BUSINESS

SMALL

RESOURCE RESOURCE

ALABAMA

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Meet 

SBA 100

page 28

Counseling

Capital

Contracting

PAGE

11

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18

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SMALL BUSINESS

contents

2012 ALABAMA

Advertising

Phone: 863-294-2812 • 800-274-2812

Fax: 863-299-3909 • www.sbaguides.com

Staff

President/CEO

Joe Jensen jjensen@reni.net

English Small Business Resource Advertising

Nicky Harvey nharvey@reni.net

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Production

Diane Traylor dtraylor@reni.net

SBA’s Marketing Office:

The Small Business Resource Guide is published 

under the direction of SBA’s Office of Marketing and 

Customer Service.

Director of Marketing

Paula 

Panissidi paula.panissidi@sba.gov

Editorial Content

marketinghq@sba.gov

Graphic Design

Gary 

Shellehamer gary.shellehamer@sba.gov

SBA’s participation in this publication is not an 

endorsement of the views, opinions, products or 

services of the contractor or any advertiser or other 

participant appearing herein. All SBA programs 

and services are extended to the public on a 

nondiscriminatory basis.

Printed in the United States of America

While every reasonable effort has been made 

to ensure that the information contained herein 

was accurate as of the date of publication, the 

information is subject to change without notice. 

Neither the contractor, the federal government, 

or agents thereof shall be held liable for any 

damages arising from the use of or reliance on the 

information contained in this publication.

SBA Publication # MCS-0018

This publication is provided under SBA Contract 

# SBAHQ11C0005.

Reni Publishing

Publishers of Small Business Resource

6 Introduction

 6 Administrator’s Letter

 8 Director’s Message

11 Counseling

 Getting help to start up, market and 

 manage your business.

 11 SBA Resource Partners

 13 SBA’s Online Tools and Training

 14 Reaching Underserved 

 Communities

 16 Are You Right for Small 

 Business Ownership?

 17 Writing a Business Plan

18 Capital

 Financing options to start or grow

 your business.

 18 SBA Business Loans

20 What to Take to the Lender

 26 Small Business Investment 

 Company Program

 26 Small Business Innovation 

 Research Program

 27 Small Business Technology 

 Transfer Program

 27 Surety Bond Guarantee 

 Program

 

FEATURES

28 Meet the SBA 100

 29 SBA Loan Program Chart

31 Contracting Applying for Government 

 Contracts.

 31 How Government Contracting 

 Works

 32 SBA Contracting Programs

 34 Getting Started in Contracting

35 Disaster 

 Knowing the types of assistance 

 available for recovery.

36 Advocacy and Ombudsman

 Watching out for small business 

interests.

37 Additional Resources

 Taking care of start up logistics.

 41 Business Organization: 

 Choosing your Structure

42 Other Assistance

“Everything you need to know 

about setting up, marketing 

and managing the revenue 

of your business.”

4 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

Over the past two years, I’ve 

met dozens of entrepreneurs 

who used the tools in this 

guide – information on capital, 

contracts, counseling, and more 

– to build their companies and 

create thousands of good jobs. 

You can read similar success 

stories in the back of this issue 

as part of the SBA 100, which we rolled out in 

August.

Since the credit crisis hit in 2008, the SBA has 

supported over $50 billion in lending to small 

businesses through programs like 7(a) and 504, 

our top two loan programs. During that same 

time, SBA counselors have helped more than 2 

million entrepreneurs and small business owners 

through networks such as our Small Business 

Development Centers, Women’s Business 

Centers, and our SCORE volunteers. And, 

we’ve helped deliver nearly $100 billion each 

year in federal contracts into the hands of small 

business owners.

Today, we continue to empower America’s job 

creators with highly-targeted programs and 

initiatives aimed at helping both Main Street 

small businesses and high-growth small firms. 

This work is crucial, because half of working 

Americans own or work for a small business, 

and two of every three new jobs are created by 

small businesses.

In addition to the great information in this 

guide, check out our online tools. For example, 

at www.sba.gov/direct you can type in your zip 

code and a few details about yourself and your 

business, and you’ll immediately get information 

on SBA resources and contacts in your local 

area. Also, you can quickly get local permit 

and licensing information for various types of 

businesses at www.sba.gov/permits.

America’s small businesses are gearing 

up to expand and hire once again. Our 

commitment at SBA and throughout the Obama 

Administration is to make sure they have the 

tools they need to stay on that path. Please 

feel free to contact your local SBA office if you 

have any questions. We stand ready to help in 

whatever way we can.

Warm regards,

Karen G. Mills

Administrator

Small Business Administration

Every year, the U.S. Small Business Administration and its nationwide 

network of partners help millions of potential and current small 

business owners start, grow and succeed.

Resources and programs targeting small businesses provide an 

advantage necessary to help small businesses compete effectively in 

the marketplace and strengthen the overall U.S. economy.

SBA offers help in the following areas:

	 •	 Counseling

	 •	 Capital

	 •	 Contracting

	 •	 Disaster Assistance

	 •	 Advocacy and the Ombudsman

Visit SBA online at www.sba.gov for 24/7 access to small business 

news, information and training for entrepreneurs.

All SBA programs and services are provided on a nondiscriminatory 

basis.

About the SBA

www.sba.gov

Your Small Business Resource

FROM THE ADMINISTRATOR

The U.S. Small Business Administration

6 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

Rules For Success

Message From The District Director

Like today’s small businesses, large corporate success stories 

started with only an entrepreneur and a dream.

“Nothing in this world can take the place of persistence. 

Talent will not; nothing is more common than 

unsuccessful people with talent. Genius will not; 

unrewarded genius is almost a proverb. Education will 

not; the world is full of educated derelicts. Persistence 

and determination alone are omnipotent. The slogan 

“press on” has solved and always will solve the 

problems of the human race” Calvin Coolidge 30th 

President of the United States, 1872-1933

Regardless of whether or not you agree 

with “Silent Cal” Coolidge’s politics, his 

comments about persistence have universal 

application, and especially apply to successful 

entrepreneurs. The dictionary defines 

entrepreneur as a person who organizes and 

manages any enterprise, especially a business, 

usually with considerable initiative and risk.

We all know stories about business owners 

who overcame criticism, inadequate funding, 

lack of support, technical problems, regulatory 

issues, and any number of obstacles that 

would stop lots of people in their tracks. The 

true entrepreneur presses on regardless of 

the difficulty at hand, keeping one eye on the 

obstacle, and one on the horizon, to where the 

dream of business ownership lives. 

The SBA has saluted the spirit of 

entrepreneurship since 1953, and today we 

remain committed to helping dreamers realize 

their dreams of owning their own business. 

Our mission continues to be helping small 

businesses start, grow and succeed. 

Whether you have just the germ of an idea, 

or are involved in a young—or old—small 

business, SBA has resources to help. This 

guide is designed to provide access to 

resources for counseling, capital, contracting/

procurement, marketing, and other aspects of 

business ownership. 

If you need information regarding SBA 

programs and services, or a resource speaker 

for a meeting or event, you can go to www.

sba.gov/al or call the Alabama District Office 

at 205-290-7101. 

Best wishes for every success!

Sincerely,

Thomas A. Todt

District Director of 

SBA’s Alabama District Office

Energy and persistence conquer all things. 

Benjamin Franklin

www.sba.gov/al

205-290-7101

ALABAMA

SBA Staff Listing

EXECUTIVE DIRECTION

Tom Todt

District Director

Ext. 263 

thomas.todt@sba.gov 

Raymond Hembree 

Deputy District Director

Ext. 224 

raymond.hembree@sba.gov

Bill Howell 

District Counsel

Ext. 231 william.howell@

sba.gov

Brent McMahan

Senior Area Manager

(AWS Mobile)

Paramount Office Center

1141 Montlimar Dr., 

Ste. 1007

Mobile, AL 36609

251-544-7401 

brent.mcmahan@sba.gov

Also Lender Relations 

Inquiries for South Alabama

Business Development

8(a) Business Opportunity/

Small Disadvantaged 

Business Program, 

Government Contracting

Susan Baxter

Lead Business Opportunity 

Specialist 

Ext. 228 

susan.baxter@sba.gov

Elaine Dunlap

Business Opportunity 

Specialist/AO

Ext. 232 

d.dunlap@sba.gov

Carol Ann House

Business Opportunity 

Specialist 

Ext. 226 

carol.house@sba.gov 

Teresa Wilson

Business Opportunity 

Specialist/HUBZones

Ext. 230 

teresa.wilson@sba.gov

Pat Riley

District Support Assistant

Ext. 260 

patricia.riley@sba.gov

Surplus Property inquiries

Lender Relations

7a Loans, 504 Loans, 

Lender Agreements, 

Procedural Questions

L.D. Ralph

Lead Lender Relations 

Specialist

Ext. 237 

lafero.ralph@sba.gov

Also contact for Women’s 

Business Centers

Rod Perkins

Lender Relations Specialist

Ext. 227 

roderick.perkins@sba.gov

Also contact for Veteran’s 

Affairs

David Ramp

Lender Relations Specialist/

PIO

Ext. 247 

david.ramp@sba.gov

8 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al
A Birmingham, Alabama company led by 

husband and wife team Paul and Tammy 

McClure, whose dedication and efforts 

are directly responsible for the company’s 

leadership in its market segment in the 

packaging business, where they now serve over 

100 customers in over 40 countries since they 

purchased the company in 2008. Exports have 

steadily grown since 2008 and now account for 

approximately 70% of total sales. 

Gilpin and Company, Inc. specializes in 

serving customer needs in the food packaging 

and processing industry with a fast-growing, 

consumer-friendly everyday product. If you 

have opened a can or food container with a 

“pop-top lid”, or easy-open ends as it is called 

in the industry, you have probably used Gilpin’s 

product. Gilpin is a market leader in this easyopen ends segment of the consumer packaging 

industry.

The firm serves its customers by buying 

and supplying specialized easy-open lids 

to producers of cans/containers and to 

manufacturers and processors in the beverage, 

food products and pet food industries around 

the world. Gilpin’s easy-open ends are used 

on metal cans, rigid paper canisters and 

plastic containers for packaging items such as 

beverages, soups, fruits and vegetables, milk 

powder, coffee, nuts, snack foods, cereal, dairy, 

seafood and juices.

The original Gilpin and Company was founded 

in 1963 by Sandy Gilpin and specialized in the 

packaging industry and developed a following 

of customers in many countries around the 

world. Today, the easy-open ends are clearly one 

of the fastest growing segments of packaging. 

Gilpin’s advantage is that their focus is not on 

manufacturing but on the marketing and sales 

of easy-open ends to container producers and to 

end users – the food processors. 

Paul and Tammy McClure purchased the 

company and moved the firm to Birmingham. 

To serve local customer needs around the 

world they have established local offices on 

every major continent and manage that sales 

network from Birmingham. In addition, they 

often resolve logistics and import-export issues 

for their customers around the world by serving 

in the role of middleman and problem solver. 

We Welcome Your 

Questions

For extra copies of this publication or 

questions please contact:

Alabama District Office

801 Tom Martin Drive, Suite 201

Birmingham, AL 35211

Tel: 205-290-7101 Fax: 205-290-7404 

Website: www.sba.gov/al

THE ALABAMA DISTRICT OFFICE

The Alabama District Office is 

responsible for the delivery of SBA’s 

many programs and services. The District 

Director is Thomas Todt. The District 

Office is located at 801 Tom Martin Drive, 

Suite 201, Birmingham, AL 35211. Office 

hours are from 8:00 AM until 4:30 PM, 

Monday through Friday.

The SBA also has an Alternate Work Site 

located in Mobile, AL. Brent McMahan is 

Senior Area Manager for the Mobile area.

Mr. McMahan can be reached at 

251-544-7401 or via email at:

brent.mcmahan@sba.gov.

CONTACTING THE ALABAMA 

DISTRICT OFFICE

For program and service information, 

please contact the Alabama District Office 

at 205-290-7101. 

SERVICES AVAILABLE

Financial assistance for new or existing 

businesses through guaranteed loans 

made by area bank and non-bank 

lenders.

Free counseling, advice and information 

on starting, better operating or expanding 

a small business through the Service 

Corps of Retired Executives (SCORE), 

Small Business Development Centers 

(SBDC) and Women’s Business Centers 

(WBC). They also conduct training events 

throughout the district - some require a 

nominal registration fee.

Assistance to businesses owned and 

controlled by socially and economically 

disadvantaged individuals through the 

Business Development Program.

A Women’s Business Ownership 

Representative is available to assist 

women business owners. For more 

information go to the website: www.

cawbc.org or www.onlinewbc.org.

Special loan programs are available for 

businesses involved in international 

trade.

For information concerning an existing 

SBA Disaster loan, please contact the 

Birmingham Disaster Home Loan 

Servicing Center at 800-736-6048 or 

205-290-7141. 

 

Doing Business in Alabama

The SBA helps business 

owners grow and expand 

their businesses every day.

SUCCESS STORY

Alabama Small Business 

Exporter of the Year

Gilpin and Company, Inc.

Paul D. McClure

President and CEO

Tamla T. McClure, CFO

www.gilpinezo.com

continued on page 40

Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 9
10 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

ALABAMA SBDC NETWORK

William Cummins 

Executive State Director of the 

Alabama SBDC Network

Jan Haggerty, Project Director

Central Alabama Women’s 

Business Center

Hutch Cole 

SCORE Director

Joanne Randolph 

Executive Director of the Women’s 

Business Center of North Alabama

Kathryn Cariglino 

Executive Director of the

Women’s Business Center, Inc.

Alabama Small Business Resource Partners

l

s

n

- SBDC

- WBC

- SCORE

s
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 11

Every year, the U.S. Small 

Business Administration 

and its nationwide network 

of resource partners help 

millions of potential and 

existing small business owners start, 

grow and succeed.

Whether your target market is global 

or just your neighborhood, the SBA and 

its resource partners can help at every 

stage of turning your entrepreneurial 

dream into a thriving business.

If you’re just starting, the SBA and 

its resources can help you with loans 

and business management skills. If 

you’re already in business, you can use 

the SBA’s resources to help manage 

and expand your business, obtain 

government contracts, recover from 

disaster, find foreign markets, and 

make your voice heard in the federal 

government.

You can access SBA information 

online 24 hours a day at www.sba.

gov or visit one of our local offices for 

assistance.

SBA’S RESOURCE 

PARTNERS

In addition to our district offices which 

serve every state and territory, SBA 

works with a variety of local resource 

partners to meet your small business 

needs. These professionals can help 

with writing a formal business plan, 

locating sources of financial assistance, 

managing and expanding your business, 

finding opportunities to sell your goods 

or services to the government, and 

recovering from disaster. To find your 

local district office or SBA resource 

partner, visit www.sba.gov/sba-direct. 

SCORE

SCORE is a national network of 

nearly14,000 entrepreneurs, business 

leaders and executives who volunteer as 

mentors to America’s small businesses. 

SCORE has helped more than 8.5 

million entrepreneurs nationwide by 

leveraging decades of expertise from 

seasoned business professionals to 

help entrepreneurs start businesses, 

grow companies and create jobs in local 

communities. 

With more than 370 offices 

throughout the country, SCORE 

matches you with a mentor whose 

personality, experience, and skills 

are a good fit for your business needs. 

Whether you are a start-up business 

or growing company, SCORE mentors 

offer free and confidential advice. As 

members of your community, SCORE 

mentors understand local business 

licensing rules, economic conditions 

and lending standards. SCORE also 

offers local small business workshops 

at modest fees on popular topics such 

as increasing sales, managing cash flow 

and marketing your business.

 

You can count on SCORE as a trusted 

resource to offer in-depth mentoring, 

sound advice and guidance, and tools 

and resources that can help you succeed 

as a business owner. In fiscal year 

2010, SCORE served over 400,000 

clients through individual counseling, 

workshops and online sessions by 

leveraging the expertise and experience 

of nearly 14,000 business mentors. 

For 24/7 access to advice and online 

webinars on topics such as starting, 

growing, marketing and e-commerce for 

small business, visit SCORE online at 

www.score.org or call 1-800-624-0245 for 

the office nearest you. 

Tuscaloosa Chapter 0407

c/o Chamber of Commerce of West Alabama

2200 University Blvd./P.O. Box 020410

Tuscaloosa, AL 35402

205-758-7588 • 205-391-0565 Fax

www.Tuscaloosa.SCOREChapter.org

Mobile Chapter 0457

c/o Mobile Chamber of Commerce

P.O. Box 2187

Mobile, AL 36601

251-431-8614 • 251-431-8646 Fax

www.Mobile.SCOREChapter.org

Alabama Capitol Chapter 0598

c/o Montgomery Chamber of Commerce

600 S. Court St.

Montgomery, AL 36014

334-240-6868 • 334-240-6869 Fax

www.Montgomery.SCOREChapter.org

Baldwin County Chapter 0630

University of South Alabama, 

Fairhope Campus

111 St. James Place

Fairhope, AL 36532

251-928-6388 • 251-928-1415 Fax

www.Baldwin.SCOREChapter.org

Anniston SCORE Chapter 0638

1400 Commerce Blvd., SCORE Ste. 20

Anniston, AL 36207

256-241-6111 • 256-831-8728 Fax

www.Anniston.SCOREChapter.org

COUNSELING

Getting Help to Start Up, Market and Manage Your Business

• You get to be your own boss.

• Hard work and long hours directly benefit you, 

rather than increasing profits for someone else.

• Earnings and growth potential are unlimited.

• Running a business will provide endless

variety, challenges and opportunities to learn.

ON THE UPSIDE

It’s true, there are a lot of 

reasons not to start your 

own business. But for the 

right person, the advantages 

of business ownership far 

outweigh the risks.

COUNSELING
12 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

Birmingham SCORE Chapter

1731 First Ave. N., Ste. 200

Birmingham, AL 35203

205-264-8425

www.Birmingham.SCOREChapter.org

Huntsville SCORE Chapter

University of Alabama Huntsville

College of Business

301 Sparkman Dr., Ste. 126G

Huntsville, AL 35899

256-824-6910

www.Huntsville.SCOREchapter.org 

SMALL BUSINESS 

DEVELOPMENT CENTERS

The Small Business Development 

Center (SBDC) program has been vital 

to SBA’s entrepreneurial outreach for 

more than 30 years. It has become one of 

the largest professional small business 

management and technical assistance 

networks in the nation. With nearly 

900 locations across the country, SBDCs 

offer free one-on-one expert business 

advice and low-cost training by qualified 

small business professionals to existing 

and future entrepreneurs. 

The SBDC program includes special 

focus areas such as, green business 

technology, disaster recovery and 

preparedness, import and export 

assistance, veterans assistance, 

procurement assistance, electronic 

commerce, technology transfer and 

regulatory compliance. A number 

of SBDC networks have specialized 

programs or centers dedicated to these 

focus areas. 

During the past thirty years, through 

a unique mix of federal, state and 

private sector resources, the SBDC 

program has increased its return on 

investment. Through federal grants, 

SBDCs in every state and territory 

provide the foundation for the economic 

growth of small businesses. These small 

businesses, in turn, advance local and 

regional economic development through 

the generation of business revenues, job 

creation and job retention. This return 

on investment is demonstrated by fiscal 

2010 outcomes, where SBDCs:

• Assisted more than 13,600 

entrepreneurs to start new businesses 

– an estimated 37 new business starts 

per day.

• Provided counseling services to over 

107,000 emerging entrepreneurs and 

nearly 102,000 existing businesses. 

• Provided training services to 

approximately 380,000 clients. 

The efficacy of the SBDC program 

has been validated by a nationwide 

impact study. Of the clients surveyed, 

more than 80 percent reported that the 

business assistance they received from 

the SBDC counselor was worthwhile. 

Similarly, more than 50 percent reported 

that SBDC guidance was beneficial in 

making the decision to start a business. 

More than 40 percent of long-term 

clients, those receiving 5 hours or more 

of counseling, reported an increase 

in sales and 38 percent reported an 

increase in profit margins.

For information on the SBDC 

program, visit www.sba.gov/sbdc. To 

schedule an appointment for counseling 

or to see the seminar schedule, contact 

the center nearest you from the list 

below.

Alabama SBDC Network

State Office

William Cummins, Executive State Director

500 Colonial Dr., 201 Bidgood Hall

The University of Alabama 

Tuscaloosa, AL 35487

205-348-1582 • 205-348-6974 Fax

asbdc@ua.edu

www.ASBDC.org

AL Procurement Technical Assistance 

Program

Rick Howell, Program Manager

500 Colonial Dr., 201 Bidgood Hall

The University of Alabama 

Tuscaloosa, AL 35487

205-348-1687 • 205-348-6974 Fax

ptac@ua.edu

www.AL-PTAC.org

Alabama International Trade Center

Brian Davis, Director

500 Colonial Dr., 201 Bidgood Hall

The University of Alabama 

Tuscaloosa, AL 35487

205-348-7621 • 205-348-6974 Fax

aitc@ua.edu

www.aitc.ua.edu

SBDC Capital Access Program

Tye Warren, Director

500 Colonial Dr., 201 Bidgood Hall

The University of Alabama 

Tuscaloosa, AL 35487

205-348-1687 • 205-348-6974 Fax

asbdc@ua.edu 

SBDC at Alabama State University

Lorenza Patrick, Director

915 S. Jackson St. 

College of Business Administration

Montgomery, AL 36104

334-229-4138 • 334-269-1102 Fax

lpatrick@alasu.edu

SBDC at Auburn University

Jackie DiPofi, Director

College of Business

114 Lowder Bldg.

Auburn, AL 36849 

334-844-4220 • 334-844-4268 Fax

dipofja@auburn.edu

SBDC of Greater Birmingham Area

Carol DeCastra & Joe Primm, Senior 

Counselors

Innovation Depot

1500 1st Ave. N.

Birmingham, AL 35203

205-348-1582 • 205-348-6974 Fax

asbdc@ua.edu 

SBDC at Jacksonville State University

Pat Shaddix, Director

700 Pelham Rd., 114 Merrill Hall 

College of Business

Jacksonville, AL 36265 

256-782-5271 • 256-782-5179 Fax

pshaddix@jsu.edu

SBDC at Troy University

Sandra Lucas, Director

100 Industrial Blvd.

Sorrell College of Business 

Troy, AL 36081 

334-674-2425 • 334-670-9740 Fax

slucas@troy.edu

SBDC at the University of Alabama 

500 Colonial Dr., 201 Bidgood Hall

College of Commerce and Business 

Administration

Tuscaloosa, AL 35487

205-348-1582 • 205-348-6974 Fax

asdbc@ua.edu 

SBDC at the University of Alabama 

Huntsville

301 Sparkman Dr., BAB Ste. 126

College of Business Administration

Huntsville, AL 35899

256-824-6422 • 256-824-4339 Fax

sbdc@uah.edu 

SBDC at the University of North Alabama 

David Black, Director

148 Keller Hall, One Harrison Plaza 

College of Business 

Florence, AL 35632 

256-765-4629 • 256-765-4813 Fax

dblack@una.edu

SBDC at the University of South Alabama 

Thomas Tucker, Director

Mitchell College of Business, Rm. 118

307 University Blvd.

Mobile, AL 36608

251-460-6004 • 251-460-6246 Fax

sbdc@usouthal.edu 

SBDC at the University of West Alabama 

Donald Mills, Director

Guy Hunt Technical Complex, R122 

Station 35 

Livingston, AL 35470 

205-652-3734 • 205-652-3516 Fax

dmills@uwa.edu
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 13

INTERNATIONAL TRADE RESOURCES

In Alabama 

Alabama Development Office –Trade 

Division

Hilda Lockhart, Director

401 Adams Ave., 6th Fl.

Montgomery, AL 36130-4106

334-242-0442 • 334-353-1330 Fax

www.ado.alabama.gov/

trade.info@ado.alabama.gov 

Alabama International Trade Center

Brian Davis, Director

500 Colonial Dr., 201 Bidgood Hall

The University of Alabama

Tuscaloosa, AL 35487

205-348-7621 • 205-348-6974 Fax

aitc@ua.edu

http://ww.aitc.ua.edu

Birmingham U.S. Export Assistance 

Center

Nelda Segars, Senior Trade Specialist

U.S. Department of Commerce

950 22nd St. N., Ste. 773

Birmingham, AL 35203-5309

205-731-1331 • 205-731-0076 Fax

Office.Birmingham@trade.gov 

www.export.gov/alabama/

WOMEN’S BUSINESS CENTERS

The SBA’s Women Business 

Center (WBC) program is a network 

of approximately 110 communitybased centers which provide business 

training, coaching, mentoring and 

other assistance geared toward women, 

particularly those who are socially and 

economically disadvantaged. WBCs 

are located in nearly every state and 

U.S. territory and are partially funded 

through a cooperative agreement with 

the SBA. 

