San Diego - _SmallBusiness_3

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    The Small Business Jobs Act:
    Putting America
    Back to Work
    page 30
    PAGE   Getting Started

    PAGE   SBA Loan Programs

    PAGE   Government Contracting
    32 • connect with us @

                                                                                                 Publishers of Small Business Resource

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

                                                           2011 SAN DIEGO                         President/CEO
                                                                                                  Joe Jensen         

     FEATURES                                                                                     English Small Business Resource Advertising
                                                                                                  Nicky Harvey  

     4           Introduction                            37    Disaster Recovery
                                                                                                  Martha Theriault
                                                                                                  Kenna Rogers
                 • 4 Administrator’s Letter                    There are several types of
                                                               assistance available to            Production
                 • 5 Regional Administrator’s
                                                               qualified applicants.              Diane Traylor      
                 • 6 Director’s Message                  38    Advocacy
                                                               Watching out for small business
     9           Getting Started                               interests.                         SBA’s Marketing Office:
                                                                                                  The Small Business Resource Guide is published
                 Everything you need to know
                 about setting up, marketing
                                                         39    Other Sources of
                                                                                                  under the direction of SBA’s Office of Marketing and
                                                                                                  Customer Service.
                 and managing the your business.               Assistance
                                                                                                  Editorial Content
                                                               Chambers of Commerce can be
                 12     Franchising                                                     
                                                               a vital resource for the small
                 13     Writing a business plan
                                                               business owner.                    Graphic Design
     15          Regulations                             41    Lender Listing                     Shellehamer
                 Knowing the Rules. Paying attention
                                                                                                  SBA’s participation in this publication is not an
                 to detail can save time and money.                                               endorsement of the views, opinions, products or
                                                                                                  services of the contractor or any advertiser or other
                                                                                                  participant appearing herein. All SBA programs and
     21          Financing                                                                        services are extended to the public on a
                                                                                                  nondiscriminatory basis.
                 Options to start or grow
                 your business.
                                                                                                  Printed in the United States of America
                 29     SBA Loan Programs
                                                                                                  While every reasonable effort has been made to
                        Quick Reference                                                           ensure that the information contained herein was
                                                                                                  accurate as of the date of publication, the information
                                                                                                  is subject to change without notice. Neither the
     32          Contracting Opportunities                                                        contractor, the federal government, or agents thereof
                                                                                                  shall be held liable for any damages arising from the
                 SBA is working to ensure small                                                   use of or reliance on the information contained in this
                 businesses obtain their fair share of
                 government contracts and
                                                         “Everything you need to know             publication.

                 subcontracts with a number
                                                           about setting up, marketing            SBA Publication # MCS-0018

                 of programs.                              and managing the revenue of            This publication is provided under SBA Contract
                                                                                                  # SBAHQ05C0014.
                 33 HUBZone                                your business. ”

                 36 Glossary of Terms

                                     Ways To Evaluate Your
                                     Strengths and Weaknesses
                                                                                Page 10
Visit us online:                                                                        SAN DIEGO Small Business Resource —         3
                                               The U.S. Small Business Administration

                                              FROM THE ADMINISTRATOR

                      ntrepreneurs and small                                social media presence. I encourage you to check

                      business owners like you
                      continue to create jobs and
                  drive our economy forward.
                                                                            out the latest SBA news by joining our
                                                                            communities on Facebook, Twitter and YouTube.
                                                                            Through these new online tools, we are more
                  This resource guide has                                   directly engaged in a dialogue with the small
                  everything you need to know                               business community to learn how SBA can do
                  about the tools and resources                             even more to help you grow your business.
                  that SBA has to offer: from
                  getting an SBA loan, to                                   The fact is, about two of every three jobs created
securing a federal contract, to using our                                   in America each year come from small
extensive network of 14,000 SBA-affiliated                                  businesses, and more than half of working
counselors. Through these “3 Cs” of capital,                                Americans own or work for a small business.
contracts and counseling, we help thousands of                              With your help, we can make sure the SBA is
people every day.                                                           meeting its mission and that small businesses
                                                                            like yours will continue to grow and lead our
The new Small Business Jobs Act that President                              nation to full economic recovery, as they’ve done
Obama signed a few months ago strengthens                                   throughout U.S. history.
SBA's efforts in each of these areas. For
example, we permanently raised the top SBA                                  If you have any questions that aren’t answered in
loan sizes in our two most popular programs                                 this guide, please go to, or call or
from $2 million to $5 million. Also, the Jobs Act                           walk in to your local district office. We stand
strengthens the federal government’s ability to                             ready to help you in whatever way we can.
ensure that more small businesses can compete
for federal contracts on a level playing field.                             Warm regards,

In addition, we recently overhauled Now you can find information                                   Karen G. Mills
about SBA programs more quickly than ever                                   Administrator
before. At the same time, we beefed up our                                  Small Business Administration

    About the SBA
    Your Small Business Resource
    Every year, the U.S. Small Business Administration and its nationwide      • Growing a Business
    network of partners help millions of potential and current small           • Opportunities in Contracting
    business owners start, grow and succeed.                                   • Recovering From Disaster
                                                                               • A Voice for Small Business in Government
    Resources and programs targeting small businesses provide an
    advantage necessary to help small businesses effectively compete in     Visit SBA online at for 24/7 access to small business
    the marketplace and strengthen the overall U.S. economy.                news, information and training for entrepreneurs.

    SBA offers help in the following areas:                                 All SBA programs and services are provided on a nondiscriminatory
      • Starting a Business                                                 basis.
      • Financing a Business

4 — Small Business Resource   SAN DIEGO                                                                            Visit us online:
                                                  The U.S. Small Business Administration

                                           FROM THE REGIONAL ADMINISTRATOR

                                           Greetings!                 of the world is becoming more
                                                                      competitive, we owe it to the next
                           The Small Business                         generation of Americans to rise to the
                           Administration (SBA)                       challenge and be big dreamers and
                           has many programs                          even bigger doers. Our nation’s history
                           and services available                     is full of individuals who dared to be
                           to business owners and                     innovative and entrepreneurial. SBA is
                           entrepreneurs. This                        ready to help you add your name to the
                           resource guide is a                        list.
           perfect example. It tells you about the
           tools the SBA has to offer to help you                     In addition to the helpful information
           build your business, create jobs and                       in this guide, I invite you to be a part of
           drive our economy forward.                                 our growing online community. We’ve
                                                                      redesigned our website ( to be
           You may have heard about SBA’s “three                      more helpful and personalized. We also
           C’s” - capital, contracts and counseling.                  post frequent updates on our Facebook
           Over the past two years, we’ve been                        ( and Twitter
           working very hard in all of these areas.                   ( sites. I
           Through the Recovery Act and the                           encourage you to ‘like’ and ‘follow’ us
           Small Business Jobs Act, we helped put                     because I believe that with your input
           more than $42 billion in lending                           and direct engagement, together we
           support in the hands of small business                     can make sure the SBA is meeting its
           owners. Our network of 14,000 SBA-                         mission to help small businesses start,
           affiliated counselors assists thousands                    grow and succeed.
           of small businesses daily with anything
           from creating a startup to succession                      If you have any questions or want
           planning. Through our business                             additional information, please visit our
           development and certification                              website, call us, or pay a visit to your
           programs, small businesses earned                          local district office. We are ready to help
           billions of dollards in federal contracts.                 in any way possible.

           This work is critical to our nation’s                      Warm regards,
           prosperity.We know that roughly two
           out of every three jobs created in
           America come from small businesses,
           and more than half of all working                          Elizabeth Echols
           Americans either own or work for a                         Regional Administrator
           small business. At a time when the rest                    Small Business Administration

Visit us online:                                                       SAN DIEGO Small Business Resource —   5
                                                         Message From The District Director

SBA Staff Listing
                                                                             Rules For Success
EXECUTIVE DIRECTION           Richard Blum                                   Like today’s small businesses, large corporate success stories
                              Business Opportunity                           started with only an entrepreneur and a dream.
Ruben Garcia                  Specialist
District Director             619-727-4872
                              Kathleen Moran
                                                                                                 modifications, worth $183.6

Anthony Vigil                 Receptionist                           our success is very
Deputy District Director      619-727-4883
                                                                     important to the U.S.       million, were awarded to small
                                                                     Small Business              businesses in San Diego and
                              BUSINESS DEVELOPMENT
                                                                     Administration and to       Imperial Counties.
COUNSEL                                                              our community. You
                              Juliane Talley             play a key role in providing jobs,      I would like to introduce you to
Terrill Ashker                Supervisor,
                                                         products, and services in our           the resources available in San
District Counsel              Business Development
619-727-4881                  619-727-4870               economy. SBA and its network of         Diego and Imperial counties.
                                                         partners can help you succeed by        Whether you are in business now
GOVERNMENT                    Maria Hughes               providing access to capital,            or are thinking of starting a small
CONTRACTING                   Business Development
                                                         counseling, training, and               business, the SBA and its resource
Linda Coakley
                              619-727-4871               opportunities for government            partners can help you to grow
Procurement Center  
                                                         contracting.                            your company.
619-727-4868                  Cynthia Harris         Business Development       I am proud to note that in fiscal       Please take a few minutes to
                                                         year 2010, ending September 30,         review this guidebook and learn all
BUSINESS DEVELOPMENT          619-727-4884
TEAM 1                   the San Diego District Office           that is available to you.
Rosa Rodarte                  Bonnie Valentine           guaranteed loans worth $228.6
Supervisor,                   Business Development       million with the assistance of its      Wishing you great success!
Business Development          Specialist
619-727-4877                  619-727-4878               participating lenders and certified   development companies.                  Sincerely,
                                                         Approximately 26,000 clients
                                                         received business counseling
                                                         assistance and training through
  We Welcome Your                                        our resources partners, SCORE:          Ruben R. Garcia
  Questions                                              Counselors to America’s Small
                                                                                                 District Director of
                                                         Business, and the Small Business
  For extra copies of this publication or
                                                         Development Center Network of           SBA's San Diego District Office
  questions please contact:
                                                         San Diego and Imperial Counties.
  San Diego District Office                              Additionally, 665 contracts and
  550 West C Street, Suite 550
  San Diego, CA 92101

  Tel: 619-557-7250 or 619-727-4883
  Fax: 619-557-5894


6 — Small Business Resource   SAN DIEGO                                                                        Visit us online:
                                                                                                            The SBA helps business

  Doing Business in San Diego
                                                                                                            owners grow and expand
                                                                                                            their businesses every day.

                                                                                                          (SBDC). They also conduct training
                                                                                                          events throughout the district - some
                                                                                                          require a nominal registration fee.

                                                                     Front - L to R: Anthony Vigil,
                                                                                                          Assistance to businesses owned and
                                                                     Ruben Garcia and Terrill Ashker.     controlled by socially and economically
                                                                     Back - L to R: Rosa Rodarte,         disadvantaged individuals through the
                                                                     Kathleen Moran, Maria Hughes,        8(a) Business Development Program.
                                                                     Cynthia Harris, Bonnie
                                                                     Valentine and Linda Coakley.         A Women's Business Ownership
                                                                     Above - L to R: Richard Blum,        Representative is available to assist
                                                                     Juliane Talley.
                                                                                                          women business owners. Please contact
                                                                                                          Cynthia Harris at 619-727-4884 or e-mail:
THE SAN DIEGO DISTRICT OFFICE                       619-727-4870. For information on            
The San Diego District Office is                    financing, please e-mail:
responsible for the delivery of SBA's                                          Special loan programs are available for
many programs and services. The District                                                                  businesses involved in international
Director is Ruben R Garcia. The District            SERVICES AVAILABLE                                    trade. Please contact Maria Hughes at
Office is located at 550 West C Street,             Financial assistance for new or existing              619-727-4871 or email:
Suite 550, San Diego, CA. Office hours              businesses through guaranteed loans         
are from 8:00 AM until 4:30 PM, Monday              made by area bank and non-bank
through Friday.                                     lenders.                                              A Veterans Affairs Officer is available to
                                                                                                          assist veterans. Please contact Richard
CONTACTING THE SAN DIEGO                            Free counseling, advice and information               Blum at 619-727-4872 or e-mail:
DISTRICT OFFICE                                     on starting, better operating or expanding  
                                                    a small business through the SCORE
For program and service information,
                                                    Counselors to America’s Small Business
please contact the Marketing Division at
                                                    and Small Business Development Centers

                                                             SuccESS STORY
                                                             Corporate Helicopters

                                                             Owners: Deann and Ivor Shier

Deann and Ivor Shier founded Corporate              service center. They survived through a rough         business development efforts paid off once the
Helicopters in 1990. Their passion for flying       time, after the 2001 9/11 terrorist attack. For       regulation lightened and air space opened for
helicopters combined with an unwavering focus       quite a while after 9/11 regulations, for all         regular business, and since that time Corporate
on the client has resulted in the growth of the     aircraft, were very strict and air space was          Helicopters has grown to provide a wide variety
business to a fleet of a dozen helicopters and      closed, virtually grounding Corporate                 of services, being marketed to different
thirty employees. The company offers a diverse      Helicopters which created issues with cash flow       demographics.
range of services including charter, tour, film,    because of lost flights. In July of 2002, Corporate
training and utility projects. Corporate            Helicopters was approved for a $263,700.00 SBA        In addition to the EIDL Corporate Helicopters
Helicopters has provided services for the Super     Economic Injury Disaster Loan (EIDL) that             was approved for a $185,000.00 SBA 7(a)
Bowl, X- Games and the America’s Cup Yachting       provides funding for businesses that suffered         revolving line of credit, in 2004, which she used
Races; as well as flying a wide range of            financially due to a recently declared disaster.      to improve cash flow while fulfilling large
customers across the U.S. and Mexico including      Utilizing the funds from the EIDL, Ms. Shier was      contracts and also during transactions involving
but not limited to celebrities, firefighters,       able to retain her employees by using them in         the buying and selling of helicopters.
vacationers, television news reporters and          other areas of the business, such as marketing
critically ill patients. The company is also well   and various aspects of developing the business.       Deann Shier’s entrepreneurial spirit created an
known and respected in the film industry,           She also took this down time to explore new           opportunity for growth when she utilized and
having played key aerial filming roles in such      avenues for the helicopter business, taking           benefitted from a variety of SBA’s federally
films as The DaVinci Code, Titanic, Master and      advantage of the services offered by SCORE            funded programs, all of which aided in the
Commander, and Collateral just to name a few.       Counselors to America’s Small Business, an            current success of Corporate Helicopters.
                                                    organization of experienced volunteer business
Having tapped into the many different services      men and women, funded in part by the U.S.             For information about all of the programs and
that helicopters can provide, the company           Small Business Administration, to provide             services offered through the SBA, visit
expanded into becoming a helicopter sales and       technical assistance to entrepreneurs. Deann’s

Visit us online:                                                                               SAN DIEGO Small Business Resource —   7

                                           GETTING STARTED
                              The SBA Can Help You Start and Expand Your Business
                                                                                             country. To find your local district office
                                                                                             or SBA resource partner, visit
                                                                                                These professionals can also help with
                                                                                             writing a formal business plan, locating
                                                                                             sources of financial assistance, managing
                                                                                             and expanding your business, finding
                                                                                             opportunities to sell your goods or
                                                                                             services to the government, and
                                                                                             recovering from disaster.

                                                                                             sba’s resource partners
                                                                                                SCORE is a national network of more
            very year, the U.S. Small           • More than 20 free online courses and       than 12,000 entrepreneurs, business

E           Business Administration and           workshops available.                       leaders and executives who volunteer as
                                                • Online, interactive assessment tools are   mentors to America’s small business.
            its nationwide network of
                                                  featured and used to direct clients to     SCORE helps entrepreneurs start
            resource partners help                appropriate training.                      businesses, grow companies and create
            millions of potential and            Course topics include a financial           jobs in local communities.
existing small business owners start,         primer keyed around SBA’s loan-                   SCORE matches you with a mentor
grow and succeed.                             guarantee programs, a course on                whose personality and skills are a good
   Whether your target market is global       exporting, and courses for veterans and        fit for your business needs. Whether you
or just your neighborhood, the SBA and        women seeking federal contracting              are a start-up business or growing
its resource partners can help at every       opportunities, as well as an online            company, you can meet with a mentor
stage of turning your entrepreneurial         library of business publications and           for free and confidential advice.
dream into a thriving business.               articles.                                         SCORE mentors are part of your local
   If you’re just starting, the SBA and its      Find the SBTN at                            community. The volunteer experts
resources can help you with loans and                          understand local business licensing
business management skills. If you’re                                                        rules, economic conditions and lending
already in business, you can use the          Where To Go To Get Started                     standards. You will find a SCORE office
SBA’s resources to help manage and               Our resources include the SBA’s             in your community and often a location
expand your business, obtain                  district offices serving every state and       at your local Chamber of Commerce,
government contracts, recover from            territory, over 350 chapters of SCORE –        bank or SBA office.
disaster, find foreign markets, and make      Counselors to America’s Small                     SCORE mentoring is available at over
your voice heard in the federal               Businesses, approximately 900 Small            350 offices nationwide. SCORE offers
government.                                   Business Development Centers,                  local small business workshops at
   You can access SBA information             approximately 110 Women’s Business             modest fees on popular topics such as
                                              Centers and 16 Veterans Business               increasing sales, managing cash flow
online 24 hours a day at or
                                              Outreach Centers located across the            and marketing your business.
visit one of our local offices for

SBA’s Online Training                                                                    • You get to be your own boss.
   SBA provides small businesses with
free online courses, workshops, learning         ON THE UPSIDE                           • Hard work and long hours directly benefit you, rather
tools and business-readiness                                                               than increasing profits for someone else.
assessments.                                     It’s true, there are a lot of           • A new venture is exciting.
   Key Features of the Small Business            reasons not to start your own
Training Network:                                business. But for the right             • Earnings and growth potential are unlimited.
  Training is available anytime and              person, the advantages of
                                                 business ownership far                  • Running a business will provide endless
anywhere—all you need is a computer                                                        variety, challenges and opportunities to learn.
with Internet access.                            outweigh the risks.

Visit us online:                                                                    SAN DIEGO Small Business Resource —    9
   EVALUATE                                  SCORE has helped more than 8.5
                                           million entrepreneurs nationwide. You
                                                                                           division of the California Community
                                                                                           Colleges. The network of CITD offices
                                           can count on SCORE as a trusted                 provide value-added assistance to
                                           resource to offer in-depth mentoring,           businesses and entrepreneurs to
  Start by evaluating your                 sound advice and guidance to tools and          increase their capacity to export or
                                           resources that can help you succeed as a        import.
  strengths and weaknesses                 business owner.                                   The CITD network directly and
                                             For 24/7 access to advice and online          through partnerships with state and
                                           webinars on topics such as starting,            federal agencies like the CDFA, USCS,
                                           growing, marketing and e-commerce for           and Exim Bank, serves small &
                                           small business, visit SCORE online.             medium-size businesses and
  1. Are you a self-starter?               With expertise in more than 600 skill           entrepreneurs in the state through trade
     It will be up to you – not            areas, you can find a SCORE mentor              missions, low-cost training, trade
                                           online at or at one of            research, and limited free consulting.
     someone else telling you – to         SCORE’s offices. Call 1-800-634-0245            San Diego/Imperial CITD
     develop projects, organize your       for the office nearest you.                        Victor Castillo, Director
     time and follow through on                                                               880 National City Blvd.
                                           SCORE COUNSELING CENTERS                           National City, CA 91950
     details.                                                                                 619-482-6391 • 619-216-6703 Fax
                                           San Diego Chapter Office                 
  2. How well do you get along                c/o U.S. Small Business Administration
                                              550 W. C St., Ste. 550                          Serving counties of San Diego and Imperial.
     with different personalities?
                                              San Diego, CA 92101
     Business owners need to develop
     working relationships with a
                                                                                           small business
     variety of people including                                                           Development centers
                                           Satellite Counseling:                              The Small Business Development
     customers, vendors, staff,               Carlsbad Chamber
     bankers, lawyers, accountants and                                                     Center program has been vital to SBA’s
                                              5934 Priestly Dr.
                                              Carlsbad, CA 92008                           entrepreneurial outreach for more than
     consultants. Can you deal with a                                                      25 years. It has become one of the
     demanding client, an unreliable                                                       largest professional small business
     vendor or a cranky staff person?         Escondido Chamber                            management and technical assistance
                                              720 N. Broadway                              networks in the nation. With nearly 900
  3. How good are you at making
                                              Escondido, CA 92025                          locations across the country, SBDCs
                                              760-745-2125                                 offer existing and future entrepreneurs
                                                                                           free one-on-one expert business advice
     Small business owners are                National City Chamber
                                              901 National City Blvd.                      and low-cost trainings. All counseling
     required to make decisions               National City, CA 91950                      and training sessions are conducted by
     constantly, often quickly, under         619-477-9339                                 qualified small business professionals
     pressure.                                                                             and many are offered online.
                                              Poway Chamber                                   A nationwide study of the impact of
                                              13381 Poway Rd.                              the SBDC program highlights the
  4. Do you have the physical and             Poway, CA 92064                              results of SBDC assistance. The study
     emotional stamina to run a               858-748-0016
                                                                                           illustrates the significance of the SBDC
     business?                                San Diego East County Chamber                program's focus on establishing long-
     Business ownership can be                201 S. Magnolia Ave.                         term counseling relationships with
     challenging, fun and exciting. But       El Cajon, CA 92021                           clients. Of the clients surveyed, more
                                              619-440-6161                                 than 80 percent reported that the
     it’s also a lot of hard work. Can                                                     information they received from their
     you face 12-hour workdays six or         SCORE Imperial Valley                        SBDC counselor was valuable. Similarly,
     seven days a week?                       1405 N. Imperial Ave., Ste. 1                more than 50 percent reported that
                                              El Centro, CA 92243
                                              760-337-2692                                 SBDC assistance was useful with the
  5. How well do you plan and                                                              decision to start a business. More than
                                                                                           40 percent of long-term clients, those
     organize?                                To request a counseling appointment at any
                                              of the above locations, or by telephone,     receiving 5 hours or more of counseling,
     Research indicates many                  e-mail or Web cam, complete the form at:     reported an increase in sales and 38
     business failures could have been        percent of long term clients reported an
     avoided through better planning.                                                      increase in profit margins.
     Good organization – of financials,    California's Centers for                           SBDC counseling generally consists of
     inventory, schedules, production      International Trade Development                 assistance with business plans, access to
                                           (CITD)                                          capital, franchising, manufacturing,
     – can help avoid pitfalls.
                                             California's Centers for International        international trade, high-tech endeavors,
                                           Trade Development (CITD) are funded             contracting, energy efficiency,
                                           by the State of California through the          marketing, technology and other growth
                                           economic and workforce development              strategies. SBDC training is geared

