U. S. Small Business Administration: Helping small businesses start, grow and succeed. Your Small Business Resource Cleveland District Office News: July 2011 Issue 1350 Euclid Avenue Suite 211 Cleveland, Ohio 44115 Phone: 216-522-4180 Fax: 216-522-2038 TDD: 1-800-750-0750 www.sba.gov IN THIS ISSUE: 1.Loan Report 2.Moneywise Empowerment Tour Comes to SBA Cleveland District 3.2010 SBA Procurement Data Shows Significant Progress 4.SBA Patriot Express Loan Top $633 Million 5.SBA Online Tool Helps Small Businesses Develop Export Business Plan 5.New Regional Advocate Appointed LOAN REPORT AS OF JUNE 30,2011 7(a) and 504 Loans Combined Bank, Number, Amount (in thousands) Huntington National Bank 504 $78,855 KeyBank 83 $27,097 JPMorgan Chase Bank 71 $14,685 Charter One Bank/RBS Citizens 47 $4,611 FirstMerit Bank 43 $14,749 504 Loans 504 Approvals, Bank, Number of Approvals FirstMerit Bank 18 Huntington National Bank 16 JPMorgan Chase Bank 10 KeyBank 8 Westfield Bank 4 504 Loans: CDC Number, Amount (in thousands) Growth Capital Corp. 28 $16,469 Cascade Capital Corp. 15 $6,591 Lake County SBAC 15 $5,114 Mahoning Valley Economic Dev. Corp. 11 $3,729 Stark Development Board 5 $3,261 West Central Partnership 3 $3,080 Mentor Economic Assistance Corp. 2 $877 SEM Resource, Inc. 2 $978 Ohio Statewide 1 $369 2011 MONEYWISE EMPOWERMENT TOUR STOPS IN THE SBA CLEVELAND DISTRICT The SBA is a co-sponsor of the nation-wide 2011 Moneywise Empowerment Tour. The tour, which is the outreach program for the Moneywise with Kelvin Boston public television series, came to Cleveland on June 18. The event was held at Mount Haven Missionary Baptist Church, where over two-hundred people attended. The Tour is designed to bring minority households disproportionately impacted by the recession strategies for protecting their homes, communities, and financial resources. Kelvin Boston, host of Moneywise TV, was the keynote presenter. Gil Goldberg, SBA Cleveland District Director, highlighted SBA programs and services and access to capital. In addition, he moderated the Starting a Small Business panel discussion. Topics covered included starting and growing a business, financial planning, investing, and retirement options.  SBA officials served on the panel, answered questions and provided resources. There was a terrific turnout. Panelists also provided information at the exhibition. 2010 SBA PROCUREMENT DATA SHOWS SIGNIFICANT PROGRESS TOWARD 23 PERCENT FEDERAL CONTRACTING GOAL The federal government awarded nearly $100 billion in federal contracts to small businesses in Fiscal Year (FY) 2010, showing an increase in federal prime contract dollars to small businesses for the second straight year after four years of decline. The U.S. Small Business Administration announced that in FY 2010 (Oct. 1, 2009 – Sept. 30, 2010), small businesses won a record $97.95 billion in federal contracts, or 22.7 percent of eligible contracting dollars. This marks the largest single year increase in more than five years, and is a significant improvement over FY 2009, when 21.9 percent of contracting dollars were awarded to small businesses. Performance in four out of five of the small business prime contracting categories showed marked improvement, with increases in contract dollars and also in performance against statutory goals. Over the past year, SBA has increased its efforts and collaboration with federal agencies to provide increased opportunities for small businesses to compete for and win federal contracts. “Additionally, the SBA released the FY 2010 Small Business Procurement Scorecards, which provides an assessment of each agency’s yearly small business contracting achievement againstits goal with a grade A through F. Ten agencies’ grades increased from FY 2009, 10 agencies’ grades stayed the same and four agencies’ grades decreased. The agency breakdown is as follows: 13 agencies received an “A” 5 agencies received a “B” 4 agencies received a “C” 2 agencies received a “D” The federal government received a “B” on the government-wide Scorecard, just less than one point short of an “A”. This grade reflects significant efforts by federal agencies toward meeting the 23 percent statutory goal, but indicates the need for continued improvement. The FY 2010 Goaling Report and Scorecards also reflect efforts to strengthen the integrity of the contracting data and more thoroughly address errors. While each federal agency is responsible for ensuring the quality of its own contracting data, SBA conducts additional analyses to help agencies identify potential data anomalies. As part of its ongoing data quality efforts, the SBA is working with federal agency procurement staff to provide tools to facilitate review of data, implement improvements to procurement systems and conduct training to improve accuracy. Over