Bechtel Buyer Forum

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Bechtel Vendor ForumRichland, WA July 19, 2005
Sharon Pataky, Business Development Specialist
Spokane Branch Office
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Spokane Branch Territory
Serving 20 counties in Eastern WA and 10
counties in North ID
Spokane Branch www.sba.gov/wa/spokane Seattle
District www.sba.gov/wa/seattle

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Programs Services

• Finance
• Business Development
• Government Contracting
• Advocacy
• Disaster Assistance

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GOVERNMENT CONTRACTING

• Public policy goal is to foster an equitable
  distribution
• of federal procurement dollars
• Government-wide small business goals
• in terms of a percentage of annual expenditures
• Small Business 23
• Women-Owned 5
• Service Disabled VOSB 3
• Small Disadvantaged 5
• HUBZone 3

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AGENDA

• CCR/DSBS
• SBA Certifications
• 8(a) Program
• SDB
• HUBZone

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• WHEN IS A BUSINESS SMALL?

• Self Certification
• Core size standards for sectors
• Retail 6 million
• Construction 12/28.5 million
• Manufacturers 500 employees
• Wholesalers 100 employees

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• WHEN IS A BUSINESS SMALL FOR PROCUREMENT?

• To bid as a small business
• on a federal contract,
• a business
• - and all of its affiliates in the aggregate -
• must be SMALL
• under the assigned NAICS code.

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• WHEN IS A BUSINESS SMALL?

• For More Information, Refer to
• WWW.SBA.GOV/SIZE

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CENTRAL CONTRACTOR REGISTRY (CCR)
Registration in CCR is required for any entity
doing business with the federal Government.
CCR is a vendor payment database. www.ccr.gov
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CCR
After completing the CCR profile, a small
business may enter supplemental data. This
data, along with federal certifications provided
by SBA, is used by buyers to locate qualified
firms through the Dynamic Small Business Search
(DSBS).
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DSBS

• A national vendor database of small business
  profiles on the web.
• The official site for verification of federal
  certifications.
• A research tool used by the federal buying
  community when determining how to procure goods
  and services (i.e. set-aside).

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Who Needs DSBS?

• All small firms seeking federal contracts.
• (Great marketing tool!)
• All U.S. government agencies
• Large prime contractors seeking subcontractors

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CCR DSBS Link

• Certain data entered into CCR automatically
  updates the DSBS.
• These updates are not real time
• and may not be reflected for 48-72 hours
• from the time of input.
• DSBS updates are real time.

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How do I Search for Small Business Sources
using DSBS?

• 1. Go to www.ccr.gov
• 2. Select DSBS search button
• 3. Enter Search Criteria
• 4. You may customize your report

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How Much will it Cost?
No Charge
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Am I Eligible?

• If so, apply for certification
• by SBA.
• 8(a)
• SDB
• HUBZone

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What is the 8(a) Program?

• The SBA's 8(a) BD Program is named for a section
  of the Small Business Act.
• It is a business development program created to
  help small disadvantaged businesses compete in
  the American economy and access the federal
  procurement market.

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8(a) Program Benefits

• 8(a) Sole Source Contracts
• 8(a) Competitive Contracts
• Executive Development Training
• Business Development Specialist
• 8(a) Mentor/Protégé Program
• Surplus Property
• Training
• 9 year Program Term

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8(a) Program Eligibility

• Concern must be a small business as defined by
  size standards.
• 51 owned by socially and economically
  disadvantaged U.S. citizens
• Socially and economically disadvantaged
  individuals control daily operations.
• Indian Tribes, Native Hawaiian Org, Community
  Development Corporations (CDCs), or Alaska Native
  Corporations (ANCs) have special eligibility
  rules.

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Social Disadvantage MEMBERS OF DESIGNATED GROUPS

• African Americans
• Hispanic Americans
• Native Americans
• Asian-Pacific Americans
• Sub-Continent Asian Americans

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Economic Disadvantage (Continued)

• Personal financial condition of applicant
• (not including spouse)
• Personal Net Income over the last two years
• Personal Net Worth NTE 250,000.00 less
• Residential Equity and
• Equity in 8(a) Applicant Firm

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8(a) Program Eligibility

• Potential for Success
• Good Character
• Ineligible if incarcerated, on parole or
  probation, or convicted of a crime involving
  business integrity
• One time eligibility
• Immediate family members may not own more
  than 20 of another 8(a) firm.

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Small Disadvantaged Business (SDB) Certification
Program
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SDB Eligibility

• A Small Disadvantaged Business is one that is
• owned and controlled by one or more socially
  economically disadvantaged individuals, tribes,
  ANCs, Native Hawaiian Organizations, or CDCs
  utilizing essentially the same criteria as that
  of the 8(a)BD program.
• Except PNW lt 750,000 for entry into the SDB
  program

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Benefits of SDB Certification (continued)

• SUBCONTRACTING OPPORTUNITIES Contractor
  selection evaluation factors may incorporate SDB
  subcontractor participation for contracts in
  excess of 500,000 (1MM construction).
• Firms are not recognized as an SDB without
  certification by SBA.