10 — Small Business Resource   SAN DIEGO                                                                  Visit us online:
toward the needs of the local business        Small Business Development Center                    of core business topics is facilitated by an
community, focusing on the                    and the Center for International Trade               experienced business consultant. In this
fundamentals required to start,               Development (SBDC & CITD)                            workshop setting, you will learn concepts
purchase, operate and grow a small               Southwestern College
                                                 Higher Education Center                           and skills that you can immediately
business.                                        880 National City Blvd., Ste. 103                 apply to your business. Plus you will
   Particular emphasis in the SBDC               National City, CA 91950                           gain valuable insight from the other
program includes green business                  Director: Victor Castillo                         business owners in your class. Guest
technology, disaster recovery and                619-482-6391                                      speakers, a complete set of training
preparedness, importing and exporting, 
                                                                                                   materials, on-line support and 1-on-1
electronic commerce, technology transfer
                                                                                                   consulting further enhance your
and regulatory compliance. A number of           Serving all of San Diego County South of
                                                 Interstate 8. (International Trade services       training. Veterans contact the SBDC
centers in SBDC network have
                                                 delivered throughout San Diego and Imperial       nearest to you for information about
specialized programs dedicated to                Counties.)                                        assistance with tuition and fees. Find
technology assistance and/or
international trade. The SBDC                                                                      out how you can use your VA education
                                              Small Business Development Center
programs also promote green buildings         North San Diego County (SBDC NSDC)                   benefits for entrepreneurship training
and green job growth, provide assistance         1823 Mission Ave.                                 at:
to veterans and communities affected by          Oceanside, CA 92058
defense cutbacks, and reach out to               760-795-8740                                        Outreach to Veteran
communities that have been negatively            Director: Sudershan Shaunak                       Entrepreneurs: Because many
affected by industry cutbacks, closures or                                                         entrepreneurs do not have the luxury of
natural disasters.                               Serving all of San Diego County North of          spending a lot of time and effort
   During the past quarter century,              Interstate 8.                                     attending classes, the SBDC offers
through a unique mix of federal funding                                                            several workshops and training sessions.
along with matching state and private         Imperial Valley Small Business                       Enjoy the camaraderie and peer
sector resources, the program has             Development Center (IVSBDC)                          networking of these face-to-face classes
increased its return on investment.              301 N. Imperial Ave., Ste. B
                                                 El Centro, CA 92243                               at any of the SBDC’s in the San Diego
Through federal grants, the SBDCs in                                                               and Imperial Network. Additional
every state and territory provide the            Director: Gustavo Reza                            resources are available through our
foundation for the economic growth of                                     affiliate partner, the Veterans
small businesses. These small                                              Corporation. Visit for
businesses in turn advance local and             Serving all of Imperial County.
                                                                                                   additional online resources available.
regional economic development through
the generation of business revenues, job      SBDC Network for San Diego
creation and job retention. In fiscal 2010,   & Imperial Counties                                  Women’s business centers
                                                 Southwestern College
SBDC business advisors helped more               900 Otay Lakes Rd., Bldg. 1681                       The SBA’s Women Business Center
than 13,600 entrepreneurs start new              Chula Vista, CA 91910                             program is a network of approximately
businesses or roughly 37 new business            Debbie P. Trujillo, Regional Director             110 community-based centers which
starts per day.                                  619-482-6388 • 619-216-6692 Fax                   provide business training, counseling,
   The SBDC network provided                                          mentoring and other assistance geared
counseling services to over 107,000,                                     toward women, particularly those who
now entrepreneurs, approximately                                                                   are socially and economically
101,000 existing businesses and training        The Small Business Development                     disadvantaged. While the services are
services to approximately 380,000 clients     Center Network (SBDC Network)                        focused on women, approximately 30% of
in fiscal 2010.                               provides oversight of three SBDC’s                   the WBC clients are men. WBCs are
   In fiscal 2010, SBDC clients acquired      delivering services in the San Diego and             located in nearly every state and U.S.
loans, venture capital and the infusion of    Imperial counties.                                   territory and are partially funded
equity totaling $3.8 billion, an increase       Special programs that are offered                  through a cooperative agreement with
over the $3.6 billion SBDC clients            throughout the SBDC Network include:                 the SBA.
obtained in fiscal 2008 and in 2009                                                                   To meet the needs of women
combined. Of the $3.8 billion in capital        NxLevel Training: NxLevel is an                    entrepreneurs, the WBCs offer services
obtained by SBDC clients, over 19% took       accelerated program developed for the                at convenient times and locations,
the form of SBA guaranteed loans with         busy entrepreneur. A training schedule               including weekends. Many WBCs are
81% in capital acquired from banks and                                                             located at non-profit host organizations
conventional lenders as well as angel                                                              that offer a wide variety of services in
investors and venture capitalists.
   For information on the SBDC                                                                 • Faster, better search capabilities
program, visit
  The SBDC Network for San Diego and
                                                SBA’S WEBSITE                                  • Information tailored to your needs
Imperial Counties has three centers to                                                         • News about SBA programs & services
                                                Go to SBA’s new site today,
serve you:                                      featuring:
                                                                                               Some pages may change URLs on the upgraded site. Please
                                                                                               consult or your local SBA district office for

Visit us online:                                                                         SAN DIEGO Small Business Resource —       11
addition to the services provided by the
WBC. Many of the WBCs also offer
                                             is entrepreneursHip For                           Once you’ve answered those questions,
                                                                                             you should consider what type of
training and counseling and provide          You?                                            business you want to start. Businesses
materials in different languages in order       There is simply no way to eliminate          can include franchises, at-home
to meet the diverse needs of the             all the risks associated with starting a        businesses, online businesses, brick-and-
communities they serve.                      small business, but you can improve             mortar stores or any combination of
In fiscal year 2010, the WBC program         your chances of success with good               those.
counseled and trained more than              planning, preparation, and insight. Start
160,000 clients, creating local economic     by evaluating your strengths and                FrancHising
growth and vitality.                         weaknesses as a potential owner and
                                                                                                There are more than 3,000 business
   WBCs often deliver their services         manager of a small business. Carefully
                                                                                             franchises. The challenge is to decide on
through long term training or group          consider each of the following questions:
                                                                                             one that both interests you and is a good
counseling, both of which have shown to        • Are you a self-starter? It will be
                                                                                             investment. Many franchising experts
be effective. WBC training courses are           entirely up to you to develop projects,
                                                                                             suggest that you comparison shop by
often free or are offered at a small fee.        organize your time, and follow through
                                                                                             looking at multiple franchise
Some centers will also offer scholarships        on details.
                                                                                             opportunities before deciding on the one
based on the client’s needs                    • How well do you get along with
                                                 different personalities? Business
                                                                                             that's right for you.
While most WBCs are physically located                                                          Some of the things you should look at
                                                 owners need to develop working
in one designated location, a number of                                                      when evaluating a franchise: historical
                                                 relationships with a variety of people
WBCs also provide courses and                                                                profitability, effective financial
                                                 including customers, vendors, staff,
counseling via the Internet, mobile                                                          management and other controls, a good
                                                 bankers, employees, and professionals
classrooms and satellite locations.              such as lawyers, accountants, or            image, integrity and commitment, and a
   To find the nearest SBA WBC or to             consultants. Can you deal with a            successful industry.
learn more about SBA programs and                demanding client, an unreliable                In the simplest form of franchising,
services, visit               vendor, or a cranky receptionist if your    while you own the business, its operation
                                                 business interests demand it?               is governed by the terms of the franchise
microloan program                              • How good are you at making                  agreement. For many, this is the chief
                                                                                             benefit for franchising. You are able to
intermeDiaries                                   decisions? Small business owners are
                                                 required to make decisions constantly       capitalize on a business format, trade
  The Microloan program is operated              – often quickly, independently, and         name, trademark and/or support system
through a network of approximately 160           under pressure.                             provided by the franchisor. But you
intermediaries nationwide. It provides         • Do you have the physical and                operate as an independent contractor
business based training and technical            emotional stamina to run a business?        with the ability to make a profit or
assistance to very small                         Business ownership can be exciting,         sustain a loss commensurate with your
“microbusinesses” –10 employees or               but it's also a lot of work. Can you face   ownership.
fewer – that are interested in starting or       six or seven 12–hour workdays every            If you are concerned about starting an
growing their businesses. Such training          week?                                       independent business venture, then
and technical assistance includes general      • How well do you plan and organize?          franchising may be an option for you.
business education, business planning            Research indicates that poor planning       Remember that hard work, dedication
training, industry-specific training, and        is responsible for most business            and sacrifice are key elements in the
other support for new and growing                failures. Good organization — of            success of any business venture,
microbusinesses. Microloan program               financials, inventory, schedules, and       including a franchise.
intermediaries also provide small                production — can help you avoid many           For more information visit
business loans of up to $50,000. The
                                               • Is your drive strong enough? Running
program is available to women, low-
income, minority, and veteran
                                                 a business can wear you down
                                                 emotionally. Some business owners
                                                                                             Home-baseD businesses
entrepreneurs and others interested in           burn out quickly from having to carry          Going to work used to mean traveling
starting a microbusiness.                        all the responsibility for the success of   from home to a plant, store or office.
                                                 their business on their own shoulders.      Today, many people do some or all their
are You rigHt For small                          Strong motivation will help you             work at home.
business oWnersHip?                              survive slowdowns and periods of
                                                 burnout.                                    Getting Started
   Most new business owners who
                                               • How will the business affect your              Before diving headfirst into a home-
succeed have planned for every phase of
                                                 family? The first few years of business     based business, you must know why you
their success. Thomas Edison, the great          start-up can be hard on family life. It's   are doing it. To succeed, your business
American inventor, once said, “Genius is         important for family members to know        must be based on something greater
1 percent inspiration and 99 percent             what to expect and for you to be able to    than a desire to be your own boss. You
perspiration.” That same philosophy also         trust that they will support you during     must plan and make improvements and
applies to starting a business.                  this time. There also may be financial      adjustments along the road.
   First, you’ll need to generate a little       difficulties until the business becomes
                                                                                                Working under the same roof where
bit of perspiration deciding whether             profitable, which could take months or
                                                                                             your family lives may not prove to be as
you’re the right type of person to start         years. You may have to adjust to a
                                                 lower standard of living or put family
                                                                                             easy as it seems. One suggestion is to set
your own business.                                                                           up a separate office in your home to
                                                 assets at risk.
                                                                                             create a professional environment.

12 — Small Business Resource   SAN DIEGO                                                                   Visit us online:
Ask yourself these questions:                     Also remember, if you have employees        • Discuss your break-even point.
  • Can I switch from home                     you are responsible for withholding            • Explain your personal balance sheet
    responsibilities to business work                                                           and method of compensation.
                                               income and social-security taxes, and for
                                                                                              • Discuss who will maintain your
  • Do I have the self-discipline to           complying with minimum wage and
                                                                                                accounting records and how they will
    maintain schedules while at home?          employee health and safety laws.                 be kept.
  • Can I deal with the isolation of              If you’re convinced that opening a
    working from home?                                                                        • Provide “what if” statements
  • Am I a self-starter?                       home-based business is for you, it’s time        addressing alternative approaches to
                                               to create your business plan. The SBA            potential problems.
                                               and its resource partners, such as
                                               SCORE, SBDCs, VBOCs and WBCs can             Operations
         Need more help                        help make the process easier.
                                                                                              • Explain how the business will be
                                                                                                managed day-to-day.
         writing a business plan?                                                             • Discuss hiring and personnel
                                               Writing a business plan                          procedures.
                                                                                              • Discuss insurance, lease or rent
  Visit                                           After you’ve thought about what type          agreements, and issues pertinent to for            of business you want, the next step is to        your business.
  more information on writing a business       develop a business plan. Think of the          • Account for the equipment necessary
  plan.                                        business plan as a roadmap with                  to produce your goods or services.
                                               milestones for the business. It begins as      • Account for production and delivery of
  You can also find help from SCORE by         a pre-assessment tool to determine               products and services.
  visiting                       profitability and market share, then
  and clicking on “Business Tools.”            expands as an in-business assessment         Concluding Statement
                                               tool to determine success, obtain               Summarize your business goals and
                                               financing and determine repayment            objectives and express your
  Veterans can get help writing a business                                                  commitment to the success of your
  plan by visiting their local Veteran’s       ability, among other factors.
                                                                                            business. Once you have completed
  Business Development Center. Find               Creating a comprehensive business
                                                                                            your business plan, review it with a
  yours at                   plan can be a long process, and you need
                                                                                            friend or business associate and
                                               good advice. The SBA and its resource        professional business counselor like
  Women can get help at their local            partners, including Small Business           SCORE, WBC or SBDC
                                               Development Centers, Women’s                 representatives, SBA district office
  Women’s Business Center. Find yours at
                                               Business Centers, Veterans Business          business development specialists or
                                               Outreach Centers, and SCORE, have the        veterans business development
                                               expertise to help you craft a winning        specialists.
Legal Requirements                             business plan. SBA also offers online           Remember, the business plan is a
   A home-based business is subject to         templates to get you started.                flexible document that should change
many of the same laws and regulations             In general, a good business plan          as your business grows.
affecting other businesses.                    contains:
Some general areas include:
                                               Introduction                                 reacHing unDerserveD
  • Zoning regulations. If your business
    operates in violation of them, you could
                                                 • Give a detailed description of the       communities
                                                   business and its goals.
    be fined or shut down.                       • Discuss ownership of the business and
                                                                                            Women business owners
  • Product restrictions. Certain products         its legal structure.                        Women entrepreneurs are changing
    cannot be produced in the home. Most         • List the skills and experience you       the face of America's economy. In the
    states outlaw home production of               bring to the business.                   1970s, women owned less than five
    fireworks, drugs, poisons, explosives,       • Discuss the advantages you and your      percent of the nation’s businesses.
    sanitary or medical products and toys.         business have over competitors.          Today, they are majority owners of about
    Some states also prohibit home-based                                                    a third of the nation’s small businesses
    businesses from making food, drink or      Marketing                                    and are at least equal owners of about
    clothing.                                    • Discuss the products and services your   half of all small businesses. SBA serves
   Be sure to consult an attorney and              company will offer.
                                                                                            women entrepreneurs nationwide
                                                 • Identify customer demand for your
your local and state departments of                                                         through its various programs and
                                                   products and services.
state, labor and health to find out which        • Identify your market, its size and
                                                                                            services, some of which are designed
laws and regulations will affect your              locations.                               especially for women.
business. Additionally, check on                 • Explain how your products and services      The SBA’s Office of Women’s Business
registration and accounting                        will be advertised and marketed.         Ownership serves as an advocate for
requirements needed to open your home-           • Explain your pricing strategy.           women-owned business. OWBO oversees
based business. You may need a work                                                         a nationwide network of 110 women’s
                                               Financial Management                         business centers that provide business
certificate or license from the state.           • Develop an expected return on            training, counseling and mentoring
Your business name may need to be                  investment and monthly cash flow for     geared specifically to women, especially
registered with the state. A separate              the first year.                          those who are socially and economically
business telephone and bank account are          • Provide projected income statements,     disadvantaged. The program is a public-
good business practices.                           and balance sheets for a two-year        private partnership with locally-based
                                                   period.                                  nonprofits and each tailors its services to

Visit us online:                                                             SAN DIEGO Small Business Resource —   13
meet the needs of its community.            service member to small business owner.       up to $2 million to eligible small
Women’s Business Centers serve a wide       Each of SBA's 68 district offices has         businesses to cover operating costs that
diversity of geographic areas, population   designated a veteran’s business               cannot be met due to the loss of an
densities, and economic environments,       development officer to help guide             essential employee called to active duty
including urban, suburban, and rural.       veterans, Reserve Component members           in the Reserves or National Guard.
Local economies vary from depressed to      and transitioning service members who            To ensure that veterans, service-
thriving, and range from metropolitan
                                            want to succeed in entrepreneurship.          disabled veterans and Reserve and
areas to entire states. Each Women’s
Business Center tailors its services to        Sixteen Veterans Business Outreach         National Guard member entrepreneurs
the needs of its individual community,      Centers located in California, Florida,       receive special consideration in all its
but all offer a variety of innovative       Guam, Louisiana, Massachusetts,               entrepreneurial programs and resources,
programs, often including courses in        Montana, Michigan, Missouri, New              the SBA has established an Office of
different languages. They provide           Jersey, New Mexico, New York, North           Veterans Business Development. OVBD
training in finance, management,            Carolina, North Dakota, Pennsylvania,         develops and distributes informational
marketing, and the Internet, as well as     Texas, and Washington provide online          materials for entrepreneurship such as
access to all of the SBA’s financial and    and in-person entrepreneurial                 the Veterans Business Resource Guide,
procurement assistance programs.            development services for veterans and         VETGazette, and Getting Veterans Back
                                            reservists such as business training,         to Work.
Business Laws and Regulatory                counseling and mentoring, pre-business           For more information or special
Assistance                                  plan workshops, feasibility analysis, and     assistance with government contracting,
   The SBA Home Page provides a link        referrals to additional small business        including programs for veterans and
to information regarding laws and           resources.                                    service-disabled veterans, please check
regulations pertaining to small                To learn more about the Veterans           the Contracting Opportunities section of
businesses, frequently asked questions,     Business Outreach program or find the         this publication.
forms, reports, statistics and studies,     nearest SBA VBOC, visit the SBA Web              SBA’s special financing program
listings and directories, SBA               site at                     targeted to the military community,
publications and communications with           SBA also partners with the                 Patriot Express has new and enhanced
Congress. Visit                                                          programs and services for veterans and
                                            Entrepreneurship Boot Camp for
                                                                                          members of the active and reserve
                                            Veterans With Disabilities at Syracuse
                                                                                          military community (including spouses)
center For FaitH-baseD anD                  University, University of Connecticut,        wanting to establish or expand small
communitY partnersHips                      Florida State University, Texas A&M           businesses. See the Financing section for
                                            University, UCLA, Purdue and
(cFbcp)                                     Louisiana State University to prepare
                                                                                          more information on Patriot Express.
   Faith-based and neighborhood             service-disabled veterans for business
organizations know their communities;       ownership. SBA has also recently              native american business
and they have earned the trust of the
people in their communities. Because of
                                            developed two partnerships which target       Development
                                            women veteran-entrepreneurs (V-WISE)             The Office of Native American Affairs
their credibility, they are uniquely
                                            and family members of Reserve                 (ONAA) ensures American Indians,
positioned to build awareness of
                                            Component members of the military             Alaska Natives and Native Hawaiians
programs that encourage
entrepreneurship, economic growth and       (Operation Endure and Grow).                  seeking to create, develop and expand
job creation.                                  SBDCs, SCORE and some WBCs also            small businesses have full access to the
   SBA is committed to reaching out to      provide targeted management assistance        necessary business development and
faith based and community                   to veterans who are current or                expansion tools available through the
organizations that are eligible to          prospective small business owners.            agency’s entrepreneurial development,
participate in the agency’s programs by     Many SBDCs have special programs for          lending, and contracting programs.
informing their congregants, members        veterans and SCORE also provides              ONAA provides a network of training
and neighbors about SBA’s programs.         resources and counseling services online      and counseling services and engages in
In particular, many faith-based and         at                             numerous outreach activities such as
community non-profit organizations can         The SBA offers special assistance for      tribal consultations, development and
provide a local financing option for                                                      distribution of educational materials,
                                            small businesses owned by activated
entrepreneurs by becoming SBA                                                             attendance and participation in
                                            Reserve and National Guard members.
Microloan Intermediaries. An SBA                                                          economic development events and
                                            Any self-employed Reserve or Guard            assisting these small businesses with
Microloan Intermediary often acts as a      member with an existing SBA loan can
bank for entrepreneurs and small                                                          SBA programs.
                                            request from their SBA lender or SBA             More information is available at
businesses that might otherwise be able     district office, loan payment deferrals,
to find access to capital.                                                      
                                            interest rate reductions and other relief
                                            after they receive their activation orders.
veterans anD reservists                        Additionally, the SBA offers special
business Development                        low-interest-rate financing to small
  The SBA offers a variety of services to   businesses when an owner or essential
American veterans who have made or          employee is called to active duty. The
are seeking to make the transition from     Military Reservist Economic Injury
                                            Disaster Loan Program provides loans

