquire a business;
• Start a business;
• Acquire Land and Build a Location
for the applicant business; and
• Refnance existing debt under
certain conditions.
SBA 7(a) loan proceeds cannot be
used:
• For the purpose of making
investments.
• To provide funds to any of the
owners of the business except for
ordinary compensation for actual
services provided.
• For Floor Plan Financing
• For a purpose that does not beneft
the business
Miscellaneous Factors
The fourth factor involves a variety
of requirements such as SBA’s credit
elsewhere test where the personal
resources of the owners need to be
checked to see if they can make a
contribution before getting a loan
guaranteed by the SBA. It also includes
the SBA’s anti-discrimination rules and
limitations on lending to agricultural
enterprises because there are other
agencies of the Federal government
with programs to fund such businesses.
Generally, SBA loans must meet the
following criteria:
• Every loan must be for a sound
business purpose;
• There must be suffcient invested
equity in the business so it can
operate on a sound fnancial basis;
• There must be a potential for long-
term success;
• The owners must be of good
character and reputation; and
• All loans must be so sound as to
reasonably assure repayment.
For more information, go to
www.sba.gov/apply.
SPECIAL PURPOSE
7(a) LOAN PROGRAMS
The 7(a) loan program is the most
fexible of the SBA’s lending programs.
Over time, the Agency has developed
several variations of the Basic 7(a) Loan
in order to address specifc fnancing
needs for particular types of small
businesses or to give the lender greater
fexibility with the loan’s structure.
The general distinguishing feature
between these loan types is their use
of proceeds. These programs allow the
proceeds to be used in ways that are
not otherwise permitted in a basic 7(a)
loan. These special purpose programs
are not necessarily for all businesses
but may be very useful to some small
businesses. They are generally
governed by the same rules, regulations,
fees, interest rates, etc., as the basic
7(a) loan. Lenders can advise you of any
variations. The Special Purpose Loans
include:
International Trade Loan Program
The SBA’s International Trade
Loan (ITL) is designed to help
small businesses enter and expand
into international markets or,
when adversely affected by import
competition, to make the investments
necessary to better compete. The ITL
offers a combination of fxed asset,
working capital fnancing and debt
refnancing with the SBA’s maximum
guaranty--90 percent--on the total loan
amount. The maximum loan amount is
$5 million.
Guaranty Coverage
The SBA can guaranty up to 90
percent of an ITL up to a maximum
of $4.5 million, less the amount of
the guaranteed portion of other SBA
loans outstanding to the borrower. The
maximum guaranty for any working
capital component of an ITL is limited
to $4 million. Any other working capital
SBA loans that the borrower has are
counted against the $4 million guaranty
limit.
Use of Proceeds
• For the facilities and equipment
portion of the loan, proceeds may be
used to acquire, construct, renovate,
modernize, improve or expand
facilities or equipment in the
U.S. to produce goods or services
involved in international trade,
including expansion due to bringing
production back from overseas if
the borrower exports to at least one
market.
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• Working capital is an allowable use
of proceeds under the ITL.
• Proceeds may be used for the
refnancing of debt not structured
on reasonable terms and conditions,
including any debt that qualifes for
refnancing under the standard SBA
7(a) Loan Program.
Loan Term
• Maturities on the working capital
portion of the ITL are typically
limited to 10 years.
• Maturities of up to 10 years on
equipment unless the useful life
exceeds 10 years.
• Maturities of up to 25 years are
available for real estate.
• Loans with a mixed use of fxed-
asset and working-capital fnancing
will have a blended-average
maturity.
Exporter Eligibility
• Applicants must meet the same
eligibility requirements as for the
SBA’s standard 7(a) Loan Program.
• Applicants must also establish that
the loan will allow the business to
expand or develop an export market
or demonstrate that the business
has been adversely affected by
import competition and that the ITL
will allow the business to improve
its competitive position.
Foreign Buyer Eligibility
Foreign buyers must be located in
those countries where the Export-
Import Bank of the U.S. is not
prohibited from providing fnancial
assistance.
Collateral Requirements
• Only collateral located in the
U.S. (including its territories and
possessions) is acceptable.
• First lien on property or equipment
fnanced by the ITL or on other
assets of the business is required.
However, an ITL can be secured
by a second lien position if the
SBA determines there is adequate
assurance of loan repayment.
• Additional collateral, including
personal guaranties and those
assets not fnanced with ITL
proceeds, may be appropriate.
A small business wanting to qualify
as adversely impacted from import
competition must submit supporting
documentation that explains the
impact, and a plan with projections
that explains how the loan will
improve the business’ competitive
position.
Export Working Capital Program
The SBA’s Export Working Capital
Program (EWCP) assists businesses
exporters in meeting their short-term
export working capital needs. Exporters
can use the proceeds to make the
products they will be exporting. They
can also apply for such lines of credit
prior to fnalizing an export sale or
contract. With an approved EWCP
loan in place, exporters have greater
fexibility in negotiating export payment
terms—secure in the assurance that
adequate fnancing will be in place
when the export order is won.
Bene?ts of the EWCP
• Financing for suppliers, inventory
or production of export goods.
• Export working capital during long
payment cycles.
• Financing for stand-by letters of
credit used as bid or performance
bonds or advance payment
guarantees.
• Reserves domestic working capital
for the company’s sales within the
U.S.
• Permits increased global
competitiveness by allowing the
exporter to extend more liberal sales
terms.
• Increases sales prospects in under-
developed markets which may have
high capital costs for importers.
• Low fees and quick processing
times.
Guaranty Coverage
• Maximum loan amount is
$5,000,000.
• 90 percent of principal and accrued
interest up to 120 days.
• Low guaranty fee of one-quarter
of one percent of the guaranteed
portion for loans with maturities of
12 months or less.
• Loan maturities are generally for 12
months or less, but can be up to a
maximum of 36 months.
Use of Proceeds
• To pay for the manufacturing costs
of goods for export.
• To purchase goods or services for
export.
• To support standby letters of credit
to act as bid or performance bonds.
• To fnance foreign accounts
receivable.
Interest Rates
The SBA does not establish or
subsidize interest rates on loans. The
interest rate can be fxed or variable
and is negotiated between the borrower
and the participating lender.
Advance Rates
• Up to 90 percent on purchase
orders.
• Up to 90 percent on documentary
letters of credit.
• Up to 90 percent on foreign
accounts receivable.
• Up to 75 percent on eligible foreign
inventory located within the U.S.
• In all cases, not to exceed the
exporter’s costs.
Collateral Requirements
The export-related inventory and the
receivables generated by the export
sales fnanced with EWCP funds
generally will be considered adequate
collateral. The SBA requires the
personal guarantee of owners with 20
percent or more ownership.
How to apply
Application is made directly to SBA-
participating lenders. Businesses are
encouraged to contact SBA staff at their
local U.S. Export Assistance Center
(USEAC) to discuss whether they are
eligible for the EWCP and whether it is
the appropriate tool to meet their export
fnancing needs. Participating lenders
review/approve the application and
submit the guaranty request to SBA
staff at the local USEAC.
CAPLines
The CAPLines Program Is designed
to help small businesses meet their
short-term and cyclical working capital
needs. The programs can be used to
fnance seasonal working capital needs;
fnance the direct costs of performing
certain construction, service and supply
contracts, subcontracts, or purchase
orders; fnance the direct cost associated
with commercial and residential
construction; or provide general working
capital lines of credit. The maturity
can be for up to 10 years except for
the Builders Capline which is limited
to 36 months after the frst structure
is completed. Guaranty percentages
are the same as for a Basic 7(a) Loan.
There are four distinct short term loan
programs under the CAPLine umbrella:
• The Contract Loan Program is
used to fnance the cost associated
with contracts, subcontracts, or
purchase orders. Proceeds can be
disbursed before the work begins. If
used for one contract or subcontract,
it is generally not revolving; if
used for more than one contract
or subcontract at a time, it can be
revolving. The loan maturity is
usually based on the length of the
contract, but no more than 10 years.
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Contract payments are generally
sent directly to the lender but
alternative structures are available.
• The Seasonal Line of Credit
Program is used to support
buildup of inventory, accounts
receivable or labor and materials
above normal usage for seasonal
inventory. The business must have
been in business for a period of 12
months and must have a defnite
established seasonal pattern. The
loan may be used over again after
a “clean-up” period of 30 days to
fnance activity for a new season.
These loans also may have a
maturity of up to fve years. The
business may not have another
seasonal line of credit outstanding
but may have other lines for non-
seasonal working capital needs.
• The Builders Line Program
provides fnancing for small
contractors or developers to
construct or rehabilitate residential
or commercial property. Loan
maturity is generally three years
but can be extended up to fve
years, if necessary, to facilitate
sale of the property. Proceeds are
used solely for direct expenses of
acquisition, immediate construction
and/or signifcant rehabilitation
of the residential or commercial
structures. The purchase of the land
can be included if it does not exceed
20 percent of the loan proceeds. Up
to 5 percent of the proceeds can be
used for physical improvements
that beneft the property.
• The Working Capital Line
Program is a revolving line of
credit (up to $5,000,000) that
provides short term working capital.
These lines are generally used by
businesses that provide credit to
their customers, or whose principle
asset is inventory. Disbursements
are generally based on the size of a
borrower’s accounts receivable and/
or inventory. Repayment comes
from the collection of accounts
receivable or sale of inventory. The
specifc structure is negotiated with
the lender. There may be extra
servicing and monitoring of the
collateral for which the lender can
charge up to 2 percent annually to
the borrower.
Other Guaranty Lines of Credit
All the Special Purpose Programs
listed above have SBA structured
repayment terms meaning the Agency
tells the lender how principal and
interest is to be repaid. These programs
also require the lender to use certain
closing forms. Lenders with the ability
to obtain 7(a) guarantees through any
of the Express processes are considered
experienced enough to be able to
structure their own repayment terms
and use their own closing documents.
With this ability the lender can tailor
a line of credit that it gets guaranteed
by SBA to the needs of the business.
Therefore, if a potential applicant sees
that the previously listed Basic 7(a) or
Special Purpose 7(a) Programs don’t
meet their needs they should discuss
their options with a lender capable of
providing an SBA Express or Export
Express loan with an SBA guaranty.
SBAExpress
The SBAExpress Loan or Line of
Credit is a fexible smaller loan up
to $350,000 that a designated lender
can provide to its borrower using
mostly their own forms, analysis and
procedures to process, structure, service,
and disburse this SBA-guaranteed
loan. When structured as a term loan
the proceeds and maturity are the
same as a Basic 7(a) Loan. When
structured as a revolving line of credit
the requirements for the payment
of interest and principal are at the
discretion of the lender and maturity
can’t exceed 7 years.
Colorado SBA Express Lenders:
Citywide Banks
10660 E. Colfax Ave.
Denver, CO
303-365-3600
CoBiz Bank
821 17th St.
Denver, CO
303-293-2265
First Colorado National Bank
133 Grand Ave.
Paonia, CO
970-527-4141
First State Bank of Colorado
102 E. Bridge St.
Hotchkiss, CO
970-872-3111
First Bank
10403 W. Colfax Ave.
Denver, CO
303-232-2000
Guaranty Bank & Trust
1331 17th St.
Denver, CO
303-293-5500
Mountain View Bank of Commerce
12365 Huron St.
Westminster, CO
303-243-5400
Steele Street Bank & Trust
55 Adams St.
Denver, CO
303-376-3800
Verus Bank of Commerce
3700 S. College Ave.
Ft Collins, CO
970-204-1010
Export Express
SBA’s Export Express loans offers
fexibility and ease of use for both
borrowers and lenders on loans up to
$500,000. It is the simplest export loan
product offered by the SBA.
Use of Proceeds
Loan proceeds may be used for
business purposes that will enhance a
company’s export development. Export
Express can take the form of a term
loan or a revolving line of credit. As
an example, proceeds can be used to
fund participation in a foreign trade
show, fnance standby letters of credit,
translate product literature for use in
foreign markets, fnance specifc export
orders, as well as to fnance expansions,
equipment purchases, and inventory or
real estate acquisitions, etc.
Ineligible Use of Proceeds
Proceeds may not be used to fnance
overseas operations other than those
strictly associated with the marketing
and/or distribution of products/services
exported from the U.S.
Interest Rates
Terms are negotiated between the
borrower and lender but interest rates
may not exceed Prime plus 4.5 percent
on loans over $50,000 and Prime plus
6.5 percent on loans of $50,000 or less.
Exporter Eligibility
Any business that has been in
operation, although not necessarily in
exporting, for at least 12 full months
and can demonstrate that the loan
proceeds will support its export
activity is eligible for Export Express.
The one year in business operations
requirement can be waived if the
applicant can demonstrate previous
successful business experience and
exporting expertise and the lender does
conventional underwriting, not relying
solely on credit scoring.
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Foreign Buyer Eligibility
The exporter’s foreign buyer must be
a creditworthy entity and not located
in countries prohibited for fnancial
support on the Export-Import Bank’s
Country Limitation Schedule and the
methods of payment must be acceptable
to the SBA and the SBA lender.
How to Apply
Interested businesses should contact
their existing lender to determine
if they are an SBA Export Express
lender. Application is made directly
to the lender. Lenders use their own
application material in addition to
SBA’s Borrower Information Form.
Lenders’ approved requests are then
submitted with a limited amount of
eligibility information to SBA’s National
Loan Processing Center for review.
7(a) LOAN PROCESSES FOR
LENDERS
There are various ways a lender can
apply to SBA for a 7(a) guaranty. Some
are designed for experienced lenders
who are fully committed to providing
business loans guaranteed by SBA to
their clientele that need them, while
others are designed for lenders with
limited experience or when there
are certain issues that require SBA
to thoroughly review the situation.
The fundamental process available
to all lenders who have signed up to
participate with SBA is called the
Standard Loan Guaranty Process. It is
used by lenders to request a guaranty
from SBA when they are new to SBA
lending or the request requires an SBA
review. Other methods of processing
a request for guaranty have less
requirements for SBA, so the time
SBA take Is less, but potentially more
requirements or responsibilities for
the lender. The determining factors
on which one is use depends on the
experience of the lender in dealing
with SBA, the complexity of the case,
the purpose of the loan, and the dollar
amount being requested.
Standard 7(a) Loan Processing
After the applicant business and
lender complete their required
documents, the lender makes
application to SBA for a guaranty
by submitting them to SBA’s Loan
Guaranty Processing Center. The
center will screen the application and, if
satisfactory complete a thorough review
of both eligibility and creditworthiness
before making the decision to approve
the issuance of a guaranty as submitted,
approve with modifcations (which
will be discussed with the lender), or
reject the request. When the lender
makes application to SBA, they have
already internally agreed to approve
the recommended loan to the applicant
if, and only if, the SBA provides a
guaranty.
Standard processing means a lender
makes their request for guaranty using
SBA Form 1920 and the applicant
completes SBA Form 1919, even if the
applicant previously completed the
lender’s required application forms.
The analysis of eligibility starts with a
review of the “Eligibility Questionnaire,”
completed by the lender. The analysis
of credit starts with a review of the
SBA Form 1920 and the lender’s credit
memo which must discuss at least six
elements:
1. Balance sheet and ratio analysis;
2. Analysis of repayment. It is not
acceptable to base repayment ability
solely on the applicant’s credit score.
3. Assessment of the management
skills of the applicant;
4. Explanation of the collateral used to
secure the loan and the adequacy of
the proposed collateral;
5. Lender’s credit history with
applicant including an explanation
of any weaknesses;
6. Current fnancial statements and
pro-forma fnancial spread. SBA
pro-forma analysis refects how
the business will look immediately
following disbursement, not one
year after disbursement.
SBA also expects that the lender’s
credit memo includes the intended
use of the loan proceeds and any
historical and current issues that
require explanation. SBA also expects
a discussion of the process by which the
applicant business generates its income
when it is not immediately obvious.
An explanation of how the business
conducts its operation is also expected.
SBA has three days to screen
and 10 days to process the request
for guaranty from the lender. Any
additional time a lender takes to make
their determination prior to requesting
a guaranty from SBA will add to the
length of time to reach a fnal decision.
If the guaranty is approved, SBA will
prepare a loan authorization outlining
the terms and conditions under which
the guaranty is provided and prepare an
approval letter for transmission to the
lender.
Certi?ed Processing
SBA has a Certifed Lenders Program
(CLP) which lenders with more
experience and commitment to SBA
lender can obtain which allows them
to request a 7(a) guaranty through a
process similar to the Standard process
except the SBA will only review the
lenders request rather than re-analyze.
Preferred Processing
SBA has a Preferred Lenders
Program (PLP) designed for lenders
who have been delegated the authority
to make both the eligibility and credit
decisions without a second look by
SBA. This process is used by the most
experienced lenders who have the
most dedicated staffs ready to review
requests for fnancial assistance from
existing and potential customers in
order to see if they need to become SBA
guaranteed loans.
