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Small Business Resource Guide



  SBA 100
  page 29
 Counseling              10

 Capital                 17

 Contracting             31 • connect with us @

                                                                                                     P R

                                                                                                     Publishers of Small Business Resource

                                                                                                      Phone: 863-294-2812 • 800-274-2812
                                                                                                      Fax: 863-299-3909 •
                                                                2012 SOUTH FLORIDA

      FEATURES                                                                                        President/CEO
                                                                                                      Joe Jensen         

     4            Introduction                             29   Meet the SBA 100                      English Small Business Resource Advertising
                  4     Administrator’s Letter                                                        Nicky Harvey  
                  8     Director’s Message                 31   Contracting                           Martha Theriault
                                                                                                      Kenna Rogers
                                                                Applying for Government
     10           Counseling
                                                                31 How Government Contracting         Production
                  Getting help to start up, market and               Works                            Diane Traylor     
                  manage your business.                         32 SBA Contracting Programs
                  10     SBA Resource Partners                  34 Getting Started in Contracting
                                                                                                      SBA’s Marketing Office:
                  13     SBA’s Online Tools and Training
                                                                                                      The Small Business Resource Guide is published
                  14     Reaching Underserved                   Disaster                              under the direction of SBA’s Office of Marketing and
                                                                                                      Customer Service.
                         Communities                            Knowing the types of assistance
                  15     Are You Right for Small                available for recovery.               Director of Marketing
                         Business Ownership?                                                          Paula
                  16     Writing a Business Plan           36   Advocacy and Ombudsman                Panissidi
                                                                Watching out for small business
                                                                                                      Editorial Content
     17           Capital
                  Financing options to start or grow
                  your business.
                                                           37   Additional Resources                  Graphic Design
                  17 SBA Business Loans                         Taking care of start up logistics.    Gary
                  19 What to Take to the Lender                 40 Business Organization:             Shellehamer
                  24 Small Business Investment                       Choosing your Structure
                                                                                                      SBA’s participation in this publication is not an
                       Company Program                                                                endorsement of the views, opinions, products or
                  24 Small Business Innovation
                       Research Program
                                                           41   Other Assistance                      services of the contractor or any advertiser or other
                                                                                                      participant appearing herein. All SBA programs
                                                                                                      and services are extended to the public on a
                  26 Small Business Technology
                       Transfer Program                    43   Lender Listing                        nondiscriminatory basis.

                  26 Surety Bond Guarantee
                                                                                                      Printed in the United States of America
                  27 SBA Loan Program Chart                                                           While every reasonable effort has been made
                                                                                                      to ensure that the information contained herein
                                                                                                      was accurate as of the date of publication, the
                                                                                                      information is subject to change without notice.
                                                                                                      Neither the contractor, the federal government,
                                                                                                      or agents thereof shall be held liable for any
                                                                                                      damages arising from the use of or reliance on the

                                                            The Fresh Diet
                                                                                                      information contained in this publication.

                                                                                                      SBA Publication # MCS-0018
                                                                             story on page 30
                                                                                                      This publication is provided under SBA Contract
                                                                                                      # SBAHQ11C0005.

Visit us online:                                                                         SOUTH FLORIDA Small Business Resource —         3
                                               The U.S. Small Business Administration

                                              F R O M T HE ADM I NI STRATOR
                   Over the past two years, I’ve                           Americans own or work for a small business,
                   met dozens of entrepreneurs                             and two of every three new jobs are created by
                   who used the tools in this                              small businesses.
                   guide – information on
                   capital, contracts, counseling,                         In addition to the great information in this
                   and more – to build their                               guide, check out our online tools. For example,
                   companies and create                                    at you can type in your zip
                   thousands of good jobs. You                             code and a few details about yourself and your
                   can read similar success stories                        business, and you’ll immediately get information
in the back of this issue as part of the SBA 100,                          on SBA resources and contacts in your local
which we rolled out in August.                                             area. Also, you can quickly get local permit
                                                                           and licensing information for various types of
Since the credit crisis hit in 2008, the SBA has                           businesses at
supported over $50 billion in lending to small
businesses through programs like 7(a) and 504,                             America’s small businesses are gearing
our top two loan programs. During that same                                up to expand and hire once again. Our
time, SBA counselors have helped more than 2                               commitment at SBA and throughout the Obama
million entrepreneurs and small business owners                            Administration is to make sure they have the
through networks such as our Small Business                                tools they need to stay on that path. Please
Development Centers, Women’s Business                                      feel free to contact your local SBA office if you
Centers, and our SCORE volunteers. And,                                    have any questions. We stand ready to help in
we’ve helped deliver nearly $100 billion each                              whatever way we can.
year in federal contracts into the hands of small
business owners.                                                           Warm regards,

Today, we continue to empower America’s job
creators with highly-targeted programs and
initiatives aimed at helping both Main Street                              Karen G. Mills
small businesses and high-growth small firms.                              Administrator
This work is crucial, because half of working                              Small Business Administration

    About the SBA
    Your Small Business Resource
   Every year, the U.S. Small Business Administration and its nationwide   	   •	 Contracting
   network of partners help millions of potential and current small        	   •	 Disaster	Assistance
   business owners start, grow and succeed.                                	   •	 Advocacy	and	the	Ombudsman

   Resources and programs targeting small businesses provide an            Visit SBA online at for 24/7 access to small business
   advantage necessary to help small businesses compete effectively in     news, information and training for entrepreneurs.
   the marketplace and strengthen the overall U.S. economy.
                                                                           All SBA programs and services are provided on a nondiscriminatory
   SBA offers help in the following areas:                                 basis.
   	 •	 Counseling
   	 •	 Capital

4 — Small Business Resource   SOUTH FLORIDA                                                                         Visit us online:
                                                                  Message From The District Director

SBA Staff Listing                                                                              We Are Here
Telephone Numbers:
Main Reception Desk: 305-536-5521, Ext. 102 or 0
Toll Free: 800-733-2894, Ext. 1
                                                                                               To Help You

Fax Numbers:
Main: 305-536-5058
Lender Relations: 305-536-5579                                                 ou are now reading the one                   As your business grows, I hope you will
Executive Direction: 305-536-7566                                              publication I am certain will have a   use the many no-cost, high-quality programs
                                                                               tremendous impact on the success       and services SBA offers to small business
NAME                         EXT.    DEPT.
                                                                               of your entrepreneurial experience.    owners. Our resource partners, SCORE--
Campbell, Jeffery             156    8(a) Business Dev. Spec.
                                                                               Thank you for this opportunity         Counselors to America’s Small Business, the
Carrion, Gwendolyn            130    8(a) Business Dev. Spec.
                                                                                                                      Florida Small Business Development Center
Estevez, Manuel               110    Program Support Asst./       to introduce you to the U.S. Small Business
                                     Lender Relations
                                                                                                                      Network (FSBDCN), and the Women’s
                                                                  Administration’s financial, procurement and         Business Centers, counseled and trained
Gonzalez, Miguel              141    Asst. District Director/     technical assistance programs and services in
                                     Customer Service                                                                 thousands of people last year. Our programs
                                                                  South Florida.                                      have proven value. I hope you will include
Harris, Althea                152    Assistant District
                                                                        SBA has one goal: to help entrepreneurs       SBA in your plans for success.
                                     Director/M&O Area 1
Horner, Eve                   139    8(a) Business Dev. Spec.
                                                                  start and expand successful businesses. The               Contact us today and find out how
Johnson, Ralph                132    District Support Asst./      SBA is a federal agency chartered by the            we can assist you. Additionally, the SBA’s
                                     Admin. Services              U.S. Congress to preserve and stimulate free        Website, is a great source for
Marrero, Francisco (Pancho) 118      District Director            enterprise in order to maintain and strengthen      valuable online resources as well as for more
Negroni, Jose               154      Lender Relations Spec.       the national economy. Our objective is clear        information about who we are and what
Perez-Velazquez, Maritza    102      District Support             and we take our responsibilities very seriously.    we do. Keep a copy of the 2012 South
                                     Assist./Customer Service     Please take the time to acquaint yourself with      Florida Small Business Resource Guide
Rackear, Nancy                104    Public Affairs               SBA’s services and use them to ensure your          handy and share the information with other
                                     Specialist                   success in business.                                entrepreneurs. I wish you success.
Suarez, Aimee                 131    8(a) Business Dev. Spec.           The South Florida Small Business
Velasco, Frank                122    8(a) Business Dev. Spec.     Resource Guide provides practical information
                                                                  and lists resources that will help you start and    Sincerely,
Ft. Pierce AWS Site (Area 2)                                      build your business. Through our resource
Gallman, Tom     772-466-1944        Assistant District           partners, SBA can help you develop a viable
                                     Director/M&O Area 2          business plan, obtain financing on competitive
LoPresti, Vincent 772-466-3176       Area Manager                                                                     Francisco “Pancho” A. Marrero
                                                                  terms, or develop a marketing strategy for
Tampa AWS Site (Area 3)                                           your product or service in the national and         District Director of
Chavarria, Robert 813-228-2100                                    international market place.                         SBA’s South Florida District Office
                         ext. 24     Assistant District
                                     Director/M&O Area 3
Hein, Jonel         813-228-2100
                           ext. 25   Asst. District Director/
                                     Admin. Services
Long, Charles       813-228-2100
                           ext. 27   Area Manager/Credit &        South Florida District Counties
                                                                  Brevard                         Manatee
Co-Located SBA Employees
Barbeite, Javier         112         Field Information Tech.      Broward                         Martin
                                     Specialist                   Charlotte                       Miami-Dade
Braverman, Richard            136    District Attorney            Collier                         Monroe
Cook, Linda                   124    Team Leader, Litigation
                                     Unit                         DeSoto                          Okeechobee
Giddens, Traci                115    Program Analyst, OSBDC       Glades                          Osceola
Goldman, Audrey               114    Attorney, Litigation Unit
Marshall, Loretta             144    Paralegal, Litigation Unit
                                                                  Hardee                          Palm Beach
Nirk, Scott                   158    Procurement Center Rep.      Hendry                          Pasco
Rosenfeld, Susan              111    District Counsel             Highlands                       Pinellas
                                                                  Hillsborough                    Polk
                                                                  Indian River                    St. Lucie
                                                                  Lee                             Sarasota

8 — Small Business Resource     SOUTH FLORIDA                                                                                           Visit us online:
                                                                                       The SBA helps business
                                                                                       owners grow and expand
   Doing Business in South Florida                                                     their businesses every day.

                                                                                     controlled by socially and economically
                                                                                     disadvantaged individuals is available
                                                                                     through the Business Development

                                                                                     A Women’s Business Ownership
                                                                                     Representative is available to assist
                                                                                     women business owners. Please contact
                                                                                     Althea Harris at 305-536-5521 ext. 152
                                                                                     or e-mail:

                                                                                     Special loan programs are available for
                                                                                     businesses involved in international
                                                                                     trade. For more information please
                                                                                     contact Mary Hernandez at 305-526-
                                                                                     7425 ext.21 or e-mail: mary.hernandez@

THE SOUTH FLORIDA DISTRICT OFFICE         SERVICES AVAILABLE                         A Veterans Affairs Officer is available
The South Florida District Office is      Financial assistance for new and           to assist veterans. Please contact Robert
responsible for the delivery of SBA’s     existing businesses is available through   Chavarria at 813-228-2100 ext. 24 or
many programs and services. The           guaranteed loans made by area bank         e-mail:
District Director is Francisco “Pancho”   and non-bank lenders.
A. Marrero. The District Office is
located at 100 S. Biscayne Boulevard,     Free counseling, advice and
7th Floor, Miami, FL. Office hours are    information on starting, better
from 8:00 AM until 4:30 PM, Monday        operating or expanding a small
through Friday, except Federal            business is available through SCORE-
Holidays.                                 - Counselors to America’s Small
                                          Business, Florida Small Business
CONTACTING THE SOUTH FLORIDA              Development Centers (SBDC) and
DISTRICT OFFICE                           Women’s Business Centers (WBC).
For program and service information,      They also conduct high-quality training
please contact the Information Desk at    events throughout the district; some
305-536-5521 ext. 102.                    require a nominal registration fee.
                                          Assistance to businesses owned and

We Welcome Your                             2 Alternate Work Sites:                   Service Area 1 / Miami
Questions                                                                             Counties served: Broward, Collier,
                                            U.S. Small Business Administration        Hendry, Lee, Miami-Dade and Monroe.
South Florida District Office               501 E. Kennedy Boulevard, Suite 210
100 S. Biscayne Boulevard, 7th Floor        Tampa, FL 33602
                                                                                      Service Area 2 / Ft. Pierce AWS
Miami, FL 33131-2011
                                            Tel: 813-228-2100 Fax: 813-228-2114       Counties served: Brevard, Glades,
Tel: 305-536-5521 Fax: 305-536-5058
                                                                                      Highlands, Indian River, Martin,
                                                                                      Okeechobee, Osceola, Palm Beach and
Website:               U.S. Small Business Administration        St. Lucie.
                                            505 South 2nd Street, Suite 225
                                            Fort Pierce, FL 34950                     Service Area 3 / Tampa AWS
                                                                                      Counties served: Charlotte, Desota,
                                            Tel: 772-466-1944 Fax: 772-466-6580
                                                                                      Hardee, Hillsborough, Manatee, Pasco,
                                                                                      Pinellas, Polk and Sarasota.

Visit us online:                                                       SOUTH FLORIDA Small Business Resource —   9
                               Getting Help to Start Up, Market and Manage Your Business
                                                                                                             You can count on SCORE as a trusted
                                                                                                          resource to offer in-depth mentoring,
                                                                                                          sound advice and guidance, and tools
                                                                                                          and resources that can help you succeed
                                                                                                          as a business owner. In fiscal year
                                                                                                          2010, SCORE served over 400,000
                                                                                                          clients through individual counseling,
                                                                                                          workshops and online sessions by
                                                                                                          leveraging the expertise and experience
                                                                                                          of nearly 14,000 business mentors.
                                                                                                          For 24/7 access to advice and online
                                                                                                          webinars on topics such as starting,
                                                                                                          growing, marketing and e-commerce for
                                                                                                          small business, visit SCORE online at

                                                                                                 or call 1-800-624-0245 for
                         very year, the U.S. Small                                                        the office nearest you.
                         Business Administration
                         and its nationwide network            SCORE is a national network of             Area 1 – SCORE Chapters
                         of resource partners help          nearly14,000 entrepreneurs, business               Broward, Collier, Hendry, Lee,
                                                            leaders and executives who volunteer as            Miami-Dade
                         millions of potential and
             existing small business owners start,          mentors to America’s small businesses.
                                                            SCORE has helped more than 8.5                Miami-Dade/Monroe SCORE #29
             grow and succeed.                                                                                 175 S.W. 7th St., Ste. 1921
                Whether your target market is global        million entrepreneurs nationwide by                Miami, FL 33130
             or just your neighborhood, the SBA and         leveraging decades of expertise from               786-425-9119
             its resource partners can help at every        seasoned business professionals to       
             stage of turning your entrepreneurial          help entrepreneurs start businesses,     
                                                            grow companies and create jobs in local            Counties served: Miami-Dade & Monroe
             dream into a thriving business.
                If you’re just starting, the SBA and        communities.
                                                               With more than 370 offices                 Broward County SCORE #17
             its resources can help you with loans                                                             299 E. Broward Blvd., Rm. 123
             and business management skills. If             throughout the country, SCORE
                                                                                                               Ft. Lauderdale, FL 33301
             you’re already in business, you can use        matches you with a mentor whose                    954-356-7263 • 954-356-7145 Fax
             the SBA’s resources to help manage             personality, experience, and skills      
             and expand your business, obtain               are a good fit for your business needs.  
             government contracts, recover from             Whether you are a start-up business                Counties served: Broward
             disaster, find foreign markets, and            or growing company, SCORE mentors
                                                            offer free and confidential advice. As        South Broward/North Miami
             make your voice heard in the federal                                                         SCORE #235
             government.                                    members of your community, SCORE
                                                                                                               6565 Taft St., Ste. 403
                You can access SBA information              mentors understand local business                  Hollywood, FL 33024
             online 24 hours a day at www.sba.              licensing rules, economic conditions               954-966-8415 • 954-966-2313 Fax
             gov or visit one of our local offices for      and lending standards. SCORE also        
             assistance.                                    offers local small business workshops    
                                                            at modest fees on popular topics such              Counties served: South Broward & North
                                                            as increasing sales, managing cash flow            Miami-Dade
             SBA’S RESOURCE                                 and marketing your business.
                In addition to our district offices which
             serve every state and territory, SBA

             works with a variety of local resource
             partners to meet your small business
             needs. These professionals can help                                                      • You get to be your own boss.
             with writing a formal business plan,             ON THE UPSIDE                           • Hard work and long hours directly benefit you,
             locating sources of financial assistance,                                                  rather than increasing profits for someone else.
             managing and expanding your business,            It’s true, there are a lot of
             finding opportunities to sell your goods         reasons not to start your               • Earnings and growth potential are unlimited.
             or services to the government, and               own business. But for the
                                                              right person, the advantages            • Running a business will provide endless
             recovering from disaster. To find your
                                                                                                        variety, challenges and opportunities to learn.
             local district office or SBA resource            of business ownership far
             partner, visit           outweigh the risks.

             10 — Small Business Resource   SOUTH FLORIDA                                                                        Visit us online:
Naples/Collier SCORE #573
     Fifth Third Bank Bldg.
     900 Goodlette Rd. N.
     Naples, FL 34102
     239-430-0081 • 239-430-0082 Fax
     Counties served: Collier & Monroe

Southwest Florida SCORE Chapter #219
     Social Security Bldg.
     3650 Colonial Blvd., Ste. 231
     Fort Myers, FL 33966
     239-489-2935 • 239-489-1170 Fax
     Counties served: Lee

Area 2 – SCORE Chapters
     Brevard, Glades, Highlands, Indian River,
     Martin, Okeechobee, Osceola, Palm Beach,
     St. Lucie
South Palm Beach County SCORE #412                Central Florida SCORE #122                            preparedness, import and export
     7999 N. Federal Hwy., Ste. 201
                                                     5410 S. Florida Ave., #3                           assistance, veterans assistance,
     Boca Raton, FL 33487
     561-981-5180 • 561-981-5391 Fax
                                                     Lakeland, FL 33813                                 procurement assistance, electronic
                                                     863-619-5783                                       commerce, technology transfer and
                                              regulatory compliance. A number
                                                               of SBDC networks have specialized
Palm Beach SCORE #224                                                                                   programs or centers dedicated to these
     500 Australian Ave. S., Ste. 115
                                                  Hillsborough SCORE #203                               focus areas.
                                                     Corp. Square - Bldg. 400, #465
     West Palm Beach, FL 33401
                                                     7402 N. 56th St.
                                                                                                           During the past thirty years, through
     561-833-1672 • 561-833-1470 Fax
                                                     Tampa, FL 33617                                    a unique mix of federal, state and                                                                                 private sector resources, the SBDC
                                                     813-988-1435 • 813-914-4027 Fax                                                                                   program has increased its return on
     Counties served: Palm Beach                                                                        investment. Through federal grants,
                                                                                                        SBDCs in every state and territory
Treasure Coast SCORE #308                         Charlotte/Desoto SCORE #318                           provide the foundation for the economic
     3220 U.S. Hwy. 1, Ste. 2
     Ft. Pierce, FL 34952
                                                     1777 Tamiami Tr., Ste. 411                         growth of small businesses. These small
                                                     Port Charlotte, FL 33950                           businesses, in turn, advance local and
     772-489-0548 • 772-489-9548 Fax
                                                     941-743-6179                                       regional economic development through
                                              the generation of business revenues, job
                                                                creation and job retention. This return
Space Coast SCORE #400                                                                                  on investment is demonstrated by fiscal
     Ralph Perers, Chairperson
                                                  Pasco/Hernando County SCORE #439                      2010 outcomes, where SBDCs:
                                                     6014 U.S. Hwy. 19, #302
     Melbourne Professional Complex                                                                       • Assisted more than 13,600
                                                     New Port Richey, FL 34652
     1600 Sarno Rd., Ste. 205                                                                               entrepreneurs to start new businesses
                                                     727-842-4638 • 727-842-4766 Fax
     Melbourne, FL 32935                                                                                    – an estimated 37 new business starts
     321-254-2288 • 321-254-2288 Fax                                                                        per day.
                                                                                                                   • Provided counseling services to over                                                                                107,000 emerging entrepreneurs and
                                                  SMALL BUSINESS                                            nearly 102,000 existing businesses.
Area 3 – SCORE Chapters
     Charlotte, DeSoto, Hardee, Hillsborough,     DEVELOPMENT CENTERS                                     • Provided training services to
                                                                                                            approximately 380,000 clients.
     Manatee, Pasco, Pinellas, Polk, Sarasota        The Small Business Development                        The efficacy of the SBDC program
                                                  Center (SBDC) program has been vital                  has been validated by a nationwide
Pinellas/Suncoast SCORE #115                      to SBA’s entrepreneurial outreach for
     Airport Business Center #311                                                                       impact study. Of the clients surveyed,
                                                  more than 30 years. It has become one of              more than 80 percent reported that the
     4707 140th Ave. N.                           the largest professional small business
     Clearwater, FL 33762                                                                               business assistance they received from
                                                  management and technical assistance                   the SBDC counselor was worthwhile.
     727-532-6800 • 727-532-6800 Fax
                                                  networks in the nation. With nearly                                                                            Similarly, more than 50 percent reported                        900 locations across the country, SBDCs
                                                                                                        that SBDC guidance was beneficial in
                                                  offer free one-on-one expert business
                                                  advice and low-cost training by qualified             making the decision to start a business.
Manasota SCORE #116                                                                                     More than 40 percent of long-term
     2801 Fruitville Rd., #280                    small business professionals to existing
     Sarasota, FL 34237                           and future entrepreneurs.                             clients, those receiving 5 hours or more
     941-955-1029 • 941-955-5581 Fax                 The SBDC program includes special                  of counseling, reported an increase   focus areas such as, green business                   in sales and 38 percent reported an                    technology, disaster recovery and                     increase in profit margins.