To meet the needs of women 

entrepreneurs, WBCs offer services 

at convenient times and locations, 

including weekends. Most WBCs are 

located at non-profit host organizations 

that offer a wide variety of services in 

addition to the services provided by the 

WBC. Many of the WBCs also offer 

training and counseling and provide 

materials in different languages in 

order to meet the diverse needs of the 

communities they serve. 

WBCs often deliver their services 

through long term training or group 

counseling, both of which have shown to 

be effective. WBC training courses are 

often free or offered at a small fee. Some 

centers will also offer scholarships based 

on the client’s needs.

While most WBCs are physically 

located in one designated location, a 

number of WBCs also provide courses 

and counseling via the Internet, mobile 

classrooms and satellite locations. 

WBCs have a track record of success. 

In fiscal year 2010, the WBC program 

counseled and trained more than 

160,000 clients, creating local economic 

growth and vitality. Of the WBC clients 

who have received 3 or more hours of 

counseling, 15 percent indicated that 

the services led to hiring new staff, 34 

percent indicated that the services led 

to an increased profit margin, and 47 

percent indicated that the services led to 

an increase in sales.

In addition, the WBC program has 

taken a lead in preparing women 

business owners to apply for the 

Women-Owned Small Business 

(WOSB) Federal Contract program 

that authorizes contracting officers to 

set aside certain federal contracts for 

eligible women-owned small businesses 

or economically disadvantaged womenowned small businesses. For more 

information on the program, visit 

www.sba.gov/wosb. 

To find the nearest SBA WBC, visit 

www.sba.gov/women.

EMERGING LEADERS

SBA’s Emerging Leaders initiative 

is currently hosted in 27 markets 

across the country using a national 

demonstrated research-based 

curriculum that supports the growth 

and development of small firms that 

have substantial potential for expansion 

and community impact. A competitive 

selection process results in firm 

executives participating in high-level 

training and peer-networking sessions 

led by professional instructors and local 

economic development organizations. 

Post-training, social and economic 

impact results from responding 

executives who attended the 2008 – 

2010 training classes indicate: 

• More than half of participating 

businesses reported an increase in 

revenue, with an average revenue of 

$1,879,266.

• Participating businesses averaged 

$2 million in revenue, with new 

cumulative financing of $7.2 million 

secured in 2010. 

• Nearly half of the participants secured 

federal, state, local and tribal contracts 

with a cumulative total of $287 

million. 

• Approximately half of the participants 

have hired new workers, creating 275 

new jobs in 2010.

• All participants were introduced and 

trained on becoming SBA 8(a) certified 

firms; nearly 25 percent of respondents 

are currently certified as SBA 8(a) 

firms, while other participants 

reported a focused intention on 

applying to the 8(a) program. 

• Nearly 50 percent of participating 

respondents were female executives 

and 70 percent were minority business 

executives.

• 85 percent of responding executives 

were Satisfied or Very Satisfied with 

the overall training series and results.

To find out more about this executivelevel training opportunity, please 

visit www.sba.gov/e200 for host cities, 

training schedules, and selection 

criteria.

SBA’S ONLINE TOOLS AND 

TRAINING

SBA’s Small Business Training 

Network is a virtual campus complete 

with free online courses, workshops, 

podcasts, learning tools and businessreadiness assessments.

Key Features of the Small Business 

Training Network: 

 Training is available anytime and 

anywhere—all you need is a computer 

with Internet access.

• More than 30 free online courses and 

workshops are available.

• Templates and samples to get your 

business planning underway. 

• Online, interactive assessment tools 

are featured and used to direct clients 

to appropriate training.

Course topics include a financial 

primer keyed around SBA’s loanguarantee programs; a course on 

exporting; courses for veterans and 

women seeking federal contracting 

opportunities; and an online library 

of podcasts, business publications, 

templates and articles.

Find these free resources at 

www.sba.gov/training.
14 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

SBA also offers a number of programs 

specifically designed to meet the needs 

in the underserved communities.

WOMEN BUSINESS OWNERS

Women entrepreneurs are changing 

the face of America’s economy. In the 

1970s, women owned less than five 

percent of the nation’s businesses. 

Today, they are majority owners 

of about a third of the nation’s small 

businesses and are at least equal owners 

of about half of all small businesses. 

SBA serves women entrepreneurs 

nationwide through its various programs 

and services, some of which are designed 

especially for women. 

The SBA’s Office of Women’s Business 

Ownership (OWBO) serves as an 

advocate for women-owned businesses. 

OWBO oversees a nationwide network 

of 110 women’s business centers that 

provide business training, counseling 

and mentoring geared specifically to 

women, especially those who are socially 

and economically disadvantaged. The 

program is a public-private partnership 

with locally-based nonprofits. 

Women’s Business Centers serve 

a wide variety of geographic areas, 

population densities, and economic 

environments, including urban, 

suburban, and rural. Local economies 

vary from depressed to thriving, and 

range from metropolitan areas to 

entire states. Each Women’s Business 

Center tailors its services to the needs 

of its individual community, but all 

offer a variety of innovative programs, 

often including courses in different 

languages. They provide training in 

finance, management, marketing, and 

the Internet, as well as access to all of 

the SBA’s financial and procurement 

assistance programs.

Central Alabama 

Women’s Business Center 

(A project of the Schlarb Foundation for 

Women Entrepreneurs)

2 N. 20th St., Ste. 830

Birmingham, AL 35203 

205-453-0249 • 205-453-0253 Fax

866-252-5787 Toll Free

Jan Haggerty, Project Director

jan@cawbc.org

www.cawbc.org

Serves Blount, Jefferson, Shelby, St. Clair, 

Talladega, Tuscaloosa and Walker Counties.

Women’s Business Center 

of Southern Alabama 

1301 Azalea Rd., Ste. 201A

Mobile, AL 36693

251-660-2725 or 800-378-7461 

251-660-8854 Fax

Sherman Blosser, Executive Director 

www.womenbiz.biz 

Serves Mobile and Baldwin Counties.

Bizmobile

1301 Azalea Rd., Ste. 201A

Mobile, AL 36693

251-660-2725

Sylvia Browder, Director

www.womenbiz.biz

Serves: Washington, Clarke, Escambia, 

Conecuh and Monroe Counties.

Women’s Business Center 

of North Alabama

225 Church St.

Huntsville, AL 35801

Joanne Randolph, Executive Director

256-535-2038 • 256-535-2015 Fax

info@wbcna.org

www.wbcna.org

Serves North Alabama Counties.

Other Women’s Programs

U.S. Women’s 

Chamber of Commerce

www.sblink.us/html/uswcc.aspx

National Association of Women Business 

Owners (NAWBO) – Birmingham

P.O. Box 55414

Birmingham, AL 35255-5414

Voice Message Center: 

205-970-6316 ext. 324

ruwena_healy@yahoo.com

www.nawbobirmingham.org

Women’s Business Council

c/o Huntsville/Madison County 

Chamber of Commerce

P.O. Box 804

Huntsville, AL 35804

256-535-2013

jjeffers@hsvchamber.org 

Women’s Economic Development Council

www.wedc-online.com

info@wedc-online.com

Women’s Economic Development 

Foundation

www.wedcfoundation.org

CENTER FOR FAITH-BASED AND 

NEIGHBORHOOD PARTNERSHIPS 

Faith-based and Neighborhood 

Partnerships know their communities, 

and they have earned their people’s 

trust. Because of their credibility, 

they are uniquely positioned to build 

awareness of programs that encourage 

entrepreneurship, economic growth and 

job creation. 

SBA is committed to reaching 

out to faith based and community 

organizations that are eligible to 

participate in the agency’s programs by 

informing their congregants, members 

and neighbors about SBA’s programs. 

In particular, many faith-based and 

community non-profit organizations 

can provide a local financing option 

for entrepreneurs by becoming SBA 

Microloan Intermediaries. An SBA 

Microloan Intermediary often acts as 

a bank for entrepreneurs and small 

businesses that might otherwise be 

unable to find access to capital.

VETERANS AND RESERVISTS 

BUSINESS DEVELOPMENT 

To ensure that veterans, servicedisabled veterans and Reserve and 

National Guard member entrepreneurs 

receive special consideration in all of 

SBA’s entrepreneurial programs and 

resources, the SBA has established 

an Office of Veterans Business 

Development (OVBD). Each year, 

OVBD reaches thousands of veterans, 

Reserve Component members, 

transitioning service members and 

others who are – or who want to 

become – entrepreneurs and small 

business owners. OVBD develops and 

distributes informational materials for 

entrepreneurship such as the Veterans 

Business Resource Guide, VETGazette, 

and Getting Veterans Back to Work. In 

addition, there are 16 Veterans Business 

Outreach Centers strategically located 

throughout the country that provide 

both online and in-person training, 

counseling, mentoring, workshops, 

referrals, and more. Each of the SBA’s 

68 District Offices also has a designated 

veteran’s business development officer. 

REACHING UNDERSERVED COMMUNITIES
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 15

The SBA offers special assistance for 

small businesses owned by activated 

Reserve and National Guard members. 

Any self-employed Reserve or Guard 

member with an existing SBA loan can 

request from their SBA lender or SBA 

district office loan payment deferrals, 

interest rate reductions and other relief 

after they receive their activation orders. 

In addition, the SBA offers special 

low-interest-rate financing to small 

businesses when an owner or essential 

employee is called to active duty. The 

Military Reservist Economic Injury 

Disaster Loan Program (MREIDL) 

provides loans up to $2 million to eligible 

small businesses to cover operating costs 

that cannot be met due to the loss of an 

essential employee called to active duty 

in the Reserves or National Guard. 

Among the SBA’s unique services for 

veterans are: an Entrepreneurship Boot 

Camp for Veterans with Disabilities in 

partnership with 6 top U.S. universities 

(www.whitman.syr.edu/ebv), a program 

to reach women veteran-entrepreneurs 

(www.whitman.syr.edu/vwise), and a 

program for Reserve Component family 

members called Operation Endure 

and Grow (www.whitman.syr.edu/

endureandgrow).

For more information about small 

business lending programs for veteran 

business owners and Reserve or 

Guard members who are activated, 

including Patriot Express, microloans, 

and Advantage loans, see the section 

on Access to Capital. To learn more 

about the Veterans Business Outreach 

program or find the nearest SBA VBOC, 

visit the SBA Web site at 

www.sba.gov/vets.

NATIVE AMERICAN BUSINESS 

DEVELOPMENT

The SBA Office of Native American 

Affairs (ONAA) ensures American 

Indians, Alaska Natives and Native 

Hawaiians seeking to create, develop 

and expand small businesses have 

full access to the necessary business 

development and expansion tools 

available through the agency’s 

entrepreneurial development, lending, 

and contracting programs. ONAA 

provides a network of training (including 

the online tool “Small Business 

Primer: Strategies for Growth”) and 

counseling services and engages in 

numerous outreach activities, such as 

tribal consultations, development and 

distribution of educational materials, 

attendance and participation in 

economic development events and 

assisting these small businesses with 

SBA programs.

More information is at 

www.sba.gov/naa.

REACHING UNDERSERVED COMMUNITIES
16 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

Most new business owners who 

succeed have planned for every phase 

of their success. Thomas Edison, the 

great American inventor, once said, 

“Genius is 1 percent inspiration and 

99 percent perspiration.” That same 

philosophy also applies to starting a 

business.

First, you’ll need to generate a little 

bit of perspiration deciding whether 

you’re the right type of person to start 

your own business.

IS ENTREPRENEURSHIP FOR 

YOU?

There is simply no way to eliminate 

all the risks associated with starting 

a small business, but you can improve 

your chances of success with good 

planning, preparation, and insight. 

Start by evaluating your strengths 

and weaknesses as a potential owner 

and manager of a small business. 

Carefully consider each of the following 

questions:

• Are you a self-starter? It will be 

entirely up to you to develop projects, 

organize your time, and follow 

through on details.

• How well do you get along with 

different personalities? Business 

owners need to develop working 

relationships with a variety of 

people including customers, vendors, 

staff, bankers, employees, and 

professionals such as lawyers, 

accountants, or consultants. Can 

you deal with a demanding client, 

an unreliable vendor, or a cranky 

receptionist if your business interests 

demand it?

• How good are you at making 

decisions? Small business owners are 

required to make decisions constantly 

– often quickly, independently, and 

under pressure.

• Do you have the physical and 

emotional stamina to run a 

business? Business ownership can 

be exciting, but it’s also a lot of work. 

Can you face six or seven 12–hour 

workdays every week?

• How well do you plan and 

organize? Research indicates that 

poor planning is responsible for most 

business failures. Good organization 

— of financials, inventory, schedules, 

and production — can help you avoid 

many pitfalls.

• Is your drive strong enough?

Running a business can wear you 

down emotionally. Some business 

owners burn out quickly from having 

to carry all the responsibility for the 

success of their business on their 

own shoulders. Strong motivation 

will help you survive slowdowns and 

periods of burnout.

• How will the business affect 

your family? The first few years of 

business start-up can be hard on 

family life. It’s important for family 

members to know what to expect 

and for you to be able to trust that 

they will support you during this 

time. There also may be financial 

difficulties until the business becomes 

profitable, which could take months 

or years. You may have to adjust to a 

lower standard of living or put family 

assets at risk.

Once you’ve answered those 

questions, you should consider what 

type of business you want to start. 

Businesses can include franchises, 

at-home businesses, online businesses, 

brick-and-mortar stores or any 

combination of those.

FRANCHISING

There are more than 3,000 business 

franchises. The challenge is to decide 

on one that both interests you and is 

a good investment. Many franchising 

experts suggest that you comparison 

shop by looking at multiple franchise 

opportunities before deciding on the 

one that’s right for you.

Some of the things you should 

look at when evaluating a franchise: 

historical profitability, effective 

financial management and other 

controls, a good image, integrity and 

commitment, and a successful industry.

In the simplest form of franchising, 

while you own the business, its 

operation is governed by the terms of 

the franchise agreement. For many, 

this is the chief benefit for franchising. 

You are able to capitalize on a business 

format, trade name, trademark and/

or support system provided by the 

franchisor. But you operate as an 

independent contractor with the ability 

to make a profit or sustain a loss 

commensurate with your ownership. 

If you are concerned about starting 

an independent business venture, then 

franchising may be an option for you. 

Remember that hard work, dedication 

and sacrifice are key elements in 

the success of any business venture, 

including a franchise.

For more information visit 

www.sba.gov/franchise.

HOME-BASED BUSINESSES

Going to work used to mean 

traveling from home to a plant, store or 

office. Today, many people do some or 

all their work at home. 

Getting Started

Before diving headfirst into a homebased business, you must know why 

you are doing it. To succeed, your 

business must be based on something 

greater than a desire to be your 

own boss. You must plan and make 

improvements and adjustments along 

the road.

Working under the same roof where 

your family lives may not prove to be 

as easy as it seems. One suggestion is 

to set up a separate office in your home 

to create a professional environment. 

Ask yourself these questions:

• Can I switch from home 

responsibilities to business work 

easily?

• Do I have the self-discipline to 

maintain schedules while at home?

• Can I deal with the isolation of 

working from home?

Legal Requirements

A home-based business is subject to 

many of the same laws and regulations 

affecting other businesses. 

Some general areas include:

• Zoning regulations. If your business 

operates in violation of them, you 

could be fined or shut down.

• Product restrictions. Certain 

products cannot be produced in the 

home. Most states outlaw home 

production of fireworks, drugs, 

poisons, explosives, sanitary or 

medical products and toys. Some 

states also prohibit home-based 

businesses from making food, drink 

or clothing.

Be sure to consult an attorney and 

your local and state departments 

of state, labor and health to find 

out which laws and regulations will 

affect your business. Additionally, 

check on registration and accounting 

requirements needed to open your 

home-based business. You may need 

a work certificate or license from the 

state. Your business name may need 

to be registered with the state. A 

separate business telephone and bank 

account are good business practices.

Also remember, if you have 

employees you are responsible for 

withholding income and socialsecurity taxes, and for complying with 

minimum wage and employee health 

and safety laws.

ARE YOU RIGHT FOR SMALL BUSINESS OWNERSHIP?
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 17

WRITING A BUSINESS PLAN

After you’ve thought about what 

type of business you want, the 

next step is to develop a business 

plan. Think of the business plan 

as a roadmap with milestones 

for the business. It begins as a 

pre-assessment tool to determine 

profitability and market share, then 

expands as an in-business assessment 

tool to determine success, obtain 

financing and determine repayment 

ability, among other factors.

Creating a comprehensive business 

plan can be a long process, and you 

need good advice. The SBA and its 

resource partners, including Small 

Business Development Centers, 

Women’s Business Centers, Veterans 

Business Outreach Centers, and 

SCORE, have the expertise to help you 

craft a winning business plan. SBA 

also offers online templates to get you 

started. 

In general, a good business plan 

contains:

Introduction

• Give a detailed description of the 

business and its goals.

• Discuss ownership of the business 

and its legal structure.

• List the skills and experience you 

bring to the business.

• Discuss the advantages you and your 

business have over competitors.

Marketing

• Discuss the products and services 

your company will offer.

• Identify customer demand for your 

products and services.

• Identify your market, its size and 

locations.

• Explain how your products and 

services will be advertised and 

marketed.

• Explain your pricing strategy.

Financial Management

• Develop an expected return on 

investment and monthly cash flow for 

the first year.

• 

Provide projected income statements, 

and balance sheets for a two-year 

period.

• Discuss your break-even point.

• Explain your personal balance sheet 

and method of compensation.

• Discuss who will maintain your 

accounting records and how they will 

be kept.

• Provide “what if” statements 

addressing alternative approaches to 

potential problems.

Operations

• Explain how the business will be 

managed day-to-day.

• Discuss hiring and personnel 

procedures.

• Discuss insurance, lease or rent 

agreements, and issues pertinent to 

your business.

• Account for the equipment necessary 

to produce your goods or services.

• Account for production and delivery 

of products and services.

Concluding Statement

Summarize your business goals 

and objectives and express your 

commitment to the success of your 

business. Once you have completed 

your business plan, review it with 

a friend or business associate and 

professional business counselor 

like SCORE, WBC or SBDC 

representatives, SBA district office 

business development specialists 

or veterans business development 

specialists.

Remember, the business plan is a 

flexible document that should change 

as your business grows.
18 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

Many entrepreneurs need 

financial resources to start 

or expand a small business 

themselves and must 

combine what they have 

with other sources of financing. These 

sources can include family and friends, 

venture-capital financing, and business 

loans. 

This section of the Small Business 

Resource guide discusses SBA’s primary 

business loan and equity financing 

programs. These are: the 7(a) Loan 

Program, the Certified Development 

Company or 504 Loan Program, the 

Microloan Program and the Small 

Business Investment Company 

Program. The distinguishing features 

for these programs are the total dollar 

amounts that can be borrowed, the type 

of lenders who can provide these loans, 

the uses for the loan proceeds, and the 

terms placed on the borrower. 

Note: The SBA does not offer grants 

to individual business owners to start or 

grow a business.

SBA BUSINESS LOANS

If you are contemplating a business 

loan, familiarize yourself with the 

SBA’s business loan programs to see 

if they may be a viable option. Keep 

in mind the dollar amount you seek to 

borrow and how you want to use the 

loan proceeds. The three principal 

players in most of these programs are 

the applicant small business, the lender 

and the SBA. SBA guarantees a portion 

of the loan (except for Microloans). 

The business should have its business 

plan prepared before it applies for a 

loan. This plan should explain what 

resources will be needed to accomplish 

the desired business purpose including 

the associated costs, the applicants’ 

contribution, use of loan proceeds, 

collateral, and, most important, an 

explanation of how the business will 

be able to repay the loan in a timely 

manner. 

The lender will analyze the 

application to see if it meets the lender’s 

criteria and SBA’s requirements. SBA 

will look to the lender to do much, if not 

all, of the analysis before it provides 

its guaranty on the lender’s loan. In 

the case of microlenders SBA loans 

these intermediaries funds at favorable 

rates to re-lend to businesses with 

financing needs up to $50,000. The 

SBA’s business loan programs provide a 

key source of financing for viable small 

businesses that have real potential 

but cannot qualify for ong-term, stable 

financing.

7(a) LOAN PROGRAM

The 7(a) Loan program is the SBA’s 

primary business loan program. It 

is the agency’s most frequently used 

non-disaster financial assistance 

program because of its flexibility in 

loan structure, variety of loan proceed 

uses, and availability. The program has 

broad eligibility requirements and credit 

criteria to accommodate a wide range of 

financing needs.

The business loans that SBA 

guarantees do not come from the 

agency, but rather from banks and other 

approved lenders. The loans are funded 

by these organizations, and they make 

the decisions to approve or not approve 

the applicants’ requests.

The SBA guaranty reduces the 

lender’s risk of borrower non-payment. 

If the borrower defaults, the lender 

can request SBA to pay the lender that 

percentage of the outstanding balance 

guaranteed by SBA. This allows the 

lender to recover a portion from SBA of 

what it lent if the borrower can’t make 

the payments. The borrower is still 

obligated for the full amount. 

To qualify for an SBA loan, a small 

business must meet the lender’s 

criteria and the 7(a) requirements. In 

addition, the lender must certify that it 

would not provide this loan under the 

proposed terms and conditions unless 

it can obtain an SBA guaranty. If the 

SBA is going to provide a lender with 

a guaranty, the applicant must be 

eligible and creditworthy and the loan 

structured under conditions acceptable 

to SBA.

Percentage of Guaranties and Loan 

Maximums

The SBA only guarantees a portion of 

any particular loan so each loan will also 

have an unguaranteed portion, giving 

the lender a certain amount of exposure 

and risk on each loan. The percentage 

SBA guarantees depends on either the 

dollar amount or the program the lender 

uses to obtain its guaranty. For loans of 

$150,000 or less the SBA may guaranty 

as much as 85 percent and for loans 

over $150,000 the SBA can provide a 

guaranty of up to 75 percent. 

The maximum 7(a) loan amount 

is $5 million. (Loans made under 

the SBAExpress program, which is 

discussed later in this section, have a 50 

percent guaranty.)

Interest Rates and Fees

The actual interest rate for a 7(a) 

loan guaranteed by SBA is negotiated 

between the applicant and lender and 

subject to SBA maximums. Both fixed 

and variable interest rate structures 

are available. The maximum rate is 

comprised of two parts, a base rate and 

an allowable spread. There are three 

acceptable base rates (Wall Street 

Journal Prime*, London Interbank One 

Month Prime plus 3 percent, and an 

SBA Peg Rate). Lenders are allowed 

to add an additional spread to the base 

rate to arrive at the final rate. For 

loans with maturities of less than seven 

years, the maximum spread will be no 

CAPITAL

Financing Options to Start or Grow Your Business

CAPITAL
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 19

more than 2.25 percent. For loans with 

maturities of seven years or more, the 

maximum spread will be 2.75 percent. 

The spread on loans under $50,000 

and loans processed through Express 

procedures may be higher.

Loans guaranteed by SBA are 

assessed a guaranty fee. This fee is 

based on the loan’s maturity and the 

dollar amount guaranteed, not the 

total loan amount. The guaranty fee is 

generally paid by the borrower and can 

be included in the loan proceeds. 

On any loan with a maturity of one 

year or less, the fee is just 0.25 percent 

of the guaranteed portion of the loan. 

