Your Local SBA
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FREQUENTLY ASKED QUESTIONS Q. My friend and I have an idea about starting a business. We do not know what’s involved in getting started and just want to find out what steps we need to take to get the business up and running. At this point, we don’t even know what questions to ask. What would you suggest? A. If you are just tossing around the idea of starting a business, we suggest you attend one of SCORE’s Going into Business workshops. They give a great overview of the key areas that must be addressed in starting a business. Take the time to attend this workshop and not only will it answer some of your questions, but you’ll have a better idea of whether or not to pursue the entrepreneurial dream! Visit SCORE’s website at score-mn.org to learn more about a workshop near you. Q. I’m told that I need to register my business name with the State of Minnesota. Who do I contact to register my business name? A. Business names are registered with the Minnesota Secretary of State, Business Services Division. Whether you are filing a certificate of assumed name, the registration of a corporate name, limited liability partnership or limited liability company name, appropriate forms can be downloaded at Registration Forms. For more information call the Secretary of State Office at 651-296-2803. Q. How do I find out if my business will require a business license? A. The State of Minnesota, Bureau of Business Licenses, has an online directory of Business Licenses listing licenses required. In addition to the licensing requirements imposed by the state, some local governments also require certain kinds of business activity to be licensed on the local level. Contact your city clerk for local license information. The cities of Minneapolis and St. Paul have licensing departments. City of Minneapolis 612-673-2080 City of St. Paul 651-266-9090 Or, The Minnesota Small Business Assistance Office publishes “A Guide to Starting a Business in Minnesota” which includes a directory of business licenses and permits. The State will send this out free of charge. Order the book online at DEED Publications or call their automated voice-mail publication order line at 651-296-3871. Q. How can I get a copy of the “Guide to Starting a Business in Minnesota”? A. Order the guidebook online at DEED Publications or call the Department of Employment and Economic Development automated voice-mail publication order line at 651-296-3871. The State of Minnesota also hosts the BizLinks website. BizLinks offers links to web pages established and maintained by the state agencies, and others that deal with specific business topics. Q. Where do I get a tax identification number with the federal and state government? A. For a tax identification number with the State of Minnesota, download Form ABR at the Department of Revenue website. To order Form ABR via telephone, call 651-296-4444 and use their automated voice system. If you already have a tax identification number and have had business changes, notify the State of Minnesota by calling 651-282-5225. The Federal Employer Identification Number (EIN) can be obtained at the Internal Revenue Service website or call 1-866-816-2065. Q. I need to find out about SBA’s loan program. Do I go directly to SBA? A. Not necessarily. SBA provides its loan guaranty to the lending institution. It is recommended that you meet with a potential lender first, and once the lender agrees to become involved, it is the lender that submits a completed loan application to SBA. Keep in mind, that it is the financial institution’s decision to apply for the SBA loan guaranty. If the bank is willing to lend to you without SBA involvement, there is no reason for SBA to become involved. You can review our lending programs at the SBA home page. Before you approach the bank it is important that you do your homework first. Lending institutions expect a completed business plan when you apply for the loan. The business plan consists of information about the business, its history, a market analysis and strategy, management and financial disclosures. Don’t let this scare you off; there are several programs to help you complete the business plan. See question: Is there anywhere I can go to get help writing a business plan? Q. Is there anywhere I can go to get help writing a business plan? A. A business plan precisely defines your business, identifies your goals and serves as your firm's resume. Its basic components include a current and pro forma balance sheet, an income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals. We have an area devoted to helping you with your business plan. The primary resource for assistance in developing your business plan in the metropolitan area is the Business Planning Center (BPC). The BPC offers a wide range of tools to assist business owners with business planning, market research and training. Computers are available on a first come, first served basis. Business plan software is available for your use at the BPC. Q. I need to talk with someone about getting a loan. Who can help me? A. SBA has a number of resource partners that will counsel you on a one-on-one basis. Most are available at no cost to individuals. Read about the different programs and their locations at Counseling and Training. You should find the right resource for you at this location. A number of Loan Information Seminars are conducted by The SCORE Association throughout the state. All sessions are listed in our Calendar of Events site. In St. Paul, the Loan Information Seminars are held every Thursday (excluding government holidays and weather emergency days) from 12:30 p.m. to 2:00 p.m. at the Business Information Center, 2324 University Avenue, Midtown Commons Building, Suite 112, St. Paul. There is no registration and there is no need to pre-register. Q. I’ve heard SBA has a grant program for people that want to start a small business, but I can’t find any information about the grants. Where do I look? A. SBA does not offer grants to start or expand small businesses. SBA's grant programs generally support non-profit organizations, intermediary lending institutions, and state and local governments in an effort to expand and enhance small business technical and financial assistance. The Agency's small business financial assistance programs are comprised of a wide range of loan programs, each targeted at different markets. For more information on any non-profit organization grant programs go to Grant Information. Q. We want to sell our products or services to the state or federal government. Who can help me achieve this goal? A. In Minnesota your first contact should be with MEDA PTAC. MEDA's Procurement Technical Assistance Center (PTAC) provides no-cost to low-cost counseling and procurement technical assistance and training to Minnesota businesses regarding government contracting. The PTAC assists businesses by: · discovering government contracting opportunities; · interpreting specifications and standards; and, · counseling on solicitations prior to submission and post-award compliance issues. Their website is: meda.net . Click on “Selling to the Government”, or call 612-332-6332. Be sure to register your business name online at the Central Contractor Registration. The CCR Contains the marketing information formerly in SBA's PRO-Net database. Federal agencies search the CCR/PRO-Net database to find small businesses like yours that can provide the products and services the agencies need. Registering your business in CCR is free. It is also free to federal and state government agencies as well as prime and other contractors seeking small business contractors, subcontractors and/or partnership opportunities. CCR is open to all small firms seeking federal, state and private contracts. A. There are numerous resource partners available to help small businesses gain the knowledge in order to export their products. Those resources are : SBA representative located in the U.S. Export Assistance Center (USEAC) (612)348-1642, The Minnesota Trade Office (651)297-3920, the Department of Commerce-Commercial Service (612)348-1638 and SCORE. Q. Where can I obtain information about importing? A. A good resource for information regarding importing your products or services is the Midwest Global Trade Association (MGTA) (651)917-6257 and U.S. Customs and Border Protection (612)348-1690. Q. My business has a purchase order from an overseas buyer but I don't have the money to make my product to ship. Where can I get money? A. The SBA has specific loan programs pertaining to exporting. These programs can be used in many ways in order to export your product or service. Contact an SBA representative at: (612)348-1642. Q. I am currently exporting my product but need information about tariffs and taxing. Who can I talk to? A. The Department of Commerce-Commercial Service can help any business with questions about costs involved in exporting. An International Trade Representative can be reached at (612)348-1638 or visit online at Export Assistance and Exporter Information. Q. This FAQ page has been very helpful. Are there any other FAQ pages on the Internet you could refer me to? A. Absolutely! Here are a couple of FAQ lists for you: Compiled FAQ’s from Several Federal Agencies. Most Frequently Asked Startup Questions. | ||