Visit us online:                                                                        SOUTH FLORIDA Small Business Resource —   11
                                                  SBDC at Florida Gulf Coast University            Area 3
                                                     Julio Estremera, Certified Business Analyst      (Charlotte, DeSoto, Hardee, Hillsborough,
                                                     Career Service Center of Collier County          Manatee, Pasco, Pinellas, Polk, Sarasota)
                                                     750 S. 5th St., Ste. 710
                                                     Immokalee, FL 34142-4301                      SBDC at the University of South Florida
                                                     239-658-3327 • 239-658-3355 Fax                  Eileen Rodriguez, Regional Director
                                                                           1101 Channelside Dr., Ste. 210
                                                                    Tampa, FL 33602-3613
                                                                                                      813-905-5800 • 813-905-5801 Fax
                                                  SBDC at Florida Gulf Coast University     
                                                     Robert Smoot, Certified Business Analyst
                                                     1020 Cultural Park Blvd., Unit 3
                                                     Cape Coral, FL 33990-1229                     SBDC at USF - St. Petersburg
                                                     239-573-2737 • 239-573-2797 Fax                  Wayne Brass, Certified Business Analyst
                                                                             College of Business
                                                                    140 7th Ave. S., DAV 108D
                                                  Area 2                                              St. Petersburg, FL 33701-5016
                                                     (Brevard, Glades, Highlands, Indian River,       727-873-4753
                                                     Martin, Okeechobee, Osceola, Palm Beach,
                                                     St. Lucie)                             

                                                  SBDC at Palm Beach State College                 SBDC at Central Florida Development
                                                     Ted Kramer, Regional Director                 Council (Polk County)
                                                     3000 Saint Lucie Ave, Ste. AD 408                Doretha Brooks, Director
                                                     Boca Raton, FL 33431                             PSC/USF Polytechnic
                                                     561-862-4726 • 561-862-4727 Fax                  3433 Winter Lake Rd., Modular-LMC
  For information on the SBDC
                                                                     Lakeland, FL 33803-9807
program, visit To                          863-667-7913 • 863-667-7911 Fax
schedule an appointment for counseling                                                      
or to see the seminar schedule, contact           SBDC at the University of Central Florida 
the center nearest you from the list                 Gene Romagna, Area Manager
                                                     Lake Sumter Community College                 SBDC at State College of Florida
                                                     1250 N. Hancock Rd., Rm. 106, Bldg. 1         Manatee - Sarasota
                                                     Clermont, FL 34711-5931                          Carolyn Griffin, Assistant Director
Area 1                                               352-536-2224
    (Broward, Collier,Hendry, Lee, Miami-Dade,                                                        Business Resource Center
                                                                        8000 Tamiami Tr. S.
    Monroe)                                                              Venice, FL 34293-5113
SBDC Miami-Dade                                   SBDC at Brevard Community College                   941-408-1412 • 941-497-6433 Fax
    Carlos Cardenas, Regional Director               Victoria Peake, Director               
    Festival Plaza, 8500 S.W. 8th St., Ste. 224      3865 N. Wickham Rd., Rm. 122, Bldg. 10 
    Miami, FL 33144-4002                             Melbourne, FL 32935-2310
    305-261-1638 • 305-264-3567 Fax                  321-433-5570 • 321-433-5708 Fax               SBDC at State College of Florida                                    Manatee - Sarasota                                       Arthur Mahoney, Certified Business Analyst
                                                                                                      Lakewood Ranch
SBDC Broward County                               SBDC at the University of South Florida             7131 Professional Pkwy. E.
    Rafael Cruz, Regional Director                   David Noel, Certified Business Analyst           Sarasota, FL 34240-8453
    Reubin O’D. Askew Tower, Rm. 525                 South Florida Community College                  941-363-7219 • 941-373-7795 Fax
    111 E. Las Olas Blvd.                            600 W. College Dr., Bldg. T            
    Ft. Lauderdale, FL 33301-2206                    Avon Park, FL 33825-9356               
    954-762-5235                                     863-784-7378 • 863-784-7355 Fax                                        SBDC at Florida Gulf Coast University                                    Peter Keating, Certified Business Analyst
                                                                                                      Charlotte County Chamber of Commerce
SBDC Key West                                     SBDC at Indiana River State College                 2702 Tamiami Tr.
    Greg Baumann, Certified Business Analyst         Donna Rivett, Regional Director                  Port Charlotte, FL 33952-5129
    Florida Keys Community College                   3209 Virginia Ave., Bldg. E, Rm. 123             941-627-2222 • 941-639-6330 Fax
    5901 College Rd., Ste. C-226                     Ft. Pierce, FL 34981-5596              
    Key West, FL 33040-4315                          772-462-7296 or 888-283-1177           
    305-809-3156 • 305-393-1713 Fax                  772-462-7843 Fax                                SBDC at the University of South Florida                                           Learline Shortyi, Certified Business Analyst
                                                                                                      7402 N. 56th St., Ste. 425, Bldg. 400
SBDC at Florida Gulf Coast University             SBDC at Indian River State College                  Temple Terrace, FL 33617-7743
    Dan Regelski, Regional Director                  Jack Burns, Certified Business Analyst           813-914-4028 • 813-914-4027 Fax
    FGCU, CLI, Lutgert COB, Unit 2320                IRSC Business Incubator                
    10501 FGCU Blvd. S.                              924 S.E. Central Pkwy.                 
    Fort Myers, FL 33965-6565                        Stuart, FL 34994-3997
    239-745-3700 • 239-745-3710 Fax                  772-419-5694 • 772-283-1981 Fax                                     

12 — Small Business Resource   SOUTH FLORIDA                                                                         Visit us online:
State Director’s Office                      set aside certain federal contracts for         • Nearly half of the participants secured
     Jerry Cartwright, State Director        eligible women-owned small businesses             federal, state, local and tribal contracts
     11000 University Pkwy., Bldg. 38        or economically disadvantaged women-              with a cumulative total of $287
     Pensacola, FL 32514-5750                owned small businesses. For more                  million.
     850-473-7800 or Suncom 680-7800                                                         • Approximately half of the participants
                                             information on the program, visit www.
     850-473-7813 Fax                                                                          have hired new workers, creating 275                                               new jobs in 2010.                        To find the nearest SBA WBC, visit           • All participants were introduced and
                                                                   trained on becoming SBA 8(a) certified

                                                                                               firms; nearly 25 percent of respondents
                                             Florida Women’s Business Center                   are currently certified as SBA 8(a)
   The SBA’s Women Business                     Jennifer Kovach, Director                      firms, while other participants
Center (WBC) program is a network               401 W. Atlantic Ave., Ste. 09                  reported a focused intention on
of approximately 110 community-                 Delray Beach, FL 33444                         applying to the 8(a) program.
                                                866-353-3790 ext. 113 Toll Free              • Nearly 50 percent of participating
based centers which provide business            561-265-0806 Fax                               respondents were female executives
training, coaching, mentoring and                                  and 70 percent were minority business
other assistance geared toward women,                                   executives.
particularly those who are socially and         Serving 18 Counties: Broward, Charlotte,     • 85 percent of responding executives
economically disadvantaged. WBCs                Collier, Desoto, Glades, Hardee, Hendry,       were Satisfied or Very Satisfied with
are located in nearly every state and           Highlands, Hillsborough, Lee, Manatee,         the overall training series and results.
U.S. territory and are partially funded         Martin, Miami-Dade, Monroe, Okeechobee,       To find out more about this executive-
through a cooperative agreement with            Palm Beach, Pinellas, and Sarasota.
                                                                                           level training opportunity, please
the SBA.                                                                                   visit for host cities,
                                             Satellite Office: Broward County
   To meet the needs of women                   330 N. Federal Hwy.                        training schedules, and selection
entrepreneurs, WBCs offer services              Hollywood, FL 33020                        criteria.
at convenient times and locations,              954-923-4000
including weekends. Most WBCs are
located at non-profit host organizations     Satellite Office: Lee County                  SBA’S ONLINE TOOLS AND
that offer a wide variety of services in        3903 Dr. Martin Luther King Jr. Blvd.
                                                Fort Myers, FL 33916
addition to the services provided by the                                                     SBA’s Small Business Training
WBC. Many of the WBCs also offer                                                           Network is a virtual campus complete
training and counseling and provide          Women’s Business Center at Florida Tech       with free online courses, workshops,
materials in different languages in             Donn E. Miller-Kermani, Director           podcasts, learning tools and business-
order to meet the diverse needs of the          150 W. University Blvd.                    readiness assessments.
communities they serve.                         Melbourne, FL 32901                        Key Features of the Small Business
   WBCs often deliver their services            321-674-7006 • 321-674-7008 Fax            Training Network:
through long term training or group   
                                                                        Training is available anytime and
counseling, both of which have shown to                                                    anywhere—all you need is a computer
be effective. WBC training courses are                                                     with Internet access.
often free or offered at a small fee. Some   EMERGING LEADERS                                • More than 30 free online courses and
centers will also offer scholarships based                                                     workshops are available.
                                                SBA’s Emerging Leaders initiative
on the client’s needs.                                                                       • Templates and samples to get your
                                             is currently hosted in 27 markets
   While most WBCs are physically                                                              business planning underway.
                                             across the country using a national             • Online, interactive assessment tools
located in one designated location, a
                                             demonstrated research-based                       are featured and used to direct clients
number of WBCs also provide courses
                                             curriculum that supports the growth               to appropriate training.
and counseling via the Internet, mobile
                                             and development of small firms that              Course topics include a financial
classrooms and satellite locations.
                                             have substantial potential for expansion      primer keyed around SBA’s loan-
   WBCs have a track record of success.
                                             and community impact. A competitive           guarantee programs; a course on
In fiscal year 2010, the WBC program
                                             selection process results in firm             exporting; courses for veterans and
counseled and trained more than
                                             executives participating in high-level        women seeking federal contracting
160,000 clients, creating local economic
                                             training and peer-networking sessions         opportunities; and an online library
growth and vitality. Of the WBC clients
                                             led by professional instructors and local     of podcasts, business publications,
who have received 3 or more hours of
                                             economic development organizations.           templates and articles.
counseling, 15 percent indicated that
                                             Post-training, social and economic               Find these free resources at www.sba.
the services led to hiring new staff, 34
                                             impact results from responding                gov/training.
percent indicated that the services led
                                             executives who attended the 2008 –
to an increased profit margin, and 47
                                             2010 training classes indicate:
percent indicated that the services led to     • More than half of participating
an increase in sales.                            businesses reported an increase in
   In addition, the WBC program has              revenue, with an average revenue of
taken a lead in preparing women                  $1,879,266.
business owners to apply for the               • Participating businesses averaged
Women-Owned Small Business                       $2 million in revenue, with new
(WOSB) Federal Contract program                  cumulative financing of $7.2 million
that authorizes contracting officers to          secured in 2010.

Visit us online:                                                           SOUTH FLORIDA Small Business Resource —   13
                               REACHING UNDERSERVED COMMUNITIES
   SBA also offers a number of programs           SBA is committed to reaching               employee is called to active duty. The
specifically designed to meet the needs        out to faith based and community              Military Reservist Economic Injury
in the underserved communities.                organizations that are eligible to            Disaster Loan Program (MREIDL)
                                               participate in the agency’s programs by       provides loans up to $2 million to eligible
WOMEN BUSINESS OWNERS                          informing their congregants, members
                                               and neighbors about SBA’s programs.
                                                                                             small businesses to cover operating costs
                                                                                             that cannot be met due to the loss of an
   Women entrepreneurs are changing            In particular, many faith-based and           essential employee called to active duty
the face of America’s economy. In the          community non-profit organizations            in the Reserves or National Guard.
1970s, women owned less than five              can provide a local financing option            Among the SBA’s unique services for
percent of the nation’s businesses.            for entrepreneurs by becoming SBA             veterans are: an Entrepreneurship Boot
   Today, they are majority owners             Microloan Intermediaries. An SBA              Camp for Veterans with Disabilities in
of about a third of the nation’s small         Microloan Intermediary often acts as
businesses and are at least equal owners                                                     partnership with 6 top U.S. universities
                                               a bank for entrepreneurs and small            (, a program
of about half of all small businesses.
                                               businesses that might otherwise be            to reach women veteran-entrepreneurs
SBA serves women entrepreneurs
                                               unable to find access to capital.             (, and a
nationwide through its various programs
and services, some of which are designed                                                     program for Reserve Component family
especially for women.                          VETERANS AND RESERVISTS                       members called Operation Endure
   The SBA’s Office of Women’s Business        BUSINESS DEVELOPMENT                          and Grow (
Ownership (OWBO) serves as an
                                                 To ensure that veterans, service-             For more information about small
advocate for women-owned businesses.
                                               disabled veterans and Reserve and             business lending programs for veteran
OWBO oversees a nationwide network
of 110 women’s business centers that           National Guard member entrepreneurs           business owners and Reserve or
provide business training, counseling          receive special consideration in all of       Guard members who are activated,
and mentoring geared specifically to           SBA’s entrepreneurial programs and            including Patriot Express, microloans,
women, especially those who are socially       resources, the SBA has established            and Advantage loans, see the section
and economically disadvantaged. The            an Office of Veterans Business                on Access to Capital. To learn more
program is a public-private partnership        Development (OVBD). Each year,                about the Veterans Business Outreach
with locally-based nonprofits.                 OVBD reaches thousands of veterans,           program or find the nearest SBA VBOC,
   Women’s Business Centers serve              Reserve Component members,                    visit the SBA Web site at
a wide variety of geographic areas,            transitioning service members and             vets.
population densities, and economic             others who are – or who want to
environments, including urban,                 become – entrepreneurs and small
suburban, and rural. Local economies           business owners. OVBD develops and            NATIVE AMERICAN BUSINESS
vary from depressed to thriving, and           distributes informational materials for       DEVELOPMENT
range from metropolitan areas to               entrepreneurship such as the Veterans            The SBA Office of Native American
entire states. Each Women’s Business           Business Resource Guide, VETGazette,          Affairs (ONAA) ensures American
Center tailors its services to the needs       and Getting Veterans Back to Work. In         Indians, Alaska Natives and Native
of its individual community, but all           addition, there are 16 Veterans Business      Hawaiians seeking to create, develop
offer a variety of innovative programs,        Outreach Centers strategically located        and expand small businesses have
often including courses in different           throughout the country that provide           full access to the necessary business
languages. They provide training in            both online and in-person training,           development and expansion tools
finance, management, marketing, and            counseling, mentoring, workshops,             available through the agency’s
the Internet, as well as access to all of      referrals, and more. Each of the SBA’s        entrepreneurial development, lending,
the SBA’s financial and procurement            68 District Offices also has a designated     and contracting programs. ONAA
assistance programs.                                                                         provides a network of training (including
                                               veteran’s business development officer.
                                                 The SBA offers special assistance for       the online tool “Small Business
CENTER FOR FAITH-BASED AND                     small businesses owned by activated           Primer: Strategies for Growth”) and
NEIGHBORHOOD PARTNERSHIPS                      Reserve and National Guard members.           counseling services and engages in
                                                                                             numerous outreach activities, such as
                                               Any self-employed Reserve or Guard
   Faith-based and Neighborhood                                                              tribal consultations, development and
                                               member with an existing SBA loan can
Partnerships know their communities,                                                         distribution of educational materials,
and they have earned their people’s            request from their SBA lender or SBA
                                               district office loan payment deferrals,       attendance and participation in
trust. Because of their credibility,                                                         economic development events and
they are uniquely positioned to build          interest rate reductions and other relief
                                                                                             assisting these small businesses with
awareness of programs that encourage           after they receive their activation orders.
                                                                                             SBA programs.
entrepreneurship, economic growth and          In addition, the SBA offers special
                                                                                                More information is at
job creation.                                  low-interest-rate financing to small
                                               businesses when an owner or essential

14 — Small Business Resource   SOUTH FLORIDA                                                                  Visit us online:
     Most new business owners who
  succeed have planned for every phase
                                                        own shoulders. Strong motivation
                                                        will help you survive slowdowns and
                                                                                                  HOME-BASED BUSINESSES
                                                        periods of burnout.                          Going to work used to mean
  of their success. Thomas Edison, the
                                                      • How will the business affect              traveling from home to a plant, store or
  great American inventor, once said,
                                                        your family? The first few years of       office. Today, many people do some or
  “Genius is 1 percent inspiration and                                                            all their work at home.
                                                        business start-up can be hard on
  99 percent perspiration.” That same
                                                        family life. It’s important for family
  philosophy also applies to starting a                 members to know what to expect            Getting Started
  business.                                             and for you to be able to trust that         Before diving headfirst into a home-
     First, you’ll need to generate a little            they will support you during this         based business, you must know why
  bit of perspiration deciding whether                  time. There also may be financial         you are doing it. To succeed, your
  you’re the right type of person to start              difficulties until the business becomes   business must be based on something
  your own business.                                    profitable, which could take months       greater than a desire to be your
                                                        or years. You may have to adjust to a     own boss. You must plan and make
  IS ENTREPRENEURSHIP FOR                               lower standard of living or put family
                                                        assets at risk.
                                                                                                  improvements and adjustments along
                                                                                                  the road.
  YOU?                                                Once you’ve answered those                     Working under the same roof where
     There is simply no way to eliminate            questions, you should consider what           your family lives may not prove to be
  all the risks associated with starting            type of business you want to start.           as easy as it seems. One suggestion is
  a small business, but you can improve             Businesses can include franchises,            to set up a separate office in your home
  your chances of success with good                 at-home businesses, online businesses,        to create a professional environment.
  planning, preparation, and insight.               brick-and-mortar stores or any                Ask yourself these questions:
  Start by evaluating your strengths                combination of those.                           • Can I switch from home
                                                                                                      responsibilities to business work
  and weaknesses as a potential owner                                                                 easily?
  and manager of a small business.                  FRANCHISING                                     • Do I have the self-discipline to
  Carefully consider each of the following                                                            maintain schedules while at home?
                                                       There are more than 3,000 business           • Can I deal with the isolation of
                                                    franchises. The challenge is to decide            working from home?
      • Are you a self-starter? It will be
        entirely up to you to develop projects,     on one that both interests you and is
        organize your time, and follow              a good investment. Many franchising           Legal Requirements
        through on details.                         experts suggest that you comparison              A home-based business is subject to
      • How well do you get along with              shop by looking at multiple franchise         many of the same laws and regulations
        different personalities? Business           opportunities before deciding on the          affecting other businesses.
        owners need to develop working              one that’s right for you.                     Some general areas include:
        relationships with a variety of                Some of the things you should                • Zoning regulations. If your business
        people including customers, vendors,        look at when evaluating a franchise:              operates in violation of them, you
        staff, bankers, employees, and              historical profitability, effective               could be fined or shut down.
        professionals such as lawyers,                                                              • Product restrictions. Certain
                                                    financial management and other
        accountants, or consultants. Can                                                              products cannot be produced in the
                                                    controls, a good image, integrity and             home. Most states outlaw home
        you deal with a demanding client,           commitment, and a successful industry.
        an unreliable vendor, or a cranky                                                             production of fireworks, drugs,
                                                       In the simplest form of franchising,           poisons, explosives, sanitary or
        receptionist if your business interests
                                                    while you own the business, its                   medical products and toys. Some
        demand it?
      • How good are you at making                  operation is governed by the terms of             states also prohibit home-based
        decisions? Small business owners are        the franchise agreement. For many,                businesses from making food, drink
        required to make decisions constantly       this is the chief benefit for franchising.        or clothing.
        – often quickly, independently, and         You are able to capitalize on a business         Be sure to consult an attorney and
        under pressure.                             format, trade name, trademark and/            your local and state departments
      • Do you have the physical and                or support system provided by the             of state, labor and health to find
        emotional stamina to run a                  franchisor. But you operate as an             out which laws and regulations will
        business? Business ownership can            independent contractor with the ability       affect your business. Additionally,
        be exciting, but it’s also a lot of work.   to make a profit or sustain a loss            check on registration and accounting
        Can you face six or seven 12–hour           commensurate with your ownership.             requirements needed to open your
        workdays every week?                           If you are concerned about starting        home-based business. You may need
      • How well do you plan and                    an independent business venture, then         a work certificate or license from the
        organize? Research indicates that
                                                    franchising may be an option for you.         state. Your business name may need
        poor planning is responsible for most
        business failures. Good organization
                                                    Remember that hard work, dedication           to be registered with the state. A
        — of financials, inventory, schedules,      and sacrifice are key elements in             separate business telephone and bank
        and production — can help you avoid         the success of any business venture,          account are good business practices.
        many pitfalls.                              including a franchise.                           Also remember, if you have
      • Is your drive strong enough?                   For more information visit                 employees you are responsible for
        Running a business can wear you                           withholding income and social-
        down emotionally. Some business                                                           security taxes, and for complying with
        owners burn out quickly from having                                                       minimum wage and employee health
        to carry all the responsibility for the                                                   and safety laws.
        success of their business on their

Visit us online:                                                                   SOUTH FLORIDA Small Business Resource —   15

     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
  profitability and market share, then
  expands as an in-business assessment
  tool to determine success, obtain
  financing 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. SBA
  also offers online templates to get you      Marketing                                  • Provide projected income statements,
  started.                                      • Discuss the products and services         and balance sheets for a two-year
     In general, a good business plan             your company will offer.                  period.
                                                • Identify customer demand for your       • Discuss your break-even point.
  contains:                                                                               • Explain your personal balance sheet
                                                  products and services.
  Introduction                                  • Identify your market, its size and        and method of compensation.
     • Give a detailed description of the         locations.                              • Discuss who will maintain your
       business and its goals.                  • Explain how your products and             accounting records and how they will
     • Discuss ownership of the business          services will be advertised and           be kept.
       and its legal structure.                   marketed.                               • Provide “what if” statements
     • List the skills and experience you       • Explain your pricing strategy.            addressing alternative approaches to
       bring to the business.                                                               potential problems.
     • Discuss the advantages you and your     Financial Management
       business have over competitors.          • Develop an expected return on          Operations
                                                  investment and monthly cash flow for    • Explain how the business will be
                                                  the first year.                           managed day-to-day.
                                                                                          • Discuss hiring and personnel
                                                                                          • Discuss insurance, lease or rent
                                                                                            agreements, and issues pertinent to
                                                                                            your business.
                                                                                          • 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 office
                                                                                         business development specialists
                                                                                         or veterans business development
                                                                                            Remember, the business plan is a
                                                                                         flexible document that should change
                                                                                         as your business grows.