On loans with maturities of more than 

one year, the normal guaranty fee is 2 

percent of the SBA guaranteed portion 

on loans up to $150,000; 3 percent on 

loans over $150,000 but not more than 

$700,000; and 3.5 percent on loans over 

$700,000. There is also an additional 

fee of 0.25 percent on any guaranteed 

portion over $1 million. 

* All references to the prime rate refer 

to the base rate in effect on the first 

business day of the month the loan 

application is received by SBA.

7(a) Loan Maturities

SBA loan programs are generally 

intended to encourage longer term small 

business financing, but actual loan 

maturities are based on the ability to 

repay, the purpose of the loan proceeds 

and the useful life of the assets financed. 

However, maximum loan maturities 

have been established: 25 years for real 

estate; up to 10 years for equipment 

(depending on the useful life of the 

equipment); and, generally, up to seven 

years for working capital. Short-term 

loans and revolving lines of credit are 

also available through the SBA to help 

small businesses meet their short-term 

and cyclical working capital needs.

Structure

Most 7(a) loans are repaid with 

monthly payments of principal and 

interest. For fixed-rate loans the 

payments stay the same, whereas 

for variable rate loans the lender can 

re-establish the payment amount 

when the interest rates change or at 

other intervals, as negotiated with 

the borrower. Applicants can request 

that the lender establish the loan with 

interest-only payments during the 

start-up and expansion phases (when 

eligible) to allow the business time to 

generate income before it starts making 

full loan payments. Balloon payments 

or call provisions are not allowed on any 

7(a) loan. The lender may not charge a 

prepayment penalty if the loan is paid 

off before maturity, but the SBA will 

charge the borrower a prepayment fee 

if the loan has a maturity of 15 or more 

years and is pre-paid during the first 

three years.

Collateral

The SBA expects every 7(a) loan to 

be fully secured, but the SBA will not 

decline a request to guaranty a loan if 

the only unfavorable factor is insufficient 

collateral, provided all available 

collateral is offered. What these two 

policies mean is that every SBA loan 

is to be secured by all available assets 

(both business and personal) until the 

recovery value equals the loan amount 

or until all assets have been pledged 

to the extent that they are reasonably 

available. Personal guaranties are 

required from all the principal owners of 

the business. Liens on personal assets of 

the principals may be required. 
20 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

Eligibility

7(a) loan eligibility is based on four 

different factors. The first is size, as 

all loan recipients must be classified 

as “small” by SBA. The basic size 

standards are outlined below. A more 

in-depth listing of standards can be 

found at www.sba.gov/size.

SBA Size Standards:

• Manufacturing — from 500 to no more 

than 1,500 employees

• Wholesaling — No more than 100 

employees

• Services — from $4.5 million to no 

more than $35.5 million in average 

annual receipts

• Retailing — from $7 million to no more 

than $35.5 million in average annual 

receipts

• General construction — from $7 

million to no more than $33.5 million 

in average annual receipts

• Agriculture — from $750,000 to no 

more than $17.5 million in average 

annual receipts

There is also an alternate size 

standard that is based on a net worth 

($15 million or less) and average net 

income ($5 million or less). This new 

alternate makes more businesses eligible 

for SBA loans and applies to all SBA 

non-disaster loan programs. 

Nature of Business 

The second eligibility factor is based 

on the nature of the business and the 

process by which it generates income or 

the customers it serves. The SBA has 

general prohibitions against providing 

financial assistance to businesses 

involved in such activities as lending, 

speculating, passive investment, 

pyramid sales, loan packaging, 

presenting live performances of a 

prurient sexual nature, businesses 

involved in gambling and any illegal 

activity. 

The SBA also cannot offer loan 

guaranties to non-profit businesses, 

private clubs that limit membership on 

a basis other than capacity, businesses 

that promote a religion, businesses 

owned by individuals incarcerated or 

on probation or parole, municipalities, 

and situations where the business or 

its owners previously failed to repay 

a federal loan or federally assisted 

financing.

Use of Proceeds

The third eligibility factor is use of 

proceeds. 7(a) proceeds can be used 

to make leasehold improvements 

or purchase machinery; equipment; 

fixtures; supplies; or land and/or 

buildings that will be occupied by the 

business borrower. 

Documentation requirements may 

vary; contact your lender for the 

information you must supply. 

Common requirements include the 

following: 

• Purpose of the loan

• History of the business

• Financial statements for three years 

(existing businesses)

• Schedule of term debts (existing 

businesses)

• Aging of accounts receivable and 

payable (existing businesses)

• Projected opening-day balance sheet 

(new businesses)

• Lease details

• Amount of investment in the business 

by the owner(s)

• Projections of income, expenses and 

cash flow as well as an explanation of 

the assumptions used to develop these 

projections

• Personal financial statements on the 

principal owners

• Resume(s) of the principal owners and 

managers.

How the 7(a) Program Works

Applicants submit their loan 

application to a lender for the initial 

review. The lender will generally review 

the credit merits of the request before 

deciding if they will make the loan 

themselves or if they will need an SBA 

guaranty. If a guaranty is required, 

the lender will also review eligibility. 

The applicant should be prepared to 

complete some additional documents 

before the lender sends the request 

for guaranty to the SBA. Applicants 

who feel they need more help with the 

process should contact their local SBA 

district office or one of SBA’s resource 

partners for assistance. 

There are several ways a lender 

can apply for a 7(a) guaranty from 

SBA. The main differences between 

these methods are related to the 

documentation the lender provides, the 

amount of review the SBA conducts, 

the amount of the loan, and the lender’s 

responsibilities in case the loan defaults 

and the business’ assets must be 

liquidated. The methods are:

• Standard 7(a) Guaranty 

• Certified Lender Program 

• Preferred Lender Program 

• Rural Lender Advantage

• SBA Express

• Patriot Express

• Export Express

• Small Loan Advantage

• Community Advantage

For the Standard, Certified and 

Preferred methods, the applicant 

fills out SBA Form 4, and the lender 

completes SBA Form 4-1. When 

requests for guarantees are processed 

using Express or Advantage methods, 

the applicant uses more of the regular 

forms of the lender and just has a few 

federal forms to complete. When SBA 

receives a request that is processed 

through Standard or Certified 

Lender Program procedures, it either 

reanalyzes or reviews the lender’s 

eligibility and credit analysis before 

deciding to approve or reject. For 

requests processed through Preferred 

Lender Program or Express programs, 

the lender is delegated the authority to 

make the credit decision without SBA’s 

concurrences, which helps expedite the 

processing time.

In guaranteeing the loan, the SBA 

assures the lender that, in the event the 

borrower does not repay the loan, the 

government will reimburse the lending 

institution for a portion of its loss. By 

providing this guaranty, the SBA is 

able to help tens of thousands of small 

businesses every year get financing 

they might not otherwise obtain.

After SBA approval, the lender 

is notified that its loan has been 

guaranteed. The lender then will 

work with the applicant to make sure 

the terms and conditions are met 

before closing the loan, disbursing the 

funds, and assuming responsibility 

for collection and general servicing. 

The borrower makes monthly loan 

payments directly to the lender. As with 

any loan, the borrower is responsible for 

repaying the full amount of the loan in 

a timely manner.

What the SBA Looks for:

• Ability to repay the loan on time from 

the projected operating cash flow;

• Owners and operators who are of good 

character;

• Feasible business plan;

• Management expertise and 

commitment necessary for success;

• Sufficient funds, including the SBA 

guaranteed loan, to operate the 

business on a sound financial basis 

(for new businesses, this includes the 

resources to meet start-up expenses 

and the initial operating phase);

• Adequate equity invested in the 

business; and

• Sufficient collateral to secure the loan 

or all available collateral if the loan 

cannot be fully secured.

What To Take To The Lender
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 21

Proceeds can also be used to: 

• Expand or renovate facilities;

• Acquire machinery, equipment, 

furniture, fixtures and leasehold 

improvements; 

• Finance receivables and augment 

working capital;

• Finance seasonal lines of credit;

• Acquire businesses;

• Start up businesses; 

• Construct commercial buildings; and 

• Refinance existing debt under certain 

conditions.

SBA 7(a) loan proceeds cannot be used 

for the purpose of making investments. 

SBA proceeds cannot be used to 

provide funds to any of the owners 

of the business except for ordinary 

compensation for actual services 

provided.

Miscellaneous Factors

The fourth factor involves a variety 

of requirements such as SBA’s credit 

elsewhere test and utilization of 

personal assets requirements, where the 

business and its principal owners must 

use their own resources before getting a 

loan guaranteed by SBA. It also includes 

SBA’s anti-discrimination rules and 

restrictions on lending to agricultural 

enterprises because there are other 

agencies of the federal government with 

programs to fund such businesses.

Generally, SBA loans must meet the 

following criteria:

• Every loan must be for a sound 

business purpose;

• There must be sufficient invested 

equity in the business so it can operate 

on a sound financial basis;

• There must be a potential for longterm success;

• The owners must be of good character 

and reputation; and

• All loans must be so sound as to 

reasonably assure repayment.

For more information, go to 

www.sba.gov/apply.

SPECIAL PURPOSE 7(a) LOAN

PROGRAMS

The 7(a) program is the most flexible 

of SBA’s lending programs. The agency 

has created several variations to the 

basic 7(a) program to address the 

particular financing need of certain 

small businesses. These special purpose 

programs are not necessarily for all 

businesses but may be very useful 

to some small businesses. They are 

generally governed by the same rules, 

regulations, fees, interest rates, etc. as 

the regular 7(a) loan guaranty. Lenders 

can advise you of any variations.

SBAExpress

 The SBAExpress guaranty is available 

to lenders as a way to obtain a guaranty 

on smaller loans up to $350,000. 

The program authorizes selected, 

experienced lenders to use mostly their 

own forms, analysis and procedures 

to process, service and liquidate SBAguaranteed loans. The SBA guarantees 

up to 50 percent of an SBAExpress loan. 

Loans under $25,000 do not require 

collateral. The use of loan proceeds is 

the same as for any basic 7(a) loan. Like 

most 7(a) loans, maturities are usually 

five to seven years for working capital 

and up to 25 years for real estate or 

equipment. Revolving lines of credit are 

allowed for a maximum of seven years. 

SBA EXPRESS LENDERS IN ALABAMA:

BANCORPSOUTH

BANKTRUST

THE BANK OF TUSCALOOSA

BRANCH BANKING & TRUST (BB&T)

CB&T OF EAST ALABAMA

CB&T OF SOUTHEAST ALABAMA

CENTURY BANK

COASTAL BANK AND TRUST

COMMONWEALTH NATIONAL BANK

COMMUNITY BANK

MOBILE AND BALDWIN COUNTIES

BBVA/COMPASS BANK

EXCHANGE BANK OF ALABAMA 

 (ETOWAH AND SURROUNDING COUNTIES ONLY)

FIRST BANK OF JASPER

FIRST CITIZENS BANK

FIRST COMMERCIAL BANK

FIRST FINANCIAL BANK 

FIRST NATIONAL BANK OF BRUNDIDGE

FIRST NATIONAL BANK OF PULASKI

FRIEND BANK

M&F BANK

RBC BANK

REDSTONE FEDERAL CREDIT UNION

REGIONS BANK 

STATE BANK & TRUST COMPANY

STERLING BANK

UNITED BANK

WELLS FARGO

Patriot Express and Other Lending 

Programs For Veterans

The Patriot Express pilot loan 

initiative is for veterans and members 

of the military community wanting to 

establish or expand a small business. 

Eligible military community members 

include:

• Veterans;

• Service-disabled veterans;
22 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

• Active-duty servicemembers eligible 

for the military’s Transition Assistance 

Program;

• Reservists and National Guard 

members;

• Current spouses of any of the above, 

including any servicemember;

• The widowed spouse of a 

servicemember or veteran who died 

during service or of a service-connected 

disability.

The Patriot Express loan is offered 

by SBA’s nationwide network of 

private lenders and features the fastest 

turnaround time for loan approvals. 

Loans are available up to $500,000 and 

qualify for SBA’s maximum guaranty of 

85 percent for loans of $150,000 or less 

and 75 percent for loans over $150,000 

up to $500,000. For loans above 

$350,000, lenders are required to accept 

all available collateral.

The Patriot Express loan can be used 

for most business purposes, including 

start-up, expansion, equipment 

purchases, working capital, and 

inventory or business-occupied realestate purchases. 

Patriot Express loans feature SBA’s 

lowest interest rates for business loans, 

generally 2.25 percent to 4.75 percent 

over prime depending upon the size 

and maturity of the loan. Your local 

SBA district office will have a listing of 

Patriot Express lenders in your area. 

More information is available at 

www.sba.gov/patriotexpress.

Self-employed Reserve or Guard 

members with an existing SBA loan can 

request from their SBA lender or SBA 

district office, loan payment deferrals, 

interest rate reductions and other relief 

after they receive their activation orders. 

The SBA also offers special low-interestrate financing of up to $2 million when 

an owner or essential employee is called 

to active duty through the Military 

Reservist Economic Injury Disaster 

Loan program (MREIDL) to help cover 

operating costs due to the loss of an 

essential employee called to active duty.

PATRIOT EXPRESS LENDERS IN ALABAMA:

BANCORPSOUTH

BANK OF TUSCALOOSA

BANKTRUST

BB&T

COASTAL BANK & TRUST

CB&T OF EAST ALABAMA

CB&T OF SOUTHEAST ALABAMA

COMMUNITY BANK

THE EXCHANGE BANK OF ALABAMA 

 (ETOWAH AND SURROUNDING COUNTIES ONLY) 

FIRST BANK OF JASPER

FIRST CITIZENS BANK

FIRST COMMERCIAL BANK

FIRST NATIONAL BANK OF BRUNDIDGE

FIRST NATIONAL BANK OF PULASKI

FRIEND BANK

M&F BANK

RBC BANK

REDSTONE FEDERAL CREDIT UNION

REGIONS BANK 

STATE BANK & TRUST

STERLING BANK

SUNTRUST BANK

UNITED BANK

WELLS FARGO

Advantage Loans

In early 2011, SBA rolled out two 

Advantage loan initiatives aimed 

at helping entrepreneurs and small 

business owners in underserved 

communities gain access to capital. 

Both offer a streamlined loan application 

process and the regular 7(a) loan 

guarantee for loans under $250,000.

The Small Loan Advantage program 

is available to lenders participating in 

the Preferred Lenders Program. SBA 

lenders who are not participating in the 

Preferred Lenders Program can contact 

their local district office to apply.

The Community Advantage pilot 

program opens up 7(a) lending to 

mission-focused, community-based 

lenders – such as Community 

Development Financial Institutions 

(CDFIs), Certified Development 

Companies (CDCs), and microlenders 

– that provide technical assistance 

and economic development support in 

underserved markets.

More information on both programs is 

available at www.sba.gov/advantage. 

CAPLines

The CAPLines program is designed 

to help small businesses meet their 

short-term and cyclical working 

capital needs. The programs can 

be used to finance seasonal working 

capital needs; finance the direct costs 

of performing certain construction, 

service and supply contracts; finance the 

direct cost associated with commercial 

and residential construction; finance 

operating capital; and consolidate 

short-term debt. SBA provides up to 

an 85 percent guarantee. There are 

four distinct loan programs under the 

CAPLine umbrella:

• The Contract Loan Program is 

used to finance material, labor, and 

overhead needs for a specific contract 

or contracts. 

• The Seasonal Line of Credit Program

is used to support buildup of inventory, 

accounts receivable or labor and 

materials above normal usage for 

seasonal inventory. 

• The Builders Line Program provides 

financing for small contractors or 

developers to construct or rehabilitate 

residential or commercial property.

• The Working Capital Line is a 

revolving line of credit that provides 

short term working capital. 

EXPORT ASSISTANCE 

The SBA has several programs to 

help existing small businesses wanting 

to export goods and services. A brief 

description of each can be found below.

Export Working Capital Program

The SBA’s Export Working Capital 

program (EWCP) assists lenders in 

meeting the needs of exporters seeking 

short-term export working capital. 

This program enables U.S. exporters 

to obtain loans to fund their direct 

export costs. The EWCP supports 

single transactions or revolving lines 

of credit. The maximum dollar amount 

of an export line of credit under this 

program is $5 million. SBA guarantees 

up to 90 percent of a loan amount or 

$ 4.5 million, whichever is less. Loan 

maturities are generally for a term of 12 

months. The guaranty can be reissued 

for an additional 12 months through a 

new application process. The guaranty 

fee the SBA charges is 0.25 percent of 

the guaranteed amount of the loan for 

the initial 12 months. The borrower 

negotiates the interest rate and all other 

fees with the lender. The program offers 

flexible terms, low fees and a quick 

processing time. For information, see 

www.sba.gov/exportloans.

Eligibility of Exporter

The business must have an operating 

history of at least one year – not 

necessarily in exporting. The SBA may 

waive this requirement if you have 

sufficient export trade experience or 

other managerial experience.

Eligibility of Foreign Buyers 

The foreign buyer must be a 

creditworthy entity and the methods of 

payment must be acceptable to the SBA 

and the export lender.

Use of EWCP Proceeds

• To acquire inventory for export or to be 

used to manufacture goods for export.

• To pay the manufacturing costs of 

goods for export.

• To purchase goods or services for 

export.

• To support standby letters of credit 

related to export transactions.

• For pre-shipment working capital 

directly related to export orders.

• For post-shipment foreign accounts 

receivable financing.
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 23

Ineligible Use of Proceeds

• To support the applicant’s domestic 

sales.

• To acquire fixed assets or capital goods 

for the applicant’s business.

• To support a sale where the exporter is 

not taking title to the goods.

• To acquire, equip, or rent commercial 

space overseas.

• To serve as a warranty letter of credit. 

Collateral Requirements

• Collateral for the manufacturing sector 

typically consists of a first lien on all 

export-related inventory and export 

related accounts receivable.

• Collateral for the service sector 

typically consists of assignment of 

proceeds of export-related contracts 

or purchase orders and a first lien on 

export-related accounts receivable.

• Other collateral may be required.

How to Apply 

 A small business exporter seeking a 

guaranteed EWCP loan must apply to a 

lender.

International Trade Loan Program

The SBA’s International Trade Loan 

program (ITL) helps small businesses 

engaged or preparing to engage in 

international trade as well as small 

businesses adversely affected by 

competition from imports. This program 

allows for a maximum loan amount of 

$5 million. The international trade 

loan provides an SBA guarantee up 

to $ 4.5 million for a term loan used 

for the acquisition, construction, 

renovation, modernization, improvement 

or expansion of long-term fixed assets 

or the refinancing of an existing loan 

used for these same purposes. It may 

also be used for working capital or in 

conjunction with any SBA working 

capital loans, including the EWCP. The 

SBA guaranty fee and interest rates are 

the same as for any standard 7(a) loans.

Eligibility of Exporter 

• Applicants must meet the same 

eligibility requirements for a 7(a) loan.

• Applicant must establish that the loan 

will significantly expand or develop 

an export market, or the applicant 

has been adversely affected by import 

competition, and, in addition, the 

applicant must show that upgrading 

equipment or facilities will improve its 

competitive position.

• If eligibility is based on entering or 

expanding export sales, the applicant 

must submit a one or two page 

international business plan, including 

sufficient information to reasonably 

support the likelihood of expanded 

export sales.

Use of Proceeds

• For facilities or equipment, including 

purchasing land and building(s); 

building new facilities; renovating, 

improving, or expanding existing 

facilities; purchasing or reconditioning 

machinery, equipment and fixtures; 

and making other improvements that 

will be used within the United States 

for producing goods or services.

• Refinancing a facility/building is also 

permissible if the original loan on the 

property could have been refinanced 

under regular 7(a).

Collateral Requirements 

See pg. 19 for collateral requirements.

How to Apply 

 A small business exporter seeking a 

guaranteed loan must apply to an SBA 

participating lender. Call your local SBA 

District Office for a list of participating 

lenders.

Export Express

The Export Express program is 

designed to help SBA meet the export 

financing needs of small businesses. It 

is subject to the same loan processing, 

making, closing, servicing, and 

liquidation requirements as well as the 

same maturity terms, interest rates, and 

applicable fees as for other SBA loans 

except as noted below. The total Export 

Express loan cannot exceed $500,000. 

SBA guarantees 90 percent for loans 

of $350,000 and under and 75 percent 

for loans greater than $350,000 up to 

the maximum of $500,000. SBA allows 

participating lenders to make their own 

credit decisions. SBA provides a quick 

processing time, less than 36 hours.

Eligibility of Exporter

You must have a business operating 

history of at least one year – not 

necessarily in exporting. The SBA may 

waive this requirement if you have 

sufficient export trade experience or 

other managerial experience.

Eligibility of Foreign Buyers 

The foreign buyer must be a 

creditworthy entity and the methods of 

payment must be acceptable to the SBA 

and the export lender.

Use of Proceeds 

• Finance standby letters of credit used 

for either bid or performance bonds;
24 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

• Finance export development activities 

such as export marketing and 

promotional activities, participation 

in foreign trade shows, translation of 

product literature for foreign markets, 

and other activities designed to initiate 

or expand the applicant’s export of its 

products/services from the U.S.;

• Provide transaction-specific financing 

for overseas orders;

• Provide revolving lines of credit for 

export purposes, the terms of which 

must not exceed seven years. In 

some instances, as a normal course 

of business, the borrower may use 

portions of revolving lines of credit for 

domestic purposes, but no less than 70 

percent of the revolving line to be used 

for export related purposes;

• Provide term loans and other financing 

to enable small business concerns, 

including small business export 

trading companies to develop foreign 

markets; and

• Acquire, construct, renovate, 

modernize, improve or expand 

production facilities or equipment to be 

used in the U.S. in the production of 

goods or services to be exported from 

the U.S. 

Ineligible Use of Proceeds

Proceeds may not be used to finance 

overseas operations, other than those 

strictly associated with the marketing 

and/or distribution of products/services 

exported from the U.S.

How to Apply

The application process is the same for 

the SBAExpress, except the applicant 

must demonstrate that loan proceeds 

will enable it to enter a new export 

market or expand an existing export 

market. The applicant must submit to 

the lender a plan that includes projected 

export sales for the upcoming year as 

well as the dollar volume of export sales 

for the previous year.

U.S. Export Assistance Center 

(USEAC) 

U.S. Export Assistance Centers are 

a network of facilities around the U.S. 

staffed by SBA, the U.S. Department of 

Commerce and the Export-Import Bank 

of the U.S. to provide trade promotion 

and export-finance assistance for small 

businesses in a single location. The 

USEACs also work closely with other 

federal, state and local international 

trade organizations. To find the nearest 

USEAC, go to www.export.gov/eac.

Ray Gibeau

U.S. Export Assistance Center

75 Fifth St. N.W., Ste. 1055

Atlanta, GA 30308

404-897-6089

CERTIFIED DEVELOPMENT 

COMPANY LOAN PROGRAM 

(504 LOANS)

The 504 Loan program is an economic 

development program that supports 

American small business growth and 

helps communities through business 

expansion and job creation. This SBA 

program provides long-term, fixedrate, subordinate mortgage financing 

for acquisition and/or renovation of 

capital assets including land, buildings 

and equipment. Some refinancing is 

also permitted. Most for-profit small 

businesses are eligible for this program. 

The types of businesses excluded from 

7(a) loans (listed previously) are also 

excluded from the 504 loan program.

Loans are provided through SBAapproved Certified Development 

Companies. CDCs work with banks 

and other lenders to make loans in first 

position on reasonable terms, helping 

lenders retain growing customers and 

provide Community Redevelopment Act 

credit.

The SBA 504 loan is distinguished 

from the SBA 7(a) loan program in these 

ways:

The maximum debenture, or long-term 

loan, is: 

• $5 million for businesses that create a 

certain number of jobs or improve the 

local economy;

• $5 million for businesses that meet a 

specific public policy goal, including 

veterans; and 

• $5.5 million for manufacturers and 

energy public policy projects.