SBAExpress Processing
The SBAExpress guaranty is available
to lenders as a way to obtain a guaranty
on smaller loans up to $350,000. The
program authorizes select, experienced
lenders to use mostly their own forms,
analysis and procedures to process,
structure, service, and disburse SBA-
guaranteed loans. The SBA guarantees
up to 50 percent of an SBAExpress
loan. Loans under $25,000 do not
require collateral. The use of proceeds
for a term loan is the same as for any
Basic 7(a) Loan. Like most 7(a) loans,
maturities are usually fve to seven
years for working capital and up to
25 years for real estate or equipment.
Revolving lines of credit are allowed for
a maximum of seven years.
Export Express Processing
SBA Export Express offers
fexibility and ease of use for lenders.
Participating lenders may use their
own forms, procedures and analyses.
The SBA provides the lender with an
immediate response. This loan is subject
to the same loan processing, closing,
servicing and liquidation requirements
as for other similar-sized SBA loans.
Guaranty Coverage
The SBA provides lenders with a
90 percent guaranty on loans up to
$350,000 and a 75 percent guaranty on
loans between $350,001 and $500,000.
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Community Advantage Loans
The Community Advantage Pilot
Program is aimed at helping businesses
located in underserved communities
gain access to capital by opening up 7(a)
lending to mission-focused, community-
based lenders — such as Community
Development Financial Institutions
(CDFIs), Certifed Development
Companies (CDCs), and microlenders.
These lenders provide technical
assistance and economic development
support to businesses located in
underserved markets.
The application process is the same
as for a Basic 7(a) Loan. The main
difference with this program from other
SBA 7(a) loan programs is the lender
who ultimately provides the loan funds
is not a traditional SBA lender.
Visit: www.sba.gov/advantage for more
information about this program.
CERTIFIED DEVELOPMENT
COMPANY LOAN PROGRAM
(504 LOANS)
The 504 Loan program is an economic
development program that supports
American small business growth and
helps communities through business
expansion and job creation. The 504
loan program provides long-term, fxed-
rate, subordinate mortgage fnancing
for acquisition and/or renovation of
capital assets including land, buildings
and equipment. Some refnancing is
also permitted. Most for-proft small
businesses are eligible for this program.
The types of businesses excluded from
7(a) loans (listed previously) are also
excluded from the 504 loan program.
The SBA’s 504 Certifed Development
Companies (CDC) serve their
communities by fnancing business
expansion needs. Their professional
staff works directly with borrowers to
tailor a fnancing package that meets
program guidelines and the credit
capacity of the borrower’s business.
CDCs work with banks and other
lenders to make loans in frst position
on reasonable terms, helping lenders
retain growing customers and provide
Community Reinvestment Act credit.
The SBA 504 loan is distinguished
from the SBA 7(a) loan program in
these ways:
The maximum debenture, or long-term
loan, is:
• $5 million for businesses that create
a certain number of jobs or improve
the local economy;
• $5 million for businesses that
meet a specifc public policy goal,
including loans for aiding rural
development and expansion of small
businesses owned by veterans,
women, and minorities; and
• $5.5 million for manufacturers and
energy related public policy projects.
Recent additions to the program
allow $5.5 million for each project
that reduces the borrower’s energy
consumption by at least 10 percent;
and $5.5 million for each project that
generates renewable energy fuels, such
as biodiesel or ethanol production.
Projects eligible for up to $5.5 million
under one of these two requirements
do not have to meet the job creation or
retention requirement, so long as the
CDC portfolio refects an average jobs to
debenture portfolio ratio of at least 1 job
per $65,000.
• Eligible project costs are limited
to long-term, fxed assets such
as land and building (occupied
by the borrower) and substantial
machinery and equipment.
• Most borrowers are required
to make an injection (borrower
contribution) of just 10 percent
which allows the business to
conserve valuable operating
capital. A further injection of 5
percent is needed if the business
is a start-up or new (less than two
years old), and a further injection
of 5 percent is also required if the
primary collateral will be a single-
purpose building (such as a hotel).
• Two-tiered project fnancing: A
lender fnances approximately
50 percent of the project cost and
receives a frst lien on the project
assets (but no SBA guaranty); A
CDC (backed by a 100 percent
SBA-guaranteed debenture)
fnances up to 40 percent of the
project costs secured with a junior
lien. The borrower provides the
balance of the project costs.
• Fixed interest rate on SBA
loan. The SBA guarantees
the debenture 100 percent.
Debentures are sold in pools
monthly to private investors. This
low, fxed rate is then passed on to
the borrower and establishes the
basis for the loan rate.
• All project-related costs can be
fnanced, including acquisition
(land and building, land and
construction of building,
renovations, machinery and
equipment) and soft costs, such
as title insurance and appraisals.
Some closing costs may be
fnanced.
• Collateral is typically a
subordinate lien on the assets
fnanced; allows other assets to
be free of liens and available to
secure other needed fnancing.
• Long-term real estate loans are up
to 20-year term, heavy equipment
10- or 20-year term and are self-
amortizing.
Businesses that receive 504 loans are:
• Small — net worth under $15
million, net proft after taxes under
$5 million, or meet other SBA size
standards.
• Organized for-proft.
• Most types of business — retail,
service, wholesale or manufacturing.
For information, visit
www.sba.gov/504.
Colorado Certi?ed Development
Companies:
Community Economic Development
Company of Colorado
d/b/a Small Business Finance Corporation
1175 Osage St., Ste. #110
Denver, CO 80204
Contact: Bill Bacon
303-893-8989 • 303-892-8398 Fax
Pat Berry
970-243-5442 ext. 409
Grand Junction Of?ce
Edith A. Corwin-Newberg
970-264-0496
Pagosa Springs Of?ce
[email protected]
Area of Operation – Colorado
Preferred Lending Partners, a Denver
Urban Economic Development
Corporation Company
140 E. 19th St., Ste. 202
Denver, CO 80203
Contact: Stephanie G. Gerringer, Director
303-861-4100 • 303-861-9456 Fax
[email protected]
Area of Operation - Colorado
Colorado Lending Source
518 17th St., Ste. 1800
Denver, CO 80202
Contact: Mike O’Donnell, Director
303-657-0010 • 303-657-0140 Fax
Tod Cecil
970-947-1400
Glenwood Springs Of?ce
[email protected]
Area of Operation – Colorado
Pikes Peak Regional Development
Corporation
322 S. Cascade Ave.
Colorado Springs, CO 80903
Contact: Douglas Adams
719-471-2044 • 719-471-2042 Fax
[email protected]
Area of Operation - Colorado
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SCEDD Development Company
d/b/a Business Lending Center
1104 N. Main St.
Pueblo, CO 81003
Contact: Edie McLish, Executive Director
719-545-8680 • 719-545-9908 Fax
[email protected]
Area of Operation - Colorado
Greater Salt Lake Business District
d/b/a Mountain West Small Business
Finance
2595 E. 3300 S.
Salt Lake City, UT 84109
Contact: Robert Edminster
801-474-3232 • 801-493-0111 Fax
[email protected]
Area of Operation- Moffat, Rio Blanco,
Gar?eld, Mesa, Montrose, San Miguel,
Dolores, Montezuma, and La Plata counties.
MICROLOAN PROGRAM
(LOANS UP TO $50,000)
The Microloan program provides
very small loans (up to $50,000) to
women, low-income, minority, veteran,
and other small business owners
through a network of more than 100
Intermediaries nationwide. Under
this program, the SBA makes funds
available to nonproft intermediaries
that, in turn, make the small loans
directly to start-up and existing
businesses. Entrepreneurs work directly
with the Intermediaries to receive
fnancing, and business knowledge
support. The proceeds of a microloan
can be used for working capital, or the
purchase of furniture, fxtures, supplies,
materials, and/or equipment. Microloans
may not be used for the purchase of real
estate. Interest rates are negotiated
between the borrower and the
Intermediary. The maximum term for
a microloan is six years. Because funds
are borrowed from the Intermediary,
SBA is not involved in the business loan
application or approval process. And,
payments are made directly from the
small business to the Intermediary.
The program also provides business-
based training and technical assistance
to micro-borrowers and potential micro-
borrowers to help them successfully
start or grow their businesses. Such
training and technical assistance may
include general business education,
assistance with business planning,
industry-specifc training, and other
types of training support.
Entrepreneurs and small business
owners interested in small amounts
of business fnancing should contact
the nearest SBA district offce for
information about the nearest Microloan
Program Intermediary Lender or go to
www.sba.gov/microloans.
Visit the following Colorado Microloan
Intermediaries:
Colorado Enterprise Fund
1888 Sherman St., Ste. 530
Denver, CO 80203
Contact: Alan Ramirez, Director of Lending
303-860-0242 • 303-860-0409 Fax
[email protected]
Service area: State of Colorado
Region 10 LEAP for Economic
Development
300 N. Cascade St., Ste. 1
Montrose, CO 81401
Executive Director: Michelle Haynes
Microloan Contact: Vince Fandel
970-249-2436
[email protected]
Service Area: West Central area including
Delta, Gunnison, Hinsdale, Montrose, Ouray
and San Miguel counties.
Visit us online: www.sba.gov/co 28 — Colorado Small Business Resource
STATE TRADE AND EXPORT
PROMOTION (STEP)
PROGRAM
The State Trade and Export
Promotion (STEP) Program is a pilot
export initiative to make matching-
fund awards to states to assist small
businesses enter and succeed in the
international marketplace. Activities to
support small business exporting under
the STEP Program are provided to
eligible small business concerns (“STEP
Clients”) located in states, territories,
and the District of Columbia. For more
information on the STEP program visit
www.sba.gov/internationaltrade.
SURETY BOND
GUARANTEE PROGRAM
The Surety Bond Guarantee Program
is a public-private partnership between
the Federal government and surety
companies to provide small businesses
with the bonding assistance necessary
for them to compete for public and
private contracting and subcontracting
opportunities. The guarantee provides
an incentive for sureties to bond small
businesses that would otherwise be
unable to obtain bonding. The program
is aimed at small businesses that lack
the working capital or performance
track record necessary to secure
bonding on a reasonable basis through
regular commercial channels.
Through this program, the SBA
guarantees bid, payment, performance
and ancillary bonds issued by surety
companies for individual contracts and
subcontracts up to $6.5 million. The
SBA reimburses sureties between 70
and 90 percent of losses sustained if a
contractor defaults on the contract. On
Federal contracts, SBA can guarantee
bonds on contracts up to $10 million, if
the contracting offcer certifes that a
guarantee would be in the best interest
of the Government.
SBA has two program components,
the Prior Approval Program and the
Preferred Surety Bond Program. In
the Prior Approval Program, the SBA
guarantees 90 percent of surety’s paid
losses and expenses on bonded contracts
up to $100,000, and on bonded contracts
greater than $100,000 that are
awarded to socially and economically
disadvantaged concerns, HUBZone
contractors, and veterans, and
service-disabled veteran-owned small
businesses. All other bonds guaranteed
in the Prior Approval Program receive
an 80 percent guarantee. Sureties must
obtain the SBA’s prior approval for
each bond guarantee issued. Under the
Preferred Program, the SBA guarantees
70 percent, and sureties may issue,
monitor and service bonds without the
SBA’s prior approval. Small businesses,
surety companies, and bond producers
are invited to visit our website at
www.sba.gov/osg. You may also call the
program offce at 202-205-6540.
Colorado Surety Agencies:
CB Insurance
Colorado Springs, CO
719-477-4278
CJS Bonds
Littleton, CO
720-236-8245
Cherry Creek Insurance Group
Greenwood Village, CO
720-330-7922
Colorado BW Insurance Agency
Grand Junction, CO
970-243-9012
Douglas County Insurance Group
Castle Rock, CO
720-524-9334
Hub International Insurance
Denver, CO
303-893-0300
Moody Insurance Agency
Denver, CO
303-824-6603
Mountain West Insurance
Craig, CO
970-824-8185
Rocky Mountain Surety
Englewood, CO
303-670-9600
Tom Sauer Bond Agency
Littleton, CO
303-738-3856
Wells Fargo Insurance Services
Denver, CO
303-863-6503
Willis of Colorado
Denver, CO
303-722-7776
SMALL BUSINESS
INVESTMENT COMPANY
PROGRAM
The Small Business Investment
Company (SBIC) program is a multi-
billion dollar program founded in 1958,
as one of many fnancial assistance
programs available through the U.S.
Small Business Administration. The
structure of the program is unique in
that SBICs are privately owned and
managed investment funds, licensed
and regulated by SBA, that use their
own capital plus funds borrowed with
an SBA guarantee to make equity
and debt investments in qualifying
small businesses. The funds raise
private capital and can receive SBA-
guaranteed leverage up to three times
private capital, with a leverage ceiling
of $150 million per SBIC and $225
million for two or more licenses under
common control. Licensed SBICs are
for-proft investment frms whose
incentive is to share in the success
of a small business. The U.S. Small
Business Administration does not invest
directly into small business through the
SBIC Program, but provides funding
through SBA guarantee debentures
to qualifed investment management
frms with expertise in certain sectors or
industries.
THE SMALL BUSINESS
INNOVATION RESEARCH
PROGRAM
The Small Business Innovation
Research (SBIR) program is a highly
competitive program that encourages
domestic small businesses to engage
in Federal Research/Research and
Development (R/R&D) that has the
potential for commercialization.
Through a competitive awards-
based program, SBIR enables small
businesses to explore their technological
potential and provides the incentive to
proft from its commercialization. By
including qualifed small businesses
in the nation’s R&D arena, high-tech
innovation is stimulated and the United
States gains entrepreneurial spirit
as it meets its specifc research and
development needs.
SBIR Program Eligibility
Only United States small businesses
are eligible to participate in the SBIR
program. An SBIR awardee must meet
the following criteria at the time of
Phase I and II awards:
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1. Organized for proft, with a place
of business located in the United
States;
2. No more than 500 employees,
including affliates;
3. Be a concern which is more than
50% directly owned and controlled
by one or more individuals (who
are citizens or permanent resident
aliens of the United States),
other small business concerns
(each of which is more than 50%
directly owned and controlled by
individuals who are citizens or
permanent resident aliens of the
United States), or any combination
of these;
4. Be a concern which is more than
50% owned by multiple venture
capital operating companies, hedge
funds, private equity frms, or any
combination of these (for agencies
electing to use the authority in 15
U.S.C. 638(dd)(1)); or
5. Be a joint venture in which each
entity to the joint venture must
meet the requirements set forth in
paragraph (a)(1)(i) or (a)(1)(ii) of
this section. A joint venture that
includes one or more concerns
that meet the requirements of
paragraph (a)(1)(ii) of this section
must comply with §121.705(b)
concerning registration and
proposal requirements.
6. No single venture capital operating
company, hedge fund, or private
equity frm may own more than
50% of the concern.
7. For awards from agencies using the
authority under 15 U.S.C. 638(dd)
(1), an awardee may be owned and
controlled by more than one VC,
hedge fund, or private equity frm
so long as no one such frm owns a
majority of the stock.
8. If an Employee Stock Ownership
Plan owns all or part of the
concern, each stock trustee and
plan member is considered an
owner.
9. If a trust owns all or part of the
concern, each trustee and trust
benefciary is considered an owner.
10. Phase I awardees with multiple
prior awards must meet the
benchmark requirements for
progress toward commercialization.
SBIR-Participating Agencies
Each year, Federal agencies with
extramural research and development
(R&D) budgets that exceed $100 million
are required to reserve 2.9% (FY 15)
of the extramural research budget
for SBIR awards to small businesses.
These agencies designate R&D topics
and accept proposals. Currently, eleven
agencies participate in the SBIR
program:
• Department of Agriculture
• Department of Commerce -
National Institute of Standards and
Technology
• Department of Commerce -
National Oceanic and Atmospheric
Administration
• Department of Defense
• Department of Education
• Department of Energy
• Department of Health and Human
Services
• Department of Homeland Security
• Department of Transportation
• Environmental Protection Agency
• National Aeronautics and Space
Administration
• National Science Foundation
For additional information visit
www.sbir.gov.
SMALL BUSINESS
TECHNOLOGY TRANSFER
PROGRAM
Small Business Technology Transfer
(STTR) is another program that
expands funding opportunities in
the federal innovation research and
development (R&D) arena. Central to
the program is expansion of the public/
private sector partnership to include
the joint venture opportunities for
small businesses and nonproft research
institutions. The unique feature of
the STTR program is the requirement
for the small business to formally
collaborate with a research institution
in Phase I and Phase II. STTR’s most
important role is to bridge the gap
between performance of basic science
and commercialization of resulting
innovations.
STTR Program Eligibility
Only United States small businesses
are eligible to participate in the STTR
program. The small business must meet
all of the following criteria at time of
award:
• Organized for proft, with a place
of business located in the United
States;
• At least 51 percent owned
and controlled by one or more
individuals who are citizens of, or
permanent resident aliens in, the
United States, and;
• No more than 500 employees,
including affliates.
The nonproft research institution
must also meet certain eligibility
criteria:
• Located in the US
• Meet one of three defnitions:
• Nonproft college or university
• Domestic nonproft research
organization
• Federally funded R&D center
(FFRDC)
STTR differs from SBIR in three
important aspects:
1. The SBC and its partnering
institution are required to
establish an intellectual property
agreement detailing the allocation
of intellectual property rights
and rights to carry out follow-
on research, development or
commercialization activities.