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Small Disadvantaged Business Certification Program

• Approved 8(a) firms are
• certified as SDBs
• Concurrent with their program term

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HUBZone Program
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HUBZone Program
Designed to promote business and job
opportunities in high unemployment and low
income areas by increasing federal contracting
activity in those areas.
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HUBZones
Historically Underutilized Business Zones

• Urban -- census tracts
• Rural -- countywide
• All federally recognized Native American
  reservations

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USA HUBZone Map
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HUBZone Census Tract in Franklin County
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HUBZone Firm Eligibility

• Must be a small business (for primary NAICS)
• Principal office must be located in a HUBZone
• At least 35 of the employees must reside in
  HUBZone areas
• Must be 51 owned and controlled by US citizens
  or be an agricultural cooperative operating as a
  small business or be a small business owned by an
  agricultural cooperative. Can also be owned by
  CDC, ANC, or Indian tribe.

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HUBZONE Benefits

• Hubzone Set-aside Contracts
• Up to 10 price preferences in full and open
  competition
• Subcontracting Opportunities
• Sole source contracts

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Get Certified!
Apply online or download an application from the
SBA Website. http//www.sba.gov/8aBD
http//www.sba.gov/SDB http//www.sba.gov/HUBZO
NE
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Procurement Resource Contacts
Procurement Technical Assistance Centers
For help with local, state and federal programs E
WA Bsns Kyla Meredith-Boucher [phone] N
Idaho Bsns Larry Demirelli (206)
334-2470 HUBZone Sharon Pataky [phone]
(Spokane) 8(a) Business Development E.
Washington Bsns Sharon Pataky [phone]
(Spokane WA) W. Washington Bsns Diana Drake
[phone] (Seattle WA) Idaho Businesses
Irene Gonzalez [phone] ext 349 (Boise
ID) SBA Surety Bond Guaranty Tom Ewbank (206)
553-0961 Business Links/WSU Richland
Procurement Specialist Johan Curtiss (509)
372-7142 SBA Procurement Center Representative
Kevin Michael [phone] (Auburn,WA)
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QUESTIONS?
Thank You !
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Bechtel Vendor ForumRichland, WA July 19, 2005
Coralie Myers, Business Development Specialist
Spokane Branch Office
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Strategically located in the
8 SBA Spokane Employees Serving Eastern WA and
North ID Since 1963
801 West Riverside Avenue, Suite 200 Spokane, WA
99201 [phone] or www.sba.gov/wa/spokane
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Who Is Our Custmer? About 90 of all businesses

• Nationally over 25 million small businesses
• Manufacturing Section
• Less than 500 employees
• Wholesale Sector
• Less than 100 employees
• Construction Sector
• Annual Sales less than 12-28.5 million
• Service and Retail Sectors
• Annual Sales less than 6 million

www.sba.gov/size
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Benefits of Small Business

• 90 (Approximately) of all employer firms
• 65 of all new jobs generated annually
• 55 of all new product innovations
• 52 share of the National GDP
• 44 of total U.S. payroll 1.5 trillion
• 23 of federal prime contracts

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Business Loans

• SBA is not a direct Lender
• SBA guarantees loans that Lenders make to
  businesses
• Business work with their Lenders
• The Lender contacts SBA
• Exception Disaster Loans

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What Lenders and SBA Look For

• Management Skills
• Repayment Ability
• Character / Credit
• Debt / Worth - Your Investment
• Collateral

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Financial Statements

• Balance Sheet
• Income Statement (interim last 3 yrs.)
• Monthly Cash Flow (Budget / Checkbook)Money you
  receive Money you pay out

Available online at

http//www.sba.gov/library/cfbudget.xls
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Maturity - How Long to Repay

• Based on the Useful Life of the Asset - How long
  will what you are buying last.
• Final determination up to Lender - General
  GuidelinesWorking capital Inventory
  3 - 5 yrsEquipment 5 - 15yrsReal
  Estate 15- 25yrs

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Interest Rates

• Determined by Lender Rates are negotiated
  between bank and borrower
• Tied to prime rate - See paper
• Prime is what banks charge their best customers
• Maximums for SBA Loans
• Less than 50,000....... 6.5 over prime
• 50,000 - 250,000...... 4.5 over prime
• Over 250,000............. 2.75 over prime

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Long-Term vs. Short-Term

• Paid from profits of the business
• Maturity 1-25yr.
• Does not revolve
• Fills need for permanent working capital
• Finances equipment, real estate

• Paid from conversion of business assets
• Less than 1 yr
• Can revolve - must zero out during year
• Fills seasonal short-term needs
• Finances seasonal cyclical working capital

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WHY USE SBA?
Benefits to Borrower

• Borrowers can get longer terms.
• Credit not available elsewhere
• Under reasonable terms
• Through non-federal sources
• Within prevailing rates and terms in the community

Expands Lenders ability to fund the needs of a
small business, so Lenders can say Yes more
often.
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Before you see your Lender, Plan

• BE SPECIFIC about
• Business location and cost
• Inventory equipment cost estimates
  provide invoices
• How much money you will need
• Have SCORE review your plan first
• FREE and CONFIDENTIAL!