 Recent additions to the program allow 

$5.5 million for each project that reduces 

the borrower’s energy consumption by 

at least 10 percent; and $5.5 million for 

each project that generates renewable 

energy fuels, such as biodiesel or ethanol 

production. Projects eligible for up to 

$5.5 million under one of these two 

requirements do not have to meet the 

job creation or retention requirement, so 

long as the CDC portfolio average is at 

least $65,000.

• Eligible project costs are limited 

to long-term, fixed assets such as 

land and building (occupied by the 

borrower) and substantial machinery 

and equipment. Working capital is not 

an eligible use of proceeds. 

• Most borrowers are required to make 

an injection (borrower contribution) 

of just 10 percent which allows 

the business to conserve valuable 

operating capital. A further injection 

of 5 percent is needed if the business 

is a start-up or new (less than 2 

years old), and a further injection of 5 

percent is also required if the primary 

collateral will be a single purpose 

building.

• Two-tiered project financing: A lender 

finances approximately 50 percent of 

the project cost and receives a first 

lien on the project assets (but no SBA 

guaranty); A CDC (backed by a 100 

percent SBA-guaranteed debenture) 

finances up to 40 percent of the project 

costs secured with a junior lien. The 

borrower provides the balance of the 

project costs.

• Fixed interest rate on SBA loan. SBA 

guarantees the debenture 100 percent. 

Debentures are sold in pools monthly 

to private investors. This low, fixed 

rate is then passed on to the borrower 

and establishes the basis for the loan 

rate. 

• All project-related costs can be 

financed, including acquisition (land 

and building, land and construction of 

building, renovations, machinery and 

equipment) and soft costs, such as title 

insurance and appraisals. Some closing 

costs may be financed.

• Collateral is typically a subordinate 

lien on the assets financed; allows 

other assets to be free of liens and 

available to secure other needed 

financing.

• Long-term real estate loans are up to 

20-year term, heavy equipment 10- or 

20-year term and are self-amortizing.

Businesses that receive 504 loans are:

• Small — net worth under $15 million, 

net profit after taxes under $5 million, 

or meet other SBA size standards.

• Organized for-profit.

• Most types of business — retail, 

service, wholesale or manufacturing.

The SBA’s 504 certified development 

companies serve their communities by 

financing business expansion needs. 

Their professional staffs work directly 

with borrowers to tailor a financing 

package that meets program guidelines 

and the credit capacity of the borrower’s 

business. For information, visit 

www.sba.gov/504. 

Alabama Community Development Corp. 

d/b/a (ALACOM)

Contact: Diane Roehrig, President

117 Southcrest Dr., Ste. 100

Homewood, AL 35209

205-942-3360 • 205-942-5984 Fax

alacom@worldnet.att.net

www.alacom.com

Area of Operation: Statewide

Alabama Small Business Capital

Contact: Angie Winter-Sweatman, Vice Pres.

1784 Taliaferro Tr., Ste. B

Montgomery, AL 36117

334-272-5355

angie@asbc504.com

Area of operation: Statewide
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 25

Foundation Capital

Contact: Bob Dickerson, Executive Director

1500 1st Ave. N., Ste. B108

Birmingham, AL 35203

205-250-6380 • 205-250-6384 Fax

info@bbrc.biz

www.foundationcapital.biz

Area of Operation: Statewide

Greater Mobile Development Corporation

Contact: Teresa Sands, Economic Dev. Coord.

Business Innovation Center

1301 Azalea Rd., Ste. 201/P.O. Box 1827

Mobile, AL 36693

251-650-0826 • 251-650-0827 Fax

gmdc@ceebic.org

www.cityofmobile.org

Area of Operation: Statewide

Southern Development Council

8132 Old Federal Rd.

Montgomery, AL 36117-8007

334-244-1801 or 800-499-3034

334-244-1421 Fax

sdci@sdcinc.org

www.sdcinc.org

Area of Operation: Statewide

MICROLOAN PROGRAM

The Microloan program provides 

small loans ranging from under $500 

to $50,000 to women, low-income, 

minority, veteran, and other small 

business owners through a network 

of approximately 160 intermediaries 

nationwide. Under this program, the 

SBA makes funds available to nonprofit 

intermediaries that, in turn, make the 

small loans directly to entrepreneurs, 

including veterans. Proceeds can be 

used for typical business purposes such 

as working capital, or the purchase of 

furniture, fixtures, machinery, supplies, 

equipment, and inventory. Microloans 

may not be used for the purchase of real 

estate. Interest rates are negotiated 

between the borrower and the 

intermediary. The maximum term for a 

microloan is 7 years. 

The program also provides business 

based training and technical assistance 

to microborrowers and potential 

microborrowers to help them be 

successful at starting or growing their 

businesses. Such training and technical 

assistance may include general business 

education, assistance with business 

planning industry-specific training, 

and other types of training support. 

Entrepreneurs and small business 

owners interested in small amounts of 

business financing should contact one 

from the list below or go to 

www.sba.gov/microloans.

Birmingham Business Resource Center

1500 1st Ave. N., Ste. B108

Birmingham, AL 35203

Robert Dickerson Jr., Executive Director

info@bbrc.biz

www.bbrc.biz

205-250-6380 • 205-250-6384 Fax

Service Area: Jefferson County

Maximum Loan: $7,500

Community Enterprise Investments, Inc.

302 N. Barcelona St.

Pensacola, FL 32501

Microloan Contact: Grover Brown or 

Percy Goodman

rjemison@ceii-cdc.org; bigdanfla@aol.com; 

eljojr@aol.com; ceii2234@aol.com

www.ceii.pensacola.com

rjemison@ceii-cdc.org; bigdanfla@aol.com; 

eljojr@aol.com; ceii2234@aol.com

850-595-6234 or 888-605-2505 Toll Free

850-595-6264 Fax

Service Areas: Autauga, Baldwin, Barbour, Butler, 

Bullock, Choctaw, Clarke, Coffee, Conecuh, 

Covington, Crenshaw, Dale, Dallas, Escambia, 

Geneva, Greene, Henry, Houston, Lee, Lowndes, 

Marengo, Mobile, Monroe, Montgomery, Perry, Pike, 

Russell, Sumter, Washington and Wilcox counties.
26 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

Seedco Financial-Alabama 

Microlending: Herman Michael Williams

505 N. 20th St., Ste. 1525

Birmingham, Al 35203

hwilliams@seedcoorg

www.seedco.org

www.seedcofinancial.org 

205-715-2714 • 205-715-2711 Fax

Maximum Loan: $50,000

Must have at least one year of business 

operations.

Service Area: 15 Alabama Counties

Counties with metro cities identified in 

parentheses are as follows:

Jefferson (Birmingham), Madison 

(Huntsville), Mobile (Mobile), Montgomery 

(Montgomery), Tuscaloosa (Tuscaloosa), 

Choctaw, Dallas, Greene, Hale, Lowndes, 

Macon, Perry, Pickens, Sumter, Wilcox.

SMALL BUSINESS 

INVESTMENT COMPANY 

PROGRAM

There are a variety of alternatives to 

bank financing for small businesses. The 

Small Business Investment Company 

(SBIC) program fills the gap between 

the availability of private capital and 

the needs of small businesses for growth 

capital. Licensed and regulated by the 

SBA, SBICs are privately owned and 

managed investment funds that make 

capital available to qualifying U.S. 

small businesses at attractive rates. 

The funds raise private capital and 

can receive SBA-guaranteed leverage 

up to 3x private capital paid-in, with 

a leverage ceiling of $150 million per 

SBIC and $225 million for two or more 

licenses under common control. Licensed 

SBICs are for-profit investment firms 

whose incentive is to share in the 

success of a small business. The SBIC 

program provides funding for a broad 

range of industries. Some SBICs invest 

in a particular field or industry while 

others invest more generally. For more 

information, visit www.sba.gov/inv.

FJC Growth Capital Corporation

Frank L. Collazo, General Manager

P.O. Box 1290

Huntsville, AL 35807

256-430-3132 • 256-430-3280 Fax

flc@fjcgrowth.com

Investment Criteria

Investment Size Range

Preferred Min: $350,000

Preferred Max: $500,000

Type of Capital Provided: Loans w/Equity 

Features

Funding Stage Preference: Expansion 

Later Stage

Industry Preference: Manufacturing,

Health/Medical, Communications, Diversified

Geographic Preferences: South, Southeast, 

Midwest.

Harbinger Mezzanine Partners, L.P.

John Harrison, Contact

One Riverchase Pkwy. S.

Birmingham, AL 35244

615-301-6400 • 615-301-6401 Fax

slrogers@harbert.net

Investment Criteria

Investment Size Range

Preferred Min.: $0

Preferred Max.: $0

TD Javelin Capital Fund II, L.P.

Lyle Hohnke, Manager

2850 Cahaba Rd., Ste. 240

Birmingham, AL 35223

203-629-8700 • 203-629-9293 Fax

mmcleish@tullisdickerson.com

Alabama Plan for Linked Deposits

The Alabama Plan for Linked 

Deposits is a program operated as 

a division of the Alabama State 

Treasurer’s Office. It allows the State 

Treasurer to make deposits in state 

banks on which banks pay 2 percent 

below the normal interest rate paid to 

the state for its funds. The reduction in 

the interest rate paid by the bank must 

be passed on to the borrowers on loans 

qualifying for this program. It amounts 

to a 2 percent subsidy on the borrower’s 

interest rates for two years to help 

stimulate economic growth in the state.

Use of funds - Land, buildings or 

equipment; repairs and renovations; 

rent, utilities, insurance or taxes; legal 

or accounting fees; wages or inventory.

Eligibility - Any person, corporation 

or partnership engaged in business and 

headquartered in Alabama, organized 

for profit, maintaining facilities 

primarily in Alabama, having no more 

than 150 employees, having debts 

equal to or greater than 35 percent of 

assets, and creating or sustaining job 

opportunities.

Job creation - One job must be 

created or sustained for each $15,000 

of loan. Loan requests above $250,000 

must demonstrate that one job can be 

created for each $10,000 of loan.

SMALL BUSINESS 

INNOVATION RESEARCH 

PROGRAM 

The Small Business Innovation 

Research (SBIR) program encourages 

small businesses to advance their 

technical potential from funds 

committed by federal agencies with large 

extramural research and development 

budgets. The SBIR program serves 

to fund the critical startup and 

development stages for a technology and 

encourages commercialization of the 

technology, product or service. In turn, 

this stimulates the U.S. economy. 

SBIR Requirements

Small businesses must meet the 

following eligibility criteria to participate 

in the SBIR program. 

• Be 51 percent owned and controlled by 

one or more individuals who are U.S. 

citizens or permanent resident aliens 

in the U.S. or be a for-profit business 

concern that is at least 51 percent 

owned and controlled by another 

for-profit business concern that is at 

least 51 percent owned and controlled 

by one or more individuals who are 

citizens of, or permanent resident 

aliens in, the U.S.

• Be for-profit. 

• Principal researcher must be employed 

by the small business.

• Company size cannot exceed 500 

employees. 

For more information on the SBIR 

Program visit www.sba.gov/sbir.

Participating Agencies

Each year, the following eleven 

federal departments and agencies are 

required to reserve 2.5 percent of their 

extramural R&D funds for award to 

small businesses through the SBIR 

program: Departments of Agriculture; 

Commerce; Defense; Education; Energy; 

Health and Human Services; Homeland 

Security; Transportation; Environmental 

Protection Agency; National Aeronautics 

and Space Administration; and National 

Science Foundation. 
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 27

SMALL BUSINESS 

TECHNOLOGY TRANSFER 

PROGRAM

The Small Business Technology 

Transfer (STTR) program reserves 

a specific percentage of federal R&D 

funding for award to small business and 

non-profit research institution partners. 

Central to the program is expansion of 

the public/private sector partnership to 

include the joint venture opportunities 

for small business and the nation’s 

premier nonprofit research institutions. 

Small business has long been where 

innovation and innovators thrive, but 

the risk and expense of conducting 

serious R&D efforts can be beyond 

the means of many small businesses. 

Non-profit research laboratories 

are also instrumental in developing 

high-tech innovations, but frequently 

innovation is confined to the theoretical. 

STTR combines the strengths of both 

entities by introducing entrepreneurial 

skills to high-tech research efforts. 

The technologies and products are 

transferred from the laboratory to the 

marketplace. The small business profits 

from the commercialization, which, in 

turn, stimulates the U.S. economy.

STTR Requirements 

Small businesses must meet the 

following eligibility criteria to participate 

in the STTR program. 

• Be 51 percent owned and controlled by 

one or more individuals who are U.S. 

citizens or permanent resident aliens 

in the U.S. 

• Be for-profit. 

• Principal researcher need not be 

employed by the small business. 

• Company size cannot exceed 500 

employees. (No size limit for nonprofit 

research institution). 

The nonprofit research institution 

partner must also meet certain 

eligibility criteria:

• Be located in the United States and be 

one of the following: 

• Nonprofit college or university.

• Domestic nonprofit research 

organization. 

• Federally funded R&D center.

Participating Agencies

Each year the following five Federal 

departments and agencies are required 

by STTR to reserve 0.3 percent of their 

extramural R&D funds for award to 

small business/nonprofit research 

institution partnerships: Department 

of Defense; Department of Energy; 

Department of Health and Human 

Services; National Aeronautics and 

Space Administration; and National 

Science Foundation.

SURETY BOND GUARANTEE 

PROGRAM

The Surety Bond Guarantee program 

is a public-private partnership between 

the federal government and surety 

companies to provide small businesses 

with the bonding assistance necessary 

for them to compete for public and 

private contracting and subcontracting 

opportunities. The guarantee provides 

all incentives for sureties to bond small 

businesses that would otherwise be 

unable to obtain bonding. The program 

is aimed at small businesses that lack 

the working capital or performance 

track record necessary to secure bonding 

on a reasonable basis through regular 

commercial channels.

Through this program, the SBA 

guarantees bid, payment, performance 

and ancillary bonds issued by surety 

companies for individual contracts and 

subcontracts up to $2 million. The 

SBA reimburses sureties between 70 

and 90 percent of losses sustained if a 

contractor defaults on the contract.

 The SBA has two program options 

available, the Prior Approval Program 

(Plan A) and the Preferred Surety Bond 

Program (Plan B). In the Prior Approval 

Program, SBA guarantees 90 percent 

of surety’s paid losses and expenses on 

bonded contracts up to $100,000, and on 

bonded contracts greater than $100,000 

that are awarded to socially and 

economically disadvantaged concerns, 

HUBZone contractors, and veterans, and 

service-disabled veteran owned small 

businesses. All other bonds guaranteed 

in the Plan A Program receive an 80 

percent guarantee. Sureties must obtain 

SBA’s prior approval for each bond 

guarantee issued. Under Plan B, SBA 

guarantees 70 percent, but sureties may 

issue, monitor and service bonds without 

SBA’s prior approval. 

Alabama Surety Bonds, Inc.

14 Office Park Ctr. E., Ste. 105-A

Birmingham, AL 35223

205-871-9399 • 205-871-9403 Fax

The Securance Group

4216 Carmichael Rd.

Montgomery, AL 36106

800-239-5667 or 334-272-1200

334-277-6114 Fax
The U.S. Small Business Administration provides 

small businesses with the tools and the resources 

they need to grow and create jobs. This includes 

access to capital, opportunities in government 

contracting, and counseling and training—otherwise 

known as the “Three C’s” of capital, contracting, and 

counseling. Since its inception in 1953, the SBA has 

used the Three C’s to help millions of businesses, 

from shops on Main Street to high-growth, highimpact firms. 

In August, 2011, the SBA announced the SBA 100. 

These one hundred businesses all used SBA products 

to grow, and since then, each one has created at least 

one hundred jobs—no small feat for a small business. 

You can find them at www.sba.gov/100. 

The SBA 100 is a cross section of the diverse array 

of businesses that stand to benefit from SBA 

products. Some of the businesses in the SBA 100 

have grown to become household names. Others 

may not be familiar, but they are still cornerstones 

of their communities and drivers of job creation. 

There are businesses in a variety of industries, from 

construction, to food and beverage, to manufacturing. 

There are Main Street businesses—the shops and 

restaurants that we visit every day—as well as highgrowth, high-impact firms that are transforming our 

economy. Each business received SBA support, in 

the form of capital, contracting, or counseling, before 

going on to create at least 100 jobs.

A few businesses in the SBA 100 worked with 

the SBA decades ago. For example, Columbia 

Sportswear used an SBA loan in 1970 to increase 

its production capacity. At the time, it had forty 

employees. Today Columbia Sportswear has over 

3,000 employees and generates over $1 billion dollars 

in revenue. Hard work and a little help from the 

SBA has made Columbia Sportswear into a global 

leader in outdoor apparel.

Meanwhile, one of the youngest companies in the 

SBA 100 is the Boathouse at Rockett’s Landing in 

Richmond, Virginia. Owner Kevin Healy got an SBA 

7(a) loan in 2009 to renovate an old power plant on 

the James River to open up his second restaurant. 

He said the process was “quick, easy and painless 

and done within approximately 60 days.” His 

business has been growing steadily for the past two 

years, and the Boathouse at Rockett’s Landing now 

employs over 100 people.

The SBA 100 isn’t just businesses that have received 

SBA loans. In 1985, Qualcomm was a small 

company proving R&D to the federal government, 

but not for long. In 1989, the company received 

funding from the Small Business Innovation 

Research (SBIR) program to hire engineers and begin 

developing microchips. This funding gave them 

the freedom to innovate, explore, and transition 

from contract research to consumer applications. In 

twenty years, Qualcomm has gone from 35 people 

to a global workforce of 16,000 employees. The chip 

department initially funded by the SBIR program 

now makes up two-thirds of the company’s revenue.

There are also businesses that have benefited 

from SBA’s support for small business contracting. 

Missouri’s World Wide Technology (WWT) enrolled 

in SBA’s 8(a) Business Development program in 

1992. The 8(a) program gave the company the 

tools it needed to compete for and win government 

contracts. Now, WWT has over 1,300 employees in 

48 states and six countries, and its sales exceed 

$68 million.

The fact is, the SBA has something to offer, no matter 

what kind of support you need or what kind of 

business you own. Whether you’re just starting out, 

or you have been in business for decades, the SBA 

can help you take your business to the next level. If 

you own a restaurant on Main Street, you can get a 

loan to expand. If you own a high-growth firm, you 

can get the investment capital you need. If you are 

looking to get into government contracting, SBA can 

help you get started. And for every business, SBA 

counselors are standing by to help you along the 

way. 

This Resource Guide is a great place to learn 

more. In here, you can find details on all of SBA’s 

programs, from loans and capital, to contracting and 

counseling. You can also find SBA online at 

www.sba.gov. SBA recently revamped its website, 

making the information and resources you need 

much easier to find. Meanwhile, the SBA online 

Community, which you can find at 

community.sba.gov, puts the advice of thousands 

of small business owners like you at your fingertips. 

You can also visit www.sba.gov/direct to find your 

SBA district office or local resource partner. 

Thanks for reading, and we’ll see you soon.

MEET THE SBA 100

28 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al
FEATURE

Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 29

U.S. Small Business Administration Loan Programs, Page A

Information accurate as of 12/01/2011 • All SBA programs and services are provided on a nondiscriminatory basis.

7(a) Loan Program

Program Maximum

Amount

Use of

Proceeds

Maximum

Interest Rate

Benefit to Maturity Borrowers Structure Who Qualifies

Standard 7(a):

Applicant applies

for business loan 

to lender; Lender 

applies to SBA 

for guaranty of 

their proposed 

loan if they 

determine it is 

necessary. Loan 

from lender, not 

SBA.

$5 million to any 

one business, 

including affiliates 

Expansion/renovation; 

new construction, 

purchase land or 

buildings; purchase

equipment, 

fixtures, lease-hold 

improvements;

working capital; 

inventory, business 

acquisition, start-ups 

and refinancing under 

certain conditions 

(discuss with lender).

Depends on use of 

proceeds and ability 

to repay. Generally

working capital and

machinery & 

equipment loans 

have 5-10 years; 

real estate is up 

to 25 years. Term 

negotiated with 

lender.

SBA sets a 

maximum rate 

for both variable 

and fixed rate 

loans (discuss 

with lender or 

local SBA District 

Office for current 

information).

Term loan with one 

payment of principal 

and interest (P&I) 

each month. Interest 

variable or fixed 

as negotiated with 

lender. Cannot be 

revolving. SBA 

charges a Guaranty 

Fee **

Must be for-profit 

and meet SBA size 

standards; show 

good character, 

credit, management, 

and ability to repay; 

must be an eligible 

type of business, 

use proceeds for 

eligible purpose, and 

demonstrate that 

credit is not otherwise 

available.

Business able to 

obtain financing which 

otherwise would not be 

provided due to term, 

collateral, equity, and/or 

time in business. Fixed 

maturity; No balloons; 

No prepayment penalty 

if maturity under 15 

years. Establish or 

re-affirm business 

relationship with a 

lender.

International

Trade: Long term 

financing to help 

businesses

engaged in 

exporting or 

adversely 

impacted by 

imports.

Same as

Standard 7(a).

Same as

Standard 7(a).

Same as

Standard 7(a).

Same as

Standard 7(a).

Same as

Standard 7(a).

Up to 10 years.

Same as

Standard 7(a).

Same as

Standard 7(a).

Acquire, renovate, 

modernize facilities 

or equipment used in 

making products or 

services to be exported, 

plus permanent working 

capital and refinance 

debt not structured with 

reasonable terms.

Same as Standard 

7(a). Maximum SBA 

guaranty amount for 

working capital is $4 

million.

Same as Standard 

7(a) plus businesses 

must be engaged or 

preparing to engage 

in international

trade or adversely 

affected by 

competition from 

imports.

Same as Standard 

7(a) plus long-term 

financing for fixed 

assets used

to produce products 

or services for export.

Export Working

Capital Program:

Single transaction 

or Revolving 

Working Capital 

lines of credit for 

exporters.

Short-term, 

working-capital for 

exporters. Can be 

single transaction or 

revolving. Standby 

Letters of Credit for 

export purposes.

Generally one year, 

but can be up to 

3 years to match 

a single transaction 

cycle.

Established 

by lender. No 

SBA established 

maximums.

Short term revolving 

line of credit based 

on borrowing 

base or export 

purchase orders. 

Monthly interest 

payments; principal 

payments based on 

collection of foreign 

receivables.

Same as Standard 

7(a) plus must 

have been in 

business for at 

least one year and 

preparing to engage 

in or increase 

international trade.

Same as Standard 

7(a) plus provides 

working capital to 

American Exporters 

to perform on export 

transactions and/

or finance export 

receivables. Ability to 

finance standby letters 

of credit for export 

purposes.

CAPLines:

Four different 

Revolving Lines 

of Credit, 

a/k/a Seasonal, 

Contract Builders, 

Working Capital

Finances: seasonal 

working capital needs, 

direct cost to

perform assignable 

contracts, construction 

costs of structure for 

resale, or advances 

against existing 

inventory and 

receivables.

Revolving line of 

credit with monthly 

interest and 

principal payments 

based on when the 

business receives 

the cash for doing 

the activity the loan 

proceeds financed.

Same as Standard 

7(a) plus a

business that needs 

the specialized 

proceeds this 

program offers.

Same as Standard 7(a) 

plus provides revolving 

working capital not 

otherwise available 

to perform on an 

assignable contract, to 

cover seasonal needs, 

to build or renovate 

personal or commercial 

space, and to obtain 

funds against existing 

current assets. Also 

structured to meet 

business needs.

SBAExpress:

Lender approves 

the loan.

$350,000. Same as a Standard 

7(a) or may be used 

for a revolving working 

capital line of credit.

Same as Standard

7(a) for term loans,

Revolving lines of

credit up to 7 years.

Loans $350,000

or less:

Prime + 6.5%.

Loans over

$50,000:

Prime + 4.5%.

Same as Standard 

7(a) except lender 

has more leeway to 

structure repayment 

under their own 

rules.

Same as Standard 

7(a) plus Streamlined 

process; Easy-to-use 

line of credit and allows 

for a revolving feature 

which Standard 7(a) 

does not.