14 — Small Business Resource   SAN DIEGO                                                               Visit us online:

                             KNOWING THE RULES
                                Paying Attention to Detail Can Save Time and Money
                                                                                          what, if any, consultation is needed
                                                                                          between partners before major decisions,
                                                                                          and what happens when a partner dies.
                                                                                          Under a general partnership each
                                                                                          partner is liable for all debts of the
                                                                                          business. Profits are taxed as income to
                                                                                          the partners based on their ownership

                                                                                          Limited Partnership
                                                                                              Like a general partnership, a limited
                                                                                          partnership is established by an
                                                                                          agreement between two or more persons.
                                                                                          However, there are two types of
            ven if you are running a small   cHoosing Your business

                                                                                            • A general partner has greater control
            home-based business, you will
            have to comply with many of      structure                                        in some aspects of the partnership. For
                                                                                              example, only a general partner can
            the local, state, and federal       You may operate your business under           decide to dissolve the partnership.
            regulations. Avoid the           one of many organizational structures.           General partners have no limits on the
temptation to ignore regulatory details.     The most common organizational                   dividends they can receive from profit
Doing so may avert some red tape in the      structures are sole proprietorships,             so they incur unlimited liability.
short term, but could be an obstacle as      general and limited partnerships, “C”          • Limited partners can only receive a
your business grows. Taking the time to      and “S” corporations and limited liability       share of profits based on the
                                             companies.                                       proportional amount on their
research the applicable regulations is as
                                                Each structure offers unique tax and          investment, and liability is similarly
important as knowing your market. Bear                                                        limited in proportion to their
in mind that regulations vary by             liability benefits. If you’re uncertain
industry. If you're in the food-service      which business format is right for you,
business, for example, you will have to      you may want to discuss options with a
                                             business counselor or attorney.
                                                                                          “C” Corporation
deal with the health department. If you                                                     A “C” corporation is a legal entity
use chemical solvents, you will have                                                      created under state law by the filing of
environmental compliances to meet.           Sole Proprietorship
                                               One person operating a business as an      articles of incorporation. A corporation is
Carefully investigate the regulations
                                             individual is a sole proprietorship. It’s    a separate entity having its own rights,
that affect your industry. Being out of
                                             the most common form of business             privileges and liabilities, apart from
compliance could leave you unprotected
                                             organization. Profits are taxed as           those of the individual(s) forming the
legally, lead to expensive penalties and
jeopardize your business.                    income to the owner personally. The          corporation. It’s the most complex form
                                             personal tax rate is usually lower than      of business organization and is
                                             the corporate tax rate. The owner has        comprised of shareholders, directors and
business organization                        complete control of the business, but        officers. Since the corporation is a
  There are many forms of legal              faces unlimited liability for its debts.     separate legal entity in its own right it
structure you may choose for your            There is very little government              can own assets, borrow money and
business. Each legal structure offers        regulation or reporting required with        perform business functions without
organizational options with different tax
                                             this business structure.                     directly involving the owners.
and liability issues. We suggest you
                                                                                          Corporations are subject to more
research each legal structure thoroughly
and consult a tax accountant and/or
                                             General Partnership                          government regulation and offer the
                                                A partnership exists when two or more     owners the advantage of limited liability,
attorney prior to making your decision.
For additional information, contact:         persons join together in the operation       but not total protection from lawsuits.
For Limited Partnerships and                 and management of a business.
Corporations                                 Partnerships are subject to relatively       Subchapter “S” Corporation
     California Secretary of State           little regulation and are fairly easy to       Subchapter “S” references a special
     Department of Corporation               establish. A formal partnership              part of the Internal Revenue Code that
     Los Angeles Regional Office             agreement is recommended to address          permits a corporation to be taxed as a
     300 South Spring Street, Rm. 12513      potential conflicts such as: who will be
     Los Angeles, CA 90013                                                                partnership or sole proprietorship, with                responsible for performing each task;        profits taxed at the individual, rather

Visit us online:                                                           SAN DIEGO Small Business Resource —   15
than the corporate rate. A business            Imperial County Recorder                       as taxes, utilities and other continuing
must meet certain requirements for                940 Main St., Ste. 202                      expenses during the period between
Subchapter “S” status. Contact the IRS            El Centro, CA 92243                         when the damage occurs and when the
                                                  760-482-4272                                property is replaced? Business
for more information.                   
                                                                                              Interruption (or "business income")
LLCs and LLPs                                                                                 insurance can provide sufficient funds to
   The limited liability company is a          business insurance                             pay your fixed expenses during a period
relatively new business form. It                  Like home insurance, business               of time when your business is not
combines selected corporate and                insurance protects your business against       operational.
partnership characteristics while still        fire, theft and other losses. Contact your        "Key Man" – If you (and/or any other
maintaining status as a legal entity           insurance agent or broker. It is prudent       individual) are so critical to the
distinct from its owners. As a separate        for any business to purchase a number          operation of your business that it cannot
entity it can acquire assets, incur            of basic types of insurance. Some types        continue in the event of your illness or
liabilities and conduct business. It limits    of coverage are required by law, other         death, you should consider "key man"
liability for the owners. The limited          simply make good business sense. The           insurance. This type of policy is
liability partnership is similar to the        types of insurance listed below are            frequently required by banks or
LLC, but it is for professional                among the most commonly used and are           government loan programs. It also can
organizations.                                 merely a starting point for evaluating         be used to provide continuity in
                                               the needs of your business.                    operations during a period of ownership
logistics oF starting Your                        Liability Insurance – Businesses may        transition caused by the death,
                                                                                              incapacitation or absence due to a Title
                                               incur various forms of liability in
business                                       conducting their normal activities. One        10 military activation of an owner or
                                               of the most common types is product            other "key" employee.
business licenses                              liability, which may be incurred when a           Automobile – It is obvious that a
  There are many types of licenses, both       customer suffers harm from using the           vehicle owned by your business should
state and local as well as professional.       business product. There are many other         be insured for both liability and
Depending on what you do and where             types of liability, which are frequently       replacement purposes. What is less
you plan to operate, your business may         related to specific industries. Liability      obvious is that you may need special
be required to have various state and/or       law is constantly changing. An analysis        insurance (called "non-owned automobile
municipal licenses, certificates or            of your liability insurance needs by a         coverage") if you use your personal
permits.                                       competent professional is vital in             vehicle on company business. This policy
  Licenses are typically administered by       determining an adequate and                    covers the business' liability for any
a variety of state and local departments.      appropriate level of protection for your       damage which may result for such
Consult your state or local government         business.                                      usage.
for assistance.                                   Property – There are many different            Officer and Director – Under most
                                               types of property insurance and levels of      state laws, officers and directors of a
Fictitious business name                       coverage available. It is important to         corporation may become personally
  Registering your business name, after        determine the property you need to             liable for their actions on behalf of the
doing a search to make sure that it is         insure for the continuation of your            company. This type of policy covers this
not already in use, protects you from          business and the level of insurance you        liability.
others who might want to use the same          need to replace or rebuild. You must also         Home Office – If you are establishing
name. For more information, contact the        understand the terms of the insurance,         an office in your home, it is a good idea
county clerk’s office in the county where      including any limitations or waivers of        to contact your homeowners' insurance
your business is based. If you are a           coverage.                                      company to update your policy to include
corporation, you’ll need to check with the        Business Interruption – While               coverage for office equipment. This
state.                                         property insurance may pay enough to           coverage is not automatically included in
San Diego County                               replace damaged or destroyed equipment         a standard homeowner's policy.
Assessor/Recorder/County Clerk                 or buildings, how will you pay costs such
    1600 Pacific Hwy., Rm. 260
    San Diego, CA 92101
    760-630-1219 (Calling from North County)

East San Diego County
    200 S. Magnolia Ave.
    El Cajon, CA 92020
    619-237-0502                                                                        • Faster, better search capabilities
North San Diego County                          SBA’S WEBSITE                           • Information tailored to your needs
    141 E. Carmel St.
    San Marcos, CA 92078                        Go to SBA’s new website today,          • News about SBA programs & services
    760-940-6868                                featuring:
                                                                                        Some pages may change URLs on the upgraded site. Please
                                                                                        consult or your local SBA district office for

16 — Small Business Resource   SAN DIEGO                                                                          Visit us online:
emploYer iDentiFication                       North San Diego                               social securitY carDs
                                                 334 Via Vera Cruz, Ste. 107
                                                 San Marcos, CA 92078                          All employees must have a social
   An EIN, also known as a federal tax           760-510-5850                               security card. It must be signed by its
identification number, is used to identify                                                  owner, and you should always ask to see
                                              Imperial County                               and personally record the social security
a business entity. Generally all
                                                 1550 W. Main St.                           number. Failure to do so may cause your
businesses need an EIN. You may apply            El Centro, CA 92243                        employee to lose benefits and
for an EIN in a variety of ways,                 760-352-3431                               considerable trouble for yourself in back
including online, phone, and fax.                                                           tracking to uncover the error.
Taxpayers can obtain an EIN
immediately by calling 800-829-4933,          FeDeral income tax                               Each payday, your employees must
                                                                                            receive a statement from you telling
Monday through Friday, from 7:30 a.m.            Like the state income tax, the method      them what deductions were made and
to 5:30 p.m. customer's local time.           of paying federal income taxes depends        how many dollars were taken out for
   More information can be found at           upon your legal form of business.             each legal purpose. This can be                                     Sole Proprietorship: You must file         presented in a variety of ways, including
                                              IRS Federal Form Schedule C along             on the check as a detachable portion or
IRS Tax Information                           with your personal Federal Income Tax         in the form of an envelope with the
     800-829-4933                             return (Form 1040) and any other              items printed and spaces for dollar
                                              applicable forms pertaining to gains or       deductions to be filled in.
Forms and Publications                        losses in your business activity.
                                                 Partnership: You must file a Federal
                                                                                            emploYee consiDerations
     800-829-3676                              Partnership return (Form 1065). This is
                                              merely informational to show gross and        Taxes
State Employer Account Number                 net earnings of profit and loss. Also, each      If you have any employees, including
     CA Taxpayer Assistance Center
                                              partner must report his share of              officers of a corporation but not the sole                           partnership earnings on his individual        proprietor or partners, you must make
                                              Form 1040 based on the information            periodic payments towards, and/or file
                                              from the K-1 filed with the Form 1065.
FeDeral                                          Corporation: You must file a Federal
                                                                                            quarterly reports about payroll taxes
                                                                                            and other mandatory deductions. You
selF-emploYment tax                           Corporation Income Tax return (Form
                                                                                            may contact these government agencies
   Every employee must pay Social             1120). You will also be required to report
                                              your earnings from the corporation            for information, assistance and forms.
Security and Medicare coverage. If you                                                      Employment Taxes:
                                              including salary and other income such
are self-employed, your contributions are                                                      Employment Development Department (EDD)
                                              as dividends on your personal federal
made through the self-employment tax.                                                          888-745-3886
                                              income tax return (Form 1040).
   The IRS has publications, counselors                                              
and workshops available to help you sort
it out. For more information, contact the     FeDeral paYroll tax                           State Income Tax:
                                                                                               California Franchise Tax Board
IRS at 800-829-1040 or              Federal Withholding Tax: Any                  800-852-5711
                                              business employing a person must       
sales tax exemption                           register with the IRS and acquire an
                                                                                            Federal Income Tax & Withholding:
                                              EIN and pay federal withholding tax at
certiFicate                                   least quarterly. File Form SS-4 with the         Internal Revenue Service
   If you plan to sell products, you will     IRS to obtain your number and required
need a Sales Tax Exemption Certificate.                                              
                                              tax forms. Call 800-829-3676 or
It allows you to purchase inventory, or       800-829-1040 if you have questions.           Social Security Administration
materials, which will become part of the                                                       800-772-1213
product you sell, from suppliers without
paying taxes. It requires you to charge
                                              irs Web proDucts For                             800-325-0778 TDD/TTY
sales tax to your customers, which you        small businesses
are responsible for remitting to the state.     For the most timely and up-to-date          Social Security’s Business Services
You will have to pay penalties if it is       tax information, go to           Online
found that you should have been taxing        businesses/small/index.html.                   The Social Security Administration
your products and now owe back taxes to                                                     now provides free electronic services
the state. For information on sales tax       Updated Virtual Small Business Tax            online at
                                                                                            Once registered for Business Services
issues, contact your state’s government.      Workshop
                                                                                            Online, business owners or their
Seller’s Resale Permit                          The IRS’s Virtual Small Business Tax
                                                                                            authorized representative can:
     Request mailed application               Workshop (             • file W-2s online; and
     From TDD phones: 800-735-2929
                                              Taxpayer) is an interactive resource to         • verify Social Security Numbers through
     From voice phones: 800-735-2922              help small business owners learn about            the Social Security Number Verification
                                              their federal tax rights and                      Service, used for all employees prior to
San Diego                                     responsibilities. This dynamic                    preparing and submitting Forms W-2.
     1350 Front St., Ste. 5047                educational product consists of several
                                                                                            Federal Withholding
     San Diego, CA 92101                                                                       U.S. Internal Revenue Service
                                              stand-alone lessons that can be selected         800-829-1040
                                              and viewed in any sequence.            

Visit us online:                                                             SAN DIEGO Small Business Resource —   17
Health Insurance                                 Equal Employment Opportunity                     Enterprise Zones
 Compare plans in your area at                   Commission at 800-669-4000 or visit              California Association of Enterprise
                                                                           Zones                                                                                  550 Bercut Dr., Ste. G
                                                                                                     Sacramento, CA 95814
Employee Insurance                               Alcoholic Beverage Control                          877-930-CAEZ or 877-930-2230
  If you hire employees you may be               San Diego                                 
                                                    1350 Front St., Rm. 5056
required to provide unemployment or                 San Diego, CA 92101
workers’ compensation insurance.                    619-525-4064                                  Department of Agriculture, Weights and
Workplace DisabilitY                                                  San Diego County
                                                                                                     5555 Overland Ave., Ste. 3101
programs                                         North San Diego
                                                    334 Via Vera Cruz, Ste. 204
                                                                                                     San Diego, CA 92123
  Americans with Disabilities (ADA):                San Marcos, CA 92078
For assistance with the ADA, call                   760-471-4237
800-669-3362 or visit                                        North County Office
                                                                      151 E. Carmel St.
u.s. citizensHip anD                             Imperial County
                                                                                                     San Marcos, CA 92078

immigration services
                                                    34-160 Gateway Dr., Ste. 120
                                                    Palm Desert, CA 92211                         Imperial County
   The Federal Immigration Reform and               760-324-2027
Control Act of 1986 requires employers                                                               852 Broadway
                                                                             El Centro, CA 92243
to verify employment eligibility of new                               760-482-4314
employees. The law obligates an                                                            
employer to process Employment                   Permit Assistance
Eligibility Verification Form I-9. The             Permit Assistance:         ENVIRONMENTAL PERMITS
U.S. Citizenship and Immigration                 Detailed information on the business
Services Office of Business Liaison offers       permit, license and registration                 Air Pollution Control
a selection of information bulletins and         requirements from all levels of                  San Diego County
                                                 government.                                         10124 Old Grove Rd.
live assistance through the Employer                                                                 San Diego, CA 92131
Hotline. For forms call 800-870-3676, for                                                            858-586-2600 Permits
the Employer Hotline call 800-357-2099.          Product Labeling                                    858-586-2656 Sm. Bus. Assistance
                                                    Federal Trade Commission               
                                                    Textile Section
Worker’s Compensation Insurance                     Division of Enforcement
   Required for all businesses with                                                               Imperial County
                                                    Federal Trade Commission                         150 S. Ninth St.
employees. Contact an insurance agent               600 Pennsylvania Ave. N.W.                       El Centro, CA 92243
or state fund at or one of           Washington, DC 20580                             760-482-4606
the following:                                      202-326-3553                           
Department of Industrial Relations        
    Worker’s Compensation Division                                                                Employment Development
    7575 Metropolitan Dr., Ste. 202              Contractor’s License
    San Diego, CA 92108                             12501 East Imperial Hwy., Ste. 600, 6th Fl.   Department Services (EDD)
    619-767-2083                                    Norwalk, CA 90650                               The Employment Development            800-321-2752                                  Depart-ment is ready to help your
                                                                                              company prepare for the challenging
    teringEmployees/WorkersCompensation.aspx                                                      demands of today’s business world. The
                                                 County Environmental Health Service
                                                 (Food Handling)                                  EDD can:
CA Insurance Fund Information                    San Diego County                                   • Assist you with your labor market
    (Worker’s Compensation)                                                                           information and planning needs.
                                                    5500 Overland Ave., Ste. 110
                                                    San Diego, CA 92123                             • Provide you with a variety of
    Recorded information: 1-800-736-7401
                                                    858-505-6900 or 800-253-9933                      employment services to meet your
                                                      staffing requirements.
                                                    Other locations throughout the county –         • Offer employment tax guidance to help
CA Department of Insurance                          Check web site above.                             your business succeed.
    Consumer Hotline
    800-927-HELP (4357)                                                                             • Help you understand your disability                        Imperial County                                      insurance options.
                                                 Public Health Department                           • Advise you on employment training
                                                    Environmental Health & Consumer                   services available to your company.
Other Considerations                                Protection Services                             Through their Internet home page,
   All businesses with employees are                797 W. Main St., Ste. B                       you have direct access to information on
required to comply with state and                   El Centro, CA 92243
                                                                                                  each of their programs and services, as
federal regulations regarding the                   760-336-8530
                                                                                                  well as to labor market information
protection of employees. Other            
                                                                                                  publications and the most widely used
information can be obtained from the
                                                                                                  employment tax forms. You can also

18 — Small Business Resource   SAN DIEGO                                                                         Visit us online:
find the nearest location in the state
government section of the telephone
                                            saFetY & HealtH                             conduct business out of your home or
                                                                                        engage in industrial activity in a retail
directory under “Employment
                                            regulations                                 district. Contact the business license
Development Department.”                      All businesses with employees are         office in the city or town where the
                                            required to comply with state and           business is located.
   For more information, visit their
                                            federal regulations regarding the
website at                  protection of employees. The
                                            Occupational Safety and Health              bar coDing
E-Verify: Employment Eligibility            Administration outlines specific health        Many stores require bar coding on
Verification                                and safety standards adopted by the         packaged products. Many industrial and
   E-Verify, operated by the Department     U.S. Department of Labor. For more          manufacturing companies use bar coding
of Homeland Security in partnership         information, contact:                       to identify items they receive and ship.
with the Social Security Administration,    CA Department of Industrial Relations       There are several companies that can
is the best--and quickest--way for          Cal/OSHA – Occupational Safety              assist businesses with bar-coding needs.
employers to determine the employment          7575 Metropolitan Dr., Ste. 204          You may want to talk with an SBDC,
eligibility of new hires. It is a safe,        San Diego, CA 92108                      SCORE or WBC counselor for more
simple, and secure Internet-based              619-767-2060                             information.
system that electronically verifies the
Social Security number and employment                                                   Federal Registration of Trademarks
eligibility information reported on Form
                                            San Diego County
                                            Hazardous Materials Division                and Copyrights
I-9. E-Verify is voluntary in most states      5500 Overland Ave., Ste. 110               Trademarks or service markets are
and there is no charge to use it.              San Diego, CA 92123                      words, phrases, symbols, designs or
   If you are an employer or employee          858-505-6661 Permits or                  combinations thereof that identify and
and would like more information about          858-505-6880 Duty Desk                   distinguish the source of goods.
the E-Verify program, please visit                     Trademarks may be registered at both or contact our                                                     the state and federal level. To register a
Customer Support staff: 1-888-464-4218
Monday – Friday 8 am – 5 pm.
                                            builDing coDes, permits                     federal trademark, contact:
E-mail:                    anD zoning                                  U.S. Patent and Trademark Office:
                                                                                           P.O. Box 1450
                                               It is important to consider zoning          Alexandria, VA 22313-1450
                                            regulations when choosing a site for your      800-786-9199
                                            business. You may not be permitted to

