SCORE – the SBA’s free business consulting program
Everything you need to know about business, these guys learned while you were in kindergarten. Score is a brotherhood of retired business executives who love working with startup businesses as volunteers to help y ou get your business off of the ground.
1. What is the SCORE Association?
The SCORE Association (Service Corps of Retired Executives) “Counselors to America’s Small Business” is a nonprofit association comprised of 11,500 volunteer business counselors throughout the U.S. and its territories. There are 389 SCORE chapters in urban, suburban and rural communities. SCORE members are trained to serve as counselors advisors and mentors to aspiring entrepreneurs and business owners. These services are offered at no fee, as a community service. SCORE was formed in 1964 and nearly 4.5 million Americans have utilized SCORE services.
2. How can the SCORE Web site help me?
This site offers practical “how to” information to help your run your business. You can also get free and confidential business advice from SCORE with Get Email Counseling. You can Find SCORE in your community to find the location and even a map of the location of your nearest SCORE office.
3. How can SCORE help me in a changing economic environment?
In times of economic change, you must be diligent in preparing advance plans. Begin developing a business plan with realistic sales projections and a plan to hold the line on costs. SCORE can provide advice to help you develop or update your plan. You can Get Email Counseling right now through the SCORE Web Site. SCORE & Visa U.S.A also offer a FREE financial management workbook, How to Secure Financing. This guide can help you build a relationship with a bank, so you can obtain a loan when you apply for a loan.
4. Can I contact SCORE via email?
Yes. This Web site offers a special feature called Get Email Counseling. You can go to email counseling and pose a business question to one of the SCORE business counselors who have joined the SCORE CyberChapter to provide you with email answers to business questions. You choose from a list of counselors with expertise in the business areas that interest you and write a question to the counselor who is the best match for your business or industry.
5. What is email counseling?
Email counseling is an email exchange between you a soon-to-be entrepreneur or small business owner and a volunteer, SCORE business counselor. Email counseling gives you the opportunity to send email questions about small business to a SCORE counselor anywhere in the country. Just Get Email Counseling to get business advice. Send a questions and your SCORE counselor will reply with his or her answer. Keep the dialog going as long as you have questions for your business counselor.
6. What qualifies SCORE members to give business advice?
The key qualification SCORE counselors bring to clients is real-world experience. SCORE business counselors have general management and specific industry experience that can benefit your business. SCORE business counselors may be working or retired business owners, business executives or operations managers. All SCORE counselors receive specialized training in counseling and mentoring.
7. What kind of counseling does SCORE provide?
SCORE’s experienced business experts provide general business advice on everything from how to write a business plan, to cash flow management, to developing a small business advisory board. Assistance for aspiring entrepreneurs may involve investigating the market potential for a product or service and assessing the capital needs to start a business. Counselors can provide insight into how to start a business, operate a business, buy a business or franchise and sell a business.
8. Does SCORE offer other services?
Yes. SCORE offers low-cost workshops and seminars. Workshops and seminars are offered at the local chapter level. Topics are planned to help address specific interests in a given community. Basic workshop fees generally range from $20-$75 depending upon the program. Workshop topics have included: Developing Your Business Plan, Starting and Operating Your Own Business, Getting Financing For Your Business, Basic Business Accounting, Expanding Your Business and Marketing-A Do-It-Yourself Approach for Small Business.
9. How can I contact SCORE for assistance?
You can contact SCORE a number of ways. You can call 1 (800) 634-0245 for a referral to the SCORE chapter nearest you and make an appointment for face-to-face counseling. You can use Find SCORE to locate a chapter near you complete with address, phone number and a map you can print right now. Or you can Get Email Counseling to send an email message to a counselor and begin electronic counseling.
NAICS- the North American Industry Classification System
Everybody’s heard of SIC codes. But did you know that they were obsolete? Here’s what you need to know about NAICS teh system that replaced the old SIC code system.
1. What is NAICS?
NAICS is the North American Industry Classification System. It replaced the Standard Industrial Classification (SIC) system. Federal Government agencies that collect establishment based statistics are now required to use NAICS instead of SIC.
2. Why did SBA issue a new table of size standards?
NAICS describes how industries do business in today’s economy better than SIC does. SBA has always established size standards for industries as they are described in SIC. Size standards based on NAICS industries will provide more opportunities for small businesses to participate in Federal programs that give preference to small businesses.
3. Why does SBA think that NAICS is better than SIC?
NAICS describes how industries do business in today’s economy better than SIC does. SBA has always established size standards for industries as they are described in SIC. Size standards based on NAICS industries will provide more opportunities for small businesses to participate in Federal programs that give preference to small businesses.
4. Why does SBA think that NAICS is better than SIC?
NAICS, first of all, classifies over 350 more industries than SIC does – that’s 15% more. Most of these new industries are in the Services Sectors.