16 — Small Business Resource   SOUTH FLORIDA                                                             Visit us online:
                                    Financing Options to Start or Grow Your Business
                                                                                                 The SBA guaranty reduces the
                                                                                              lender’s risk of borrower non-payment.
                                                                                              If the borrower defaults, the lender
                                                                                              can request SBA to pay the lender that
                                                                                              percentage of the outstanding balance
                                                                                              guaranteed by SBA. This allows the
                                                                                              lender to recover a portion from SBA of
                                                                                              what it lent if the borrower can’t make
                                                                                              the payments. The borrower is still
                                                                                              obligated for the full amount.
                                                                                                 To qualify for an SBA loan, a small
                                                                                              business must meet the lender’s
                                                                                              criteria and the 7(a) requirements. In
                                                                                              addition, the lender must certify that it
                                                                                              would not provide this loan under the

                                                                                              proposed terms and conditions unless
                                                                                              it can obtain an SBA guaranty. If the
              any entrepreneurs need            resources will be needed to accomplish
                                                                                              SBA is going to provide a lender with
              financial resources to start      the desired business purpose including
                                                                                              a guaranty, the applicant must be
              or expand a small business        the associated costs, the applicants’         eligible and creditworthy and the loan
              themselves and must               contribution, use of loan proceeds,           structured under conditions acceptable
              combine what they have            collateral, and, most important, an           to SBA.
with other sources of financing. These          explanation of how the business will
sources can include family and friends,         be able to repay the loan in a timely         Percentage of Guaranties and Loan
venture-capital financing, and business         manner.                                       Maximums
loans.                                             The lender will analyze the                   The SBA only guarantees a portion of
   This section of the Small Business           application to see if it meets the lender’s   any particular loan so each loan will also
Resource guide discusses SBA’s primary          criteria and SBA’s requirements. SBA          have an unguaranteed portion, giving
business loan and equity financing              will look to the lender to do much, if not    the lender a certain amount of exposure
programs. These are: the 7(a) Loan              all, of the analysis before it provides       and risk on each loan. The percentage
Program, the Certified Development              its guaranty on the lender’s loan. In         SBA guarantees depends on either the
Company or 504 Loan Program, the                the case of microlenders SBA loans            dollar amount or the program the lender
Microloan Program and the Small                 these intermediaries funds at favorable       uses to obtain its guaranty. For loans of
Business Investment Company                     rates to re-lend to businesses with           $150,000 or less the SBA may guaranty
Program. The distinguishing features            financing needs up to $50,000. The            as much as 85 percent and for loans
for these programs are the total dollar         SBA’s business loan programs provide a        over $150,000 the SBA can provide a
amounts that can be borrowed, the type          key source of financing for viable small      guaranty of up to 75 percent.
of lenders who can provide these loans,         businesses that have real potential              The maximum 7(a) loan amount
the uses for the loan proceeds, and the         but cannot qualify for ong-term, stable       is $5 million. (Loans made under
terms placed on the borrower.                   financing.                                    the SBAExpress program, which is
   Note: The SBA does not offer grants                                                        discussed later in this section, have a 50
to individual business owners to start or
grow a business.                                7(a) LOAN PROGRAM                             percent guaranty.)
                                                   The 7(a) Loan program is the SBA’s         Interest Rates and Fees
SBA BUSINESS LOANS                              primary business loan program. It
                                                is the agency’s most frequently used
                                                                                                The actual interest rate for a 7(a)
   If you are contemplating a business                                                        loan guaranteed by SBA is negotiated
                                                non-disaster financial assistance             between the applicant and lender and
loan, familiarize yourself with the             program because of its flexibility in
SBA’s business loan programs to see                                                           subject to SBA maximums. Both fixed
                                                loan structure, variety of loan proceed       and variable interest rate structures
if they may be a viable option. Keep            uses, and availability. The program has
in mind the dollar amount you seek to                                                         are available. The maximum rate is

                                                broad eligibility requirements and credit     comprised of two parts, a base rate and
borrow and how you want to use the              criteria to accommodate a wide range of
loan proceeds. The three principal                                                            an allowable spread. There are three
                                                financing needs.                              acceptable base rates (Wall Street
players in most of these programs are              The business loans that SBA                Journal Prime*, London Interbank One
the applicant small business, the lender        guarantees do not come from the               Month Prime plus 3 percent, and an
and the SBA. SBA guarantees a portion           agency, but rather from banks and other       SBA Peg Rate). Lenders are allowed
of the loan (except for Microloans).            approved lenders. The loans are funded        to add an additional spread to the base
The business should have its business           by these organizations, and they make         rate to arrive at the final rate. For
plan prepared before it applies for a           the decisions to approve or not approve       loans with maturities of less than seven
loan. This plan should explain what             the applicants’ requests.                     years, the maximum spread will be no

Visit us online:                                                              SOUTH FLORIDA Small Business Resource —   17
more than 2.25 percent. For loans with         off before maturity, but the SBA will         involved in gambling and any illegal
maturities of seven years or more, the         charge the borrower a prepayment fee          activity.
maximum spread will be 2.75 percent.           if the loan has a maturity of 15 or more         The SBA also cannot offer loan
The spread on loans under $50,000              years and is pre-paid during the first        guaranties to non-profit businesses,
and loans processed through Express            three years.                                  private clubs that limit membership on
procedures may be higher.                                                                    a basis other than capacity, businesses
   Loans guaranteed by SBA are                 Collateral                                    that promote a religion, businesses
assessed a guaranty fee. This fee is              The SBA expects every 7(a) loan to         owned by individuals incarcerated or
based on the loan’s maturity and the           be fully secured, but the SBA will not        on probation or parole, municipalities,
dollar amount guaranteed, not the              decline a request to guaranty a loan if       and situations where the business or
total loan amount. The guaranty fee is         the only unfavorable factor is insufficient   its owners previously failed to repay
generally paid by the borrower and can         collateral, provided all available            a federal loan or federally assisted
                                               collateral is offered. What these two         financing.
be included in the loan proceeds.
   On any loan with a maturity of one          policies mean is that every SBA loan
                                               is to be secured by all available assets      Use of Proceeds
year or less, the fee is just 0.25 percent
                                               (both business and personal) until the           The third eligibility factor is use of
of the guaranteed portion of the loan.
                                               recovery value equals the loan amount         proceeds. 7(a) proceeds can be used
On loans with maturities of more than                                                        to make leasehold improvements
one year, the normal guaranty fee is 2         or until all assets have been pledged
                                               to the extent that they are reasonably        or purchase machinery; equipment;
percent of the SBA guaranteed portion                                                        fixtures; supplies; or land and/or
on loans up to $150,000; 3 percent on          available. Personal guaranties are
                                               required from all the principal owners of     buildings that will be occupied by the
loans over $150,000 but not more than                                                        business borrower.
$700,000; and 3.5 percent on loans over        the business. Liens on personal assets of
                                               the principals may be required.               Proceeds can also be used to:
$700,000. There is also an additional                                                          • Expand or renovate facilities;
fee of 0.25 percent on any guaranteed                                                          • Acquire machinery, equipment,
portion over $1 million.
                                               Eligibility                                       furniture, fixtures and leasehold
                                                  7(a) loan eligibility is based on four         improvements;
* All references to the prime rate refer
                                               different factors. The first is size, as        • Finance receivables and augment
to the base rate in effect on the first
                                               all loan recipients must be classified            working capital;
business day of the month the loan                                                             • Finance seasonal lines of credit;
                                               as “small” by SBA. The basic size
application is received by SBA.                                                                • Acquire businesses;
                                               standards are outlined below. A more
                                                                                               • Start up businesses;
7(a) Loan Maturities                           in-depth listing of standards can be            • Construct commercial buildings; and
  SBA loan programs are generally              found at                      • Refinance existing debt under certain
intended to encourage longer term small                                                          conditions.
                                               SBA Size Standards:                              SBA 7(a) loan proceeds cannot be used
business financing, but actual loan              • Manufacturing — from 500 to no more
maturities are based on the ability to                                                       for the purpose of making investments.
                                                   than 1,500 employees                      SBA proceeds cannot be used to
repay, the purpose of the loan proceeds          • Wholesaling — No more than 100
and the useful life of the assets financed.        employees
                                                                                             provide funds to any of the owners
                                                 • Services — from $4.5 million to no        of the business except for ordinary
However, maximum loan maturities
                                                   more than $35.5 million in average        compensation for actual services
have been established: 25 years for real
                                                   annual receipts                           provided.
estate; up to 10 years for equipment
                                                 • Retailing — from $7 million to no more
(depending on the useful life of the               than $35.5 million in average annual      Miscellaneous Factors
equipment); and, generally, up to seven            receipts                                     The fourth factor involves a variety
years for working capital. Short-term            • General construction — from $7            of requirements such as SBA’s credit
loans and revolving lines of credit are            million to no more than $33.5 million     elsewhere test and utilization of
also available through the SBA to help             in average annual receipts                personal assets requirements, where the
small businesses meet their short-term           • Agriculture — from $750,000 to no
                                                   more than $17.5 million in average
                                                                                             business and its principal owners must
and cyclical working capital needs.                                                          use their own resources before getting a
                                                   annual receipts
                                                 There is also an alternate size             loan guaranteed by SBA. It also includes
Structure                                                                                    SBA’s anti-discrimination rules and
   Most 7(a) loans are repaid with             standard that is based on a net worth
                                               ($15 million or less) and average net         restrictions on lending to agricultural
monthly payments of principal and                                                            enterprises because there are other
interest. For fixed-rate loans the             income ($5 million or less). This new
                                               alternate makes more businesses eligible      agencies of the federal government with
payments stay the same, whereas                                                              programs to fund such businesses.
for variable rate loans the lender can         for SBA loans and applies to all SBA
                                               non-disaster loan programs.                   Generally, SBA loans must meet the
re-establish the payment amount                                                              following criteria:
when the interest rates change or at           Nature of Business                              • Every loan must be for a sound
other intervals, as negotiated with               The second eligibility factor is based         business purpose;
the borrower. Applicants can request           on the nature of the business and the           • There must be sufficient invested
that the lender establish the loan with                                                          equity in the business so it can operate
                                               process by which it generates income or           on a sound financial basis;
interest-only payments during the              the customers it serves. The SBA has            • There must be a potential for long-
start-up and expansion phases (when            general prohibitions against providing            term success;
eligible) to allow the business time to        financial assistance to businesses              • The owners must be of good character
generate income before it starts making        involved in such activities as lending,           and reputation; and
full loan payments. Balloon payments           speculating, passive investment,                • All loans must be so sound as to
or call provisions are not allowed on any                                                        reasonably assure repayment.
                                               pyramid sales, loan packaging,
7(a) loan. The lender may not charge a         presenting live performances of a               For more information, go to
prepayment penalty if the loan is paid         prurient sexual nature, businesses  

18 — Small Business Resource   SOUTH FLORIDA                                                                   Visit us online:
 What To Take To The Lender                                                                     SPECIAL PURPOSE 7(a) LOAN
     Documentation requirements may              For the Standard, Certified and                PROGRAMS
   vary; contact your lender for the             Preferred methods, the applicant                  The 7(a) program is the most flexible
   information you must supply.                  fills out SBA Form 4, and the lender           of SBA’s lending programs. The agency
   Common requirements include the               completes SBA Form 4-1. When                   has created several variations to the
   following:                                    requests for guarantees are processed          basic 7(a) program to address the
      • Purpose of the loan                      using Express or Advantage methods,            particular financing need of certain
      • History of the business                  the applicant uses more of the regular         small businesses. These special purpose
      • Financial statements for three years     forms of the lender and just has a few         programs are not necessarily for all
        (existing businesses)
      • Schedule of term debts (existing         federal forms to complete. When SBA            businesses but may be very useful
        businesses)                              receives a request that is processed           to some small businesses. They are
      • Aging of accounts receivable and         through Standard or Certified                  generally governed by the same rules,
        payable (existing businesses)            Lender Program procedures, it either           regulations, fees, interest rates, etc. as
      • Projected opening-day balance sheet      reanalyzes or reviews the lender’s             the regular 7(a) loan guaranty. Lenders
        (new businesses)                         eligibility and credit analysis before         can advise you of any variations.
      • Lease details
      • Amount of investment in the business
                                                 deciding to approve or reject. For
        by the owner(s)                          requests processed through Preferred           SBAExpress
      • Projections of income, expenses and      Lender Program or Express programs,               The SBAExpress guaranty is available
        cash flow as well as an explanation of   the lender is delegated the authority to       to lenders as a way to obtain a guaranty
        the assumptions used to develop these    make the credit decision without SBA’s         on smaller loans up to $350,000.
        projections                              concurrences, which helps expedite the         The program authorizes selected,
      • Personal financial statements on the     processing time.                               experienced lenders to use mostly their
        principal owners
      • Resume(s) of the principal owners and        In guaranteeing the loan, the SBA          own forms, analysis and procedures
        managers.                                assures the lender that, in the event the      to process, service and liquidate SBA-
                                                 borrower does not repay the loan, the          guaranteed loans. The SBA guarantees
   How the 7(a) Program Works                    government will reimburse the lending          up to 50 percent of an SBAExpress loan.
      Applicants submit their loan               institution for a portion of its loss. By      Loans under $25,000 do not require
   application to a lender for the initial       providing this guaranty, the SBA is            collateral. The use of loan proceeds is
   review. The lender will generally review      able to help tens of thousands of small        the same as for any basic 7(a) loan. Like
   the credit merits of the request before       businesses every year get financing            most 7(a) loans, maturities are usually
   deciding if they will make the loan           they might not otherwise obtain.               five to seven years for working capital
   themselves or if they will need an SBA            After SBA approval, the lender             and up to 25 years for real estate or
   guaranty. If a guaranty is required,          is notified that its loan has been             equipment. Revolving lines of credit are
   the lender will also review eligibility.      guaranteed. The lender then will               allowed for a maximum of seven years.
   The applicant should be prepared to           work with the applicant to make sure
   complete some additional documents            the terms and conditions are met               Patriot Express and Other Lending
   before the lender sends the request           before closing the loan, disbursing the
   for guaranty to the SBA. Applicants                                                          Programs For Veterans
                                                 funds, and assuming responsibility                The Patriot Express pilot loan
   who feel they need more help with the         for collection and general servicing.
   process should contact their local SBA                                                       initiative is for veterans and members
                                                 The borrower makes monthly loan                of the military community wanting to
   district office or one of SBA’s resource      payments directly to the lender. As with
   partners for assistance.                                                                     establish or expand a small business.
                                                 any loan, the borrower is responsible for      Eligible military community members
      There are several ways a lender            repaying the full amount of the loan in
   can apply for a 7(a) guaranty from                                                           include:
                                                 a timely manner.                                 • Veterans;
   SBA. The main differences between
   these methods are related to the                                                               • Service-disabled veterans;
   documentation the lender provides, the        What the SBA Looks for:                          • Active-duty servicemembers eligible
                                                   • Ability to repay the loan on time from         for the military’s Transition Assistance
   amount of review the SBA conducts,
                                                     the projected operating cash flow;             Program;
   the amount of the loan, and the lender’s        • Owners and operators who are of good         • Reservists and National Guard
   responsibilities in case the loan defaults        character;                                     members;
   and the business’ assets must be                • Feasible business plan;                      • Current spouses of any of the above,
   liquidated. The methods are:                    • Management expertise and                       including any servicemember;
      • Standard 7(a) Guaranty                       commitment necessary for success;            • The widowed spouse of a
      • Certified Lender Program                   • Sufficient funds, including the SBA            servicemember or veteran who died
      • Preferred Lender Program                     guaranteed loan, to operate the                during service or of a service-connected
      • Rural Lender Advantage                       business on a sound financial basis            disability.
      • SBA Express                                  (for new businesses, this includes the
      • Patriot Express
                                                                                                  The Patriot Express loan is offered
                                                     resources to meet start-up expenses        by SBA’s nationwide network of
      • Export Express                               and the initial operating phase);
      • Small Loan Advantage                                                                    private lenders and features the fastest
                                                   • Adequate equity invested in the
      • Community Advantage                          business; and
                                                                                                turnaround time for loan approvals.
                                                   • Sufficient collateral to secure the loan   Loans are available up to $500,000 and
                                                     or all available collateral if the loan    qualify for SBA’s maximum guaranty of
                                                     cannot be fully secured.                   85 percent for loans of $150,000 or less
                                                                                                and 75 percent for loans over $150,000

Visit us online:                                                                SOUTH FLORIDA Small Business Resource —   19
up to $500,000. For loans above                Fifth Third Bank                               The Small Loan Advantage program
$350,000, lenders are required to accept          800-998-3444                             is available to lenders participating in
all available collateral.                                                                  the Preferred Lenders Program. SBA
   The Patriot Express loan can be used        First Bank                                  lenders who are not participating in the
for most business purposes, including                                                      Preferred Lenders Program can contact
start-up, expansion, equipment                 Florida Business Bank                       their local district office to apply.
purchases, working capital, and                   321-253-1555                                The Community Advantage pilot
inventory or business-occupied real-                                                       program opens up 7(a) lending to
estate purchases.                              Florida Shores Bank-Southeast               mission-focused, community-based
   Patriot Express loans feature SBA’s            954-876-2315                             lenders – such as Community
lowest interest rates for business loans,                                                  Development Financial Institutions
generally 2.25 percent to 4.75 percent         Florida Shores Bank-Southwest               (CDFIs), Certified Development
over prime depending upon the size                                                         Companies (CDCs), and microlenders
and maturity of the loan. Your local           Gulfshore Bank                              – that provide technical assistance
SBA district office will have a listing of        813-418-3041                             and economic development support in
Patriot Express lenders in your area.                                                      underserved markets.
More information is available at www.          HSBC Bank USA, N.A.                            More information on both programs is                           Contact any branch                       available at
   Self-employed Reserve or Guard
members with an existing SBA loan can
                                               JPMorgan Chase Bank, N.A.                   CAPLines
                                                  Contact any branch
request from their SBA lender or SBA                                                          The CAPLines program is designed
district office, loan payment deferrals,       Keybank, N.A.                               to help small businesses meet their
interest rate reductions and other relief         Contact any branch                       short-term and cyclical working
after they receive their activation orders.                                                capital needs. The programs can
The SBA also offers special low-interest-      M&I Marshall & Ilsley Bank                  be used to finance seasonal working
rate financing of up to $2 million when           941-795-3050                             capital needs; finance the direct costs
an owner or essential employee is called                                                   of performing certain construction,
                                               Marine Bank & Trust Company                 service and supply contracts; finance the
to active duty through the Military               772-231-6611                             direct cost associated with commercial
Reservist Economic Injury Disaster
                                                                                           and residential construction; finance
Loan program (MREIDL) to help cover            Pilot Bank                                  operating capital; and consolidate
operating costs due to the loss of an             813-349-4543                             short-term debt. SBA provides up to
essential employee called to active duty.                                                  an 85 percent guarantee. There are
                                               PNC Bank, N.S.
                                                                                           four distinct loan programs under the
2011 PATRIOT EXPRESS LENDERS                      Contact any branch
                                                                                           CAPLine umbrella:
                                               Regions Bank                                  • The Contract Loan Program is
1st United Bank                                                                                used to finance material, labor, and
    561-653-3700                                  Contact any branch
                                                                                               overhead needs for a specific contract
Banco Popular North America                    Republic Bank of Florida                        or contracts.
                                                  727-853-0742                               • The Seasonal Line of Credit Program
    Contact any branch
                                                                                               is used to support buildup of inventory,
Bank of America, N.A.                          Southern Commerce Bank                          accounts receivable or labor and
    Contact any branch                            813-621-2080                                 materials above normal usage for
                                                                                               seasonal inventory.
Bankfirst                                      Stearns Bank, N.A.                            • The Builders Line Program provides
    407-654-6599                                  941-366-1931                                 financing for small contractors or
                                                                                               developers to construct or rehabilitate
Branch Banking & Trust Company                 Suntrust Bank                                   residential or commercial property.
    866-666-8592                                  Contact any branch                         • The Working Capital Line is a
                                                                                               revolving line of credit that provides
Busey Bank                                     Superior Financial Group, LLC                   short term working capital.
    239-790-8000                                  925-296-0500