2. STTR requires that the SBC
perform at least 40% of the R&D
and the single partnering research
institution to perform at least 30%
of the R&D.
3. Unlike the SBIR program, STTR
does not require the Principal
Investigator to be primarily
employed by the SBC.
STTR-Participating Agencies
Each year, Federal agencies with
extramural research and development
(R&D) budgets that exceed $1 billion
are required to reserve 0.40% (FY 15)
of the extramural research budget for
STTR awards to small businesses.
These agencies designate R&D topics
and accept proposals. Currently, fve
agencies participate in the STTR
program:
• Department of Defense
• Department of Energy
• Department of Health and Human
Services
• National Aeronautics and Space
Administration
• National Science Foundation
For additional information visit
www.sbir.gov.
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The old adage “time is money” is
perhaps one of the most pertinent
statements that you can apply to
small business owners. Whether
you’re starting a business or managing
a growing one, entrepreneurs and
business owners wear many hats and
have many questions:
• What laws and regulations apply
to my business?
• How do I start to write a business
plan?
• Where can I get help with X, Y
and Z?
Many of us invariably turn to our
networks and the Internet to fnd
answers. But how can you trust that
the information you are getting is truly
applicable to your business and, let’s
face it, even accurate?
As part of its mission to help
business owners start, succeed and
grow, SBA, through the SBA.gov
website has developed numerous
online tools and guides to help
small businesses get information
and answers they need quickly and
effciently. For example, these
10 Steps to Starting a Business
and these 10 Steps to Hiring your
First Employee guides are essential
reading. Then there are the Licenses
and Permits Search Tool and the
Loans and Grants Search Tool.
New Online Tools to Help Business Owners
Plan, Manage and Grow
Over the past couple of months, the
SBA has expanded its capacity and
selection of tools and information that
business owners need by developing
a whole range of new online features!
Check them out:
1. Get to Know Your Market and
Competition Better with the SizeUp Tool
Want to know how your business
stacks up against the competition?
Where your potential competitors
are located? Where the best places
are to advertise your business?
These are all critical inputs
for your business plan and can
also help back up any fnancing
applications.
Now with the new SizeUp tool you
can crunch millions of data points
and get customizable reports and
statistics about your business and
its competition. Just enter your
industry, city, state and other
details. SizeUp then runs various
reports and provides maps and
data related to your competition,
suppliers and customers. It also
highlights potential advertising
opportunities.
2. Build a Business Plan Tool
Business planning can seem a
daunting task, but it doesn’t have
to be that way. To help you plan
and steer your business, this new
“Build a Business Plan” tool
guides you through the process
of creating a basic, downloadable
business plan. The great thing
about it is you can build a plan in
smaller chunks of time, save your
progress and return at your leisure.
To use the tool, simply log into
SBA.gov and enter information into
a template for each section of the
business plan including, market
analysis, company description and
fnancial projections. The tool is
secure and confdential and will
keep your plan on record for up
to six months. You can also save,
download or email the plan at any
time.
3. Size Standards Tool - Find Out Fast if You
Qualify for Government Contracts
In order to be eligible to sell to
the government and compete
for small business “set-aside”
contracts, business owners had to
rummage through various rules
and matrices to fnd out if their
business is truly “small” according
to SBA size standards. Now,
with this new Size Standards
Tool, you can follow three simple
steps to cut through the guesswork
and quickly fnd out if you qualify
for government contracting
opportunities. SBA also offers
other resources including
government contracting
training courses, and guides
to help you register as a
contractor.
4. Events Calendar - Locate Business
Training and Seminars
SBA and its partners, including
Small Business Development
Centers, Women’s Business
Centers, and SCORE, hold
hundreds of small business
training seminars and workshops
across the country. Until now,
there was no single repository
for these events. Now, with
SBA’s Events Calendar, you
can quickly fnd and sign up for
training. Enter a date range and/
or zip code to locate events in your
area. Results are fltered by topic
such as “starting a business,”
“managing a business,” “business
planning,” and “fnancing a
business.”
SBA ONLINE: WEB-BASED TOOLS FOR BUSINESS OWNERS
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Loan Programs for Businesses
Ways borrowers can use the money
(Information current as of 03/03/2015)
Program Who Qualifes Use of Proceeds Maturity Maximum Loan
Amount
Structure Benefts to
Borrower
Basic 7(a) For proft businesses
that can meet SBA’s
size standards,
nature of business,
use of proceeds,
credit elsewhere, and
other miscellaneous
eligibility factors.
Acquire land; purchase
existing building; convert,
expand or renovate
buildings; construct
new buildings; acquire
and install fxed assets;
acquire inventory;
purchase supplies and
raw materials; purchase a
business, start a business,
leasehold improvements,
term working capital; and,
under certain conditions,
to refnance certain
outstanding debts.
Based on the use
of proceeds and
borrower’s ability to
repay. Not based on
collateral. Maximum
maturity: 10 years
for working capital
(seven years is
common), 10 years
for fxed assets,
25 years for real
estate.
A Basic 7(a) can be
for as much as $5
million. SBA’s limit
to any one business
is $3.75 million so
a business can
have multiple loans
guaranteed by SBA
but the guaranteed
portion combined
cannot exceed
$3.75 million.
Term loans with one
monthly payment of
principal and interest
(P&I). Borrower
contribution required.
Interest rate depends
upon how lender applies
for guaranty (see lender
program chart). Cannot
revolve, no balloon or
call provisions.
Business can
obtain fnancing
not otherwise
available, fxed
maturity, available
when collateral
is limited. Can
establish or re-
affrm relationship
with lender.
International
Trade Loan
(ITL)
Same as Basic
7(a), plus, business
must be engaged or
preparing to engage
in exporting or be
adversely affected
by competition from
imports.
Acquire, renovate,
modernize facilities or
equipment used in making
products or services to
be exported, plus, for
permanent working capital
and to refnance business
debts currently on
unreasonable terms.
Same as Basic 7(a). Same as Basic
7(a), but when
borrower has both
international trade
and working capital
loans guaranteed by
the SBA, the limit to
any one business is
$4 million.
Same as Basic 7(a). Same as Basic
7(a). Plus, long-
term fnancing
for export-related
fxed assets and
working capital.
Export
Working
Capital Loan
(EWCP)
Same as Basic 7(a).
Plus, must be in
business one year
and engaged or
preparing to engage
in exporting.
Short-term working capital
to cover the costs of flling
export orders, including
ability to support an Export
Stand-By Letter of Credit.
Can be up to a
maximum of 36
months but generally
12 months or less.
Gross loan amount
$5.0 million. SBA
guaranteed portion
$4.5 million
Finance single or
multiple transactions.
Interest paid monthly,
principal paid as
payments from items
shipped overseas
are collected. Can be
renewed annually. Extra
fees apply. Percentage
of guaranty up to 90%.
Generally revolving.
Provides U.S.
exporters with a
line of credit that
can be separated
from domestic
operations line of
credit.
Can be used to
fnance 100% of
the cost of flling
export orders.
Seasonal
CAPlines
Same as Basic 7(a).
Plus, in business
for at least one year
and can demonstrate
seasonal fnancing
needs.
To fnance the seasonal
increases of accounts
receivable, inventory and
labor.
10 years Same as Basic 7(a). Short-term fnancing for
seasonal activities to be
repaid at the end of the
season when payment
for the seasonal activity
is made to business
Provides
opportunity
for seasonal
businesses to get
seasonal fnancing
not otherwise
available.
Contract
CAPlines
Same as Basic 7(a).
Plus, will perform on
contract or purchase
order for some third-
party buyer.
To fnance the cost of
one or more specifc
contract, sub-contract, or
purchase order, including
overhead or general and
administrative expenses,
allocable to the specifc
contract(s).
10 years Same as Basic 7(a). Short-term fnancing
for performance of
approved contract, sub-
contract, or purchase
order to be repaid when
payment for the activity
is made to business.
Can be revolving or not.
Provides
opportunity for
contractors and
sub-contractors
to get fnancing
not otherwise
available.
Builders
CAPlines
Same as Basic
7(a). Plus, building/
renovating residential
or commercial
structure for re-sale
without knowing
buyer at time of
approval.
For the direct expenses
related to the construction
and/or “substantial”
renovation costs of specifc
residential or commercial
buildings for resale,
including labor, supplies,
materials, equipment
rental, direct fees. The
cost of land is potentially
eligible.
Maximum of three
years to disburse and
build or renovate.
Extension possible to
accommodate sale.
Same as Basic 7(a). Short-term fnancing to
build or renovate home
or building for sale to
unknown third party.
“Substantial” means
rehabilitation expenses
of more than one-third
of the purchase price or
fair market value at the
time of application. Can
be revolving or not.
Provides
opportunity for
residential and
commercial
builders to
get fnancing
not otherwise
available.
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Program Who Qualifes Use of Proceeds Maturity Maximum Loan
Amount
Structure Benefts to
Borrower
Working
Capital
CAPlines
Same as Basic 7(a).
Borrower should
sell on credit and/
or have inventory
needing immediate
replacement after
the sale.
For short-term working
capital and operating
needs, including to fnance
export sales. Proceeds
must not be used to pay
delinquent withholding
taxes or similar trust funds
(state sales taxes, etc.) or
for foor planning.
10 years Same as Basic 7(a). Structured with
requirements for
payment of principal
tied to the businesses
collection of payments
from their clientele
Provides
opportunity for
businesses that
sell on credit to
get revolving
fnancing not
otherwise
available.
SBA Express
Lender
Structured
Loans or
Lines of
Credit
Businesses needing
a line of credit to
conduct credit in the
USA.
Working capital If revolving, seven-
year maximum,
including term out
period.
$350,000 Structure is established
by individual lender.
Lender must have SBA
Express designation
Has availability
for a line of credit
to help with short-
term cash needs
of the business.
Export
Express
Lender
Structured
Loans or
Lines of
Credit
Businesses needing
a line of credit to
support exporting
activity.
Working capital 70 percent
of which is to be used
to support exporting
activities.
If revolving, seven-
year maximum,
including term out
period.
$500,000 Structure is established
by individual lender.
Lender must have
Export Express
designation
Has availability
for a line of credit
to help with short-
term cash needs
of the business.
Non-7(a) Programs
504 Loan
Program
For-proft businesses
that can meet
the SBA’s size
standards, nature
of business, use
of proceeds, credit
elsewhere, and
other miscellaneous
factors.
Non-7(a) Programs
For the acquisition of
long-term fxed assets,
equipment with a useful
life of at least 10 years;
refnance loan-term fxed
asset debt under certain
conditions; working capital
under certain conditions;
to reduce energy
consumption; and to
upgrade renewable energy
resources.
Based on the use of
proceeds. Twenty
years for real
estate. Ten years
for machinery and
equipment.
The SBA portion of
the fnancing can
generally be up to
$5.0 million but may
be up to $5.5 million
for manufacturing
businesses or energy
saving public policy
goals.
Loans packaged by
Certifed Development
Companies (CDC) and
designed to fnance
up to 40 percent of
a “project”
1
secured
with a 2nd position
lien. Another loan from
a third party lender
fnancing up to 50
percent of the same
project secured in 1st
position, and borrower
contribution of at least
10 percent. Extra
contributions for special-
purpose properties and
new businesses.
Long-term
Treasury fxed
rates that are
below market,
low borrower
contribution only
10 to 20 percent,
full amortization
with no call or
balloon conditions.
Microloan
Program
Same as Basic 7(a).
Plus, nonproft child-
care businesses.
Similar to Basic 7(a). Plus,
start-up nonproft child-
care businesses
Shortest term
possible, not to
exceed six years.
$50,000 to the small
business at any
given time.
The SBA provides a
loan to a nonproft
micro-lender called an
“intermediary” who uses
the proceeds to make
microloans to small
businesses. Technical
assistance can also be
provided.
Direct loan
from nonproft
intermediary
lender, fxed-rate
fnancing, can
be very small
loan amounts,
and technical
assistance is
available.
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“Project” is the purchase or lease, and/or improvement or renovation of long-term fxed assets by a small business, with 504 fnancing, for use in its business
operations.
All SBA programs and services are extended to the public on a nondiscriminatory basis.
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Lender’s Programs Chart
Ways lenders can request guarantees
(Information current as of 03/03/2015)
Program
Processing
Which Lenders
Qualify
Types of Loans that
can be Guaranteed
Maximum Allowable
Interest Rates
Eligibility Analysis Credit Analysis Maximum Loan
Amount
Standard
Processing
Lenders that
have an executed
participation
agreement with the
SBA.
Basic 7(a). International
Trade, Export Working
Capital, all CAPlines.
Base rate is Wall
Street Journal prime,
or LIBOR* one month
rate plus 3 percent, or
SBA Peg rate. Plus, an
allowable spread from
2.25 to 2.75 percent
based on term. Lender
can add 2 percent if
loan is $25,000 or less,
and 1 percent if loan is
$25,001 to $50,000. Can
be fxed or variable.
Lender completes
eligibility
questionnaire
and SBA reviews
eligibility during loan
processing.
Lender to cover all
aspects of prudent credit
analysis with emphasis
on applicant’s ability
to repay loan from
operation. SBA conducts
analysis of lender’s
analysis.
Maximum loan
$5 million. Loans
up to $150,000
guaranteed up to
85 percent; loans
over $150,000
guaranteed up
to 75 percent.
Business with
multiple SBA
loans may get
some variations.
Certifed
Lender
Program
(CLP)
Processing
Same as Standard
7(a). Plus, an
executed CLP
agreement.
Same as Standard 7(a)
processing except no
policy exceptions.
Same as Standard 7(a). Same as Standard
7(a).
Same as Standard 7(a)
except SBA reviews
lender’s analysis work,
not a re-analysis.
Maximum loan
$5 million.
Guaranty
percentage same
as Standard 7(a).
Preferred
Lender
Program
(PLP)
Processing
Same as Standard
7(a). Plus, an
executed PLP
agreement.
Same as Standard
processing except
restrictions on loans
involving some types of
debt refnancing.
Same as Standard 7(a). Lender completes
Eligibility Analysis.
Delegated to lender. Maximum loan
$5 million.
Guaranty
percentage same
as Standard 7(a).
SBA Express
Processing
Same as Standard
7(a). Plus, an
executed SBA
Express agreement.
Basic 7(a) with
restrictions on
some types of debt
refnancing. Plus, lender
structured term and
revolving loans.
If $50,000 or less,
cannot exceed prime
+ 6.5 percent. If over
$50,000, cannot exceed
prime + 4.5 percent.
Prime may be lender
prime.
Lender completes
SBA Form
1920 “Eligibility
Information.”
Delegated to lender. Maximum loan
$350,000.
Guaranty
percentage
50 percent.
Export
Express
Processing
Same as Standard
7(a). Plus, an
executed Export
Express agreement.
Similar to export
working capital loan
and international trade
loans which meet export
related eligibility criteria.
If $50,000 or less,
cannot exceed prime
+ 6.5 percent. If over
$50,000, cannot exceed
prime + 4.5 percent.
Prime may be lender
prime.
Lender completes
SBA Form
1920 “Eligibility
Information.”
Delegated to lender. Maximum loan
$500,000.
Guaranty
percentage range
between 75 and
90 percent.
Community
Advantage
Lenders that have an
executed Community
Advantage
agreement.
Basic 7(a) except
restrictions on some
types of refnancing.
Prime + 6 percent. Lenders complete
SBA Form 1920
“Eligibility
Information.”
Similar to Standard 7(a)
except credit factors
to consider are more
defned.
Maximum loan
$250,000.
Guaranty
percentage same
as Standard 7(a).
• London InterBank Offered Rate
All SBA programs and services are extended to the public on a nondiscriminatory basis.
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The U.S. government is the largest
single purchaser of goods and services
in the world, buying everything from
armored tanks to paper clips. Every
year, the federal government awards
more than $500 billion in contracts, and
a signifcant share of those contracts are
specifcally allotted to small businesses.
The Small Business Administration
works with agencies to award at least
23 percent of all prime government
contracts to small businesses, with
specifc statutory goals for small
business, small disadvantaged
businesses (SDB), businesses that
are women-owned (WOSB) or service-
disabled veteran-owned (SDVOSB),
and businesses that are located in
historically underutilized business zones
(HUBZone frms).
The agency ensures that small
businesses have access to long-lasting
development opportunities, which
means working with small businesses
to help them stay competitive, as
well as encouraging federal agencies
to award more contracts to small
businesses. The SBA provides outreach
programs, matchmaking events, and
online training opportunities; and
helps agencies identify contracting
opportunities for small businesses.
HOW GOVERNMENT
CONTRACTING WORKS
Sealed bidding vs. Negotiation
There are two contracting methods the
government uses to purchase goods and
services, sealed bidding and negotiation.
