Description
Lenders who participate in the U.S. Small Business Administrations Preferred Lender Program can approve loans through the agencys new Small Loan Advantage program beginning February 15th.
------------------------------------------------------------
THE WEEKLY CONNECTION
Entrepreneurship ~ Innovation ~ Technology
------------------------------------------------------------
February 14, 2011
In Today’s Connection:
? SBA Small Loan Advantage Program and Community Advantage Program
? 2011 Small Business Online Marketing Contest - Sponsored by Constant
Contact
? New Dealer Floor Plan Pilot Program
? SEDAC Newsletter
? Office of Advocacy Small Business Advocate Newsletter
? IEN Program Success Of The Week - Automated Industrial Machinery
(AIM), Inc.
? Getting The Most Out Of WebCATS
? Website Of The Week - www.smbceo.com
? Resource Of The Week - Corporate Turnaround Toolbox
? What's New On CenterConnect
? Moves And News
SBA Small Loan Advantage Program and Community Advantage Program
Lenders who participate in the U.S. Small Business Administration’s Preferred Lender Program can approve
loans through the agency’s new Small Loan Advantage program beginning February 15th. At the same
time, the agency will begin accepting applications from community-based, mission-focused lenders who are
interested in making SBA-guaranteed loans through the new Community Advantage program.
Both the Small Loan Advantage and Community Advantage programs were announced in December as part
of the agency’s efforts to increase the number of lower dollar loans being made to small businesses and
entrepreneurs in underserved communities.
Built on what the agency refers to as its “Advantage” platform, both Small Loan Advantage and Community
Advantage offer a streamlined application process for SBA-guaranteed 7(a) loans up to $250,000.
Advantage loans will come with the regular 7(a) government guarantee, 85 percent for loans up to
$150,000 and 75 percent for those greater than $150,000.
Starting February 15th, any of the 610 financial institutions across the country in the SBA’s Preferred Lender
Program (PLP) can approve loans using the new Small Loan Advantage process. Under PLP, which includes
most of the agency’s highest volume lenders, SBA delegates the final credit decisions to these lenders.
Additionally, on February 15th, SBA will begin accepting applications from financial institutions who are
interested in becoming Community Advantage lenders. Through Community Advantage, the agency will
expand the points of access small business owners have for getting loans by opening SBA’s 7(a) loan
program to “mission-focused” financial institutions, including Community Development Financial
Institutions, SBA’s Certified Development Companies and SBA’s nonprofit micro lending intermediaries.
Community Advantage will leverage the experience these institutions already have in lending to minority,
women-owned and start-up companies in economically challenged markets, along with their management
and technical assistance expertise, to help make their borrowers successful.
Community-based organizations interested in becoming Community Advantage lenders should contact the
closest SBA district office.
2011 Small Business Online Marketing Contest - Sponsored by Constant Contact
If you are a small business in Chicago, Constant Contact wants you to show them your best email or social
media campaign. You could win cash and a free Constant Contact account !
Eric Groves, Senior V.P. of Constant Contact, and a panel of industry experts and Chicago luminaries will
pick the best entries. You deserve a prize — Enter your winning campaign today! Any campaign you run
between November 1st, 2010 and February 28th, 2011 is eligible. The total value of all contest prizes is
$10,000.
Don't have Email Marketing? Sign up today
7
for your FREE 90-day trial. Want to learn how Email + Social
Media can grow your business? Learn how to use Email Marketing + Social Media Marketing at Constant
Contacts free Chicago seminars
8
in 2011.
The deadline to enter the contest in Monday, February 28th. Be sure to read the contest rules and
regulations
5
.*
For additional information, please click on:http://www.constantcontact.
com/landing/chicago201012/index.jsp
New Dealer Floor Plan Pilot Program
On September 27, 2010, President Obama signed the Small Business Jobs Act of 2010 in which, Section
1133(a) authorized a new, expanded Dealer Floor Plan (DFP) Pilot Program. This new DFP Pilot will be
effective February 9, 2011 and will remain available until September 30, 2013.