Visit us online:                                                         SAN DIEGO Small Business Resource —   19
Trademark Information Hotline               Calexico                      Imperial Beach
    703-308-9000                               608 Heber Ave.                825 Imperial Beach Blvd.
                                               Calexico, CA 92231            Imperial Beach, CA 91932
Trademark Assistance Center:                   760-768-2110                  619-628-1423
Madison East, Concourse Level         
    600 Dulany St.
    Alexandria, VA 22314                    Calipatria                    La Mesa
    800-786-9199                               125 N. Park Ave.              8130 Allison Ave.                             Calipatria, CA 92233          La Mesa, CA 91941
                                               760-348-4141                  619-667-1118
state registration oF a                
traDemark                                   Carlsbad                      Lemon Grove
Trademarks and service marks may be            1635 Faraday Ave.             3232 Main St.
registered in a state. For filing fees or      Carlsbad, CA 92008            Lemon Grove, CA 91945
more information about applications for        760-602-2495                  619-825-3800
registration of trademark or service   
mark, contact the:
State of California                         Chula Vista                   National City
    1500 11th St., 2nd Fl.                     276 Fourth Ave.               1243 National City Blvd.
    Sacramento, CA 95814                       Chula Vista, CA 91910         National City, CA 91950
    916-653-3984                               619-691-5250                  619-336-4330      
Caution: Federally registered               Coronado
trademarks may conflict with and               1825 Strand Way
supersede state registered business and        Coronado, CA 92118
                                                                             300 N. Coast Hwy.
product names.                                 619-522-7320
                                                                             Oceanside, CA 92054
   A patent is the grant of a property      Del Mar
                                               1050 Camino Del Mar        Poway
right to the inventor by the U.S. Patent                                     13325 Civic Center Dr. (Office)
                                               Del Mar, CA 92014
and Trademark Office. It provides the          858-755-9354 ext. 30          Poway, CA 92064
owner with the right to exclude others              858-668-4400
from making, using, offering for sale or                           
selling the patented item in the United     El Cajon
States.                                        200 Civic Center Way       San Diego
   Additional information is provided in       El Cajon, CA 92020            1200 Third Ave., 1st Fl.
the publications, General Information          619-441-1668                  San Diego, CA 92101
Concerning Patents and other                  619-615-1500
publications distributed through the                               
U.S. Patent and Trademark Office. For       El Centro
                                                                          San Marcos
more information, contact the:                 1275 Main St.
                                                                             1 Civic Center Dr.
U.S. Patent and Trademark Office               El Centro, CA 92243
                                               760-337-4573                  San Marcos, CA 92069
    800-786-9199 •                                             760-744-1050 ext. 3101
   Copyrights protect original works of     Encinitas
                                               505 S. Vulcan Ave.         Santee
authorship including literary, dramatic,                                     10601 Magnolia Ave.
musical and artistic, and certain other        Encinitas, CA 92024-3633
                                               760-633-2606                  Santee, CA 92071
intellectual works. Copyright does not       619-258-4100 ext. 146
protect facts, ideas and systems,                                  
although it may protect the way these       Escondido
things are expressed. For general              201 N. Broadway            Solana Beach
information contact:                           Escondido, CA 92025           635 S. Hwy. 101
U.S. Copyright Office                          760-839-4659                  Solana Beach, CA 92075
    U.S. Library of Congress                 858-720-2441
    Copyright Office                                               
    101 Independence Ave. S.E.              Holtville
    Washington, DC 20559                       121 W. 5th St.             Vista
    202-707-9100 - Forms & Publications        Holtville, CA 92250           200 Civic Center Dr.
    202-707-3000 or                            760-356-2673                  Vista, CA 92084
    877-476-0778 Toll Free - Information          760-639-6174                                              
CITY BUSINESS LICENSE OFFICES:                 420 S. Imperial Ave.       Westmoreland
Brawley                                        Imperial, CA 92251            355 S. Center St.
    383 W. Main St.                            760-355-1064                  Westmorland, CA 92281
    Brawley, CA 92227                           760-344-3411

20 — Small Business Resource   SAN DIEGO                                                  Visit us online:
                                           FINANCING & SURETY BONDS

                                  GETTING APPROVED
                                    Financing Options to Start or Grow Your Business
                                                                                            SBIR Requirements:
                                                                                               Small businesses must meet the
                                                                                            following eligibility criteria to participate
                                                                                            in the SBIR program.
                                                                                              • Be 51 percent owned and controlled by
                                                                                                one or more individuals who are U.S.
                                                                                                citizens or permanent resident aliens
                                                                                                in the U.S. or be a for-profit business
                                                                                                concern that is at least 51 percent
                                                                                                owned and controlled by another for-
                                                                                                profit business concern that is at least
                                                                                                51 percent owned and controlled by
                                                                                                one or more individuals who are
                                                                                                citizens of, or permanent resident
                                                                                                aliens in, the U.S.
                                                                                              • Be for-profit.
                                                                                              • Principal researcher must be employed
                                                                                                by small business.
                                                                                              • Company size cannot exceed 500
                                                                                              For more information on the SBIR
                                               capital. Licensed and regulated by the

             any entrepreneurs need                                                         Program visit
             financial resources to start      SBA, SBICs are privately owned and
             or expand a small business        managed investment funds that make
                                                                                            Participating Agencies:
             themselves and must               capital available to qualifying U.S. small
                                                                                               Each year, the following eleven federal
             combine what they have            businesses at attractive rates.. The funds
                                                                                            departments and agencies are required
with other sources of financing. These         raise private capital and can receive
                                               SBA-guaranteed leverage up to 3x             to reserve 2.5% of their extramural R&D
sources can include family and friends,                                                     funds for award to small businesses
venture-capital financing, and business        private capital paid-in, with a leverage
                                               ceiling of $150 million per SBIC and         through the SBIR program:
                                               $225 million for two or more licenses        Departments of Agriculture; Commerce;
  This section of the Small Business
                                               under common control. Licensed SBICs         Defense; Education; Energy; Health and
Resource guide discusses SBA’s primary
business loan and equity financing             are for-profit investment firms whose        Human Services; Homeland Security;
programs. These are: the 7(a) Loan             incentive is to share in the success of a    Transportation; Environmental
Program, the Certified Development             small business. The SBIC program             Protection Agency; National Aeronautics
Company or 504 Loan Program, the               provides funding for a broad range of        and Space Administration; and National
Microloan Program and the Small                industries. Some SBICs invest in a           Science Foundation.
Business Investment Company Program.           particular field or industry while others
The distinguishing features for these          invest more generally. For more              small business
                                               information visit
programs are the total dollar amounts                                                       tecHnologY transFer
that can be borrowed, the type of lenders
who can provide these loans, the uses for      small business innovation                    program
                                                                                               The Small Business Technology
the loan proceeds, and the terms placed
on the borrower.
                                               researcH program                             Transfer (STTR) program reserves a
  Note: The SBA does not offer grants             The Small Business Innovation             specific percentage of federal R&D
                                               Research (SBIR) program encourages           funding for award to small business and
to individual business owners to start
                                               small businesses to advance their            non-profit research institution partners.
or grow a business.
                                               technical potential from funds               Central to the program is expansion of
                                               committed by federal agencies with large     the public/private sector partnership to
small business investment                      extramural research and development          include the joint venture opportunities
companY program                                budgets. The SBIR program serves to          for small business and the nation's
                                                                                            premier nonprofit research institutions.
  There are a variety of alternatives to       fund the critical startup and
                                                                                            Small business has long been where
bank financing for small businesses. The       development stages for a technology and
                                                                                            innovation and innovators thrive, but
Small Business Investment Company              encourages commercialization of the
                                                                                            the risk and expense of conducting
(SBIC) program fills the gap between the       technology, product or service. In turn,     serious R&D efforts can be beyond the
availability of private capital and the        this stimulates the U.S. economy.            means of many small businesses. Non-
needs of small businesses for growth

Visit us online:                                                              SAN DIEGO Small Business Resource —   21
profit research laboratories are also           everything, the applicants’ contribution,       the lender a certain amount of exposure
instrumental in developing high-tech            use of loan proceeds, collateral, and most      and risk on each loan. The percentage
innovations but frequently, innovation is       important, an explanation of how the            SBA guarantees depends on either the
confined to the theoretical. STTR               business will be able to repay the loan in      dollar amount or the program the lender
combines the strengths of both entities         a timely manner.                                uses to obtain its guaranty. For loans of
by introducing entrepreneurial skills to           The lender will analyze the                  $150,000 or less the SBA may guaranty
high-tech research efforts. The                 application to see if it meets the lender’s     as much as 85 percent and for loans over
technologies and products are                   criteria as well as SBA’s requirements.         $150,000 the SBA can provide a
transferred from the laboratory to the          SBA will look to the lender to do much,         guaranty of up to 75 percent.
marketplace. The small business profits         if not all, of the analysis before it              The maximum 7(a) loan amount is
from the commercialization, which, in           provides its guaranty on the lender’s           $5 million. (Loans made under the
turn, stimulates the U.S. economy.              loan or provides the microlenders with          SBAExpress program, which is
                                                funds to re-lend to the business. The           discussed subsequently, have a
STTR Requirements:                              SBA’s business loan programs provide a          50 percent guaranty.)
   Small businesses must meet the               key source of financing for viable small
                                                businesses that have real potential, but
following eligibility criteria to participate
in the STTR program.                            cannot qualify for loans from the lending       interest rates anD Fees
  • Be 51 percent owned and controlled by       institutions on their own.                         The actual interest rate for a 7(a) loan
    one or more individuals who are U.S.                                                        guaranteed by SBA is negotiated
                                                                                                between the applicant and lender and
    citizens or permanent resident aliens
    in the U.S.
                                                7(a) loan program                               subject to SBA maximums. Both fixed
  • Be organized for profit.                       The 7(a) Loan program is the SBA’s           and variable interest rate structures are
  • Principal researcher need not be            primary business loan program. It is the        available. The maximum rate is
    employed by small business.                 agency’s most used non-disaster                 comprised of two parts, a base rate and
  • Company size cannot exceed 500              financial assistance program because of         an allowable spread. There are three
    employees. (No size limit for nonprofit     its flexibility in loan structure, variety of
                                                                                                acceptable base rates (Wall Street
    research institution).                      loan proceed uses, and availability. This
                                                                                                Journal Prime*, London Interbank One
The nonprofit research institution partner      program has broad eligibility
                                                requirements and credit criteria to             Month Prime plus 3 percent, and an
must also meet certain eligibility criteria:                                                    SBA Peg Rate). Lenders are allowed to
  • Be located in the United States and be      accommodate a wide range of financing
                                                needs.                                          add an additional spread to the base rate
    one of the following:
  • Nonprofit college or university.               The business loans that SBA                  to arrive at the final rate. For loans
  • Domestic nonprofit research                 guarantees do not come from the agency,         with maturities of less than seven years
    organization.                               but rather from banks and other                 the maximum spread will be no more
  • Federally funded R&D center.                approved lenders. The loans are funded          than 2.25 percent. For loans with
                                                by these organizations and they make            maturities of seven years or more, the
Participating Agencies:                         the decisions to approve or not approve         maximum spread will be 2.75 percent.
  Each year the following five Federal          the applicants’ requests.                       The spread on loans under $50,000 and
departments and agencies are required              The SBA guaranty reduces the                 loans processed through Express
by STTR to reserve 0.3% of their                lender’s risk of borrower non-payment. If       procedures may be higher.
extramural R&D funds for award to               the borrower defaults, the lender can              Loans guaranteed by SBA are
small business/nonprofit research               request SBA to pay the lender that              assessed a guaranty fee. This fee is
institution partnerships: Department of         percentage of the outstanding balance           based on the loan’s maturity and the
Defense; Department of Energy;                  guaranteed by SBA. This allows the              dollar amount guaranteed, not the total
Department of Health and Human                  lender to recover a portion from SBA of         loan amount. The guaranty fee is
Services; National Aeronautics and              what it lent if the borrower can’t make         generally paid by the borrower and can
Space Administration; and National              the payments. The borrower is still
                                                                                                be included in the loan proceeds.
Science Foundation.                             obligated for the full amount.
                                                                                                   On any loan with a maturity of one
                                                   To qualify for an SBA guaranty, a
                                                small business must meet the lender’s           year or less, the fee is just 0.25 percent
sba business loans                              criteria and the 7(a) requirements. In          of the guaranteed portion of the loan. On
  When you seek a business loan,                addition, the lender must certify that it       loans with maturities of more than one
familiarize yourself with the SBA’s             would not provide this loan under the           year, the normal guaranty fee is
business loan programs to see if they           proposed terms and conditions unless it         2 percent of the SBA guaranteed portion
may be a viable option. Keep in mind            can obtain an SBA guaranty. If the SBA          on loans up to $150,000; 3 percent on
the dollar amount you seek to borrow            is going to provide a lender with a             loans over $150,000 but not more than
and how you want to use the loan                guaranty, the applicant must be eligible        $700,000; and 3.5 percent on loans over
proceeds. The three principal players in        and creditworthy and the loan                   $700,000. There is also an additional fee
most of these programs are — the                structured under conditions acceptable          of 0.25 percent on any guaranteed
applicant small business, the lender and        to SBA.                                         portion over $1 million.
the SBA. SBA guarantees a portion of                                                            * All references to the prime rate refer
the loan (except for Microloans). The
business should have its business plan          percentage oF guaranties                        to the base rate in effect on the first
                                                                                                business day of the month the loan
prepared before it applies for a loan.          anD loan maximums                               application is received by SBA.
This plan should explain what resources           The SBA only guarantees a portion of
will be needed to accomplish the desired        any particular loan so each loan will also
business purpose including the cost of          have an unguaranteed portion, giving

22 — Small Business Resource   SAN DIEGO                                                                      Visit us online:
7(a) loan maturities                          eligibilitY                                      • Construct commercial buildings; and
                                                                                               • Refinance existing debt under certain
   SBA loan programs are generally               7(a) loan eligibility is based on four          conditions.
intended to encourage longer term small       different factors. The first is size, as all     SBA 7(a) loan proceeds cannot be used
business financing, but actual loan           loan recipients must be classified as          for the purpose of making investments.
maturities are based on the ability to        “small” by SBA. The basic size
                                                                                             SBA proceeds cannot be used to provide
repay, the purpose of the loan proceeds       standards are outlined below. A more
                                              in-depth listing of standards can be           funds to any of the owners of the
and the useful life of the assets financed.                                                  business except for ordinary
However, maximum loan maturities              found at
                                                                                             compensation for actual services
have been established: 25 years for real
                                              SBA Size Standards:                            provided.
estate; up to 10 years for equipment
                                                • Manufacturing — from 500 to no more
(depending on the useful life of the
                                                  than 1,500 employees                       Miscellaneous Factors
equipment); and generally up to seven           • Wholesaling — No more than 100                The fourth factor involves a variety of
years for working capital. Short-term             employees                                  requirements such as SBA’s credit
loans and revolving lines of credit are         • Services — from $4.5 million to no         elsewhere test and utilization of personal
also available through the SBA to help            more than $35.5 million in average
                                                                                             assets requirements where the business
small businesses meet their short-term            annual receipts
                                                • Retailing — from $7 million to no more
                                                                                             and its principal owners must use their
and cyclical working capital needs.
                                                  than $35.5 million in average annual       own resources before getting a loan
                                                  receipts                                   guaranteed by SBA. It also includes
structure                                       • General construction — from $7             SBA’s anti-discrimination rules and
   Most 7(a) loans are repaid with                million to no more than $33.5 million      restrictions on lending to agricultural
monthly payments of principal and                 in average annual receipts                 enterprises because there are other
                                                • Agriculture — from $750,000 to no          agencies of the federal government with
interest. For fixed-rate loans the
                                                  more than $17.5 million in average         programs to fund such businesses.
payments stay the same whereas for                annual receipts
variable rate loans the lender can re-                                                       Generally, SBA loans must meet the
establish the payment amount when the                                                        following criteria:
                                              Nature of Business                               • Every loan must be for a sound
interest rates change or at other                The second eligibility factor is based          business purpose;
intervals as negotiated with the              on the nature of the business and the            • There must be sufficient invested
borrower. Applicants can request that         process by which it generates income or            equity in the business so it can operate
the lender establish the loan with            the customers it serves. The SBA has               on a sound financial basis;
interest-only payments during the start-      general prohibitions against providing           • There must be a potential for long-
up and expansion phases (when eligible)       financial assistance to businesses                 term success;
to allow the business time to generate        involved in such activities as lending,          • The owners must be of good character
income before it starts making full loan      speculating, passive investment,                   and reputation; and
payments. Balloon payments or call            pyramid sales, loan packaging,                   • All loans must be so sound as to
provisions are not allowed on any 7(a)        presenting live performances of a                  reasonably assure repayment.
loan. The lender may not charge a             prurient sexual nature, businesses               For more information, go to
prepayment penalty if the loan is paid        involved in gambling and any illegal 
off before maturity, but the SBA will         activity.
                                                 The SBA will also not support non-
charge the borrower a prepayment fee if
the loan has a maturity of 15 or more         profit businesses, private clubs that limit    WHat to take to tHe lenDer
                                              membership on a basis other than                  Documentation requirements may
years and is pre-paid during the first
                                              capacity, businesses that promote a            vary; contact your lender for the
three years.                                                                                 information you must supply.
                                              religion, businesses owned by
                                              individuals incarcerated or on probation       Common requirements include the
collateral                                    or parole, municipalities, and situations      following:
   The SBA expects every 7(a) loan to be      where the business or its owners                 • Purpose of the loan.
                                              previously failed to repay a federal loan        • History of the business.
fully secured, but the SBA will not                                                            • Financial statements for three years
                                              or federally assisted financing.
decline a request to guaranty a loan if                                                          (existing businesses).
the only unfavorable factor is insufficient                                                    • Schedule of term debts (existing
collateral, provided all available
                                              Use of Proceeds                                    businesses).
                                                 The third eligibility factor is use of        • Aging of accounts receivable and
collateral is offered. What these two
                                              proceeds. 7(a) proceeds can be used to:            payable (existing businesses).
policies mean is that every SBA loan is       purchase machinery, equipment,                   • Projected opening-day balance sheet
to be secured by all available assets         fixtures, supplies, make leasehold                 (new businesses).
(both business and personal) until the        improvements, as well as land and/or             • Lease details.
recovery value equals the loan amount         buildings that will be occupied by the           • Amount of investment in the business
or until all assets have been pledged to      business borrower.                                 by the owner(s).
the extent that they are reasonably                                                            • Projections of income, expenses and
                                              Proceeds can also be used to:                      cash flow as well as an explanation of
available. Personal guaranties are              • Expand or renovate facilities;                 the assumptions used to develop these
required from all the principal owners of       • Finance receivables and augment                projections.
the business. Liens on personal assets of         working capital;                             • Personal financial statements on the
the principals may be required.                 • Finance seasonal lines of credit;              principal owners.
                                                • Acquire businesses;                          • Resume(s) of the principal owners and
                                                • Startup businesses;                            managers.

Visit us online:                                                              SAN DIEGO Small Business Resource —   23
HoW tHe 7(a) program                          institution for a portion of its loss. By
                                              providing this guaranty, the SBA is able
                                                                                             patriot express
Works                                         to help tens of thousands of small               The Patriot Express pilot loan
   Applicants submit their loan               businesses every year get financing they       initiative is for veterans and members of
application to a lender for the initial       might not otherwise obtain.                    the military community wanting to
review. The lender will generally review         After SBA approval, the lender is           establish or expand a small business.
the credit merits of the request before       notified that its loan has been                Eligible military community members
deciding if they will make the loan           guaranteed. The lender then will work          include:
themselves or if they will need an SBA        with the applicant to make sure the
                                                                                               • Veterans;
guaranty. If a guaranty is needed, the                                                         • Service-disabled veterans;
                                              terms and conditions are met before              • Active-duty servicemembers eligible for
lender will also review eligibility, and
                                              closing the loan, disbursing the funds,            the military’s Transition Assistance
the applicant should be prepared to
                                              and assuming responsibility for                    Program;
complete some additional documents
                                              collection and general servicing. The            • Reservists and National Guard
before the lender reviews the request to                                                         members;
                                              borrower makes monthly loan payments
ensure it meets SBA’s requirements                                                             • Current spouses of any of the above,
                                              directly to the lender. As with any loan,
before sending the request for guaranty                                                          including a servicemember;
to the SBA. Applicants who feel they          the borrower is responsible for repaying
                                                                                               • The widowed spouse of a
need more help with the process should        the full amount of the loan in a timely            servicemember or veteran who died
contact their local SBA district office or    manner.                                            during service or of a service-connected
one of SBA’s resource partners for                                                               disability.
assistance.                                   What the SBA Looks for:                           The Patriot Express loan is offered by
                                                • Ability to repay the loan on time from     SBA’s widest network of lenders
   There are several ways a lender can
                                                  the projected operating cash flow.
apply to the SBA for a 7(a) guaranty                                                         nationwide and features the fastest
                                                • Owners and operators who are of good
from SBA. The main differences                    character.                                 turnaround time for loan approvals.
between these methods are related to            • Feasible business plan.                    Loans are available up to $500,000 and
the documentation which the lender              • Management expertise and                   qualify for SBA’s maximum guaranty of
provides, the amount of review which              commitment necessary for success.          85 percent for loans of $150,000 or less
SBA conducts, the amount of the loan            • Sufficient funds, including the SBA        and 75 percent for loans over $150,000
and the lender responsibilities in case           guaranteed loan, to operate the
                                                                                             up to $500,000. For loans above
the loan defaults and the business’               business on a sound financial basis (for
                                                  new businesses, this includes the          $350,000, lenders are required to take
assets must be liquidated. The methods                                                       all available collateral.
                                                  resources to meet start-up expenses
are:                                                                                            The Patriot Express loan can be used
                                                  and the initial operating phase).
  • Standard 7(a) Guaranty
  • Certified Lender Program
                                                • Adequate equity invested in the            for most business purposes, including
                                                  business.                                  start-up, expansion, equipment
  • Preferred Lender Program
                                                • Sufficient collateral to secure the loan   purchases, working capital, inventory or
  • Rural Lender Advantage
                                                  or all available collateral if the loan
  • SBA Express
                                                  cannot be fully secured.
                                                                                             business-occupied real-estate purchases.
  • Patriot Express                                                                             Patriot Express loans feature SBA’s
  • Export Express                                                                           lowest interest rates for business loans,
  • Small Loan Advantage                      sbaexpress                                     generally 2.25 percent to 4.75 percent
  • Community Advantage
                                                 The SBAExpress guaranty is available        over prime depending upon the size and
   For the Standard, Certified and
                                              to lenders as a way to obtain a guaranty       maturity of the loan. Your local SBA
Preferred methods, the applicant fills out
                                              on smaller loans up to $350,000. (Note:        district office will have a listing of
SBA Form 4, and the lender completes
                                              Through September 27, 2011, this               Patriot Express lenders in your area.
SBA Form 4-1. When requests for
                                              has increased to $1 million.) The              More information is available at
guarantees are processed using Express
                                              program authorizes selected,         
Advantage methods, the applicant uses
                                              experienced lenders to use mostly their
more of the regular forms of the lender
                                              own forms, analysis and procedures to
and just has a few federal forms to
                                              process, service and liquidate SBA-            aDvantage loans
complete. When SBA receives a request                                                           In early 2011, SBA rolled out two
                                              guaranteed loans. The SBA guarantees
that is processed through Standard or                                                        Advantage loan initiatives aimed at
                                              up to 50 percent of an SBAExpress loan.
CLP procedures, it either reanalyzes or                                                      helping entrepreneurs and small
                                              Loans under $25,000 do not require
reviews the lender’s eligibility and credit                                                  business owners in underserved
                                              collateral. The use of loan proceeds is the
analysis before deciding to approve or                                                       communities gain access to capital. Both
                                              same as for any basic 7(a) loan. Like
reject. For requests processed through                                                       offer a streamlined loan application
                                              most 7(a) loans, maturities are usually
PLP, or Express programs, the lender is                                                      process and the regular 7(a) loan
                                              five to seven years for working capital
delegated the authority to make the                                                          guarantee for loans under $250,000.
                                              and up to 25 years for real estate or
credit decision without SBA’s                                                                   The Small Loan Advantage program
                                              equipment. Revolving lines of credit are
concurrences which help expedite the                                                         is available to lenders participating in
                                              allowed for a maximum of seven years.
processing time.                                                                             the Preferred Lenders program. SBA
                                                For a list of lenders in your area,
   In guaranteeing the loan, the SBA                                                         lenders who are not participating in the
                                              contact your local SBA office at:
assures the lender that, in the event the                                                    preferred lenders program can contact
borrower does not repay the loan, the                                                        their local district office to apply.
government will reimburse the lending