The frst method, sealed bidding,
involves the issuance of an invitation
for bid by a procuring agency. Under
the sealed bidding method, a contract is
awarded to a responsible bidder whose
bid, conforms to the requirements of a
solicitation (Invitation for Bids (IFB))
that will be most advantageous to the
government, considering only price and
the price-related factors included in the
IFB. The second method, negotiation,
involves issuing a request for proposal
(RFP) or request for quotation (RFQ).
The business with the best proposal in
terms of technical content, best value,
price and other factors generally wins
the contract.
Types of Contracts
Firm fxed-price contracts place
the full responsibility for the costs
and risk of loss on the contractor.
Firm fxed-price contracts do not
permit any adjustment on the basis
of the contractor’s costs during the
performance of the contract. It provides
maximum incentive for the contractor
to control costs and perform effectively
and imposes a minimum administrative
burden upon the contracting parties.
This type of contract is used in all
sealed bid and some negotiated
procurements.
Cost reimbursement contracts provide
for the payment of allowable costs
incurred by the contractor, to the extent
stated in the contract. The contract
establishes a ceiling price, above which
a contractor may not exceed without the
approval of the contracting offcer. Cost
reimbursement contracts are commonly
used in research and development
contracts.
Some contracts do not ft neatly into
these two categories, such as time
and material contracts (prices for
hourly wages are fxed but the hours
are estimated) and letter contracts
(authorizes a contractor to begin work
on an urgent requirement).
Small Business Set-Asides
A “set-aside” for small businesses
reserves an acquisition exclusively
for small business participation.
This includes HUBZone Certifed
small businesses, SBA 8(a) Certifed
small businesses, Service-Disabled
CONTRACTING
Applying for Government Contracts
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Veteran-Owned small businesses and
Economically Disadvantaged/Women-
Owned small businesses in specifc
industries. There are two ways in
which set-asides can be determined.
First, if an acquisition of goods or
services has an anticipated dollar value
of at least $3,000 but not exceeding
$150,000, it is automatically reserved
for small businesses. The acquisition
will be set aside only if the contracting
offcer determines there are two or more
responsible small businesses that are
competitive in terms of prices, quality
and delivery. Second, if an acquisition
for goods or services is estimated
at more than $150,000, and it is
determined that offers will be obtained
from two or more responsible small
businesses, at a fair market price,
the acquisition is reserved exclusively
for small business participation.
Reasonable expectations of small
business competition may be evaluated
using past acquisition history of an item
or similar items.
There are several exceptions and
unique rules for specifc kinds of
small businesses and industries. For
Research and Development (R&D)
small business set-asides, there
must be reasonable expectation of
obtaining from small businesses the
best scientifc and technological sources
consistent with the requirements of
the proposed acquisition. For small
business set-asides other than for
services or construction services, any
business proposing to furnish a product
that it did not manufacture must
furnish the product of a small business
manufacturer unless the SBA has
granted either a waiver or exception
to this requirement, referred to as the
Non-manufacturer rule. In industries
where the SBA fnds that there are no
small business manufacturers, it may
issue a waiver to the non-manufacturer
rule. Waivers permit small businesses
dealers or distributors to provide any
domestic frm’s product.
Subcontracting
Subcontracting opportunities are a
great resource for small businesses,
especially for those not ready to bid as
prime contractors. Experience gained
from subcontracting with a federal
prime contractor can better prepare
businesses to bid for prime contracts.
Current regulations stipulate that
for contracts offering subcontracting
opportunities over $650,000 for
goods and services, or $1.5 million
for construction must offer the
maximum practicable subcontracting
opportunities to small businesses.
In addition, potential large business
prime contractors must submit a
subcontracting plan with their proposal
describing how they will successfully
maximize subcontracting opportunities
to small businesses.
To fnd subcontracting opportunities,
a list of federal prime solicitations is
listed under the U.S. Small Business
Administration Subcontracting Network
(SUBNET) web.sba.gov/subnet/search/
index.cfm and through the General
Services Administration (GSA) at
www.gsa.gov/portal/content/101195.
Research the list of prime contractors
and determine which are best suited
to your business. Develop a marketing
strategy, and then contact the Small
Business Liaison Offcer (SBLO)
listed for each prime to schedule an
appointment.
SBA CONTRACTING
PROGRAMS
HUBZONE
The Historically Underutilized
Business Zones (HUBZone) program
helps small businesses located in
distressed urban and rural communities
gain access to federal set-aside contracts
and sole source contracts, as well as a
price evaluation preference in full and
open contract competitions. There is
a statutory goal that HUBZone small
business concerns be awarded not less
than 3 percent of the total value of all
prime contract and subcontract awards.
The HUBZone program also establishes
preference for award of federal contracts
to small businesses in these areas. To
qualify for the program, a business
(except those that are tribally-owned)
must meet the following criteria:
• It must be a small business by SBA
size standards
• It must be owned and controlled at
least 51 percent by U.S. citizens,
or a Community Development
Corporation (CDC), an agricultural
cooperative, or an Indian tribe
• Its principal offce must be located
within a “Historically Underutilized
Business Zone,” which includes
lands considered “Indian Country”
and military facilities closed by the
Base Realignment and Closure Act
• At least 35 percent of its employees
must reside in a HUBZone.
Note: Different rules apply for
Tribal Governments, Alaska Native
Corporations, Community Development
Corporations and small agricultural
cooperatives. These are delineated
in Title 13 of the Code of Federal
Regulations, Part126.
Existing businesses that choose to
move to qualifed areas are eligible to
apply for certifcation provided they
meet all the eligibility requirements. To
fulfll the requirement that 35 percent
of a HUBZone frm’s employees reside
in a HUBZone, employees must 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
indefnitely.
The SBA is responsible for:
• Determining whether or not
individual concerns are qualifed
HUBZone small business concerns;
• Maintaining a list of qualifed
HUBZone small business concerns
for use by acquisition agencies
in awarding contracts under the
program;
• Adjudicating protests and appeals
of eligibility to receive HUBZone
contracts.
For additional information, visit
www.sba.gov/hubzone.
8(a) BUSINESS DEVELOPMENT
PROGRAM
The 8(a) Business Development
program is a nine-year program
established to assist eligible socially and
economically disadvantaged individuals
to develop and grow their businesses.
Business development assistance
includes one-on-one counseling, training
workshops, match-making opportunities
with federal buyers and other
management and technical guidance.
There is a statutory requirement that
small disadvantaged business concerns
be awarded not less than 5 percent of
the total value of all prime contract
awards. All frms that become eligible
for SBA’s 8(a) business development
assistance are also considered small
disadvantaged business concerns for the
purpose of federal contracting.
To be eligible for the 8(a) Business
Development program, a business must
meet the following criteria:
• It must be a small business by SBA
size standards;
• It must be owned (at least 51
percent) by one or more individuals
who qualify as socially and
economically disadvantaged, and
who are U.S. citizens of good
character;
• It must be controlled, managed,
and operated full-time by one or
more individuals who qualify as
disadvantaged, and;
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• It must demonstrate potential
for success (generally by being in
business for at least two full years)
and have the capacity to perform on
government and non-government
contracts before applying.
Socially disadvantaged individuals
are those who have been subjected to
racial or ethnic prejudice or cultural
bias because of their identity as a
member of a group without regard
to their individual capabilities. The
following individuals are presumed
to be socially disadvantaged: Black
Americans, Native Americans, Alaska
Natives or Native Hawaiians, Hispanic
Americans, Asian Pacifc Americans,
and Subcontinent Asian Americans.
An individual who is not a member
of one of these groups must establish
individual social disadvantage by a
preponderance of evidence.
Economically disadvantaged
individuals are socially disadvantaged
individuals whose ability to compete
in the free-enterprise system has been
impaired due to diminished capital
and credit opportunities as compared
to others in the same or similar
line of business who are not socially
disadvantaged.
Firms owned by Alaska Native
Corporations, Indian tribes, Native
Hawaiian organizations, and
Community Development Corporations
can also apply to the SBA for 8(a)
business development assistance.
So that approved frms can obtain
training, counseling, and business
development assistance, SBA designates
a staff person at a local SBA district
offce, geographically near the business
to coordinate the frm’s business
development assistance.
SBA is responsible for:
• Determining whether a business
qualifes for the 8(a) Business
Development program;
• Determining whether a business
continues to qualify, during the
nine-year term;
• Approving Mentor/Protégé
agreements between 8(a) frms and
large businesses;
• Providing technical guidance and
business development assistance
during the nine-year term.
For additional information, visit
www.sba.gov/8a.
PROCUREMENT TECHNICAL
ASSISTANCE CENTERS
(PTACs)
Doing business with the government
is a big step to growing your business.
Procurement Technical Assistance
Centers (PTACs) provide local,
in-person counseling and training
services for you, the small business
owner. They are designed to provide
technical assistance to businesses that
want to sell products and services to
federal, state, and/or local governments.
PTAC services are available either
free of charge, or at a nominal cost.
PTACs are part of the Procurement
Technical Assistance Program, which is
administered by the Defense Logistics
Agency.
What can a PTAC do for you?
• Determine if your business is ready
for government contracting.
Pursuing government contracts is
a challenge, and can be burden for
your company if you do not have
the resources or maturity to handle
a contract. A PTAC representative
can sit with you one-on-one and
determine if your company is ready,
and how to position yourself for
success.
• Help you register in the proper
places. There are numerous
databases to register with to get
To be eligible to bid on a federal
contract, you must know your business.
Answer the following three questions:
1. Are you a small business?
Is your small business:
• Organized for proft?
• Located in the U.S.?
• Operated primarily within the
U.S. or making a signifcant
contribution to the U.S. economy
through payment of taxes or use of
American products, materials, or
labor?
• Independently owned and
operated?
• Not dominant in the feld of
operation in which it is bidding for
government contracts?
• A sole proprietorship, partnership,
corporation, or any other legal
form?
If the frst six criteria apply to your
business, ask yourself the second
important question to fnd out if
your business meets size standard
requirements.
2. What is the size standard for your
business?
Size standards are used to determine
whether a business is small or
“other than small.” Size standards
vary depending upon the industry.
To determine the size standard for
your business, you will need a North
American Industry Classifcation code
(NAICS). Every federal agency uses
these codes when considering your
business. To determine your NAICS
code, go to www.census.gov/eos/www/naics/.
Some SBA programs require their
own unique size standards. To fnd out
more about these requirements and
other size standard information, go to
www.sba.gov/size.
3. Do you fall under a speci?c
certi?cation?
Under the umbrella of “small
business,” SBA has outlined several
specifc certifcations that businesses
may fall under. These certifcations are
divided into two categories:
SBA-Certi?ed and Self-Certi?ed.
The SBA-Certifed Programs were
created to assist specifc businesses
in securing federal contracts and
therefore can only be issued by SBA
administrators. For the Self-Certifed
Programs, you can determine for
yourself if your business meets the
requirements by referring to the
Federal Acquisition Regulation (FAR).
Just as Congress has given federal
agencies a goal of procuring 23
percent of federal contracts from
small businesses, so too must federal
agencies meet specifc contracting goals
for other categories of small frms.
These goals are:
• 23 percent of contracts for Small
Businesses
• 5 percent of contracts to Small
Disadvantaged Businesses
• 5 percent to Women-Owned Small
Businesses
• 3 percent to Service-Disabled
Veteran-Owned Small Businesses
• 3 percent to HUBZone Small
Businesses
Federal agencies have a strong
incentive to fulfll these contracting
goals. You should apply for those SBA-
Certifed and Self-Certifed programs
for which you qualify to take advantage
of contracting opportunities.
WHAT YOU SHOULD KNOW
ABOUT YOUR BUSINESS
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involved with the government
marketplace, including the
Department of Defense’s System for
Award Management (SAM), GSA
Schedules, and other government
vendor sites.
• See if you are eligible in any small
business certifcations. Some
government contracts are set
aside for certain businesses that
have special certifcations, such as
woman-owned, minority-owned, and
HUBZone. A PTAC representative
can help you obtain these
certifcations, if you are eligible,
allowing for more government
contract opportunities.
• Research past contract
opportunities. A PTAC
representative can look into past
contracts, to see what types of
contracts have been awarded to
businesses like yours.
In addition, a PTAC can help you
identify and bid on a contract, and if you
are awarded the contract, continue to
provide you support through measuring
your performance and helping with your
contract audits. Don’t hesitate to fnd
the PTAC near you today to get started
in government contracting or to improve
your success.
SMALL DISADVANTAGED
BUSINESS
A Small Disadvantaged Business
(SDB) is defned as a small business
that is at least 51 percent owned and
controlled by one or more individuals
who are socially and economically
disadvantaged.
There is a federal government-wide
goal of awarding at least 5 percent
of prime contracting dollars to SDBs
each year. Large prime contractors
must also establish a 5 percent
subcontracting goal for SDBs in their
subcontracting plans which includes
SBA 8(a) certifed small businesses.
Firms self-certify as SDB in the
federal data base called the System for
Award Management (SAM) without
submitting any application to the SBA;
however, frms approved by the SBA
into the 8(a) Business Development
Program are automatically certifed as
an SDB. To self certify, frms should
access the website: www.sba.gov/sdb.
By reading the information contained
therein you will be given guidance as to
what steps are required.
SERVICE-DISABLED VETERAN-
OWNED SMALL BUSINESS
The Service-Disabled Veteran-
Owned Small Business (SDVOSB)
program has a federal government-wide
goal of awarding at least 3 percent
of prime and subcontracting dollars
to Service-Disabled Veteran-Owned
Small Businesses each year. Large
prime contractors must also establish
a subcontracting goal for SDVOSBs
in their subcontracting plans. These
subcontracting goals are reviewed at
time of proposal by both the contracting
offcer and the SBA prior to the award
of a contract.
While the SBA does not certify
companies as SDVOSBs, SDVOSB
protest process is administered by
SBA to ensure that only businesses
owned by service-disabled veterans
receive contracts reserved exclusively
for them. When a business’s SDVOSB
self-certifcation is challenged, the
SBA determines if the business meets
the status, ownership and control
requirements.
To determine your eligibility,
contact your local veterans’ business
development offcer, visit the
various program websites, or contact
SBA’s Offce of Veterans Business
Development at www.sba.gov/about-
of?ces-content/1/2985.
WOMEN-OWNED
SMALL BUSINESS
FEDERAL CONTRACT PROGRAM
On October 7, 2010, the SBA
published a fnal rule effective February
4, 2011, aimed at expanding federal
contracting opportunities for women-
owned small businesses. The Women-
Owned Small Business (WOSB)
Federal Contract Program authorizes
contracting offcers to set aside certain
federal contracts for eligible women-
owned businesses and economically
disadvantaged women-owned small
businesses (EDWOSB) in industries
where it has be determined WOSBs
and EDWOSBs are underrepresented..
To be eligible, a frm must be at least
51 percent owned or controlled by one or
more women. The women must be U.S.
citizens and the WOSB or EDWOSB
must be “small” under its primary
industry in accordance with SBA’s size
standards established for under the
North American Industry Classifcation
code assigned to that industry. To be
deemed “economically disadvantaged”
its owners must demonstrate economic
disadvantage in accordance with the
requirements set forth in the fnal rule.
For additional information, visit
www.sba.gov/wosb.
Protests under the WOSB Federal
Contract Program are also administered
by the SBA. When a company’s WOSB
or economically disadvantaged WOSB
self-certifcation is challenged, the
SBA determines if the business meets
ownership and control requirements.
Large prime contractors must also
establish a subcontracting goal for
Woman-Owned Small Businesses in
their Subcontracting Plans. These
subcontracting goals are reviewed at
time of proposal by both the contracting
offcer and the SBA prior to the award
of a contract.
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Once you have identifed the important
information regarding your business, it is
time to start the process of procuring a
government contract.
1. Identify your DUNS (Data Universal
Numbering System) Number
To register your business, obtain a
DUNS number used to identify and track
millions of businesses. You can
obtain your free DUNS number when
registering with the System for Award
Management. Log on to www.sam.gov
for more information or by contacting
Dun & Bradstreet at www.dnb.com.
2. Identify your EIN
(Employer Identi?cation Number)
An EIN, otherwise known as a federal tax
identifcation number, is generally
required of all businesses. For more
information, go to www.irs.gov.
3. Identify your NAICS (North American
Industry Classi?cation) codes
The NAICS codes are used to classify the
industry a particular business occupies.
You will need at least one NAICS code to
complete your registration, but be sure to
list as many as apply. You may also add
or change NAICS codes at any time. Visit
www.census.gov/eos/www/naics/ to fnd
NAICS codes.
4. Identify your SIC (Standard Industrial
Classi?cation) codes
The SIC codes are four-digit numbers
that are used to classify the industry a
particular business occupies. While
NAICS codes have largely replaced SIC
codes, you will still need to provide your
SIC code. SIC codes can be found at
www.osha.gov/pls/imis/sicsearch.html.
5. Register with the System for Award
Management (SAM), formerly the
Central Contractor Registration (CCR)
The SAM is an online federal
government maintained database of
companies wanting to do business with
the federal government. Agencies search
the database for prospective vendors.
Register at www.SAM.gov.
After completing registration, you will
be asked to enter your small business
profle information through the SBA
Supplemental Page. The information will
be displayed in the Dynamic Small
Business Search.
