BUSINESS

SMALL

RESOURCE RESOURCE

ALASKA

www.SBA.gov • connect with us @ facebook.com/SBAgov twitter.com/sbagov youtube.com/sba

The SBA: 

Streamlining 

and Simplifying

page 27

Counseling

Capital

Contracting

PAGE

8

PAGE

15

PAGE

28

SMALL BUSINESS content

2013 ALASKA

Advertising

Phone: 863-294-2812 • 800-274-2812

Fax: 863-299-3909 • www.sbaguides.com

Staff

President/CEO

Joe Jensen jjensen@reni.net

English/Spanish Small Business Resource 

Advertising

Nicky Roberts nroberts@reni.net

Martha Theriault mtheriault@reni.net

Kenna Rogers krogers@reni.net

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

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 

is accurate as of the date of publication, the 

information is subject to change without notice. 

The contractor that publishes this guide, the federal 

government, or agents thereof shall not 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 

# SBAHQ05C0014.

Reni Publishing

Publishers of Small Business Resource

FEATURES

4 Introduction

 4 Administrator’s Message

 6 Regional Administrator and 

 Deputy District Director 

 Letter

8 Counseling

 Getting Help to Start Up, Market 

 and Manage Your Business

 8 SBA Resource Partners

 10 SBA’s Online Tools and 

 Training

 11 Reaching Underserved 

 Communities

 13 Are You Right for Small 

 Business Ownership?

 14 Writing a Business Plan

 

15 Capital

 Financing Options to Start or 

Grow Your Business

 15 SBA Business Loans

 16 What to Take to the Lender

 21 Small Business Investment 

 Company Program

 21 Small Business Innovation 

 Research Program

 21 Small Business Technology 

 Transfer Program

 22 Surety Bond Guarantee 

 Program

 24 SBA Loan Program Chart

 26 SBA Lenders Program Chart

27 Feature Article

 The SBA: Streamlining and 

 Simplifying 

28 Contracting

 Applying for Government 

 Contracts

 28 How Government Contracting 

 Works

 29 SBA Contracting Programs

 32 Getting Started in Contracting

33 Disaster Assistance

 Getting Back on Your Feet After a 

 Disaster

34 Advocacy and Ombudsman

 Watching Out for Small Business 

Interests

35 Additional Resources

 Taking Care of Start Up Logistics

 39 Business Organization: 

 Choosing your Structure

40 Other Assistance

43 Lender Listing 

On the Cover:

Oscar Quiles, owner of Pentaq Manufacturing 

Corporation based in Puerto Rico, proudly 

displays the uniforms he manufactures for the 

U.S. Armed Forces. With the help of the U.S. 

Small Business Administration, Quiles has 

expanded his company and now employs 160 

people. 

Visit us online: www.sba.gov/ak Alaska Small Business Resource — 3
Over the last two decades, 

small and new businesses 

have been responsible for 

creating two out of every 

three net new jobs in the 

United States, and the 

country’s 28 million small 

firms today employ 60 

million Americans — that’s 

fully half of the private sector workforce.

At the SBA, and across the administration, 

we are focused on making sure that 

entrepreneurs and small business owners 

have the tools, resources and relationships 

you need to do what you do best: grow and 

create jobs. 

Over the past three years, the SBA has 

streamlined and simplified its programs to 

better serve the small business community. 

These program enhancements are focused 

on providing more access and opportunity 

for capital, counseling and contracting for 

small businesses like yours all across the 

country. 

One example is our newly re-engineered 

CAPLines program, which is designed to 

help small businesses meet their shortterm and cyclical working-capital needs. To 

strengthen the program, we talked to lenders 

and small business owners about how to 

make CAPLines more efficient and effective. 

As a result, we streamlined the paperwork 

and allowed banks to use more of their 

own processes, and we are now seeing loan 

volumes up more than 220 percent. 

I hope this guide helps you take advantage 

of some of the tools we offer at the SBA. If 

you want additional information about any 

of our programs or initiatives, we have a 

wide range of online tools, including 

SBA.gov, which provides access to SBA 

Direct, a tool that connects you to SBA 

resources in your local area. You can also 

join the SBA online community and connect 

with other small business owners. 