24 — Small Business Resource   SAN DIEGO                                                                   Visit us online:
  The Community Advantage pilot
program opens up 7(a) lending to
                                                   days to finance activity for a new
                                                   season. These also may have a
                                                                                              export Working capital
mission-focused, community-based                   maturity of up to five years. The          program
lenders – such as CDFIs, CDCs, and                 business may not have another                  The SBA’s Export Working Capital
                                                   seasonal line of credit outstanding but    program (EWCP) assists lenders in
microlenders – who provide technical
                                                   may have other lines for non-seasonal      meeting the needs of exporters seeking
assistance and economic development                working capital needs.
support in underserved markets.                                                               short-term export working capital. This
                                                 • The Builders Line Program provides
  More information on both programs is                                                        program enables U.S. exporters to obtain
                                                   financing for small contractors or
available at                                                           loans to fund their direct export costs.
                                                   developers to construct or rehabilitate
                                                   residential or commercial property.
                                                                                              The EWCP supports single transactions
                                                   Loan maturity is generally three           or revolving lines of credit. The
special purpose 7(a) loan                          years but can be extended up to five       maximum dollar amount of an export
programs                                           years if necessary to facilitate sale of   line of credit under this program is $5
                                                                                              million. SBA guarantees up to 90% of a
   The 7(a) program is the most flexible           the property. Proceeds are used solely
                                                   for direct expenses of acquisition,        loan amount or $ 4.5 million, whichever
of SBA’s lending programs. The agency
                                                   immediate construction and/or              is less. Loan maturities are generally for
has created several variations to the
                                                   significant rehabilitation of the          a term of 12 months. The guaranty can
basic 7(a) program to address the
                                                   residential or commercial structures.      be reissued for an additional 12 months
particular financing need of certain
                                                   The purchase of the land can be            through a new application process. The
small businesses. These special purpose            included if it does not exceed 20          guaranty fee the SBA charges is 0.25
programs are not necessarily for all               percent of the loan proceeds. Up to 5      percent of the guaranteed amount of the
businesses but may be very useful to               percent of the proceeds can be used        loan for the initial 12 months. The
some small businesses. They are                    for physical improvements that             borrower negotiates the interest rate and
generally governed by the same rules,              benefit the property.                      all other fees with the lender. The
regulations, fees, interest rates, etc. as       • The Small Asset-Based Line is a            program offers flexible terms, low fees
the regular 7(a) loan guaranty. Lenders            revolving line of credit (up to            and a quick processing time. For
can advise you of any variations.                  $200,000) that provides short term
                                                                                              information, see
                                                   working capital. These lines are
                                                   generally used by businesses that
caplines                                           provide credit to their customers.         Eligibility of Exporter
   The CAPLines program is designed to             Disbursements are based on the size          You must have a business operating
help small businesses meet their short-            of a borrower’s accounts receivable        history of at least one year – not
term and cyclical working capital needs.           and/or inventory. Repayment comes          necessarily in exporting. The SBA may
There are five loan programs under the             from the collection of accounts            waive this requirement if you have
CAPLines umbrella. The programs can                receivable or sale of inventory. It does   sufficient export trade experience or
be used to finance seasonal working                require periodic servicing and             other managerial experience.
capital needs; finance the direct costs of         monitoring of the collateral for which     Eligibility of Foreign Buyers
performing certain construction, service           the lender can charge up to two               The foreign buyer must be a
and supply contracts; finance the direct           percent annually to the borrower.          creditworthy entity and the methods of
cost associated with commercial and              • The Standard Asset-Based Line is           payment must be acceptable to the SBA
                                                   similar to the Small Asset-Based
residential construction; finance                                                             and the export lender.
                                                   Line, but for loan amounts over
operating capital by obtaining advances
                                                   $200,000. It does require stricter
against existing inventory and accounts            servicing and monitoring and the           Use of EWCP Proceeds:
receivable; and consolidate short-term             lender may pass these costs along to         • To acquire inventory for export or to be
debt. SBA provides up to an 85 percent             the borrower.                                  used to manufacture goods for export.
guarantee. There are five distinct                                                              • To pay the manufacturing costs of
programs under the CAPLine umbrella:                                                              goods for export.
    • The Contract Loan Program is used        export assistance                                • To purchase goods or services for
      to finance material and labor needs      trade Financing                                    export.
                                                                                                • To support standby letters of credit
      for a specific contract or contracts.
                                                  The SBA has help for existing small             related to export transactions.
      Proceeds can be disbursed before the
                                               businesses wanting to export goods and           • For pre-shipment working capital
      work begins. If used for one contract,
      it is generally not revolving; if used
                                               services.                                          directly related to export orders.
      for more than one contract at a time,                                                     • For post-shipment foreign accounts
      it can be revolving. The loan maturity   u.s. export assistance                             receivable financing.
      is usually based on the length of the
      contract, but no more than five years.
                                               center (useac)                                 Ineligible Use of Proceeds
      Contract payment must be sent               U.S. Export Assistance Centers are a          • To support the applicant’s domestic
      directly to the lender.                  network of facilities around the U.S.              sales.
    • The Seasonal Line of Credit              staffed by SBA, U.S. Department of               • To acquire fixed assets or capital goods
      Program is used to support buildup of    Commerce and the Export-Import Bank                for the applicant’s business.
      inventory, accounts receivable or        of the U.S. to provide trade promotion           • To support a sale where the exporter is
      labor and materials above normal         and export-finance assistance for small            not taking title to the goods.
      usage for seasonal inventory. The        businesses in a single location. The             • To acquire, equip, or rent commercial
      business must have been in business      USEACs also work closely with other                space overseas.
      for a period of 12 months and must       federal, state and local international           • To serve as a warranty letter of credit.
      have a definite established seasonal     trade organizations. To find the nearest
      pattern. The loan may be used over       USEAC, go to
      again after a “clean-up” period of 30

Visit us online:                                                               SAN DIEGO Small Business Resource —   25
Collateral Requirements
  • Collateral for the manufacturing sector
    typically consists of a first lien on all
    export-related inventory and export
    related accounts receivable.
  • Collateral for the service sector
    typically consists of assignment of
    proceeds of export-related contracts or
    purchase orders and a first lien on
    export-related accounts receivable.
  • Other collateral may be required.

How to Apply
    A small business exporter seeking a
guaranteed EWCP loan must apply to a

international traDe loan
   The SBA’s International Trade Loan
program (ITL) helps small businesses                and making other improvements that               and other activities designed to initiate
engaged or preparing to engage in                   will be used within the United States            or expand the applicant’s export of its
international trade as well as small                for producing goods or services.                 products/services from the U.S.;
                                                    Refinancing a facility/building is also      •   Provide transaction-specific financing
businesses adversely affected by
                                                    permissible if the original loan on the          for overseas orders;
competition from imports. This program              property could have been refinanced          •   Provide revolving lines of credit for
allows for a maximum loan amount of                 under regular 7(a).                              export purposes, the term of which
$5 million. The international trade loan        Collateral Requirements - Collateral                 must not exceed seven years. In some
provides an SBA guarantee up to $ 4.5           requirements are the same as for                     instances, as a normal course of
million for a term loan used for the            regular 7(a) loans.                                  business, the borrower may use
acquisition, construction, renovation,             How to Apply - A small business                   portions of revolving lines of credit for
modernization, improvement or                   exporter seeking a guaranteed loan must              domestic purposes, but no less than 70
expansion of long-term fixed assets or                                                               percent of the revolving line to be used
                                                apply to an SBA participating lender.
the refinancing of an existing loan used                                                             for export related purposes;
                                                Call your local SBA District Office for a        •   Provide term loans and other financing
for these same purposes. It may also be         list of participating lenders.                       to enable small business concerns,
used in for working capital or in                                                                    including small business export
conjunction with any SBA working
capital loans, including the EWCP. The          export express                                       trading companies to develop foreign
                                                                                                     markets; and
SBA guaranty fee and interest rates are            The Export Express program is                 •   Acquire, construct, renovate,
the same as for any standard 7(a) loans.        designed to help SBA meet the export                 modernize, improve or expand
                                                financing needs of small businesses. It is           production facilities or equipment to be
Eligibility of Exporter                         subject to the same loan processing,                 used in the U.S. in the production of
  • Applicants must meet the same               making, closing, servicing, and                      goods or services to be exported from
    eligibility requirements for a 7(a) loan.   liquidation requirements as well as the              the U.S.
  • Applicant must establish the loan will      same maturity terms, interest rates, and
    significantly expand or develop an          applicable fees as for other SBA loans         Ineligible Use of Proceeds
    export market, or the applicant has         except as noted below. The total Export          Proceeds may not be used to finance
    been adversely affected by import           Express loan cannot exceed $500,000.           overseas operations, other than those
    competition, and, in addition, the          SBA guarantees 90 percent for loans of         strictly associated with the marketing
    applicant must show that upgrading          $350,000 and under and 75 percent for          and/or distribution of products/services
    equipment or facilities will improve its    loans greater than $350,000 up to the          exported from the U.S.
    competitive position.                       maximum of $500,000. SBA allows
  • If eligibility is based on entering or      participating lenders to make their own
    expanding export sales, the applicant
                                                                                               How to Apply
                                                credit decisions. SBA provides a quick           The application process is the same for
    must submit a one or two page               processing time, less than 36 hours.
    international business plan, including                                                     the SBAExpress, except the applicant
                                                Eligible Buyers – The same as for the
    sufficient information to reasonably                                                       must demonstrate that loan proceeds
                                                Export Working Capital Program.
    support the likelihood of expanded                                                         will enable it to enter a new export
    export sales.                                                                              market or expand an existing export
                                                Use of Proceeds
                                                  • Finance standby letters of credit used     market. The applicant must submit to
Use of Proceeds                                     for either bid or performance bonds;       the lender a plan that includes projected
  • For facilities or equipment, including        • Finance export development activities      export sales for the upcoming year as
    purchasing land and building(s);                such as export marketing and
    building new facilities; renovating,                                                       well as the dollar volume of export sales
                                                    promotional activities, participation in   for the previous year.
    improving, or expanding existing                foreign trade shows, translation of
    facilities; purchasing or reconditioning        product literature for foreign markets,
    machinery, equipment and fixtures;

26 — Small Business Resource   SAN DIEGO                                                                       Visit us online:
SBA’S non-7(a) LoAn                             • Most borrowers are required to make
                                                  an injection (borrower contribution) of
                                                                                               California Statewide CDC
                                                                                                  Sasha Globa
                                                  just 10 percent which allows the                800-982-9192
  In addition to the 7(a) Loan program            business to conserve valuable         
SBA has three other non-disaster                  operating capital. A further injection          Chris Kelleher
                                                  of 5 percent is needed if the business is
assistance programs which can help                a start-up or new (less than 2 years
small businesses gain access to capital                                                 
                                                  old) and a further injection of 5 percent
and bonding.                                      is also required if the primary              Capital Access Group
                                                  collateral will be a single purpose             Claudia Cohen
Certified deveLoPment                             building.
                                                • Two-tiered project financing: a lender
                                                                                                  415-217-7600 ext. 104
ComPAny LoAn ProgrAm                              finances approximately 50 percent of

(504 LoAnS)                                       the project cost and receives a first lien
                                                  on the project assets (but no SBA
                                                                                               Landmark CDC
   The 504 Loan program is an economic            guaranty); A CDC (backed by a 100%
development program that supports                 SBA-guaranteed debenture) finances    
American small business growth and                up to 40% of the project costs secured
                                                  with a junior lien. The borrower             Resource Capital CDC
helps communities through business                                                                Warren Brazas
                                                  provides the balance of the project
expansion and job creation. This SBA                                                              858-605-2865
program provides long-term, fixed-rate,         • Fixed interest rate on SBA loan. SBA  
subordinate mortgage financing for                guarantees the debenture 100 percent.
acquisition and/or renovation of capital          Debentures are sold in pools monthly         Southland EDC
assets including land, buildings and              to private investors. This low, fixed           Maria Mata
equipment. Some refinancing is also               rate is then passed on to the borrower          858-578-1504 ext. 221
                                                  and establishes the basis for the loan
permitted. Most for-profit small
businesses are eligible for this program.       • All project-related costs can be             TMC Development
The types of businesses excluded from             financed, including acquisition (land           Jacky Kim
7(a) loans (listed previously) are also           and building, land and construction of          213-612-7787
excluded from the 504 loan program.               building, renovations, machinery and  
   Loans are provided through Certified           equipment) and soft costs, such as title
                                                  insurance and appraisals. Some closing
Development Companies. CDCs work
                                                  costs may be financed.
with banks and other lenders to make            • Collateral is typically a subordinate
loans in first position on reasonable             lien on the assets financed; allows
terms, helping lenders retain growing             other assets to be free of liens and
customers and provide Community                   available to secure other needed
Redevelopment Act credit.                         financing.
   The SBA 504 loan is distinguished
from the SBA 7(a) loan program in these
                                                • Long-term real estate loans are up to
                                                  20-year term, heavy equipment 10 or
                                                  20-year term and are self-amortizing.
The maximum debenture, or long-term
loan, is:
                                              Businesses that receive 504 loans are:
                                                • Small — net worth under $15 million,
                                                  net profit after taxes under $5 million,
  • $5 million for businesses that create a
    certain number of jobs or improve the
    local economy;
                                                  or meet other SBA size standards.
                                                • Organized for-profit.
                                                • Most types of business — retail,
                                                                                                 UP ON
  • $5 million for businesses that meet a
    specific public policy goal, including
    veterans; and
                                                  service, wholesale or manufacturing.
                                                 The SBA’s 504 certified development
  • $5.5 million for manufacturers and
    energy public policy projects.
  Recent additions to the program allow
                                              companies serve their communities by
                                              financing business expansion needs.
                                              Their professional staffs works directly
$5.5 million for each project that reduces
the borrower’s energy consumption by at
                                              with borrowers to tailor a financing
                                              package that meets program guidelines
                                              and the credit capacity of the borrower’s
least 10 percent; and $5.5 million for
                                              business. For information, visit                   1 IN 6 AMERICANS
each project that generates renewable
                                                                       STRUGGLES WITH HUNGER.
energy fuels, such as biodiesel or ethanol
production. Projects eligible for up to       Advantage CDC
$5.5 million under one of these two              Regina Peterson
requirements do not have to meet the job         562-983-7450
creation or retention requirement, so  
long as the CDC portfolio average is at                                                                          WE’RE
least $65,000.                                CDC Small Business Finance
  • Eligible project costs are limited to        Jeff Bolton or Mike Sarthou
    long-term, fixed assets such as land         619-291-3594                                               Hunger is closer than you think.
    and building (occupied by the                                                Reach out to your local food
                                                                                                             bank for ways to do your part.
    borrower) and substantial machinery                                     Visit today.
    and equipment. Working capital is not
    an eligible use of proceeds.

Visit us online:                                                                SAN DIEGO Small Business Resource —    27
miCroLoAn ProgrAm                           the Surety Bond guArAntee
  The Microloan program provides small      ProgrAm
loans ranging from under $500 to
                                               The Surety Bond Guarantee program
$50,000. Under this program, the SBA
                                            is a public-private partnership between
makes funds available to nonprofit
intermediaries that, in turn, make the      the federal government and surety
small loans directly to entrepreneurs,      companies to provide small businesses
including veterans. Proceeds can be used    with the bonding assistance necessary
for typical business purposes such as       for them to compete for public and               The SBA has two program options
working capital, or the purchase of         private contracting and subcontracting        available, the Prior Approval Program
furniture, fixtures, machinery, supplies,   opportunities. The guarantee provides         (Plan A) and the Preferred Surety Bond
equipment, and inventory. Microloans        all incentive for sureties to bond small      Program (Plan B). In the Prior Approval
may not be used for the purchase of real    businesses that would otherwise be            Program, SBA guarantees 90 percent of
estate. Interest rates are negotiated       unable to obtain bonding. The program         surety’s paid losses and expenses on
between the borrower and the                is aimed at small businesses that lack        bonded contracts up to $100,000, and on
intermediary. The maximum term for a        the working capital or performance track      bonded contracts greater than $100,000
microloan is 7 years. For more              record necessary to secure bonding on a       that are awarded to socially and
information, go to
                                            reasonable basis through regular              economically disadvantaged concerns,
CDC Small Business Finance                  commercial channels.                          HUBZone contractors, and veterans, and
    Micro Loans                                Through this program, the SBA              service-disabled veteran owned small
    619-243-8639                            guarantees bid, payment, performance          businesses. All other bonds guaranteed                   and ancillary bonds issued by surety          in the Plan A Program receive an 80                        companies for individual contracts and        percent guarantee. Sureties must obtain
                                            subcontracts up to $2 million. The SBA        SBA’s prior approval for each bond
Other Microloan Programs                    reimburses sureties between 70 and 90         guarantee issued. Under Plan B, SBA
  The SBA does not administer the           percent of losses sustained if a contractor   guarantees 70 percent, but sureties may
programs listed here. The information       defaults on the contract.                     issue, monitor and service bonds without
provided does not constitute or imply an                                                  SBA’s prior approval.
endorsement by SBA or the United
States Government of the product,
process, or service, or its producer or
provider. The views and opinions
expressed by the following references do
not necessarily state or reflect those of
the SBA or the United States
  Cities often have microloan programs
for businesses. Contact your city’s
Economic Development Department or
Redevelop-ment Department for

ACCION San Diego
   ACCION offers a microloan program
for small businesses, making loans of
$300 to $35,000. Loans are made to
small firms that do not qualify for
regular commercial financing because
they have not been in business long
enough, lack collateral or financial
records or have poor credit history.
Loans are usually made within two
weeks of application and have interest
rates varying from 10 to 16 percent
depending on the loan amount and
credit history. Administrative fees range
from $50 to $100 (paid only upon loan
approval) and the length of payback is 3
to 60 months. For more information
contact 800-967-4429 or visit:

28 — Small Business Resource   SAN DIEGO                                                               Visit us online:
Visit us online:   SAN DIEGO Small Business Resource —   29
Putting America
Back to Work
tHe small business Jobs act:                               Helping small businesses gain access
                                                           to capital
                                                             Access to capital is one of the biggest concerns
tHe tools small businesses neeD                            facing small businesses. You may have heard
  On Sept. 27, President Obama signed the Small            about the Jobs Act’s extensions of the popular
Business Jobs Act, which is the most significant           provisions which increased the guarantee on loans
piece of small business legislation in over a decade.      and reduced the borrower fees in our top two
The Jobs Act provides entrepreneurs and small              programs. This helped SBA turn $505 million in
business owners with a toolbox that includes tax           taxpayer funds into $12 billion in overall small
relief, access to capital, more contracting                business lending. This temporary provision has
opportunities and exporting assistance, so they can        drawn to a close, but the Jobs Act made a number
grow and create the jobs America needs. So,                of changes to SBA lending which will help small
whether you’re starting a business or looking to           businesses get the capital they need.
grow, here are the facts you need to know to take            For small businesses like manufacturers,
advantage of all that’s in the Small Business Jobs         exporters, and franchises, that are ready to grow
Act.                                                       but need larger loans, the Jobs Act permanently
                                                           increased the limits on SBA loans from $2 million
                                                           to $5 million. This will help more small businesses
proviDing tax relieF For small                             who need capital use SBA loans. The Jobs Act also
businesses                                                 increases SBA microloan maximums from $35,000
  As tax season approaches, there are several new          to $50,000. SBA data shows that microloans often
tax cuts that small business owners can take               benefit entrepreneurs who need startup capital and
advantage of, including:                                   business owners in underserved communities who
  • The highest ever small business expensing limits–      often find it harder to access capital.
    $500,000 for 2010 and 2011                               The Jobs Act contained two important temporary
  • Carry back for qualified small businesses of           provisions. The limit on quick-turnaround SBA
    general business credits to offset five years of
                                                           Express loans was increased from $350,000 to $1
  • Zero capital gains taxes on qualified stock            million through September, 2011. And, the Jobs
    investments in small businesses for the 2010 tax       Act will soon temporarily allow owner-occupied
    year                                                   small businesses to use SBA’s 504 loan program to
  • Increased deductions for start-up expenditures for     refinance their non-SBA commercial real estate
    entrepreneurs for the 2010 tax year                    mortgages. With a large percentage of commercial
  • Easier deductions for employer-provided cell           real estate mortgages set to mature in the next few
    phones                                                 years, many small business owners face the
  • New deductions for health insurance costs for self-    negative impact of declining real estate values.
    employed business owners and their family              Allowing good, healthy small businesses to
                                                           refinance their mortgages will help them keep their
  • Limits on penalties for errors in tax reporting that
    disproportionately affect small business               doors open and protect jobs, as well as get more
  • Extended bonus depreciation                            stable, long-term mortgage financing.