** The SBA charges the lender a guaranty fee based on the loan’s maturity and the dollar amount which is initially guaranteed. 

 The lender can pass this expense to the borrower and loan proceeds can be used to reimburse the lender. 

 The following chart explains the Agency’s guaranty fee charges
30 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

U.S. Small Business Administration Loan Programs, Page B Information accurate as of 12/01/2011

7(a) Loans, continued

7(a) Guaranty

Fee Reference

Chart

NOTE 1: The guaranty fee on a $100,000 loan with an 85% guaranty would be 2% of $85,000 or $1,700, of which the lender would retain $425.

NOTE 2: The guaranty fee on a $2,000,000 loan with a 75% guaranty ($1.5 million guaranteed portion) would be, 3.5% of $1,000,000 ($35,000) PLUS 3.75% of $500,000 ($18,750), for a total of $53,750

Gross Size of Loan Fees Notes

Loans of $150,000 or less (See Note 1)................................2% of guaranteed portion, Lender is authorized to retain..............Maturities that exceed 12 months

$150,001 to $700,000 ...................................................... ......3% of guaranteed portion.................................................................Maturities that exceed 12 months

$700,001 to $5,000,000 (See Note 2) ............................ ......3.5% of guaranteed portion up to $1,000,000 PLUS 3.75% of.....Maturities that exceed 12 months

 the guaranteed portion over $1,000,000

Short Term Loans – up to $5 million......................................0.25% of the guaranteed portion.....................................................Maturities of 12 months or less

Non 7(a) Loans

Program Maturity Structure Who Qualifies Maximum

Amount

Maximum

Interest Rate

Benefit to

Borrowers

Use of

Proceeds

Export Express:

Lender approves

the loan.

$500,000.

$500,000.

Same as SBA Express 

plus can be used 

for Standby Letters 

of Credit for Export 

Purposes. Debt 

Refinance is not 

allowed.

Same as

SBA Express.

Same as

Standard 7(a).

Same as

Standard 7(a).

Same as

Standard 7(a).

Same as

Standard 7(a).

Same as

SBA Express.

Same as

SBA Express.

Same as

SBA Express.

Same as SBA 

express plus loan 

proceeds must be 

used to support 

export development 

activity.

Same as SBA 

Express plus provides 

lenders with a higher 

percentage guaranty 

which can encourage 

them to make more 

loans to finance export 

development activities 

of small businesses. 

Standby Letters 

of Credit are also 

authorized. 

Patriot Express:

Lender approves

the loan.

Same as Standard 

7(a) plus must be 

owned & controlled 

by one or more of 

the following groups 

equaling at least 

51% total ownership: 

veteran, active-duty 

military, reservist 

or National Guard 

member or spouse of 

any of these groups, 

or widowed spouse 

of service member 

or veteran who died 

during service or of 

service connected 

disability.

Same as SBA 

Express plus provides 

lenders with a higher 

percentage of guaranty 

which can encourage 

them to make more 

loans to qualified 

businesses.

Community

Advantage:

Alternative 

Lenders assisting 

businesses 

located in areas 

with high needs.

$250,000. Same as Standard 7(a)

except cannot be used 

to refinance loans 

made by or guaranteed 

by the Dept. of

Agriculture or loans 

by SBA Micro-Lenders 

using their SBA 

intermediary loan.

Same as 

Standard 7(a) 

except allowable 

“Spread” is + 4% 

over the base 

rate.

Allows missionoriented lenders 

focused on 

economic 

development 

in underserved 

markets to apply for 

7(a) guaranty on 

loan they propose to 

make to an eligible 

small business.

Loan eligibility 

requirements are 

same as for

Standard 7(a) loans, 

but the business

should be located 

in an underserved 

market .

Borrowers in 

underserved markets

get more choices on 

the types of lenders 

who can provide 

them financing if their 

financing needs an 

SBA guaranty and the 

technical assistance 

needs of the applicant 

are assessed by the 

lender.

504 Loans:

Fixed Asset 

Project Financing 

provided from 

three sources.

SBA portion up to 

$5.0 million.

For the acquisition of 

long-term fixed-assets, 

refinancing long term 

fixed asset debt under 

certain conditions, and 

working capital on a 

limited basis.

Either 10 or 20 year 

term on the SBA/

CDC portion.

Check with local 

SBA District 

Office for current 

information.

Financing from

1. The CDC 

 Certified

 Development

 Company

2. Third Party 

 Lenders

3. Applicant

For profit businesses 

that do not exceed 

$15.0 million in 

tangible net worth 

and do not have an 

average net income 

over $5 million for the 

past 2 years.

Fees under 3 percent; 

long-term fixed rate; 

low down payment; 

full amortization; no 

balloons.

Micro-Loans $50,000 total 

to one small 

business 

borrower.

Furniture, fixtures, 

supplies, inventory, 

equipment, and 

working capital.

Shortest term

possible, not to

exceed 6 years.

Check with local 

SBA District Office 

for locations of 

locally available 

intermediary 

lenders and then 

check with them.

Loans through 

non- profit lending 

organizations; 

technical assistance 

also provided.

Same as 7(a) – plus 

loans can be made 

to non-profit day 

care businesses.

Direct loans from 

nonprofit intermediary 

lenders; Fixed-rate

financing; Very 

small loan amounts; 

Technical assistance

available.
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 31

The U.S. government is the largest 

single purchaser of goods and services 

in the world, buying everything from 

armored tanks to paper clips. Every 

year, the federal government awards 

more than $500 billion in contracts, and 

a significant share of those contracts are 

specifically allotted to small businesses.

The SBA works with agencies 

to award at least 23 percent of all 

prime government contracts to small 

businesses, with specific statutory goals 

for small disadvantaged businesses, 

businesses that are women-owned 

or service-disabled veteran-owned, 

or businesses that are located in 

historically underutilized business zones 

(HUBZone).

The agency ensures that small 

businesses have access to long-lasting 

development opportunities, which 

means working with small businesses 

to help them stay competitive, as 

well as encouraging federal agencies 

to award more contracts to small 

businesses. The SBA features outreach 

programs, matchmaking events, and 

online training opportunities; and helps 

agencies identify opportunities for small 

businesses.

HOW GOVERNMENT 

CONTRACTING WORKS

Sealed bidding vs. Negotiation

There are two methods the 

government uses to purchase goods 

and services, sealed bidding and 

negotiation. The first method, sealed 

bidding, involves issuing an invitation 

for bid by a procuring agency. Under 

the sealed bidding method, a contract 

is usually awarded to the lowest priced 

bidder that can meet the quantity, 

quality and delivery requirements of 

the procurement. The second method, 

negotiation, involves issuing a request 

for proposal or request for quotation. 

The business with the best proposal in 

terms of technical content, price and 

other factors generally wins the contract.

Types of Contracts

Firm fixed price contracts place the 

responsibility for the costs and risk of 

loss on the contractor. Firm fixed price 

contracts do not permit any adjustment 

on the basis of the contractor’s costs 

during the performance of the contract. 

This type of contract is used in all sealed 

bid and some negotiated procurements. 

Cost reimbursement contracts provide 

for the payment of allowable costs 

incurred by the contractor, to the extent 

stated in the contract. The contract 

establishes a ceiling price, above which 

a contractor may not exceed without the 

approval of the contracting officer. Cost 

reimbursement contracts are used in 

research contracts that have commercial 

applicability.

Some contracts do not fit neatly 

into these two categories, such as 

time and material contracts (prices for 

hourly wages are fixed but the hours 

are estimated) and letter contracts 

(authorizes a contractor to begin work 

on an urgent requirement).

Small Business Set-Asides

A “set-aside” for small businesses 

reserves an acquisition exclusively for 

small business participation. There 

are two ways in which set-asides can 

be determined. First, if an acquisition 

of goods or services has an anticipated 

dollar value of at least $3,000 but not 

exceeding $150,000, it is automatically 

reserved for small businesses. The 

acquisition will be set aside only if the 

contracting officer determines there 

are two or more responsible small 

businesses that are competitive in 

terms of market prices, quality and 

delivery. Second, if an acquisition of 

goods or services is more than $150,000, 

and if it’s likely offers will be obtained 

from at least two responsible small 

businesses, and if awards will be made 

at fair market prices, the acquisition is 

reserved exclusively for small business. 

Reasonable expectations of small 

business competition may be evaluated 

using past acquisition history of an item 

or similar items.

There are several exceptions and 

unique rules for specific kinds of 

small businesses and industries. For 

R&D small business set-asides, there 

must be a reasonable expectation of 

obtaining from small businesses the 

best scientific and technological sources 

consistent with the demands of the 

proposed acquisition. For small business 

set-asides other than for construction 

services, any business proposing to 

furnish a product that it did not itself 

manufacture must furnish the product 

of a small business manufacturer 

unless the SBA has granted either a 

waiver or exception to this requirement. 

In industries where the SBA finds 

that there are no small business 

manufacturers, it may issue a waiver 

to the non-manufacturer rule. Waivers 

permit small businesses to provide any 

domestic firm’s product. 

Subcontracting

Subcontracting opportunities are 

a great resource for small businesses, 

especially to those not ready to bid as 

prime contractors. Experience gained 

from subcontracting with a federal 

prime contractor can better prepare 

businesses to bid for prime contracts.

Current regulations stipulate for 

contracts offering subcontracting 

opportunities over $650,000 for goods 

and services, or $1.5 million for 

construction, large business prime 

contractors must offer maximum 

practicable subcontracting opportunities 

to small businesses. Large business 

prime contractors must submit a 

subcontracting plan describing how they 

will successfully subcontract to small 

businesses.

To find subcontracting opportunities, 

a list of Federal prime contractors is 

available through SBA’s Subcontracting 

Directory at www.sba.gov and www.

gsa.gov. Research the list of prime 

contractors and determine which are 

best suited for your business. Develop 

a marketing strategy, and then contact 

the Small Business Liaison Officer 

listed for each prime to schedule an 

appointment.

Applying for Government Contracts

CONTRACTING

CONTRACTING
32 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

SBA CONTRACTING 

PROGRAMS

HUBZONE

The HUBZone program helps small 

businesses located in distressed urban 

and rural communities, known as 

Historically Underutilized Business 

Zones, gain access to federal set-aside 

contracts and sole source contracts, as 

well as a price evaluation preference 

in full-and-open contract competitions. 

There is a statutory requirement that 

HUBZone small business concerns be 

awarded not less than 3 percent of the 

total value of all prime contract awards. 

The HUBZone program also establishes 

preference for award of federal contracts 

to small businesses in these areas. To 

qualify for the program, a business 

must meet the following criteria:

• It must be a small business by SBA 

size standards 

• It must be owned and controlled at 

least 51 percent by U.S. citizens, or a 

Community Development Corporation, 

an agricultural cooperative, or an 

Indian tribe 

• Its principal office must be located 

within an “Historically Underutilized 

Business Zone,” which includes lands 

considered “Indian Country” and 

military facilities closed by the Base 

Realignment and Closure Act 

• At least 35 percent of its employees 

must reside in a HUBZone.

 Existing businesses that choose to 

move to qualified areas are eligible 

to apply for certification. To fulfill 

the requirement that 35 percent of 

a HUBZone firm’s employees reside 

in a HUBZone, employees must live 

in a primary residence at a place for 

at least 180 days, or as a currently 

registered voter, and with intent to live 

there indefinitely.

SBA is responsible for:

• Determining whether or not individual 

concerns are qualified HUBZone small 

business concerns;

• Maintaining a list of qualified 

HUBZone small business concerns 

for use by acquisition agencies in 

awarding contracts under the program;

• Adjudicating protests and appeals 

of eligibility to receive HUBZone 

contracts.

For additional information, visit 

www.sba.gov/hubzone.

8(a) BUSINESS DEVELOPMENT 

PROGRAM

The 8(a) Business Development 

program is a nine year program 

established to assist eligible socially and 

economically disadvantaged individuals 

develop and grow their businesses. 

Business development assistance 

includes one-to-one counseling, training 

workshops, and other management and 

technical guidance. There is a statutory 

requirement that small disadvantaged 

business concerns be awarded not less 

than 5 percent of the total value of all 

prime contract awards. All firms that 

become eligible for SBA’s 8(a) business 

development assistance are also 

considered small disadvantaged business 

concerns for federal contracting. 

To be eligible for the 8(a) Business 

Development program, a business must 

meet the following criteria:

• It must be a small business by SBA 

size standards;

• It must be owned (at least 51 percent) 

by one or more individuals who 

qualify as socially and economically 

disadvantaged, and who are US 

citizens of good character;

• It must be controlled, managed, and 

operated by one or more individuals 

who qualify as disadvantaged, and;

• It must demonstrate potential for 

success (generally by being in business 

for at least two full years) before 

applying.

Socially disadvantaged individuals 

are those who have been subjected to 

racial or ethnic prejudice or cultural 

bias because of their identity as a 

member of a group without regard 

to their individual capabilities. The 

following individuals are presumed 

to be socially disadvantaged: Black 

Americans, Native Americans, Alaska 

Natives or Native Hawaiians, Hispanic 

Americans, Asian Pacific Americans, 

and Subcontinent Asian Americans. An 

individual who is not a member of one of 

these groups must establish individual 

social disadvantage by a preponderance 

To be eligible to bid on a federal 

contract, you must know your 

business. Answer the following three 

questions:

1. Are you a small business?

Is your small business:

• Organized for profit?

• Located in the U.S.?

• Operated primarily within the U.S. 

or making a significant contribution 

to the U.S. economy through 

payment of taxes or use of American 

products, materials, or labor?

• Independently owned and operated? 

• Not dominant in the field of 

operation in which it is bidding for 

government contracts?

• A sole proprietorship, partnership, 

corporation, or any other legal form?

If the first six criteria apply to your 

business, ask yourself the second 

important question to find out if 

your business meets size standard 

requirements. 

2. What is the size standard for your 

business?

Size standards are used to 

determine whether a business is small 

or “other than small.” Size standards 

vary depending upon the industry. To 

determine the size standard for your 

business, you will need a NAICS code. 

Every federal agency uses these codes 

when considering your business. To 

determine your NAICS code, go to 

www.census.gov/eos/www/naics/.

Some SBA programs require their 

own unique size standards. To find out 

more about these requirements and 

other size standard information, go to

www.sba.gov/size.

3. Do you fall under a specific 

certification?

Under the umbrella of “small 

business,” SBA has outlined several 

specific certifications that businesses 

may fall under. These certifications are 

divided into two categories: 

SBA-Certified and Self-Certified.

The SBA-Certified Programs were 

created to assist specific businesses 

in securing federal contracts and 

therefore can only be issued by SBA 

administrators. For the Self-Certified 

Programs, you can determine for 

yourself if your business meets the 

requirements by referring to the 

Federal Acquisition Regulations (FAR).

Just as Congress has given 

federal agencies a goal of procuring 

23 percent of federal contracts from 

small businesses, so too must federal 

agencies meet specific contracting goals 

for other categories of small firms. 

These goals are:

• 5 percent of contracts go to Small 

Disadvantaged Businesses

• 5 percent go to Women-Owned Small 

Businesses

• 3 percent go to Service-Disabled 

Veteran-Owned Small Businesses

• 3 percent go to HUBZone Small 

Businesses 

Federal agencies have a strong 

incentive to fulfill these contracting 

goals. You should apply for those 

SBA-Certified and Self-Certified 

programs for which you qualify to take 

advantage of contracting opportunities.

What You Should Know About Your Business
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 33

of evidence. Economically disadvantaged 

individuals are socially disadvantaged 

individuals whose ability to compete 

in the free-enterprise system has been 

impaired due to diminished capital 

and credit opportunities as compared 

to others in the same or similar 

line of business who are not socially 

disadvantaged.

Firms owned by Alaska Native 

Corporations, Indian Tribes, Native 

Hawaiian Organizations, and 

Community Development Corporations 

can also apply to the SBA for 8(a) 

business development assistance.

So that approved firms can obtain 

training, counseling, and business 

development assistance, SBA designates 

a staff person at a local SBA District 

Office - geographically near the business.

SBA is responsible for:

• Determining whether a business 

qualifies for the 8(a) Business 

Development program

• Determining whether a business 

continues to qualify, during the nineyear term.

• Approving Mentor/Protégé agreements 

between 8(a) firms and large 

businesses.

For additional information, visit 

www.sba.gov/8a.

SMALL DISADVANTAGED 

BUSINESS 

A Small Disadvantaged Business 

(SDB) is defined as a small business 

that is at least 51 percent owned and 

controlled by one or more individuals 

who are socially and economically 

disadvantaged.

There is a federal government-wide 

goal of awarding at least 5 percent of 

prime contracting dollars to SDBs each 

year. Large prime contractors must also 

establish a subcontracting goal for SDBs 

in their Subcontracting Plans.

Firms self-certify as SDB without 

submitting any application to SBA; 

however, firms approved by SBA into 

the 8(a) Business Development program 

are automatically certified as an SDB. 

To self-certify, firms should update 

their Central Contractor Registration 

(CCR) profiles and their Online 

Representations and Certifications 

Application (ORCA) profiles, at 

www.bpn.gov/ccr/ and https://orca.bpn.gov, 

making sure that both profiles reflect 

their SDB status.

SERVICE-DISABLED VETERANOWNED SMALL BUSINESS 

The Service-Disabled VeteranOwned Small Business (SDVOSB) 

program has a federal government-wide 

goal of awarding at least 3 percent 

of prime and subcontracting dollars 

to Service-Disabled Veteran-Owned 

Small Businesses each year. Large 

prime contractors must also establish a 

subcontracting goal for VeteranOwned Small Businesses in their 

Subcontracting Plans. These 

subcontracting goals are reviewed at 

time of proposal by both the contracting 

officer and SBA prior to the award of a 

contract.

When a business’s SDVOSB selfcertification is challenged, SBA 

determines if the business meets 

the status, ownership, and control 

requirements. The SDVOSB Protest is 

administered by SBA to ensure that only 

businesses owned by service-disabled 

veterans receive contracts reserved 

exclusively for them. 

To determine your eligibility, 

contact your local veterans business 

development officer, visit the 

various program websites, or contact 

SBA’s Office of Veterans Business 

Development at www.sba.gov/vets.

WOMEN-OWNED SMALL 

BUSINESS FEDERAL CONTRACT 

PROGRAM

On October 7, 2010, the SBA 

published a final rule effective February 

4, 2011, aimed at expanding federal 

contracting opportunities for womenowned small businesses. The WomenOwned Small Business Federal Contract 

program authorizes contracting officers 

to set aside certain federal contracts for 

eligible women-owned businesses and 

economically disadvantaged womenowned small businesses. 

To be eligible, a firm must be at least 

51 percent owned and controlled by one 

or more women. The women must be 

U.S. citizens. The firm must be “small” 

in its primary industry in accordance 

with SBA’s size standards for that 

industry. To be deemed “economically 

disadvantaged” its owners must 

demonstrate economic disadvantage in 

accordance with the requirements set 

forth in the final rule. For additional 

information, visit www.sba.gov/wosb.
34 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

Once you have identified the 

important information regarding your 

business, it is time to start the process of 

procuring a government contract. 

1. Identify your DUNS (Data Universal 

Numbering System) number

To register your business, obtain a DUNS

number used to identify and track

millions of businesses. You can obtain

your free DUNS number when

registering with the CCR (Central

Contractor Registration) at www.ccr.gov

or by contacting Dun & Bradstreet at

www.dnb.com.

2. Identify your EIN 

(Employer Identification Number) 

An EIN, otherwise known as a federal tax

identification number, is generally

required of all businesses. For more

information, go to www.irs.gov.

3. Identify your NAICS (North American

Industry Classification) codes

The NAICS codes are used to classify the

industry a particular business occupies.

You will need at least one NAICS code to

complete your registration, but be sure to

list as many as apply. You may also add

or change NAICS codes at any time. To

find NAICS code, visit

www.census.gov/eos/www/naics/.

4. Identify your SIC (Standard Industrial

Classification) codes

The SIC codes are four-digit numbers

that are used to classify the industry a

particular business occupies. While

NAICS codes have largely replaced SIC

codes, you will still need to provide your

SIC code. SIC codes can be found at 

www.osha.gov/pls/imis/sicsearch.html.

5. Register with the CCR (Central

Contractor Registration) 

The CCR is an online federal 

government-maintained database of 

companies wanting to do business with 

the federal government. Agencies search 

the database for prospective vendors. The

CCR is at www.ccr.gov.

After completing registration, you will 

be asked to enter your small business 

profile information through the SBA 

Supplemental Page. The information 

will be displayed in the Dynamic Small 

Business Search.

Creating a profile in CCR and keeping 

it current ensures your firm has access 

to federal contracting opportunities. 

Entering your small business profile, 

including your business information and 

key word description, allows contracting 

officers, prime contractors, and buyers 

from state and local governments to 

learn about your company.

6. Use ORCA (Online Representations

and Certifications Application)

Prospective contractors must complete

(electronically or through submission of

paperwork) representations and

certifications for small business size and

program status as part of the process

that registers the business for federal

contracting opportunities. To make this

process easier for everyone involved, the

government developed ORCA, where

generally, businesses can complete all of

the paperwork online. To begin this

process, first register your firm in CCR,

then go to www.orca.bpn.gov.

7. Register with the GSA Schedule

The GSA (General Services

Administration) Multiple Award Schedule

(aka Federal Supply Schedule) is used by

GSA to establish long-term, governmentwide contracts with commercial firms.

Once these contracts are established,

government agencies can order the

supplies and services they need directly

from the firms through the use of an

online shopping tool. Becoming a GSA

schedule contractor increases your

opportunity for contracts across all levels

of government. Businesses interested in

becoming GSA schedule contractors

should review the information available

at www.gsa.gov/schedules.

8. Make Sure Your Business is

Financially Sound

This critical step is absolutely necessary

to make sure that your business is

financially prepared for the journey

ahead. Even if you are able to obtain a

government contract, you will not be

receiving all of the money at once. It

helps to have a clear plan of how your

business will stage the benefits of the

contract.

9. Search FedBizOpps for contracting

opportunities

Federal Business Opportunities, or

FedBizOpps, is an online service operated

by the federal government that

announces available business

opportunities. FedBizOpps helps identify

the needs of federal agencies and

available contracting opportunities. To

begin searching for contracting

opportunities, go to www.fbo.gov.

10. Marketing Your Business

Registering your business is not enough

to obtain a federal contract; you will need

to market your business to attract federal

agencies. Tips for good marketing are:

• Determine which federal agencies buy 

your product or service, and 

get to know them;

• Identify the contracting procedures of 

those agencies;

• Focus on opportunities in your niche 

and prioritize them.

Although not required, you may 

want to obtain a PSC (Product Services 

Code) and/or a FSC (Federal Supply 

Classification). These codes provide 

additional information about the 

services and products your business 

offers.

GETTING STARTED IN CONTRACTING

The following federal procurement 

resources may also be of assistance:

• The Certificates of Competency 

program allows a small business, that 

is the apparent successful offeror, 

to appeal a contracting officer’s nonresponsibility determination that it is 

unable to fulfill the requirements of 

a specific government contract. The 

SBA will conduct a detailed review 

of the firm’s technical and financial 

capabilities to perform on the 

contract. If the business demonstrates 

the capability to perform, the SBA 

issues a Certificate of Competency 

to the contracting officer, requiring 

award of that contract to the small 

business.

• PCRs (Procurement Center 

Representatives) and CMRs 

(Commercial Marketing 

Representatives): PCRs work to 

increase the small business share 

of federal procurement awards. 

CMRs offer many services to small 

businesses, including counseling on 

how to obtain subcontracts. To find a 

PCR or CMR near you, go to 

 www.sba.gov/sba-direct.

• PTACs (Procurement Technical 

Assistance Centers): PTACs 

provide assistance to businesses 

that want to sell products and 

services to federal, state, and/or local 

government. To find a PTAC in your 

state, go to www.aptac-us.org/new/.

