The American Recovery and Reinvestment Act

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(No Transcript)
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The American Recovery and Reinvestment Act
SBAs Programs Services
Janita R. Stewart District Director
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Thank You!

• Greater Jackson Chamber Partnership
• Mississippi Manufacturers Association
• Adams and Reese LLP

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SBAs Mission Purpose

• Aid
• Counsel
• Assist
• Protect the interests of small business concerns
• Support
• Champion Small Businesses
• Simply Put..SBA helps people get into business,
  grow and prosper.

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Critical Mission

• Disaster Recovery-SBA serves as the federal
  disaster bank in times of federally-declared
  natural disasters.

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Programs of Assistance

• Financial Assistance Programs
• Non-Financial Assistance

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ATTENTION!!

• SBA DOES NOT offer grants to start or expand
  small businesses, although SBA does offer a wide
  variety of loan programs for these purposes.

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Financial Assistance Programs

• 7(a) Loan Program
• SBAExpress
• Caplines
• GO Loans
• Community Express
• Export Working Capital Program (EWCP)
• 504 Loans

• Small Business Investment Company (SBIC) Program
• Microloan Program
• Disaster Assistance Program
• International Trade Loans

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Non-Financial Assistance Programs

• Government Contracting Assistance(430 Billion)
• Prime Contracts
• Certificate of Competency (COC)
• Size Determination
• Public laws 108-183 106-50
• Surety Bond Program
• Small Business Innovation (SBIR)
• Hubzone Empowerment Contracting

• Womens Business Centers
• Small Business Development Centers
• Service Corps of Retired Executives (SCORE)
• Section 8(a) Business Development Program
• Section 7(j) Management and Technical Assistance

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Small Business

• Organized for profit
• Independently owned and operated
• Meets NAICS industry small business size
  standards
• Wholesales - 100 employees
• Manufactures - 1500 employees
• Retail Trade - 7m- 35.5m
• Construction - 7m- 33.5
• Services - 7m-35.5m

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SBAs Economic Recovery Efforts

• SBA received 730m to help unlock small business
  lending markets
• Elimination of Loan fees (thru 12/31/09)
• (max of 53,750 saved)
• Increased 7(a) loan guaranty up to 90 (thru
  12/31/09)
• More than doubled Surety Bond Guarantee-from 2m
  to 5m
• Expanded eligibility to 70,000 more small
  businesses

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In Coming Weeks, SBA will Announce

• Expanded Microloans
• 504 Debt Refi
• 504 First Mortgage Secondary Market Guarantee
• Dealer Floor Plan (DEP) Financing

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SBAs Economic Recovery Impact as of June 2009

• Loan Volume Has Increased More than 30 Percent
  As of May 29, SBA approved 3.1billion in
  Recovery loans, and supported nearly 4.3 billion
  in lending to small businesses. Since the signing
  of ARRA, weekly loan dollar volume has risen more
  than 30 percent in the 7(a) and 504 programs,
  compared to the weekly average before passage.
• More Lenders Making Loans From Feb. 17 to May
  29, 484 lenders that had not made a loan since
  Oct. 2008 made 7(a) loans. Of those, 219 had not
  made a loan since at least 2007
• Broad Support to Small Businesses A significant
  share of loans supported by Recovery Act funding
  has gone to rural (25), minority-owned (21),
  women-owned (19), and veteran-owned (9)
  businesses
• Secondary Markets Uptick with 7(a) Loans
  Secondary market activity with 7(a) loans has
  shown signs of improvement, providing lenders
  with additional liquidity to increase small
  business lending. Monthly averages of 330
  million.