30 — Small Business Resource   SAN DIEGO                                                Visit us online:
Helping small businesses Win                           Helping small businesses groW
government contracts                                   tHrougH exporting
  Are you a government contractor? The Federal           Small businesses are the sector of the economy
government is the largest purchaser of goods and       that’s best poised for growth through exporting.
services in the world. Last year, $100 billion in      With the growth in new technology, new markets
Federal contracts went to small businesses. The        are opening up small businesses all the time. And
Jobs Act contains provisions to help build on that     since the President has made it a priority to double
and get more contracts in the hands of small           the country’s exports, now is a perfect time to begin
businesses in 2011 and beyond.                         exporting. The Jobs Act makes growing your
  For instance, the law reaffirmed “parity” among      business through exporting easier than ever.
federal small-business contracting programs. When        The loan limits in SBA’s International Trade
awarding contracts that are set-aside for small        Loans and Export Working Capital have been
businesses, contracting officers are free to choose    increased to $5 million. These loans support small
among businesses owned by women and service-           business exporters who need capital to invest in
disabled veterans, as well as businesses               exporting and fill orders coming from overseas.
participating in HUBZone and 8(a) programs.            Moreover, the Export Express Pilot is now a
  The law eliminates the “Competitiveness              permanent, with 90% guarantees for loans up to
Demonstration” program, which limited                  $350,000 and 75% for loans between $350,000 and
opportunities for small contractors in 11 industries   $500,000. Lastly, the Jobs Act provides funding for
where they excel, such as construction, landscaping    competitive grants for states to help small business
and pest control. This will build on the $24 billion   owners with exporting.
small businesses won in these industries in Fiscal
Year 2009 (effective January 31, 2011).                more tools For small businesses
  The law gives contracting officers the ability to      There are dozens and dozens of programs,
reserve orders for small business participation on     resources, and tools to support your small business
contracts with multiple awards including the           in the Small Business Jobs Act. From the new loan
Federal Supply Schedule (GSA Multiple Award            programs and tax cuts mentioned above, to the
Schedule). The law makes it harder for agencies to     Treasury Department’s Small Business Lending
“bundle” contracts, a practice that makes it more      Fund that will help many community banks around
difficult for small businesses to compete.             the country, you’re sure to find what you need to
  The law establishes a legal standing of              grow your business and create jobs. Your local SBA
“presumption of loss” when a business                  district office or resource partner can help you
misrepresents its ownership status or size in          navigate the ins-and-outs of the Jobs Act, or you
winning a government contract. This allows a           can get started by visiting
federal agency to claim a loss on the purchase,
enabling those agencies, including the Department
of Justice, to vigorously pursue fraudulent firms.
  The law holds large prime contractors more
accountable to their own subcontracting plans by
requiring written justification when plans aren’t
met and when small business subcontractors aren’t
paid on time. This helps eliminate “bait-and-
switch” tactics that occur when large primes – after
winning the prime contract – don’t follow through
with their own plans to give subcontracts to small
  Whether your small business has worked on
government contracts for years, or you’re looking at
contracting as a way to grow, there’s good news in
the Jobs Act.

Visit us online:                                         SAN DIEGO Small Business Resource —   31
                                            CONTRACTING OPPORTUNITIES

                     FEDERAL PROCUREMENT
                         OPPORTUNITIES     How to Apply for Government Contracts
   The U.S. government is the largest
single purchaser of goods and services in
the world, buying everything from
armored tanks to paper clips. Every
year, the federal government awards
more than $500 billion in contracts, and
a significant share of those contracts are
specifically allotted to small businesses.
   The SBA works with agencies to
award at least 23 percent of all prime
government contracts to small
businesses, with specific statutory goals
for small disadvantaged businesses,
women-owned, service-disabled veteran-
owned, or is located in historically
underutilized business zones
   The agency ensures that small
businesses have access to long-lasting
development opportunities, which means
working with small businesses to help
them stay competitive, as well as
encouraging federal agencies to award
more contracts to small businesses. The
SBA features outreach programs,                  Types of Contracts                            Small Business Set-Asides
matchmaking events, and online                      Firm fixed price contracts places the         A “set-aside” for small businesses
training opportunities; and helps                responsibility for the costs and risk of      reserves an acquisition exclusively for
agencies identify opportunities for small        loss on the contractor. Firm fixed price      small business concern participation.
businesses.                                      contracts do not permit any adjustment        There are two ways in which set-asides
                                                 on the basis of the contractor’s costs        can be determined. First, if an
                                                 during the performance of the contract.       acquisition of goods or services has an
HoW government                                   This type of contract is used in all sealed   anticipated dollar value of at least
contracting Works                                bid and some negotiated procurements.         $3,000 but not exceeding $100,000, it is
Sealed bidding vs. Negotiation                      Cost reimbursement contracts provide       automatically reserved for small
   There are two methods the                     for the payment of allowable costs            businesses. The acquisition will be set
government uses to purchase goods and            incurred by the contractor, to the extent     aside only if the contracting officer
services, sealed bidding and negotiation.        stated in the contract. The contract          determines there are two or more
The first method, sealed bidding,                establishes a ceiling price, above which a    responsible small business concerns that
involves issuing an invitation for bid by        contractor may not exceed without the         are competitive in terms of market
a procuring agency. Under the sealed             approval of the contracting officer. Cost     prices, quality and delivery. Second, if an
bidding method, a contract is usually            reimbursement contracts are used in           acquisition of goods or services is more
awarded to the lowest priced bidder that         research contracts that have commercial       than $100,000, and if it’s likely offers
can meet the quantity, quality and               applicability.                                will be obtained from at least two
delivery requirements of the                        Some contracts do not fit neatly into      responsible small business concerns, and
procurement. The second method,                  these two categories, such as time and        if awards will be made at fair market
negotiation, involves issuing a request          material contracts (prices for hourly         prices, the acquisition is reserved for
for proposal or request for quotation. The       wages are fixed but the hours are             exclusively for small business concerns.
business with the best proposal in terms         estimated) and letter contracts               Reasonable expectations of small
of technical content, price and other            (authorizes a contractor to begin work on     business competition may be evaluated
factors generally wins the contract.             an urgent requirement).                       using past acquisition history of an item
                                                                                               or similar items.

32 — Small Business Resource   SAN DIEGO                                                                     Visit us online:
   There are several exceptions and          perform on the contract. If the business        Just as Congress has given federal
unique rules for specific kinds of small     demonstrates the capability to perform,      agencies a goal of procuring 23 percent
businesses and industries. For R&D           the SBA issues a Certificate of              of federal contracts from small
small business set-asides, there must be     Competency to the contracting officer,       businesses, so too must federal agencies
reasonable expectation of obtaining from     requiring award of that contract to the      meet specific contracting goals for other
small businesses the best scientific and     small business.                              categories of small firms. These goals
technological sources consistent with the                                                 are:
demands of the proposed acquisition. For     WHat You sHoulD knoW                           • 5 percent of contracts go to Small
                                                                                              Disadvantaged Businesses
small business set-asides other than for
construction services, any concern
                                             about Your business                            • 5 percent go to Women-Owned Small
                                                To be eligible to bid on a federal            Businesses
proposing to furnish a product that it did                                                  • 3 percent go to Service-Disabled
not itself manufacture must furnish the      contract, you must know your business.
                                                                                              Veteran-Owned Small Businesses
product of a small business                  Answer the following three questions:          • 3 percent go to HUBZone Small
manufacturer unless the SBA has              1. Are you a small business?                     Businesses
granted either a waiver or exception to         Is your small business:                      Federal agencies have a strong
                                               • Organized for profit?
this requirement. In industries where                                                     incentive to fulfill these contracting
                                               • Located in the U.S.?
the SBA finds that there are no small                                                     goals. You should apply for those SBA-
                                               • Operated primarily within the U.S. or
business manufacturers, it may issue a           making a significant contribution to     Certified and Self-Certified programs for
waiver to the non-manufacturer rule.             the U.S. economy through payment of      which you qualify to take advantage of
Waivers permit small businesses to               taxes or use of American products,       contracting opportunities.
provide any domestic firm’s product.             materials, or labor?

                                               • Independently owned and operated?
                                               • Not dominant in the field of operation   Hubzone
                                                 in which it is bidding for government       The HUBZone program helps small
   Subcontracting opportunities are a
                                                 contracts?                               businesses located in distressed urban
great resource for small businesses,
                                               • A sole proprietorship, partnership,      and rural communities, known as
especially to those not ready to bid as                                                   Historically Underutilized Business
                                                 corporation, or any other legal form?
prime contractors. Experience gained            If the first six criteria apply to your   Zones, gain access to federal set-aside
from subcontracting with a federal prime     business, ask yourself the second            contracts and sole source contracts as
contractor can better prepare businesses     important question to find out if your       well as a price evaluation preference in
to bid for prime contracts.                  business meets size standard                 full and open contract competitions.
   Current regulations stipulate for         requirements.                                There is a statutory requirement that
contracts offering subcontracting            2. What is the size standard for your        HUBZone small business concerns be
opportunities over $650,000 for goods        business?                                    awarded not less than 3 percent of the
and services, or $1.5 million for               Size standards are used to determine      total value of all prime contract awards.
construction, large business prime           whether a business is small or “other        . The HUBZone program also establishes
contractors must offer maximum               than small”. Size standards vary             preference for award of federal contracts
practicable subcontracting opportunities     depending upon the industry. To              to small businesses in these areas. To
to small businesses. Large business          determine the size standard for your         qualify for the program, a business
prime contractors must submit a              business, you will need a NAICS code.        (except tribally-owned concerns) must
subcontracting plan describing how they      Every federal agency uses these codes        meet the following criteria:
will successfully subcontract to small       when considering your business. To             • It must be a small business by SBA
businesses.                                  determine your NAICS code, go to                 size standards
   To find subcontracting opportunities,                  • It must be owned and controlled at
                                               Some SBA programs require their                least 51% by U.S. citizens, or a
a list of Federal prime contractors is
                                             own unique size standards. To find out           Community Development Corporation,
available through SBA’s Subcontracting                                                        an agricultural cooperative, or an
Directory at and                 more about these requirements and
                                                                                              Indian tribe Research the list of prime      other size standard information, go to
                                                                                            • Its principal office must be located
contractors and determine which are                                 within a “Historically Underutilized
best suited for your business. Develop a     3. Do you fall under a specific                  Business Zone,” which includes lands
marketing strategy, and then contact the     certification?                                   considered “Indian Country” and
Small Business Liaison Officer listed for       Under the umbrella of “small                  military facilities closed by the Base
each prime to schedule an appointment.       business,” SBA has outlined several              Realignment and Closure Act
                                             specific certifications that businesses        • At least 35% of its employees must
certiFicate oF competencY                    may fall under. These certifications are
                                             divided into two categories:
                                                                                              reside in a HUBZone.
                                                                                            Existing businesses that choose to
program                                      SBA-Certified and Self-Certified.            move to qualified areas are eligible to
   The Certificate of Competency                The SBA-Certified Programs were           apply for certification. To fulfill the
program allows a small business, that is     created to assist specific businesses in     requirement that 35 percent of a
the apparent successful offeror, to appeal   securing federal contracts and therefore     HUBZone firm’s employees reside in a
a contracting officer’s non-responsibility   can only be issued by SBA                    HUBZone, employees must live in a
determination that it is unable to fulfill   administrators. For the Self-Certified       primary residence at a place for at least
the requirements of a specific               Programs, you can determine for              180 days, or as a currently registered
government contract. The SBA will            yourself if your business meets the          voter, and with intent to live there
conduct a detailed review of the firm’s      requirements by referring to the Federal     indefinitely.
technical and financial capabilities to      Acquisition Regulations (FAR).

Visit us online:                                                           SAN DIEGO Small Business Resource —   33
  SBA is responsible for:                     individuals are socially disadvantaged       Businesses each year. Large prime
  • Determining whether or not individual     individuals whose ability to compete in      contractors must also establish a
    concerns are qualified HUBZone small      the free-enterprise system has been          subcontracting goal for Veteran-Owned
    business concerns;                        impaired due to diminished capital and       Small Businesses in their
  • Maintaining a list of qualified           credit opportunities as compared to
    HUBZone small business concerns for
                                                                                           Subcontracting Plans. These
                                              others in the same or similar line of        subcontracting goals are reviewed at
    use by acquisition agencies in
                                              business who are not socially                time of proposal by both the contracting
    awarding contracts under the program;
  • Adjudicating protests and appeals of      disadvantaged.                               officer and SBA prior to the award of a
    eligibility to receive HUBZone               Firms owned by Alaska Native
    contracts.                                Corporations, Indian Tribes, Native
                                                                                              The SDVOSB Protest is administered
  For additional information, visit           Hawaiian Organizations, and
                                              Community Development Corporations           by SBA to ensure that only businesses                                                                       owned by service-disabled veterans
                                              can also apply to the SBA for 8(a)
                                              business development assistance.             receive contracts reserved exclusively for
8(a) business Development                        So that approved firms can obtain         them. When a business’s SDVOSB self-
program                                       training, counseling, and business           certification is challenged, SBA
   The 8(a) Business Development              development assistance, SBA designates       determines if the business meets the
program is a nine year program                a staff person at a local SBA District       status, ownership, and control
established to assist eligible socially and   Office, geographically near the business.    requirements.
economically disadvantaged individuals           SBA is responsible for                       To determine your eligibility, contact
develop and grow their businesses.              • Determining whether a business           your local veterans business
Business development assistance                   qualifies for the 8(a) Business          development officer, visit the various
includes one-to-one counseling, training          Development program
                                                                                           program websites, or contact SBA’s
workshops, and other management and             • Determining whether a business
                                                  continues to qualify, during the nine-   Office of Veterans Business
technical guidance. There is a statutory
                                                  year term.                               Development at
requirement that small disadvantaged
                                                • Approving Mentor/Protégé agreements         For more information on certifications
business concerns be awarded not less
                                                  between 8(a) firms and large             not described in depth here, refer to the
than 5 percent of the total value of all          businesses.
prime contract awards. All firms that                                                      glossary of terms.
                                                For additional information, visit
become eligible for SBA’s 8(a) business
development assistance are also                                                            Women-oWneD small
considered small disadvantaged business
concerns for federal contracting. To be       sDb                                          business FeDeral contract
eligible for the 8(a) Business                   An SDB (Small Disadvantaged               program
Development program, a business must          Business) is defined as a small business        On October 7, 2010, the SBA
meet the following criteria:                                                               published a final rule effective February
                                              that is at least 51 percent owned and
  • It must be a small business by SBA                                                     4, 2011, aimed at expanding federal
    size standards;                           controlled by one or more individuals
  • It must be owned (at least 51 percent)    who are socially and economically            contracting opportunities for women-
    by one or more individuals who qualify    disadvantaged.                               owned small businesses. The Women-
    as socially and economically                 There is a federal-government wide        Owned Small Business Federal Contract
    disadvantaged, and who are US             goal of awarding at least 5 percent of       program authorizes contracting officers
    citizens of good character;                                                            to set aside certain federal contracts to
                                              prime contracting dollars to SDBs each
  • It must be controlled, managed, and                                                    Women-owned firms. For additional
    operated by one or more individuals       year. Large prime contractors must also
                                              establish a subcontracting goal for SDBs     information, visit
    who qualify as disadvantaged, and;
  • It must demonstrate potential for         in their Subcontracting Plans.               contracting-opportunities-women-owned-
    success (generally by being in business      Firms self-certify as SDB for without     small-businesses.
    for at least two full years) before       submitting any application to SBA,
    applying.                                 however firms approved by SBA into the
   Socially disadvantaged individuals are     8(a) Business Development program are
those who have been subjected to racial
                                              automatically certified as an SDB. To
or ethnic prejudice or cultural bias
                                              self-certify, firms should update their
because of their identity as a member of
a group without regard to their               CCR profiles and update their ORCA
individual capabilities. The following        profiles, making sure that both profiles
individuals are presumed to be socially       reflect their SDB status.
disadvantaged: Black Americans, Native
Americans, American Indians, Eskimos,         sDvosb
Aleuts, or Native Hawaiians, Hispanic
                                                The SDVOSB (Service-Disabled
Americans, Asian Pacific Americans, and
                                              Veteran-Owned Small Business)
Subcontinent Asian Americans. An
individual who is not a member of one of      program has a federal government-wide
these groups must establish individual        goal of awarding at least 3 percent of
social disadvantage by a preponderance        prime and subcontracting dollars to
of evidence. Economically disadvantaged       Service-Disabled Veteran-Owned Small

34 — Small Business Resource   SAN DIEGO                                                                 Visit us online:
HoW to get starteD                                6. Register with the GSA Schedule
                                                     The GSA (Government Services
                                                                                                1. The 8(a) Business Development
   Once you have identified the                      Administration) Multiple Award                The 8(a) Business Development
important information regarding your                 Schedule (aka Federal Supply                  Program provides development support
business, it is time to start the process of         Schedule) is used by GSA to establish         to small businesses that are
procuring a government contract. Take                long-term, government-wide contracts          economically and/or socially
these necessary steps to begin the                   with commercial firms. Once these             disadvantaged. To find out more, go to
bidding process:                                     contracts are established, government
  1. Identify your DUNS (Data Universal              agencies can order the supplies and        2. The Mentor Protégé Program
     Numbering System) number                        services they need directly from the          The Mentor Protégé Program
     To register your business, obtain a             firms through the use of an online            encourages approved mentors to
     DUNS number used to identify and                shopping tool. Becoming a GSA                 provide various forms of business
     track millions of businesses. You can           schedule contractor increases your            assistance to eligible 8(a) participants
     obtain your free DUNS number when               opportunity for contracts across all          as protégés to improve their ability to
     registering with the CCR (Central               levels of government. Businesses              compete in the public and private
     Contractor Registration) at         interested in becoming GSA schedule           marketplaces successfully. To find out
     or by contacting Dun & Bradstreet at            contractors should review the                 more, go to
                                                     information available at                   3. Online Training Programs
  2. Identify your EIN
                                                                   SBA’s Small Business Training
                                                  7. Make Sure Your Business is Financially        Network is a virtual campus complete
     (Employer Identification Number)
                                                     Sound                                         with courses and programs to help the
     An EIN, otherwise known as a federal
                                                     This critical step is absolutely              small business owner. The free,
     tax identification number, is generally
                                                     necessary to make sure that your              30-minute course, “Business
     required of all businesses. For more
                                                     business is financially prepared for the      Opportunities: A Guide to Winning
     information, go to
                                                     journey ahead. Even if you are able to        Federal Contracts,” is a good
  3. Identify your NAICS and SIC codes
                                                     obtain a government contract, you will        introduction for businesses looking to
     The NAICS and SIC codes are used to
                                                     not be receiving all of the money at          obtain a contract with the federal
     classify the industry a particular
                                                     once. It helps to have a clear plan of        government. To view this course,
     business occupies. To register your
                                                     how your business will stage the              among others, go to
     business, supply at least one code.
                                                     benefits of the contract.
     Refer to the Glossary for more                                                      
                                                  8. Search FedBizOpps for contracting          4. Online Podcasts
                                                     opportunities                                 To make help even more accessible,
  4. Register with the CCR
                                                     Federal Business Opportunities, or            SBA has podcasts on a variety of topics
     The CCR is an online government-
                                                     FedBizOpps, is an online service              that will provide more specific
     maintained database of companies
                                                     operated by the federal government            information on SBA, government
     wanting to do business with the
                                                     that announces available business             contracting, and small businesses. To
     federal government. Agencies search
                                                     opportunities. FedBizOpps helps               access these podcasts, go to
     the database for prospective vendors.
                                                     identify the needs of federal agencies and select the
     The CCR is at
                                                     and available contracting                     topic you want to learn more about.
   After completing registration, you will
                                                     opportunities. To begin searching for
be asked to enter your small business                contracting opportunities, go to
                                                                                                5. Counseling Services
profile information through the SBA                                                                SBA has a variety of counseling
                                                                             services aimed at targeting the various
Supplemental Page. The information                9. Marketing Your Business
will be displayed in the Dynamic Small                                                             needs of small business owners. Some
                                                     Registering your business is not              of the counseling services we offer are:
Business Search.                                     enough to obtain a federal contract:             o SBA district offices: These offices
   Creating a profile in CCR and keeping             you will need to market your business              can provide general information
it current ensures your firm has access              to attract federal agencies. Tips for              about SBA and government
to federal contracting opportunities.                good marketing are:                                contracts.
Entering your small business profile,                   o Determine which federal agencies            o SBDCs (Small Business
including your business information and                   buy your product or service, and              Development Centers): SBDCs
key word description, allows contracting                  get to know them                              provide management assistance to
officers, prime contractors, and buyers                 o Identify the contracting                      current and prospective small
from state and local governments to                       procedures of those agencies                  business owners in the form of
learn about your company.                               o Focus on opportunities in your                both information and guidance.
  5. Use ORCA                                             niche and prioritize                        o WBCs (Women’s Business
     Prospective contractors must complete         Although not required, you may want                  Centers): WBCs exist to help
     (electronically or through submission      to obtain a PSC (Product Services Code)                 women entrepreneurs, especially
     of paperwork), representations and         and/or a FSC (Federal Supply                            women who are economically
     certifications for small business size     Classification). These codes provide                    and/or socially disadvantaged,
     and program status as part of the          additional information about the services               start and grow their own business.
     process that registers your business for   and products your business offers.                      This is achieved through
     federal contracting opportunities. To                                                              comprehensive training and
     make this process easier for everyone                                                              counseling on a vast array of topics
     involved, the government developed         available resources                                     in many languages.
     ORCA (Online Representations and                                                                 o SCORE - Counselors to America’s
                                                  SBA has a variety of services and
     Certifications Application), where                                                                 Small Business: One of SBA’s
                                                resources that can provide you with                     resource partners, SCORE in a
     generally, businesses can complete all
                                                more information and coach you through                  non-profit organization dedicated
     of the paperwork online. To begin this
     process, first register your firm in       the necessary steps to take in order to be              to helping entrepreneurs and
     CCR, then go to          successful in your search for a                         small business start, grow, and
                                                government contract.                                    succeed nationwide.