• Department of Defense (The DoD is 

the largest purchaser of goods from 

small businesses): www.acq.osd.mil/

sadbu

• Office of Federal Procurement Policy: 

www.whitehouse.gov/omb/procurement

• Acquisition Forecast:

 www.acquisition.gov/comp/procurement

 _forecasts/index.html

• Federal Supply Schedule (FSS): 

 www.gsa.gov

• GSA Center for Acquisition 

Excellence: www.gsa.gov/portal/

content/103487

ADDITIONAL PROCUREMENT RESOURCES
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 35

The Disaster Assistance 

Program is SBA’s largest 

direct loan program, and 

the only form of SBA 

assistance not limited to 

small businesses. SBA is responsible 

for providing affordable, timely and 

accessible financial assistance to 

homeowners, renters, businesses of all 

sizes and private, nonprofit organizations 

following declared disasters. By law, 

governmental units and agricultural 

enterprises are ineligible. 

The SBA offers two types of disaster 

loans—Physical and Economic Injury 

Disaster Loans.

Home Physical Disaster Loans up 

to $200,000 are available to eligible 

homeowners to repair or replace to 

its pre-disaster condition damaged or 

destroyed real estate not fully covered 

by insurance. Renters and homeowners 

alike may borrow up to $40,000 to repair 

or replace clothing, furniture, cars, 

appliances, etc., that were damaged or 

destroyed in the disaster.

Business Physical Disaster Loans up 

to $2 million are available to qualified 

businesses or private, nonprofit 

organizations of any size to help 

restore or replace damaged real estate, 

inventory, machinery, equipment and 

other business assets to its pre-disaster 

condition.

The SBA can also lend additional 

funds to homeowners and businesses 

to help with the cost of making 

improvements that protect, prevent 

or minimize the same type of disaster 

damage from occurring again.

Economic Injury Disaster Loans 

(EIDLs) are working capital loans 

available to qualified small businesses, 

private nonprofit organizations of all 

sizes and small agricultural cooperatives 

that suffered financial losses because 

of the disaster, regardless of physical 

damage. The SBA can lend up to $2 

million to provide the necessary working 

capital to help small businesses pay fixed 

debts, payroll, accounts payable and 

other bills that could have been covered 

had the disaster not occurred. The loan 

is not intended to replace lost sales or 

profits. The combined limit for economic 

injury and physical damage assistance 

for businesses is $2 million. 

Military Reservist Economic Injury 

Disaster Loans (MREIDLs) are working 

capital loans for small businesses 

adversely affected when an essential 

employee is called up to active duty 

by the National Guard or Reserves. 

An “essential employee” is defined 

as an individual (whether or not the 

owner of the small business) whose 

managerial or technical skill is critical 

to the successfully daily operation 

of the business. The loan limit is $2 

million, and the funds may be used to 

pay necessary operating expenses as 

they mature until operations return to 

normal after the essential employee is 

released from active military duty. The 

MREIDLs cannot be used to replace lost 

profits.

For all disaster loans, SBA can only 

approve loans to applicants having a 

credit history acceptable to SBA and 

who also show the ability to repay the 

loans. The loan terms are established 

in accordance with the borrower’s 

repayment ability. The law gives SBA 

several powerful tools to make disaster 

loans affordable: low interest rates 

(around 4 percent), long terms (up to 

30 years), and refinancing of prior liens 

(in some cases). As required by law, the 

interest rate for each loan is based on 

SBA’s determination of whether the 

applicant has credit available elsewhere 

(the ability to borrow or use their own 

resources to recover after the disaster). 

More information on all of SBA’s 

disaster assistance programs, including 

information for military reservists, is 

available at www.sba.gov/disaster.

Disaster Preparedness

For small businesses, surviving a 

disaster doesn’t begin with clearing the 

debris and returning to work.

With proper planning, surviving 

begins long before the disaster strikes—

or before active-duty orders are received. 

Your planning should include insurance 

coverage, emergency power, protection 

of company records, fire safety, medical 

emergencies, taking care of your 

employees and continuity planning – 

how your business will continue during 

and after the emergency or disaster.

Starting is as easy as clicking on the 

disaster preparedness page of SBA’s 

website at www.sba.gov/content/disasterpreparedness.

The page provides links to resources 

to help you put together your own 

emergency plan, preparedness tips, 

and fact sheets about SBA recovery 

assistance for homeowners, renters, 

businesses of all sizes and private, 

nonprofit organizations. 

Additionally, to help small businesses 

with their preparedness planning, SBA 

has teamed up with Agility Recovery 

Solutions to offer business continuity 

strategies for entrepreneurs via their 

“PrepareMyBusiness” website. In 

addition to offering practical disaster 

preparedness tips, Agility is the co-host 

(with SBA) of a monthly disaster 

planning webinar for business owners. 

Previous webinar topics have included 

discussions on crisis communications, 

testing your recovery plan, and using 

social media to enhance business 

recovery. Visit www.preparemybusiness.org

to get the schedule for future webinars, 

view archived webinars, and for more 

disaster planning tips. 

As small businesses are leading 

America’s economic recovery, many of 

them are investing time and money 

into their plans to grow and create 

jobs. Developing a strong disaster 

preparedness plan should be a critical 

and integral piece of those efforts. 

Planning for a disaster is the best way of 

limiting its effects.

Additional Resources 

The SBA has partnered with the 

American Red Cross to increase 

awareness in the business community 

about the Red Cross Ready RatingTM 

program. Ready Rating 

(www.readyrating.org) is a free, self-paced, 

web-based membership program that 

helps a business measure its ability 

to deal with emergencies, and gives 

customized feedback on how to improve 

those efforts.

Additional information on developing 

an emergency plan is available at the 

federal government’s preparedness 

website www.ready.gov.

The Institute for Business and Home 

Safety (www.disastersafety.org ) has useful 

tips on protecting your home or business.

SBA DISASTER ASSISTANCE

Knowing the Types of Assistance Available for Recovery

DISASTER
36 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

OFFICE OF ADVOCACY

The SBA’s Office of Advocacy, the 

“small business watchdog” of the 

government, examines the role and 

status of small business in the economy 

and independently represents the 

views of small business to federal 

agencies, Congress, the President and 

federal appellate courts as friends 

of the court. Advocacy compiles and 

interprets statistics on small business 

and is the primary entity within the 

federal government to disseminate small 

business data.

Headed by the Chief Counsel for 

Advocacy, the office also funds outside 

research of small business issues 

and produces numerous publications 

to inform policy makers about the 

important role of small business 

in the economy and the impact of 

government policies on small business. 

In addition, the office monitors federal 

agency compliance with the Regulatory 

Flexibility Act – the law that requires 

agencies to analyze the impact of their 

proposed regulations on small entities 

(including small businesses, small 

governmental jurisdictions and small 

nonprofit organizations), and consider 

regulatory alternatives that minimize 

the economic burden on small entities.

Advocacy’s mission is enhanced by 

a team of regional advocates, located 

in the SBA’s 10 regions. They are 

Advocacy’s direct link to small business 

owners, state and local government 

entities, and organizations that 

support the interests of small entities. 

The regional advocates help identify 

regulatory concerns of small business 

by monitoring the impact of federal and 

state policies at the grassroots level. 

Learn more about the Office of 

Advocacy at www.sba.gov/advocacy.

OFFICE OF THE NATIONAL 

OMBUDSMAN

If excessive fines, penalties or 

unfair regulatory enforcement by 

federal agencies are problems for your 

small business, you have a voice in 

Washington, D.C. through the SBA’s 

Office of the National Ombudsman.

The Ombudsman receives 

comments regarding federal regulatory 

enforcement from small business 

owners, nonprofit organizations and 

small government entities. Comments 

are forwarded to federal agencies for 

review, and in some cases fines may 

be lowered or eliminated and decisions 

changed in favor of the small business 

owners. Each year the National 

Ombudsman files a report with the 

U.S. Congress on the responsiveness 

of federal agencies regarding their 

actions of regulatory and compliance 

enforcement on small businesses.

To request help, send the National 

Ombudsman a complete Federal Agency 

Comment Form. You may do this 

by fax at 202-481-5719; online at the 

Ombudsman’s Web page: 

www.sba.gov/ombudsman; or by mail at 

409 Third Street S.W., Mail Code 2120, 

Washington, DC 20416.

The Ombudsman also coordinates 

10 Regional Regulatory Fairness 

Boards which meet regularly to receive 

comments about federal regulations 

affecting small businesses.

Learn more about the National 

Ombudsman from the Web site above or 

call 888-REG-FAIR.

ADVOCACY AND OMBUDSMAN

Watching out for small business interests

ADVOCACY AND OMBUDSMAN
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 37

Even if you are running a 

small home-based business, 

you will have to comply with 

many of the local, state, and 

federal regulations. Avoid the 

temptation to ignore regulatory details. 

Doing so may avert some red tape in the 

short term, but could be an obstacle as 

your business grows. Taking the time 

to research the applicable regulations is 

as important as knowing your market. 

Bear in mind that regulations vary by 

industry. If you’re in the food-service 

business, for example, you will have to 

deal with the health department. If you 

use chemical solvents, you will have 

environmental compliances to meet. 

Carefully investigate the regulations 

that affect your industry. Being out of 

compliance could leave you unprotected 

legally, lead to expensive penalties and 

jeopardize your business.

BUSINESS LICENSES

There are many types of licenses, both 

state and local as well as professional. 

Depending on what you do and where 

you plan to operate, your business may 

be required to have various state and/

or municipal licenses, certificates or 

permits. 

Licenses are typically administered by 

a variety of state and local departments. 

Consult your state or local government 

for assistance. 

Day Care Licenses

Alabama Department of Human Resources

1321 - 5th Ave. S.

Birmingham, AL 35202

205-918-5100

www.dhr.state.al.us 

FICTITIOUS BUSINESS NAME

Registering your business name, after 

doing a search to make sure that it is 

not already in use, protects you from 

others who might want to use the same 

name. For more information, contact the 

county clerk’s office in the county where 

your business is based. If you are a 

corporation, you’ll need to check with the 

state.

Alabama Secretary of State

Corporation Division

P.O. Box 5616 

Montgomery, AL 36103-5616

334-242-5324

www.sos.state.al.us

BUSINESS INSURANCE

Like home insurance, business 

insurance protects your business against 

fire, theft and other losses. Contact your 

insurance agent or broker. It is prudent 

for any business to purchase a number 

of basic types of insurance. Some types 

of coverage are required by law, others 

simply make good business sense. The 

types of insurance listed below are 

among the most commonly used and are 

merely a starting point for evaluating 

the needs of your business.

Liability Insurance – Businesses 

may incur various forms of liability in 

conducting their normal activities. One 

of the most common types is product 

liability, which may be incurred when 

a customer suffers harm from using 

the business product. There are many 

other types of liability, which are 

frequently related to specific industries. 

Liability law is constantly changing. 

An analysis of your liability insurance 

needs by a competent professional is 

vital in determining an adequate and 

appropriate level of protection for your 

business.

Property – There are many different 

types of property insurance and levels 

of coverage available. It is important 

to determine the property you need 

to insure for the continuation of your 

business and the level of insurance you 

need to replace or rebuild. You must also 

understand the terms of the insurance, 

including any limitations or waivers of 

coverage.

Business Interruption – While 

property insurance may pay enough 

to replace damaged or destroyed 

equipment or buildings, how will you 

pay costs such as taxes, utilities and 

other continuing expenses during the 

period between when the damage occurs 

and when the property is replaced? 

Business Interruption (or “business 

income”) insurance can provide sufficient 

funds to pay your fixed expenses during 

a period of time when your business is 

not operational.

“Key Man” – If you (and/or any 

other individual) are so critical to 

the operation of your business that it 

cannot continue in the event of your 

illness or death, you should consider 

“key man” insurance. This type of 

policy is frequently required by banks 

or government loan programs. It also 

can be used to provide continuity in 

operations during a period of ownership 

transition caused by the death, 

incapacitation or absence due to a Title 

10 military activation of an owner or 

other “key” employee.

Automobile – It is obvious that 

a vehicle owned by your business 

should be insured for both liability and 

replacement purposes. What is less 

obvious is that you may need special 

insurance (called “non-owned automobile 

coverage”) if you use your personal 

vehicle on company business. This 

policy covers the business’ liability for 

any damage which may result for such 

usage.

Officer and Director – Under most 

state laws, officers and directors of a 

corporation may become personally 

liable for their actions on behalf of the 

company. This type of policy covers this 

liability.

Home Office – If you are establishing 

an office in your home, it is a good idea 

to contact your homeowners’ insurance 

company to update your policy to include 

coverage for office equipment. This 

coverage is not automatically included in 

a standard homeowner’s policy.

ADDITIONAL RESOURCES

Taking care of start up logistics

ADDITIONAL RESOURCES
38 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

TAXES

Taxes are an important and complex 

aspect of owning and operating a 

successful business. Your accountant, 

payroll person, or tax advisor may be 

very knowledgeable, but there are still 

many facets of tax law that you should 

know. The Internal Revenue Service is a 

great source for tax information.

Small Business/Self-Employed Tax 

Center: www.irs.gov/businesses/small/ 

index.html

When you are running a business, you 

don’t need to be a tax expert. However, 

you do need some tax basics. IRS Small 

Business/Self-Employed Tax Center 

gives you the information you need to 

stay tax compliant so your business can 

thrive. 

Small Business Forms and Publications

www.irs.gov/businesses/small/article/0,,id= 

99200,00.html

Download multiple small business and 

self-employed forms and publications.

FEDERAL PAYROLL TAX 

(EIN NUMBERS)

An Employer Identification Number 

(EIN),also known as a Federal Employer 

Identification Number (FEIN), is used 

to identify a business entity. Generally, 

businesses need an EIN to pay federal 

withholding tax. 

You may apply for an EIN in various 

ways, one of which is to apply online. 

www.irs.gov/businesses/small/article/0,,id= 

102767,00.html. This is a free service 

offered by the Internal Revenue Service. 

Call 800-829-1040 if you have questions. 

You must check with your state to 

determine if you need a state number or 

charter.

FEDERAL 

SELF-EMPLOYMENT TAX

Every employee must pay Social 

Security and Medicare coverage. If you 

are self-employed, your contributions are 

made through the self-employment tax. 

The IRS has publications, counselors 

and workshops available to help you sort 

it out. For more information, contact the 

IRS at 800-829-1040 or www.irs.gov.

Business Tax Information

 If you plan to hire employees you 

are also required to obtain a Federal 

Employee Identification Number from 

the IRS. To obtain the registration 

form and reference documents, contact 

the IRS at 800-829-1040 or visit their 

website: www.irs.gov/businesses/small/ 

index.html for complete information. For 

more information, contact:

Alabama Department of Revenue

P.O. Box 327480

Montgomery, AL 36132-7710

www.ador.state.al.us

State Withholding

334-242-1300 • 334-242-0112 Fax

Business Privilege Tax Division

334-353-7923

Corporate Tax Division

334-242-1200

SALES TAX EXEMPTION 

CERTIFICATE

If you plan to sell products, you will 

need a Sales Tax Exemption Certificate. 

It allows you to purchase inventory, or 

materials, which will become part of the 

product you sell, from suppliers without 

paying taxes. It requires you to charge 

sales tax to your customers, which you 

are responsible for remitting to the 

state. You will have to pay penalties if 

it is found that you should have been 

taxing your products and now owe back 

taxes to the state. For information on 

sales tax issues, contact your state’s 

government.

Sales & Use Tax Division

P.O. Box 327710

Montgomery, AL 36132-7710

334-242-1490

www.ador.state.al.us 

FEDERAL INCOME TAX

Like the state income tax, the method 

of paying federal income taxes depends 

upon your legal form of business.

Sole Proprietorship: You must file 

IRS Federal Form Schedule C along 

with your personal Federal Income 

Tax return (Form 1040) and any other 

applicable forms pertaining to gains or 

losses in your business activity.

Partnership: You must file a Federal 

Partnership return (Form 1065). This 

is merely informational to show gross 

and net earnings of profit and loss. Also, 

each partner must report his share of 

partnership earnings on his individual 

Form 1040 based on the information 

from the K-1 filed with the Form 1065.

Corporation: You must file a Federal 

Corporation Income Tax return (Form 

1120). You will also be required to report 

your earnings from the corporation 

including salary and other income such 

as dividends on your personal federal 

income tax return (Form 1040).

FEDERAL PAYROLL TAX

Federal Withholding Tax: Any 

business employing a person must 

register with the IRS and acquire an 

EIN and pay federal withholding tax at 

least quarterly. File Form SS-4 with the 

IRS to obtain your number and required 

tax forms. Call 800-829-3676 or 

800-829-1040 if you have questions.

IRS WEB PRODUCTS FOR 

SMALL BUSINESSES

For the most timely and up-to-date 

tax information, go to www.irs.gov/ 

businesses/small/index.html. 

VIRTUAL SMALL BUSINESS 

WORKSHOP

www.tax.gov/virtualworkshop/

The Virtual Small Business Tax 

Workshop is the first of a series of video 

products designed exclusively for small 
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 39

business taxpayers. This workshop helps 

business owners understand federal tax 

obligations. The Virtual Small Business 

Workshop is available on CD 

www.irs.gov/businesses/small/article/0,,id=

101169,00.html and online 

www.irsvideos.gov/virtualworkshop/ if you 

are unable to attend a workshop in 

person. Small business workshops are 

designed to help the small business 

owner understand and fulfill their 

federal tax responsibilities. Workshops 

are sponsored and presented by IRS 

partners who are federal tax specialists. 

Workshop topics vary from a general 

overview of taxes to more specific topics 

such as recordkeeping and retirement 

plans. Although most are free, some 

workshops have fees associated with 

them. Fees for a workshop are charged 

by the sponsoring organization, not the 

IRS.

The IRS’s Virtual Small Business 

Tax Workshop is an interactive 

resource to help small business owners 

learn about their federal tax rights 

and responsibilities. This educational 

product, available online and on CD, 

consists of nine stand-alone lessons 

that can be selected and viewed in any 

sequence. A bookmark feature makes it 

possible to leave and return to a specific 

point within the lesson. Users also have 

access to a list of useful online references 

that enhance the learning experience by 

allowing them to view references and 

the video lessons simultaneously. 

Tax Calendar for Small Businesses 

and Self-Employed (Publication 1518)

www.irs.gov/businesses/small/article/0,,id= 

176080,00.html

The Tax Calendar for Small 

Businesses and Self-Employed contains 

useful information on general business 

taxes, IRS and SSA customer assistance, 

electronic filing and paying options, 

retirement plans, business publications 

and forms, common tax filing dates, and 

federal legal holidays.

SOCIAL SECURITY CARDS

All employees must have a social 

security card. It must be signed by its 

owner, and you should always ask to 

see and personally record the social 

security number. Failure to do so may 

cause your employee to lose benefits and 

considerable trouble for yourself in back 

tracking to uncover the error.

Each payday, your employees must 

receive a statement from you telling 

them what deductions were made 

and how many dollars were taken out 

for each legal purpose. This can be 

presented in a variety of ways, including 

on the check as a detachable portion 

or in the form of an envelope with the 

items printed and spaces for dollar 

deductions to be filled in.

EMPLOYEE CONSIDERATIONS 

Taxes

If you have any employees, including 

officers of a corporation but not the sole 

proprietor or partners, you must make 

periodic payments towards, and/or file 

quarterly reports about payroll taxes 

and other mandatory deductions. You 

may contact (for information, assistance 

and forms.)

Social Security Administration 

800-772-1213

www.ssa.gov

Federal Withholding 

U.S. Internal Revenue Service

800-829-1040

www.irs.gov

Social Security’s Business Services 

Online

The Social Security Administration 

now provides free electronic services 

online at www.socialsecurity.gov/employer/. 

Once registered for Business Services 

Online, business owners or their 

authorized representative can:

• file W-2s online; and

• verify Social Security Numbers 

through the Social Security Number 

Verification Service, used for all 

employees prior to preparing and 

submitting Forms W-2.

Health Insurance

Compare plans in your area at 

www.healthcare.gov.

Employee Insurance

If you hire employees you may be 

required to provide unemployment or 

workers’ compensation insurance. For 

more information, contact one of the 

following:

Employee Insurance

Commissioner of Insurance

State of Alabama

P.O. Box 303351

Montgomery, AL 36130

334-269-3550 • www.aldoi.gov

Unemployment Compensation Insurance

334-242-8025 • 334-242-8258 Fax

www.dir.state.al.us/uc

Worker’s Compensation Division

649 Monroe St.

Montgomery, AL 36130

334-353-0990 or 800-528-5166

334-353-8262 Fax

www.dir.alabama.gov/wc

WORKPLACE DISABILITY 

PROGRAMS

Americans with Disabilities Act 

(ADA): For assistance with the ADA, call 

800-669-3362 or visit www.ada.gov.

U.S. CITIZENSHIP AND 

IMMIGRATION SERVICES

The Federal Immigration Reform and 

Control Act of 1986 requires employers 

to verify employment eligibility of 

new employees. The law obligates 

an employer to process Employment 

Eligibility Verification Form I-9. The 

U.S. Citizenship and Immigration 

Services Office of Business Liaison offers 

a selection of information bulletins and 

live assistance through the Employer 

Hotline. For forms call 800-870-3676, for 

the Employer Hotline call 800-357-2099.

E-Verify: Employment Eligibility 

Verification

E-Verify, operated by the Department 

of Homeland Security in partnership 

with the Social Security Administration, 

is the best--and quickest--way for 

employers to determine the employment 

eligibility of new hires. It is a safe, 

simple, and secure Internet-based 

system that electronically verifies the 

Social Security number and employment 

eligibility information reported on Form 

I-9. E-Verify is voluntary in most states 

and there is no charge to use it.

If you are an employer or employee 

and would like more information about 

the E-Verify program, please visit 

www.dhs.gov/E-Verify or contact our 

Customer Support staff: 1-888-464-4218 

Monday – Friday 8 am – 5 pm.

E-mail: e-verify@dhs.gov

SAFETY & HEALTH 

REGULATIONS

All businesses with employees 

are required to comply with state 

and federal regulations regarding 

the protection of employees. The 

Occupational Safety and Health 

Administration outlines specific health 

and safety standards adopted by the 

U.S. Department of Labor. For more 

information, contact: 

Federal Occupational Safety 

& Health Administration

Department of Labor

820 First St. N.E.

Washington, DC 20020

866-487-2365 National Contact Center

www.dol.gov
40 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al

Occupational Safety &

Health Administration (OSHA)

Birmingham Area Office

950 22nd St. N., Ste. 1250

Birmingham, AL 35203

205-731-1534 • 205-731-0504 Fax

www.osha.gov

Mobile Area Office

1141 Montlimar Dr., Ste. 1006

Mobile, AL 36609

251-441-6131 • 251-441-6396 Fax

U.S. Department of Labor

P.O. Box 303500

Montgomery, AL 36130-3500

334-242-3460 • 334-240-3417 Fax

www.ala.labor.state.al.us 

U.S. Department of Labor

Wage and Hour Division

2015 N. 2nd Ave.

Birmingham, AL 35203

205-731-1305 • 205-731-3482 Fax

www.dol.gov

AL State Dept. of Industrial Relations

Tax Department

3460 3rd Ave. S.

Birmingham, AL 35202

205-254-1251 • 205-254-1264 Fax

Equal Employment 

Opportunity Commission (EEOC)

Ridgepark Place

1130 22nd St. S., Ste. 2000

Birmingham, AL 35205

205-212-2100 • 205-212-2101 Fax

www.eeoc.gov/birmingham

Alabama Department of 

Environmental Management 

Hazardous Substance Compliance

 Use of hazardous substances in 

businesses is highly regulated and there 

are heavy fines for non-compliance. If 

you need information about air, water, 

land uses, solid waste and hazardous 

materials call or write:

Ground Water/Office of 

Underwater Storage Tanks

1400 Coliseum Blvd.

Montgomery, AL 36110-2059

334-271-7700 • 334-270-5631 Fax

www.adem.state.al.us

Department of Environmental

Management

110 Vulcan Rd.

Homewood, AL 35209

205-942-6168 • 205-941-1603 Fax

www.adem.state.al.us

BUILDING CODES, PERMITS 

AND ZONING

It is important to consider zoning 

regulations when choosing a site for your 

business. You may not be permitted to 

conduct business out of your home or 

engage in industrial activity in a retail 

district. Contact the business license 

office in the city or town where the 

business is located.