Under the new DFP Pilot, SBA is implementing a 7(a) loan guaranty product targeted to retail dealers of new
and used titleable inventory, including but not limited to automobiles, motorcycles, boats (including boat
trailers), recreational vehicles and manufactured housing (mobile homes). The key features of the new DFP
Pilot are set forth below. More detailed guidance is set forth in a procedural guide (“DFP Procedural Guide”),
which is available on SBA’s DFP website athttp://www.sba.gov/content/dealer-floor-plan-financing-
program-0. The Guide is located at the bottom of the page as a pdf attachment athttp://www.sba.gov/sites/default/files/DFP Procedural Guide (2-9-2011).pdf
Key Features
? Maximum guaranty of 75%;
? Minimum loan amount of $500,000 and maximum loan amount of $5,000,000;
? Maximum advance rate of 100% for both new and used inventory;
? Minimum loan maturity of 1 year and maximum loan maturity of 5 years (the expiration of the pilot
on September 30, 2013 will have no effect on any DFP line of credit approved by SBA on or before
that date);
? DFP lines of credit will be revolving lines of credit;
? Loan proceeds may be used for the acquisition of titleable inventory for retail sales, to refinance
existing floor plan lines of credit with another lender, or to replace existing floor plan lines of credit
with the participating lender. Proceeds may also be used to pay the SBA guaranty fee;
? Repayment of these lines will occur as the acquired inventory is sold, with interest paid monthly;
? Maximum interest rates will be the same as allowed under SBA’s standard 7(a) loan program;
? Collateral must be secured by a first lien on all titleable inventory acquired with the proceeds of the
DFP line of credit. This lien may be perfected by obtaining either (i) the titles to the inventory
reflecting no prior liens, or (ii) a first perfected security interest in all titleable inventory acquired
with any portion of the proceeds from the DFP line of credit (additional collateral to be taken in
accordance with the lender’s existing policies and procedures governing floor plan financing);
? Lenders may charge the borrower the same fees allowed under SBA’s standard 7(a) loan program
with the exception of the extraordinary servicing fee (SBA will allow lenders to charge an
extraordinary servicing fee that is higher than the 2% allowed by Agency regulations at 13 CFR
120.221(b) provided the fee meets certain conditions);
? DFP lines of credit may not be sold on SBA’s secondary market, but may be included in participating
lender financings or other conveyances, including securitizations, participations and pledges,
provided the lender complies with 13 CFR 120.420 through 120.435;
? Lenders with an executed Loan Guaranty Agreement (SBA Form 750) may participate in the DFP
Pilot;
? Lenders with at least $1 billion in floor plan lines of credit in their current portfolio may qualify for
delegated authority under the DFP Pilot, such lenders will be required to sign a separate
Supplemental Guaranty Agreement (any delegated authority the lender has as a 7(a) lender, such as
Preferred Lender Program (PLP) or SBA Express authority, will not apply to the DFP Pilot);
? In addition to their 1502 reporting on all SBA-guaranteed loans, lenders will be required to report
quarterly on disbursement and collection activity on DFP Pilot Program lines of credit using SBA Form
1502R;
? Under the DFP Pilot, SBA will allow the lender to make demand on SBA to honor its guaranty if the
borrower is in default on any financial covenant for more than 30 calendar days and the default has
not been cured. If a lender discovers that the borrower is in a sold out of trust (SOT) situation, the
lender may request that SBA honor its guaranty 30 calendar days after discovery of an SOT situation
that has not been cured during the 30 day period. If a lender discovers an unremedied adverse
change in the financial condition, organization, management, operation, or assets of the Borrower,
the lender may request that SBA honor its guaranty 30 calendar days after discovery of the
unremedied adverse change.
? Liquidation of the titleable inventory securing the DFP line of credit will be required prior to making
demand on SBA but the lender will not be required to liquidate all additional business personal
property securing the line prior to making demand;
? Additional documentation, such as floor check reports, monthly manufacturer’s dealership financial
statements and monthly reconciliations of the lender’s floor plan inspection reports with the dealer’s
financials, will be required with any request for SBA to honor its guaranty. Delegated lenders also will
be required to provide a copy of the lender’s credit memo with any guaranty purchase request;
? As part of the purchase review process, SBA will review the lender’s compliance with its existing floor
plan financing policies and procedures, as well as its compliance with the DFP Federal Register Notice
and the Procedural Guide. Also, if proceeds of the DFP line are used to replace a same institution
debt floor plan line and the borrower defaults within 90 days of initial disbursement, SBA may deny
liability on its guaranty of the DFP line; and
? As part of its ongoing lender oversight activities, SBA’s Office of Credit Risk Management (OCRM) will
review, evaluate and approve the floor plan lending policies, procedures and practices of each lender
participating in the DFP Pilot, as well as any reports the lenders provide to SBA.