Warm regards,

Karen G. Mills

Administrator

U.S. 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

4 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

www.sba.gov/ak

ALASKA

SBA Staff Listing

Deputy District Director

Sam Dickey

907-271-4844

sam.dickey@sba.gov

Program Support Assistant

Yolanda Staples-Lassiter

907-271-4022

yolanda.lassiter@sba.gov

Business Opportunity 

Specialist

Joyce Courtney

907-271-4837

joyce.courtney@sba.gov

Administrative Officer/

Business Opportunity 

Specialist

Don Nagel

907-271-4841

don.nagel@sba.gov

Business Opportunity 

Specialist

Gregory Kolean

907-271-4537

gregory.kolean@sba.gov

Business Opportunity 

Specialist

David Matekovich

907-271-4850

david.matekovich@sba.gov

Business Opportunity 

Specialist

Marci Posey

907-271-4842

marci.posey@sba.gov 

BUSINESS DEVELOPMENT 

DIVISION

Lender Relations Specialist

Nelida Irvine

907-271-4027

nelida.irvine@sba.gov 

FAIRBANKS OFFICE

Senior Area Manager, 

Northern Alaska

2175 University Ave. S., 

Ste. 201A

Fairbanks, AK 99709

Scott Swingle

907-474-4878

907-474-4879 Fax

scott.swingle@sba.gov

OFFICE OF GOVERNMENT 

CONTRACTING

Procurement Center 

Representative

Marichu Relativo

907-271-2297

marichu.relativo@sba.gov

6 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

Alaska District Office

Anchorage

420 L St., Ste. 300

Anchorage, AK 99501

907-271-4022 • 800-755-7034 Toll Free

907-271-4545 Fax

Message From The District Leadership Team

Greetings!

The U. S. Small Business 

Administration (SBA) has many 

programs and services available to 

business owners and entrepreneurs. 

This resource guide is a perfect 

example and will provide an 

overview of SBA’s core programs 

that work arm-in-arm with Main 

Street small businesses to grow 

and create jobs, and in the process, 

strengthen our communities. 

Our focus at the SBA is to help 

small business start, grow and 

succeed. To accomplish that core 

mission, the SBA focuses on what 

we like to call the “three C’s” of 

capital, contracts and counseling. 

Our network of 14,000 SBAaffiliated counselors assist thousands 

of small businesses each day with 

anything from creating a startup 

to succession planning. And, 

through our business development 

and certification programs, small 

businesses earned billions of dollars 

in federal contracts.

During this past fiscal year, SBA 

supported over $30 Billion in loans 

nationwide and over $1 Billion 

across the Pacific Northwest.

This work is critical to our nation’s 

prosperity. We know that roughly 

two out of every three jobs created 

in America come from small 

businesses, and more than half of 

all working Americans either own 

or work for a small business. Our 

nation’s history is full of individuals 

who dared to be innovative and 

entrepreneurial. SBA is ready to 

help you add your name to the list. 

In addition to the helpful 

information in this guide, I invite 

you to be a part of our growing 

online community. We’ve 

redesigned our website (sba.gov) to 

be more helpful and personalized. 

We also post frequent updates on 

our Facebook (facebook.com/

SBAPacificNW) and Twitter 

(twitter.com/SBAPacificNW) 

sites. I encourage you to ‘like’ and 

‘follow’ us so you can keep up with 

the latest information.

If you have any questions or want 

additional information, please visit 

our website, call us, or pay a visit 

to your local district office. We are 

ready to help in any way possible.

Warm regards,

Calvin W. Goings

Regional Administrator

Sam J. Dickey

Deputy District Director of 

SBA’s Alaska District Office

Calvin W. 

Goings

Regional 

Administrator

Sam J. 

Dickey

Deputy 

District 

Director
THE ALASKA DISTRICT OFFICE

The Alaska District Office is responsible 

for the delivery of SBA’s many programs 

and services. The Deputy District Director 

is Sam Dickey. The District Office is 

located at 420 L St., Ste. 300, Anchorage, 

AK 99501. Office hours are from 8:00 AM 

until 4:30 PM, Monday through Friday.

CONTACTING THE ALASKA 

DISTRICT OFFICE

For information about SBA financing, 

government contracting assistance, and 

other SBA programs and services, or to 

invite someone to speak to your group, 

please call 907-271-4022 or visit our web 

site at: www.sba.gov/ak. 

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 is available through the 

SBA and our Resource Partners, including 

the Alaska Small Business Development 

Center (SBDC), SCORE Counselors to 

America’s Small Business, and Women’s 

Economic Empowerment Center, an 

SBA Women’s Business Center (WBC) in 

Anchorage.

Free and low-cost small business training 

events are offered around the state by the 

SBA and its Resource Partners.

Through the 8(a) Business Development 

Program, assistance is available to help 

small businesses owned and controlled by 

socially and economically disadvantaged 

individuals to compete in the American 

economy and access the federal 

procurement market.

A Women’s Business Ownership 

Representative is available to assist 

women business owners. Please contact 

Nelida Irvine at 907-271-4027 or e-mail: 

nelida.irvine@sba.gov.