the past year, SBA has been focused on a number of initiatives to help the government meet the 23 percent goal, ensure the accuracy of data and prevent waste, fraud or abuse, including: Implementation of the Small Business Jobs Act of 2010 – The Act included 19 provisions related to increasing opportunities for small business contracting and minimizing fraud, waste or abuse in the programs. One of the key provisions is related to work force training to ensure that the procurement work force receives adequate training on small business programs. Interagency Task Force on Federal Contracting Opportunities for Small Businesses – The President established a Task Force to identify recommendations to increase opportunities for small businesses to compete for and win federal contracts. The Task Force developed 13 recommendations, which SBA is in the process of implementing. Collaboration with White House and Senior Agency officials – SBA is collaborating with the White House to ensure senior officials at each agency are aware of their role in meeting the government-wide small business contracting goalWomen-Owned Small Business Federal Contract Program – This new program will allow contracting officers to set-aside contracts for women-owned small businesses for the first time in fiscal year 2011. Revised 8(a) Business Development Regulations – SBA recently published new regulations for this program for the first time in over a decade. These revisions will help ensure the benefits of the 8(a) program go to the intended recipients. SBA is in the process of implementing these revisions. Small Businesses Goal 23% 2010 22.66% 2010 $97.95 billion 2009 21.89% 2009 $96.83 billion Women Owned Small Businesses Goal 5% 2010 4.04% 2010 $17.46 billion 2009 3.68% 2009 $16.29 billion Small Disadvantaged Businesses Goal 5% 2009 7.95% 2009 $34.39 billion 2010 7.57% 2010 $33.48billion Service-Disabled Veteran Owned Small Businesses Goal 3% 2009 2.50% 2009 $10.79 billion 2010 1.98% 2010 $8.78 billion HUBZone Goal 3% 2009 2.77% 2009 $11.97 billion 2010 2.81% 2010 $12.41 billion About the Scorecard The annual Scorecard is an assessment tool to (1) measure how well federal agencies reach their small business and socio-economic prime contracting and subcontracting goals, (2) provide accurate and transparent contracting data and (3) report agency-specific progress. The prime and subcontracting component goals include goals for small businesses, small businesses owned by women, small disadvantaged businesses, service-disabled veteran-owned small businesses, and small businesses located in Historically Underutilized Business Zones (HUBZones). Every two years, the SBA works with each agency to set their prime and subcontracting goals and their grades are based on the agreed upon goals. Each federal agency has a different small business contracting goal, determined annually in consultation with SBA. SBA ensures that the sum total of all of the goals exceeds the 23 percent target established by law. Each agency’s overall grade will show an A+ for agencies that meet or exceed 120 percent of their goals, an A for those between 100 percent and 119 percent, a B for 90 to 99 percent, a C for 80 to 89 percent, a D for 70 to 79 percent and an F for less than 70 percent. An agency’s overall grade was comprised of three quantitative measures: prime contracts (80 percent), subcontracts (10 percent) and its progress plan for meeting goals (10 percent).  The individual agency scorecards released today by SBA, as well as a detailed explanation of the scorecard methodology, is available online: http://www.sba.gov/content/small-business-procurement-goaling-scorecards. SBA PATRIOT EXPRESS LOANS TOP $633 MILLION In just four years the U.S. Small Business Administration’s Patriot Express Pilot Loan Guarantee Initiative has provided more than $633 million in SBA-guaranteed loans to 7,650 veterans to start or expand their small businesses. Patriot Express, a pilot loan product, with streamlined paperwork, and based on the agency’s SBA Express program, offers an enhanced guaranty and interest rate on loans to small businesses owned by veterans, reservists and their spouses. Patriot Express was launched June 28, 2007, to expand upon the more than $1 billion in loans SBA guarantees annually for veteran-owned businesses across all its loan programs. SBA also offers counseling assistance and procurement support each year to more than 200,000 veterans, service-disabled veterans, reservists and members of the National Guard and their spouses. Patriot Express loans are offered by SBA’s network of participating lenders nationwide and feature one of SBA’s fastest turnaround times for loan approvals. Patriot Express loans are available for up to $500,000. The Patriot Express loan can be used for most business