Regulatory Waivers
Pursuant to the authority provided to SBA under 13 CFR 120.3 to suspend, waive or modify certain
regulations in establishing and testing pilot loan initiatives for a limited period of time, SBA is waiving or
modifying as appropriate the following regulations, which otherwise apply to 7(a) loans, for loans made
under the DFP Pilot only:
? 13 CFR 120.221(b) (limit on the extraordinary servicing fee);
? 13 CFR 120, Subpart F (secondary market regulations);
? 13 CFR 120.520(a) (when a lender may make demand on SBA to honor its guaranty); and
? 13 CFR 120.524 (when SBA is released from liability on its guaranty).
A full discussion of the regulations being waived or modified can be found in the Notice published by SBA in
the Federal Register on February 9, 2011 (76 FR 7098).
All other provisions of the Small Business Act applicable to the 7(a) loan program apply to the DFP Pilot.
Unless waived or modified in the above noted Federal Register Notice, all regulations applicable to the 7(a)
loan program apply to the DFP Pilot. All standard operating procedures applicable to the 7(a) loan program
that are not superseded by any provision of the Federal Register Notice or the DFP Procedural Guide apply
to loans made under the DFP Pilot.
Questions
Questions on the new DFP Pilot Program may be directed to the Lender Relations Specialist in the local SBA
district office. The local SBA district office may be found at:http://www.sba.gov/about-offices-list/2.
SEDAC Newsletter
The Smart Energy Design Assistance Center (SEDAC) is pleased to announce that your free subscription to
our monthly newsletter is now available for download at www.sedac.org. You can also access go to this
month's issue to find the latest information from SEDAC.
Office of Advocacy Small Business Advocate Newsletter
The U.S. Small Business Administration Office of Advocacy “The Advocate” is available athttp://www.sba.gov/sites/default/files/advocacy jan-feb11.pdf. The Small Business Advocate is a
periodic newsletter that details economic developments and regulatory trends related to small business as
well as the latest initiatives of the Small Business Administration's Office of Advocacy. In This Issue you will
find:
Executive Order 13563 to Improve Regulatory Review, 1
Text of E.O. 13563, 6-7
OSHA Withdraws Two Rules, 1
Startup America Launched, 2
Rodgers Appointed Deputy Chief Counsel, 11
New Advocacy Staff, 11
Message from the Chief Counsel
Small Business Talks; Advocacy Listens, 3
Research Notes
Small Business Economy Released, 2
Legislative Focus
Freshmen Senators Schooled in Small Business Values, 4
Regional Report
Nine Regional Advocates in Place, 8-10
Regulatory News
IRS Modifies PTIN Rule, 12
Financial Rule Delayed, 5
Major Clark Receives Public Service Award, 5
IEN Program Success Of The Week - Automated Industrial Machinery (AIM), Inc.
Automated Industrial Machinery, Inc. in Addison, is a client of the North Business Industrial Council
(NORBIC) SBDC ITC.
As an exporter of products to China, they recently had a marketing opportunity for some Chicago media
coverage.
Coinciding with the recent visit of the Chinese president to Chicago, ABC Television News in Chicago
contacted World Business Chicago to connect with local companies that are successfully doing business with
China. Thomas Bartkoski contacted NORBIC to assist with this project. The NORBIC SBDC ITC contacted
two of their clients, Shure, Inc. in Niles and AIM, Inc, as they are currently doing business in China. Both
companies confirmed they were willing to participate and the local ABC TV affiliate conducted on-camera
interviews on 1/19/11.
At Automated Industrial Machinery in northwest suburban Addison, owner Constantine Grapsas says
Chicago's reputation as a China-friendly city has already opened doors for him. "The better relationship we
have with the China market, the more sales we're going to do here," said Grapsas.
Later that night, the opening story on the 10pm news was of the visit by the Chinese president and the
segment on the two NORBIC SBDC ITC clients. The video can be viewed here:http://abclocal.go.com/wls/story?section=news/local&id=7907970
Congratulations to AIM, Inc. and to Shure, Inc. for their efforts in exporting products to China and to the
Illinois SBDC ITC at NORBIC for their assistance which was provided to enable both of these companies to
be successful in international trade.