BAR CODING

Many stores require bar coding on 

packaged products. Many industrial 

and manufacturing companies use bar 

coding to identify items they receive and 

ship. There are several companies that 

can assist businesses with bar-coding 

needs. You may want to talk with an 

SBDC, SCORE or WBC counselor for 

more information.

Federal Registration of Trademarks 

and Copyrights

Trademarks or service marks are 

words, phrases, symbols, designs or 

combinations thereof that identify 

and distinguish the source of goods. 

Trademarks may be registered at both 

the state and federal level. To register a 

federal trademark, contact:

U.S. Patent and Trademark Office:

P.O. Box 1450

Alexandria, VA 22313-1450

800-786-9199

www.uspto.gov/

Trademark Information Hotline

703-308-9000

Often, the paperwork and local regulations 

for importing can prevent foreign customers 

from buying from suppliers in the United 

States. Gilpin takes the mystery out of it and 

helps the customer in the process.

Gilpin has stayed ahead of the curve by 

utilizing new packaging containers and 

technology that need easy-open ends. The 

company is unique in that it takes advantage 

of new technology and products and makes 

those products available to its customers 

around the world. This export oriented 

program has paid off for the company’s 

owners and they continue to look at export 

markets as the primary way to grow and 

sustain the business. 

The Alabama International Trade Center has 

been a valued partner in the success of the 

company through the efforts of consultants 

like Carol DeCastra who assisted the 

company with an application for the SBA’s 

Export Working Capital Loan program to 

allow the company to expand jobs and its 

customer base. The AITC was instrumental 

in successfully nominating Gilpin and 

Company, Inc. as Alabama Small Business 

Exporter of the Year for 2011. 

Gilpin and Company, Inc. SUCCESS

STORY

continued from page 9
Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 41

There are many forms of legal 

structure you may choose for your 

business. Each legal structure offers 

organizational options with different 

tax and liability issues. We suggest you 

research each legal structure thoroughly 

and consult a tax accountant and/or 

attorney prior to making your decision.

The most common organizational 

structures are sole proprietorships, 

general and limited partnerships, “C” 

and “S” corporations and limited liability 

companies. 

If you’re uncertain which business 

format is right for you, you should 

discuss options with a business 

counselor or attorney.

Sole Proprietorship

One person operating a business as 

an individual is a sole proprietorship. 

It’s the most common form of business 

organization. Profits are taxed as 

income to the owner personally. The 

personal tax rate is usually lower than 

the corporate tax rate. The owner 

has complete control of the business, 

but faces unlimited liability for its 

debts. There is very little government 

regulation or reporting required with 

this business structure.

General Partnership

A partnership exists when two 

or more persons join together in 

the operation and management of a 

business. Partnerships are subject to 

relatively little regulation and are fairly 

easy to establish. A formal partnership 

agreement is recommended to address 

potential conflicts such as: who will be 

responsible for performing each task; 

what, if any, consultation is needed 

between partners before major decisions, 

and what happens when a partner 

dies. Under a general partnership each 

partner is liable for all debts of the 

business. Profits are taxed as income to 

the partners based on their ownership 

percentage.

Limited Partnership

Like a general partnership, a 

limited partnership is established by 

an agreement between two or more 

persons. However, there are two types 

of partners.

• A general partner has greater control 

in some aspects of the partnership. 

For example, only a general partner 

can decide to dissolve the partnership. 

General partners have no limits on the 

dividends they can receive from profit 

so they incur unlimited liability.

• Limited partners can only receive 

a share of profits based on the 

proportional amount on their 

investment, and liability is similarly 

limited in proportion to their 

investment.

“C” Corporation 

A “C” corporation is a legal entity 

created under state law by the filing of 

articles of incorporation. A corporation 

is a separate entity having its own 

rights, privileges and liabilities, apart 

from those of the individual(s) forming 

the corporation. It’s the most complex 

form of business organization and is 

comprised of shareholders, directors 

and officers. Since the corporation 

is a separate legal entity in its own 

right it can own assets, borrow money 

and perform business functions 

without directly involving the owners. 

Corporations are subject to more 

government regulation and offer the 

owners the advantage of limited liability, 

but not total protection from lawsuits.

Subchapter “S” Corporation

Subchapter “S” references a special 

part of the Internal Revenue Code that 

permits a corporation to be taxed as a 

partnership or sole proprietorship, with 

profits taxed at the individual, rather 

than the corporate rate. A business 

must meet certain requirements for 

Subchapter “S” status. Contact the IRS 

for more information.

LLCs and LLPs

The limited liability company is 

a relatively new business form. It 

combines selected corporate and 

partnership characteristics while 

still maintaining status as a legal 

entity distinct from its owners. As a 

separate entity it can acquire assets, 

incur liabilities and conduct business. 

It limits liability for the owners. The 

limited liability partnership is similar 

to the LLC, but it is for professional 

organizations.

BUSINESS ORGANIZATION: Choosing Your Business 

Structure

STATE REGISTRATION OF A 

TRADEMARK

Trademarks and service marks may 

be registered in a state. 

Caution: Federally registered 

trademarks may conflict with and 

supersede state registered business and 

product names. 

Patents

A patent is the grant of a property 

right to the inventor by the U.S. Patent 

and Trademark Office. It provides the 

owner with the right to exclude others 

from making, using, offering for sale or 

selling the patented item in the United 

States.

Additional information is provided in 

the publications, General Information 

Concerning Patents and other 

publications distributed through the 

U.S. Patent and Trademark Office. For 

more information, contact the: 

U.S. Patent and Trademark Office

800-786-9199 • www.uspto.gov

Other Resources

Better Business Bureau

www.bbb.org

Business Council of Alabama

P.O. Box 76

Montgomery, AL 36101-0076

334-834-6000

Government Printing Office

www.gpoaccess.gov

State Information Operator

334-242-8000

Copyrights

Copyrights protect original works of 

authorship including literary, dramatic, 

musical and artistic, and certain other 

intellectual works. Copyright does 

not protect facts, ideas and systems, 

although it may protect the way these 

things are expressed. For general 

information contact:

U.S. Copyright Office

U.S. Library of Congress

James Madison Memorial Building

Washington, DC 20559

202-707-9100 - Order Line

202-707-3000 - Information Line

www.copyright.gov
OTHER SOURCES OF 

ASSISTANCE

ALABAMA DEVELOPMENT OFFICE –TRADE 

DIVISION

Hilda Lockhart, Director

401 Adams Ave., 6th Fl.

Montgomery, AL 36130-4106

334-242-0442 • 334-353-1330 Fax

www.ado.alabama.gov/

trade.info@ado.alabama.gov 

ALABAMA INTERNATIONAL TRADE 

CENTER

Brian Davis, Director

500 Colonial Dr., 201 Bidgood Hall

The University of Alabama

Tuscaloosa, AL 35487

205-348-7621 • 205-348-6974 Fax

aitc@ua.edu

http://ww.aitc.ua.edu

BIRMINGHAM U.S. EXPORT ASSISTANCE 

CENTER

Nelda Segars, Senior Trade Specialist

U.S. Department of Commerce

950 22nd St. N., Ste. 773

Birmingham, AL 35203-5309

205-731-1331 • 205-731-0076 Fax

Office.Birmingham@trade.gov 

www.export.gov/alabama/

INTERNATIONAL TRADE RESOURCES

Department of Commerce 

International Trade Division

950 22nd St. N., Ste. 737

Birmingham, AL 35203

205-731-1331 • 205-731-0076 Fax

www.buyUSA.com/alabama

EXPORT LEGAL ASSISTANCE 

NETWORK (ELAN)

www.export-legal-assistance.org/

Get the answers to your export legal 

questions from the Export Legal Assistance 

Network (ELAN). Exports can mean big 

profits for a small business. But when 

you’re just starting out, tariffs, regulatory 

requirements, distributorship agreements 

and other legal matters can be a little 

intimidating. The Export Legal Assistance 

Network program can help you over these 

first hurdles.

EXPORT IMPORT BANK

811 Vermont Ave. N.W.

Washington, D.C. 20571

202-565-3200 • 202-565-3210 Fax

FOREIGN TRADE ZONES

www.foreign-trade-zone.com

BIRMINGHAM FOREIGN TRADE ZONE #98

Office of Economic Development

710 20th St. N., 3rd Fl., City Hall

Birmingham, AL 35203

205-259-2799

www.informationbirmingham.com

HUNTSVILLE FOREIGN TRADE ZONE #83

Huntsville-Madison County 

Airport Authority

2850 Wall Triana Hwy., Ste. 301

Huntsville, AL 35824

256-772-3105 • 256-772-3106 Fax

MOBILE FOREIGN TRADE ZONE #82

2062 Old Shell Rd.

Mobile, AL 36607

251-471-6725 • 251-471-6727 Fax

ANNISTON FOREIGN TRADE ZONE #211

c/o Foreign Trade Zone Corporation

P.O. Box 6241

Huntsville, AL 35824-0241

256-772-3105 (Huntsville)

MONTGOMERY FOREIGN TRADE 

ZONE #222

Montgomery Area Chamber of Commerce

P.O. Box 79

Montgomery, AL 36101

334-834-5200

U.S. CUSTOMS

www.customs.gov

PORT DIRECTOR

U.S. Customs Service

P.O. Box 320127

Birmingham, AL 35212

205-731-1464 • 205-731-8192 Fax

PORT DIRECTOR

U.S. Customs Service

P.O. Box 6085

Huntsville, AL 35824

256-772-3404 • 256-772-3404 Fax

PORT DIRECTOR

U.S. Customs Service

P.O. Box 2748

Mobile, AL 36652

251-441-5106 • 251-441-6061 Fax

Other Resources

STATE OF ALABAMA

DIVISION OF PURCHASING

RSA Union Bldg.

100 North Union St., Ste. 192

Montgomery, AL 36104

334-242-7250

CONSUMER RESPONSE CENTER

Federal Trade Commission

Consumer Response Center

600 Pennsylvania Ave. N.W., Rm. H-130

Washington, DC 20580

202-382-4357 • 202-362-2012 Fax

COUNCIL OF BETTER BUSINESS 

BUREAUS, INC.

1411 K St., N.W., 10th Fl.

Washington, DC 20005-3404

www.bbb.org

CHIEF POSTAL INSPECTOR

ISOSG

222 S. Riverdale Plaza, Ste. 1250

Chicago, IL 60606

www.usps.com/websites/depart/inspect

DRUG FREE WORKPLACE 

dandrew@inetdirect.net

www.drugfreeworkplace.com

TREE PLANTING INFORMATION

Neil Letson, State Urban Forestry Coord.

Alabama Cooperative Ext. System

P.O. Box 302550

Montgomery, AL 36130-2550

334-240-9360

www.aces.edu/ucf

nletson@aces.edu

ALABAMA NURSERY AND LANDSCAPE 

ASSOCIATION

James Harwell, Executive Director

P.O. Box 9

Auburn, AL 36831

334-821-5148 • 334-821-9111 Fax

www.alna.org

ALABAMA URBAN FORESTRY 

ASSOCIATION

205-226-7760 or 877-548-0440 Toll Free

205-226-3046 Fax

www.info@aufa.com

ALABAMA FORESTRY COMMISSION

P. O. Box 302550

Montgomery, AL 36130

334-240-9300 • 334-240-9390 Fax

800-436-8568 TTY

www.forestry.state.al.us

GENERAL CONTRACTORS 

License Board

2525 Fairlane Dr.

Montgomery, AL 36116

334-272-5030 • 334-395-5336 Fax

www.genconbd.state.al.us

BUREAU OF INDIAN AFFAIRS

1849 C St. N.W.

Washington, DC 20245

202-208-3711

NATIONAL ASSOCIATION OF 

SELF-EMPLOYED (NASE)

P.O. Box 612067, DFW Airport

Dallas, TX 75261-2067

800-232-6273

www.nase.org

BISHOP STATE COMMUNITY COLLEGE

Small Business Institute for Safety and 

Health Training

351 N. Broad St.

Mobile, AL 36603-5898

251-690-6801

www.bishop.edu

The Institute assists small businesses in 

creating and maintaining a safe and healthy 

workplace. This program was designed to 

provide site-specific guidance to employers 

with fewer than 250 employees.

STATE HEALTH PLANNING AND 

DEVELOPMENT AGENCY

P.O. Box 303025

Montgomery, AL 36130-3025

334-242-4103 • 334-242-4113 Fax

www.shpda.state.al.us

To establish a nursing home, a Certificate of 

Need must be obtained.

ALABAMA DEPARTMENT OF 

PUBLIC HEALTH

201 Monroe St., #1552

Montgomery, AL 36104

334-206-5200

www.adph.org

STATE OF ALABAMA DIVISION OF 

PURCHASING

100 N. Union St., Ste. 6

Montgomery, AL 36104

DIVISION OF ENFORCEMENT

Federal Trade Commission 

600 Pennsylvania Ave. N.W.

Washington, DC 20580

202-326-2222 • 202-326-3197 Fax

www.ftc.gov/bcp/rn

To receive a 5-digit Registration Number 

(RN) for labels for textile manufacturing.

ALABAMA BAR ASSOCIATION 

415 Dexter Ave.

Montgomery, AL 36104

334-269-1515 • 334-261-6310 Fax

www.alabar.org

If you need assistance in obtaining an 

attorney.

FOR COMPANIES TO QUALIFY TO ACCEPT 

CREDIT CARDS CONTACT:

Visa/Mastercard - Bank of Account

American Express 

800-445-2639

Discover Card 

800-347-6673

FOR AMERICAN WITH DISABILITIES ACT 

DOCUMENTS AND GENERAL INFO

800-514-0301 or 800-514-0383

(or for TDD access, use your local relay 

service)

www.ada.gov

NATIONAL FEDERATION OF 

INDEPENDENT BUSINESS (NFIB)

Alabama State Director: 

Rosemary Elebash

7550 Halycon Summit Dr.

Montgomery, AL 36117

334-264-2261

www.nfib.com

Regional Planning 

Commissions

The Regional Planning Commissions operate 

a revolving loan fund (RLF) for the purpose 

of assisting small business and industries in 

their start-up and expansion activities. The 

goal of the program is to create new jobs 

for citizens of Alabama. The RLF provides 

OTHER ASSISTANCE

42 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al
gap financing that is not available from 

commercial lenders. For more information, 

contact one of the following:

AL ASSOCIATION OF REGIONAL COUNCILS

Leigh Moore-Jones, State Director

5900 Carmichael Place

Montgomery, AL 36117

334-277-2221 • 334-277-3899 Fax

www.alarc.org

ALABAMA TOMBIGBEE REGIONAL 

COMMISSION

John Clyde Riggs, Director

107 Broad St.

Camden, AL 36726

334-682-4234 • 334-682-4205 Fax

CENTRAL ALABAMA REGIONAL PLANNING 

AND DEVELOPMENT COMMISSION

Bill Tucker, Executive Director

430 South Court St.

Montgomery, AL 36104

334-262-4300 • 334-262-6976 Fax

EAST ALABAMA REGIONAL PLANNING 

AND DEVELOPMENT COMMISSION

Bill Curtis, Executive Director

1130 Quintard Ave., Ste. 300/P.O. Box 2186

Anniston, AL 36202

800-239-6741 or 256-237-6741

256-237-6763 Fax

LEE/RUSSELL COUNCIL OF GOVERNMENTS

Suzanne G. Burnette, Exe. Director

2207 Gateway Dr.

Opelika, AL 36801

334-749-5264 • 334-749-6582 Fax

NORTH CENTRAL ALABAMA 

REGIONAL COUNCIL OF GOVERNMENTS

C. Ron Matthews, Executive Director

216 Suction St. S.E.

Decatur, AL 35601

256-355-4515 • 256-351-1380 Fax

NORTHWEST ALABAMA COUNCIL OF 

LOCAL GOVERNMENTS

Keith Jones, Executive Director

P.O. Box 2603

Muscle Shoals, AL 35662

256-389-0555 • 256-389-0599 Fax

REGIONAL PLANNING COMMISSION OF 

GREATER BIRMINGHAM

Charles Ball, Executive Director

1731 1st Ave. N., Ste. 200

Birmingham, AL 35203

205-251-8139 • 205-328-3304 Fax

SOUTH ALABAMA REGIONAL 

PLANNING COMMISSION

Russ Wimberly, Director

110 Beauregard St./P.O. Box 1665

Mobile, AL 36633

251-433-6541 • 251-433-6009 Fax

SOUTH CENTRAL ALABAMA 

DEVELOPMENT COMMISSION

Tyson Howard, Executive Director

5900 Carmichael Place

Montgomery, AL 36117

334-244-6903 • 334-270-0038 Fax

SOUTHEAST ALABAMA REGIONAL 

PLANNING AND DEVELOPMENT 

COMMISSION

Thomas B. Solomon, Executive Director

P.O. Box 1406

Dothan, AL 36302

334-794-4093 • 334-794-3288 Fax

TOP OF ALABAMA REGIONAL 

COUNCIL OF GOVERNMENTS

Bob Culver, Executive Director

5075 Research Dr.

Huntsville, AL 35805

256-830-0818 • 256-830-0843 Fax

WEST ALABAMA PLANNING AND 

DEVELOPMENT COUNCIL

Robert B. Lake, Executive Director

4200 Hwy. 69 N., Ste. 1

Northport, AL 35473

205-333-2990 • 205-333-2713 Fax

Small Business Incubators

Small business incubators, which provide 

comprehensive support to companies in 

their start-up stages, help entrepreneurs 

achieve their dreams and help communities 

develop more vibrant economies. The 

incubation process begins with an analysis 

of what a company needs and ends with 

that company “graduating” to become solid 

and independent. In between, the company 

receives tailor-made services that point it 

toward success. For additional information, 

contact one of the following:

AUBURN CENTER FOR DEVELOPING 

INDUSTRIES

Peggy Hinson, Manager

1500 Pumphrey Ave.

Auburn, AL 36832

334-501-7300

phinson@auburnalabama.org

BESSEMER BUSINESS CENTER

Devron Veasley, Director

1020 9th Ave. S.W.

Bessemer, AL 35022

205-481-2000 • 205-481-2100 Fax

dveasley@mindspring.com

www.bessemeral.org/BBIS.html

BESSEMER BUSINESS INCUBATION 

CENTER

The Downtown Entrepreneurial Center

Devron Veasley, Director

401 19th St. N. 

Bessemer, AL 35020

205-481-4800 • 205-481-4801 Fax

dveasley@mindspring.com

www.bessemeral.org/BBIS. html

BEVILL STATE COMMUNITY COLLEGE

Jasper Campus

Kim Ennis

1411 Indiana Ave.

Jasper, AL 35501

205-387-0511 • 205-387-5191 Fax

rgreen@bscc.edu

BUSINESS INNOVATION CENTER

Lynn Stacey, Executive Director

1301 Azalea Rd.

Mobile, AL 36693

251-660-7002 • 251-660-7004 Fax

ceebic@ceebic.org

www.ceebic.org

BIZTECH BUSINESS TECHNOLOGY DEV. 

CENTER, INC. 

Dick Reeves, President

515 Sparkman Dr.

Huntsville, AL 35816

256-704-6000 • 256-704-6002 Fax

info@biztech.org

www.biztech.org

DECATUR BUSINESS INCUBATOR

Jim Gregory, Executive Director

1629 4th Ave. S.W.

Decatur, AL 35601

256-351-7563 • 256-351-7984 Fax

dbi@decatur-al.gov

www.decaturincubator.com

THE INNOVATION DEPOT

Susan Matlock, President

1500 1st Ave. N.

Birmingham, AL 35203

205-250-8000 • 205-250-8013 Fax

smatlock@innovationdepot.net

MONTGOMERY AREA 

SMALL BUSINESS INCUBATOR

Douglas Jones, Director

600 S. Court St.

Montgomery, AL 36101

334-832-4790 • 334-240-6869 Fax

djones@montgomerychamber.com

www.montgomeryincubator.org

NORTHEAST ALABAMA ENTREPRENEURIAL 

SYSTEM

Elmer Wheatley, Executive Director

1400 Commerce Blvd., Ste. 1

Anniston, AL 36207

256-831-5215 • 256-831-8728 Fax

giles@neaes.org

www.neaes.org

OZARK TECHNOLOGY CENTER (OTC)

Robin Beasley, Assistant Econ. Director

3269 U.S. Hwy. 231 S.

Ozark, AL 36360

334-774-4952 • 334-774-4539 Fax

otcdirector@ozarkalabama.org

www.ozarkalabama.org

SHOALS COMMERCIAL CULINARY CENTER

Sherry Campbell, Director

610 W. College St.

Florence, AL 35630

256-764-0044 • 256-764-5999 Fax

scampbell@shoalsec.com

www.shoalsec.com

SHOALS ENTREPRENEURIAL CENTER (SEC)

H. Giles McDaniel, Executive Director

3115 Northington Ct.

Florence, AL 35630

256-760-9014 • 256-740-5530 Fax

jdavis@shoalsec.com

www.shoalsec.com

SHOALS ENTREPRENEURIAL CENTER - 

DIGITAL ARTS SHOALS COMPLEX

Jerry Davis, Director

501 Little Rock Ave.

Sheffield, AL 35660

256-314-1750 • 256-314-1751 Fax

jdavis@shoalsec.com

www.shoalsec.com

SHOALS ENTERPENEURIAL CENTER 

- JERRY W. DAVIS COMPLEX FOR 

MANUFACTURING

4002 Helton Dr.

Florence, AL 35630

www.shoalsec.com

THE INNOVATION CENTRE, INC.

George Alford, Director

4344 Alabama Hwy. 41

Selma, AL 36701

334-418-0005 • 334-418-0010 Fax

galford@alfordandassoc.com

BALDWIN COUNTY INCUBATOR

Bob Higgins, Director

P.O. Box 1340

Robertsdale, AL 36567

251-947-2445 or 800-947-2445

251-947-4229 Fax

info@baldwinincubator.com

www.baldwinincubator.com

State Resources

ALABAMA DEPARTMENT OF ECONOMIC 

AND COMMUNITY AFFAIRS (ADECA)

 Jim Byard, Jr., Director

Center for Commerce Bldg.

401 Adams Ave., Ste. 580

P.O. Box 5690

Montgomery, AL 36103-5690

334-242-5591 • 334-242-5099 Fax

office.of.the.director@adeca.state.al.us

www.adeca.state.al.us

OFFICE OF MINORITY BUSINESS 

ENTERPRISE (OMBE) STATE OF ALABAMA

Clarence E. Mann, Manager

401 Adams Ave., Ste. 410

Montgomery, AL 36103-5690

334-353-5680 • 334-242-4203 Fax

Clarence.Mann@adeca.alabama.gov

www.adeca.alabama.gov/c15/ombe/default.aspx

OFFICE OF MINORITY BUSINESS 

ENTERPRISE (OMBE) STATE OF ALABAMA

Mobile Office:

Pam Ramos

251-433-2250

OTHER ASSISTANCE

OTHER ASSISTANCE

Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 43
ALABAMA DEPARTMENT OF 

ENVIRONMENTAL MANAGEMENT

Onis “Trey” Glenn III, Director

1400 Coliseum Blvd. (36110-2059)

P.O. Box 301463

Montgomery, AL 36130-1463

334-271-7700 • 334-271-7950 Fax

www.adem.state.al.us

ALABAMA STATE EMPLOYMENT SERVICE

Industrial Relations Bldg.

