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VAMBOA Fresno Office WorkshopVeterans Small Business Week will be observed this year November 3-7, 2014. Many district offices of the U.S. Small Business Administration (SBA) will be holding events and seminars to mark the occasion.

California Veterans should be aware that the Fresno SBA District Office is offering a special workshop for Veterans and their spouses who are interested in starting a new small business or expanding their current business.

The workshop will be held on Wednesday, November 5, 2014 from 9am until noon, at the SBA Fresno District Office in Fresno, CA.

By attending the event, Veteran entrepreneurs can learn about the multitude of SBA programs, including programs for small loans on home-based businesses, to multi-million dollar loans for real estate and manufacturing. Participants will also receive education on the SBA loan programs created specifically for Veterans and their spouses. The information will be provided by an experienced SBA loan officer and a local SBA lender.

The Veterans Small Business Week workshop will also cover government contracting. Participants can learn how to become a certified Veteran Owned Small Business, and find out how obtaining this designation can provide their company with a significant edge over their competition when trying to win bids for federal, state, and local government contracts. This information will be provided by a fellow Veteran who is also a former Small Business Owner, and now the SBA Veteran Business Officer.

The event is free to Veterans and their spouses. Space is limited, so interested entrepreneurs must register in advance by calling William Hori at (559) 487-5791 or emailing fresno@sba.gov. Reasonable accommodations will be made for persons with disabilities, if requested at least one week in advance of the program by using the same contact information.

The Veteran and Military Business Owners Association (VAMBOA) is a non-profit business trade association that promotes and assists Veteran Business Owners, Service Disabled Veteran Owned Businesses (SDVOB) and Military Business Owners. Small businesses are the backbone of our economy and responsible for job generation. That is why VAMBOA provides its members with Business Coaching, Contracting Opportunities, a Blog that provides information, Networking contacts and other resources. Membership is FREE to Veterans. Join Now!

VAMBOA: SBA Provides Special Veteran Workshop in CA: By Debbie Gregory

SBA extends loan programsRecently, the U.S Small Business Administration (SBA) announced that fee relief for small business loans made to Veterans will be extended through fiscal year 2015, and that programs for its Veterans Advantage program will be enhanced.

Last year, the SBA implemented its zero-fee loans for Veteran owned small businesses on 7(a) loans of $150,000 or less. This benefit was supposed to expire on September 30, 2014. The continuation of the loan relief was slated to extend from October 1, 2014 to September 30, 2015.

“We zeroed out fees on loans of less than $150,000 to any 7(a) borrower because we don’t want SBA fees to be an impediment to getting capital out to communities where it can make a game-changing difference, especially to our underserved communities, who use these small dollar loans more frequently,” said SBA Administrator Maria Contreras-Sweet.  “We also owe a debt of gratitude and so much more to our service men and women, and veterans who are the cornerstone of small business ownership. This fee relief will continue to help veterans business owners who grow their businesses, create jobs in their communities, and put their training and passion for our country to work in their neighborhoods.”

As of the middle of September, the SBA had guaranteed more than 28,800 loans under $150,000 for a total of over $1.74 billion in FY 2014. These totals are up from FY 2013, when the SBA guaranteed $1.34 billion for 23,337 loans under $150,000.

For loans larger than $150,000, the SBA will continue to offer an annual servicing fee at 0.519% of the guaranteed portion of the outstanding balance of the loan. The upfront guarantee fee will continue to depend on both the amount and the maturity of the loan.

The SBA will also continue to offer zero upfront guaranty fee on all SBA Express loans to veterans, on loans of $150,000 up to $350,000 through FY2015.

One of the other enhancements that the SBA is implementing is the upfront guaranty fee for non “SBA Express” loans $150,000 up to $5 million, which will be reduced by 50%. There is no reduction on the annual servicing fee for loans over $150,000.

The SBA determined that 70% of its loans made to Veterans are $350,000 or less. In FY 2014, the SBA had guaranteed 153 loans for $38,861,900 through its Veterans Advantage program. Fee relief for these loans resulted in savings to borrowers of about $571,000.

For further information on all SBA programs and services, visit the SBA website at www.sba.gov, or contact your local SBA field office.

The Veteran and Military Business Owners Association (VAMBOA) is a non-profit business trade association that promotes and assists Veteran Business Owners, Service Disabled Veteran Owned Businesses (SDVOB) and Military Business Owners. Small businesses are the backbone of our economy and responsible for job generation. That is why VAMBOA provides its members with Business Coaching, Contracting Opportunities, a Blog that provides information, Networking contacts and other resources. Membership is FREE to Veterans. Join Now!

VAMBOA: SBA Extends Loan Programs: By Debbie Gregory

Business Loans 101

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SBA Georgia District Office

Who:  Minorities, women,disabled, and veteran; existing and prospective small business ownerswelcome.