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ARC Loan Training Mississippi Lenders

• Bank First Financial Services
• Bank Plus
• BNA Bank
• Charter Bank
• Community Bank
• First Financial
• First Southern Bank
• First State
• First State Bank
• Hancock
• Heritage Banking Group

• MF Bank
• MS National Bankers Bank
• Peoples Bank
• Planters Bank
• Priority One Bank
• Regions Bank
• Renasant Bank
• Richard Bank Trust
• State Bank and Trust
• The Peoples Bank- Biloxi
• Trustmark

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THE LATEST----------ARC LOAN(AMERICAS RECOVERY
CAPITAL)

• Effective June 15, 2009, SBA lenders began
  accepting ARC loan applications. ARC loans are
  designed to provide a bridge for existing,
  viable, for-profit small businesses with an
  immediate financial hardship to keep their
  doors open until they get back on track.

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ARC Loan Key Features

• Up to 35,000
• 100 SBA Guaranteed
• No Fees
• Interest-free to Small Business Borrower
• Repayment-deferred for 12 months after final loan
  disbursement
• Small Business Borrower to repay loan principal
  over 5 years

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ARC Loan Eligible Use of Proceeds

• ARC loans will be disbursed over a 6-month period
  to be used for payments of principal and interest
  for existing, qualifying small business debt for
• Mortgages
• Term and revolving LOCs
• Capital leases
• Credit card obligations
• Notes Payable to vendors, suppliers, utilities
• Other eligible debt

Temporary loan program, expected to last until
September 30, 2010, or until funds are exhausted.
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Recovery Act Federal Government Contracting
Opportunities

• ARRA allots billions of dollars for upgrades to
  federal facilities and other projects that
  directly affect government operations
• DOD 7.1 billion (energy efficiency projects
  construction of medical facilities for service
  members and their families improve base housing
  for troops, etc.)
• Army, Corps of Engineers - 4.6 billion
  (environmental restoration, flood protection,
  navigation infrastructure improvements, etc.)
• USDA - 1.22 billion (Forest Service projects
  including road, bridge, trail and facilities
  maintenance wildfire management etc.)
• Energy - 2 billion (research and improvements to
  labs and facilities)
• GSA 5.7 billion (repairs and renovations to
  make federal bldgs more energy efficient
  construction of GSA and Customs and Border
  Protection land ports of entry to the U.S. etc.)
• Above listing is not all-inclusive.

www.recovery.gov
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Loan ApprovalsSBA Agencywide(7(a) 504 Loans)

• Economic
• Impact

FY 2009 As of 6/19/2009
Amount
Total Loans
31,266
7.9 billion
ARC Loans
2.4million
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42 Lenders in 21 states
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Loan ApprovalsSBA Mississippi (7(a) 504 Loans)

• Economic
• Impact

FY 2009 As of 6/19/2009
Amount (000)
FY 2008 6/20/2008
Amount
92.2 million
357
428
82.3 million
Total Loans
NOTE 20 increase in loan numbers and
11decrease in s (was 25 Decrease in s prior
to Recovery Act.
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• MISSISSIPPI (as of WE 6/19/09)
• Recovery Act Loans Approved
• 90 Gty 200 loans for 32.2m
• ARC 3 loans for 103.3k

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Small Business in Mississippi

• The latest U.S. Departments of Commerce and Labor
  Economic Census data report that there are

• 221,501 small businesses, 97 or 46,437 of them
  are small employers.
• 175,064 self employed person
• 47,102 women-owned businesses, including
  part-time firms, generated 6.7B in sales

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What do these companies have in commonwith
millions of other businesses?
Belks
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They have all been helped by theU.S. Small
Business Administration!
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Mississippi District OfficeAmSouth Bank
Plaza210 E. Capitol Street, Suite 900Jackson,
Mississippi 39201Telephone [phone]Fax
[phone] Gulfport Branch OfficeHancock
Bank Plaza 2510 14th Street Suite 103 Gulfport,
Mississippi 39501 Telephone [phone] Fax
[phone]
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Visit our SBA Mississippi Web Site
http//www.sba.gov/ms for news and upcoming
events Phones ringing doors swinging!
Mississippi District Office - (601)
965-4378 Gulfport Branch Office [phone]
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SBA-Mississippi District Office
Supporting the Formation, Growth, Prosperity,
and Viability of Mississippis small businesses.
SBA -- Your Small Business Resource
Thank You!