Visit us online:                                                                SAN DIEGO Small Business Resource —   35
        o Office of Veterans Business
                                                                     GLOSSARY OF TERMS
          Development: The Office of
          Veterans Business Development
          aims at maximizing the                  8(a): The 8(a) Business Development          complete your registration, but be sure
          availability, applicability, and        Program assists eligible socially and        to list as many as apply. You may also
          usability of SBA programs for           economically disadvantaged individuals       add or change NAICS codes at any time.
          Veterans, Service-Disabled              develop and grow their business. There       To find your NAICS code, visit
          Veterans, Reserve Component             is a federal government-wide goal of
          Members, and their dependents or        awarding at least 5 percent of               www/naics/index.html.
          survivors.                              contracting dollars to small
     To find the locations of these offices, or   disadvantaged businesses (SDBs); and         Mentor Protégé Program: The SBA-
     to learn more, go to                         firms approved into the 8(a) BD program      sponsored Mentor Protégé Program is a                                                                   subset of the 8(a) Business Development
                                                  are automatically certified as an SDB.
  6. Procurement Resources
                                                  Businesses that usually have been in         program. Mentor firms are paired with
     There are three main resources
     available for procurement concerns:          existence for at least two years may be      protégé firms to provide managerial and
        o PTACs (Procurement Technical            eligible for the nine-year program that      technical assistance to compete
          Assistance Centers): PTACs              includes counseling, training, and           successfully for federal contracts. For
          provide assistance to businesses        potential federal procurement                more information, go to
          that want to sell products and          opportunities.                     
          services to federal, state, and/or
          local government. To find a PTAC        CCR (Central Contractor Registration):       Service-Disabled Veteran-Owned: The
          in your state, go to                    The CCR is an online government-             Service-Disabled Veteran-Owned Small
            maintained database of companies             Business program is a subset of the
        o PCRs (Procurement Center                wanting to do business with the federal      Veteran-Owned Small Business
          Representatives) and CMRs                                                            program, and has a federal government-
                                                  government. Agencies search this
          (Commercial Marketing
                                                  database for prospective vendors. To         wide goal of awarding at least 3 percent
          Representatives): PCRs work to
          increase the small business share       register with the CCR, go to                 of prime and subcontracting dollars to
          of federal procurement awards.                                 Service-Disabled Veteran-Owned Small
          CMRs offer many services to                                                          Businesses each year.
          small businesses, including             FAR (Federal Acquisition Regulations):
          counseling on how to obtain             The FAR is the book of official              SIC (Standard Industrial Classification):
          subcontracts. To find a PCR or          acquisition regulations by which             SIC codes are four-digit numbers that
          CMR near you, go to                     government programs are defined and          are used to classify the industry a
                 federal agencies determine the awarding      particular business occupies. While
                                                  of contracts. To view the complete FAR,      NAICS codes have largely replaced SIC
                                                  go to               codes, you will still need to provide your
                                                                                               SIC code. SIC codes can be found at
 Additional Online Resources                      GCBD (Government Contracting and   
                                                  Business Development): The Office of
   ■ Department of Defense (The                   Government Contracting and Business          Veteran-Owned: A veteran-owned small
     DoD is the largest purchaser of              Development is an office within SBA          business is defined as one that is at least
                                                  that aims to enhance the effectiveness of    51 percent owned and controlled by one
     goods from small businesses):
                                                  small business programs by developing        or more veterans; or, in the case of any
                                                  policies, regulations, and statutory         publicly owned business, at least 51
                                                  changes. Please refer to the official        percent of the stock is owned by one or
   ■ Office of Federal Procurement                website at          more veterans and whose management
     Policy:                                                                                   and daily business operations are                      HUBZone (Historically Underutilized          controlled by one or more veterans. For
     procurement                                  Business Zone): HUBZones are SBA-            more information, go to
                                                  designated geographic regions that have
   ■ Acquisition Forecast:                        been historically underutilized. There is                    a federal government-wide goal of            Women-Owned: A woman-owned small
     procurement_forecasts/index.                 awarding at least 3 percent of               business is defined as one that is at least
     html                                         contracting dollars to small businesses      51 percent owned and controlled by one
                                                  in HUBZones. In order to be eligible for     or more women; or, in the case of any
   ■ Federal Supply Schedule (FSS):               the HUBZone program, businesses must         publicly owned business, at least 51                                  have their headquarters located in a         percent of the stock is owned by one or
                                                  HUBZone and 35 percent of their              more women and whose management
                                                  employees must reside in a HUBZone.          and daily business operations are
   ■ GSA Center for Acquisition
                                                                                               controlled by one or more women. There
     Excellence:                                                                               is a federal goal of awarding at least 5
                                                  NAICS (North American Industry                          Classification): NAICS codes are six-digit   percent of contracting dollars to women-
     content/103487                               numbers that are used to classify the        owned small businesses each year. For
                                                  industry a particular business occupies.     more information, go to
                                                  You will need at least one NAICS code to

36 — Small Business Resource   SAN DIEGO                                                                       Visit us online:
                                             DISASTER RECOVERY &

                        DISASTER ASSISTANCE
                             Knowing the Types of Assistance Available for Recovery
                                                                                               More information on all of SBA’s
                                                                                            disaster assistance programs, including
                                                                                            information for military reservists, is
                                                                                            available at
                                                                                            Disaster Preparedness
                                                                                               For small businesses, surviving a
                                                                                            disaster doesn’t begin with clearing the
                                                                                            debris and returning to work.
                                                                                               Surviving begins long before the
           he disaster program is SBA’s      injury disaster loans to small businesses,     disaster strikes, or before active-duty

T          largest direct loan program,
           and the only SBA program for
           entities other than small
           businesses. SBA is
responsible for providing affordable,
timely and accessible financial assistance
to homeowners, renters, businesses of all
                                             small agricultural cooperatives and
                                             private nonprofit organizations of all
                                             sizes. The loan limit for economic injury,
                                             as a direct result of the disaster event, is
                                             $2 million. These working capital loans
                                             are intended to be made to entities
                                                                                            orders are received – with proper
                                                                                            planning. Your planning should include
                                                                                            insurance coverage, emergency power,
                                                                                            protection of company records, fire safety,
                                                                                            medical emergencies, taking care of your
                                                                                            employees and continuity planning – how
                                                                                            your business will continue during and
                                             without credit elsewhere, as determined
sizes and private, nonprofit organizations   by SBA, to help pay ordinary and               after the emergency or disaster.
following declared disasters. By law,        necessary operating expenses that would           Starting is as easy as clicking on the
governmental units and agricultural          have been payable barring the disaster         SBA’s Web site at
enterprises are ineligible.                                                                 The site includes a wealth of information
                                             event. The limit for physical and EIDL
     The SBA is authorized by the Small                                                     on the SBA’s disaster recovery programs
                                             loans combined is $2 million.
Business Act to make two types of                                                           for homeowners, renters, businesses of
                                                Military Reservists Economic Injury         all sizes and private, nonprofit
disaster loans:
                                             Disaster Loans, a type of economic injury      organizations. There are articles on
                                             loan, are available for up to $2 million to    emergency planning for disasters,
Physical Disaster Loans                      assist eligible small businesses meet
   Physical Disaster Loans are the                                                          descriptions of SBA’s programs, and links
primary source of funding for permanent      their ordinary and necessary operating         to government and industry Web sites
rebuilding and replacement of uninsured      expenses that they could have met, but         with great planning information.
or underinsured disaster-caused              are unable to meet, because an essential          Additionally, to help small businesses
damages to privately-owned real and/or       employee was “called up” to active duty        with their preparedness planning, SBA
personal property. SBA’s physical            in his/her role as a military reservist.       has teamed up with Agility Recovery
disaster loans are available to              These loans are intended to provide only       Solutions to encourage small businesses
homeowners, renters, businesses of all       the amount of working capital needed by        to take the necessary steps to protect
sizes and private nonprofit organizations    a small business to pay its necessary          their employees, important records and
of all sizes. A homeowner may apply for a    obligations as they mature until               their business assets. SBA and Agility
loan of up to $200,000 to repair or          operations return to normal after the          have partnered to provide an educational
                                             essential employee is released from            tool for small business owners via the
replace the primary residence to its pre-
                                                                                            Prepare My Business Web site
disaster condition. Homeowners or            active military duty.
renters may apply for a loan up to              For all disaster loans, SBA can only           As small businesses are leading
$40,000 to help repair or replace personal   approve loans to applicants having a           America’s economic recovery, many of
property, such as clothing, furniture or     credit history acceptable to SBA and who       them are investing time and money into
automobiles, lost in the disaster.           also show the ability to repay the loans.      their plans to grow and create jobs.
Businesses and private, nonprofit            The terms of each loan are established in      Developing a strong disaster
organizations of any size may apply for a    accordance with each borrower’s ability        preparedness plan should be a critical
loan up to $2 million (actual loan           to repay. The law gives SBA several            and integral piece of those efforts.
amounts are based on the amount of           powerful tools to make disaster loans          Planning for a disaster is the best way of
uncompensated damage) to repair or           affordable: low-interest rates (around 4       limiting its effects.
replace real property, machinery,            percent), long-terms (up to 30 years), and
equipment, fixtures, inventory and                                                          Other helpful sites include:
                                             refinancing of prior liens (in some cases).
leasehold improvements.                                                                       Department of Homeland Security
                                             As required by law, the interest rate for
                                                                                            (DHS) and the Federal Emergency
                                             each loan is based on SBA’s                    Management Agency (FEMA) -
Economic Injury Disaster Loans               determination of whether each applicant
  Economic injury disaster loans provide                                          
                                             does or does not have credit available           Red Cross Ready Rating Program -
the necessary working capital after a
                                             elsewhere (the ability to borrow or use and
declared disaster until normal operations
                                             their own resources to overcome the
resume. The law restricts economic

Visit us online:                                                             SAN DIEGO Small Business Resource —   37

                         WATCHING OUT FOR YOU
                                           The SBA is Your Voice in Washington

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

38 — Small Business Resource   SAN DIEGO                                                                 Visit us online:
 otHer sources oF                               CALIFORNIA COC
                                                  1332 N. Market
                                                                                        CORONADO COC
                                                                                          875 Orange Ave., Ste. 102
                                                                                                                               GREATER SAN DIEGO BUSINESS
 assistance                                       Sacramento, CA 95834
                                                                                          Coronado, CA 92118
                                                                                                                                 P.O. Box 33848
                                                                                                                                 San Diego, CA 92163
 Chambers of Commerce                                                                                                  
                                                                                        CUYAMACA COLLEGE
 and Business                                   CALIFORNIA DISABLED VETERAN
                                                                                          900 Rancho San Diego Pkwy.
 Organizations                                  BUSINESS ALLIANCE                                                              IMPERIAL BEACH COC
                                                  1611 S St., Ste. 102                    El Cajon, CA 92019                     700 Seacoast Dr., Ste. 103
    Chambers of Commerce and local business                                               619-660-4226
    organizations serve as a central location     Sacramento, CA 95811                                                           Imperial Beach, CA 91932
                                                  916-446-3510                                            619-424-3151
    where the local small business community
    may obtain information, publications and                        DISABLED BUSINESSPERSONS       
    contact information.                                                                ASSOCIATION
                                                CALIFORNIA MANUFACTURING                  c/o SDSU - Interwork Institute       INTERNATIONAL COC
 ALPINE & MOUNTAIN EMPIRE COC                   TECHNOLOGY CONSULTING (CMTC)              3590 Camino del Rio N., Ste. 117       3838 43rd St.
   2157 Alpine Blvd.                              690 Knox St., Ste. 200                  San Diego, CA 92108                    San Diego, CA 92105
   Alpine, CA 91901                               Torrance, CA 90502                      619-594-8805                           888-999-3922 Toll Free
   619-445-2722                                   800-300-CMTC (CA only) or                                    310-263-3060
                                                                  EAST COUNTY ECONOMIC DEVELOPMENT       JULIAN COC
                                                                                        COUNCIL                                  2129 Main Street/P.O. Box 1866
                                                CARDIFF BY THE SEA COC                    1870 Cordell Ct., Ste. 202             Julian, CA 92036
                                                  124 Aberdeen Dr./P.O. Box 552           El Cajon, CA 92020                     760-765-1857
   5675 Ruffin Rd., Ste. 305
                                                  Cardiff, CA 92007                       619-258-3670                 
   San Diego, CA 92123
   858-277-2822                                                                           LAKESIDE COC
                                                                                        EL CENTRO COC
                                                                                                                                 9924 Vine St.
                                                                                          1095 S. 4th St.
 ASSOCIATED GENERAL CONTRACTORS                 CARLSBAD COC                                                                     Lakeside, CA 92040
                                                                                          El Centro, CA 92243
 OF AMERICA                                       5934 Priestly Dr.                                                              619-561-1031
   6212 Ferris Sq.                                Carlsbad, CA 92008                                                   
   San Diego, CA 92121                            760-931-8400
   858-558-7444                                               EMPLOYEE TRAINING INSTITUTE (ETI)      LAWYER REFERRAL & INFORMATION                                                                          4343 Ocean View Blvd., Bungalow F    SERVICE OF SAN DIEGO COUNTY BAR
                                                CENTRAL SAN DIEGO BLACK COC               San Diego, CA 92113                  ASSOCIATION
 BAYVIEW COMMUNITY DEVELOPMENT                    9921 Carmel Mountain Rd., #179          619-388-1250                           1333 Seventh Ave. (mailing address only)
 CORPORATION                                      San Diego, CA 92129                              San Diego, CA 92101
   5532 El Cajon Blvd., Ste. 5                    858-939-1849                                                                   619-231-8585
                                                     ENCINITAS COC                  
   San Diego, CA 92115
                                                                                          527 Encinitas Blvd., Ste. 106
                                                CHICANO FEDERATION OF                     Encinitas, CA 92024                  MABUHAY ALLIANCE
                                                SAN DIEGO COUNTY, INC.                    760-753-6041                          9580 Black Mountain Rd., Ste. A
                                                  3180 University Ave., Ste. 317              San Diego, CA 92126
   5050 Murphy Canyon Rd., Ste. 110               P.O. Box 40508                                                                858-586-7382
                                                                                        ESCONDIDO COC
   San Diego, CA 92123                            San Diego, CA 92164                                                 
                                                                                          720 N. Broadway
   858-496-2131                                   619-285-5600
                                                                                          Escondido, CA 92025                                                                    MEXICAN INTERNATIONAL COC AND
 BLACK CONTRACTOR’S ASSOCIATION                 CHULA VISTA COC                                                                  P.O. Box 4422
 OF SAN DIEGO                                     233 Fourth Ave.                       FALLBROOK COC                            Rancho Del Rey, CA 91909-4422
   6125 Imperial Ave.                             Chula Vista, CA 91910                   233 E. Mission Rd.                     619-463-9426
   San Diego, CA 92114                            619-420-6603                            Fallbrook, CA 92028          
   619-263-9791                                        760-728-5845                                                                   NATIONAL ASSN. OF PROFESSIONAL
                                                CITY HEIGHTS BUSINESS ASSOCIATION                                              ORGANIZERS - SAN DIEGO CHAPTER
 BONSALL COC                                       4305 University Ave., Ste. 540       FILIPINO-AMERICAN COC                    P.O. Box 1824
   5256 S. Mission Rd., Ste 311                    San Diego, CA 92105                     415 Laurel St./PMB #218               La Jolla, CA 92038
   Bonsall, CA 92003                               619-906-4443                            San Diego, CA 92101                   619-507-8301
   760-630-1933                                             619-702-8690                                                                                              NATIONAL ASSOCIATION FOR THE SELF
                                                  8950 Villa La Jolla Dr., Ste. A-124                                          EMPLOYED
 BORREGO SPRINGS COC                                                                    GOLDEN TRIANGLE COC                      P.O. Box 241
   786 Palm Canyon Dr./P.O. Box 420               La Jolla, CA 92037                      1011 Camino Del Mar #256
                                                  858-964-1300                                                                   Annapolis Junction, MD 20701-0241
   Borrego Springs, CA 92004                                                              Del Mar, CA 92014                      800-649-6273
   800-559-5524                                                  858-350-1253                                                                 
                                                CONTACTING OPPORTUNITIES CENTER                                                NATIONAL ASSOCIATION OF HISPANIC
 BRAWLEY COC                                    (COC)                                   GREATER CLAIREMONT COC                 REAL ESTATE PROFESSIONALS – VISTA
   204 S. Imperial Ave./P.O. Box 218              4007 Camino Del Rio S., Ste. 210        4203 Genesee Ave., Ste. 103-122        138 Escondido Ave., #207B
   Brawley, CA 92227-0218                         San Diego, CA 92108                     San Diego, CA 92117                    Vista, CA 92084
   760-344-3160                                   619-285-7020                            619-491-4444                           760-803-4696                            