Creating a profle in SAM and keeping it
current ensures your frm has access
to federal contracting opportunities.
Entering your small business profle,
including your business information
and key word description, allows
contracting offcers, prime contractors,
and buyers from state and local
governments to learn about your
company.
6. Register with the GSA Schedule
The GSA (General Services
Administration) Multiple Award Schedule
(aka Federal Supply Schedule) is used by
GSA to establish long-term, government-
wide contracts with commercial frms.
Once these contracts are established,
government agencies can order the
supplies and services they need directly
from the frms through the use of an
online shopping tool. Becoming a GSA
schedule contractor increases your
opportunity for contracts across all levels
of government. Businesses interested in
becoming GSA schedule contractors
should review the information available
at www.gsa.gov/schedules.
7. Make Sure Your Business is
Financially Sound
This critical step is absolutely necessary
to make sure that your business is
fnancially prepared for the journey
ahead. Even if you are able to obtain a
government contract, you will not be
receiving all of the money at once. It
helps to have a clear plan of how your
business will stage the benefts of the
contract.
8. Search Federal Business Opportunities
(FedBizOpps) for Contracting
Opportunities
FedBizOpps, is an online service operated
by the federal government that
announces available business
opportunities. FedBizOpps helps identify
the needs of federal agencies and
available contracting opportunities.
To begin searching for contracting
opportunities, go to www.fbo.gov.
9. Marketing Your Business
Registering your business is not enough
to obtain a federal contract; you will need
to market your business to attract federal
agencies. Tips for good marketing are:
• Determine which federal agencies
buy your product or service, and
get to know them;
• Identify the contracting
procedures of those agencies;
• Focus on opportunities in your
niche and prioritize them.
• Although not required, you may want
to obtain a PSC (Product Services
Code) and/or a FSC (Federal Supply
Classifcation). These codes provide
additional information about the
services and products your business
offers.
GETTI NG STARTED I N CONTRACTI NG
The following federal procurement
resources may also be of assistance:
• The Certi?cates of Competency (CoC)
program allows a small business,
which is the apparent successful
offeror, to appeal a contracting offcer’s
non-responsibility determination that
it is unable to fulfll the requirements
of a specifc government contract. The
SBA will conduct a detailed review
of the frm’s technical and fnancial
capabilities to perform on the contract.
If the business demonstrates the
capability to perform, the SBA issues
a Certifcate of Competency to the
contracting offcer, requiring award of
that contract to the small business.
• Procurement Center Representatives
(PCR) and Commercial Marketing
Representatives (CMR): PCRs work
to increase the small business share
of federal procurement awards.
CMRs offer many services to small
businesses, including counseling on
how to obtain subcontracts. To fnd a
PCR or CMR near you, go to
www.sba.gov/content/procurement-center-
representatives.
• PTACs (Procurement Technical
Assistance Centers): PTACs provide
assistance to businesses that want to
sell products and services to federal,
state, and/or local government. To
fnd a PTAC in your state, go to
www.dla.mil/SmallBusiness/Pages/ptap.aspx.
• Department of Defense (The DoD is
the largest purchaser of goods from
small businesses):
www.acq.osd.mil/osbp/
• Of?ce of Federal Procurement Policy:
www.whitehouse.gov/omb/procurement_default
• Acquisition Forecast:
www.acquisition.gov/comp/procurement
_forecasts/index.html
• Federal Supply Schedule (FSS):
www.gsa.gov
• GSA Center for Acquisition Excellence:
www.gsa.gov/portal/content/103487
ADDITIONAL PROCUREMENT RESOURCES
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he disaster program is
SBA’s largest direct loan
program, and the only SBA
program for entities other
than small businesses. SBA
is responsible for providing low-interest
disaster loans to businesses of all
sizes, private non-proft organizations,
homeowners and renters following
declared disasters.
The SBA is authorized by the Small
Business Act to make two types of
disaster loans:
Physical Disaster Loans
Physical Disaster Loans are
the primary source of funding for
permanent rebuilding and replacement
of uninsured or underinsured disaster-
caused damages to privately-owned
real and/or personal property. SBA’s
physical disaster loans are available
to businesses of all sizes, private non-
proft organizations, homeowners
and renters. Businesses and private,
nonproft organizations of any size may
apply for a loan up to $2 million (actual
loan amounts are based on the amount
of uncompensated damage) to repair
or replace real property, machinery,
equipment, fxtures, inventory and
leasehold improvements. A homeowner
may apply for a loan of up to $200,000
to repair or replace the primary
residence to its pre-disaster condition.
Homeowners or renters may apply
for a loan up to $40,000 to help repair
or replace personal property, such as
clothing, furniture or automobiles, lost
in the disaster.
The SBA may increase a loan up
to 20 percent of the total amount of
physical loss as verifed by SBA to make
improvements that protect the property
from similar future disasters.
Economic Injury Disaster Loans
Economic Injury Disaster Loans
provide the necessary working capital
after a declared disaster until normal
operations resume. Small businesses,
small agricultural cooperatives, small
businesses engaged in aquaculture
(fsheries, for example) and most private
nonproft organizations of all sizes are
eligible for EIDL assistance, regardless
of whether there was any physical
damage. The loan limit is $2 million.
The EIDL helps small businesses meet
ordinary and necessary operating
expenses as they recover from a disaster.
The limit for physical and EIDL loans
combined is $2 million.
The Military Reservists Economic
Injury Disaster Loan is a working
capital loan for small businesses facing
fnancial loss when the owner or an
essential employee is called up to active
duty in their role as a military reservist.
The loan limit is $2 million and the
business can use the funds to cover
operating expenses until the essential
employee or business owner is released
from active duty.
The SBA can only approve disaster
loans to applicants having an acceptable
credit history and repayment ability.
The terms of each loan are established
in accordance with each borrower’s
ability to repay. The law gives SBA
several powerful tools to make disaster
loans affordable: low-interest rates
(around 4 percent), long-terms (up to
30 years), and refnancing of prior liens
(in some cases). As required by law, the
interest rate for each loan is based on
SBA’s determination of whether the
SBA DISASTER ASSISTANCE
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applicant has credit available elsewhere
— the ability to borrow or use their own
resources to recover from the disaster
without causing undue hardship.
More information on all of SBA’s
disaster assistance programs, including
information for military reservists,
is available at www.sba.gov/disaster.
Apply online using the Electronic Loan
Application (ELA) via SBA’s secure
Website at: https://disasterloan.sba.gov/ela.
Disaster Preparedness
Recovering from a disaster doesn’t
begin with clearing the debris and
returning to work. Imagine stepping into
your store, or restaurant, or the offce
where you run your business, a day or
two after the fre has been contained,
the tornado has passed, or foodwaters
have receded. First come the questions:
“How much will it cost to rebuild? Will
my insurance cover all this? How will
I pay my employees and vendors and
cover the bills during the recovery
phase?” Before a disaster strikes is a
good time to start, or update and test
your business continuity plan.
While SBA disaster loans go a long
way toward revitalizing communities
devastated by the economic fallout
that follows disasters, with a solid
preparedness plan in place, your
business will be able to recover sooner,
possibly without taking on new debt.
Assessing your risks and needs are
an important frst step in developing
your business continuity strategy. The
American Red Cross’ Ready Rating™
program (www.readyrating.org) is a
free online tool that helps businesses
get prepared for disaster and other
emergencies. With Ready Rating you
can evaluate your level of disaster
readiness, and you’ll get customized
feedback on how to establish or expand
your disaster plan.
Another useful site provided by FEMA
— Ready.gov (www.ready.gov) — provides
practical disaster preparedness tips
and checklists for homeowners, renters
and businesses. SBA has teamed up
with Agility Recovery Solutions to offer
business continuity strategies through
the “PrepareMyBusiness” website
(www.preparemybusiness.org) and
monthly disaster planning webinars.
Previous topics — presented by
experts in their felds — have included
crisis communications, testing the
preparedness plan, and using social
media to enhance small business
recovery. At the website you can
sign up for future webinars, view
previous webinars, and download
checklists that give you tips on risk
assessment, evacuation plans and food
preparedness, that will help you develop
a solid business continuity plan.
Meanwhile, here are a few
preparedness tips to consider:
• Review Your Insurance Coverage.
Contact your insurance agent to
fnd out if your coverage is right for
your business and make sure you
understand the policy limits.
Ask about Business Interruption
Insurance, which compensates you
for lost income and covers operating
expenses if your company has to
temporarily shut down after a
disaster.
• Establish a solid supply chain.
If all your vital external vendors
and suppliers are local and if the
disaster is signifcantly widespread,
you’ll all be in the same boat,
struggling to recover. It’s a good
idea to diversify your list of vendors
for key supplies to companies
outside your area or internationally,
if possible. Create a contact list for
important contractors and vendors
you plan to use in an emergency
and fnd out if those suppliers have
a recovery plan in place. Keep this
list with other documents fled in a
place that’s accessible, and also at a
protected off-site location.
• Plan for an alternate location. Do
some research well in advance of
the disaster for several alternative
places to relocate your company
in the event a disaster forces you
to shut down indefnitely. Some
options include contacting a local
real estate agent to get a list of
available vacant offce space. Make
an agreement with a neighboring
business to share offce space if
disaster strikes. If possible, make
plans for employees to telecommute
until the offce has been rebuilt.
The fnancial and emotional cost of
rebuilding a business after a disaster
can be overwhelming. However, with a
business continuity plan in place, you’ll
be able to rebound and reopen quickly,
and in a better position to contribute
to the economic recovery of your
community.
As small businesses are leading
America’s economic recovery, many of
them are investing time and money
into their plans to grow and create
jobs. Developing a strong disaster
preparedness plan should be a critical
and integral piece of those efforts.
Planning for a disaster is the best way of
limiting its effects.
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OFFICE OF ADVOCACY
The SBA’s Offce of Advocacy, the
“small business watchdog” of the
government, examines the role and
status of small business in the economy
and independently represents the views
of small business to federal agencies,
Congress, the president and federal
appellate courts as friends of the court.
The advocacy offce compiles and
interprets statistics on small business
and is the primary entity within the
federal government to disseminate
small business data.
Headed by the chief counsel for
advocacy, the offce also funds outside
research of small business issues
and produces numerous publications
to inform policy makers about the
important role of small businesses
in the economy and the impact
of government policies on small
businesses. In addition, the offce
monitors federal agency compliance
with the Regulatory Flexibility Act
– the law that requires agencies to
analyze the impact of their proposed
regulations on small entities (including
small businesses, small governmental
jurisdictions and small nonproft
organizations), and consider regulatory
alternatives that minimize the economic
burden on small entities.
Advocacy’s mission is enhanced by
a team of regional advocates, located
in the SBA’s 10 regions. They are
Advocacy’s direct link to small business
owners, state and local government
entities, and organizations that
support the interests of small entities.
The regional advocates help identify
regulatory concerns of small business
by monitoring the impact of federal and
state policies at the grassroots level.
Learn more about the Offce of
Advocacy at www.sba.gov/advocacy.
OFFICE OF THE NATIONAL
OMBUDSMAN:
Bringing Fair Regulatory Enforcement
to America’s Small Businesses
The National Ombudsman has helped
thousands of small businesses save
time and money by resolving diffcult
regulatory compliance and enforcement
issues. As part of President Obama’s
mandate to promote a level playing feld
for small business, we work directly
with federal regulators to facilitate
practical and timely resolutions of
Regulatory Enforcement Fairness (REF)
matters impacting small businesses.
The National Ombudsman oversees
fair enforcement of small business
regulation by:
• Providing small business owners
a confdential way to report and
resolve federal REF problems, like
excessive enforcement action or
disproportionate fnes
• Escalating small business concerns
to federal agencies for fairness
review & resolution
• Grading federal agencies on their
small business policies and practices
Small businesses can connect with the
National Ombudsman online at
sba.gov/ombudsman, in-person,
or through a national network of
Regulatory Fairness Board Members.
The National Ombudsman meets
with small business owners around
the country at listening sessions and
regulatory fairness dialogues in all ten
SBA Regions. These outreach events
provide critical, real-time input from
the small business community on REF
issues impacting small business growth
and help federal regulators better
understand how government can best
support small business success.
Regional Regulatory Fairness Boards
in each of SBA’s 10 regions promote
regulatory fairness by alerting federal
regulators to important REF issues such
as unintended consequences of a new
rule or regulation. These Boards, each
made up of fve small business owners,
also help raise awareness in their
communities about resources available
to small businesses through the SBA
and the National Ombudsman.
Every year, the National Ombudsman
reports to Congress its fndings on the
impact of the policies and practices of
every federal agency that touches small
business.
To learn more about how the National
Ombudsman can help your small
business, or to confdentially report
a REF issue, call 888-REG-FAIR
(888-734-3247) or complete the simple
one-page form at sba.gov/ombudsman/
comment.
ADVOCACY AND OMBUDSMAN
Watching Out for the Interests of Small Businesses
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ven if you are running a
small home-based business,
you will have to comply
with many local, state and
federal regulations. Avoid
the temptation to ignore regulatory
details. Doing so may avert some red
tape in the short term, but could be
an obstacle as your business grows.
Taking the time to research the
applicable regulations is as important
as knowing your market. Bear in mind
that regulations vary by industry. If
you’re in the food-service business,
for example, you will have to deal
with the health department. If you
use chemical solvents, you will have
environmental compliances to meet.
Carefully investigate the regulations
that affect your industry. Being
out of compliance could leave you
unprotected legally, lead to expensive
penalties and jeopardize your
business.
BUSINESS LICENSES
There are many types of licenses,
both state and local as well as
professional. Depending on what you
do and where you plan to operate,
your business may be required to
have various state and/or municipal
licenses, certifcates or permits.
Licenses are typically administered
by a variety of state and local
departments. Consult your state or
local government for assistance.
Colorado Department of Regulatory
Agencies (DORA)
Many professions and occupations
in Colorado are licensed by DORA.
Examples include plumbers,
electricians, hairstylists, real estate
brokers, CPAs, counselors, investment
advisors, doctors, chiropractors, and
veterinarians. For a complete list of
professionals and occupations that
must be licensed to do business in
Colorado visit www.dora.state.co.us.
Colorado Department of Agriculture
Almost all food processing and/or
sales in Colorado are regulated for
safety purposes. This includes items
that may be sold through a home-
based business, at farmers markets,
or fea markets. Restaurant health
inspections are completed by your
local county health department. For
more information on the processing
or sale of food items – and assistance
in developing your market or for
exporting – contact the CDA at
303-869-9000 or visit www.colorado.gov/
agmain.
Registering Your Business Name
Colorado does not have a general
business license. However, the
business trade name is required to
be registered with the Secretary of
State’s offce. A business name must
“be distinguishable on the records
of the Secretary of State” from other
business names and trademarks
previously registered. All fling must
be done on line.
Colorado Secretary of State
1700 Broadway, Ste. 200
Denver, CO 80290
303-894-2200
www.sos.state.co.us
FICTITIOUS BUSINESS NAME
Search to determine if the name
of your proposed business is already
in use. If it is not used, register the
name to protect your business. For
more information, contact the county
clerk’s offce in the county where
your business is based. If you are a
corporation, you’ll need to check with
the state.
BUSINESS INSURANCE
Like home insurance, business
insurance protects your business
against fre, theft and other losses.
Contact your insurance agent or
broker. It is prudent for any business
to purchase a number of basic types
of insurance. Some types of coverage
are required by law, others simply
make good business sense. The types of
insurance listed below are among the
most commonly used and are merely a
starting point for evaluating the needs
of your business.
Liability Insurance – Businesses
may incur various forms of liability
in conducting their normal activities.
One of the most common types is
product liability, which may be
incurred when a customer suffers
harm from using the product. There
are many other types of liability,
which are frequently related to specifc
industries. Liability law is constantly
changing. An analysis of your liability
insurance needs by a competent
professional is vital in determining
an adequate and appropriate level of
protection for your business.
Property – There are many different
types of property insurance and levels
of coverage available. It is important
to determine the property insurance
you need to ensure the continuation
of your business and the level of
insurance you need to replace or
rebuild. You should also understand
ADDITIONAL RESOURCES
Taking Care of Startup Logistics
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the terms of the insurance, including
any limitations or waivers of coverage.
Business Interruption – While
property insurance may pay enough
to replace damaged or destroyed
equipment or buildings, how will you
pay costs such as taxes, utilities and
other continuing expenses during the
period between when the damage
occurs and when the property is
replaced? Business Interruption (or
“business income”) insurance can
provide suffcient funds to pay your
fxed expenses during a period of time
when your business is not operational.
“Key Man” – If you (and/or any
other individual) are so critical to
the operation of your business that it
cannot continue in the event of your
illness or death, you should consider
“key man” insurance. This type of
policy is frequently required by banks
or government loan programs. It also
can be used to provide continuity
of operations during a period of
ownership transition caused by the
death, incapacitation or absence due
to a Title 10 military activation of an
owner or other “key” employee.
