SBA Readies Small Business Program For Women

SBA finalizes contracting program for women

The U.S. Small Business Administration has announced it will begin implementation of its women-owned small business (WOSB) contracting program.

The rule is part of the Obama Administration’s overall commitment to expanding opportunities for small businesses to compete for federal contracts, in particular those owned by women, socially and economically disadvantaged persons and veterans. This rule identifies 83 industries in which WOSBs are under-represented or substantially under-represented in the federal contract marketplace.

In addition to opening up more opportunities for WOSBs, the rule is also another tool to help achieve the statutory goal that 5 percent of federal contracting dollars go to women-owned small businesses.

“Women-owned businesses are one of the fastest growing sectors of our nation’s economy, and even during the economic downturn of the last few years, have been one of the key job creation engines in communities across the country,” SBA Administrator Karen Mills said.

“Federal contracts provide critical opportunities for owners of small firms to take their business to the next level and create good-paying jobs,” Mills added. “Despite their growth and the fact that women lead some of the strongest and most innovative companies, women-owned firms continue to be under-represented in the federal contracting marketplace. This rule will be a platform for changing that by providing greater opportunities for women-owned small businesses to compete for and win federal contracts.”

The agency expects the program to be available for WOSBs in early 2011.

SBA Offering Low Interest 504 Loans

504 loans dip below 5%

The Small Business Administration’s (SBA) 504 loan program is providing long-term, fixed financing for the purchase of commercial real estate at one of its lowest interest rates in history.

The SBA’s lending partners, Certified Development Companies (CDCs) are working with small business borrowers who are taking advantage of this current low interest rate to purchase or build new facilities.

NADCO, the trade association for the nation’s Certified Development Companies (CDCs), reports that the interest rate for a 20-year SBA 504 loan continued to fall to a low of 4.93% this month. The August bond sale to investors that funded SBA loans was sold at a rate of 3.52%. This low sale price resulted in an effective interest rate – including fees – of only 4.93% for borrowers this month. This interest rate is one of the lowest since the program began in 1986.

The SBA’s 504 loan program provides long-term, fixed rate financing for commercial real estate, and has funded nearly $60 billion in loans to growing small businesses over the past 24 years.

Not only are the interest rates low right now, but one best aspects of an SBA 504 loan is the low down payment required by a borrower.  The down payment is typically only 10%.   CDCs across the country are helping small business borrowers who are taking advantage of these record low interest rates to purchase, build or expand their own facilities.

” A commercial loan below 5% is an incredible rate for 20-year, fixed-rate money,” said Jean Wojtowicz.

“When you consider the drop in the price of commercial real estate and the inventory currently on the market, small businesses have a real opportunity to expand or buy their first building right now.”

New Website Aims To Prepare Businesses For Emergencies

Website offers tips on prepping for a disaster

With the start of the Atlantic hurricane season, the U.S. Small Business Administration and Agility Recovery Solutions are a launching a new website to help small businesses to develop an emergency preparedness plan.

“Regardless of where you live, it’s a good idea to be ready for any kind of crisis,” said SBA Administrator Karen Mills.

“Every threat, from wind storms, floods, wildfires and earthquakes, to power outages and computer system failures, reminds us to be proactive when it comes to building strategies to survive a disaster and recover quickly. Recent disaster events demonstrate the need for preparedness to reduce the risk to life and property.”

In an effort to encourage businesses to plan ahead, the SBA has teamed with Agility Recovery Solutions, a firm that has provided business continuity and disaster recovery tools to small companies for 21 years. Today the SBA and Agility launched the Prepare My Business (www.preparemybusiness.org) Web site. Prepare My Business provides tips on how small business owners can develop their own disaster preparedness plans, and features interactive tools such as monthly webinars on business continuity planning.

“It is critical that small businesses have a written disaster preparedness plan in place so that they are ready to deal with the challenges that often come without notice, and get their businesses back up and running” said Administrator Mills.

The SBA says disaster preparedness for homes and businesses should include:

*A written emergency response plan. Find evacuation routes from your home or business and establish meeting places. Make sure everyone understands the plan beforehand. Keep emergency phone numbers handy. Business owners should designate a contact person to communicate with other employees, customers and vendors. Ask an out-of-state friend or family member to be your “post-disaster” point of contact, a person to call to provide information on your safety and whereabouts.

*Adequate insurance. Disaster preparedness begins with having adequate insurance coverage, at least enough to rebuild your home or business. Homeowners and business owners should review their policies to see what is not covered. Businesses should consider “business interruption insurance,” which helps cover operating costs during the post-disaster shutdown period. Flood insurance is essential. To find out more about the National Flood Insurance Program, visit the Web site at www.floodsmart.gov.

*Making copies of important records. It’s a good idea to back up vital records and information saved on computer hard drives, and store those items at a distant offsite location. Computer data should be backed up routinely. Copies of important documents should be kept in fire-proof safe deposit boxes.

*A “Disaster Survival Kit.” The kit should include a flashlight, a portable radio, extra batteries, a first-aid kit, non-perishable packaged and canned food, bottled water, a basic tool kit, plastic bags, cash, and a disposable camera to take pictures of the property damage.

New Website Aims To Prepare Businesses For Emergencies

Website offers tips on prepping for a disaster

With the start of the Atlantic hurricane season, the U.S. Small Business Administration and Agility Recovery Solutions are a launching a new website to help small businesses to develop an emergency preparedness plan.

“Regardless of where you live, it’s a good idea to be ready for any kind of crisis,” said SBA Administrator Karen Mills.

“Every threat, from wind storms, floods, wildfires and earthquakes, to power outages and computer system failures, reminds us to be proactive when it comes to building strategies to survive a disaster and recover quickly. Recent disaster events demonstrate the need for preparedness to reduce the risk to life and property.”

In an effort to encourage businesses to plan ahead, the SBA has teamed with Agility Recovery Solutions, a firm that has provided business continuity and disaster recovery tools to small companies for 21 years. Today the SBA and Agility launched the Prepare My Business (www.preparemybusiness.org) Web site. Prepare My Business provides tips on how small business owners can develop their own disaster preparedness plans, and features interactive tools such as monthly webinars on business continuity planning.

“It is critical that small businesses have a written disaster preparedness plan in place so that they are ready to deal with the challenges that often come without notice, and get their businesses back up and running” said Administrator Mills.

The SBA says disaster preparedness for homes and businesses should include:

*A written emergency response plan. Find evacuation routes from your home or business and establish meeting places. Make sure everyone understands the plan beforehand. Keep emergency phone numbers handy. Business owners should designate a contact person to communicate with other employees, customers and vendors. Ask an out-of-state friend or family member to be your “post-disaster” point of contact, a person to call to provide information on your safety and whereabouts.

*Adequate insurance. Disaster preparedness begins with having adequate insurance coverage, at least enough to rebuild your home or business. Homeowners and business owners should review their policies to see what is not covered. Businesses should consider “business interruption insurance,” which helps cover operating costs during the post-disaster shutdown period. Flood insurance is essential. To find out more about the National Flood Insurance Program, visit the Web site at www.floodsmart.gov.

*Making copies of important records. It’s a good idea to back up vital records and information saved on computer hard drives, and store those items at a distant offsite location. Computer data should be backed up routinely. Copies of important documents should be kept in fire-proof safe deposit boxes.

*A “Disaster Survival Kit.” The kit should include a flashlight, a portable radio, extra batteries, a first-aid kit, non-perishable packaged and canned food, bottled water, a basic tool kit, plastic bags, cash, and a disposable camera to take pictures of the property damage.