A business proposal is not a business plan. A business proposal can be a solicited bid or an unsolicited bid that is made to or by your business. There may be times in your small business career when your company will need to be prepared to submit a business proposal for a government contact or larger corporation in order to obtain more business.

Solicited Business Proposal….You company may be approached to provide a solicited business proposal by a government body or corporation. They will be looking to complete a task or fulfill a project that they cannot do on their own. They will ask companies to bid for the project. Each company will place an open bid along with other companies who would also be completing for an interview spot. At the end of the process, the winning candidate will be offered the project.

Unsolicited Business Proposal…Your small business may seek to do business with a larger company or combine efforts to forge a joint venture. This would be especially beneficial if you have been awarded a large contract that will be difficult for you to complete alone.

Whether solicited or unsolicited, you will need to have a good business proposal available to the interested parties.

Please check back on Wednesday for the conclusion to this post.

In continuation to the post on Wednesday.

Small Business Administration loans are a powerful lending tool. They are often obtained by new businesses as well as existing businesses. They offer the potential lender security and therefore are much easier to obtain. The loans can be used to purchase existing businesses or purchase new supplies or equipment that may be needed to further promote a business to make it successful.

With all types of financing, business should do their homework before applying for a loan. It is important that you check your credit before applying for a SBA guaranteed loan or any type of loan. You should know your credit scores and correct any negative issues prior to approaching a bank. If you are unable to clear negative credit issues, be honest with your potential lender as to what is going on with your credit report. Have a clear business plan prepared for your potential lender and the SBA. Create a summary of your business assets as well as a list of everything that you are seeking the financing for. If you have an existing business, have your bank statements and receipts available so that your bank will be able to see that you can make the loan payments each month.

It is always stressful obtaining a loan but the SBA does make the process easier. Knowledge is power and preparedness is the key to success!

In continuation to the post on Monday.

If a business falls into any of the above categories, seeking assistance from the Small Business Administration would be a smart choice to investigate. The SBA will guarantee that 80 percent of a loans value, up to $100,000, will be paid back to the lending institution if the loan goes into default. If the loan issued is over $100,000, then the SBA will guarantee 75 percent of the loan to the lender. The maximum loan value guarantee that can be obtained is $750,000. The program that the SBA offers can help women who would otherwise not qualify for a loan.

The loans programs offered through the SBA are not always the most inexpensive loans out on the market. At times, the interest rates are at or over other commercial loan interest rates that are being offered by lenders. Business must pay a guarantee fee that is usually between 3 percent and 3.875 percent that is calculated on the portion of the loan that will be guaranteed through the SBA. The SBA loans for women offer longer amortization rates when you compare them to other commercial loans offered by banks. Those seeking fixed asset loans should expect to see financing that is offered for up to 10 years. Working capital loans will be financed for up to 7 years. Those seeking loans for construction or real estate can expect financing for up to 25 years.

Please check back on Friday for the conclusion to this post.

Make sure to go over these great lists for starting up your own small business.  Great to go over even if you have been in business.

 Checklists for starting your first business

Thanks Becky!

One of the most known types of loan programs for businesses owned by women is through the Small Business Administration (SBA). The SBA does not provide funding to companies or individuals directly. Instead they will guarantee a financial institution that the loans will indeed be paid if they are ever defaulted on by the business in question.

Women owned businesses seeking a loan will find funding easier if the loan is approved and guaranteed through the Small Business Administration. Obtaining funding is often considered to be less stressful of a process compared to using traditional channels. There are specific approval guidelines and goals that must be reached by the SBA each year. Any SBA loan that is sought must be applied for through a local, national or commercial bank.

The SBA will evaluate a potential business idea or existing business just like a lending institution would before granting approval. The program set forth by the SBA provides assistance especially if a financial institution will not approve a business loan.

A lending institution may not want to approve a loan if they feel that they would be putting their money at high risk, or if the borrower does not have sufficient collateral, or if the business is in need of updating in order for it to succeed. These situations often prove to be risky transactions that banks tend to stay away from.

Please check back on Wednesday for part II of this post.

In continuation to the post on Wednesday.

The HUBZone area is defined as a “Historically Underutilized Business Zone”. It is designed to promote employment growth and economic development in certain areas that are considered “distressed” areas. Companies in these areas have access to more federal contracting opportunities. Certification is required. Once certified, small business firms will have opportunities to participate in contracts that are limited to only HUBZone firms.