Automobile – It is obvious that
a vehicle owned by your business
should be insured for both liability
and replacement purposes. What is
less obvious is that you may need
special insurance (called “non-owned
automobile coverage”) if you use your
personal vehicle on company business.
This policy covers the business’
liability for any damage which may
result from such usage.
Offcer and Director – Under most
state laws, offcers and directors of a
corporation may become personally
liable for their actions on behalf of the
company. This type of policy covers
this liability.
Home Offce – If you are
establishing an offce in your home,
it is a good idea to contact your
homeowners’ insurance company to
update your policy to include coverage
for offce equipment. This coverage
is not automatically included in a
standard homeowner’s policy.
TAXES
Taxes are an important and complex
aspect of owning and operating a
successful business. Your accountant,
payroll person, or tax adviser may be
very knowledgeable, but there are still
many facets of tax law that you should
know. The Internal Revenue Service is
a great source for tax information.
Small Business/Self-Employed Tax
Center: www.irs.gov/Businesses/Small-
Businesses-&-Self-Employed.
When you are running a business,
you don’t need to be a tax expert.
However, you do need to know some
tax basics. The IRS Small Business/
Self-Employed Tax Center gives you
the information you need to stay tax
compliant so your business can thrive.
For Small Business Forms and
Publications visit: www.irs.gov/
Businesses/Small-Businesses-&-Self-
Employed/Small-Business-Forms-and-
Publications.
FEDERAL PAYROLL TAX
(EIN NUMBERS)
An Employer Identifcation Number
(EIN), also known as a Federal
Employer Identifcation Number
(FEIN), is used to identify a business
entity. Generally, businesses need an
EIN to pay federal withholding tax.
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You may apply for an EIN in various
ways, one of which is to apply online
at www.irs.gov/Businesses/Small-
Businesses-&-Self-Employed/Employer-
ID-Numbers-EINs. This is a free service
offered by the Internal Revenue
Service.
Call 800-829-1040 if you have
questions. You should check with your
state to determine if you need a state
number or charter.
EMPLOYEE/EMPLOYER ISSUES
Colorado Department of Labor and
Employment
Division of Workers Compensation
633 17th St., Ste. 400
Denver, CO 80202
303-318-8700
Colorado Department of Labor and
Employment
Unemployment Insurance Bene?ts
303-318-9100 or 800-480-8299
www.colorado.gov/cdle/ui
U.S. Department of Labor
DOL Colorado District Of?ce
Wage and Hour Division
1999 Broadway, Ste. 710
Denver, CO 80202
720-264-3250
Bureau of Immigration and Customs
Enforcement
Employer is required to complete and
maintain a Form I-9, employment eligibility
veri?cation for each employee. Visit the web
site at: www.uscis.gov/i-9
Of?ce of Special Counsel for Immigration
Related Unfair Employment Practices
Employer Hotline: 800-255-8155
www.justice.gov/crt/about/osc/
United States Immigration and
Customs Enforcement
12445 E. Caley Ave.
Centennial, CO 80111
720-873-2899
FEDERAL
SELF-EMPLOYMENT TAX
Every employee must pay Social
Security and Medicare taxes. If you
are self-employed, your contributions
are made through the self-employment
tax.
The IRS has publications, counselors
and workshops available to help you
sort it out. For more information,
contact the IRS at 800-829-1040 or
www.irs.gov.
SALES TAX
EXEMPTION CERTIFICATE
If you plan to sell products, you
will need a Sales Tax Exemption
Certifcate. It allows you to purchase
inventory, or materials, which will
become part of the product you sell,
from suppliers without paying taxes.
It requires you to charge sales tax
to your customers, which you are
responsible for remitting to the
state. You will have to pay penalties
if it is found that you should have
been taxing your products and now
owe back taxes to the state. For
information on sales tax issues,
contact your state government or
contact the Colorado Department of
Revenue Taxation Division at
303-238-7378.
FEDERAL INCOME TAX
Like the state income tax, the method
of paying federal income taxes depends
upon your legal form of business.
Sole Proprietorship: You must fle
IRS Federal Form Schedule C along
with your personal Federal Income
Tax return (Form 1040) and any other
applicable forms pertaining to gains or
losses in your business activity.
Partnership: You must fle a Federal
Partnership return (Form 1065). This
is merely informational to show gross
and net earnings of proft and loss. Also,
each partner must report his share of
partnership earnings on his individual
Form 1040 based on the information
from the K-1 fled with the Form 1065.
Corporation: You must fle a
Federal Corporation Income Tax
return (Form 1120). You will also
be required to report your earnings
from the corporation including salary
and other income such as dividends
on your personal federal income tax
return (Form 1040). Go to www.irs.
gov for additional Information on fling
business related tax returns.
FEDERAL PAYROLL TAX
Federal Withholding Tax: Any
business employing a person must
register with the IRS and acquire an
EIN and pay federal withholding tax at
least quarterly. File Form SS-4 with the
IRS to obtain your number and required
tax forms. Call 800-829-3676 or
800-829-1040 if you have questions.
IRS WEB PRODUCTS
FOR SMALL BUSINESSES
For the most timely and up-to-date
tax information, go to www.irs.gov.
VIRTUAL SMALL BUSINESS
WORKSHOP
www.irs.gov/Businesses/Small-Businesses-
&-Self-Employed/Small-Business-Self-
Employed-Virtual-Small-Business-Tax-
Workshop
The Virtual Small Business Tax
Workshop is the frst of a series of
video products designed exclusively
for small business taxpayers.
This workshop helps business
owners understand federal tax
obligations. The Virtual Small
Business Workshop is available on
CD at www.irs.gov/businesses/small/
article/0,,id=101169,00.html if you
are unable to attend a workshop in
person. Small business workshops are
designed to help the small business
owner understand and fulfll their
federal tax responsibilities. Workshops
are sponsored and presented by
IRS partners who are federal tax
specialists.
Workshop topics vary from a
general overview of taxes to more
specifc topics such as recordkeeping
and retirement plans. Although
most are free, some workshops have
fees associated with them. Fees
for a workshop are charged by the
sponsoring organization, not the IRS.
The IRS’s Virtual Small Business
Tax Workshop is an interactive
resource to help small business owners
learn about their federal tax rights
and responsibilities. This educational
product, available online and on CD
consists of nine stand-alone lessons
that can be selected and viewed in
any sequence. A bookmark feature
makes it possible to leave and return
to a specifc point within the lesson.
Users also have access to a list of
useful online references that enhance
the learning experience by allowing
them to view references and the video
lessons simultaneously.
The Tax Calendar for
Small Businesses and Self-
Employed (Publication 1518)
www.irs.gov/businesses/small/
article/0,,id=101169,00.html .html
contains useful information on general
business taxes, IRS and SSA customer
assistance, electronic fling and paying
options, retirement plans, business
publications and forms, common tax
fling dates, and federal legal holidays.
SOCIAL SECURITY CARDS
All employees must have a Social
Security number and card. It must be
signed by its owner, and you should
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always ask to see and personally record
the Social Security number. Failure to
do so may cause your employee to lose
benefts and considerable trouble for
yourself in back tracking to uncover the
error.
Each payday, your employees must
receive a statement from you telling
them what deductions were made
and how many dollars were taken out
for each legal purpose. This can be
presented in a variety of ways, including
on the check as a detachable portion
or in the form of an envelope with the
items printed and spaces for dollar
deductions to be flled in.
EMPLOYEE CONSIDERATIONS
Taxes
If you have any employees, including
offcers of a corporation but not the sole
proprietor or partners, you must make
periodic payments towards, and/or fle
quarterly reports about payroll taxes
and other mandatory deductions. You
may contact these government agencies
for information, assistance and forms.
Social Security Administration
800-772-1213
www.ssa.gov
Social Security’s Business Services
Online
The Social Security Administration
now provides free electronic services
online at www.socialsecurity.gov/
employer/. Once registered for Business
Services Online, business owners or
their authorized representative can:
• fle W-2s online; and
• verify Social Security numbers
through the Social Security
Number Verifcation Service,
used for all employees prior to
preparing and submitting Forms
W-2.
Federal Withholding
U.S. Internal Revenue Service
800-829-1040
www.irs.gov
Affordable Care Act
For general information about the
ACA go to www.healthcare.gov.
Health Insurance
Compare plans in your area at
www.healthcare.gov.
Colorado’s Own Health Insurance
Marketplace
Connect for Health Colorado is a
marketplace that helps individuals,
families and small employers across
Colorado purchase health insurance and
apply for new federal fnancial
assistance to reduce costs. In addition
to the shopping website, Connect for
Health Colorado offers a statewide
customer support network of Customer
Service Center Representatives, Health
Coverage Guides and licensed agents/
brokers to help Coloradans fnd the best
health plan for their needs. Connect
for Health Colorado is the only place
where Coloradans can apply for advance
premium tax credits and cost-sharing
reductions to help pay for commercial
insurance coverage.
For more information about health
insurance in Colorado go to
www.connectforhealthco.com.
Unemployment and Worker’s
Compensation Insurance
If you hire employees you may be
required to provide unemployment
or workers’ compensation insurance.
For more information on workers
compensation in Colorado go to
https://www.colorado.gov/paci?c/cdle/dwc.
BUSINESS ORGANIZATION:
Choosing Your Business Structure
There are many forms of legal
structure you may choose for your
business. Each legal structure offers
organizational options with different
tax and liability issues. We suggest
you research each legal structure
thoroughly and consult a tax
accountant and/or attorney prior to
making your decision.
The most common organizational
structures are sole proprietorships,
general and limited partnerships and
limited liability companies.
Each structure offers unique tax and
liability benefts. If you’re uncertain
which business format is right for you,
you may want to discuss options with a
business counselor or attorney.
Sole Proprietorship
One person operating a business as
an individual is a sole proprietorship.
It’s the most common form of business
organization. Profts are taxed as
income to the owner personally. The
personal tax rate is usually lower than
the corporate tax rate. The owner
has complete control of the business,
but faces unlimited liability for its
debts. There is very little government
regulation or reporting required with
this business structure.
General Partnership
A partnership exists when two
or more persons join together in
the operation and management
of a business. Partnerships are
subject to relatively little regulation
and are fairly easy to establish. A
formal partnership agreement is
recommended to address potential
conficts such as: who will be
responsible for performing each
task; what, if any, consultation is
needed between partners before
major decisions, and what happens
when a partner dies. Under a general
partnership each partner is liable for
all debts of the business. Profts are
taxed as income to the partners based
on their ownership percentage.
Limited Partnership
Like a general partnership, a
limited partnership is established by
an agreement between two or more
persons. However, there are two types
of partners.
• A general partner has greater
control in some aspects of the
partnership. For example, only
a general partner can decide to
dissolve the partnership. General
partners have no limits on the
dividends they can receive from
proft so they incur unlimited
liability.
• Limited partners can only
receive a share of profts based
on the proportional amount of
their investment, and liability is
similarly limited in proportion to
their investment.
LLCs and LLPs
The limited liability company
or partnership is a relatively
new business form. It combines
selected corporate and partnership
characteristics while still maintaining
status as a legal entity distinct from
its owners. As a separate entity it can
acquire assets, incur liabilities and
conduct business. It limits liability
for the owners. The limited liability
partnership is similar to the LLC, but
it is for professional organizations.
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Employee Insurance
If you hire employees you may be
required to provide unemployment or
workers’ compensation insurance.
WORKPLACE DISABILITY
PROGRAMS
Americans with Disabilities Act
(ADA): For assistance with the ADA,
call 800-669-3362 or visit www.ada.gov.
U.S. CITIZENSHIP AND
IMMIGRATION SERVICES
The Federal Immigration Reform and
Control Act of 1986 requires employers
to verify employment eligibility of
new employees. The law obligates
an employer to process Employment
Eligibility Verifcation Form I-9. The
U.S. Citizenship and Immigration
Services Offce of Business Liaison
offers a selection of information
bulletins and live assistance through
the Employer Hotline. For forms call
800-870-3676, for the Employer Hotline
call 800-357-2099.
E-Verify: Employment Eligibility
Veri?cation
E-Verify, operated by the Department
of Homeland Security in partnership
with the Social Security Administration,
is the best — and quickest — way for
employers to determine the employment
eligibility of new hires. It is a safe,
simple, and secure Internet-based
system that electronically verifes
the Social Security number and
employment eligibility information
reported on Form I-9. E-Verify is
voluntary in most states and there is no
charge to use it.
If you are an employer or employee
and would like more information about
the E-Verify program, please visit
www.dhs.gov/E-Verify or contact
Customer Support staff: 1-888-464-4218
Monday – Friday 8 a.m. – 5 p.m.
E-mail: [email protected]
SAFETY AND HEALTH
REGULATIONS
All businesses with employees
are required to comply with state
and federal regulations regarding
the protection of employees. The
Occupational Safety and Health
Administration provides information on
the specifc health and safety standards
adopted by the U.S. Department of
Labor. Call 1-800-321-6742 or visit
www.osha.gov.
Occupational and Safety Health
Administration (OSHA)
1391 Speer Blvd. (In general, covers
businesses north of I-70)
Denver, CO
303-844-5285
Federal regulations protect the safety and
health of employees.
If outside metro Denver, visit the web site
at: www.osha.gov
Englewood Area Of?ce (In general,
covers businesses south of I-70)
7935 East Prentice Ave, Suite 209
Englewood, CO 80111
303-843-4500
BUILDING CODES,
PERMITS AND ZONING
It is important to consider zoning
regulations when choosing a site
for your business. You may not be
permitted to conduct business out of
your home or engage in industrial
activity in a retail district. Contact
the business license offce in the city or
town where the business is located.
BAR CODING
Many stores require bar coding on
packaged products. Many industrial
and manufacturing companies use bar
coding to identify items they receive and
ship. There are several companies that
can assist businesses with bar-coding
needs. You may want to talk with an
SBDC, SCORE or WBC counselor for
more information.
Federal Registration of Trademarks
and Copyrights
Trademarks or service marks are
words, phrases, symbols, designs or
combinations thereof that identify
and distinguish the source of goods.
Trademarks may be registered at both
the state and federal level. To register a
federal trademark, contact:
U.S. Patent and Trademark Rocky
Mountain Of?ce
1961 Stout St.
Denver, CO 80294
303-297-4600
http://www.uspto.gov/about-us/uspto-
locations/rocky-mountain-regional-of?ce-
colorado.html
U.S. Patent and Trademark Of?ce
P.O. Box 1450
Alexandria, VA 22313-1450
800-786-9199
www.uspto.gov/
Trademark Information Hotline
703-308-9000
STATE REGISTRATION
OF A TRADEMARK
Trademarks and service marks may
be registered in a state.
Caution: Federally registered
trademarks may confict with and
supersede state registered business and
product names.
Patents
A patent is the grant of a property
right to the inventor by the U.S. Patent
and Trademark Offce. It provides the
owner with the right to exclude others
from making, using, offering for sale or
selling the patented item in the United
States.
Additional information is provided in
the publications, General Information
Concerning Patents and other
publications distributed through the
U.S. Patent and Trademark Offce. For
more information, contact the:
U.S. Patent and Trademark Of?ce
800-786-9199 • www.uspto.gov
Copyrights
Copyrights protect original works of
authorship including literary, dramatic,
musical and artistic, and certain other
intellectual works. Copyrights do
not protect facts, ideas and systems,
although it may protect the way these
things are expressed. For general
information contact:
U.S. Copyright Of?ce
U.S. Library of Congress
James Madison Memorial Building
Washington, DC 20559
202-707-9100 - Order Line
202-707-3000 - Information Line
www.copyright.gov
OTHER SOURCES OF
ASSISTANCE
Colorado is rich with history, cultural
activities and events. Colorado was the
38th state of the Union on August 1,
1876. It was called the “Centennial State”
in honor of the one-hundredth year of the
Declaration of Independence. Origin of
State’s Name is Spanish for “Colored Red”.
It has 104,247 square miles (8th largest
state). There are 64 counties and about
180,000 self-employed workers.
Many Indian tribes roamed Colorado
and contributed to the state’s history.
The Apache, Cheyenne, Ute, Arapaho,
Comanche, and Kiowa were important
plains tribes. The Apaches followed the
base of the Rocky Mountains from their
homeland in Canada to their residences on
the eastern plains. The Navajo eventually
settled in southern Colorado. After the
Apaches moved south, the Cheyenne and
Arapaho roamed the state’s north eastern
plains while the Comanche and Kiowa
lived in the south eastern plains. The
Ute inhabited the mountains and river
valleys of western Colorado. Many Native
Americans have remained in Colorado,
especially members of the Ute tribe. Indian
reservations exist today in the southwestern
corner of the state.
Major Industries &
Employers
Colorado is the major hub for business
and industry in the growing Rocky
Mountain region. A wide-range of growing
and established industries ?ourishes
in Colorado. Their prosperity is due, in
part, to the strong partnerships between
the public and private sector, a highly
educated workforce and one of the
best business economies in the country.
From telecom to cable, aerospace to
agriculture, biotechnology to research,
Colorado provides a healthy mix of viable
industries and educated employees, offering
relocating and expanding companies
everything they need to grow and thrive.