Getting The Most Out Of WebCATS
Are You Still Using the Softshare.com Domain Name? Last August, OutreachSystems announced its
separation from Softshare. Since then, they've had convenient redirects in place for anyone still using the
softshare.com domain name—either when e-mailing them or when accessing a hosted WebCATS database.
As of March 1st - They will no longer be able to redirect e-mails sent to
@softshare.com. To ensure that your support requests reach them, please go into your
address book and update any instances of softshare.com to outreachsystems.com (e.g. update
[email protected] to [email protected]).
They will no longer be able to redirect WebCATS URLs that reference softshare.com. Currently,
they're able to redirect old WebCATS URLs under the hood on your behalf (e.g. enteringhttps://illinois.softshare.com will automatically redirect tohttps://illinois.outreachsystems.com). But
beginning March 1st, they will no longer have that capability so please make sure that any shortcuts or
bookmarks that you use to access WebCATS are updated. Thank you.
Website Of The Week - www.smbceo.com
Small Business CEO is a weblog (blog) aimed at Small Business CEO’s. On this site, you will find:
- A collection of useful articles for Small Business CEOs organized in categories that match the major
functions of a business. The articles are aimed to help you with all aspects of starting, running and leading
your own business.
- A directory of Helpful Websites that serve the Small Business market.
- Fresh content is added regularly including how-to instructional articles and resources dealing with current
hot topics like internet marketing, social media, unique business models, financing as well as news and
information from the Small Business world.
Categories and topics include: CEO Leadership / Customer Service / Economy & Environment /
Entrepreneurs / Finance /
Human Resources / Information Technology / Legal / Marketing / Research & Development / Sales / Social
Media
To learn more, please visit: www.smbceo.com
Resource Of The Week - Corporate Turnaround Toolbox
Corporate Turnaround has just made available their newest project. It is called the "Business Toolkit for
SBDCs" and it will live in the Members’ section of the ASBDC website. We thought you would like a
preview.
If your client has overwhelming debt, this tool box will help you determine:
- Which debts should be restructured (how to classify creditors).
- What is to total amount of "problem debt".
- How much your client can afford to pay monthly to manage the debt.
- If your client has the cash-flow to restructure themselves.
The tool box also contains:
- A tutorial on the software and process.
- A recent case study of a troubled SBDC client that we restructured.
- A quiz to test your knowledge (based on classes at regional ASBDC national conferences).
- Additional guides and resources to teach a small business how to restructure themselves.
To check out this resource, please click on:http://corporateturnaround.com/toolbox/
What's New On CenterConnect
The SBA Small Loan Advantage Program and Community Advantage Program are described briefly
above in the first item of this edition of the IEN Weekly Connection. On CenterConnect, you can find more
detailed information about both of these Programs, in a press release as well as in a fact sheet, both of
which have been added.
Moves And News
Lynn Andersen Lindberg, Director of Business Innovation and Research at Southern Illinois
University in Carbondale is now a Certified Technology Counselor. She earned this national
certification from the Association of Small Business Development Centers (ASBDC) in recognition of her
expertise in five core competency areas: technology transfer and commercialization, research and
development funding, intellectual property issues, technology networking/resource identification and equity
financing. Congratulations, Lynn !
Diversity Business Conference to be held at the College of DuPage (COD) - Thursday, February
24th, from 1pm to 4pm. It will take place at the Jack H. Turner Conference Center, Student Resource
Center (SRC 2800) at 425 Fawell Boulevard in Glen Ellyn. The COD purchasing manager will be available
to answer questions and provide assistance to those interested in doing business with College of DuPage.
Entry is free. Please R.S.V.P. to [email protected].
Join them for an afternoon of business information and opportunity at this annual conference, co-sponsored
by:
• College of DuPage Business Solutions • Center for Entrepreneurship • DuPage County NAACP and •
Homelife Radio Show
Seminar Topics Include: Government Contracting, Certifications, Exporting, Marketing and Access to
Capital.
“Providing Guidance for Business Growth"
===========================================================
The WEEKLY CONNECTION is distributed by the Illinois SBDC and the DCEO Office of
Entrepreneurship, Innovation and Technology each Monday to the members of the DCEO
Illinois Entrepreneurship Network to provide these service delivery partners with regular
updates on small business issues, opportunities and resources. Please forward this update
to any other interested resource providers and key stakeholders. www.ilsbdc.biz
===========================================================
doc_650925565.pdf
Lenders who participate in the U.S. Small Business Administrations Preferred Lender Program can approve loans through the agencys new Small Loan Advantage program beginning February 15th.
