by Kirby Lindsay Laney, posted 29 January 2016
The Fremont Chamber of Commerce had, at its January General Meeting, Calvin Goings, Administrator for Region X of the Small Business Administration (S.B.A.) At the new Staybridge Suites, on Aurora, Goings gave an overview on what the S.B.A. can do to assist anyone to start, grow, and succeed with their small business.
Since 1953, this independent agency of the federal government has assisted with one of America’s greatest assets. More than half of working Americans work for small businesses, and 65% of net new jobs come from them. Goings also acknowledged that small businesses drive innovation, and create identities for many of our neighborhoods – our unique collection of small shops and restaurants make Fremont what it is.
Goings gave a glimpse at the basics of how the SBA can help, using what he called ‘The 3 Cs’:
The SBA helps with loans, and getting real life money to real life businesses. Through its guaranteed loan program (debt financing,) the SBA sets guidelines (and guarantees) on loans made by its partners (banks, other lenders, community development organizations, and micro-lending institutions.) The SBA Surety Bond Guarantee program helps contractors who cannot obtain bonds through regular commercial channels. The SBA also, often most surprisingly, has a public-private investment partnership, called the SBIC, which relies on the expertise of qualified private investment funds, and supplements their capital with access to low-cost, government-guaranteed debt. The SBA has also begun the Certified Development Company/504 loan program to provide long-term, fixed-rate financing for major fixed assets (land, buildings, heavy equipment, and machinery.)
HomeStreet Bank announced at this Chamber meeting that they will now be paying the loan fees on guaranteed SBA loans to veteran (and veteran-spouse) owned businesses. Currently, the SBA waives half of the loan fees for Veteran Advantage program borrowers, and HomeStreet will pay the other half. “Helping veterans and their families is a meaningful way for us – as a bank – to give back to those who have served,” Mark Mason, HomeStreet President and CEO, is quoted, “As a community bank, one of the principle philosophies of our business is taking care of our communities, and this SBA fee assistance program underscores that commitment. It’s simply the right thing to do.” Learn more about this program by contacting Ruth Ann Halford, the HomeStreet SBA Relationship Officer, at 206/753-0069 or Ruthann.halford@homestreet.com
The largest purchaser in the world, Goings said, the Federal Government is, by law, required to purchase 23% of its products and services from small businesses. Any business that is qualified to bid must be considered, on a level playing field with full visibility. This represents a tremendous sales and revenue opportunity for small businesses.
The Cluster Initiative harnesses public-private partnerships in geographic concentrations of interconnected companies. According to Goings, this initiative can help small businesses get contracts and build partnerships with larger ones – for example, the Cluster Initiative has helped small parts manufacturers sell to Boeing.
The SBA has a network of partners, and training programs, to get information and advice to small business owners. The SCORE program matches experienced, and sometimes retired, business owners as one-on-one mentors to small business owners, providing expertise and counsel. The SBA can provide assistance with navigating the Affordable Care Act, and/or creating a business plan, through a long list of classes, on-line and at over 50 learning centers nationwide.
Building America’s Future Through Small Business
Small businesses are critical to our country’s economic strength. They also make up the majority of businesses located in Fremont, particularly on Market Sundays. Yet, beyond the neighborhood, small businesses also help the United States compete in the world’s global marketplace – as Goings pointed out, 96% of the world’s population lives outside our country and small businesses, with their flexible, innovative approaches to products and services, can provide exports that the world wants to see.
Best of all, the SBA provides nearly all of its counseling, and most of its services, for free, to help Americans start, build and grow small businesses. This assistance can benefit new and long-established small businesses. Find out today about this government resource and how it could provide aid, counsel, assistance and protection to your business. Visit SBA.gov
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©2016 Kirby Laney. This column is protected by intellectual property laws, including U.S. copyright laws. Reproduction, adaptation or distribution without permission is prohibited.