Colorado has a diverse economic base. The
state is not dependent on any single sector,
but has a strong core of businesses in a
variety of high-tech and traditional sectors.
Colorado’s strength in mature high tech
industries such as telecommunications,
software development, and high tech
manufacturing has resulted in the highest
concentration among all 50 states of high
tech workers. Emerging industries such as
biotech, photonics, homeland security and
aerospace, nanotech and renewable energy
are gaining momentum.
Colorado’s major industries include:
• Aerospace & Satellite
• Agriculture
• Bioscience
• Emerging Technologies
• Energy, Mining and Natural Resources
• Financial Services
• Information Technology
• Manufacturing
• Telecommunications and Digital Media
MISCELLANEOUS
INFORMATION
This section includes resource information
regarding ADA requirements, copyright
laws, trademarks, patents, exports,
demographic data, health insurance,
environmental and health requirements,
food safety, etc.
GOVERNMENT CONTRACTING ASSISTANCE
- FEDERAL, STATE AND LOCAL
COLORADO PROCUREMENT TECHNICAL
ASSISTANCE CENTER (PTAC)
www.coloradoptac.org
719-434-3470
LEGAL
Legal information can be found on
www.BusinessLaw.gov.
CONNECT2DOT
A Colorado SBDC program funded by the
Colorado Department of Transportation to
help small businesses in the transportation
industry become more competitive and
successful in bidding and contracting
with CDOT and other local transportation
agencies. Free consulting, training and
networking events.
720-624-6728
[email protected]
www.connect2dot.org
U.S. ARCHITECTURAL & TRANSPORTATION
BARRIERS COMPLIANCE BOARD
(USACCESS BOARD):
Provides minimum guidelines for
architectural requirements under the
Americans with Disabilities Act
For technical assistance call: 800-872-3353
www.access-board.gov
TRADEMARKS:
Colorado Secretary of State
303-894-2200
www.sos.state.co.us
U.S. PATENT AND TRADEMARK OFFICE
800-786-9199
www.uspto.gov
COLORADO DEPARTMENT OF
AGRICULTURE
303-239-4100
MARKETS DIVISION
700 Kipling St., Ste. 4000
Lakewood, CO 80215-5894
[email protected]
Specializes in foreign and domestic market
development and technical assistance for
Colorado agricultural products.
COLORADO DEPARTMENT OF PUBLIC
HEALTH AND ENVIRONMENT
4300 Cherry Creek Dr. S.
Denver, CO 80246-1530
303-692-2000
www.cdphe.state.co.us
FOOD AND DRUG ADMINISTRATION (FDA):
Denver Federal Center
Building 20
W 6th Ave & Kipling
Lakewood, CO
214-253-5252
EXPORT/IMPORT:
COLORADO OFFICE OF ECONOMIC
DEVELOPMENT & INTERNATIONAL TRADE
1625 Broadway, Ste. 2700
Denver, CO 80202
303-892-3840 • 303-892-3848 Fax
www.colorado.gov/cs/Satellite/OEDIT/
OEDIT/1162927366334
WORLD TRADE CENTER EDUCATIONAL
SERVICES
1625 Broadway, Ste. 680
Denver, Colorado 80202 USA
303-592-5760
[email protected]
U.S. EXPORT ASSISTANCE CENTER
1625 Broadway, Ste. 680
Denver, CO 80202
303-844-6623
THE DENVER PUBLIC LIBRARY
10 W. 14th Ave. Pkwy.
Denver, CO 80202
720-865-1111
COLORADO DEMOGRAPHY OFFICE
1313 Sherman St.
Denver, CO 80203
303-866-2771
[email protected]
COLORADO DIVISION OF INSURANCE
1560 Broadway
Denver, CO 80202
303-894-7499
H. INCUBATORS
This program is designed to encourage
business start-ups. They provide workshops,
multi-tenant of?ce space, shared of?ce
services, and improved access to capital.
Each center provides services to a very
speci?c clientele. They do this at a low cost
and with a good return on investment to
investors.
COLORADO SPRINGS TECHNOLOGY
INCUBATOR
3595 E. Fountain Blvd.
Colorado Springs, CO 80910
719-685-7877
www.cstionline.org
WESTERN COLORADO BUSINESS
DEVELOPMENT CORP.
2591 Legacy Way
Grand Junction, CO 81503
970-243-5242
www.gjincubator.org/
FITZSIMONS BIOBUSINESS PARTNERS
12635 E. Montview Blvd.
Aurora, CO 80010
720-859-4100
ROCKY MOUNTAIN INNOSPHERE
320 E Vine Dr. #101
Ft Collins, CO 80524
970-221-1301
Colorado Chambers of
Commerce (CoC):
AKRON CoC
245 Main St.
Akron, CO 80720
970-345-2624
ALAMOSA CoC
610 State St.
Alamosa, CO 81101
719-589-3681
ANTONITO CoC
P.O. Box 427
Antonito, CO 81120-0427
719-376-2277
ARVADA CoC
7305 Grandview Ave.
Arvada, CO 80002
303-424-0313
ASIAN CoC
924 Colfax Ave.
Denver, CO 80204
303-595-9737
ASPEN CHAMBER RESORT ASSOCIATION
425 Rio Grande Pl.
Aspen, CO 81611
970-925-1940
[email protected]
AURORA CoC
14305 E. Alameda Ave., Ste. 300
Aurora, CO 80012
303-344-1500
[email protected]
BASALT CoC
101 Midland Ave.
Basalt, CO 81621
970-927-4031
[email protected]
BAYFIELD CoC
P.O. Box 7
Bay?eld, CO 81122
970-884-7372
[email protected]
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BENNETT OR I-70 CORRIDOR CoC
401 S. First St.
Bennett, CO 80102
303-644-4607
[email protected]
BERTHOUD CoC
428 Mountain Ave.
Berthoud, CO 81513
970-532-4200
[email protected]
BLACK CoC
1410 Grant St., Ste. B-104
Denver, CO 80203
303-831-0720
[email protected]
BOULDER CoC
2440 Pearl St.
Boulder, CO 80302
303-442-1044
[email protected]
BRECKENRIDGE RESORT CoC
311 S. Ridge
Breckenridge, CO 80424
970-453-2913
[email protected]
BRIGHTON CoC
22 S. 4th Ave., Ste. 205
Brighton, CO 80601
303-659-0223
[email protected]
BROOMFIELD CoC
2095 W. 6th Ave., Ste. 109
Broom?eld, CO 80020
303-466-1775
info@broom?eldchamber.com
BRUSH AREA CoC
218 Clayton St.
Brush, CO 80723-2104
970-842-2666
[email protected]
BUENA VISTA AREA CoC
343 Hwy. 24 S.
Buena Vista, CO 81211
719-395-6612
[email protected]
BURLINGTON CoC
P.O. Box 62
Burlington, CO 80807
719-346-8070
CANON CITY CoC
403 Royal Gorge Blvd.
Canon City, CO 81212
800-876-7922
[email protected]
CARBONDALE COMMUNITY CoC
520 3rd St., Ste. 3
Carbondale, CO 81623
970-963-1890
[email protected]
CASTLE ROCK CoC
420 Jerry St.
Castle Rock, CO 80104
303-688-4597 or 866-441-8508
[email protected]
CEDAREDGE AREA CoC
245 W. Main St.
Cedaredge, CO 81413-0278
970-856-6961
CHAMBER OF THE AMERICAS
720 Kipling St.
Denver, CO 80215
303-462-1275
[email protected]
CHERRY CREEK CoC
P.O. Box 6449
Denver, CO 80206
303-388-6022
[email protected]
COLLBRAN CoC
P.O. Box 143
Collbran, CO 81624-0143
970-314-4999
DENVER GAY AND LESBIAN CoC
P.O. Box 1678
Denver, CO 80201
720-556-0682
COLORADO SPRINGS BLACK CoC
905 Aviation Way, Ste. 170
Colorado Springs, CO 80916
719-487-9179
COLORADO SPRINGS HISPANIC CHAMBER
912 N. Circle Dr., #203
Colorado Springs, CO 80909
719-635-5001
[email protected]
COLORADO SPRINGS KOREAN CoC
1740 Shasta Dr.
Colorado Springs, CO 80910
719-637-4909
[email protected]
COLORADO WOMEN’S CoC
1350 17th St., #100
Denver, CO 80202
303-458-0220
[email protected]
CONIFER CoC
25997 Conifer Rd.
Conifer, CO 80433
303-838-5711
[email protected]
CORTEZ AREA CoC
928 E. Main St.
Cortez, CO 81321
970-565-3414
[email protected]
CRAIG CoC
360 E. Victory Way
Craig, CO 81625
970-824-5689
[email protected]
CRAWFORD AREA CoC
P.O. Box 22
Crawford, CO 81415
970-921-4000 • 970-921-4725 F
[email protected]
CREEDE-MINERAL COUNTY CoC
904 Main St.
Creede, CO 81130
719-658-2374 or 800-327-2102
719-658-2717 F
[email protected]
CRESTED BUTTE/MT. CRESTED BUTTE CoC
601 Elk Ave.
Crested Butte, CO 81224-1288
970-349-6438 or 800-545-4505
[email protected]
CUSTER COUNTY CoC INC.
110 Rosita Ave.
Westcliffe, CO 81252
719-783-9163
[email protected]
DELTA AREA CoC
301 Main St.
Delta, CO 81416
970-874-8616
[email protected]
DENVER HISPANIC CoC
Bernard Valdez Hispanic
Heritage Ctr.
924 W. Colfax Ave.
Denver, CO 80204
303-534-7783
[email protected]
DENVER METRO CoC
1445 Market St.
Denver, CO 80202-1729
303-534-8500
[email protected]
DIVIDE CoC
P.O. Box 101
Divide, CO 80814-0101
719-686-7605
[email protected]
DOLORES CoC
201 Railroad Ave.
Dolores, CO 81323
970-882-4018
[email protected]
DOWNTOWN DENVER PARTNERSHIP
511 16th St., #200
Denver, CO 80202
303-534-6161
[email protected]
DURANGO AREA CoC
111 S. Camino del Rio
Durango, CO 81302-2587
970-247-0312
[email protected]
EADS CoC
P.O. Box 163
Eads, CO 81036-0163
719-438-5590
[email protected]
EAGLE VALLEY CoC
P.O. Box 964
Eagle, CO 81631
970-306-2262
[email protected]
ELIZABETH AREA CoC
166 Main St., Ste. E
Elizabeth, CO 80107
303-646-4287
[email protected]
ENGLEWOOD CoC
3501 S. Broadway
Engelwood, CO 80110
303-789-4473 • 303-789-0098 F
[email protected]
ERIE CoC
235 Wells St.
Erie, CO 80516
303-828-3440
[email protected]
ESTES PARK CoC
140 Moraine Ave.
Estes Park, CO 80517
970-586-4431
EVANS AREA CoC
2986 W. 29th St.
Greeley, CO 80631
970-330-4204
[email protected]
EVERGREEN AREA CoC
30480 Stagecoach Blvd.
Evergreen, CO 80439
303-674-3412
[email protected]
FLORENCE CoC
117 S. Pikes Peak Ave.
Florence, CO 81226-0145
719-784-3544
[email protected]
FORT COLLINS AREA CoC
225 S. Meldrom
Fort Collins, CO 80521
970-482-3746
[email protected]
FORT LUPTON CoC
321 Denver Ave.
Fort Lupton, CO 80621
303-857-4474 • 303-857-4433 F
[email protected]
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FORT MORGAN AREA CoC
300 Main St./P.O. Box 971
Fort Morgan, CO 80701
970-867-6702
fortmorganchamber@?ci.net
FOUNTAIN CoC
410 S. Santa Fe Ave., #100
Fountain, CO 80817
719-382-3190
[email protected]
FRUITA AREA CoC
432 E. Aspen Ave.
Fruita, CO 81521
970-858-3894
[email protected]
GLENWOOD SPRINGS CHAMBER RESORT
ASSOCIATION
802 Grand Ave.
Glenwood Springs, CO 81601
970-945-6589
[email protected]
GOLDEN CoC
1010 Washington St.
Golden, CO 80402
303-279-3113
[email protected]
GRANBY CoC
475 E. Agate Ave.
Granby, CO 80446
970-887-2311
[email protected]
GRAND JUNCTION AREA CoC
360 Grand Ave.
Grand Junction, CO 81501
970-242-3214
[email protected]
GRAND LAKE AREA CoC
P.O. Box 429
Grand Lake, CO 80447
970-627-3402
[email protected]
GREATER COLORADO SPRINGS CoC
6 S. Tejon
Colorado Springs, CO 80903
719-635-1551
[email protected]
GREELEY/WELD CoC
902 7th Ave.
Greeley, CO 80631
970-352-3566
[email protected]
GUNNISON COUNTY CoC
500 E. Tomichi
Gunnison, CO 81230-0036
970-641-1501
[email protected]
HAXTUN CoC
145 S. Colorado
Haxtun, CO 80731
970-774-6104
[email protected]
HAYDEN CoC
252 W. Jefferson
Hayden, CO 81639
970-846-0616
HEART OF THE ROCKIES CoC
406 W. Hwy. 50
Salida, CO 81201
719-539-2068
[email protected]
HIGHLANDS RANCH CoC
300 W. Plaza Dr., #225
Highlands Ranch, CO 80129
303-791-3500
[email protected]
HOLYOKE CoC
212 S. Interocean
Holyoke, CO 80734
970-854-3517
[email protected]
HOTCHKISS COMMUNITY CoC
P.O. Box 158
Hotchkiss, CO 81419
970-872-3226
HUERFANO COUNTY CoC
400 Main St.
Wallsenburg, CO 81089
719-738-1065
[email protected]
IDAHO SPRINGS CoC
P.O. Box 1641
Idaho Springs, CO 80452
303-567-4447
INDIA CoC (NUICC)
700 17th St., Ste. 2000, 20th Fl.
Denver, CO 80202
720-323-3728
[email protected]
JOHNSTOWN-MILLIKEN CoC
26 Rutherford Ave.
Johnstown, CO 80534
970-587-7042
[email protected]
KEENESBURG CoC
P.O. Box 44
Keenesburg, CO 80643
303-732-4009
KERSEY AREA CoC
P.O. Box 397
Kersey, CO 80644
970-330-3099
KREMMLING CoC
203 Park Ave.
Kremmling, CO 80459
970-724-3472
[email protected]
LA JUNTA CoC
110 Sante Fe Ave.
LaJunta, CO 81050
719-384-7411
[email protected]
LA VETA-CUCHARA CoC
P.O. Box 32
La Veta, CO 81055
719-742-3676
[email protected]
LAFAYETTE CoC
1209 S. Public Rd.
Lafayette, CO 80026
303-666-9555
[email protected]
LAKE CITY-HINSDALE COUNTY CoC
800 Gunnison Ave.
Lake City, CO 81235
970-944-2527
[email protected]
LAKEWOOD, WEST CoC
Serving Jefferson County
1667 Cole Blvd., Bldg. 19, Ste. 400
Lakewood, CO 80228-0748
303-233-5555
[email protected]
LAMAR CoC
109 A E. Beech St.
Lamar, CO 81052
719-336-4379
[email protected]
LAS ANIMAS COUNTY CoC
332 Ambassador Thompson Blvd.
Las Animas, CO 81054
719-456-0453
LEADVILLE LAKE COUNTY CoC
809 Harrison Ave.
Leadville, CO 80461
719-486-3900
[email protected]
LIMON CoC
P.O. Box 101
Limon, CO 80828
719-775-9418
LOGAN COUNTY CoC
109 N. Front St.
Sterling, CO 80751
970-522-5070
[email protected]
LONGMONT AREA CoC
528 Main St.
Longmont, CO 8050
303-776-5295
[email protected]
LOUISVILLE CoC
901 Main St.
Louisville, CO 80027
303-666-5747
[email protected]
LOVELAND CoC
5400 Stonecreek Cir.
Loveland, CO 80538
970-667-6311
[email protected]
LYONS CoC
443 Main St.
Lyons, CO 80540
303-823-5215
[email protected]
MANCOS CoC
101 E. Bauer St.
Mancos, CO 81328
970-533-7434
[email protected]
MANITOU SPRINGS CoC
354 Manitou Ave.
Manitou Springs, CO 80829
719-685-5089
[email protected]
MEEKER CoC
710 Market St.
Meeker, CO 81641
970-878-5510
[email protected]
METRO NORTH CoC
14583 Orchard Pkwy., #300
Westminster, CO 80023
303-288-1000
[email protected]
MONTE VISTA CoC
947 1st Ave.
