AGENDA

Background Information

SBA

Counseling

Lending

Government Contracting

http://www.sba.gov/aboutsba/history.html

Free Courses On LineFree Courses On Line

http://www. myownbusiness.org/course_sba.html

Maximum Size Standards

• ManufacturingManufacturing– 500 employees or less500 employees or less

• WholesalingWholesaling– 100 employees or less100 employees or less

• Service and RetailService and Retail– $6 million or less in annual receipts$6 million or less in annual receipts

• There are many variations so check with the District There are many variations so check with the District Office if you feel you business is close to these maximumsOffice if you feel you business is close to these maximums

SBA in Hawai‘i

• Counseling and Training

• Financial Help – Loans

• Government Contracting

– Small Business Set Asides

– 8(a) Sole Source Contracts

– Women-owned Businesses

– HUBZone Businesses

Small Business Resource Center

Counseling Partners

• SBRC – Library/Computers – Honolulu & Moloka‘i• SCORE – volunteers, counsel in skill areas• WBC – Women-owned small businesses• Small Business Development Center Network

– Professional counselors

– In Hilo, Kihei Maui, Honolulu, Kaua‘i Com. College

– Under University of Hawai‘i at Hilo

Financial Assistance

• Loans– Primarily made by private lenders, with SBA

guaranties

– Guaranties are generally up to 85% of loans to $150,000; 75% of loans above $150,000

SBA Borrower Requirements

• Good character• Management expertise and commitment to succeed• Reasonable personal contribution or business equity• Feasible business plan• Sufficient collateral• Ability to repay loan from projected operating cash flow

Lending History

2004 2005

518 Loans 428 Loans

$63.2 Million $52.9 Million

Bank No. of Loans Loan Amount(000's)Gross SBA

Bank of Hawaii 94 6446.1 3517.6First Hawaiian Bank 28 3599.6 2192.6Central Pacific Bank 25 1869.0 1211.7Capital One 25 1035.0 517.5Citizens Security Bank 19 2819.8 1775.1American Savings Bank 6 550.0 371.3Hawaii National Bank 4 598.6 463.3Comerica Bank 2 1863.2 1397.4UPS Capital Business Credit 2 1278.0 958.5Bank of Guam 2 90.0 76.5Wilshire State Bank 1 1850.0 1387.5Branch Banking & Trust Co. 1 400.0 300.0Center Bank 1 350.0 262.5Stearns Bank National Association 1 200.0 170.0

Sub-total 211 22949.3 14601.5

Business Loan Center LLC 29 789.0 670.7Innovative Bank 27 285.0 242.3Microloan 1 21.5 21.5Total 7(a) Loans 268 24044.8 15536.0

HEDCO 504 Loans 16 6473.0 6473.0Lokahi Pacific 504 Loans 1 1122.0 1122.0

Grand Total 285 31639.8 23131.0

Loan Activity, FY 2006Nine Months Ended 6/30/06Loan Activity, FY 2006 - Nine months ended 6/30/06

COMMUNITYEXPRESSLOAN

U.S. Prime Contract Dollars FY 2000-2005

0

50

100

150

200

250

300

350

Pri

me

$ (

bill

ion

)

Total $ (billion) 200.9 219.6 235.4 277.5 299.9 314

SB $ (billion) 44.7 50.1 53.3 65.5 69.2 79.6

2000 2001 2002 2003 2004 2005

Congressional Goals

Prime

Small Business 23 % SDB 5 %

Women Owned 5 %

Hub Zone 3 %

Veteran 3 %

Percentage to Sm Bus 36 36 35 38 41

State of Hawaii Federal Procurement Dollars FY 2000-2005

0

0.5

1

1.5

2

2.5

Fe

de

ral P

rocu

rem

en

t $

(b

illio

n)

Total $ (billion) 1.234 1.42 1.544 1.933 2.008 2.2

SB $ (billion) 0.449 0.507 0.532 0.728 0.814

2000 2001 2002 2003 2004 2005

Federal Procurement to Small BusinessPercentage to Small Business

FY 2000-2005

0

10

20

30

40

50

Per

cent

age

to S

mal

l Bus

ines

s

The Nation - %

Hawai‘i - %

The Nation - % 22 23 23 24 23 25

Hawai‘i - % 36 36 35 38 41 43

2000 2001 2002 2003 2004 2005

Achievements in Hawai‘i – 2005

$ Million %

Small Business $588 43 %

Small Disadvantaged Bus. $399 29 %

Woman Owned Business $102 8 %

HubZone $ 57 4 %

Veteran – SDVOSB $ 2 --

• 8(a)

• Small Disadvantaged Business (SDB)

• HUBZone (Historically Underutilized Business Zone)

Certifications Available through SBA

http://www.sba.gov/8abd/

The 8(a) Program• Must be a small business

• A for-profit small business

• Owned/Controlled by a minority person

• A U.S. Citizen

• Minimum 2 year experience by the firm

• Personal assets of < $250,000– Excludes home and business assets

Benefits of 8(a) Program

• Firms can receive sole-source contracts below $3 million

• Firms can compete above $3 million limited to 8(a) firms only

• Mentor/protégé program is available

• Joint Venture permitted on larger contracts

The 8(a) Program

FY 2003 FY 2004 FY 2005

8(a) $ Million $268 $229 $283

The 8(a) Portfolio

As of July 2006 210 firms in the portfolio

In 2005 – 110 firms contracts/mods 716 transactions

The Native Hawaiian Organization (NHO) Program

An NHO is a community service organization serving Native Hawaiians

A non-profit corporation that has filed articles of incorporation with the Hawai‘i Department of Commerce and Consumer Affairs

Is controlled by Native Hawaiians

Whose activities principally benefit Native Hawaiians

For profit 8(a) firms may become subsidiaries of NHOs

The NHO must acquire 51% of the 8(a) firm

The 8(a) firm can be located anywhere in the United States

The Benefit – non-bid contracts of unlimited size

Current 8(a) Firms Owned by Native Hawaiian Organizations

8(a) Firm Principal of the8(a) Firm

NHO Principals of The NHO

JTSI, Inc. Cynthia Pacheco Nā ‘Ōiwi Kāne Ron JarrettBruss Keppeler

The Hana Group, Inc. Alvin Pauole Hui ‘O Hana Pono David Cooper

HBC Management Irwin Cockett

Dawson Group, Inc. Christopher Dawson Hawaiian Native Corporation

Beadie Dawson

Pelatron, Inc. Thomas AimokuMcClellan

Pacific Center forEconomic Development

Harvard KimKimo Kahoano

Honolulu Marine LLC Charles Pires Mana‘o Nui, Inc. Bryan Ho

Akimeka Technologies LLC Phil Kahue Alaka‘ina Foundation Vaughn Vasconcellos

Hawai‘i InternationalEnvironmental Svc.

Mayumi Randall Hui O Hanohano George Jones

Omega Global Solutions Dennis Keohokalole Royal Hawaiian Foundation

Ty Dennis

Kukulu LLC Todd Shishido NH Legal Defense & Education Fund

Walter KaneakuaDwight Kealoha

Kuhana Associates Paul Komeiji

The Teho Company Matthew Teho Honu‘apo Kendis Teho