AMGEN
BMS-center-logo
 

Los Angeles Mayor Eric Garcetti.

SAVE THE DATE

May 19th, dosage 2014

12pm-5pm

Los Angeles City Hall

Please join Mayor Eric Garcetti to learn about opportunities to start and/or grow your business.

Please RSVP at: www.lamayor.org/veterans_business_summit

VAMBOA storm

Leadership can be found at the core of every Veteran. Any service member who completed any length of enlistment has followed the orders of their superiors, order and most have had some experience in a leadership role. Starting as low as E-4 on the rank hierarchy, find many Veterans saw responsibility in extreme situations, that could have a major impact on the lives of their subordinates. Because of this type of experience, Veterans don’t shy away from the ultimate civilian leadership role of owning a business and being responsible for the livelihoods of their employees.

Possibly due to their military leadership experiences, Veterans are taking on the challenges of business ownership en masse. According to the U.S. Small Business Association (SBA)’s Office of Advocacy March 2012 report, there are nearly two and a half million Veteran owned businesses in the U.S. Veteran owned businesses make up nearly 10% of all businesses nation-wide.  They also employ close to six million people, including fellow Veterans.

For a company to be considered “Veteran owned,” a Veteran must maintain at least 51% of the business’ ownership. The federal government, as well as state and local governments, make special provisions that protect Veteran owned businesses. They do so by setting aside government contracts specifically for Veteran businesses. Additionally, an increasing number of Fortune 500 companies have also made pledges to sub-contract with Veteran owned companies.

Studies have shown that 70% of American consumers would prefer to frequent Veteran owned businesses. The proof is in the dollars. Veteran owned businesses account for almost $1.25 trillion in sales receipts each year. Veteran small businesses make up 78.1% of small businesses, with yearly sales of $100,000 or more.

Veterans and service-disabled Veterans who are interested in starting their own companies, or expanding their existing businesses are encouraged to seek membership in the Veteran And Military Business Owners Association (VAMBOA). VAMBOA offers its members contract opportunities and networking contacts with large corporations. Membership is free.

VAMBOA, dosage a non-profit trade association for Service-disabled business owners, patient Veteran business owners and Military business owners, works to assist these entrepreneurs start, maintain, and grow their companies.

Veteran and Military Business Owners Association (VAMBOA) is announcing that it has surpassed 5,000 memberships of Service-disabled business owners, Veteran business owners and Military business owners, with over 105,000 followers on Twitter.

In the military, personnel are asked to complete an infinite array of tasks, and failure is not an option. Officers, Soldiers, Sailors, Marines and Airmen are often provided limited resources and miniscule budgets to complete their missions. But through American ingenuity, and a determination that dwells in the hearts of those who serve, they are driven to complete their missions.

Thousands of Veterans have put that same drive into running their own businesses. Veteran owned businesses account for over $1 trillion in receipts per year. Veteran owned businesses are a vital part of our nation’s economy. It is for that reason that federal, state and local governments provide special loans, incentives and allotments to help Veteran owned businesses succeed. There are even further provisions, governed by law, for service-disabled Veterans.

“There are scores of programs and benefits designed to help Service-disabled, Veteran and Military owned businesses succeed,” said VAMBOA’s founder, Debbie Gregory. “At VAMBOA, we have made it our mission to connect these Veterans with the resources they need to start and maintain a successful business.”

Since 2010, VAMBOA has been providing its members with the knowledge of these government provisions that help Service-disabled Veteran business owners, Veteran business owners and military business owners succeed. VAMBOA also assists its members by providing business coaching, links to resources, and networking opportunities that are crucial to the success of their businesses. VAMBOA also connects it members to contacts within large corporations and government agencies who can mentor members, and in some cases, can even directly provide members with government contracts and vending contracts within large corporations.

VAMBOA is a 501(c)6 non-profit organization and does not charge dues for membership. VAMBOA relies on corporate sponsorship. If you would like to find out more about corporate sponsorship, contact VAMBOA’s founder, Debbie Gregory at: [email protected]. VAMBOA has a significant reach and is the Go To Site for Corporations to Connect with Service-disabled and Veteran Business Owners.

SBA Show Savings on Fees Waived on Small Business Loans

Small businesses start with passion and ideas. But they need funding to get off the ground. The Small Business Administration (SBA) has been a primary resource used by Veterans and civilians for obtaining loans to fund their startups and existing businesses. While the SBA doesn’t directly loan money to business owners, the SBA does guarantee loans made by participating lending institutions.

The basic program utilized by the SBA for small businesses is the 7(a) loan. The 7(a) loan is the most utilized loan by the SBA because it can be used for a multitude of business purposes. Additionally, it is more easily approved, a plus for business owners who may otherwise have difficulties procuring loans directly from lenders. Small business owners, especially those who are just starting their companies, may not have the cash flow that independent lenders require. The SBA serves to provide lenders with an increased guarantee against a defaulted loan. The 7(a) loans are capped at a maximum of $2 million.

In an effort to promote entrepreneurship, the SBA has also taken the initiative to waive fees on smaller loans. On loans under $150,000 guaranteed through the SBA after October 1, 2013, the fees have been set at 0%.

The SBA recently announced that small business borrowers who have or will receive SBA 7(a) guaranteed loans of $150,000 or less during Fiscal Year 2014 (October 1, 2013 – September 30, 2014) will have saved more than $6.3 million. The SBA contends that this number includes fees that were eliminated on the agency’s smallest loans, including approximately $142,000 in savings to 179 borrowers in the Santa Ana, CA District.

The waived fees are part of the SBA’s initiative to make it more cost effective to originate smaller loans.  In addition to the fees that borrowers typically pay based on the amount guaranteed by the government, the ongoing monthly fee paid by SBA lenders will be eliminated for the entire life of 7(a) loans of $150,000 or less made while the initiative is in effect.

The SBA still includes fees on loans greater than $150, 000. On any loan greater than $150,000 with a maturity of one year or shorter, the fee is 0.25 % of the guaranteed portion of the loan. On loans with maturities of more than one year, the fee is 3% of the SBA-guaranteed portion on loans of $150,000 to $700,000, and 3.5 % on loans of more than $700,000. There is also an additional fee of 0.25 % on any guaranteed portion of more than $1 million.

The SBA believes that fees collected from larger loans are expected to offset any losses sustained from the smaller loans.

To participate in the 7(a) Loan Program, a lender must meet requirements that are indicated in the Code of Federal Regulations.

Active duty military, Veterans and any civilian interested in starting a small business should utilize the SBA’s website, www.sba.gov as a valuable resource.

ibmpos_blurgb