Cit Small Business Lending                     Tampa Bay Federal Credit Union              EXPORT ASSISTANCE
    800-713-4984                                  813-247-4414                               The SBA has several programs to
                                                                                           help existing small businesses wanting
Community Bank of Broward                      Wells Fargo Bank, N.A.                      to export goods and services. A brief
    954-888-9989                                  Contact any branch
                                                                                           description of each can be found below.
Community Bank of the South                    Advantage Loans
    321-452-0420                                 In early 2011, SBA rolled out two         Export Working Capital Program
                                               Advantage loan initiatives aimed              The SBA’s Export Working Capital
Eurobank                                                                                   program (EWCP) assists lenders in
    305-350-1100                               at helping entrepreneurs and small
                                               business owners in underserved              meeting the needs of exporters seeking
Federal Trust Bank                             communities gain access to capital.         short-term export working capital.
    407-323-1833                               Both offer a streamlined loan application   This program enables U.S. exporters
                                               process and the regular 7(a) loan           to obtain loans to fund their direct
                                               guarantee for loans under $250,000.         export costs. The EWCP supports

20 — Small Business Resource   SOUTH FLORIDA                                                                Visit us online:
single transactions or revolving lines       Eligibility of Foreign Buyers                 Collateral Requirements
of credit. The maximum dollar amount           The foreign buyer must be a                  • Collateral for the manufacturing sector
of an export line of credit under this       creditworthy entity and the methods of           typically consists of a first lien on all
program is $5 million. SBA guarantees        payment must be acceptable to the SBA            export-related inventory and export
up to 90 percent of a loan amount or                                                          related accounts receivable.
                                             and the export lender.
$ 4.5 million, whichever is less. Loan                                                      • Collateral for the service sector
                                                                                              typically consists of assignment of
maturities are generally for a term of 12    Use of EWCP Proceeds                             proceeds of export-related contracts
months. The guaranty can be reissued          • To acquire inventory for export or to be
                                                                                              or purchase orders and a first lien on
for an additional 12 months through a           used to manufacture goods for export.
                                                                                              export-related accounts receivable.
new application process. The guaranty         • To pay the manufacturing costs of
                                                                                            • Other collateral may be required.
fee the SBA charges is 0.25 percent of          goods for export.
                                              • To purchase goods or services for
the guaranteed amount of the loan for
                                                export.                                    How to Apply
the initial 12 months. The borrower           • To support standby letters of credit           A small business exporter seeking a
negotiates the interest rate and all other      related to export transactions.            guaranteed EWCP loan must apply to a
fees with the lender. The program offers      • For pre-shipment working capital           lender.
flexible terms, low fees and a quick            directly related to export orders.
processing time. For information, see         • For post-shipment foreign accounts         International Trade Loan Program                        receivable financing.                         The SBA’s International Trade Loan
                                                                                           program (ITL) helps small businesses
Eligibility of Exporter                      Ineligible Use of Proceeds                    engaged or preparing to engage in
  The business must have an operating         • To support the applicant’s domestic        international trade as well as small
history of at least one year – not              sales.
                                                                                           businesses adversely affected by
                                              • To acquire fixed assets or capital goods
necessarily in exporting. The SBA may                                                      competition from imports. This program
                                                for the applicant’s business.
waive this requirement if you have            • To support a sale where the exporter is    allows for a maximum loan amount of
sufficient export trade experience or           not taking title to the goods.             $5 million. The international trade
other managerial experience.                  • To acquire, equip, or rent commercial      loan provides an SBA guarantee up
                                                space overseas.                            to $ 4.5 million for a term loan used
                                              • To serve as a warranty letter of credit.   for the acquisition, construction,
                                                                                           renovation, modernization, improvement
                                                                                           or expansion of long-term fixed assets

Visit us online:                                                           SOUTH FLORIDA Small Business Resource —   21
or the refinancing of an existing loan          participating lenders to make their own         well as the dollar volume of export sales
used for these same purposes. It may            credit decisions. SBA provides a quick          for the previous year.
also be used for working capital or in          processing time, less than 36 hours.
conjunction with any SBA working                                                                U.S. Export Assistance Center
capital loans, including the EWCP. The          Eligibility of Exporter                         (USEAC)
SBA guaranty fee and interest rates are           You must have a business operating               U.S. Export Assistance Centers are
the same as for any standard 7(a) loans.        history of at least one year – not              a network of facilities around the U.S.
                                                necessarily in exporting. The SBA may           staffed by SBA, the U.S. Department of
Eligibility of Exporter                         waive this requirement if you have              Commerce and the Export-Import Bank
  • Applicants must meet the same               sufficient export trade experience or           of the U.S. to provide trade promotion
    eligibility requirements for a 7(a) loan.   other managerial experience.                    and export-finance assistance for small
  • Applicant must establish that the loan                                                      businesses in a single location. The
    will significantly expand or develop        Eligibility of Foreign Buyers                   USEACs also work closely with other
    an export market, or the applicant            The foreign buyer must be a                   federal, state and local international
    has been adversely affected by import
                                                creditworthy entity and the methods of          trade organizations. To find the nearest
    competition, and, in addition, the
    applicant must show that upgrading          payment must be acceptable to the SBA           USEAC, go to
    equipment or facilities will improve its    and the export lender.
    competitive position.                                                                       Regional Manager
  • If eligibility is based on entering or      Use of Proceeds                                 SBA International Trade Program
    expanding export sales, the applicant         • Finance standby letters of credit used      Mary E. Hernandez
    must submit a one or two page                   for either bid or performance bonds;           U.S. Export Assistance Center
    international business plan, including        • Finance export development activities          5835 Blue Lagoon Dr., Ste. 203
    sufficient information to reasonably            such as export marketing and                   Miami, FL 33126
    support the likelihood of expanded              promotional activities, participation          305-526-7425 ext. 21
    export sales.                                   in foreign trade shows, translation of
                                                    product literature for foreign markets,     CERTIFIED DEVELOPMENT
Use of Proceeds
  • For facilities or equipment, including
                                                    and other activities designed to initiate
                                                    or expand the applicant’s export of its     COMPANY LOAN PROGRAM
    purchasing land and building(s);                products/services from the U.S.;            (504 LOANS)
    building new facilities; renovating,          • Provide transaction-specific financing
                                                                                                   The 504 Loan program is an economic
    improving, or expanding existing                for overseas orders;
                                                  • Provide revolving lines of credit for
                                                                                                development program that supports
    facilities; purchasing or reconditioning
                                                    export purposes, the terms of which         American small business growth and
    machinery, equipment and fixtures;
                                                    must not exceed seven years. In             helps communities through business
    and making other improvements that
    will be used within the United States           some instances, as a normal course          expansion and job creation. This SBA
    for producing goods or services.                of business, the borrower may use           program provides long-term, fixed-
  • Refinancing a facility/building is also         portions of revolving lines of credit for   rate, subordinate mortgage financing
    permissible if the original loan on the         domestic purposes, but no less than 70      for acquisition and/or renovation of
    property could have been refinanced             percent of the revolving line to be used    capital assets including land, buildings
    under regular 7(a).                             for export related purposes;                and equipment. Some refinancing is
                                                  • Provide term loans and other financing      also permitted. Most for-profit small
Collateral Requirements                             to enable small business concerns,          businesses are eligible for this program.
                                                    including small business export             The types of businesses excluded from
See pg. 18 for collateral requirements.
                                                    trading companies to develop foreign        7(a) loans (listed previously) are also
                                                    markets; and                                excluded from the 504 loan program.
How to Apply                                      • Acquire, construct, renovate,
    A small business exporter seeking a                                                            Loans are provided through SBA-
                                                    modernize, improve or expand                approved Certified Development
guaranteed loan must apply to an SBA                production facilities or equipment to be
participating lender. Call your local SBA                                                       Companies. CDCs work with banks
                                                    used in the U.S. in the production of
                                                                                                and other lenders to make loans in first
District Office for a list of participating         goods or services to be exported from
                                                                                                position on reasonable terms, helping
lenders.                                            the U.S.
                                                                                                lenders retain growing customers and
                                                                                                provide Community Redevelopment Act
Export Express                                  Ineligible Use of Proceeds
   The Export Express program is                  Proceeds may not be used to finance
                                                                                                   The SBA 504 loan is distinguished
designed to help SBA meet the export            overseas operations, other than those           from the SBA 7(a) loan program in these
financing needs of small businesses. It         strictly associated with the marketing          ways:
is subject to the same loan processing,         and/or distribution of products/services        The maximum debenture, or long-term
making, closing, servicing, and                 exported from the U.S.                          loan, is:
liquidation requirements as well as the                                                           • $5 million for businesses that create a
same maturity terms, interest rates, and        How to Apply                                        certain number of jobs or improve the
applicable fees as for other SBA loans            The application process is the same for           local economy;
except as noted below. The total Export         the SBAExpress, except the applicant              • $5 million for businesses that meet a
Express loan cannot exceed $500,000.            must demonstrate that loan proceeds                 specific public policy goal, including
                                                will enable it to enter a new export                veterans; and
SBA guarantees 90 percent for loans
                                                market or expand an existing export               • $5.5 million for manufacturers and
of $350,000 and under and 75 percent                                                                energy public policy projects.
for loans greater than $350,000 up to           market. The applicant must submit to
the maximum of $500,000. SBA allows             the lender a plan that includes projected
                                                export sales for the upcoming year as

22 — Small Business Resource   SOUTH FLORIDA                                                                     Visit us online:
  Recent additions to the program allow              percent SBA-guaranteed debenture)             The SBA’s 504 certified development
$5.5 million for each project that reduces           finances up to 40 percent of the project   companies serve their communities by
the borrower’s energy consumption by                 costs secured with a junior lien. The      financing business expansion needs.
at least 10 percent; and $5.5 million for            borrower provides the balance of the
                                                     project costs.
                                                                                                Their professional staffs work directly
each project that generates renewable                                                           with borrowers to tailor a financing
                                                 •   Fixed interest rate on SBA loan. SBA
energy fuels, such as biodiesel or ethanol           guarantees the debenture 100 percent.      package that meets program guidelines
production. Projects eligible for up to              Debentures are sold in pools monthly       and the credit capacity of the borrower’s
$5.5 million under one of these two                  to private investors. This low, fixed      business. For information, visit www.sba.
requirements do not have to meet the                 rate is then passed on to the borrower     gov/504.
job creation or retention requirement, so            and establishes the basis for the loan
long as the CDC portfolio average is at              rate.                                      Florida Business Development
least $65,000.                                   •   All project-related costs can be           Corporation
   • Eligible project costs are limited              financed, including acquisition (land      ALP/PCLP
     to long-term, fixed assets such as              and building, land and construction of        6801 Lake Worth Rd., Ste. 209
     land and building (occupied by the              building, renovations, machinery and
                                                                                                   Lake Worth, FL 33467
     borrower) and substantial machinery             equipment) and soft costs, such as title
                                                                                                   Contact: Emmanuel J. Manos, President
     and equipment. Working capital is not           insurance and appraisals. Some closing
                                                                                                   561-433-0233 • 561-433-8545 Fax
     an eligible use of proceeds.                    costs may be financed.
   • Most borrowers are required to make         •   Collateral is typically a subordinate
     an injection (borrower contribution)            lien on the assets financed; allows
     of just 10 percent which allows                 other assets to be free of liens and
                                                                                                Florida First Capital Finance Corporation
     the business to conserve valuable               available to secure other needed
     operating capital. A further injection          financing.
                                                                                                   1351 N. Gadsden St.
     of 5 percent is needed if the business      •   Long-term real estate loans are up to         Tallahassee, FL 32303
     is a start-up or new (less than 2               20-year term, heavy equipment 10- or          Contact: Todd G. Kocourek, CEO
     years old), and a further injection of 5        20-year term and are self-amortizing.         888-320-5504 • 850-681-3699 Fax
     percent is also required if the primary    Businesses that receive 504 loans are:   
     collateral will be a single purpose         • Small — net worth under $15 million,  
     building.                                     net profit after taxes under $5 million,
   • Two-tiered project financing: A lender        or meet other SBA size standards.
     finances approximately 50 percent of        • Organized for-profit.
     the project cost and receives a first       • Most types of business — retail,
     lien on the project assets (but no SBA        service, wholesale or manufacturing.
     guaranty); A CDC (backed by a 100

Visit us online:                                                                SOUTH FLORIDA Small Business Resource —   23
Gulfcoast Business Finance, Inc.
                                                    The program also provides business
                                                 based training and technical assistance
                                                                                                  SMALL BUSINESS
    227 Second Ave. N.
    St. Petersburg, FL 33701
                                                 to microborrowers and potential                  INVESTMENT COMPANY
    Contact: Ron Reuss, President
    800-850-2504 • 727-822-2504 Fax
                                                 microborrowers to help them be
                                                 successful at starting or growing their          PROGRAM                      businesses. Such training and technical             There are a variety of alternatives to                         assistance may include general business          bank financing for small businesses. The
                                                 education, assistance with business              Small Business Investment Company
Independent Development Services                 planning industry-specific training,             (SBIC) program fills the gap between
Corporation                                                                                       the availability of private capital and
ALP                                              and other types of training support.
                                                 Entrepreneurs and small business                 the needs of small businesses for growth
    8280 College Pkwy., Ste. 204
                                                 owners interested in small amounts of            capital. Licensed and regulated by the
    Fort Myers, FL 33919-4113
    Contact: Thomas Wallace, President                                                            SBA, SBICs are privately owned and
                                                 business financing should contact one
    239-652-5588 • 239-652-9988 Fax                                                               managed investment funds that make
                                                 from the list below or go to                                                                             capital available to qualifying U.S.
                                                                                                                      small businesses at attractive rates.
                                                 Central Florida Community Development            The funds raise private capital and
Tampa Bay Economic Development                   Corporation                                      can receive SBA-guaranteed leverage
Corporation (TEDCO)
    7402 N. 56th St., Ste. 425
                                                    847 Orange Ave.                               up to 3x private capital paid-in, with
                                                    Daytona Beach, FL 32114                       a leverage ceiling of $150 million per
    Tampa, FL 33617
                                                    Contact: Gerald Chester                       SBIC and $225 million for two or more
    Contact: Ken Hornung, President
                                                    877-258-7520 • 386-238-3428 Fax
    813-984-8105 • 813-914-8810 Fax                                                               licenses under common control. Licensed
                                                                                                                 SBICs are for-profit investment firms
                                                    Counties Served: Brevard, Volusia and                                                                            whose incentive is to share in the
                                                    St. Johns.
                                                                                                  success of a small business. The SBIC
Business Development Corporation of              Partners For Self Employment, Inc.
Northeast Florida                                                                                 program provides funding for a broad
                                                    3000 Biscayne Blvd., Ste. 215                 range of industries. Some SBICs invest
    644 Cesery Blvd., Ste. 100
                                                    Miami, FL 33137                               in a particular field or industry while
    Jacksonville, Fl 32211
                                                    Contact: Cornell Crews, Program Director
    Contact: Steven E. Mahaven, Exec. Director
                                                    305-438-1407 ext. 215 • 305-438-1411          others invest more generally. For more
    904-724-7455 • 904-724-7457 Fax                                                               information, visit
Essential Capital Finance, Inc.
                                                    Counties Served: Broward, Miami-Dade and
                                                    Monroe.                                       SMALL BUSINESS
                                                                                                  INNOVATION RESEARCH
    1300 Riverplace Blvd., Ste. 105
    Jacksonville, FL 32207                       The Center for Enterprise Opportunity
    Contact: Cleve Warren, President & CEO
    904-398-9411 • 904-398-4995 Fax
                                                    2200 N. Florida Mango, Ste. 401
                                                    West Palm Beach, FL 33409                     PROGRAM                    561-478-2337 • 561-478-2339 Fax                 The Small Business Innovation
    www.essential                       Contact: Lia Gaines, Executive Director       Research (SBIR) program encourages
                                                                     small businesses to advance their
MICROLOAN PROGRAM                                   Counties Served: Hendry, Indian River,
                                                    Martin, Palm Beach, Okeechobee and
                                                                                                  technical potential from funds
                                                                                                  committed by federal agencies with large
   The Microloan program provides                   St. Lucie.                                    extramural research and development
small loans ranging from under $500                                                               budgets. The SBIR program serves
to $50,000 to women, low-income,                 Minority/Women Business Enterprise               to fund the critical startup and
minority, veteran, and other small               Alliance, Inc.                                   development stages for a technology and
                                                    135 E. Colonial Dr., 2nd Fl.
business owners through a network                   Orlando, FL 32801
                                                                                                  encourages commercialization of the
of approximately 160 intermediaries                 Contact: Shirley A. Walker                    technology, product or service. In turn,
nationwide. Under this program, the                 407-428-5860 • 407-428-5869 Fax               this stimulates the U.S. economy.
SBA makes funds available to nonprofit    
intermediaries that, in turn, make the              Counties Served: Brevard, Orange, Seminole,   SBIR Requirements
                                                    Osceola, Lake, Volusia, Pinellas and Polk.       Small businesses must meet the
small loans directly to entrepreneurs,
                                                                                                  following eligibility criteria to participate
including veterans. Proceeds can be              Black Business Investment Fund of                in the SBIR program.
used for typical business purposes such          Central Florida (BBIF)                             • Be 51 percent owned and controlled by
as working capital, or the purchase of              315 E. Robinson St., Ste. 660                     one or more individuals who are U.S.
furniture, fixtures, machinery, supplies,           08 North Garden Ave.                              citizens or permanent resident aliens
equipment, and inventory. Microloans                Orlando, FL 32601                                 in the U.S. or be a for-profit business
                                                    Contact: Inez Long                                concern that is at least 51 percent
may not be used for the purchase of real            407-649-4780 • 407-649-8688 Fax                   owned and controlled by another
estate. Interest rates are negotiated               Counties Served: Lake, Osceola and Orange.        for-profit business concern that is at
between the borrower and the                                                                          least 51 percent owned and controlled
intermediary. The maximum term for a                                                                  by one or more individuals who are
microloan is 7 years.                                                                                 citizens of, or permanent resident
                                                                                                      aliens in, the U.S.
                                                                                                    • Be for-profit.

24 — Small Business Resource   SOUTH FLORIDA                                                                        Visit us online:
                                                                                               small business/nonprofit research
                                                                                               institution partnerships: Department
                                                                                               of Defense; Department of Energy;
                                                                                               Department of Health and Human
                                                                                               Services; National Aeronautics and
                                                                                               Space Administration; and National
                                                                                               Science Foundation.

                                                                                               SURETY BOND GUARANTEE
                                                                                                  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
                                                                                               all incentives for sureties to bond small
                                                                                               businesses that would otherwise be
                                                                                               unable to obtain bonding. The program
  • Principal researcher must be employed      Non-profit research laboratories                is aimed at small businesses that lack
    by the small business.                     are also instrumental in developing             the working capital or performance
  • Company size cannot exceed 500             high-tech innovations, but frequently           track record necessary to secure bonding
    employees.                                                                                 on a reasonable basis through regular
                                               innovation is confined to the theoretical.
  For more information on the SBIR                                                             commercial channels.
                                               STTR combines the strengths of both
Program visit                                                                   Through this program, the SBA
                                               entities by introducing entrepreneurial
                                                                                               guarantees bid, payment, performance
Participating Agencies                         skills to high-tech research efforts.
                                                                                               and ancillary bonds issued by surety
  Each year, the following eleven              The technologies and products are
                                                                                               companies for individual contracts and
federal departments and agencies are           transferred from the laboratory to the
                                                                                               subcontracts up to $2 million. The
required to reserve 2.5 percent of their       marketplace. The small business profits         SBA reimburses sureties between 70
extramural R&D funds for award to              from the commercialization, which, in           and 90 percent of losses sustained if a
small businesses through the SBIR              turn, stimulates the U.S. economy.              contractor defaults on the contract.
program: Departments of Agriculture;                                                              The SBA has two program options
Commerce; Defense; Education; Energy;          STTR Requirements                               available, the Prior Approval Program
Health and Human Services; Homeland               Small businesses must meet the
                                                                                               (Plan A) and the Preferred Surety Bond
Security; Transportation; Environmental        following eligibility criteria to participate
                                                                                               Program (Plan B). In the Prior Approval
Protection Agency; National Aeronautics        in the STTR program.
                                                                                               Program, SBA guarantees 90 percent
and Space Administration; and National           • Be 51 percent owned and controlled by
                                                   one or more individuals who are U.S.        of surety’s paid losses and expenses on
Science Foundation.                                                                            bonded contracts up to $100,000, and on
                                                   citizens or permanent resident aliens
                                                   in the U.S.                                 bonded contracts greater than $100,000
SMALL BUSINESS                                   • Be for-profit.
                                                 • Principal researcher need not be
                                                                                               that are awarded to socially and
                                                                                               economically disadvantaged concerns,
TECHNOLOGY TRANSFER                                employed by the small business.             HUBZone contractors, and veterans, and
                                                 • Company size cannot exceed 500              service-disabled veteran owned small
                                                   employees. (No size limit for nonprofit     businesses. All other bonds guaranteed
  The Small Business Technology                    research institution).
                                                                                               in the Plan A Program receive an 80
Transfer (STTR) program reserves                                                               percent guarantee. Sureties must obtain
a specific percentage of federal R&D              The nonprofit research institution
                                                                                               SBA’s prior approval for each bond
                                               partner must also meet certain
funding for award to small business and                                                        guarantee issued. Under Plan B, SBA
                                               eligibility criteria:
non-profit research institution partners.        • Be located in the United States and be
                                                                                               guarantees 70 percent, but sureties may
Central to the program is expansion of             one of the following:                       issue, monitor and service bonds without
the public/private sector partnership to         • Nonprofit college or university.            SBA’s prior approval.
include the joint venture opportunities          • Domestic nonprofit research
for small business and the nation’s                organization.
premier nonprofit research institutions.         • Federally funded R&D center.
Small business has long been where
innovation and innovators thrive, but          Participating Agencies
the risk and expense of conducting               Each year the following five Federal
serious R&D efforts can be beyond              departments and agencies are required
the means of many small businesses.            by STTR to reserve 0.3 percent of their
                                               extramural R&D funds for award to

26 — Small Business Resource   SOUTH FLORIDA                                                                   Visit us online:
                                 U.S. Small Business Administration Loan Programs
                                        Information accurate as of 11/10/2011 • All SBA programs and services are provided on a nondiscrinimatory basis.