------------------------------------------------------------
THE WEEKLY CONNECTION
Entrepreneurship ~ Innovation ~ Technology
------------------------------------------------------------
February 14, 2011
In Today’s Connection:
? SBA Small Loan Advantage Program and Community Advantage Program
? 2011 Small Business Online Marketing Contest - Sponsored by Constant
Contact
? New Dealer Floor Plan Pilot Program
? SEDAC Newsletter
? Office of Advocacy Small Business Advocate Newsletter
? IEN Program Success Of The Week - Automated Industrial Machinery
(AIM), Inc.
? Getting The Most Out Of WebCATS
? Website Of The Week - www.smbceo.com
? Resource Of The Week - Corporate Turnaround Toolbox
? What's New On CenterConnect
? Moves And News
SBA Small Loan Advantage Program and Community Advantage Program
Lenders who participate in the U.S. Small Business Administration’s Preferred Lender Program can approve
loans through the agency’s new Small Loan Advantage program beginning February 15th. At the same
time, the agency will begin accepting applications from community-based, mission-focused lenders who are
interested in making SBA-guaranteed loans through the new Community Advantage program.
Both the Small Loan Advantage and Community Advantage programs were announced in December as part
of the agency’s efforts to increase the number of lower dollar loans being made to small businesses and
entrepreneurs in underserved communities.
Built on what the agency refers to as its “Advantage” platform, both Small Loan Advantage and Community
Advantage offer a streamlined application process for SBA-guaranteed 7(a) loans up to $250,000.
Advantage loans will come with the regular 7(a) government guarantee, 85 percent for loans up to
$150,000 and 75 percent for those greater than $150,000.
Starting February 15th, any of the 610 financial institutions across the country in the SBA’s Preferred Lender
Program (PLP) can approve loans using the new Small Loan Advantage process. Under PLP, which includes
most of the agency’s highest volume lenders, SBA delegates the final credit decisions to these lenders.
Additionally, on February 15th, SBA will begin accepting applications from financial institutions who are
interested in becoming Community Advantage lenders. Through Community Advantage, the agency will
expand the points of access small business owners have for getting loans by opening SBA’s 7(a) loan
program to “mission-focused” financial institutions, including Community Development Financial
Institutions, SBA’s Certified Development Companies and SBA’s nonprofit micro lending intermediaries.
Community Advantage will leverage the experience these institutions already have in lending to minority,
women-owned and start-up companies in economically challenged markets, along with their management
and technical assistance expertise, to help make their borrowers successful.
Community-based organizations interested in becoming Community Advantage lenders should contact the
closest SBA district office.
2011 Small Business Online Marketing Contest - Sponsored by Constant Contact
If you are a small business in Chicago, Constant Contact wants you to show them your best email or social
media campaign. You could win cash and a free Constant Contact account !
Eric Groves, Senior V.P. of Constant Contact, and a panel of industry experts and Chicago luminaries will
pick the best entries. You deserve a prize — Enter your winning campaign today! Any campaign you run
between November 1st, 2010 and February 28th, 2011 is eligible. The total value of all contest prizes is
$10,000.
Don't have Email Marketing? Sign up today
7
for your FREE 90-day trial. Want to learn how Email + Social
Media can grow your business? Learn how to use Email Marketing + Social Media Marketing at Constant
Contacts free Chicago seminars
8
in 2011.
The deadline to enter the contest in Monday, February 28th. Be sure to read the contest rules and
regulations
5
.*
For additional information, please click on:http://www.constantcontact.
com/landing/chicago201012/index.jsp
New Dealer Floor Plan Pilot Program
On September 27, 2010, President Obama signed the Small Business Jobs Act of 2010 in which, Section
1133(a) authorized a new, expanded Dealer Floor Plan (DFP) Pilot Program. This new DFP Pilot will be
effective February 9, 2011 and will remain available until September 30, 2013.