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Surety BondGuarantee Program
Guarantees bid, payment performance bonds for
contracts up to 2 million for eligible small
construction and service businesses. must meet
SBA size standards www.sba.gov/size
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Surety BondGuarantee Program

• You apply with the bonding company, not SBA
• A list of bonding companies can be found at
  http//www.spokanebic.org/bguide/surety.htm
• For more information, contact the regional SBA
  Surety Bond Office which serves ID, OR, NV WA
• SBG Area Office 4
• 1200 6th Avenue, Suite 1700
• Seattle, WA 98101-1128
• 206-553-0961

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Reality Check

• A business plan helps you run your business
• A plan by itself will not get you a loan
• Projections
• Must be realistic attainable, to be considered
  viable
• You must have adequate investment into your
  project

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Entrepreneurial Development

• Providing small business assistance
• Counseling
• Training
• Information Resources

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Small Business Resource Guide

• Is Entrepreneurship for you
• Start-Up Checklist
• Business Plan Outline
• Selecting Legal Structure
• Types of Insurance
• Licensing Information
• Applying for a Loan
• Procurement Programs
• International Trade

Free Online at http//www.smallbusinessinl
andnw.org/bguide/bgtable.htm
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Business Information Centers

• Spokane Area BIC 509-353-2800
• 801 W. Riverside Ave., Suite 240
• Spokane, WA 99201
• www.smallbusinessSpokane.org
• PTAC
• Library Resources
• Workshops
• Counseling

Formerly
Now
http//www.bizstreetspokane.com/bizstreetspokane/
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Business Information Centers

• SE WA BIC 509-372-7142
• 2770 University Drive
• Richland WA 99352
• www.tricity.wsu.edu/links
• Procurement Assistance
• Entrepreneurial Library
• Counseling
• Computer Lab
• Online Resources
• www.spokanebic.org

Still
Now operated solely by
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Over 300 SCORE Volunteers in WA and Idaho!
Free Confidential Counseling
Find the location nearest you or receive
counseling online at score.org
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Sharing Valuable Business Experience

• To meet with a SCORE counselor in the Tri-Cities,
  call
• Pasco Chamber of Commerce 509-547-9755
• Richland Chamber of Commerce 509-946-1651
• Richland WSU Campus (SE WA BIC) 509-372-7142
• TriCities Enterprise Center (Richland) 509-735-326
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• TriCities Area Chamber (Kennewick) 509-736-0510
• West Richland Chamber of Commerce 509-967-0521

• Free Confidential E-mail Counseling - Online at
  www.score.org

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Small Business Development Centers
www.wsbdc.org
www.idahosbdc.org

• Long-term Counseling
• No Charge
• Confidential
• One-on-one
• Over 20 Locations!
• Evening Workshops
• NxLevel Class Series

TriCities SBDC Call 509-735-6222
Internet Counseling also available in WA
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Business Plan Resources

• SBA Publications or Online Classroom
• www.sba.gov/training
• Counseling Workshops
• Small Business Development Centers (SBDC)
• www.wsbdc.org www.idahosbdc.org
• Or SCORE Counselors to Americas Small
  Business
• www.score.org
• BIC Library Websites
• www.tricity.wsu.edu/links
• www.spokanebic.org

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Free Online Courseshttp//www.sba.gov/training
Cash Flow
Identify Your Target Market Advertise Your
Business
Understanding Demographics
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Advocacy

• National Ombudsman
• Taking testimony in Spokane for E. WA N. Idaho
  Wednesday, July 20, 830am
• Goal fix problems with regulatory compliance
  enforcement issues
• Also available http//www.sba.gov/ombudsman/
• Regional Advocate
• Connie Marshall, Region X
• More at http//www.sba.gov/region10/ra.html
• Awards Program/ Success Stories

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Growing Successful Businesses
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Web Sites
SBA Region X Field Offices Spokane www.sba.gov/w
a/spokane Seattle www.sba.gov/wa/seattle
Portland www.sba.gov/or Boise www.sba.gov/id
Alaska www.sba.gov/ak
SCORE www.spokanescore.org www.score.org
SBDC www.idahosbdc.org www.wsbdc.org
Idaho
Washington SBA (National) www.sba.gov
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Questions?

• Please fill out the EvaluationWas this briefing
  helpful?

Thank You!
Spokane Branch Office 801 West Riverside Avenue,
Suite 200 Spokane WA 99201 509-353-2811
www.sba.gov