 Section A                                                         7(a) Loan Program
    Program              Maximum                 Use of                                      Maximum                                     Who Qualifies                Benefit to
                          Amount                Proceeds                Maturity           Interest Rate           Structure                                          Borrowers
Standard 7(a): $5 million to            Expansion/renovation; Depends on use of           SBA sets a          Term loan with one       Must be for-profit &     Business able to
Loan from lender any one business, new construction;            proceeds and ability      maximum rate for payment of principal        meet SBA size            obtain financing which
- not SBA.        including affiliates. purchase land,          to repay. Generally       both variable & and interest (P&I)           standards; show good     otherwise would not
Applicant applies                       buildings, equipment, working capital &           fixed rate loans each month.                 character, credit &      be provided due to
to lender for                           fixtures; lease-hold    machinery &               (discuss with       Interest variable or     management &             term, collateral, equity,
business loan.                          improvements; working equipment loans             lender or local     fixed as negotiated      ability to repay; must   and/or time in business.
Lender applies to                       capital; inventory,     have 5-10 yrs.; real      SBA District Office with lender. Cannot      be an eligible type      Fixed maturity; no
SBA for guaranty                        business acquisition; estate is up to             for current         be revolving.            of business; use         balloons; no
of their proposed                       start-ups & refinancing 25 yrs. Term              information).       SBA charges a            proceeds for eligible    prepayment penalty if
loan.                                   under certain           negotiated with                               Guaranty Fee. **         purpose &                maturity under 15 yrs.
                                        conditions (discuss     lender.                                                                demonstrate that         Established or reaffirm
                                        with lender).                                                                                  financing is not         business relationship
                                                                                                                                       otherwise available.     with a lender.
 International     Same as                Acquire, renovate or Same as                    Same as            Same as Standard          Same as Standard         Same as Standard
 Trade: Long term Standard 7(a).          modernize facilities or Standard 7(a).          Standard 7(a).     7(a). Maximum SBA         7(a) plus businesses     7(a) plus long-term
 financing to help                        equipment used in                                                  guaranty amount for       must be engaged or       financing for fixed
 businesses                               making products or                                                 for working capital       preparing to engage      assets used to
 engaged in                               services for export.                                               is $4 million.            in international trade   produce products or
 exporting or                             Permanent working                                                                            or adversely affected    services for export.
 adversely                                capital & refinance                                                                          by competition from
 impacted by                              debt not structured                                                                          imports.
 imports.                                 with reasonable terms.

 Export Working Same as                   Short-term, working-     Generally one yr. –    Established by      Short term revolving     Same as Standard         Same as Standard
 Capital Program: Standard 7(a).          capital for exporters.   exception can be up    lender. No SBA      line of credit based     7(a) plus must have      7(a) plus provides
 Single transaction                       Can be single trans-     to 3 yrs. to match a   established         on borrowing base        been in business for     working capital to
 or Revolving                             action or revolving.     single transaction     maximums.           or export purchase       at least one year &      American Exporters to
 Working Capital                          Standby Letters of       cycle.                                     orders. Monthly          preparing to engage      perform on export
 lines of credit for                      Credit for export                                                   interest payments;       in or increase           transactions and/or
 exporters.                               purposes.                                                           principal payments       international trade.     finance export
                                                                                                              based on collection                               receivables. Ability to
                                                                                                              of foreign                                        finance Standby
                                                                                                              receivables.                                      Letters of Credit for
                                                                                                                                                                export purposes.
 CAPLines:          Same as              Finances: seasonal     Up to 10 yrs.             Same as             Revolving line of        Same as Standard         Same as Standard
 Four different     Standard 7(a).       working capital needs, except builders           Standard 7(a).      credit with monthly      7(a) plus a business     7(a) plus provides
 Revolving Lines                         direct cost to perform is 5 yrs.                                     interest &principal      that needs the           revolving working
 of Credit, a/k/a                        assignable contracts,                                                payments based           specialized              capital not otherwise
 Seasonal,                               construction costs of                                                on when the              proceeds                 available to perform
 Contract, Builders                      structure for resale,                                                business receives        this program offers.     on an assignable
 & Standard.                             or advances against                                                  the cash for doing                                contract; covers
                                         existing inventory &                                                 the activity the loan                             seasonal needs; build
                                         receivables.                                                         proceeds financed.                                or renovate personal
                                                                                                                                                                or commercial space &
                                                                                                                                                                to obtain funds against
                                                                                                                                                                existing current assets.
                                                                                                                                                                Also structured to
                                                                                                                                                                meet business needs.
 SBAExpress: $350,000.                   Same as a Standard        Same as Standard       Loans $50,000      Same as Standard Same as                           Same as Standard
 Lender approves                         7(a) or may be used       7(a) for term loans,   or less:           7(a) except lender Standard 7(a).                  7(a) plus streamlined
 the loan.                               for a revolving working   revolving lines of     Prime + 6.5%.      has more leeway to                                 process; easy-to-use
                                         capital line of credit.   credit up to 7 yrs.                       structure repayment                                line of credit & allows
                                                                                          Loans over         under their own                                    for a revolving feature
                                                                                          $50,000:           rules.                                             which Standard 7(a)
                                                                                          Prime + 4.5%.                                                         does not.

   ** The SBA charges the lender a guaranty fee based on the loan’s maturity and the dollar amount which is initially guaranteed.
   The lender can pass this expense to the borrower and loan proceeds can be used to reimburse the lender.
   The chart on the bottom of the next page explains the Agency’s guaranty fee charges.

Visit us online:                                                                                                 SOUTH FLORIDA Small Business Resource —        25
U.S. Small Business Administration Loan Programs, continued                                                                                                                              Information accurate as of 11/10/2011

 Section B                                                                           7(a) Loans, continued
                        Maximum                        Use of                                                       Maximum                                                                             Benefit to
   Program               Amount                       Proceeds                           Maturity                 Interest Rate                    Structure                  Who Qualifies             Borrowers
Export Express: $500,000.                      Same as SBA Express Same as                                        Same as                       Same as                      Same as SBA            Same as SBA Express
Lender approves                                plus for Standby      SBA Express.                                 SBA Express.                  SBA Express.                 Express plus loan plus provides lenders
the loan.                                      Letters of Credit for                                                                                                         proceeds must be with a higher
                                               export purposes. Debt                                                                                                         used to support        percentage guaranty
                                               refinance is not                                                                                                              export development which can encourage
                                               allowed.                                                                                                                      activity.              them to make more
                                                                                                                                                                                                    loans to finance export
                                                                                                                                                                                                    development activities
                                                                                                                                                                                                    of small businesses.
                                                                                                                                                                                                    Standby Letters of
                                                                                                                                                                                                    Credit are also
Patriot Express: $500,000.                      Same as                             Same as                        Same as                      Same as                      Same as Standard Same as SBA Express
Lender approves                                 Standard 7(a).                      Standard 7(a).                 Standard 7(a).               SBA Express.                 7(a) plus must be      plus provides lenders
the loan.                                                                                                                                                                    owned & controlled with a higher
                                                                                                                                                                             by one or more of      percentage of guaranty
                                                                                                                                                                             the following groups which can encourage
                                                                                                                                                                             equaling at least      them to make more
                                                                                                                                                                             51% total ownership: loans to qualified
                                                                                                                                                                             veteran, active-duty businesses.
                                                                                                                                                                             military, reservist or
                                                                                                                                                                             National Guard
                                                                                                                                                                             member or spouse of
                                                                                                                                                                             any of these groups,
                                                                                                                                                                             or widowed spouse
                                                                                                                                                                             of service member or
                                                                                                                                                                             veteran who died
                                                                                                                                                                             during service or of
Community         $250,000.                    Same as Standard 7(a) Same as                                      Same as                      Allows mission-                Loan eligibility                Borrowers in under-
Advantage:                                     except cannot be used Standard 7(a).                               Standard 7(a)                oriented lenders               requirements are                served markets get
Alternative                                    to refinance loans                                                 except allowable             focused on                     same as for                     more choices on the
Lenders assisting                              made by or guaranteed                                              “Spread” is + 4%             economic                       Standard 7(a) loans,            types of lenders who
businesses                                     by the Dept. of                                                    over the base                development in                 but the business                can provide them
located in areas                               Agriculture or loans by                                            rate.                        underserved markets            should be located in            financing if their
with high needs.                               SBA Micro-Lenders                                                                               to apply for 7(a)              an underserved                  financing needs an
                                               using their SBA                                                                                 guaranty on loan               market.                         SBA guaranty & the
                                               intermediary loan.                                                                              they propose to                                                technical assistance
                                                                                                                                               make to an eligible                                            needs of the applicant
                                                                                                                                               small business                                                 are assessed by the
                                                                                       Non 7(a) Loans
504 Loans: Fixed SBA portion up to             For the acquisition of Either 10 or 20 yr.                         Check with local Financing from                            For profit businesses            Fees under 3 percent;
Asset Project    $5.0 million.                 long-term fixed-assets, term on the SBA/                           SBA District       1. CDC Certified                        that do not exceed               long-term fixed rate;
Financing                                      refinancing long-term CDC portion.                                 Office for current    Development                          $15.0 million in                 low down payment;
provided from                                  fixed asset debt under                                             information.          Company,                             tangible net worth &             full amortization; no
three sources.                                 certain conditions, and                                                               2. 3rd Party                            do not have an                   balloons.
                                               working capital on a                                                                     Lenders,                             average net income
                                               limited basis.                                                                        3. Applicant.                           over $5 million for the
                                                                                                                                                                             past 2 yrs.
 Micro-Loans          $50,000 total to         Furniture, fixtures, Shortest term                                 Loan made thru              Loans thru nonprofit            Same as 7(a) –                  Direct loans from non-
                      one small                supplies, inventory, possible, not to                              intermediary                lending                         plus loans can be               profit intermediary
                      business                 equipment, & working exceed 6 yrs.                                 lender – see SBA            organizations;                  made to nonprofit               lenders; fixed-rate
                      borrower.                capital.                                                           District Offices for        technical assistance            daycare businesses.             financing; very small
                                                                                                                  list of locally             also provided.                                                  loan amounts;
                                                                                                                  available inter-                                                                            technical assistance
                                                                                                                  mediary lenders.                                                                            available.
                                Gross Size of Loan                                                               Fees                                                                                     Notes
7(a) Guaranty                   Loans of $150,000 or less (See Note 1)........................ ........2% of guaranteed portion, Lender is authorized to retain..............Maturities that exceed 12 months
                                $150,001 to $700,000 ...................................................... ......3% of guaranteed portion.................................................................Maturities that exceed 12 months
Fee Reference                   $700,001 to $5,000,000 (See Note 2) ............................ ......3.5% of guaranteed portion up to $1,000,000 PLUS 3.75% of.....Maturities that exceed 12 months
    Chart                                                                                                         the guaranteed portion over $1,000,000
                                Short Term Loans – up to $5 million ......................................0.25% of the guaranteed portion .....................................................Maturities of 12 months or less
NOTE 1: The guaranty fee on a $100,000 loan with an 85% guaranty would be 2% of $85,000 or $1,700, of which the lender would retain $425.
NOTE 2: The guaranty fee on a $2,000,000 loan with a 75% guaranty ($1.5 million guaranteed portion) would be, 3.5% of $1,000,000 ($35,000) PLUS 3.75% of $500,000 ($18,750), for a total of $53,750

28 — Small Business Resource         SOUTH FLORIDA                                                                                                                                             Visit us online:
The U.S. Small Business Administration provides           The SBA 100 isn’t just businesses that have received
small businesses with the tools and the resources         SBA loans. In 1985, Qualcomm was a small company
they need to grow and create jobs. This includes          proving R&D to the federal government, but not
access to capital, opportunities in government            for long. In 1989, the company received funding
contracting, and counseling and training—otherwise        from the Small Business Innovation Research (SBIR)
known as the “Three C’s” of capital, contracting, and     program to hire engineers and begin developing
counseling. Since its inception in 1953, the SBA has      microchips. This funding gave them the freedom
used the Three C’s to help millions of businesses,        to innovate, explore, and transition from contract
from shops on Main Street to high-growth, high-           research to consumer applications. In twenty years,
impact firms.                                             Qualcomm has gone from 35 people to a global
                                                          workforce of 16,000 employees. The chip department
In August, 2011, the SBA announced the SBA 100.           initially funded by the SBIR program now makes up
These one hundred businesses all used SBA products        two-thirds of the company’s revenue.
to grow, and since then, each one has created at least
one hundred jobs—no small feat for a small business.      There are also businesses that have benefited
You can find them at                     from SBA’s support for small business contracting.
                                                          Missouri’s World Wide Technology (WWT) enrolled
The SBA 100 is a cross section of the diverse array       in SBA’s 8(a) Business Development program in
of businesses that stand to benefit from SBA              1992. The 8(a) program gave the company the
products. Some of the businesses in the SBA 100           tools it needed to compete for and win government
have grown to become household names. Others              contracts. Now, WWT has over 1,300 employees in
may not be familiar, but they are still cornerstones      48 states and six countries, and its sales exceed
of their communities and drivers of job creation.         $68 million.
There are businesses in a variety of industries, from
construction, to food and beverage, to manufacturing.     The fact is, the SBA has something to offer, no matter
There are Main Street businesses—the shops and            what kind of support you need or what kind of
restaurants that we visit every day—as well as high-      business you own. Whether you’re just starting out,
growth, high-impact firms that are transforming our       or you have been in business for decades, the SBA
economy. Each business received SBA support, in           can help you take your business to the next level. If
the form of capital, contracting, or counseling, before   you own a restaurant on Main Street, you can get a
going on to create at least 100 jobs.                     loan to expand. If you own a high-growth firm, you
                                                          can get the investment capital you need. If you are
A few businesses in the SBA 100 worked with               looking to get into government contracting, SBA can
the SBA decades ago. For example, Columbia                help you get started. And for every business, SBA
Sportswear used an SBA loan in 1970 to increase           counselors are standing by to help you along the way.
its production capacity. At the time, it had forty
employees. Today Columbia Sportswear has over             This Resource Guide is a great place to learn more.
3,000 employees and generates over $1 billion dollars     In here, you can find details on all of SBA’s programs,
in revenue. Hard work and a little help from the SBA      from loans and capital, to contracting and counseling.
has made Columbia Sportswear into a global leader         You can also find SBA online at
in outdoor apparel.                                       SBA recently revamped its website, making the
                                                          information and resources you need much easier to
Meanwhile, one of the youngest companies in the           find. Meanwhile, the SBA online Community, which
SBA 100 is the Boathouse at Rockett’s Landing in          you can find at, puts the advice

Richmond, Virginia. Owner Kevin Healy got an SBA          of thousands of small business owners like you at
7(a) loan in 2009 to renovate an old power plant on       your fingertips. You can also visit
the James River to open up his second restaurant. He to find your SBA district office
said the process was “quick, easy and painless and        or local resource partner.
done within approximately 60 days.” His business
has been growing steadily for the past two years, and     Thanks for reading, and we’ll see you soon.
the Boathouse at Rockett’s Landing now employs
over 100 people.

Visit us online:                                            SOUTH FLORIDA Small Business Resource —   29
           S T O R Y            The Fresh Diet — SBA 100
                                               said Zalmi. “They would call and ask       Fresh Diet and NimDiet brands from
                                               for shrimp and pork, but we would          their Toronto kitchen. That year, the
                                               simply tell them, ‘it’s not good for you   company achieved revenues of $17.7
                                               and it’s not on the diet.’ ”               million. During their first year of
                                                                                          eligibility, in 2010, The Fresh Diet
                                               By early 2007, their client base grew      ranked #177 on Inc. Magazine’s list
                                               from 13 to over 100. Revenues were         of the 500 fastest growing companies.
                                               over $1 million and the company            Today, the company employs 220
                                               employed 7 people.                         people and an additional 110 drivers.

                                               In mid-2007 they had an opportunity to     “What keeps me up at night is
                                               buy a similar company with very small      worrying about the safety of our many
                                               operations in New York and Chicago.        drivers on the road,” said Zalmi.
    It was November 2005 and 25-year-old       The asking price was $1.2 million.         When asked to what he attributes his
    Zalmi Duchman was talking on the           When Zalmi told his parents about it,      explosive growth, he said, “One thing
    phone with his high school friend Yosef    his father said, “You’re crazy” and his    is technology. There are a few other
    Schwartz. Yosef, a Le Cordon Bleu          mother said, “There’s no way you’re        companies across the country doing
    trained chef, was living in Los Angeles    getting any money.”                        what we do, but they have never been
    and had just been asked if he wanted                                                  able to grow their client base beyond
    to launch a business delivering freshly After weeks of looking and talking            100-- probably because they don’t have
    prepared kosher meals based on The      to his banker and his friends, he             the technology to support massive
    Zone Diet to homes in the Los Angeles   was unable to find anyone willing             growth.”
    area.                                   to lend him the money to make the
                                            acquisitions. The broker handling             Always tech-savvy, Zalmi worked for
    Thinking it a great idea, Zalmi began   the sale told him to research SBA-            an internet company when he was
    researching online to see if anyone     guaranteed loans. Zalmi did and               just 18 years old. One month after
    was already doing it in Florida. He     ultimately began working with PNC             starting his business, he hired the
    couldn’t find anyone offering kosher    Bank. He mortgaged his condo for              person who would become his Chief
    food. The more he thought about the     the $200,000 in cash he would need            Technology Officer and together they
    idea, the more he realized offering     as a down payment and, at the end of          built a comprehensive, fully integrated
    kosher food wasn’t a key component to 2007, he closed on an SBA 7(a) loan for         computer system that tracks virtually
    the business. And, although it wasn’t a $900,000 to purchase the company in           every aspect of his business. “I can run
    new concept, Zalmi believed he could do New York.                                     my business from any computer or my
    it better than anyone else.                                                           iPad from virtually anywhere in the
                                            In 2008, Zalmi out-sourced the cooking        world,” says Zalmi.
    So later that night, he incorporated    for his Miami, New York and Chicago
    his company online and has never        operations to local catering companies        In addition to his regular clients, Zalmi
    looked back. Within 6 weeks he had      and launched a forth location in Los          also delivers Meals on Wheels to 2,700
    13 clients. His wife did the cooking    Angeles. Revenues by the end of 2008          low-income seniors in the New York
    from their home and he delivered the    reached $5 million.                           metropolitan area. Says Zalmi, “We’re
    food after work. Soon, his friend Yosef                                               probably losing money on that effort,
    moved from Los Angeles to Florida and The next year, The Fresh Diet’s client-         but I’m glad I can offer nutritious, high-
    became his partner.                     base had grown enough to support              quality food to people in need. It’s a
                                            their own kitchens and they began             good service – we’re happy to do it.”
    The Fresh Diet delivers three freshly   taking back their cooking operations.
    prepared meals and two snacks directly Later, they purchased a competitor             The Fresh Diet operates kitchens
    to customer doors each day. The menu, in Philadelphia with the help of a              in Brooklyn, Chicago, Dallas, Los
    based on The Zone Diet concept of       second SBA 7a loan for $225,000 with          Angeles, Miami and Toronto. The latest
    40% carbohydrates, 30% proteins and     an additional $75,000 line of credit.         launches for the company include The
    30% fats, supports healthy weight loss Owning the New York kitchen made it            Fresh Diet kosher food truck in New
    through calorie control and proper      possible for the company to capitalize        York City, The Fresh Diet Grab-n-Go
    nutritional balance.                    on the economies of scale.                    store in North Miami, Florida and a
                                                                                          new division, The Kosher Fresh Diet
    Financing the business on credit cards,    By the beginning of 2010, The Fresh        which operates two kitchens in Miami
    he quickly outgrew his own kitchen,        Diet was operating 5 kitchens in           and Brooklyn.
    then a rented house, and finally, rented   Miami, New York, Chicago, Los
    the kitchen of a local synagogue. “When    Angeles and Houston, delivering fresh,     Says Zalmi “The SBA loan program
    we cooked out of the synagogue, we had     healthy food to clients in 14 states.      and PNC Bank took a chance on me
    to be kosher. My clients were eating       They also purchased NimDiet in             when no one else would. I am very
    kosher food and didn’t even know it,”      Toronto and today operate both The         grateful.” He is successful, too.