Monte Vista, CO 81144
719-852-2731
[email protected]
MONTROSE ASSOCIATION OF COMMERCE
AND TOURISM
1519 E. Main St.
Montrose, CO 81401-3807
970-249-5000 or 800-923-5515
[email protected]
MONUMENT, TRI-LAKES CoC
300 Hwy. 105
Monument, CO 80132
719-481-3282
[email protected]
NATURITA, NUCLA-NATURITA AREA COC
203 W. Main St.
Naturita, CO 81422-0425
970-865-2350
[email protected]
NEW CASTLE CoC
386 W. Main St., Ste. 101
New Castle, CO 81647
970-984-2897
[email protected]
NORTH PARK CoC
472 Main St.
Walden, CO 80480
970-723-4600
[email protected]
NORWOOD CoC
P.O. Box 116
Norwood, CO 81423-0116
970-327-4928
[email protected]
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ORDWAY, CROWLEY COUNTY CoC
631 Main St.
Ordway, CO 81063
719-267-5225
PAGOSA SPRINGS CoC
402 San Juan St.
Pagosa Springs, CO 81147
970-264-2360
[email protected]
PALISADE CoC
319 Main St.
Palisade, CO 81526-0729
970-464-7458
[email protected]
PAONIA CoC
124 Grand Ave.
Paonia, CO 81428
970-527-3886
[email protected]
PARKER CoC
19590 E. Main St., #100
Parker, CO 80138
303-841-4268
[email protected]
PLATEAU VALLEY CoC
P.O. Box 143
Collbran, CO 81624
970-314-4999
[email protected]
PUEBLO LATINO CoC
215 S. Victoria Ave.
Pueblo, CO 81003
719-542-5513
[email protected]
PUEBLO, GREATER CoC
302 N. Santa Fe Ave.
Pueblo, CO 81002
719-542-1704
[email protected]
RANGELY AREA CoC
209 E. Main St.
Rangely, CO 81648
970-675-8476
[email protected]
RIFLE AREA CoC
200 Lions Park Cir.
Ri?e, CO 81650
970-625-2085
mail@ri?echamber.com
ROCKY FORD CoC
105 Main St.
Rocky Ford, CO 81067
719-254-7483
[email protected]
ROCKY MOUNTAIN INDIAN CoC
924 W. Colfax Ave., Ste. 104F
Denver, CO 80204
303-629-0102
[email protected]
SALIDA, HEART OF THE ROCKIES CoC
See Heart of the Rockies Chamber
SILVERTON CoC
414 Green St.
Silverton, CO 81433-0565
970-387-5654
[email protected]
SNOWMASS VILLAGE RESORT
ASSOCIATION
38 Snowmass Village Upper Mall
Snowmass Village, CO 81615
970-923-2000
[email protected]
SOUTH FORK CoC
29803 W. Hwy. 160
South Fork, CO 81154
719-873-5556
[email protected]
SOUTH METRO CoC
2154 E. Commons Ave., Ste. 342
Centennial, CO 80122
303-795-0142
[email protected]
SOUTHERN COLO WOMEN’S CoC
P.O. Box 49218
Colorado Springs, CO 80906
719-442-2007
[email protected]
STEAMBOAT SPRINGS CHAMBER RESORT
ASSOCIATION
125 Anglers Dr.
Steamboat Springs, CO 80477
970-879-0880
[email protected]
STERLING CoC
P.O. Box 1683
Sterling, CO 80443
970-522-5070
SUMMIT COUNTY CoC
P.O. Box 5450
Frisco, CO 80443
970-668-2051
[email protected]
TELLURIDE CoC
P.O. Box 653
Telluride, CO 81435
800-525-3455
[email protected]
THORNTON, METRO NORTH CoC
2921 W. 120th Ave., Ste. 210
Thornton, CO 80229
303-288-1000
[email protected]
TRINIDAD-LAS ANIMAS COUNTY CoC
See Las Animas County Chamber of
Commerce
VAIL CHAMBER & BUSINESS
ASSOCIATION
241 S. Frontage Rd. E., #2
Vail, CO 81657
970-477-0075
[email protected]
VALLECITO LAKE CoC
17252 County Rd. 501
Bay?eld, CO 81122
970-247-1573
[email protected]
WALSENBURG, HUERFANO COUNTY CoC
See Huerfano County Chamber of
Commerce
WELD CoC
See Greeley Chamber of Commerce
WESTCLIFFE, CUSTER COUNTY
MERCHANTS & COC
P.O. Box 81
Westcliffe, CO 81252-0081
719-783-9163
[email protected]
WINDSOR CoC
421 Main St.
Windsor, CO 80550
970-686-7189
[email protected]
WINTER PARK-FRASER VALLEY CoC
78841 U.S. Hwy. 40/P.O. Box 3236
Winter Park, CO 80482
970-726-4118 • 970-726-9449 F
[email protected]
WOODLAND PARK CoC, GREATER
210 E. Midland Ave.
Woodland Park, CO 80866
719-687-9885
[email protected]
WRAY CoC
110 E. 3rd St.
Wray, CO 80758
970-332-3484
[email protected]
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SBA Lenders
Approved to
Originate 7(a) Loans
5 STAR BANK
7(a) Loans
719-475-7827
ADVANTAGE BANK
7(a) Loans
970-613-1982
ALAMOSA STATE BANK
7(a) Loans
719-589-2564
ALPINE BANK
7(a) Loans, SBA Express
970-945-2424
AMG BANK
7(a) Loans
303-447-8877
ANB
7(a) Loans
303-394-5100
BANK OF BURLINGTON
7(a) Loans
719-346-5376
BANK OF COLORADO
7(a) Loans
970-206-1160
THE BANK OF DENVER
7(a) Loans
303-572-3600
BANK OF ESTES PARK
7(a) Loans
970-586-4485
CACHE BANK & TRUST
7(a) Loans
970-351-8600
CANYON NATIONAL BANK
7(a) Loans, PLP
719-276-9153
CASTLE ROCK BANK
7(a) Loans
303-688-5191
CENTENNIAL BANK
7(a) Loans, SBA Express
303-680-1600
CHAMPIONS BANK
7(a) Loans
303-840-8484
CITIZENS BANK OF PAGOSA
7(a) Loans
970-264-2235
THE CITIZENS BANK OF OURAY
7(a) Loans
970-325-4476
CITYWIDE BANK
7(a) Loans, SBA Express
303-365-3600
COBIZ BANK
7(a) Loans, PLP, SBA Express,
Export Express
303-293-2265
COLLEGIATE PEAKS BANK
7(a) Loans
719-395-2472
THE COLORADO BANK & TRUST
COMPANY OF LA HUNTA
7(a) Loans
719-384-8131
COLORADO EAST BANK & TRUST
7(a) Loans
719-336-5200
COLORADO ENTERPRISE FUND
Community Advantage
303-860-0242
COLORADO LENDING SOURCE
Community Advantage
303-657-0010
COLORADO NATIONAL BANK
7(a) Loans, PLP
970-464-5701
COMMUNITY BANKS
OF COLORADO
7(a) Loans, PLP
720-554-6656
DEL NORTE BANK
7(a) Loans
719-657-3376
DENVER INVESTMENT ADVISORS
LLC
7(a) Loans
303-312-5000
THE EASTERN COLORADO BANK
7(a) Loans
785-852-2000
EVERGREEN NATIONAL BANK
7(a) Loans
303-674-2700
FARMERS SATE BANK OF AULT
7(a) Loans
970-834-2121
FARMERS STATE BANK
OF BRUSH
7(a) Loans
970-842-6101
FARMERS STATE BANK
OF CALHAN
7(a) Loans
719-347-2727
FIRST AMERICAN STATE BANK
7(a) Loans
303-694-6464
FIRST COLORADO NATIONAL
BANK
7(a) Loans, PLP, SBA Express
970-527-4141
FIRST NATIONAL BANK
OF TRINIDAD
7(a) Loans
719-846-9881
THE FIRST NATIONAL BANK
OF DURANGO
7(a) Loans
970-247-3020
THE FIRST NATIONAL BANK
OF FLEMING
7(a) Loans
970-265-2555
THE FIRST NATIONAL BANK
OF HUGO
7(a) Loans
719-743-2415
FIRST NATIONAL BANK
OF ANIMAS
7(a) Loans
719-465-1512
FIRST NATIONAL BANK
OF CORTEZ
7(a) Loans
970-565-3781
FIRST NATIONAL BANK
OF WRAY
7(a) Loans
970-332-4824
FIRST PIONEER NATIONAL BANK
7(a) Loans
970-332-4824
FIRST SOUTHWEST BANK
7(a) Loans
719-587-4200
FIRST STATE BANK
OF COLORADO
7(a) Loans, PLP, SBA Express,
Export Express
970-872-3111
FIRST BANK
7(a) Loans, SBA Express
303-238-9000
FLAT IRONS BANK
7(a) Loans
303-530-4999
SBA PARTI CI PATI NG L E NDE RS
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Top 10 SBA Lenders in FY 2014 Loan Units Loan Volume in $
U.S. BANK NATIONAL ASSOCIATION 249 $38,175,600
WELLS FARGO BANK NATL ASSOC 248 $77,207,800
JPMORGAN CHASE BANK NATL ASSOC 89 $12,783,200
COBIZ BANK 66 $42,100,100
COMPASS BANK 62 $9,643,700
KEYBANK NATIONAL ASSOCIATION 49 $18,224,500
BANK OF THE WEST 37 $19,620,900
WILSHIRE BANK 36 $34,806,500
GUARANTY BK & TR CO 28 $15,136,100
BBCN BANK 22 $25,930,300
For more information on SBA loan guaranty programs or lender contact information please call the
Colorado District Offce at 303-844-2607.
COLORADO DISTRICT OFFICE FISCAL YEAR 2014 STATISTICS
SBA PARTI CI PATI NG L E NDE RS
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FMS BANK
7(a) Loans
970-867-3319
FOWLER STATE BANK
7(a) Loans
719-263-4276
FRONTIER BANK
7(a) Loans
719-336-4351
GRAND MOUNTAIN BANK FSB
7(a) Loans
970-887-1221
GUARANTY BANK & TRUST
COMPANY
7(a) Loans, PLP, SBA Express,
Export Express
303-293-5500
THE GUNNISON BANK AND
TRUST COMPANY
7(a) Loans
970-641-0320
HIGH COUNTRY BANK
7(a) Loans
719-539-2516
HIGH PLAINS BANK
7(a) Loans
719-765-4000
HOME LOAN STATE BANK
7(a) Loans
970-243-6600
HOME STATE BANK
7(a) Loans
970-203-6100
INTEGRITY BANK & TRUST
7(a) Loans
719-484-0077
LEGACY BANK
7(a) Loans
719-829-4811
MANCOS VALLEY BANK
7(a) Loans
970-533-7736
MOUNTAIN VALLEY BANK
7(a) Loans
970-723-8221
MOUNTAIN VIEW BANK
OF COMMERCE
7(a) Loans, PLP, SBA Express
303-243-5400
NATIVE AMERICAN BANK,
NATIONAL ASSOCIATION
7(a) Loans
800-368-8894
NORTH VALLEY BANK
7(a) Loans
303-452-5500
NORTHSTAR BANK OF
COLORADO
7(a) Loans
720-387-3900
PARK STATE BANK & TRUST
7(a) Loans
719-687-9234
PEOPLES NATIONAL BANK
7(a) Loans
800-999-9929
PIKES PEAK NATIONAL BANK
7(a) Loans
719-473-5310
PINE RIVER VALLEY BANK
7(a) Loans
970-884-9583
POINTS WEST COMMUNITY
BANK
7(a) Loans
970-474-3341
PREMIER BANK
7(a) Loans
303-623-8888
THE PUEBLO BANK AND TRUST
COMPANY
7(a) Loans
719-545-1834
REDSTONE BANK
7(a) Loans
720-880-5000
ROCKY MOUNTAIN BANK &
TRUST FLORENCE
7(a) Loans
719-784-6316
SOLERA NATIONAL BANK
7(a) Loans, PLP
303-209-8600
THE STATE BANK
7(a) Loans
719-384-5901
STOCKMENS BANK
7(a) Loans, PLP, SBA Express,
Export Express
719-228-1104
SUMMIT BANK & TRUST
7(a) Loans
303-460-4700
TIMBERLINE BANK
7(a) Loans, PLP, SBA Express,
Export Express
970-683-5560
VALLEY BANK & TRUST
7(a) Loans
303-659-3490
VERUS BANK OF COMMERCE
7(a) Loans, PLP, SBA Express,
Export Express
970-204-1010
WESTERN CAPITAL HOLDINGS,
INC
7(a) Loans
866-997-6775
WRAY STATE BANK
7(a) Loans
970-332-4111
YAMPA VALLEY BANK
7(a) Loans
970-879-2993
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When Teresa Porter took over as the
President and CEO of ISYS Technologies
(ISYS) in 2002 the frm had just two
employees. Today, the business has
grown to more than 200 employees and
subcontractors in 16 locations across
10 states. ISYS Technologies is an
engineering and information technology
services company providing support
to the Federal Government and other
public sector customers. In addition to its
Littleton, CO headquarters, the company
has offces in Colorado Springs, Omaha,
and the National Capital Region.
The company is a Woman-Owned Small
Business that targets its services to
federal, state and local government
customers worldwide. Porter has a 30-year
sales and management background in
the technology industry, which includes
diverse experience managing both
small and large service organizations.
Since joining ISYS Technologies, the
business has grown signifcantly into a
reputable and reliable supplier to the U.S.
government. The frm’s annual revenues
have expanded from less than $1 million
per year to more than $22 million in 2014.
ISYS Technologies provides services in
three core areas: Infrastructure Support
Services/Cyber Security, Engineering
Services, and Military Operations
Support. Their current customers include
the Department of Defense, NASA,
NOAA and other federal, state and local
government entities. In order to support
these organizations, the business employs
eight full-time recruiters who maintain a
pipeline of new employee candidates and
a proprietary database of over 100,000
resumes. They are able to identify, hire
and deploy new employees typically within
2-3 weeks.
Since 2012, Teresa Porter has applied
her guiding principles to maintain a
stable fnancial position in a declining
market. Working with industry partners,
she minimizes risk to ISYS by receiving
advice, counsel and support to develop new
service offerings. Currently, the business
is in a Mentor Protégé relationship
with the Raytheon Company, which is
sponsored by the U.S. Air Force. Through
the Mentor Protégé Program, the Air Force
provides fnancial support to Raytheon
in exchange for mentoring ISYS, which
involves providing
developmental
assistance in
Cyber Security
service offerings.
Porter has established a companywide
commitment to supporting local and
national community organizations. Some
of the programs supported by ISYS
employees include the National Guard and
Reserve, Crawford House for Homeless
Veterans in Colorado Springs, Toys for
Tots, Wounded Warriors and the Denver
Children’s Hospital. In 2014 the company
was given the Patriotic Employer award
from the Offce of the Secretary of Defense
for their work with the National Guard
and Reserve.
In 2010, ISYS earned the distinction as
SBA’s Region VIII Subcontractor of the
Year. The business was named a Top 100
Colorado Women-Owned Business and one
of the Top 500 Woman-Owned Companies
in the nation by DiversityBusiness.
com. Recently, the Denver Business
Journal named it a Top 20 Women-
Owned Company. All of this hard work
culminated in 2015 when Teresa Porter
was named the SBA’s Colorado Small
Business Person of the Year
Colorado District Office
2015 Small Business Person of the Year Winner
S T O R Y
S U C C E S S
Teresa Porter
Builds ISYS
Technologies Into
a Business
Powerhouse
www.SBA.gov
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On the Cover: SBA Helps Unify Janitorial and Water Companies Under One Roof
Elliott Henry had just graduated from high school when he traveled to St. Louis looking for work. He had $35
in his pocket and a burning desire to land a factory job. With patience and a lot of determination, he landed his
dream job as a utility worker cleaning foors and restrooms. Having some free evenings to fll, Elliott took on
part-time employment with a local janitorial company. He learned the cleaning business frst hand and attended
evening seminars to expand his leadership skills.
When the owner of the company was ready to sell his business, Elliott decided to branch out on his own. He
developed a business plan, received a business license, and launched Maintenance Unlimited Janitorial. To help
fund his new business, Elliott received a small SBA 7(a) Loan of $10,000. The 7(a) Loan is the SBA’s primary
business loan and is the agency’s most frequently used loan program because of its fexibility.
The janitorial company was doing quite well when Elliott received an unexpected opportunity to get into the
water distribution business. It was a leap of faith since Elliott had no prior water processing experience. He
named his new venture Unlimited Water Processing, and, before long, his water company was making its own
plastic bottles and delivering water by the truckload to such companies as Conrail, Union Pacifc and Metro Rail
in Chicago.
By 2011, Elliott was operating his janitorial and water processing companies out of four different buildings.
The separate locations led to a drop in productivity and poor
communication. Yet, despite having two proftable companies
and a substantial amount in personal savings, Elliott found it
diffcult to secure a loan to purchase a new building. Then he
was introduced to SBA’s 504 Loan Program, which provides
growing businesses long-term, fxed-rate fnancing for major fxed
assets, such as land and buildings.
In addition to making it easier to make payroll while fnancing his
new facility, the $700,000 loan Elliott received helped him spread
his two businesses over 54,000 square feet of space. His 73
employees are now more productive and happily united under
one roof.
Visit us online: www.sba.gov/co 54 — Colorado Small Business Resource
Visit us online: www.sba.gov/co Colorado Small Business Resource — 55
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