When: Tuesday, November 4 and Wednesday, November 5, 8:00 am ‐ 2:30 pm

 Where: KSU Center at Kennesaw State University, 3333 Busbee Drive Kennesaw, GA 470.578.6450.  For more information contact Carole Arnold, Program Coordinator

Cost: Only $89 for both days, including breakfast, networking lunch and all materials. Click here to register.  http://www.colescollege.com/sbdc

The Georgia SBDC Credit School:  Business Loans 101 for Women, Minorities, Veterans and the Disabled

In 2013, the Georgia SBDC network helped small business owners obtain over $155,000,000 in capital infusion. The Georgia Small Business Development Center (SBDC) has utilized its lending expertise, knowledge of SBA and other loan programs, loan packaging skills, and banking relationships to develop The Credit School, a “business loan 101 guide” specifically designed for minorities, women, veterans and the disabled.

Here’s your opportunity to learn from Georgia SBDC experts who have already helped thousands get business loans. This innovative program is an intensive two‐day workshop that will teach you everything you need to know about getting a business loan – from start to finish.

Georgia SBDC Consultants from around the state will show you how to tap into business loan sources including:

·         what SBA loans are, how they work and how to get one

·         impact of negative personal credit and what to do about it

·         how bankers think and why it matters

·         how other small business owners successfully got funded

·         commercial bankers, SBA lenders and certified development companies who have loaned to small businesses

VAMBOA no fee loans

There is great news for veteran entrepreneurs! The U.S. Small Business Administration (SBA) is extendingits Veterans Advantage program through September 30, 2015. The Veterans Advantage program is also being expanded to include loans up to $5 million. The SBA will continue to offer its provision to eliminate the upfront fee paid by all borrowers for the guaranteed portion of 7(a) loans of $150,000 or less.

Prior to the change, entrepreneurs using the SBA guarantee through private lenders had to pay up to 2% of the guaranteed portion of their loans. This would leave small business owners with fees of up to $2,700.

The SBA is also waiving servicing fees for participating lenders paid by them on loans of $150,000 or less.  Beginning on October 1, 2014, the servicing fee that lenders pay each month on 7(a) loans greater than $150,000 will drop to 0.519% on the guaranteed portion of the outstanding balance.

The up-front guaranty fee is being waived for qualified Veteran owned small business owners using SBA Express loans for amounts up to $350,000.  For Veterans using 7(a) loans outside the Express program, upfront fees continue to be waived for loans up to $150,000.

For loans of $150,000 to $5 million, with a maturity in excess of 12 months, the no upfront-fee will drop by 50% using this formula:

Loans of $150,001 to $700,000 will be at 1.5% of the guaranteed portion.

Loans of $700,001 to $5,000,000 will be at 1.75% of the guaranteed portion up to $1,000,000, plus an additional 1.875% of the guaranteed portion over $1,000,000.

Loans with a maturity of 12 months or less can expect to pay an upfront fee of 0.125% of the guaranteed portion.

In order to qualify for SBA Veterans Advantage, small businesses must be at least 51% owned and managed by an individual or individuals who are veterans, service-disabled veterans, active duty military service member participating in the military’s Transition Assistance Program (TAP), Reservists and National Guard members. Also eligible are the current spouses of any of the previous,  or the widowed spouses of service members who died while in service, or of a service-connected disability.  Verifying documentation proving eligibility is required.

The Veteran and Military Business Owners Association (VAMBOA) is a non-profit business trade association that promotes and assists Veteran Business Owners, Service Disabled Veteran Owned Businesses (SDVOB) and Military Business Owners. Small businesses are the backbone of our economy and responsible for job generation. That is why VAMBOA provides its members with Business Coaching, Contracting Opportunities, a Blog that provides information, Networking contacts and other resources. Membership is FREE to Veterans. Join Now!

VAMBOA: SBA Extends No-Fee Loans: By Debbie Gregory

In 1546, writer, John Heywood was credited for the phrase, “Many hands make light work.” But for small businesses, especially Veteran owned small businesses, very few hands carry a majority of the load. The success or failure of a small business can easily be shaped by the presence or absence of its owner, or a key employee.

With the number of Reservists who own small businesses and have been called to active duty in support of their country, a significant number of them have seen their economic fortunes suffer as a result of their military service. But the good news is that there is relief for these entrepreneurs.

Small businesses that sustained economic losses due to their owner or a key employee being summoned to active duty can apply for a loan of up to $2 million from the U.S. Small Business Administration (SBA).

The SBA provides Military Reservist Economic Injury Disaster Loan (MREIDL) to small businesses affected by the absence of a critical military employee. Applications for MREIDL loans are accepted any time from the date that the member was notified of their call-up to one year after the date of discharge or release from active duty. The loans are designed to allow eligible small business to maintain a current balance on operating expenses that the business could have covered if the business owner hadn’t been called to active duty.

The MREIDL program is managed by the SBA’s Office of Disaster Assistance. The loan is a direct working capital loan, not meant to grow or expand the recipient business, but to maintain the funding of daily operations. It also can’t be used to replace lost profits or refinance long term debt. Interest rates on MREIDL loans are at 4%. No collateral is required to secure MREIDL loans of $50, 000 or less.

Interested Reservist business owners should visit the SBA’s MREIDL portal where they can find more information, including how to apply for the loan. Reservist business owners can also call the SBA’s Disaster Assistance Customer Service Center at (800) 659-2955 or email the office at disastercustomerservice@sba.gov.