30 — Small Business Resource   SOUTH FLORIDA                                                                 Visit us online:
                                        Applying for Government Contracts
                                                                                           from at least two responsible small
                                                                                           businesses, and if awards will be made
                                                                                           at fair market prices, the acquisition is
                                                                                           reserved exclusively for small business.
                                                                                           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 specific kinds of
                                                                                           small businesses and industries. For
                                                                                           R&D small business set-asides, there
                                                                                           must be a reasonable expectation of
   The U.S. government is the largest        The business with the best proposal in
                                                                                           obtaining from small businesses the
single purchaser of goods and services       terms of technical content, price and
                                                                                           best scientific and technological sources
in the world, buying everything from         other factors generally wins the contract.
                                                                                           consistent with the demands of the
armored tanks to paper clips. Every
                                             Types of Contracts                            proposed acquisition. For small business
year, the federal government awards
                                                Firm fixed price contracts place the       set-asides other than for construction
more than $500 billion in contracts, and
                                             responsibility for the costs and risk of      services, any business proposing to
a significant share of those contracts are
                                             loss on the contractor. Firm fixed price      furnish a product that it did not itself
specifically allotted to small businesses.
                                             contracts do not permit any adjustment        manufacture must furnish the product
   The SBA works with agencies
                                             on the basis of the contractor’s costs        of a small business manufacturer
to award at least 23 percent of all                                                        unless the SBA has granted either a
prime government contracts to small          during the performance of the contract.
                                             This type of contract is used in all sealed   waiver or exception to this requirement.
businesses, with specific statutory goals                                                  In industries where the SBA finds
for small disadvantaged businesses,          bid and some negotiated procurements.
                                                Cost reimbursement contracts provide       that there are no small business
businesses that are women-owned                                                            manufacturers, it may issue a waiver
or service-disabled veteran-owned,           for the payment of allowable costs
                                             incurred by the contractor, to the extent     to the non-manufacturer rule. Waivers
or businesses that are located in                                                          permit small businesses to provide any
historically underutilized business zones    stated in the contract. The contract
                                             establishes a ceiling price, above which      domestic firm’s product.
   The agency ensures that small             a contractor may not exceed without the       South Florida District Office
businesses have access to long-lasting       approval of the contracting officer. Cost     Procurement Center Representative
development opportunities, which             reimbursement contracts are used in           Government Contracting, Area III
means working with small businesses          research contracts that have commercial
to help them stay competitive, as            applicability.                                Scott Nirk
well as encouraging federal agencies            Some contracts do not fit neatly              100 S. Biscayne Blvd., 7th Fl.
to award more contracts to small             into these two categories, such as               Miami, FL 33131
                                             time and material contracts (prices for          305-536-5521 ext. 158
businesses. The SBA features outreach
                                             hourly wages are fixed but the hours   
programs, matchmaking events, and
online training opportunities; and helps     are estimated) and letter contracts
                                             (authorizes a contractor to begin work        Subcontracting
agencies identify opportunities for small                                                     Subcontracting opportunities are
businesses.                                  on an urgent requirement).
                                                                                           a great resource for small businesses,
                                             Small Business Set-Asides                     especially to those not ready to bid as
HOW GOVERNMENT                                  A “set-aside” for small businesses         prime contractors. Experience gained
                                                                                           from subcontracting with a federal
CONTRACTING WORKS                            reserves an acquisition exclusively for
                                             small business participation. There           prime contractor can better prepare
Sealed bidding vs. Negotiation               are two ways in which set-asides can          businesses to bid for prime contracts.
   There are two methods the                 be determined. First, if an acquisition          Current regulations stipulate for
government uses to purchase goods            of goods or services has an anticipated       contracts offering subcontracting
and services, sealed bidding and             dollar value of at least $3,000 but not       opportunities over $650,000 for goods
negotiation. The first method, sealed        exceeding $150,000, it is automatically       and services, or $1.5 million for
bidding, involves issuing an invitation      reserved for small businesses. The            construction, large business prime
for bid by a procuring agency. Under         acquisition will be set aside only if the     contractors must offer maximum
the sealed bidding method, a contract        contracting officer determines there          practicable subcontracting opportunities
is usually awarded to the lowest priced      are two or more responsible small             to small businesses. Large business
bidder that can meet the quantity,           businesses that are competitive in            prime contractors must submit a
quality and delivery requirements of         terms of market prices, quality and           subcontracting plan describing how they
the procurement. The second method,          delivery. Second, if an acquisition of        will successfully subcontract to small
negotiation, involves issuing a request      goods or services is more than $150,000,      businesses.
for proposal or request for quotation.       and if it’s likely offers will be obtained

Visit us online:                                                           SOUTH FLORIDA Small Business Resource —   31
                                                                                               • Its principal office must be located
                                                                                                 within an “Historically Underutilized
  What You Should Know About Your Business                                                       Business Zone,” which includes lands
                                                                                                 considered “Indian Country” and
     To be eligible to bid on a federal        3. Do you fall under a specific                   military facilities closed by the Base
  contract, you must know your                 certification?                                    Realignment and Closure Act
  business. Answer the following three            Under the umbrella of “small                 • At least 35 percent of its employees
                                               business,” SBA has outlined several               must reside in a HUBZone.
                                                                                                 Existing businesses that choose to
  1. Are you a small business?                 specific certifications that businesses
                                                                                                 move to qualified areas are eligible
     Is your small business:                   may fall under. These certifications are
                                                                                                 to apply for certification. To fulfill
    • Organized for profit?                    divided into two categories:                      the requirement that 35 percent of
    • Located in the U.S.?                     SBA-Certified and Self-Certified.                 a HUBZone firm’s employees reside
    • Operated primarily within the U.S.          The SBA-Certified Programs were                in a HUBZone, employees must live
      or making a significant contribution     created to assist specific businesses             in a primary residence at a place for
      to the U.S. economy through              in securing federal contracts and                 at least 180 days, or as a currently
      payment of taxes or use of American      therefore can only be issued by SBA               registered voter, and with intent to live
      products, materials, or labor?           administrators. For the Self-Certified            there indefinitely.
    • Independently owned and operated?        Programs, you can determine for                 SBA is responsible for:
    • Not dominant in the field of             yourself if your business meets the             • Determining whether or not individual
      operation in which it is bidding for     requirements by referring to the                  concerns are qualified HUBZone small
      government contracts?
                                               Federal Acquisition Regulations (FAR).            business concerns;
    • A sole proprietorship, partnership,
                                                  Just as Congress has given                   • Maintaining a list of qualified
      corporation, or any other legal form?
                                               federal agencies a goal of procuring              HUBZone small business concerns
     If the first six criteria apply to your                                                     for use by acquisition agencies in
                                               23 percent of federal contracts from
  business, ask yourself the second                                                              awarding contracts under the program;
                                               small businesses, so too must federal
  important question to find out if                                                            • Adjudicating protests and appeals
                                               agencies meet specific contracting goals
  your business meets size standard                                                              of eligibility to receive HUBZone
                                               for other categories of small firms.
  requirements.                                                                                  contracts.
                                               These goals are:
  2. What is the size standard for your                                                        For additional information, visit
                                                 • 5 percent of contracts go to Small
  business?                                        Disadvantaged Businesses        
     Size standards are used to                  • 5 percent go to Women-Owned Small
  determine whether a business is small
  or “other than small.” Size standards
                                                 • 3 percent go to Service-Disabled          8(a) BUSINESS DEVELOPMENT
  vary depending upon the industry. To
  determine the size standard for your
                                                   Veteran-Owned Small Businesses
                                                 • 3 percent go to HUBZone Small
  business, you will need a NAICS code.            Businesses
                                                                                                The 8(a) Business Development
  Every federal agency uses these codes           Federal agencies have a strong             program is a nine year program
  when considering your business. To           incentive to fulfill these contracting        established to assist eligible socially and
  determine your NAICS code, go to             goals. You should apply for those             economically disadvantaged individuals               SBA-Certified and Self-Certified              develop and grow their businesses.
     Some SBA programs require their           programs for which you qualify to take        Business development assistance
  own unique size standards. To find out       advantage of contracting opportunities.       includes one-to-one counseling, training
  more about these requirements and                                                          workshops, and other management and
  other size standard information, go to                                                     technical guidance. There is a statutory
                                                                                             requirement that small disadvantaged
                                                                                             business concerns be awarded not less
   To find subcontracting opportunities,       contracts and sole source contracts, as       than 5 percent of the total value of all
a list of Federal prime contractors is         well as a price evaluation preference         prime contract awards. All firms that
available through SBA’s Subcontracting         in full-and-open contract competitions.       become eligible for SBA’s 8(a) business
Directory at and www.              There is a statutory requirement that         development assistance are also Research the list of prime            HUBZone small business concerns be            considered small disadvantaged business
contractors and determine which are            awarded not less than 3 percent of the        concerns for federal contracting.
best suited for your business. Develop                                                       To be eligible for the 8(a) Business
                                               total value of all prime contract awards.
a marketing strategy, and then contact                                                       Development program, a business must
                                               The HUBZone program also establishes
the Small Business Liaison Officer                                                           meet the following criteria:
                                               preference for award of federal contracts       • It must be a small business by SBA
listed for each prime to schedule an           to small businesses in these areas. To            size standards;
                                               qualify for the program, a business             • It must be owned (at least 51 percent)
                                               must meet the following criteria:
                                                                                                 by one or more individuals who
                                                 • It must be a small business by SBA            qualify as socially and economically

                                                   size standards                                disadvantaged, and who are US
                                                 • It must be owned and controlled at            citizens of good character;

                                                   least 51 percent by U.S. citizens, or a     • It must be controlled, managed, and
                                                   Community Development Corporation,            operated by one or more individuals
  The HUBZone program helps small                  an agricultural cooperative, or an            who qualify as disadvantaged, and;
businesses located in distressed urban             Indian tribe                                • It must demonstrate potential for
and rural communities, known as                                                                  success (generally by being in business
Historically Underutilized Business                                                              for at least two full years) before
Zones, gain access to federal set-aside

32 — Small Business Resource   SOUTH FLORIDA                                                                  Visit us online:
   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 Pacific 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
   Firms owned by Alaska Native
Corporations, Indian Tribes, Native
Hawaiian Organizations, and
Community Development Corporations            the 8(a) Business Development program          To determine your eligibility,
can also apply to the SBA for 8(a)            are automatically certified as an SDB.       contact your local veterans business
business development assistance.              To self-certify, firms should update         development officer, visit the
   So that approved firms can obtain          their Central Contractor Registration        various program websites, or contact
training, counseling, and business            (CCR) profiles and their Online              SBA’s Office of Veterans Business
development assistance, SBA designates        Representations and Certifications           Development at
a staff person at a local SBA District        Application (ORCA) profiles, at
Office - geographically near the business. and,   WOMEN-OWNED SMALL
                                                                                           BUSINESS FEDERAL CONTRACT
SBA is responsible for:                       making sure that both profiles reflect
   • Determining whether a business           their SDB status.
     qualifies for the 8(a) Business                                                       PROGRAM
     Development program
   • Determining whether a business           SERVICE-DISABLED VETERAN-                       On October 7, 2010, the SBA
     continues to qualify, during the nine-   OWNED SMALL BUSINESS                         published a final rule effective February
                                                                                           4, 2011, aimed at expanding federal
     year term.
                                                 The Service-Disabled Veteran-             contracting opportunities for women-
   • Approving Mentor/Protégé agreements
     between 8(a) firms and large             Owned Small Business (SDVOSB)                owned small businesses. The Women-
     businesses.                              program has a federal government-wide        Owned Small Business Federal Contract
   For additional information, visit          goal of awarding at least 3 percent          program authorizes contracting officers                               of prime and subcontracting dollars          to set aside certain federal contracts for
                                              to Service-Disabled Veteran-Owned            eligible women-owned businesses and
SMALL DISADVANTAGED                           Small Businesses each year. Large
                                              prime contractors must also establish a
                                                                                           economically disadvantaged women-
BUSINESS                                      subcontracting goal for Veteran-
                                                                                           owned small businesses.
                                                                                              To be eligible, a firm must be at least
   A Small Disadvantaged Business             Owned Small Businesses in their              51 percent owned and controlled by one
(SDB) is defined as a small business          Subcontracting Plans. These                  or more women. The women must be
that is at least 51 percent owned and         subcontracting goals are reviewed at         U.S. citizens. The firm must be “small”
controlled by one or more individuals         time of proposal by both the contracting     in its primary industry in accordance
who are socially and economically             officer and SBA prior to the award of a      with SBA’s size standards for that
disadvantaged.                                contract.                                    industry. To be deemed “economically
   There is a federal government-wide            When a business’s SDVOSB self-            disadvantaged” its owners must
goal of awarding at least 5 percent of        certification is challenged, SBA             demonstrate economic disadvantage in
prime contracting dollars to SDBs each        determines if the business meets             accordance with the requirements set
year. Large prime contractors must also       the status, ownership, and control           forth in the final rule. For additional
establish a subcontracting goal for SDBs      requirements. The SDVOSB Protest is          information, visit
in their Subcontracting Plans.                administered by SBA to ensure that only
   Firms self-certify as SDB without          businesses owned by service-disabled
submitting any application to SBA;            veterans receive contracts reserved
however, firms approved by SBA into           exclusively for them.

Visit us online:                                                           SOUTH FLORIDA Small Business Resource —   33
  Once you have identified the                     the database for prospective vendors. The         of government. Businesses interested in
important information regarding your               CCR is at                            becoming GSA schedule contractors
business, it is time to start the process of        After completing registration, you will          should review the information available
procuring a government contract.                 be asked to enter your small business               at
  1. Identify your DUNS (Data Universal          profile information through the SBA                 8. Make Sure Your Business is
  Numbering System) number                       Supplemental Page. The information                  Financially Sound
  To register your business, obtain a DUNS       will be displayed in the Dynamic Small              This critical step is absolutely necessary
  number used to identify and track              Business Search.                                    to make sure that your business is
  millions of businesses. You can obtain            Creating a profile in CCR and keeping            financially prepared for the journey
                                                                                                     ahead. Even if you are able to obtain a
  your free DUNS number when                     it current ensures your firm has access
  registering with the CCR (Central                                                                  government contract, you will not be
                                                 to federal contracting opportunities.
  Contractor Registration) at                                                            receiving all of the money at once. It
                                                 Entering your small business profile,               helps to have a clear plan of how your
  or by contacting Dun & Bradstreet at           including your business information and                                                                                       business will stage the benefits of the
                                                 key word description, allows contracting            contract.
  2. Identify your EIN                           officers, prime contractors, and buyers
  (Employer Identification Number)                                                                   9. Search FedBizOpps for contracting
                                                 from state and local governments to                 opportunities
  An EIN, otherwise known as a federal tax
                                                 learn about your company.                           Federal Business Opportunities, or
  identification number, is generally
                                                   6. Use ORCA (Online Representations               FedBizOpps, is an online service operated
  required of all businesses. For more
                                                   and Certifications Application)                   by the federal government that
  information, go to                  Prospective contractors must complete
  3. Identify your NAICS (North American                                                             announces available business
                                                   (electronically or through submission of          opportunities. FedBizOpps helps identify
  Industry Classification) codes                   paperwork) representations and
  The NAICS codes are used to classify the                                                           the needs of federal agencies and
                                                   certifications for small business size and        available contracting opportunities. To
  industry a particular business occupies.         program status as part of the process
  You will need at least one NAICS code to                                                           begin searching for contracting
                                                   that registers the business for federal           opportunities, go to
  complete your registration, but be sure to       contracting opportunities. To make this
  list as many as apply. You may also add                                                            10. Marketing Your Business
                                                   process easier for everyone involved, the         Registering your business is not enough
  or change NAICS codes at any time. To            government developed ORCA, where
  find NAICS code, visit                                                                             to obtain a federal contract; you will need
                                                   generally, businesses can complete all of         to market your business to attract federal                   the paperwork online. To begin this
  4. Identify your SIC (Standard Industrial                                                          agencies. Tips for good marketing are:
                                                   process, first register your firm in CCR,         • Determine which federal agencies
  Classification) codes                            then go to
  The SIC codes are four-digit numbers                                                                 buy your product or service, and
                                                   7. Register with the GSA Schedule                   get to know them;
  that are used to classify the industry a         The GSA (General Services
  particular business occupies. While                                                                • Identify the contracting
                                                   Administration) Multiple Award Schedule             procedures of those agencies;
  NAICS codes have largely replaced SIC            (aka Federal Supply Schedule) is used by
  codes, you will still need to provide your                                                         • Focus on opportunities in your
                                                   GSA to establish long-term, government-             niche and prioritize them.
  SIC code. SIC codes can be found at              wide contracts with commercial firms.                                                             Although not required, you may
                                                   Once these contracts are established,
  5. Register with the CCR (Central                                                              want to obtain a PSC (Product Services
                                                   government agencies can order the
  Contractor Registration)                         supplies and services they need directly
                                                                                                 Code) and/or a FSC (Federal Supply
  The CCR is an online federal                     from the firms through the use of an          Classification). These codes provide
  government-maintained database of                online shopping tool. Becoming a GSA          additional information about the
  companies wanting to do business with            schedule contractor increases your            services and products your business
  the federal government. Agencies search          opportunity for contracts across all levels   offers.

     The following federal procurement               award of that contract to the small              services to federal, state, and/or local
   resources may also be of assistance:              business.                                        government. To find a PTAC in your
     • The Certificates of Competency              • PCRs (Procurement Center                         state, go to
       program allows a small business, that         Representatives) and CMRs                   •    Department of Defense (The DoD is
       is the apparent successful offeror,           (Commercial Marketing                            the largest purchaser of goods from
       to appeal a contracting officer’s non-        Representatives): PCRs work to                   small businesses):
       responsibility determination that it is       increase the small business share      
       unable to fulfill the requirements of         of federal procurement awards.              •    Office of Federal Procurement Policy:
       a specific government contract. The           CMRs offer many services to small      
       SBA will conduct a detailed review            businesses, including counseling on         •    Acquisition Forecast:
       of the firm’s technical and financial         how to obtain subcontracts. To find a  
       capabilities to perform on the                PCR or CMR near you, go to www.sba.              _forecasts/index.html
       contract. If the business demonstrates        gov/sba-direct.                             •    Federal Supply Schedule (FSS):
       the capability to perform, the SBA          • PTACs (Procurement Technical           
       issues a Certificate of Competency            Assistance Centers): PTACs                  •    GSA Center for Acquisition
       to the contracting officer, requiring         provide assistance to businesses                 Excellence:
                                                     that want to sell products and                   content/103487

