Annual Conference, April 23-24, 2014

SBA Federal ResourcesPat Brown-DixonU.S. Small Business Administration, Region VII@SBAgov

SBA Overview

U.S. SourceLink Conference, April 24, 2014

Counseling: SBA Field Network

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Ten regions, 68 district offices, and hundreds of resource partners

Overview

Strategic Goals

SBA by the Numbers

Budget Overview

SBA Programs: 3 C’s and a D

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SBA’s Strategic Goals

1 Growing businesses and creating jobs

2 Building an SBA that meets needs of today’s and tomorrow’s small businesses

3 Serving as the voice of small businesses

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Overview

Strategic Goals

SBA by the Numbers

Budget Overview

SBA Programs: 3 C’s and a D

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SBA Employees by Department

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OFO OCA GCBD OCOO OGC OCFO OII OED OIT OCPL OA Other small offices

0

100

200

300

400

500

600

700

800

900 847

428

191158 141

102 8350 38 30 15

56

xSBA has 2,139 employees – more than half are in Field Operations or Capital Access

Full

Tim

e Em

ploy

ees

(FTE

s)

Note: Employee counts are as of January 2014

Contents

Strategic Goals

SBA by the Numbers

Budget Overview

SBA Programs: 3 C’s and a D

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SBA Budget Overview

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SBA’s budget authority for the past ten fiscal years

FY05actual

FY06actual

FY07actual

FY08actual

FY09actual

FY10actual

FY11actual

FY12actual

FY13 (w/ sequester)

FY14enacted

0

200

400

600

800

1,000

1,200

620547 572

928

615

824730

919991

929

SBA

budg

et ($

M)

Contents

Strategic Goals

SBA by the Numbers

Budget Overview

SBA Programs: 3 C’s and a D

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7(a) Loans 504 Loans Small Business Investment Companies Small Business Innovation Research/Small Business Technology Transfer Other

Capital

Contracting

Counseling

Disaster

Small Business Contracting Socio-economic programs Size standards Other

SBA Field Network Small Business Development Centers Women’s Business Centers SCORE

SBA’s Programs: Three C’s and a D

Economic Injury Disaster Loans Business Physical Disaster Loans Home Physical Disaster Loans

Clusters STEP Other

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Timeline of Programs

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1953 1958

SBIC

1964

SCORE

1979 1982

SBIR

SBA Established

1992

STTR

Microlending

2012

Boots 2 Business

Encore Entrepreneurs

7(a) Loan Program

SB

Contracting Set-Aside Program

Disaster Loans

1981

504 Loan Program

20101988

WBC

2011

WOSB

STEP

Start Young

1978

SBDC

2008

Emerging Leaders

8(a)

1998

HUBZone

2003

SDVOSB

2005

VBOC

Clusters

Legend = Capital = Contracting = Counselling = Disaster

Capital: All SBA Loans

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FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY1305

101520253035

27.4 28.524.6

17.822.4

30.5 30.3 29.6

Total loans supported since Fiscal Year 2006

SBA

lend

ing

($, b

illio

n)

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY130

100200300400500600700800900

1000824

903

699

499 556640

571 559

Thousands of jobs supported by SBA lending since Fiscal Year 2006 (self-reported)

Jobs

sup

port

ed (K

)

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Small Business Prime Contracting Achievement (%)

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY1220%

21%

22%

23%

24%

23.4122.83

22.0021.50 21.89

22.6621.65

22.25

Goal

Small Business Prime Contracting Achievement ($, Billions)

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY120

102030405060708090

100

75.0 77.7 83.3 92.1 96.8 98.0 91.5 89.9

Who: Small business contractors

What: SBA manages the small business contracting programs for all federal agencies and is responsible for ensuring the government achieves the statutory goals: – 23% Small Business– 5% Small Disadvantaged Business (8a)– 5% Women-Owned Small Businesses– 3% HUBZone– 3% Service-Disabled Veteran-Owned SBs

How: Set-aside programs are in place for each of the small business categories above. SBA manages the certification and protest process for each program

Contracting: Small Business Contracting

Contracting: Socio-Economic Programs

Women-Owned Small Business (%)Small Disadvantaged Business (%)

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12-1%0%1%2%3%4%5%6%7%8%

6.55 6.76 6.58 6.76 7.56 7.95 7.67 8.00 Goal

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12-1%0%1%2%3%4%5%6%7%8%

3.18 3.41 3.41 3.39 3.68 4.04 3.98 4.00

Goal

Service-Disabled Veteran-Owned Small Business (%)

Historically Underutilized Business Zones (%)

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12-1%0%1%2%3%4%5%6%7%8%

1.93 2.11 2.24 2.34 2.81 2.77 2.35 2.01Goal

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12-1%0%1%2%3%4%5%6%7%8%

0.61 0.87 1.01 1.49 1.98 2.50 2.65 3.03Goal

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Who: All small businesses

What: SBA sets the small business size standard for each industry based on the North American Industry Classification Codes (NAICS); These standards are used for all SBA programs

How: – Size standards are determined based on

economic analysis of each industry– Standards are based on either (1) number

of employees, (2) annual revenues or (3) a combination of the two

– Per the Small Business Jobs Act of 2010, all size standards need to be updated every 5 years

Contracting: Size Standards

Most common standards for a small business: 500 employees for most manufacturing

and mining industries $7 million in average annual receipts for

most non-manufacturing industries

Largest size standards: 1500 employees for select

manufacturing industries $35.5 million in average annual

receipts for select construction, retail and services industries

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Counseling: Small Business Development Centers

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SBDC data (last five fiscal years, plus FY14 budget)

FY09 FY10 FY11 FY12 FY13 FY149095

100105110115120125

116113

121

113

103

114

SBDC grants in budget - $M

FY09 FY10 FY11 FY12 FY130

100200300400500600700

376 380 352 332 331

208 210 205 211 202

xThousands of SBDC clients counseled (red) and trained (blue)

584 589 558 544 532

Who: All small businesses and entrepreneurs

What: These resource partners provide a vast array of technical assistance that helps strengthen business performance and adds to the creation of new businesses.