Under the new DFP Pilot, SBA is implementing a 7(a) loan guaranty product targeted to retail dealers of new
and used titleable inventory, including but not limited to automobiles, motorcycles, boats (including boat
trailers), recreational vehicles and manufactured housing (mobile homes). The key features of the new DFP
Pilot are set forth below. More detailed guidance is set forth in a procedural guide (“DFP Procedural Guide”),
which is available on SBA’s DFP website athttp://www.sba.gov/content/dealer-floor-plan-financing-
program-0. The Guide is located at the bottom of the page as a pdf attachment athttp://www.sba.gov/sites/default/files/DFP Procedural Guide (2-9-2011).pdf
Key Features
? Maximum guaranty of 75%;
? Minimum loan amount of $500,000 and maximum loan amount of $5,000,000;
? Maximum advance rate of 100% for both new and used inventory;
? Minimum loan maturity of 1 year and maximum loan maturity of 5 years (the expiration of the pilot
on September 30, 2013 will have no effect on any DFP line of credit approved by SBA on or before
that date);
? DFP lines of credit will be revolving lines of credit;
? Loan proceeds may be used for the acquisition of titleable inventory for retail sales, to refinance
existing floor plan lines of credit with another lender, or to replace existing floor plan lines of credit
with the participating lender. Proceeds may also be used to pay the SBA guaranty fee;
? Repayment of these lines will occur as the acquired inventory is sold, with interest paid monthly;
? Maximum interest rates will be the same as allowed under SBA’s standard 7(a) loan program;
? Collateral must be secured by a first lien on all titleable inventory acquired with the proceeds of the
DFP line of credit. This lien may be perfected by obtaining either (i) the titles to the inventory
reflecting no prior liens, or (ii) a first perfected security interest in all titleable inventory acquired
with any portion of the proceeds from the DFP line of credit (additional collateral to be taken in
accordance with the lender’s existing policies and procedures governing floor plan financing);
? Lenders may charge the borrower the same fees allowed under SBA’s standard 7(a) loan program
with the exception of the extraordinary servicing fee (SBA will allow lenders to charge an
extraordinary servicing fee that is higher than the 2% allowed by Agency regulations at 13 CFR
120.221(b) provided the fee meets certain conditions);
? DFP lines of credit may not be sold on SBA’s secondary market, but may be included in participating
lender financings or other conveyances, including securitizations, participations and pledges,
provided the lender complies with 13 CFR 120.420 through 120.435;
? Lenders with an executed Loan Guaranty Agreement (SBA Form 750) may participate in the DFP
Pilot;
? Lenders with at least $1 billion in floor plan lines of credit in their current portfolio may qualify for
delegated authority under the DFP Pilot, such lenders will be required to sign a separate
Supplemental Guaranty Agreement (any delegated authority the lender has as a 7(a) lender, such as
Preferred Lender Program (PLP) or SBA Express authority, will not apply to the DFP Pilot);
? In addition to their 1502 reporting on all SBA-guaranteed loans, lenders will be required to report
quarterly on disbursement and collection activity on DFP Pilot Program lines of credit using SBA Form
1502R;
? Under the DFP Pilot, SBA will allow the lender to make demand on SBA to honor its guaranty if the
borrower is in default on any financial covenant for more than 30 calendar days and the default has
not been cured. If a lender discovers that the borrower is in a sold out of trust (SOT) situation, the
lender may request that SBA honor its guaranty 30 calendar days after discovery of an SOT situation
that has not been cured during the 30 day period. If a lender discovers an unremedied adverse
change in the financial condition, organization, management, operation, or assets of the Borrower,
the lender may request that SBA honor its guaranty 30 calendar days after discovery of the
unremedied adverse change.
? Liquidation of the titleable inventory securing the DFP line of credit will be required prior to making
demand on SBA but the lender will not be required to liquidate all additional business personal
property securing the line prior to making demand;
? Additional documentation, such as floor check reports, monthly manufacturer’s dealership financial
statements and monthly reconciliations of the lender’s floor plan inspection reports with the dealer’s
financials, will be required with any request for SBA to honor its guaranty. Delegated lenders also will
be required to provide a copy of the lender’s credit memo with any guaranty purchase request;
? As part of the purchase review process, SBA will review the lender’s compliance with its existing floor
plan financing policies and procedures, as well as its compliance with the DFP Federal Register Notice
and the Procedural Guide. Also, if proceeds of the DFP line are used to replace a same institution
debt floor plan line and the borrower defaults within 90 days of initial disbursement, SBA may deny
liability on its guaranty of the DFP line; and
? As part of its ongoing lender oversight activities, SBA’s Office of Credit Risk Management (OCRM) will
review, evaluate and approve the floor plan lending policies, procedures and practices of each lender
participating in the DFP Pilot, as well as any reports the lenders provide to SBA.