34 — Small Business Resource   SOUTH FLORIDA                                                                         Visit us online:
                             Knowing the Types of Assistance Available for Recovery

              he Disaster Assistance             Military Reservist Economic Injury          The page provides links to resources
              Program is SBA’s largest       Disaster Loans (MREIDLs) are working         to help you put together your own
              direct loan program, and       capital loans for small businesses           emergency plan, preparedness tips,
              the only form of SBA           adversely affected when an essential         and fact sheets about SBA recovery
              assistance not limited to      employee is called up to active duty         assistance for homeowners, renters,
small businesses. SBA is responsible         by the National Guard or Reserves.           businesses of all sizes and private,
for providing affordable, timely and         An “essential employee” is defined           nonprofit organizations.
accessible financial assistance to           as an individual (whether or not the            Additionally, to help small businesses
homeowners, renters, businesses of all       owner of the small business) whose           with their preparedness planning, SBA
sizes and private, nonprofit organizations   managerial or technical skill is critical    has teamed up with Agility Recovery
following declared disasters. By law,        to the successfully daily operation          Solutions to offer business continuity
governmental units and agricultural          of the business. The loan limit is $2        strategies for entrepreneurs via their
enterprises are ineligible.                  million, and the funds may be used to        “PrepareMyBusiness” website. In
   The SBA offers two types of disaster      pay necessary operating expenses as          addition to offering practical disaster
   loans—Physical and Economic Injury        they mature until operations return to       preparedness tips, Agility is the co-host
   Disaster Loans.                           normal after the essential employee is       (with SBA) of a monthly disaster
    Home Physical Disaster Loans up          released from active military duty. The      planning webinar for business owners.
   to $200,000 are available to eligible     MREIDLs cannot be used to replace lost       Previous webinar topics have included
homeowners to repair or replace to           profits.                                     discussions on crisis communications,
its pre-disaster condition damaged or            For all disaster loans, SBA can only     testing your recovery plan, and using
destroyed real estate not fully covered      approve loans to applicants having a         social media to enhance business
by insurance. Renters and homeowners         credit history acceptable to SBA and         recovery. Visit www.preparemybusiness.
alike may borrow up to $40,000 to repair     who also show the ability to repay the       org to get the schedule for future
                                             loans. The loan terms are established
or replace clothing, furniture, cars,                                                     webinars, view archived webinars, and
                                             in accordance with the borrower’s
appliances, etc., that were damaged or                                                    for more disaster planning tips.
                                             repayment ability. The law gives SBA
destroyed in the disaster.                                                                   As small businesses are leading
                                             several powerful tools to make disaster
    Business Physical Disaster Loans up                                                   America’s economic recovery, many of
                                             loans affordable: low interest rates
to $2 million are available to qualified     (around 4 percent), long terms (up to        them are investing time and money
businesses or private, nonprofit             30 years), and refinancing of prior liens    into their plans to grow and create
organizations of any size to help            (in some cases). As required by law, the     jobs. Developing a strong disaster
restore or replace damaged real estate,      interest rate for each loan is based on      preparedness plan should be a critical
inventory, machinery, equipment and          SBA’s determination of whether the           and integral piece of those efforts.
other business assets to its pre-disaster    applicant has credit available elsewhere     Planning for a disaster is the best way of
condition.                                   (the ability to borrow or use their own      limiting its effects.
    The SBA can also lend additional         resources to recover after the disaster).
funds to homeowners and businesses               More information on all of SBA’s         Additional Resources
to help with the cost of making              disaster assistance programs, including         The SBA has partnered with the
improvements that protect, prevent           information for military reservists, is      American Red Cross to increase
or minimize the same type of disaster        available at           awareness in the business community
damage from occurring again.                                                              about the Red Cross Ready Rating™
    Economic Injury Disaster Loans           Disaster Preparedness                        program. Ready Rating
(EIDLs) are working capital loans               For small businesses, surviving a         ( is a free, self-paced,
available to qualified small businesses,     disaster doesn’t begin with clearing the     web-based membership program that
private nonprofit organizations of all       debris and returning to work.                helps a business measure its ability
sizes and small agricultural cooperatives       With proper planning, surviving           to deal with emergencies, and gives
that suffered financial losses because       begins long before the disaster strikes—     customized feedback on how to improve
of the disaster, regardless of physical      or before active-duty orders are received.   those efforts.

damage. The SBA can lend up to $2            Your planning should include insurance          Additional information on developing
million to provide the necessary working     coverage, emergency power, protection        an emergency plan is available at the
capital to help small businesses pay fixed   of company records, fire safety, medical     federal government’s preparedness
debts, payroll, accounts payable and         emergencies, taking care of your             website
other bills that could have been covered     employees and continuity planning –             The Institute for Business and Home
had the disaster not occurred. The loan      how your business will continue during       Safety ( ) has useful
is not intended to replace lost sales or     and after the emergency or disaster.         tips on protecting your home or business.
profits. The combined limit for economic        Starting is as easy as clicking on the
injury and physical damage assistance        disaster preparedness page of SBA’s
for businesses is $2 million.                website at

Visit us online:                                                          SOUTH FLORIDA Small Business Resource —   35
                                      ADVOCACY AND OMBUDSMAN   Watching out for small business interests

                         OFFICE OF ADVOCACY                             nonprofit organizations), and consider
                                                                        regulatory alternatives that minimize
                                                                                                                   owners, nonprofit organizations and
                                                                                                                   small government entities. Comments
                            The SBA’s Office of Advocacy, the           the economic burden on small entities.     are forwarded to federal agencies for
                         “small business watchdog” of the                 Advocacy’s mission is enhanced by        review, and in some cases fines may

                         government, examines the role and              a team of regional advocates, located      be lowered or eliminated and decisions
                         status of small business in the economy        in the SBA’s 10 regions. They are          changed in favor of the small business
                         and independently represents the               Advocacy’s direct link to small business   owners. Each year the National
                         views of small business to federal             owners, state and local government         Ombudsman files a report with the
                         agencies, Congress, the President and          entities, and organizations that           U.S. Congress on the responsiveness
                         federal appellate courts as friends            support the interests of small entities.   of federal agencies regarding their
                         of the court. Advocacy compiles and            The regional advocates help identify       actions of regulatory and compliance
                         interprets statistics on small business        regulatory concerns of small business      enforcement on small businesses.
                         and is the primary entity within the           by monitoring the impact of federal and       To request help, send the National
                         federal government to disseminate small        state policies at the grassroots level.    Ombudsman a complete Federal Agency
                         business data.                                   Learn more about the Office of           Comment Form. You may do this
                            Headed by the Chief Counsel for             Advocacy at          by fax at 202-481-5719; online at the
                         Advocacy, the office also funds outside                                                   Ombudsman’s Web page:
                                                                        OFFICE OF THE NATIONAL
                         research of small business issues                                               ; or by mail at
                         and produces numerous publications                                                        409 Third Street S.W., Mail Code 2120,
                         to inform policy makers about the
                         important role of small business
                                                                        OMBUDSMAN                                  Washington, DC 20416.
                                                                           If excessive fines, penalties or           The Ombudsman also coordinates
                         in the economy and the impact of                                                          10 Regional Regulatory Fairness
                                                                        unfair regulatory enforcement by
                         government policies on small business.                                                    Boards which meet regularly to receive
                                                                        federal agencies are problems for your
                         In addition, the office monitors federal                                                  comments about federal regulations
                                                                        small business, you have a voice in
                         agency compliance with the Regulatory                                                     affecting small businesses.
                                                                        Washington, D.C. through the SBA’s
                         Flexibility Act – the law that requires                                                      Learn more about the National
                                                                        Office of the National Ombudsman.
                         agencies to analyze the impact of their                                                   Ombudsman from the Web site above or
                                                                           The Ombudsman receives
                         proposed regulations on small entities                                                    call 888-REG-FAIR.
                                                                        comments regarding federal regulatory
                         (including small businesses, small
                                                                        enforcement from small business
                         governmental jurisdictions and small

                         36 — Small Business Resource   SOUTH FLORIDA                                                             Visit us online:
                    ADDITIONAL RESOURCESTaking care of start up logistics
                                                                                            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 sufficient
                                                                                         funds to pay your fixed 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
         ven if you are running a           your business is based. If you are a         illness or death, you should consider
         small home-based business,         corporation, you’ll need to check with the   “key man” insurance. This type of
         you will have to comply with       state.                                       policy is frequently required by banks
         many of the local, state, and                                                   or government loan programs. It also
         federal regulations. Avoid the
temptation to ignore regulatory details.
                                            BUSINESS INSURANCE                           can be used to provide continuity in
                                                                                         operations during a period of ownership
Doing so may avert some red tape in the        Like home insurance, business             transition caused by the death,
short term, but could be an obstacle as     insurance protects your business against     incapacitation or absence due to a Title
your business grows. Taking the time        fire, theft and other losses. Contact your   10 military activation of an owner or
to research the applicable regulations is   insurance agent or broker. It is prudent     other “key” employee.
as important as knowing your market.        for any business to purchase a number           Automobile – It is obvious that
Bear in mind that regulations vary by       of basic types of insurance. Some types      a vehicle owned by your business
industry. If you’re in the food-service     of coverage are required by law, others      should be insured for both liability and
business, for example, you will have to     simply make good business sense. The         replacement purposes. What is less
deal with the health department. If you     types of insurance listed below are          obvious is that you may need special
use chemical solvents, you will have        among the most commonly used and are         insurance (called “non-owned automobile
environmental compliances to meet.          merely a starting point for evaluating       coverage”) if you use your personal
Carefully investigate the regulations       the needs of your business.                  vehicle on company business. This
that affect your industry. Being out of        Liability Insurance – Businesses          policy covers the business’ liability for
compliance could leave you unprotected      may incur various forms of liability in      any damage which may result for such
legally, lead to expensive penalties and    conducting their normal activities. One      usage.
jeopardize your business.                                                                   Officer and Director – Under most
                                            of the most common types is product
                                                                                         state laws, officers and directors of a
                                            liability, which may be incurred when
                                                                                         corporation may become personally

                                                                                                                                             ADDITIONAL RESOURCES
                                            a customer suffers harm from using           liable for their actions on behalf of the
  There are many types of licenses, both    the business product. There are many         company. This type of policy covers this
state and local as well as professional.    other types of liability, which are          liability.
Depending on what you do and where          frequently related to specific industries.      Home Office – If you are establishing
you plan to operate, your business may      Liability law is constantly changing.        an office in your home, it is a good idea
be required to have various state and/      An analysis of your liability insurance      to contact your homeowners’ insurance
or municipal licenses, certificates or      needs by a competent professional is         company to update your policy to include
permits.                                    vital in determining an adequate and         coverage for office equipment. This
  Licenses are typically administered by    appropriate level of protection for your     coverage is not automatically included in
a variety of state and local departments.   business.                                    a standard homeowner’s policy.
Consult your state or local government         Property – There are many different
for assistance.                             types of property insurance and levels
                                            of coverage available. It is important
FICTITIOUS BUSINESS NAME                    to determine the property you need             Taxes are an important and complex
                                                                                         aspect of owning and operating a
  Registering your business name, after     to insure for the continuation of your
                                                                                         successful business. Your accountant,
doing a search to make sure that it is      business and the level of insurance you
                                                                                         payroll person, or tax advisor may be
not already in use, protects you from       need to replace or rebuild. You must also    very knowledgeable, but there are still
others who might want to use the same       understand the terms of the insurance,       many facets of tax law that you should
name. For more information, contact the     including any limitations or waivers of      know. The Internal Revenue Service is a
county clerk’s office in the county where   coverage.

Visit us online:                                                         SOUTH FLORIDA Small Business Resource —   37
                                                                                            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).

                                                                                            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

great source for tax information.
Small Business/Self-Employed Tax
                                                  The IRS has publications, counselors
                                               and workshops available to help you sort
                                                                                            VIRTUAL SMALL BUSINESS
Center:          it out. For more information, contact the    WORKSHOP
index.html                                     IRS at 800-829-1040 or
  When you are running a business, you                                                        The Virtual Small Business Tax
don’t need to be a tax expert. However,
you do need some tax basics. IRS Small
                                               SALES TAX EXEMPTION                          Workshop is the first of a series of video
Business/Self-Employed Tax Center              CERTIFICATE                                  products designed exclusively for small
                                                                                            business taxpayers. This workshop helps
gives you the information you need to             If you plan to sell products, you will    business owners understand federal tax
stay tax compliant so your business can        need a Sales Tax Exemption Certificate.
                                                                                            obligations. The Virtual Small Business
thrive.                                        It allows you to purchase inventory, or
                                                                                            Workshop is available on CD
Small Business Forms and Publications          materials, which will become part of the
                                               product you sell, from suppliers without,,id=,,id=
                                               paying taxes. It requires you to charge      101169,00.html and online
99200,00.html                                                                      if you
  Download multiple small business and         sales tax to your customers, which you
                                               are responsible for remitting to the         are unable to attend a workshop in
self-employed forms and publications.
                                               state. You will have to pay penalties if     person. Small business workshops are
                                                                                            designed to help the small business
FEDERAL PAYROLL TAX                            it is found that you should have been
                                               taxing your products and now owe back        owner understand and fulfill their
(EIN NUMBERS)                                  taxes to the state. For information on       federal tax responsibilities. Workshops
  An Employer Identification Number            sales tax issues, contact your state’s       are sponsored and presented by IRS
(EIN),also known as a Federal Employer         government.                                  partners who are federal tax specialists.
Identification Number (FEIN), is used                                                         Workshop topics vary from a general
to identify a business entity. Generally,
businesses need an EIN to pay federal
                                               FEDERAL INCOME TAX                           overview of taxes to more specific topics
                                                                                            such as recordkeeping and retirement
withholding tax.                                  Like the state income tax, the method     plans. Although most are free, some
  You may apply for an EIN in various          of paying federal income taxes depends
                                                                                            workshops have fees associated with
ways, one of which is to apply online.         upon your legal form of business.
                                                                                            them. Fees for a workshop are charged,,id=       Sole Proprietorship: You must file
                                               IRS Federal Form Schedule C along            by the sponsoring organization, not the
102767,00.html. This is a free service                                                      IRS.
offered by the Internal Revenue Service.       with your personal Federal Income
                                               Tax return (Form 1040) and any other           The IRS’s Virtual Small Business
Call 800-829 1040 if you have questions.                                                    Tax Workshop is an interactive
You must check with your state to              applicable forms pertaining to gains or
                                               losses in your business activity.            resource to help small business owners
determine if you need a state number or                                                     learn about their federal tax rights
charter.                                          Partnership: You must file a Federal
                                               Partnership return (Form 1065). This         and responsibilities. This educational
                                               is merely informational to show gross        product, available online and on CD,
FEDERAL                                        and net earnings of profit and loss. Also,   consists of nine stand-alone lessons
SELF-EMPLOYMENT TAX                            each partner must report his share of
                                               partnership earnings on his individual
                                                                                            that can be selected and viewed in any
                                                                                            sequence. A bookmark feature makes it
  Every employee must pay Social               Form 1040 based on the information
Security and Medicare coverage. If you                                                      possible to leave and return to a specific
                                               from the K-1 filed with the Form 1065.       point within the lesson. Users also have
are self-employed, your contributions are         Corporation: You must file a Federal
made through the self-employment tax.                                                       access to a list of useful online references
                                               Corporation Income Tax return (Form          that enhance the learning experience by

38 — Small Business Resource   SOUTH FLORIDA                                                                 Visit us online:
allowing them to view references and            • verify Social Security Numbers           Occupational Safety and Health
the video lessons simultaneously.                 through the Social Security Number       Administration outlines specific health
  Tax Calendar for Small Businesses               Verification Service, used for all       and safety standards adopted by the
and Self-Employed (Publication 1518)              employees prior to preparing and         U.S. Department of Labor.
                                                  submitting Forms W-2.,,
                                              Health Insurance                             BUILDING CODES, PERMITS
  The Tax Calendar for Small
Businesses and Self-Employed contains
                                                Compare plans in your area at              AND ZONING
                                                                It is important to consider zoning
useful information on general business
                                                                                           regulations when choosing a site for your
taxes, IRS and SSA customer assistance,
                                              EMPLOYEE INSURANCE                           business. You may not be permitted to
electronic filing and paying options,           If you hire employees you may be           conduct business out of your home or
retirement plans, business publications       required to provide unemployment or          engage in industrial activity in a retail
and forms, common tax filing dates, and       workers’ compensation insurance.             district. Contact the business license
federal legal holidays.                                                                    office in the city or town where the
                                              WORKPLACE DISABILITY                         business is located.
SOCIAL SECURITY CARDS                         PROGRAMS
   All employees must have a social             Americans with Disabilities Act            BAR CODING
security card. It must be signed by its       (ADA): For assistance with the ADA, call       Many stores require bar coding on
owner, and you should always ask to           800-669-3362 or visit           packaged products. Many industrial
see and personally record the social                                                       and manufacturing companies use bar
security number. Failure to do so may
cause your employee to lose benefits and      U.S. CITIZENSHIP AND                         coding to identify items they receive and
                                                                                           ship. There are several companies that
considerable trouble for yourself in back     IMMIGRATION SERVICES                         can assist businesses with bar-coding
tracking to uncover the error.                   The Federal Immigration Reform and        needs. You may want to talk with an
   Each payday, your employees must           Control Act of 1986 requires employers       SBDC, SCORE or WBC counselor for
receive a statement from you telling          to verify employment eligibility of          more information.
them what deductions were made                new employees. The law obligates
and how many dollars were taken out           an employer to process Employment            Federal Registration of Trademarks
for each legal purpose. This can be           Eligibility Verification Form I-9. The       and Copyrights
presented in a variety of ways, including     U.S. Citizenship and Immigration               Trademarks or service marks are
on the check as a detachable portion          Services Office of Business Liaison offers   words, phrases, symbols, designs or
or in the form of an envelope with the        a selection of information bulletins and     combinations thereof that identify
items printed and spaces for dollar           live assistance through the Employer         and distinguish the source of goods.
deductions to be filled in.                   Hotline. For forms call 800-870-3676, for    Trademarks may be registered at both
                                              the Employer Hotline call 800-357-2099.      the state and federal level. To register a
                                                                                           federal trademark, contact:
EMPLOYEE CONSIDERATIONS                       E-Verify: Employment Eligibility             U.S. Patent and Trademark Office:
Taxes                                         Verification                                    P.O. Box 1450
                                                                                              Alexandria, VA 22313-1450
  If you have any employees, including           E-Verify, operated by the Department
                                              of Homeland Security in partnership             800-786-9199
officers of a corporation but not the sole                                          
proprietor or partners, you must make         with the Social Security Administration,
periodic payments towards, and/or file        is the best--and quickest--way for           Trademark Information Hotline
quarterly reports about payroll taxes         employers to determine the employment           703-308-9000
and other mandatory deductions. You           eligibility of new hires. It is a safe,
may contact (for information, assistance
and forms.)
                                              simple, and secure Internet-based
                                              system that electronically verifies the      STATE REGISTRATION OF A
Social Security Administration                Social Security number and employment        TRADEMARK
     800-772-1213                             eligibility information reported on Form       Trademarks and service marks may                              I-9. E-Verify is voluntary in most states    be registered in a state.
                                              and there is no charge to use it.            Caution: Federally registered
Federal Withholding                              If you are an employer or employee        trademarks may conflict with and
     U.S. Internal Revenue Service            and would like more information about
     800-829-1040                                                                          supersede state registered business and
                                              the E-Verify program, please visit           product names.
                                     or contact our
                                              Customer Support staff: 1-888-464-4218       Patents
Social Security’s Business Services           Monday – Friday 8 am – 5 pm.                   A patent is the grant of a property
Online                                        E-mail:                     right to the inventor by the U.S. Patent
  The Social Security Administration
                                                                                           and Trademark Office. It provides the
now provides free electronic services
online at
                                              SAFETY & HEALTH                              owner with the right to exclude others
Once registered for Business Services         REGULATIONS                                  from making, using, offering for sale or
                                                                                           selling the patented item in the United
Online, business owners or their                All businesses with employees              States.
authorized representative can:                are required to comply with state              Additional information is provided in
  • file W-2s online; and                     and federal regulations regarding            the publications, General Information
                                              the protection of employees. The             Concerning Patents and other

Visit us online:                                                           SOUTH FLORIDA Small Business Resource —   39
publications distributed through the
U.S. Patent and Trademark Office. For
more information, contact the:
U.S. Patent and Trademark Office
    800-786-9199 •

  Copyrights protect original works of
authorship including literary, dramatic,
musical and artistic, and certain other
intellectual works. Copyright does
not protect facts, ideas and systems,
although it may protect the way these
things are expressed. For general
information contact:
U.S. Copyright Office
    U.S. Library of Congress
    James Madison Memorial Building
    Washington, DC 20559
    202-707-9100 - Order Line
    202-707-3000 - Information Line

 Choosing Your Business Structure
  There are many forms of legal                easy to establish. A formal partnership       the corporation. It’s the most complex
structure you may choose for your              agreement is recommended to address           form of business organization and is
business. Each legal structure offers          potential conflicts such as: who will be      comprised of shareholders, directors
organizational options with different          responsible for performing each task;         and officers. Since the corporation
tax and liability issues. We suggest you       what, if any, consultation is needed          is a separate legal entity in its own
research each legal structure thoroughly       between partners before major decisions,      right it can own assets, borrow money
and consult a tax accountant and/or            and what happens when a partner               and perform business functions
attorney prior to making your decision.        dies. Under a general partnership each        without directly involving the owners.
  The most common organizational               partner is liable for all debts of the        Corporations are subject to more
structures are sole proprietorships,           business. Profits are taxed as income to      government regulation and offer the
general and limited partnerships, “C”          the partners based on their ownership         owners the advantage of limited liability,
and “S” corporations and limited liability     percentage.                                   but not total protection from lawsuits.
   If you’re uncertain which business          Limited Partnership                           Subchapter “S” Corporation
format is right for you, you should               Like a general partnership, a                Subchapter “S” references a special
discuss options with a business                limited partnership is established by         part of the Internal Revenue Code that
counselor or attorney.                         an agreement between two or more              permits a corporation to be taxed as a
                                               persons. However, there are two types         partnership or sole proprietorship, with
                                                                                             profits taxed at the individual, rather
Sole Proprietorship                            of partners.
                                                                                             than the corporate rate. A business
   One person operating a business as            • A general partner has greater control
                                                   in some aspects of the partnership.       must meet certain requirements for
an individual is a sole proprietorship.
                                                   For example, only a general partner       Subchapter “S” status. Contact the IRS
It’s the most common form of business              can decide to dissolve the partnership.   for more information.
organization. Profits are taxed as                 General partners have no limits on the
income to the owner personally. The                dividends they can receive from profit    LLCs and LLPs
personal tax rate is usually lower than            so they incur unlimited liability.
                                                                                                The limited liability company is
the corporate tax rate. The owner                • Limited partners can only receive
                                                   a share of profits based on the           a relatively new business form. It
has complete control of the business,                                                        combines selected corporate and
                                                   proportional amount on their
but faces unlimited liability for its                                                        partnership characteristics while
                                                   investment, and liability is similarly
debts. There is very little government             limited in proportion to their            still maintaining status as a legal
regulation or reporting required with              investment.                               entity distinct from its owners. As a
this business structure.                                                                     separate entity it can acquire assets,
                                               “C” Corporation                               incur liabilities and conduct business.
General Partnership                               A “C” corporation is a legal entity        It limits liability for the owners. The
   A partnership exists when two               created under state law by the filing of      limited liability partnership is similar
or more persons join together in               articles of incorporation. A corporation      to the LLC, but it is for professional
the operation and management of a              is a separate entity having its own           organizations.
business. Partnerships are subject to          rights, privileges and liabilities, apart
relatively little regulation and are fairly    from those of the individual(s) forming