How: SBA awards matching grants to SBDC leads in each state; one or more sponsors (state/local government or private) must provide matching fund contributions. SBDCs offer no cost, extensive, one-on-one, long-term professional business advising, low-cost training and other specialized services

Number: For years statute has required that SBA fund 63 cooperative agreements with resource partners that serve as lead SBDCs

Counseling: SCORE

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FY09 FY10 FY11 FY12 FY13 FY140

2

4

6

8

5.0

7.0 7.0 7.0 6.4 7.0

SCORE grant size in budget - $M

SCORE data (last five fiscal years, plus FY14 budget)

FY09 FY10 FY11 FY12 FY130

100

200

300

400

500

177 237 221 292 218

204170 136

167127

xThousands of SCORE clients counseled (red) and trained (blue)

380 407357

459

346

Who: Small businesses and aspiring entrepreneurs

What: SCORE members are trained to serve as counselors advisors and mentors to aspiring entrepreneurs and business owners

How: SBA awards a single grant to SCORE. Working and retired executives and business owners donate their time providing entrepreneurs with free, confidential face-to-face and online business counseling services offered at no fee, as a community service

FY09 FY10 FY11 FY12 FY13300320340360380 368 371 367 367

332

Number of SCORE-funded chapters

Counseling: Other

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AARP / Encore Entrepreneurs

Boots to Business (B2B)

Entrepreneurship Education

Start Young

VBOCs

Background

Who: Americans over the age of 50 What/How: SBA and AARP are working jointly to link Americans age 50+ with small

business development resources, including live workshops, conferences and mentoring programs to give them entrepreneurship support

Who: transitioning service members What/How: B2B courses introduce veterans to the fundamentals of small business

ownership and to the SBA tools and resources available to them. SBA’s resource partner network is responsible for delivering B2B trainings on bases across the country

Who: Owners of high-growth small businesses in underserved communities What/How: SBA’s Entrepreneurship Education program offers an intensive seven month ‐

executive leader education series that elevates business owners’ growth trajectory, creates jobs, and contributes to the economic well being of underserved communities‐

Who: Students enrolled in the U.S. Department of Labor (DOL) Job Corps Program What/How: Start Young helps young people learn the skills they need to start their own

businesses. SBA partners with the DOL’s Employment and Training Administration and resource partners to provide entrepreneurship training that lasts 6-9 weeks

Who: veteran business owners or veterans considering starting a business What/How: program is designed to provide entrepreneurial development services such

as business training, counseling, mentoring and referrals. VBOC workshops are focused on tools for self-employment for developing and expanding new businesses

Disaster: Business Disaster Loans

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Business disaster loan data (last five fiscal years)

FY09 FY10 FY11 FY12 FY130

100200300400500600

372

214 172 215

550Business disaster loan lending - $M

FY09 FY10 FY11 FY12 FY130

1,0002,0003,0004,0005,0006,000

3,372

2,070 1,717 1,907

5,119

Business disaster loans approved

Business – Physical Disaster Loans

Who: Businesses or most private nonprofit organizations located in a declared disaster area with losses not fully covered by insurance

What/How: SBA makes physical disaster loans of up to $2M for the repair or replacement of the following: equipment, fixtures, inventory, machinery, and leasehold improvements

Business – Economic Injury Disaster Loans

Who: small businesses and private nonprofits located in a declared disaster area

What/How: SBA makes economic injury loans of up to $2M to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. This capital helps organizations survive until normal operations resume after a disaster.

Disaster: Home Physical Disaster Loans

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Home disaster loan data (last five fiscal years) Who: homeowners, renters and/or personal

property owners located in a declared disaster area

What: Primary source funding for permanent rebuilding and replacement of uninsured or underinsured disaster damages

How: SBA can provide up to $40K to homeowners and renters to help repair or replace personal property, such as clothing, furniture, automobiles, etc., lost in a disaster. SBA can also provide homeowners a loan of up to $200K to repair or replace their primary residence to its pre-disaster condition

Other Background: Fiscal Year 2013’s spike in home disaster loans was a result of Hurricane Sandy

FY09 FY10 FY11 FY12 FY130

5001,0001,5002,0002,5003,000

757360 567 475

2,426

Home disaster loan lending - $M

FY09 FY10 FY11 FY12 FY130

10,000

20,000

30,000

40,000

50,000

18,40813,286 11,926 13,417

41,698

Home disaster loans approved

Disaster: Top Disasters for SBA Assistance

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Major Disaster Lending Activity in the Last 20 Years ($, billions)

Hurricane Irene & TS Lee ('11)

WTC/Pentagon ('01)

Hurricane Floyd ('99)

Upper Midwest Floods ('97)

Hurricanes Ike & Gustav ('08)

Florida Hurricanes ('04)

Hurricane Sandy ('12)

Northridge Earthquake ('94)

Hurricanes Katrina/Rita/Wilma ('05)

0 2 4 6 8 10 12

0.5

0.5

0.7

0.7

0.8

2.2

2.4

4.0

10.9

SBA Overview

U.S. SourceLink Conference, April 24, 2014