Regulatory Waivers
Pursuant to the authority provided to SBA under 13 CFR 120.3 to suspend, waive or modify certain
regulations in establishing and testing pilot loan initiatives for a limited period of time, SBA is waiving or
modifying as appropriate the following regulations, which otherwise apply to 7(a) loans, for loans made
under the DFP Pilot only:
? 13 CFR 120.221(b) (limit on the extraordinary servicing fee);
? 13 CFR 120, Subpart F (secondary market regulations);
? 13 CFR 120.520(a) (when a lender may make demand on SBA to honor its guaranty); and
? 13 CFR 120.524 (when SBA is released from liability on its guaranty).
A full discussion of the regulations being waived or modified can be found in the Notice published by SBA in
the Federal Register on February 9, 2011 (76 FR 7098).
All other provisions of the Small Business Act applicable to the 7(a) loan program apply to the DFP Pilot.
Unless waived or modified in the above noted Federal Register Notice, all regulations applicable to the 7(a)
loan program apply to the DFP Pilot. All standard operating procedures applicable to the 7(a) loan program
that are not superseded by any provision of the Federal Register Notice or the DFP Procedural Guide apply
to loans made under the DFP Pilot.
Questions
Questions on the new DFP Pilot Program may be directed to the Lender Relations Specialist in the local SBA
district office. The local SBA district office may be found at:http://www.sba.gov/about-offices-list/2.
SEDAC Newsletter
The Smart Energy Design Assistance Center (SEDAC) is pleased to announce that your free subscription to
our monthly newsletter is now available for download at www.sedac.org. You can also access go to this
month's issue to find the latest information from SEDAC.
Office of Advocacy Small Business Advocate Newsletter
The U.S. Small Business Administration Office of Advocacy “The Advocate” is available athttp://www.sba.gov/sites/default/files/advocacy jan-feb11.pdf. The Small Business Advocate is a
periodic newsletter that details economic developments and regulatory trends related to small business as
well as the latest initiatives of the Small Business Administration's Office of Advocacy. In This Issue you will
find:
Executive Order 13563 to Improve Regulatory Review, 1
Text of E.O. 13563, 6-7
OSHA Withdraws Two Rules, 1
Startup America Launched, 2
Rodgers Appointed Deputy Chief Counsel, 11
New Advocacy Staff, 11
Message from the Chief Counsel
Small Business Talks; Advocacy Listens, 3
Research Notes
Small Business Economy Released, 2
Legislative Focus
Freshmen Senators Schooled in Small Business Values, 4
Regional Report
Nine Regional Advocates in Place, 8-10
Regulatory News
IRS Modifies PTIN Rule, 12
Financial Rule Delayed, 5
Major Clark Receives Public Service Award, 5
IEN Program Success Of The Week - Automated Industrial Machinery (AIM), Inc.
Automated Industrial Machinery, Inc. in Addison, is a client of the North Business Industrial Council
(NORBIC) SBDC ITC.
As an exporter of products to China, they recently had a marketing opportunity for some Chicago media
coverage.
Coinciding with the recent visit of the Chinese president to Chicago, ABC Television News in Chicago
contacted World Business Chicago to connect with local companies that are successfully doing business with
China. Thomas Bartkoski contacted NORBIC to assist with this project. The NORBIC SBDC ITC contacted
two of their clients, Shure, Inc. in Niles and AIM, Inc, as they are currently doing business in China. Both
companies confirmed they were willing to participate and the local ABC TV affiliate conducted on-camera
interviews on 1/19/11.
At Automated Industrial Machinery in northwest suburban Addison, owner Constantine Grapsas says
Chicago's reputation as a China-friendly city has already opened doors for him. "The better relationship we
have with the China market, the more sales we're going to do here," said Grapsas.
Later that night, the opening story on the 10pm news was of the visit by the Chinese president and the
segment on the two NORBIC SBDC ITC clients. The video can be viewed here:http://abclocal.go.com/wls/story?section=news/local&id=7907970
Congratulations to AIM, Inc. and to Shure, Inc. for their efforts in exporting products to China and to the
Illinois SBDC ITC at NORBIC for their assistance which was provided to enable both of these companies to
be successful in international trade.