40 — Small Business Resource   SOUTH FLORIDA                                                                  Visit us online:
 Chambers of                            DAVIE-COOPER CITY CoC             GREATER PALM BAY CoC               KISSIMMEE CoC
                                          954-581-0790 • 954-581-9684 F     321-951-9998 • 321-951-0012 F      407-847-3174 • 407-870-8607 F
 Commerce                               DEERFIELD BEACH CoC               GREATER PALM HARBOR CoC            LAKE ALFRED CoC
                                          954-427-1050 • 954-427-1056 F     727-784-4287 • 727-786-2336 F    LAKE PLACID CoC
   813-645-1366 • 813-641-2612 F
                                        DELRAY BEACH CoC                  GREATER PINE ISLAND CoC              863-465-4331 • 863-465-2588 F
                                          561-278-0424 • 561-278-0555 F     239-283-0888 • 239-283-0336 F    LAKE WALES AREA CoC
   863-967-3400 • 863-967-0880 F
                                        DESOTO COUNTY CoC                 GREATER PLANTATION CoC               863-676-3445 • 863-676-3446 F
                                          863-494-4033 • 863-494-3312 F     954-587-1410 • 954-587-1886 F    LAKE WORTH CoC
   305-935-2131 • 305-690-9124 F
                                        DORAL & AIRPORT WEST CoC          GREATER RIVERVIEW CoC                561-582-4401 • 561-547-8300 F
                                          305-244-1641 • 305-471-0187 F     813-643-8000 • 813-643-8500 F    LAKELAND CoC
   305-935-2131 • 305-690-9124 F
                                        DUNDEE AREA CoC                   GREATER SEFFNER AREA CoC             863-688-8551 • 863-683-7454 F
                                          863-439-3261 • 863-439-3261 F   GREATER SEMINOLE AREA CoC          LANTANA CoC
   863-453-3350 • 863-453-0973 F
                                        DUNEDIN CoC                         727-392-3245 • 727-397-7753 F      561-585-8664 • 561-585-0644 F
                                          727-736-5066 • 727-734-8942 F   GREATER SOUTH DADE CoC             LARGO MID-PINELLAS CoC
   561-996-2745 • 561-996-2252 F
                                        ENGLEWOOD CoC                       305-661-1621 • 305-666-0508 F      727-584-2321 • 727-586-3112 F
                                          941-474-5511 • 941-475-9257 F   GREATER SUNRISE CoC                LATIN COC OF BROWARD COUNTY
   941-964-0568 • 941-964-0260 F
                                        ESTERO CoC                          954-835-2428 • 954-835-2431 F      954-625-6616 • 954-625-6693 F
                                          239-948-7990 • 239-947-9968 F   GREATER TAMPA CoC                  LAUDERDALE-BY-SEA CoC
   941-964-0568 • 941-964-2060 F
                                        EVERGLADES CITY CoC                 813-228-7777 • 813-223-7899 F      954-776-1000 • 954-776-6203 F
                                          239-695-3941 • 239-695-3172 F   GREATER TEMPLE TERRACE CoC         LAUDERDALE LAKES CoC
   239-992-2943 • 239-992-5011 F
                                        FLORIDA COC                         813-989-7004 • 813-989-7005 F      954-732-4000 • 954-733-7444 F
                                        FLORIDA GOLD COAST/BAY            GULF BEACHES OF TAMPA BAY          LEE COUNTY CoC
   561-732-9501 • 561-734-4304 F
                                        HARBOR ISLANDS CoC                CoC                                  239-931-0931 • 239-931-0917 F
                                          305-866-6020 • 305-866-0635 F     727-360-6957 • 727-360-2233 F    LEHIGH ACRES CoC
   941-778-1541 • 941-778-9679 F
                                        FORT MEADE CoC                    GULFPORT CoC                         239-369-3322 • 239-368-0500 F
                                          863-285-8253 • 863-285-6968 F     727-344-3711 • 727-344-5461 F    LIGHTHOUSE POINT CoC
   954-565-5750 • 954-566-3398 F
                                        FORT MYERS BEACH CoC              HAINES CITY CoC                      954-782-5647 • 954-782-6540 F
                                          239-454-7500 • 239-454-7910 F     863-422-3751 • 863-422-4704 F    LONGBOAT KEY CoC
                                        FROSTPROOF CoC                    HALLANDALE CoC                       941-383-2466 • 941-383-8217 F
   239-549-6900 • 239-549-9609 F
                                        FT. PIERC/ST. LUCIE COUNTY CoC      954-454-0541 • 954-454-0930 F    LOWER KEYS CoC
                                          772-595-9999 • 772-461-9084 F   HALLANDALE-PEMBROKE PARK             305-872-2411 • 305-872-0752 F
   561-833-3711 • 561-833-5582 F
                                        GATEWAY AREA CoC                  CoC                                LOXAHATCHEE CoC
                                        GLADES COUNTY/MOOREHAVEN            954-454-0541 • 954-454-0930 F      561-790-6200 • 561-791-2069 F
                                        CoC                               HARDEE COUNTY/WAUCHULA CoC         LUTZ/CENTRAL PASCO CoC
   561-746-7111 • 561-746-7715 F
                                          863-946-0440 • 863-946-2282 F     863-773-6967 • 863-773-0229 F      813-909-2722 • 813-909-0827 F
                                        GREATER BARTOW CoC                HIALEAH CoC                        MANATEE/PALMETTO CoC
                                          863-533-7125 • 863-533-3793 F     305-687-5555 • 305-556-7333 F      941-748-3411 • 941-745-1877 F
   239-278-4001 • 239-278-3319 F
                                        GREATER BOCA RATON CoC            HIALEAH-LATIN CoC                  MARCO ISLAND AREA CoC
                                          561-395-4433 • 561-392-3780 F     305-828-9898 • 305-828-9777 F      239-394-7549 • 239-394-3061 F
                                        GREATER BRANDON CoC               HOBE SOUND CoC                     MARGATE CoC
   941-639-2222 • 941-639-6330 F
                                          813-689-1221 • 813-689-9440 F     772-546-4724 • 772-546-9969 F      954-582-0399 • 954-580-0107 F
                                        GREATER DADE CITY CoC             HOMESTEAD-FLORIDA CITY CoC         MELBOURNE-PALM BAY AREA CoC
   727-447-7600 • 727-443-7812 F
                                          352-567-3769 • 352-567-3770 F     305-247-2332 • 305-246-1100 F      321-724-5400 • 321-725-2093 F
                                        GREATER FORT LAUDERDALE CoC       IMMOKALEE CoC                      MIAMI BEACH CoC
   727-461-0011 • 727-449-2889 F
                                          954-462-6000 • 954-527-8766 F     239-657-3237 • 239-657-5450 F      305-672-1270 • 305-538-4336 F
                                                                                                                                                       OTHER ASSISTANCE
                                        GREATER FORT MYERS CoC            INDIAN RIVER COUNTY CoC            MIAMI CoC SOUTH
   863-983-7979 • 863-983-7108 F
                                          239-332-3624 • 239-332-7276 F     772-567-3491 • 772-778-3181 F      305-661-1621 • 305-666-0508 F
                                        GREATER HOLLYWOOD CoC             INDIANTOWN CoC                     MIAMI LAKES CoC
   321-459-2200 • 321-459-2232 F
                                          954-923-4000 • 954-923-8737 F     772-597-2184 • 772-597-6063 F      305-556-2212 • 305-821-2349 F
                                        GREATER LABELLE CoC               ISLAMORADA CoC                     MIAMI-DADE CoC
   954-556-4811 • 954-556-1904 F
                                          863-675-0125 • 863-675-6160 F     305-664-4503 • 305-664-4289 F      305-751-8648 • 305-758-3839 F
                                        GREATER MARATHON CoC              JENSEN BEACH CoC                   MIRAMAR-PEMBROKE CoC
   305-444-7270 • 305-444-2498 F
                                          800-262-7284 • 305-289-0183 F     772-334-3444 • 772-334-0817 F      954-432-9808 • 954-432-9193 F
                                        GREATER MIAMI CoC                 KEY BISCAYNE CoC                   NAPLES AREA CoC
   305-446-1657 • 305-446-9900 F
                                          305-350-7700 • 305-374-6902 F     305-361-5207 • 305-361-9411 F      239-262-6376 • 239-262-8374 F
                                        GREATER MIAMI SHORES CoC          KEY LARGO CoC                      NORTH DADE CoC
   954-752-4242 • 954-827-0543 F
                                          305-754-5466 • 305-759-8872 F     800-822-1088 • 305-451-4726 F      305-690-9123 • 305-690-9124 F
                                        GREATER MULBERRY CoC              KEY WEST CoC                       NORTH FORT MYERS CoC
   954-926-2323 • 954-926-2384 F
                                          863-425-4414 • 863-425-3837 F     305-294-2587 • 305-294-7806 F      239-997-9111 • 239-997-4026 F

Visit us online:                                                                   SOUTH FLORIDA Small Business Resource —   41
 NORTH MIAMI BEACH CoC                   PINELLAS PARK CoC                 SEBASTIAN RIVER CoC               TARPON SPRINGS CoC
   305-944-8500 • 305-944-8191 F           727-544-4777 • 727-209-0837 F     772-589-5969 • 772-589-5993 F     727-937-6109 • 727-937-2879 F
 NORTH MIAMI CoC                         PLANT CITY CoC                    SEBRING CoC                       TITUSVILLE AREA CoC
   305-891-7811 • 305-893-8522 F           813-754-3707 • 813-752-8793 F     863-385-8448 • 863-385-8810 F     321-267-3036 • 321-264-0127 F
 OAKLAND PARK/WILTON MANORS              POMPANO BEACH CoC                 SEMINOLE CoC                      TREASURE ISLAND CoC
 CoC                                       954-941-2940 • 954-785-8358 F     727-392-3245 • 727-455-0285 F     727-360-4121 • 727-360-4609 F
   954-568-7755 • 954-568-7733 F         PORT CHARLOTTE CoC                SEMINOLE COUNTY CoC               VENICE CoC
 OKEECHOBEE COUNTY CoC                     941-627-2222 • 941-627-9730 F     407-333-4748 • 407-829-2100 F     941-488-2236 • 941-484-5903 F
   863-763-6464 • 863-763-3531 F         PUERTO RICAN CoC                  SO. FLORIDA/BROWARD INT’L CoC     VENICE CoC
 UPPER TAMPA BAY REGIONAL CoC            OF BROWARD COUNTY                   561-542-8664 • 561-362-8227 F     941-488-2236 • 941-484-5903 F
   813-855-4233 • 813-854-1237 F           954-559-5355 • 954-983-5327 F   SOUTH FLORIDA HISPANIC CoC        WELLINGTON CoC
 PAHOKEE CoC                             PUERTO RICAN CoC OF SOUTH         OF SOUTH FLORIDA                    561-792-6525 • 561-792-6200 F
   561-924-5579 • 561-924-8116 F         FLORIDA                             305-534-1903 • 305-534-8365 F   WEST PASCO CoC
 PALM BEACH CoC                            305-571-8006 • 305-571-8007 F   ST. CLOUD CoC                       727-842-7651 • 727-848-0202 F
   561-655-3282 • 561-655-7191 F         PUERTO RICAN CoC SARASOTA/          407-892-3671 • 407-892-5289 F   WESTON AREA CoC
 PALM BEACH GARDENS CoC                  MANATEE                           ST. PETERSBURG AREA CoC             954-389-0600 • 954-384-6133 F
   561-694-2300 • 561-694-0126 F         RUSKIN CoC                          727-821-4069 • 727-895-6326 F   WINTER HAVEN CoC
 PALM CITY CoC                             813-645-3808 • 813-645-2099 F   STUART/MARTIN COUNTY CoC            863-293-2138 • 863-297-5818 F
   772-286-8121 • 772-286-3331 F         SAFETY HARBOR CoC                   772-287-1088 • 772-220-3437 F   WOMEN’S CoC
 PALM HARBOR CoC                           727-726-2890 • 727-726-2733 F   SUN CITY AREA CoC                   305-446-6660 • 305-675-8523 F
   727-784-4287 • 727-786-2336 F         SANIBEL/CAPTIVA ISLANDS CoC         813-634-5111 • 813-634-8438 F   YBOR CITY CoC
 PARKLAND CoC                              239-472-1080 • 239-472-1070 F   TAMARAC CoC                         813-248-3712 • 813-247-1764 F
   954-346-7275 • 561-750-9781 F         SARASOTA CoC                        954-722-1520 • 954-721-2725 F   ZEPHYRHILLS CoC
 PERRINE CoC                               941-955-2508 ext. 235           TAMPA BAY HISPANIC CHAMBER          813-782-1913 • 813-783-6060 F
   305-238-7192 • 305-666-0508 F           941-366-5621 F                    813-414-9411 • 813-414-0811 F

42 — Small Business Resource   SOUTH FLORIDA                                                                        Visit us online:
        PLEASE REFER                    FIRST CHATHAM BANK        THE BANK               CAPITAL BANK, N.A.          GTE FEDERAL CREDIT
        TO THE INTERNET                 FIRST COMMUNITY             OF COMMERCE          CENTERSTATE BANK OF           UNION
        FOR WEBSITES                      BANK OF S.W.            THE OCULINA BANK         FLORIDA, N.A.             GULFSTREAM BUSINESS
        AND CONTACT                       FLORIDA                 THE PALM BANK          CHARLOTTE STATE               BANK
        INFORMATION FOR                 FIRST NATIONAL BANK       TOTALBANK                BANK                      HELM BANK
        LENDERS                           OF SOUTH MIAMI          U.S. BANK NATIONAL     CITIZENS BANK AND           HERITAGE BANK
                                        FIRST PEOPLES BANK          ASSOCIATION            TRUST                       OF FLORIDA
   Active Lenders                       FLAGLER BANK              UNITED CENTRAL BANK    COCONUT GROVE BANK          INDIAN RIVER
                                        FLAGSHIP COMMUNITY        UNITED MIDWEST         COMMUNITY BANK OF             NATIONAL BANK
        1ST UNITED BANK                   BANK                      SAVINGS BANK           THE SOUTH                 INTERNATIONAL
        ACHIEVA CU                      FLORIDA BANK              UPS CAPITAL BUSINESS   COMMUNITY CREDIT              FINANCE BANK
        AMERICAN NATIONAL               FLORIDA SHORES              CREDIT                 UNION OF FLORIDA          INTERVEST BANK
          BANK                            BANK-SOUTHEAST          WELLS FARGO BANK,      CORNERSTONE                 JEFFERSON BANK
        BANCO POPULAR                   FLORIDA SHORES              N.A.                   COMMUNITY BANK              OF FLORIDA
        BANK OF AMERICA,                GULFSHORE BANK              BANK                 EASTERN NATIONAL              ASSOCIATION
          N.A.                          HIGHLANDS                                          BANK                      KENNEDY SPACE
        BANKATLANTIC                      INDEPENDENT BANK      Additional               EDISON NATIONAL               CENTER CREDIT
        BANKFIRST                       HOMEBANC NATIONAL       Lenders                    BANK                        UNION
        BANKUNITED **                     ASSOCIATION                                    ENGLEWOOD BANK              LANDMARK BANK, N.A.
        BIZCAPITAL BIDCO II,            HSBC BK USA, N.A.         BAY GULF CU              OF FLORIDA                  UNION
          LLC                           INTERAMERICAN BANK,       FAIRWINDS CU           EXECUTIVE NATIONAL          MARQUIS BANK
        BORREGO SPRINGS                   FSB                     FARM CREDIT OF           BANK                      MERCANTILE BANK
          BANK, N.A.                    INTERCREDIT BANK,           FLORIDA, ACA         FEDERAL TRUST BANK          MIDFLORIDA FEDERAL
        BRANCH BANK &                     N.A.                    FIRST BANK & TRUST     FIRST AMERICAN BANK           CREDIT UNION
          TRUST CO.                     JPMORGAN CHASE              CO. - INDIANTOWN     FIRST BANK OF MIAMI         NATBANK, N.A.
        BUSEY BANK                        BANK, N.A.              FLORIDA BANK OF        FIRST BANK OF THE           NATIONAL BANK OF
        CALUSA NATIONAL                 KEYBANK NATIONAL            COMMERCE               PALM BEACHES                SOUTHWEST FLORIDA
          BANK                            ASSOCIATION             GATEWAY BANK OF        FIRST CITRUS BANK           NORTHERN TRUST
        CAPITALSOURCE BANK              LIVE OAK BANKING            S.W. FLORIDA         FIRST COAST                   BANK OF FLORIDA
        CAROLINA FIRST BANK               COMPANY                 GULF COAST BANK &        COMMUNITY BANK            PACIFIC NATIONAL
        CBC NATIONAL BANK               M&I MARSHALL &              TRUST CO.            FIRST COMMUNITY               BANK
        CELTIC BANK                       ILSLEY BANK             INSIGNIA BANK            BANK OF AMERICA           PREFERRED
        CENTENNIAL BANK                   7(A), LLC               NORTHSTAR BANK           SAVINGS BANK              PREMIER AMERICAN
        CENTRAL BANK                    MARINE BANK & TRUST       PATRIOT BANK           FIRST HOME BANK               BANK, N.A.
        CIT SMALL BUS.                    COMPANY                 PROFESSIONAL BANK      FIRST NATIONAL BANK         PREMIER COMMUNITY
          LENDING CORP.                 MERCANTIL                 SEASIDE NATIONAL         NORTHWEST FLORIDA           BANK OF FLORIDA
        CITIBANK, N.A.                    COMMERCEBANK,             BANK & TRUST         FIRST NATIONAL BANK         REPUBLIC BANK
        CITY NATIONAL BANK                N.A.                    SHAMROCK BANK            OF CENTRAL FLORIDA          OF FLORIDA
          OF FLORIDA                    MUTUAL OF OMAHA             OF FLORIDA           FIRST NATIONAL BANK         SABADELL UNITED
        COMMUNITY BANK &                  BANK                    SOUTHWEST CAPITAL        OF PASCO                    BANK
          COMPANY                       NEWTEK SMALL BUS.           BANK, N.A.           FIRST NATIONAL BANK         SECURITY BANK
        COMMUNITY BANK                    FINANCE INC.            SUNCOAST SCHOOLS         OF WAUCHULA               SOUTHERN COMMERCE
          OF BROWARD                    OCEAN BANK                  FCU                  FIRST SOUTHERN BANK           BANK
          OF FLORIDA                    PARKE BANK                                         THE FLORIDA KEYS          TAMPA BAY FEDERAL
                                        PILOT BANK                                       FIRST-CITIZENS BANK &         CREDIT UNION
          BANK                          PINNACLE BANK           Other Lenders              TRUST CO.                 TERRABANK, NA
        COMPASS BANK                    PNC BANK, NATIONAL                               FIRSTCITY BANK              THE ROYAL PALM BANK
                                                                  1ST NATIONAL BANK
                                        PRIME BANK                  OF SOUTH FLORIDA
                                                                                           OF COMMERCE
                                                                                         FLORIDA BUSINESS
                                                                                                                       OF FLORIDA
                                                                                                                     U.S. CENTURY BANK
                                                                                                                                                    SBA TOP LENDERS
                                        RBC BANK (USA)            ANDEREN BANK             BANK                      UNION STATE BANK
          OF MIAMI                                                APOLLO BANK
        CORNERSTONEBANK                 REGENT BANK                                      FLORIDA CENTRAL             USAMERIBANK
                                        REGIONS BANK              BAC FLORIDA BANK         CREDIT UNION              USSFFEDERAL CREDIT
        ENCORE NATIONAL                                           BANCO INTERNACIONAL
          BANK                          RIDGESTONE BANK                                  FLORIDA TRADITIONS            UNION
                                        SABAL PALM BANK             DE COSTA RICA, SA      BANK                      VALLEY BANK
        EUROBANK                                                  BANK LEUMI USA
        EXCEL NATIONAL BANK             SPIRIT OF TEXAS BANK,                            FLORIDIAN                   VALRICO STATE BANK
                                          SSB                     BANK OF BELLE GLADE      COMMUNITY BANK            WAUCHULA STATE
        FIDELITY BANK                                             BANK OF CORAL
        FIFTH THIRD BANK                STONEGATE BANK                                   GRAND BANK & TRUST            BANK
                                        SUNTRUST BANK               GABLES                 OF FLORIDA
        FIRST AMERICA BANK                                        BANK OF NAPLES
        FIRST AMERICAN                  SUPERIOR FINANCIAL                               GREAT EASTERN BANK
                                          GROUP, LLC              BBU BANK                 OF FLORIDA
          BANK-ILLINOIS                                           BROWARD BANK OF
        FIRST AMERICAN                  SYNOVUS BANK                                     GROW FINANCIAL
                                        TD BANK, NATIONAL           COMMERCE               FEDERAL CREDIT
          BANK-IOWA                                               CAJA MEDITERRANEO
        FIRST BANK,                       ASSOCIATION                                      UNION

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