NAICS identifies industries that SIC does not, industries that are more relevant to today’s economy. For example, NAICS includes industries that manufacture semiconductor machinery and fiber optic cable, reproduce software, provide satellite telecommunications, paging, cellular and other wireless telecommunications. Warehouse clubs and superstores, telemarketing bureaus, hazardous waste collection and casinos are also new in NAICS.
NAICS is more consistent than SIC. Businesses that use similar production processes are grouped together.
NAICS gives special attention to new and emerging industries, service industries in general, and industries that produce advanced technology. The SIC system, which was last revised in 1987, does not include many of these industries, or at least does not describe them well, and it will never be updated or changed.
5. Since this is a new table, do any size standards change? What about my size standard?
Some size standards that are assigned to SIC codes do change. However, their number is small. Most likely you will continue as a small business eligible for federal small business programs under NAICS size standards. You need to identify the NAICS code for your business and check its size standard.
6. How do I find out what my NAICS code is?
Go to SBA’s NAICS Lookup at https://eweb1.sba.gov/naics/dsp_naicssearch2.cfm.
Simply enter your product or service in the description area and then locate your business area.
7. How do I find the size standard for my NAICS code?
Use SBA’s NAICS Lookup at
Type in your NAICS code or business description and then locate your business area on the resulting table.
8. How will the change from SIC to NAICS affect federal contracting opportunities for small businesses?
Federal procuring agencies, starting October 1, 2000, must use the proper NAICS codes and size standards in their procurement solicitations. They will use the NAICS code, instead of the SIC code, that best describes the principal purpose of the product or service they intend to acquire.
9. What about outstanding procurements on which agencies have solicited bids or offers, but which they have not yet awarded – will the SIC code they used be changed to the NAICS code?
The contracting officer has some discretion here, if the agency has not yet awarded the contract. SBA suggests you ask the contracting officer what he intends to do.
10. Where can I find more information about size standards?
Go to SBA’s Website about Size Standards. You can also email SBA’s Office of Size standards at sizestandards@sba.gov, or call us at (202) 205-6618.
11. Where can I find more information about NAICS?
Go to the Bureau of Census Website.
12. Where can I find more information about small business size standards and NAICS together?
Go to Small Business Size Standards and the North American Industry Classification System (NAICS) on SBA’s Website.
13. When did NAICS replace SIC?
NAICS replaced SIC on January 1, 1997.
Contracting with the Federal Government
1. How does SBA define a business as
In making a detailed definition, SBA may use a number of criteria, including the number of employees, annual receipts, affiliates, or other applicable factors. These specific criteria are set forth in the SBA Small Business Size Regulations, Title 13, Part 121 of the Code of Federal Regulations. For information on specific industry classifications (manufacturing, construction, services, transportation, refined petroleum products, and research development and testing), or more information on general small business definitions, please contact the SBA’s Office of Size Standards.
2. How do I find out who in the government purchases my product or service?
This web site contains links to “Federal Acquisition and Procurement Opportunities,” and to Federal Government Acquisition sites under “Programs to Assist You.”
3. How can I get a DUNS number?
DUNS stands for “Data Universal Numbering System” and is used by the government to identify contractors and their locations. The number is also required to register with the Central Contractor Register (CCR) that is used by the government’s electronic commerce/electronic data interchange (EC/EDI) system called FACNET. If you do not have a DUNS number, you can obtain one from Dun and Bradstreet (D&B) at no cost. Contact the company at 800-333-0505.
4. What is the FedBizOpps?
FedBizOpps.gov is the single government point-of-entry (GPE) for Federal government procurement opportunities over $25,000. Government buyers are able to publicize their business opportunities by posting information directly to FedBizOpps via the Internet. Through one portal – FedBizOpps (FBO) – commercial vendors seeking Federal markets for their products and services can search, monitor and retrieve opportunities solicited by the entire Federal contracting community.
5. What is the 8(a) Program?
The 8(a) Business Development program is designed to provide business development assistance and technical assistance to help socially and economically disadvantaged American businesses gain access to the mainstream American economy. The program is named for the section of the Small Business Act that authorizes its policies and procedures.
6. What is the Certificate of Competency Program?
The Certificate of Competency (COC) program allows a small business to appeal a contracting officer’s determination that it is unable to fulfill the requirements of a specific government contract on which it is the apparent low bidder. When the small business applies for a COC, SBA industrial and financial specialists conduct a detailed review of the firm’s capabilities to perform on the contract. If the business demonstrates the ability to perform, the SBA issues a COC to the contracting officer requiring the award of that specific contract to the small business.
7. What is the 7(j) program?
Section 7(j) of the Small Business Act authorizes SBA to enter into grants, cooperative agreements or contracts, with public or private organizations that can deliver management or technical assistance to eligible individuals and enterprises. This assistance is delivered to 8(a) certified firms, small disadvantaged businesses, businesses operating in areas of high unemployment or low-income or firms owned by low-income individuals. More…
Resources and links for the SBA
There is no place better to learn about the SBA than from the SBA itself. Here are some great resources. (courtesy of About.com)
Small
Business FAQ
Starting a Small Business
Does the SBA have a program to benefit you?
