European Economic and Social Committee

1
US Government Programs to Assist SMES

• European Economic and Social Committee
• February 5, 2009

2
Small Business Administration

• Assists Small Businesses (SB) to start and grow
• Counseling and Training
• Networks and Mentoring
• Financial-Loan Programs
• Technical-Research Development (RD)
• Government Contracting
• Advocacy

3
How many US small businesses?

• U. S. Small Businesses (2008)
• 26 million small businesses
• 97 of all employers
• Generate about 70 of net new jobs
• What is a small business in the USA
• 500 or less employees
• Industry specificvarious size standards

4
How does SBA help SB?

• Programs
• Guarantee Loans, advocacy, training and
  counseling
• Technical Assistance
• public private partnerships, small business
  development centers in universities
• Loans to exporters
• Export Working Capital up to 2million
• Export Express Loan up to 250,000
• Refer to OPIC and Export-Import Bank
• Promoting U.S. Small Business Government
  Contracts

5
SBA Loans

• 7(a) Program commercial lending
  institutions/banks
• Guarantees approx. 75 of short and long-term up
  to 2 million
• Base Rate can be at Prime or LIBOR plus 300 bps
• 5,500 Banks participate with SBA
• 504 CDC Loan Certified Develop. Co.
• - Fixed assets, land, buildings and equipment
• Microloan
• up to 35,000 thru non-profit development
  organizations quasi-governmental economic
  development corporations or Agencies established
  by a Native American Tribal Government, all
  referred to as intermediaries
• SBIC- Small Business Investment Companies

6
Success Stories

• Nike
• Apple
• Compaq
• Intel
• SunMicrosystems
• Outback Steakhouse
• Staples

7
IPR US and EU Cooperation

• US-EU IPR working group
• - Collaborate on SME IPR education
• SME online tools
• www.stopfakes.gov
• www.innovaccess.eu/
• www.china-iprhelpdesk.eu

8
Financial Crisis

• Loans demand down, SBA loan volume down 30 in FY
  08
• 70 of National Small Business Association
  members impacted by credit crunch
• unusual difficulties in access to export
  financing due to
• tougher standards for credit approval, higher
  collateral requirements, increases in interest
  rates.
• BUT community banks less impacted

9
USG Actions

• Response to financial crisis inject capital to
  banks continued loans
• SBA encourage lenders to be more flexible, allows
  lenders to defer loan payments up to 3 months
• SBA guarantees loans to SMEs for 75-85 of
  principle
• SBA proposal to increase lending limit of Export
  Express financing program from 250,000 to
  350,000 to boost liquidity
• SBA provides lenders with up to 90 guaranty of
  export loans through Export Working Capital Loan

10
USG Actions

• SBA launch of Small/rural Lender Advantage
  program
• SBA launch of Emerging 200- Jobs and growth
  initiative for inner city SMEs
• Ex-Im Bank modifying working capital guarantee to
  provide increased liquidity

11
www.sba.gov
12
Websites for SBA

• US Small Business Administration and centers
• www.sba.gov
• Office of International Trade
• www.sba.gov/oit
• SBA and Financing
• www.sba.gov/financing
• 7(a) Loan program
• http//www.sba.gov/financing/sbaloan/7a.html
• 504 Community Develop. Company loans
• http//www.sba.gov/financing/sbaloan/cdc504.html
• MicroLoans
• http//www.sba.gov/financing/sbaloan/microloans.ht
  ml
• Export Working Capital
• http//www.sba.gov/oit/finance/ewcp.html
• Languages
• Spanish www.negocios.gov
• Other www.sba.gov/aboutsba/international/overview.
  html
• IPR Toolkits for SMES
• www.stopfakes.gov