A “service-disabled veteran-owned business” is defined as a business that is owned by at least 51 percent by a service disabled veteran or veterans. The Veterans Administration WILL confirm the disability. There is a 3% goal of prime contract awards available to service-disabled veterans. Contracts are set aside waiting for application approval.

Additionally, there are many programs available from the Veteran’s Administration to small businesses, that are veteran-owned companies. These programs will provide assistance, counsel, aid and support. The Office of Small and Disadvantaged Business Utilization (OSDBU) is at the disposal of veterans. They provide service to veteran women owned businesses, small veteran owned businesses, disabled veteran owned businesses, and disadvantaged veteran owned businesses. It is very important that all veteran owned businesses identify themselves properly so that they will be able to take full advantage of the services available to them.

With the federal government being the largest buyer of goods and services, it is important that small businesses identify themselves correctly if they intend to try to obtain government contracts. Here are some identification guidelines to help you before submitting your contract proposal. Proper identification can serve as a marketing strategy especially since government agencies must meet a variety of small business procurement goals.

Your company can be considered a “women-owned business” if it is owned and controlled by at least 51 percent or more by a woman or women. A woman-owned certification is not currently required to apply for federal contracts. You will need to certify this information yourself by checking the appropriate box on the form when you apply.

You will need to determine if you are indeed a “small business”. The SBA has size standards that define whether a business is eligible to participate in government programs. The North American Industry Classification System (NAICS) has set the standards for the US, Mexico and Canada. Size standards are established for types of industry and economic activity.

Your company will be considered a “veteran-owned business” if it is 51 percent owned by a veteran or veterans. No veteran-owned certification process will need to be completed, but you will need to self-certify this information on your application by checking the appropriate box.

Please check back on Friday for the conclusion to this post.

More than $6 million in U.S. Small Business Administration Disaster Assistance Loans have been approved for residents in Indiana who were affected by the severe storms and flooding January 7 through March 14, 2008.

Victims are urged to register with FEMA by calling 1-800-621-3362 (FEMA), then complete and return their SBA disaster loan application by the March 31, 2008 deadline. “SBA is here to help you with your recovery efforts. I encourage anyone who has not completed their disaster loan application to do so and meet with a Customer Service Representative at one of the Centers located throughout the disaster area for assistance,” Skaggs added.

The deadline to return physical loan applications is March 31, 2008; the deadline for returning economic injury applications is October 30, 2008.

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The SBA is hosting 2 great seminars this week:

U.S. Small Business Administration, Small Business Funding seminar, 8:30 a.m., March 18. Associated Builders and Contractors, 430 W. Germantown Pike, East Norriton. Don Jefferson, 215-580-2726 or donald.jefferson@sba.gov.

U.S. Small Business Administration, How to do Business with the Government seminar, 8:30 a.m., March 19. Associated Builders and Contractors, 430 W. Germantown Pike, East Norriton. Don Jefferson, 215-580-2726 or donald.jefferson@sba.gov.h

Thanks to Phillyblurbs.com for the story!

Small businesses may wonder why they should look to the United States Government to help launch their small business. The fact remains that the United States is by far the world’s largest buyer of products and services. Both civilian and military installations spend approximately $200 billion dollars annually in purchases. Whether you have basic services or a complex product to sell; this in an important avenue that all small businesses should consider investigating.

The US law dictates that federal agencies are required to establish certain contracting goals. The good news is that in our country, 23 percent of all contracts must be awarded to small businesses. Specific contract goals are established for women-owned businesses (5%), businesses located in HUBZones (3%), small disadvantaged businesses (5%) and service disabled veteran-owned businesses (3%). Contracting goals are set so that small businesses receive their fair share of the markets need. Many times these goals are not met. The federal government is required to reach out and consider small businesses in order to achieve their 23 percent overall goal. Small businesses who would like to be considered should market their products and services so that they can be considered for this underused market.

Marketing to the federal government is very similar to selling your products in the private sector. There may be different rules and regulations to follow, but your current marketing techniques and strategies are basically the same. Any company who is interested in selling their goods should get to know what the federal government is interested in purchasing. They would want to know about any past awards, quantities, costs and awarders. Your current financial status, staffing capabilities and your track record are all important considerations that will be reviewed before any contracts will be awarded.