General Information on SBA Loans
All SBA loan programs lend to small businesses unable to secure financing on reasonable terms through normal lending channels. The loan programs are operated through private-sector lenders that provide loans which are, in turn, guaranteed by the SBA — the Agency has no funds for direct lending or grants. Most private lenders (banks, credit unions, etc.) are familiar with SBA loan programs so interested applicants should contact their local lender for further information and assistance in the SBA loan application process. [Many States offer small business grants.]
7(a) Loan Guaranty Program
One of the SBA’s primary loan programs, 7(a) offers loans of up to $2,000,000. (The maximum dollar amount the SBA can guaranty is generally $1 million.)
Complete loan information from SBA
Certified Development Company (CDC), a 504 Loan Program
Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization. Typically a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total cost, and a contribution of at least 10 percent equity from the borrower.
Complete loan information from SBA
Microloan Program
This new program offers loans of up to $35,000 to qualified start-up, newly established, or growing small business concerns. Loans are arranged through nonprofit community based lenders (intermediaries) which, in turn, make loans to eligible borrowers. The entire Microloan process is handled on the local level, but you must go to one of the local intermediaries to apply.
Complete loan information from SBA
Targeted Loan Programs
Besides the general programs described above, the SBA offers several loans designed to meet specific needs. For complete information, just click on the program titles.
Gulf Opportunity Pilot Loan (GO Loan) Program
The U.S. Small Business Administration is initiating a one year Gulf Opportunity Pilot Loan (GO Loan) Program to expedite small business financing to those communities severely impacted by Hurricanes Katrina and Rita. Under this unique initiative, the Agency will provide its full guaranty and streamlined and centralized loan processing to qualified lending partners that agree to make expedited SBA 7(a) loans available to small businesses located in those disaster areas.
Complete loan information from SBA
Other SBA Loans
For complete information on the loan programs shown above, as well as other more specialized loans available through the SBA, see:
Financing Your Business – from the SBA.
Veterans & Disabled Persons? — Unfortunately, the SBA has not been granted funds to offer special loan programs to assist either veterans or disabled persons. However, individuals of both groups are eligible for all SBA loan guaranty programs. In addition, veterans are eligible for special consideration under SBA’s guaranty loan programs. The special consideration given veterans includes: Liaison personnel in each field office; In-depth management counseling and training assistance; and, Prompt and priority processing of any loan application.
What About Business Size?
Of course, not every business is a “small” business. To be eligible for SBA loans, your business must meet certain size restrictions.
Here you will find brief descriptions of the primary loan programs available through funding from the U.S. Small Business Association (SBA). For detailed information, including qualifications, allowable uses of funds and interest rates, click on “Complete loan information from SBA.”
SBA Maximum Loan Amounts
Maximum Loan Amounts
SBA’s 7(a) Loan Program has a maximum loan amount of $2 million dollars. SBA’s maximum exposure is $1.5 million. Thus, if a business receives an SBA guaranteed loan for $2 million, the maximum guaranty to the lender will be $1.5 million or 75 percent. SBAExpress loans still have a maximum guaranty set at 50 percent
Business Size Limits for SBA Loans
How small must a business be to qualify for a Small Business Administration loan? In very general terms…
“To qualify as small business… a business concern eligible for assistance from SBA as a small business is one that is organized for profit, with a place of business located in the United States. It must operate primarily within the United States or make a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor. Together with its affiliates, it must meet the numerical size standards as defined in the Small Business Size Regulations, 13 CFR 121.” — U.S. Small Business Administration
SBA Web Site – Size Standards Information
To assist businesses with the increasingly complex subject of size standards, the SBA has recently added several resources to its Web service. Among the many resources of the SBA Office of Size Standards are:
* Tables of Size Standards – based on the North American Industry Classification System (NAICS) and Standard Industrial Classification (SIC). Also includes a handy search tool for locating NAICS codes and SIC codes.
* Guide to SBA’s Definitions of Small Business – is a complete overview of the SBA size standards program.
* Frequently Asked Questions (FAQs) – because you will have questions, you need answers.
* SBA Contacts and Representatives – humans who can answer questions the Web page cannot.
* Glossary of Terms – an essential tool.
While the exact legal size specifications are very detailed and vary depending on the loan program involved, the most commonly applied maximum size standards are as follow:
* 500 employees for most manufacturing and mining industries
* 100 employees for all wholesale trade industries
* $5 million for most retail and service industries
* $17 million for most general & heavy construction industries
* $7 million for all special trade contractors
* $0.5 million for most agricultural industries
About one-fourth of industries have a size standard that is different from these levels. They vary from $0.5 million to $25.0 million for size standards based on average annual revenues and from 100 to 1500 employees for size standards based on number of employees.
Tags: SBA Loan Programs