Getting The Most Out Of WebCATS
Are You Still Using the Softshare.com Domain Name? Last August, OutreachSystems announced its
separation from Softshare. Since then, they've had convenient redirects in place for anyone still using the
softshare.com domain name—either when e-mailing them or when accessing a hosted WebCATS database.
As of March 1st - They will no longer be able to redirect e-mails sent to
@softshare.com. To ensure that your support requests reach them, please go into your
address book and update any instances of softshare.com to outreachsystems.com (e.g. update
[email protected] to [email protected]).
They will no longer be able to redirect WebCATS URLs that reference softshare.com. Currently,
they're able to redirect old WebCATS URLs under the hood on your behalf (e.g. enteringhttps://illinois.softshare.com will automatically redirect tohttps://illinois.outreachsystems.com). But
beginning March 1st, they will no longer have that capability so please make sure that any shortcuts or
bookmarks that you use to access WebCATS are updated. Thank you.
Website Of The Week - www.smbceo.com
Small Business CEO is a weblog (blog) aimed at Small Business CEO’s. On this site, you will find:
- A collection of useful articles for Small Business CEOs organized in categories that match the major
functions of a business. The articles are aimed to help you with all aspects of starting, running and leading
your own business.
- A directory of Helpful Websites that serve the Small Business market.
- Fresh content is added regularly including how-to instructional articles and resources dealing with current
hot topics like internet marketing, social media, unique business models, financing as well as news and
information from the Small Business world.
Categories and topics include: CEO Leadership / Customer Service / Economy & Environment /
Entrepreneurs / Finance /
Human Resources / Information Technology / Legal / Marketing / Research & Development / Sales / Social
Media
To learn more, please visit: www.smbceo.com
Resource Of The Week - Corporate Turnaround Toolbox
Corporate Turnaround has just made available their newest project. It is called the "Business Toolkit for
SBDCs" and it will live in the Members’ section of the ASBDC website. We thought you would like a
preview.
If your client has overwhelming debt, this tool box will help you determine:
- Which debts should be restructured (how to classify creditors).
- What is to total amount of "problem debt".
- How much your client can afford to pay monthly to manage the debt.
- If your client has the cash-flow to restructure themselves.
The tool box also contains:
- A tutorial on the software and process.
- A recent case study of a troubled SBDC client that we restructured.
- A quiz to test your knowledge (based on classes at regional ASBDC national conferences).
- Additional guides and resources to teach a small business how to restructure themselves.
To check out this resource, please click on:http://corporateturnaround.com/toolbox/
What's New On CenterConnect
The SBA Small Loan Advantage Program and Community Advantage Program are described briefly
above in the first item of this edition of the IEN Weekly Connection. On CenterConnect, you can find more
detailed information about both of these Programs, in a press release as well as in a fact sheet, both of
which have been added.
Moves And News
Lynn Andersen Lindberg, Director of Business Innovation and Research at Southern Illinois
University in Carbondale is now a Certified Technology Counselor. She earned this national
certification from the Association of Small Business Development Centers (ASBDC) in recognition of her
expertise in five core competency areas: technology transfer and commercialization, research and
development funding, intellectual property issues, technology networking/resource identification and equity
financing. Congratulations, Lynn !
Diversity Business Conference to be held at the College of DuPage (COD) - Thursday, February
24th, from 1pm to 4pm. It will take place at the Jack H. Turner Conference Center, Student Resource
Center (SRC 2800) at 425 Fawell Boulevard in Glen Ellyn. The COD purchasing manager will be available
to answer questions and provide assistance to those interested in doing business with College of DuPage.
Entry is free. Please R.S.V.P. to [email protected].
Join them for an afternoon of business information and opportunity at this annual conference, co-sponsored
by:
• College of DuPage Business Solutions • Center for Entrepreneurship • DuPage County NAACP and •
Homelife Radio Show
Seminar Topics Include: Government Contracting, Certifications, Exporting, Marketing and Access to
Capital.
“Providing Guidance for Business Growth"
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The WEEKLY CONNECTION is distributed by the Illinois SBDC and the DCEO Office of
Entrepreneurship, Innovation and Technology each Monday to the members of the DCEO
Illinois Entrepreneurship Network to provide these service delivery partners with regular
updates on small business issues, opportunities and resources. Please forward this update
to any other interested resource providers and key stakeholders. www.ilsbdc.biz
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