Visit us online:                                                                                       SAN DIEGO Small Business Resource —          39
 NATIONAL ASSOCIATION OF                         POWAY COC                               SAN DIEGO REGIONAL COC                   SOUTHEASTERN ECONOMIC
 WOMEN IN CONSTRUCTION                             13381 Poway Rd./P.O. Box 868            402 W. Broadway, Ste. 1000             DEVELOPMENT CORPORATION (SEDC)
   P.O. Box 880725                                 Poway, CA 92074-0868                    San Diego, CA 92101-3585                 404 Euclid Ave., Ste. 221
   San Diego, CA 92168                             858-748-0016                            619-544-1300                             San Diego, CA 92114
   619-462-3473                                                                   619-527-7345                                                                                                        
                                                 RAMONA COC                              SAN DIEGO REGIONAL ECONOMIC
 NATIONAL CITY COC                                 960 Main St.                          DEVELOPMENT CORPORATION                  SPRING VALLEY COC
   901 National City Blvd.                         Ramona, CA 92065-1934                   One-Stop Early Permitting Assistance     3322 Sweetwater Springs Blvd.
   National City, CA 91950                         760-789-1311                            530 B St., 7th Fl.                       Ste. 202/P.O. Box 1211
   619-477-9339                                             San Diego, CA 92101                      Spring Valley, CA 91977                                                             619-234-8484                             619-670-9902
                                                 SAN DIEGO COASTAL COC                  
 NATIONAL ELECTRICAL CONTRACTORS                   1104 Camino del Mar, Ste. 1
 ASSN. - SAN DIEGO CHAPTER                         Del Mar, CA 92014                     SAN DIEGO UNIFIED PORT DISTRICT          SWEDISH AMERICAN COC
   9350 Waxie Wy., Ste. 540                        858-755-4844                            3165 Pacific Hwy.                        9740 Scranton Rd,
   San Diego, CA 92123                                      San Diego, CA 92101-1128                 San Diego, CA, 92121
   858-571-6322                                                                            619-686-6200                             858-598 4809                          SAN DIEGO COUNTY HISPANIC COC            
                                                   821 Kuhn Dr Suite 107
 NATIONAL ASSOCIATION OF WOMEN                     Chula Vista, CA 91914                 SAN DIEGO WOMEN'S NETWORK                TIJUANA ECONOMIC DEVELOPMENT
 BUSINESS OWNERS                                   PO Box 131548                           P.O. Box 882771                        COUNCIL
 SAN DIEGO CHAPTER (NAWBO-SD)                      San Diego, CA 92170                     San Diego, CA 92168                       4492 Camino de la Plaza, #PMBTJ-1053
   P.O. Box 880263                                 858-268-0790                            619-795-2224                              San Diego, CA 92173 USA
   San Diego, CA 92168                                                                 (011-52) 664-681-8344
   877-866-2926                                                                                                                      1-888-TIJU-EDC (Toll Free in the U.S. and                              SAN DIEGO EAST COUNTY REGIONAL COC      SAN DIEGO WORKFORCE PARTNERSHIP             Canada)
                                                   201 S. Magnolia Ave.                    3910 University Ave., Ste. 400  
 NATIONAL LATINA BUSINESS WOMEN                    El Cajon, CA 92020                      San Diego, CA 92105
 ASSOCIATION                                       619-440-6161                            619-228-2900                           URBAN LEAGUE OF SAN DIEGO COUNTY
 SAN DIEGO (NLBWA-SD)                                            720 Gateway Center Dr.
   P.O. Box 876                                                                                                                     San Diego, CA 92102
   La Jolla, CA 92038                            SAN DIEGO FOUNDATION                    SAN MARCO COC                              619-266-6247
   619-204-4048                                    (Grant Library)                         904 W. San Marcos Blvd., Ste.10                                2508 Historic Decatur Rd., Ste. 200     San Marcos, CA 92078
                                                   San Diego, CA 92106                     760-744-1270                           VALLEY CENTER COC
 NATIONAL SOCIETY OF HISPANIC MBA’S                619-235-2300                                       27301 Valley Center Rd.
 (NSHMBA)                                                                                             Valley Center, CA 92082
   P.O. Box 880415                                                                       SAN YSIDRO COC                             760-749-8483
   San Diego, CA 92168-0415                      SAN DIEGO FRENCH AMERICAN COC             663 E. San Ysidro Blvd.        
   619-934-7470                                    964 Fifth Ave., Ste. 212                San Ysidro, CA 92173                         San Diego, CA 92101                     619-428-1281                           VISTA COC
                                                   619-544-1445                                   201 Washington St.
 NON-PROFIT MANAGEMENT SOLUTIONS                                                                   Vista, CA 92084
   8265 Vickers St.                                                                      SANTEE COC                                 760-726-1122
   San Diego, CA 92111                           SAN DIEGO HOME LOAN COUNSELING            10315 Mission Gorge Rd.        
   858-292-5702                                  AND EDUCATION CENTER                      Santee, CA 92071                             3180 University Ave., Ste. 300          619-449-6572                           WOMEN IN BUSINESS SAN DIEGO
                                                   San Diego, CA 92104-2045                        P.O. Box 19034
 OCEANSIDE COC                                     619-624-2330                                                                    San Diego, CA 92159
   928 N. Coast Hwy.                                         SOCIETY OF WOMEN ENGINEERS                619-645-8887
   Oceanside, CA 92054                                                                     P.O. Box 881205               
   760-722-1534                                  MANA DE SAN DIEGO                         San Diego, CA 92168                       2515 Camino Del Rio S., Ste. 228         619-279-9523                           WOMEN IN TECHNOLOGY INTL. -
                                                  San Diego, CA 92108                                SAN DIEGO
 OLD TOWN SAN DIEGO COC                           619-297-0115                                                                      P.O. Box 675461
   2415 San Diego Ave., Ste. 107                                 SOLANA BEACH COC                           Rancho Santa Fe, CA 92067
   San Diego, CA 92110                                                                     210 West Plaza/P.O. Box 623              619-436-6465
   619-291-4903                                  SAN DIEGO NORTH COC &                     Solana Beach, CA 92075                                SAN DIEGO NORTH STUDENT COC               858-755-4775
                                                   11650 Iberia Pl., Ste. 220                 WORLD TRADE CENTER
 OTAY MESA COC                                     San Diego, CA 92128                                                            OF SAN DIEGO
   9163 Siempre Viva Rd., Ste. I-2                 858-487-1767                          SOUTH COUNTY ECONOMIC                      2980 Pacific Hwy.
   Otay Mesa, CA 92154                                            DEVELOPMENT COUNCIL                        San Diego, CA 92101
   619-661-6111                                                                            1111 Bay Blvd., Ste. E                   619-615-0868                              SAN DIEGO PUBLIC LIBRARY                  Chula Vista, CA 91911          
 PENINSULA COC                                   (DOWNTOWN)                                619-424-5143
   P.O. Box 6015                                   820 E St.                     
   San Diego, CA 92166-6015                        San Diego, CA 92101
   619-223-9767                                    619-236-5800              

40 — Small Business Resource         SAN DIEGO                                                                                          Visit us online:
   SBA PARTICIPATING                       BUSINESS LENDERS                         CIT SMALL BUSINESS LENDING             COMPASS BANK                         INTERNATIONAL CITY BANK (P)
                                             15 Lewis St.                           CORP. (P)                                2850 E. Camelback Rd., Ste. 320      3939 Governor Drive
   LENDERS                                   Hartford, CT 06103                        6965 El Camino Real, #105-556         Phoenix, AZ 85016                    San Diego, CA 92122
   ADVANTAGE CDC (504)                       800-646-7689 ext. 235                     Carlsbad, CA 92009                    602-522-7536                         858-455-0202
     11 Golden Shore, Ste. 630                    760-918-9810                
     Long Beach, CA 90802                                                    
     562-983-7450                          CALIFORNIA BANK & TRUST                                                         DESERT COMMERCIAL BANK               IRONSTONE BANK               (P,E,PE,504)                             CITIBANK (P,504)                         1599 W. Main St.                     835 Pearl St.
                                              4320 La Jolla Village Dr., Ste. 100      320 N. Harbor Blvd., Ste. A           El Centro, CA 92243                  La Jolla, CA 92037
   BANCO POPULAR NORTH                        San Diego, CA 92122                      Fullerton, CA 92832                   760-339-6179                         858-332-3924
   AMERICA (P,E)                              858-623-3632                             800-627-3999                   
     888 Disneyland Dr.                    
     Anaheim, CA 92802                        858-623-3103                                                                 EAST WEST BANK                       JP MORGAN/CHASE BANK
     714-864-5041                                   CITY NATIONAL BANK (P,E,PE,504)          2090 Huntington Dr., 2nd Fl.          101 W. Broadway, Ste. 100                                                                 13500 Evening Creek Dr., Ste. 100     San Marino, CA. 91108                 San Diego, CA 92101
                                           CALIFORNIA COAST CREDIT UNION               San Diego, CA 92128                   626-979-5076                          619-702-7255
   BANK OF AMERICA (P,E)                     9201 Spectrum Center Blvd.                858-875-2034                
     450 B St., Ste. 680                     San Diego, CA 92123             
     San Diego, CA 92101                     858-636-3446                                                                  EMBARCADERO BANK                     LANDMARK CDC
     619-515-5964 or local branch                      COMERICA BANK (P)                        110 West A St., Ste. 1000            441 E. Whittier Blvd., Ste. C                                                           611 Anton Blvd., 2nd Fl.               San Diego, CA 92101                  La Habra, CA 90631
   BANK OF INTERNET                        CALIFORNIA COMMUNITY BANK                  Costa Mesa, CA 92626                   619-814-1749                         562-690-6400
     12777 High Bluff Drive, Ste. 100        1320 W. Valley Pkwy., Ste. 301           800-777-7556 or 714-424-3838 
     San Diego, CA 92130                     Escondido, CA 92029            
     858-350-6200 ext. 1100                  760-888-1013                                                                  EXCEL NATIONAL BANK (P)              MANUFACTURERS BANK (P)         COMMERCE BANK OF TEMECULA                9701 Wilshire Blvd.                 701 B St., Ste. 336
                                                                                    VALLEY                                   Beverly Hills, CA 90212             San Diego, CA 92101
   BANK OF THE WEST (P,E)                  CALIFORNIA STATEWIDE CDC                   25220 Hancock Ave., Ste. 140           858-312-6083                        619-544-3011 or 888-307-1543
     8690 Center Dr.                       (504)                                      Murrieta, CA 92562               
     La Mesa, CA 92942                       12526 High Bluff Drive, Ste.300          951-973-7412                           619-846-2857
     760-807-4182                            San Diego, CA 92130                            MISSION OAKS NATIONAL BANK        714-272-2629                                                                                                       (P)
                                                  COMMERCE NATIONAL BANK                 FIRST BANK (P,E,PE,504)                 41530 Enterprise Circle South
   BANK OF SOUTHERN CALIFORNIA               300 N. Lake Ave., Ste. 425             (P,504)                                   750 B St., Ste. 2505                 Temecula, CA 92590
   (P)                                       Pasadena, CA 91101                        4040 MacArthur Blvd., Ste. 100         San Diego, CA 92101                  951-719-1235
      12265 El Camino Real, Ste.100          800-982-9192                              Newport Beach, CA 92660                619-515-2250               
      San Diego, CA 92130                                     949-474-5209                 
      858-847-4786                                                                                                        MUTUAL OF OMAHA BANK               CAPITAL ACCESS GROUP (P,504)                                                    FIRST CITIZENS BANK                   3580 Carmel Mountain Rd.,
                                             150 California St., Ste. 250           COMMERCEWEST BANK (P,E)                   6088 Innovation Way                Ste. 160
   BEACH BUSINESS BANK (P,E)                 San Francisco, CA 94111                  2111 Business Center Dr.                Carlsbad, CA 92009                 San Diego, CA 92130
     180 E. Ocean Blvd., Ste. 100            415-217-7600 ext. 104                    Irvine, CA 92612                        760-730-4520                       858-369-3122
     Long Beach, CA 90802                           949-251-6959 ext. 7246        
     562-481-3410                                                                      CAPITAL BANK (P,E)                                                              FIRST NATIONAL BANK OF               NATIONAL BANK OF CALIFORNIA
     866-862-3878                            31351 Rancho Viejo Rd., Ste. 101       COMMONWEALTH BUSINESS                  SOUTHERN CALIFORNIA (P,E)            (P,E)             San Juan Capistrano, CA 92675          BANK (P)                                  1110 San Marino Dr.                  12121 Wilshire Blvd.
                                             949-373-7311                             1001 S. Towne Ave., Ste. 201            San Marcos, CA 92078                 Brentwood, CA 90025
   BORREGO SPRINGS BANK (P,504)                 Los Angeles, CA 90021                   760-481-7265                         323-655-6001 ext. 210
     7777 Alvarado Rd., Ste. 501                                                      213-808-5002                         
     La Mesa, CA 91941                     CDC SMALL BUSINESS FINANCE       
     619-668-5150 ext. 202                 (504,MICRO)                                                                     GATEWAY BUSINESS BANK (P,E)          NAVY FEDERAL CREDIT UNION                       2448 Historic Decatur Rd., Ste. 200    COMMUNITY SOUTH BANK (P)                 18000 Studebaker Rd., Ste. 550     (P,E)
                                             San Diego, CA 92106                      7673 Yule Court                        Cerritos, CA 90703                    9660 Mission Gorge Rd.
   BRIDGE BANK (P)                           619-291-3594                             Arvada, CO 80007                       562-403-6101                          Santee, CA 92071
     525 University Ave., Ste. 31                       303-292-9280                                  619-840-5617
     Palo Alto, CA 94301                               ckaffenberger@communitysouth                                       
     650-462-8522                            619-243-8639 Micro Loans                                 GE REAL ESTATE (504)                                                             (Commercial Real Estate Only)      NEIGHBORHOOD NATIONAL BANK
                                                                                    COMMUNITY VALLEY BANK                    888-335-4372                       (P,E)
   BUSINESS COMMUNITY CAPITAL              CENTER BANK (P,PE)                         300 S. Imperial Ave., Ste. 14                  1717 Sweetwater Rd., Ste. B
   (P)                                       253 N. Western Ave.                      El Centro, CA 92243                                                          National City, CA 91950
      A Division of Fullerton Community      Los Angeles, CA 90004                    760-335-4720                         HAMNI BANK (P)                          619-789-4418
      Bank                                   213-637-9622                                    4637 Convoy St.             
      505 S. Villa Real 101A                                                                  San Diego, CA 92111         
      Anaheim Hills, CA 92807                213-637-9631                           COMMUNITY WEST BANK (P,E,PE)             858-467-4804
      877-774-4722                                    3001 Douglas Blvd., Ste. 230                      ONEWEST BANK, FSB
      714-283-9001 Direct                                                             Roseville, CA 95661                                                         390 W. Valley Pkwy.
      714-813-0142 Cell                                                               916-780-5512 ext. 102                                                       Escondido, CA 92025                                                                                          760-432-5161

Visit us online:                                                                                                                 SAN DIEGO Small Business Resource —       41
  BANK (P,E)                            1498 W. Main St.                    12770 High Bluff Drive, Ste. 180       100 N. Azusa Ave.                       500 La Terraza Blvd., Ste. 200
    4675 MacAuthur Ct., Ste. 100        El Centro, CA 92243                 San Diego, CA 92130                    Covina, CA 91722                        Escondido, CA 92025
    Newport Beach, CA 92660             760-337-3233                        619-794-2830                           626- 214-1762                           760-432-5319
                                      REGENTS BANK                                                               SUN COMMUNITY FEDERAL                    WELLS FARGO BANK - SBA
  PACIFIC ALLIANCE BANK (P)             1921 Palomar Oaks Way, Ste. 100   SILVERGATE BANK (504)                  CREDIT UNION                             LENDING (P,E,504, PE)
    (E – LA only)                       Carlsbad, CA 92008                   4275 Executive Sq., Ste. 800          1068 Broadway                            444 Escondido Blvd., 1st Fl.
    8400 E. Valley Blvd.                760-931-5140                         La Jolla, CA 92037-1492               El Centro, CA 92243                      Escondido, CA 92025-4814
    Rosemead, CA 91770                      858-362-6315                          760-336-8672                             760-432-5319
    3257 E. Guasti Rd., Ste. 110        16776 Bernardo Center Dr.,        SMALL BUSINESS CAPITAL                 SUNRISE BANK (P,E,PE)                    WILSHIRE STATE BANK (P,E)
    Ontario, CA 91761                   Ste. 203                            858-229-7448                           4445 Eastgate Mall, Ste. 110             888-972-5363
    909-937-7273 or                     San Diego, CA 92128                             San Diego, CA 92121
    866-298-4005 Toll Free              858-605-2865                                                               858-625-8860 ext. 103                  ZIONS NATIONAL REAL ESTATE          SOUTHLAND EDC (504)                      120 Birmingham Dr., Ste. 220B
                                                                            9663 Tierra Grande, Ste. 102                                                     Cardiff, CA 92007
  PACIFIC WESTERN BANK (P)            SAEHAN BANK (P,E)                     San Diego, CA 92126                  SUNWEST BANK (P,E,PE)                       760-579-1758
    401 West A St., Ste. 200            550 S. Western Ave.                 858-578-1504 ext. 221                  17542 East 17th St., #200       
    San Diego, CA 92101                 Los Angeles, CA 90020                      Tustin, CA 92780
    760-432-1234                        213-637-4980                                                               714-612-3212                           Venture Capital                 STEARNS BANK, N.A. (P,E,PE,504)          
                                                                            4191 2nd St. S.                                                                  licensees-state
                                      SEACOAST COMMERCE BANK                St. Cloud, MN 56301                  SURF CITY BANK
    9420 Farnham St.
                                      (P,E)                                 800-320-7262                           7755 Center Ave., Ste. 100             CELERITY PARTNERS
    San Diego, CA 92123-1321
                                         700 La Terreza Blvd., Ste.110                 Huntington Beach, CA 92647               11111 Santa Monica Blvd., Ste. 1127
                                         Escondido, CA 92025                                                       714-612-3212                             Los Angeles, CA 90025
                                         760-753-7300                                                                     310-268-1710
                                                                                                                 TMC DEVELOPMENT (504)
                                                                                                                   335 Sherwood St.                       HAMILTON BIOVENTURES
                                                                                                                   Redlands, CA 92373                       990 Highland Dr., #314
                                                                                                                   213-612-7787                             Solana Beach, CA 92075
                                                                                                                 TORREY PINES BANK
                                                                                                                   12220 El Camino Real, Ste. 100         HUNTINGTON CAPITAL
                                                                                                                   San Diego, CA 92103                      4660 La Jolla Village Dr., Ste. 650
                                                                                                                   858-523-4656                             La Jolla, CA 92122
                                                                                                                 U.S. BANK (P,E,PE)
                                                                                                                    9818 Hibert St., Ste. 101             SHEPHERD VENTURES
                                                                                                                    San Diego, CA 92131                     12250 El Camino Real, Ste. 116
                                                                                                                    858-530-9513 or                         San Diego, CA 92130
                                                                                                                    760-604-3613 (cell)                     858-509-4744
                                                                                                                    858-536-3447 or
                                                                                                                    760-271-0676 (cell)                      P - Preferred Lenders
                                                                                                                          E - SBA Express Lenders
                                                                                                                                                             PE – Patriot Express
                                                                                                                 UNION BANK (P,E,504)                        504 - 504 Lender
                                                                                                                   1475 E. Los Angeles Ave.
                                                                                                                   Simi Valley, CA 93065                  Non-SBA Financing
                                                                                                                   805-577-5003                           Option
                                                                                                                                                          ACCION SAN DIEGO
                                                                                                                 UNITI BANK (P)                             404 Euclid Ave., Ste. 271
                                                                                                                   6301 Beach Blvd., Ste. 100               San Diego, CA 92114
                                                                                                                   Buena Park, CA 90621                     619-795-7250
                                                                                                                                                            ACCION is a non-profit
                                                                                                                 VIBRA BANK                                 organization providing small
                                                                                                                    530 Broadway                            business loans between $300 and
                                                                                                                    Chula Vista, CA 91910                   $35,000.

42 — Small Business Resource       SAN DIEGO                                                                                                            Visit us online:
                                              Searching for the
                                           Stars of Small Business
                                           HELp US IdENtIfy tHE StArS                                                                    of

                  National Small Business Week is a time when small business owners and business leaders are
                          recognized for their contributions to the American economy and our society.

                                                       SMALL BUSINESS PERSON AWARDS*
                                                   STATE SMALL BUSINESS PERSON OF THE YEAR
                                                             PHOENIX AWARDS**
                                                  * The National Small Business Person of the Year is selected from the state winners
                                                  ** Presented only at the national level.

                                                 SMALL BUSINESS CHAMPION AWARDS
                                  FINANCIAL SERVICES CHAMPION OF THE YEAR                          VETERAN- OWNED SMALL BUSINESS OF THE YEAR
                                   SBA YOUNG ENTREPRENEUR OF THE YEAR                             SBA FAMILY- OWNED SMALL BUSINESS OF THE YEAR
                                    SMALL BUSINESS EXPORTER OF THE YEAR                            WOMEN- OWNED SMALL BUSINESS OF THE YEAR
                                                                                                  MINORITY- OWNED SMALL BUSINESS OF THE YEAR

                                    2011 SBA Small Business Award Winners
   Small Business Person of the Year         Women-Owned Small Business of               Women in Business Champion of the              Veteran-Owned Small Business of the
   Cindy Erie                                the Year                                    Year                                           Year
    E-World                                   Anita Nichols                               Nancy                                          Kev Kutina
    Recyclers                                  Mom’s Inc.                                 Fredericks                                     Kevcon, Inc.
    Nominator:                                 (Mom’s Pies)                                Sales Link                                    Nominator:
    Joe Molina                                 Nominator:                                  Nominator:                                    Jeni Burgess,
    San Diego                                  Kay Weeks                                   Ken Clark,                                    Wells Fargo Bank
    North Small                                Rabobank, NA                                Southwestern
    Business Development Center                                                            College Small Business Dev. Center &
    MiraCosta College                                                                      Ctr. for International Trade Dev.

   Financial Services Champion of the Year                    Minority Small Business Champion of the Year                  Minority-Owned Small Business of the Year
Gabriel Reyes                                                Bernard Johnson                                              Moninder S. Birdi
  Southwestern College Small                                  The Bernard Johnson Group, Inc.                              Birdi and Associates, Inc.
  Business Development Center &                               Nominator: Ken Clark,                                        Nominator: Terry Johnson
  Center for International Trade                              Southwestern College Small                                   San Diego Airport Authority
  Development                                                 Business Development Center &
  Nominator: Ken Clark,                                       Center for International Trade
  Southwestern College Small                                  Dev.
  Business Dev. Ctr. & Ctr. for
  International Trade Dev.
                                                For information about 2012 nominations contact
                                            Cynthia Harris (619) 727-4884 or

Visit us online:                                                                                                SAN DIEGO Small Business Resource —   43

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