649 Monroe St., Rm. 2813

Montgomery, AL 36131

334-242-8003 • 334-242-8012 Fax

www.es.dir.alabama.gov

ALABAMA INFORMATION TECHNOLOGY

Byron McCain, Executive Director

P.O. Box 130220

Birmingham, AL 35213

205-802-7551 • 205-802-7553 Fax

byron.mccain@alabama-infotech.org

www.alabama-infotech.org

BETTER BUSINESS BUREAU

P.O. Box 55268

Birmingham, AL 35255-5268

205-558-2222 • 205-558-2239 Fax

info@birmingham-al.bbb.org

www.birmingham-al.bbb.org

Serving Central Alabama and the Wiregrass 

Area.

BETTER BUSINESS BUREAU

500 12th St. (31901)/P.O. Box 2587

Columbus, GA 31902-2587

706-324-0712 • 706-324-2181 Fax

info@columbus-ga.bbb.org

www.columbus-ga.bbb.org

Serving West Georgia, East Alabama and 

Southwest Georgia.

BETTER BUSINESS BUREAU

Dothan Branch Office

118 Woodburn

Dothan, AL 36305

334-794-0492 • 334-794-0659 Fax

www.birmingham-al.bbb.org

BETTER BUSINESS BUREAU

P.O. Box 383

Huntsville, AL 35804-0388

256-533-1640 • 256-533-1177 Fax

info@northalabama.bbb.org

www.northalabama.bbb.org/

Serving Northern Alabama.

BETTER BUSINESS BUREAU

3361 E. Cottage Hill Rd.

Mobile, AL 36606

P.O. Box 91419

Mobile, AL 36691-1419

info@bbbsouthal.org

251-433-5494 • 251-438-3191 Fax

www.bbbsouthal.org

Serving Southern Alabama.

BETTER BUSINESS BUREAU

Montgomery Branch Office

500 Eastern Blvd., Ste. 128

Montgomery, AL 36117

334-273-5530 • 334-273-5546 Fax

www.bbb.org

Consumer Affairs

CONSUMER PROTECTION

800-392-5658

OFFICE OF CONSUMER 

Affairs Division

334-242-7334

Minority Resources

CENTRAL ALABAMA AFRICAN AMERICAN 

CHAMBER OF COMMERCE

2324 Second Ave. N., Ste. 100

Birmingham, AL 35203

205-323-1877

NORTH ALABAMA AFRICAN 

AMERICAN CHAMBER OF COMMERCE

225 Spragins St., Ste. E 

Huntsville, AL 35801

256-564-7574 • 256-564-7344 Fax

www.thenaaacc.org

URBAN LEAGUE OF BIRMINGHAM

1229 3rd Ave. N.

Birmingham, AL 35203

205-326-0162 • 205-521-6951 Fax

burbanleag@aol.com

www.birminghamurbanleague.net

ALABAMA DEPARTMENT OF 

TRANSPORTATION

John Huffman, Coordinator

Disadvantaged Business Enterprise (DBE)

1409 Coliseum Blvd.

Montgomery, AL 36130-3050

334-242-6534 • 334-263-7586 Fax

thomasc@dot.state.al.us

www.dot.state.al.us/

ALABAMA INDIAN AFFAIRS COMMISSION

Eloise Josey, Executive Director

777 Lawrence St., Ste. 102

Montgomery, AL 36104

334-242-2831 • 334-240-3408 Fax

aiac@mindspring.com

www.aiac.state.al.us

OFFICE OF MINORITY BUSINESS 

ENTERPRISE (OMBE) STATE OF ALABAMA

Clarence E. Mann, Manager

401 Adams Ave., Ste. 410 

Montgomery, AL 36103-5690

334-353-5680 • 334-242-4203 Fax

Clarence.Mann@adeca.alabama.gov

www.adeca.alabama.gov/c15/ombe/default.aspx

OFFICE OF SMALL BUSINESS ADVOCACY 

(OSBA)

Eddie F. Postell, Manager

401 Adams Avenue, Suite 610

Montgomery, AL 36130-4106

334-242-0485 or 800-248-0033

334-353-1741 Fax

Eddie.Postell@ado.alabama.gov

www.alabamausa.org

SOUTH REGION MINORITY SUPPLIER 

DEVELOPMENT COUNCIL

George Perdue, President

4715 Alton Ct.

Birmingham, AL 35210

205-957-1883 • 205-957-2114 Fax

gperdue@srmsdc.org

info@srmsdc.org

Chambers of Commerce 

Chambers of Commerce serve as a 

central location where the local small 

business community may obtain 

information, publications and contact 

information. For more information check 

listing of area Chambers or visit: www.

chamberofcommerce.com.

ABBEVILLE CoC 

P.O. Box 202

Abbeville, AL 36310-0202

334-585-2273

ALABAMA GULF COAST AREA CoC 

Ed Rodriguez, President & CEO

P.O. Drawer 3869

Gulf Shores, AL 36547

251-968-6904 • 251-968-5332 Fax

ed@edrod.net

www.alagulfcoastchamber.com

ALBERTVILLE CoC

316 E. Sand Mountain Dr./P.O. Box 1457

Albertville, AL 35950

256-878-3821 • 256-878-3822 Fax

Albertvillechamber@charter.net

ALEXANDER CITY/LAKE MARTIN AREA CoC

120 Tallapoosa St./P.O. Box 926

Alexander City, AL 35011

256-234-3461 • 256-234-0094 Fax

www.alexandercity.org

ALICEVILLE AREA CoC 

P.O. Drawer A

Aliceville, AL 35442

205-373-2820 • 205-373-8692 Fax

commerce@pickens.net

www.pickens.net/commerce

ANDALUSIA AREA CoC 

P.O. Box 667

Andalusia, AL 36420-0667

334-222-2030 • 334-222-7844 Fax

dreeves@andalusiachamber.com

ARAB CoC

P.O. Box 626

Arab, AL 35016

256-586-3138 • 256-586-0233 Fax

arabchamber@charter.net

www.arabalabama.org

ASHFORD AREA CoC 

P.O. Box 463

Ashford, AL 36312

334-899-4769 • 334-899-3033 Fax

GREATER LIMESTONE COUNTY CoC 

P.O. Box 150

Athens, AL 35612

256-232-2600 • 256-232-2609 Fax

alcc@pclngt.net

www.tourathens.com

ATMORE CoC

501 S. Pensacola Ave.

Atmore, AL 36502-2953

251-368-3305 • 251-368-0800 Fax

atmoreal@frontiernet.net

www.atmorechamber.com

AUBURN CoC 

P.O. Box 1370

Auburn, AL 36831-1370

334-887-7011 • 334-821-5500 Fax

www.auburnchamber.com

info@auburnchamber.com

BAYOU LA BATRE CoC 

P.O. Box 486

Bayou La Batre, AL 36509

251-824-4088 • 251-824-4133 Fax

www.gulfinfo.com/bayoulabatre

BESSEMER AREA CoC 

321 N. 18th St.(35020)/P.O. Box 648

Bessemer, AL 35021

205-425-3253 • 205-425-4979 Fax

mmilan1@bellsouth.net

www.bessemerchamber.com

BIBB COUNTY CoC 

P.O. Box 25

Centreville, AL 35042

205-926-5222 • 205-926-5221 Fax

bibbco@dbtech.net

www.bibbco@dbtech.net

BIRMINGHAM BUSINESS ALLIANCE 

505 20th St. N., 2nd Fl.

Birmingham, AL 35203

205-324-2100 • 205-324-2560 Fax

www.birminghamchamber.com

BLOUNT COUNTY/ONEONTA CoC

227 2nd Ave. E.

Oneonta, AL 35121-1487

205-274-2153 • 205-274-2099 Fax

www.blountoneontachamber.org

BOAZ CoC

P.O. Box 563

Boaz, AL 35957

256-593-8154 • 256-593-1233 Fax

www.boazchamberofcommerce.com

BREWTON CoC

101 B Douglas Ave.

Brewton, AL 36426

251-867-3224 • 251-809-1793 Fax

www.brewtonchamber.com

CALERA CoC

Hwy. 31/P.O. Box 445

Calera, AL 35404

205-668-3023 • 205-668-3023 Fax 

info@calerachamber.org

www.calerachamber.org

OTHER ASSISTANCE

44 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al
CALHOUN COUNTY CoC

1330 Quintard Ave.

Anniston, AL 36202

256-237-3536 • 256-237-0126 Fax

www.calhounchamber.com

CENTRAL BALDWIN CoC 

P.O. Box 587

Robertsdale, AL 36567

251-947-5932 • 251-947-2626 Fax

cbchamber@gulftel.com

www.cbchamber.org

THE CHAMBER OF COMMERCE 

OF WALKER COUNTY

204 19th St. E., Ste. 101

Jasper, AL 35501

205-384-4571 • 205-384-4901 Fax

walkcham@sonet.net

www.walkerchamber.us

CHAMBER OF COMMERCE OF WEST AL

2200 University Blvd.

Tuscaloosa, AL 35402

205-758-7588 • 205-391-0565 Fax

www.tuscaloosachamber.com

CHEROKEE COUNTY CoC 

P.O. Box 86

Centre, AL 35960

256-927-8455 • 256-927-2768 Fax

www.cherokee-chamber.org

CHICKASAW CoC

P.O. Box 11421

Chickasaw, AL 36671

251-456-4751

www.ci.chickasaw.al.us/content/commerce

CHILDERSBURG CoC 

805 3rd St. S.W./P.O. Box 527

Childersburg, AL 35044

256-378-5482 • 256-378-5833 Fax

chamber1540@aol.com

www.childersburg.com

CHILTON COUNTY CoC 

500 5th Ave. N./P.O. Box 66

Clanton, AL 35046-0066

205-755-2400 • 205-755-8444 Fax

info@chiltoncountychamber.com

www.chiltoncountychamber.com

CITRONELLE AREA CoC 

8175 State St.

Citronelle, AL 36522

251-866-7733 • 251-866-7982 Fax

info@citronellechamber.com

www.citronellechamber.com

CLAY COUNTY CoC 

P.O. Box 85

Lineville, AL 36266

256-396-2828 • 256-396-5532 Fax

www.claycochamber.com

CLEBURNE COUNTY CoC 

P.O. Box 413

Heflin, AL 36264

256-463-2222 • 256-463-3982 Fax

Aberry@nti.net

CULLMAN AREA CoC

P.O. Box 1104

Cullman, AL 35056-1104

256-734-0454 • 256-737-7443 Fax

www.cullmanchamber.org

info@cullmanchamber.org

DADEVILLE AREA CoC

185 S. Tallassee St., Ste. 103

Dadeville, AL 36853

256-825-4019 • 256-825-0547 Fax

www.dadeville.com

DALEVILLE CoC 

P.O. Box 688

Daleville, AL 36322

334-598-6331 • 334-598-2333 Fax

www.dalevilleal.com

DECATUR MORGAN COUNTY CoC 

515 6th Ave. N.E.

Decatur, AL 35602-2003

256-353-5312 • 256-353-2384 Fax

www.dcc.org

DEMOPOLIS AREA CoC

102 E. Washington St./P.O. Box 667

Demopolis, AL 36762

334-289-0270 • 334-289-1382 Fax

www.demopolischamber.com

DOTHAN AREA CoC

102 Jamestown Blvd./P.O. Box 638

Dothan, AL 36302

334-792-5138 or 800-221-1027

334-794-4796 Fax

www.dothan.com

EAST WALKER COUNTY CoC

P.O. Box 188

Sumiton, AL 35148

205-255-0202

cheevee@bellsouth.net

EASTERN SHORE CoC 

327 Fairhope Ave.

Fairhope, AL 36532-2317

251-928-6387 • 251-928-6389 Fax

www.eschamber.com

ELBA CoC

200 Buford St.

Elba, AL 36323

334-897-3125 • 334-897-1762 Fax

elbaalabama.net

www.ecc@alaweb.com

ENTERPRISE CoC

P.O. Box 310577

Enterprise, AL 36331-0577

334-347-0581 • 334-393-8204 Fax

www.enterprisealabama.com

EUFAULA/BARBOUR COUNTY CoC

333 E. Broad St.

Eufaula, AL 36072

334-687-6664 • 334-687-5240 Fax

800-524-7529 Toll Free

ebcchamber@bellsouth.net

www.eufaula-barbourchamber.com

EUTAW AREA CoC

110 Main St./P.O. Box 31

Eutaw, AL 35462

205-372-9002 • 205-372-9974 Fax

www.greenecountyalabama.com

EVERGREEN/CONECUH COUNTY AREA CoC

100 Depot Sq.

Evergreen, AL 36401

251-578-1000 

FAIRFIELD CoC

P.O. Box 213

Fairfield, AL 35064

FAYETTE AREA CoC

P.O. Box 247

Fayette, AL 35555

205-932-4587

FLOMATON-CENTURY CoC 

P.O. Box 632

Flomaton, AL 36441

251-296-2431 City Hall 

251-296-1930 Fax

FORT DEPOSIT CoC

P.O. Box 162

Fort Deposit, AL 36032

334-227-4242 • 334-227-4272 Fax

FORT PAYNE CoC

P.O. Box 680125

Fort Payne, AL 35968-0125

256-845-2741 • 256-845-5849 Fax

www.fortpayne.com

FRANKLIN COUNTY CoC

P.O. Box 44

Russellville, AL 35653

256-332-1760 • 256-332-1740 Fax

www.franklincountychamber.org

THE CHAMBER OF GADSDEN/ETOWAH 

COUNTY

P.O. Box 185

Gadsden, AL 35902

256-543-3472 • 256-543-9887 Fax 

800-238-6924 Toll Free

www.gadsdenchamber.com

GREATER GARDENDALE CoC

2109 Moncrief Rd., Ste. 115

Gardendale, AL 35071

205-631-9195 • 205-631-9034 Fax

gdalechamber@mindspring.com

www.gardendalechamberofcommerce.com

GORDO AREA CoC

P.O. Box 33

Gordo, AL 35466

205-364-7870 (answering machine)

205-364-7383 Fax

GREATER GENEVA AREA CoC

P.O. Box 477

Geneva, AL 36340

334-684-6582 • 334-684-2943 Fax

geneva_chamber@entercomp.com

www.entercomp.com/users/geneva_chamber/

GREATER IRONDALE CoC 

1912 First Ave. S.

Irondale, AL 35210

205-956-3104 • 205-956-5964 Fax

www.irondalechamber.org

LEEDS AREA CoC

8345 Thornton Ave.

Leeds, AL 35094-0900

205-699-5001 • 205-699-5001 Fax

leedschamber@alltel.net

www.leedsalabama.com/chamber_of_ 

commerce.htm

GREATER PELL CITY CoC

1618 Cogswell Ave., Ste. 105

Pell City, AL 35125

205-338-3377 • 205-338-1913 Fax

www.pellcitychamber.com

GREATER SHELBY COUNTY CoC 

1301 Cnty. Srvs. Dr.

Pelham, AL 35124-0324

205-663-4542 • 205-663-4524 Fax

info@shelbychamber.org

www.shelbychamber.org

GREATER TALLADEGA AREA CoC

P.O. Drawer A

Talladega, AL 35160

256-362-9075 • 256-362-9093 Fax

sitemail@talladegachamber.com

www.talladegachamber.com

GREATER VALLEY AREA CoC

P.O. Box 205

Lanett, AL 36863

334-642-1411 • 334-642-1410 Fax

www.greatervalleyarea.com

GREENVILLE AREA CoC

1 Depot Sq.

Greenville, AL 36037

334-382-3251 • 334-382-3181 Fax

GROVE HILL AREA CoC

P.O. Box 567

Grove Hill, AL 36451

251-275-4188 • 251-275-2278 Fax

HALEYVILLE AREA CoC

P.O. Box 634

Haleyville, AL 35565-1813

205-486-4611 • 205-486-2984 Fax

www.haleychamber.org

HAMILTON CoC

422 2nd St./P.O. Box 1168

Hamilton, AL 35570-1168

205-921-7786 • 205-921-2220 Fax

HARTSELLE AREA CoC

110 Railroad St. S.W./P.O. Box 817

Hartselle, AL 35640

256-773-4370 • 256-773-4379 Fax

hartsell@hiwaay.net

www.hartsellechamber.com

OTHER ASSISTANCE

Visit us online: www.sba.gov/al ALABAMA Small Business Resource — 45
HEADLAND CoC

P.O. Box 236

Headland, AL 36345-0236

334-693-3303

headlandchamber@centurytel.net

HOMEWOOD CoC

c/o Homewood Public Library

1721 Oxmoor Rd.

Homewood, AL 35209

205-871-5631 • 205-871-5632 Fax

www.homewoodchamber.org

HOOVER CoC

3659 Lorna Rd., Ste. 165

Hoover, AL 35216

205-988-5672 • 205-988-8383 Fax

www.hooverchamber.org

HUEYTOWN AREA CoC

2058-A High School Rd./P.O. Box 3356

Hueytown, AL 35023

205-491-8039 • 205-491-7961 Fax

www.hueytown.org/chamber.htm

HUNTSVILLE/MADISON COUNTY CoC

225 Church St. N.W./P.O. Box 408

Huntsville, AL 35804-0408

256-535-2000 • 256-535-2015 Fax

hcc@hsvchamber.org

www.hsvchamber.org

JACKSON COUNTY AREA CoC

500 Commerce St.

Jackson, AL 36545

251-246-3251 • 251-246-3213 Fax

jacksonchamber@earthlink.net

LAKE GUNTERSVILLE CoC

200 Gunter Ave./P.O. Box 577

Guntersville, AL 35976

256-582-3612 • 256-582-3682 Fax

gcc@lakeguntersville.org

www.lakeguntersville.org

LAWRENCE COUNTY CoC

P.O. Box 325

Moulton, AL 35650

256-974-1658 • 256-974-2400 Fax

www.lawrenceal.com

lcc@hiwaay.net

MILLBROOK AREA CoC

P.O. Box 353

Millbrook, AL 36054

334-285-0085 • 334-285-9854 Fax

www.millbrookchamberofcommerce.com

MOBILE AREA CoC

P.O. Box 2187

Mobile, AL 36652-2187

251-433-6951 • 251-432-1129 Fax

www.mobilechamber.com

MONROEVILLE AREA CoC

P.O. Box 214

Monroeville, AL 36461

251-743-2879 • 251-743-2189 Fax

www.monroecountyal.com

MONTEVALLO CoC

720 Oak St.

Montevallo, AL 35115

205-665-1519 

www.montevallocc.org

MONTGOMERY AREA CoC

P.O. Box 79

Montgomery, AL 36101

334-834-5200 • 334-265-4745 Fax

www.montgomerychamber.com

MOUNTAIN BROOK CoC

3928 Montclair Rd., Ste. 128

217 County Club Park/PMB 432

Mountain Brook, AL 35213

205-871-3779 • 205-871-6678 Fax

mtnbrookchamber@mindspring.com

NORTH BALDWIN CoC

P.O. Box 310

Bay Minette, AL 36507

251-937-5665 • 251-937-5670 Fax

www.northbaldwinchamber.com

OPELIKA CoC

601 Ave. A/P.O. Box 2366

Opelika, AL 36803-2366

334-745-4861 • 334-749-4740 Fax

www.opelika.com

OPP & COVINGTON COUNTY AREA CoC 

P.O. Box 148

Opp, AL 36467-0148

334-493-3070 • 334-493-1060 Fax

www.oppchamber.com

OZARK AREA CoC

294 Painter Ave.

Ozark, AL 36360

334-774-9321 or 800-582-8497

334-774-8736 Fax

ozarkcc@snowhill.com

PERRY COUNTY CoC

P.O. Box 95

Marion, AL 36756

334-683-9622

pinebelt.net/~pcchamber/index2.html

PHENIX CITY/RUSSELL COUNTY CoC

P.O. Box 1326

Phenix City, AL 36868

334-298-3639 • 334-298-3846 Fax

www.pcrcchamber.com

PIKE COUNTY CoC

P.O. Box 249

Troy, AL 36081

334-566-2294 • 334-566-2298 Fax

www.pikecountychamber.com

PRATTVILLE AREA CoC

131 N. Court St.

334-365-7392 • 334-361-1314 Fax

www.prattvillechamber.com

RAINSVILLE CoC

P.O. Box 396

Rainsville, AL 35986

256-638-7800 • 888-552-5216 Fax

www.rainsville-al.com

RANDOLPH COUNTY CoC

P.O. Box 431

Roanoke, AL 36274

334-863-6612 • 334-863-7280 Fax

www.ircusa.com/randolph/county.htm

REFORM AREA CoC

P.O. Box 819

Reform, AL 35481

205-375-6240 • 205-375-6240 Fax

SARALAND AREA CoC

939 Hwy. 43 S.

Saraland, AL 36571

251-675-4444 • 251-675-2307 Fax

www.saralandcoc.com

SCOTTSBORO/JACKSON COUNTY CoC 

P.O. Box 973

Scottsboro, AL 35768

256-259-5500 • 256-259-4447 Fax

www.sjcchamber.org

SELMA-DALLAS COUNTY CoC

912 Selma Ave.

Selma, AL 36701

334-875-7241 or 800-45-SELMA

334-875-7142 Fax

www.selmaalabama.com

SHELBY COUNTY CoC

Chamber Depot Ball Park Dr.

P.O. Box 324

Pelham, AL 35124

205-663-4542 • 205-663-4524 Fax

www.shelbychamber.org

SHOALS CoC

P.O. Box 1331

Florence, AL 35631-1331

256-764-4661 • 256-766-9017 Fax

www.shoalschamber.com

SOUTH BALDWIN CoC

P.O. Box 1117

Foley, AL 36536

251-943-3291 • 251-943-6810 Fax

chamber@southbaldwinchamber.com

www.southbaldwinchamber.com

SOUTH LAMAR AREA CoC

P.O. Box 208

Millport, AL 35574

205-596-3378 • 205-596-3787 Fax

SOUTH SHELBY CoC

P.O. Box 396

Columbiana, AL 35051

205-669-9075 • 205-669-1842 Fax

soshelby@bellsouth.net

SPRINGVILLE AREA CoC

6496 U.S. Hwy. 11

Springville, AL 35146

205-467-2339

spvlib@alltel.net 

SYLACAUGA CoC

P.O. Box 185

Sylacauga, AL 35150

256-249-0308 • 256-249-0315 Fax

chamber@sylacauga.net

www.sylacauga.net/chamber

TALLASSEE CoC

301-A King St.

Tallassee, AL 36078-1315

334-283-5151

chamber@tallassee.al.us

www.tallassee.al.us/chamber.htm

TARRANT/PINSON VALLEY CoC

145 Adams Ave.

Tarrant, AL 35217

205-849-2803 • 205-849-2805 Fax

THOMASVILLE CoC

145 Adams Ave.

Thomasville, AL 36784

334-636-6623 • 334-636-6624 Fax

tvillecity@pinebelt.net

www.tvilecity.com

TILLMAN’S CORNER CoC

5055 Caro Plantation Rd.

Mobile, AL 36619

251-666-2846 • 251-666-2813 Fax

TRI-CITY CoC

1099 5th St., Ste. 100

Florala, AL 36442-1221

334-858-6252 • 334-858-6252 Fax

tricity@gtcom.ne

www.gtcom.net/~tricity/

TRUSSVILLE AREA CoC

225 Parkway Dr.

Trussville, AL 35173

205-655-7535 • 205-655-3705 Fax

trusscoc@hiwaay.com

TUSKEGEE AREA CoC

121 S. Main St.

Tuskegee, AL 36083

334-727-6619 • 334-725-1801 Fax

tachwa@earthlink.net

VERNON CoC

P.O. Box 336

Vernon, AL 35592

205-695-7718 • 205-695-1006 Fax

VESTAVIA HILLS CoC

P.O. Box 660793

Vestavia Hills, AL 35266-0793

205-823-5011 • 205-823-8974 Fax

Chamber@vestviahills.org

www.vestaviahills.org

WETUMPKA AREA CoC

P.O. Box 785

Wetumpka, AL 36092

334-567-4811 • 334-567-1811 Fax

wacc@bellsouth.net

www.wetumpkachamber.com

WINFIELD CoC

P.O. Box 916

Winfield, AL 35594

205-487-4277 or 205-487-8841

205-487-3799 Fax

OTHER ASSISTANCE

46 — Small Business Resource ALABAMA Visit us online: www.sba.gov/al