Small Business Seminar Hosted By: State Representatives Thomas Murt - 152 nd Legislative District Todd Stephens - 151 st Legislative District
Small Business First Division Loan Programs • Small Business First (SBF) • First Industries Agriculture SBF • First Industries Tourism SBF • Community Economic Development (CED) • Pollution Prevention Assistance Account (PPAA) • Export Finance Program (EFP)
Small Business First (SBF) Eligible Businesses: • Manufacturing Enterprise • Industrial Enterprise • Research & Development Enterprise • Hospitality Enterprise • Defense Conversion Enterprise • Recycling Enterprise • Construction Enterprise • Computer Related Services Enterprise • Child Day Care Enterprise
First Industries Agriculture SBF Eligible Businesses: • Production Agriculture • Agribusiness: i.e. food processor • Sale of farm commodities at wholesale • Sale of farm commodities by urban and retail supermarkets • Farmers’ Markets
First Industries Tourism SBF Eligible Businesses: • PA Destination Sites • Hospitality Establishments • Businesses that develop and market travel packages for PA • Tourism related activities promoting overnight visits to PA
SBF & First Industries SBF Uses & Terms: • Land & Building Costs 15 years • Machinery & Equipment 10 years • Working Capital 3 years Loan Amounts & Rates: • 50% of total eligible project costs up to $200,000 • 50% of total eligible project costs up to $100,000 for WC • Rate based on 10 year treasury rate plus 100 basis points. Rates are fixed throughout life of loan. Other: Application must be packaged by an Area Loan Organization (ALO) No job creation/retention requirement for agricultural producers Small Business – 100 or fewer full-time employees
SBF & First Industries SBF Other Requirements: • Must be located in Pennsylvania • Creation or Retention of 1 full-time job for every $25,000 • For-profit businesses only (except for child day care) • Personal / corporate guarantee(s) • Funds may not be used to refinance • Application packaged by an Area Loan Organization (ALO)
Community Economic Development (CED) Eligible Businesses : • For-profit business with 100 or less full-time employees • Mercantile, Commercial, Service, or Retail business
Community Economic Development (CED) Uses & Terms: • Land & Building Costs 15 years • Machinery & Equipment 10 years • Working Capital 3 years Loan Amounts & Rates: $100,000 or 50% of project costs, whichever is less • • Fixed rate – 2%
Community Economic Development (CED) Other Requirements: • Must complete Letter of Intent and be invited to apply • Retain current number of full-time jobs • Require personal / corporate guarantee(s) • Funds may not be used to refinance
Pollution Prevention Assistance Account (PPAA) Eligible Businesses: • For-profit businesses located within the Commonwealth of Pennsylvania and having 100 or fewer full-time employees worldwide at the time of submission of the application. • Program financing for eligible small business that adopts or installs pollution prevention or energy efficient equipment or processes that reduce or reuse raw materials on-site, reduce the production of waste, or significantly reduces energy consumption and are directly related to business activity
Pollution Prevention Assistance Account (PPAA) Examples of Eligible Activities: • Energy Efficiency Projects • Closed Loop Cooling or Process Water Systems • Equipment and Process Changes that Reduce the Production of VOCs • Equipment that Reduces Chemical Use in Industrial and Treatment Processes • Equipment that Converts Waste Material to a Usable Form • Reusable Materials Handling Equipment
Pollution Prevention Assistance Account (PPAA) Uses & Terms: • Machinery & Equipment / Installation Up to 10 years Loan Amounts & Rates: • 75% of total eligible project costs up to $100,000
Pollution Prevention Assistance Account (PPAA) How to Apply: • Business must first apply for eligibility through DEP • Application is packaged by the respective ALO and submitted to the Department by the ALO on behalf of the business
Pollution Prevention Assistance Account (PPAA) Other Requirements: • Retain current number of full-time jobs at time of submission • Require personal / corporate guarantee(s) • Funds may not be used to refinance
Export Finance Program • Purpose: – Provide working capital and accounts receivable lines of credit for Pennsylvania businesses to export its goods or services • Criteria: – Operate as a going concern in PA – Have 250 or less full-time employees – Operating history of at least one year
Export Finance Program • Amounts: - Lines of credit up to $350,000 • Rates: - Based on 10 year treasury rate plus 100 basis points. Rates are fixed. • Term: - 12 months. Line of credit can be renewed. Payments are due within 24 hours of receiving payment from importer. • Fees: - Commitment fee of ½%. Renewal fee of ½%.