purposes, including start-up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases. Local SBA district offices can provide lists of Patriot Express lenders in their areas. Details on the initiative can be found at www.sba.gov/patriotexpress. To learn more about additional opportunities for veterans available through the SBA, please visit the website at www.sba.gov/vets.s FREE ONLINE TOOL FROM SBA HELPS SMALL BUSINESS DEVELOP AN EXPORT BUSINESS PLAN Small businesses interested in starting or expanding sales of their goods and services overseas have access to a new, free online tool that will gauge their readiness to export and help them develop an export business plan. The Export Business Planner, developed by the U.S. Small Business Administration, offers a ready-made, customizable and easily accessible document that can be updated and referenced continuously as the business grows. The Planner, located at www.sba.gov/exportbusinessplanner, allows users to: Determine their export readiness Learn about training and counseling opportunities Complete worksheets for global market research Obtain financing information and options Customize export marketing plans, and Access resources or exporters The Planner is a PDF file that can be easily downloaded, accessed, customized, and updated every time you use it. It features an extensive compilation of export research and information,including quick links to websites, video profiles, training podcasts, trade statistics, contact information to counseling resources such as SCORE and SBDCs, a list of current SBA lenders and much more. The tool is organized in comprehensive chapters that are cross-linked and indexed for efficiency and easy access to related topics. The chapters include: Introduction to Exporting Training and Counseling Getting Started: Creating an Export Business Plan Developing your Marketing plan Financing your Export Venture Accounting Worksheets: Costing, Financial Forecasting and Product Pricing Utilizing Technology for successful Exporting Your New Marketing Plan: Summary, Timeline Updates, Transportation and Documentation A special, very useful feature of the Planner is the customizable worksheets, which provide templates for developing your export business plan, conducting business assessments and foreign market research, creating your marketing plan, costing and sale projections, goal setting and much more. SBA AND THE AMERICAN RED CROSS JOIN TO HELP INDIVIDUALS AND BUSINESS PREPARE FOR DISASTER The U.S. Small Business Administration and the American Red Cross have joined forces to intensify outreach efforts to educate the public about the importance of having a disaster recovery plan in place. “Given the recent devastation caused by tornadoes and flooding in communities from New England and the Midwest to the Southern states, and the start of the Atlantic Hurricane season, we recognize the importance of helping people learn how to protect themselves,” said SBA Administrator Karen Mills. “This collaboration with the Red Cross will allow us to draw on each other’s resources to make emergency preparedness a way of life for individuals and businesses.” “Studies show that between 15 percent to 40 percent of businesses fail following a natural or man-made disaster,” said Gail McGovern, president and CEO of the American Red Cross. “By partnering with the SBA to get more families and businesses prepared for emergencies, we hope to save both lives and livelihoods.” The core of the SBA-Red Cross agreement is a plan to work with SBA District Offices and its resource partners such as SCORE, the Small Business Development Centers and the Women’s Business Development Centers to promote and, along with local Red Cross chapters, sponsor preparedness training workshops. The two agencies will also work to increase awareness in the business community about the Red Cross Ready Rating™ program. Ready Rating (www.readyrating.org)™ is a free, self-paced, web-based membership program that helps a business measure its ability to deal with emergencies, and gives customized feedback on how to improve those efforts. Materials on the Ready Rating program and other disaster preparedness tips will be disseminated to the public virtually, and via printed materials. Recent disasters have served as a reminder for individuals and businesses to make a plan. Disaster preparedness for homes and businesses should include a review of your property insurance to make sure you understand what is and isn’t covered. Make backup copies of important documents, and store them at an offsite location. Put together an emergency kit, which contains first-aid supplies, cash, bottled water, non-perishable food, a flashlight and plastic garbage bags. For more preparedness tips for homes and businesses, visit www.sba.gov/disasterassistance.