Contact Information Small Business First Division Office of Innovation and Investment Jared Lucas, Director Phone – 717-346-8006 Email – jarlucas@pa.gov Website – www.newpa.com
PA DEPARTMENT OF GENERAL SERVICES(DGS) BUREAU OF SMALL BUSINESS OPPORTUNITIES (BSBO)
BSBO Mission • BSBO is committed to implementing programs that increase contracting opportunities for self-certified small, and verified small diverse businesses. The newly created Small Business Procurement Initiative will provide the impetus for promoting the economic growth and success of small businesses. The new Small Diverse Business Program will streamline the process for minority, women, veteran and service disabled veteran owned small businesses to participate as prime contractors, subcontractors, suppliers and professional service providers. BSBO intends to reinforce emphasis on contract compliance to ensure commitments are realized, and allegations of abuse, false certification or discriminatory practices are investigated. 20
Legislative and Executive Authority • Executive Order 2011-9 Small Business Procurement Initiative • Executive Order 2011-10 Veteran-Owned Small Business Procurement Initiative. • Act 185 of 2012 Contracting with veteran-owned small businesses. • Commonwealth Procurement Code Defines “small business” 21
Small Business Recruitment Pool Business Available Categories Contracting and Skills Opportunities 22
Small Business Procurement Initiative (SBPI) On-line Self-Certification www.smallbusiness.pa.gov 23
Small Business Procurement Initiative Purpose: To increase opportunities for small businesses to compete for award of Commonwealth contracts as prime contractors. This is a race and gender neutral program. Scope: Commonwealth agencies shall identify contracts for award to small businesses pursuant to direction provided by DGS, with independent agencies also encouraged to participate. DGS has excluded Emergency and Sole Source procurements from the SBPI. 24
SMALL BUSINESS ELIGIBILITY REQUIREMENTS • The business may not employ more than 100 full-time equivalent employees. • The business must be a for profit, United States business • The business must not be dominant in its field of operation • The business must be independently owned • The business, by type, may not exceed the following three-year average gross sales: Procurement Goods - $20 million Procurement Services - $20 million Construction - $20 million Building Design Services - $7 million Information Technology Goods and Services - $25 million 25
SBPI Program Participation Action Steps • Commonwealth Vendor Registration – PA Supplier Portal www.pasupplierportal.state.pa.us – Help Desk 877-435-7363 (User Name and Password) • Self-Certify via DGS, SBPI Website – www.smallbusiness.pa.gov – Complete On-line Self-Certification Application – 5 Steps – Frequently Asked Questions, Guidelines • Successful Completion of SBPI On-Line Self-Certification Application – Commonwealth Issued Small Business Certificate – Small Business Database (Pool) 26
Search Small Business Solicitations How do I search for small business reserve solicitations? http://www.emarketplace.state.pa.us/ 27
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Small Procurement Reserve 29
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Small Diverse Business (SDB) Program
Small Diverse Business Program Purpose: To streamline the process for small diverse businesses to participate as prime contractors, sub-contractors, suppliers and professional service providers on Commonwealth contracts. Small diverse businesses are defined as a small minority, woman, veteran, and service-disabled veteran owned business enterprise. Scope: Commonwealth contracts that are issued on larger procurements for goods, services, IT and construction . 32
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