Veterans Representatives are available 

to assist veterans. Please contact David 

Matekovich at 907-271-4850 or email: 

david.matekovich@sba.gov.

 

Doing Business in Alaska

The SBA helps business 

owners grow and expand 

their businesses every day.

We Welcome Your

Questions

For extra copies of this publication or 

questions please contact:

Alaska District Office

420 L Street, Suite 300

Anchorage, AK 99501

Tel: 907-271-4022 Fax: 907-271-4545

Website: www.sba.gov/ak

Visit us online: www.sba.gov/ak Alaska Small Business Resource — 7
8 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

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 out, 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 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, the 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 

over 14,000 entrepreneurs, business 

leaders and executives who volunteer as 

mentors to America’s small businesses. 

SCORE leverages decades of experience 

from seasoned business professionals 

to help small businesses start, grow 

companies and create jobs in local 

communities. SCORE does this by 

harnessing the passion and knowledge 

of individuals who have owned and 

managed their own businesses and 

want to share this “real world” expertise 

with you.

Found in more than 370 offices and 

800 locations throughout the country, 

SCORE provides key services – both 

face-to-face and online – to busy 

entrepreneurs who are just getting 

started or in need of a seasoned 

business professional as a sounding 

board for their existing business. As 

members of your community, SCORE 

mentors understand local business 

licensing rules, economic conditions and 

important networks. SCORE can help 

you as they have done for more than 

9 million clients by:

• Matching your specific needs with a 

business mentor

• Traveling to your place of business for 

an on-site evaluation

• Teaming with several SCORE mentors 

to provide you with tailored assistance in 

a number of business areas 

Across the country, SCORE offers 

nearly 7,000 local business training 

workshops and seminars ranging 

in topic and scope depending on the 

needs of the local business community 

such as offering an introduction to 

the fundamentals of a business plan, 

managing cash flow and marketing your 

business. For established businesses, 

SCORE offers more in-depth training 

in areas like customer service, hiring 

practices and home-based businesses.

For around-the-clock business advice 

and information on the latest trends go 

to the SCORE website (www.score.org). 

More than 1,500 online mentors with 

over 800 business skill sets answer your 

questions about starting and running a 

business. In fiscal year 2011, SCORE 

mentors served 400,000 entrepreneurs.

For information on SCORE and to get 

your own business mentor, visit 

www.sba.gov/score, go to www.SCORE.org

or call 1-800-624-0245 for the SCORE 

office nearest you. 

SCORE Chapter 558

District 1084

420 L St., Ste. 300

Anchorage, AK 99501

907-271-4022 or 800-755-7034 Toll Free

907-271-4545 Fax

score558@gci.net

www.akscore.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, challenge 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
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 9

SMALL BUSINESS 

DEVELOPMENT CENTERS

 The U.S. Small Business 

Administration’s Small Business 

Development Center (SBDC) program’s 

mission is to build, sustain, and 

promote small business development 

and enhance local economies by 

creating businesses and jobs. This 

is accomplished by the provision and 

ensuing oversight of grants to colleges, 

universities and state governments so 

that they may provide business advice 

and training to existing and potential 

small businesses. 

The Small Business Development 

Center program, vital to the SBA’s 

entrepreneurial outreach, has been 

providing service to small businesses 

for more than 30 years. It is one of the 

largest professional small business 

management and technical assistance 

networks in the nation. With more than 

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.

 In addition to its core services, the 

SBDC program offers special focus areas 

such as green business technology, 

disaster recovery and preparedness, 

international trade assistance, veteran’s 

assistance, technology transfer and 

regulatory compliance. 

The program combines a unique 

mix of federal, state and private 

sector resources to provide, in every 

state and territory, the foundation 

for the economic growth of small 

businesses. The return on investment is 

demonstrated by the program’s success 

during 2011: 

• Assisted more than 13,660 

entrepreneurs to start new businesses – 

equating to 37 new business starts per 

day.

• Provided counseling services to more 

than 106,000 emerging entrepreneurs 

and nearly 100,000 existing businesses. 

• Provided training services to 

approximately 353,000 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.

Alaska Small Business Development 

Center 

State Office

430 W. 7th Ave., Ste. 110

Anchorage, AK 99501

907-274-7232 or 800-478-7232 Toll Free

907-272-0565 Fax

www.aksbdc.org

Debi Fowler, State Director

Debi.fowler@aksbdc.org

Isaac Vanderburg, Associate State Director

Isaac.vanderburg@aksbdc.org

Kendra Conroy Information Management 

Administrator

Kendra.conroy@aksbdc.org

Kristen Knight, Fiscal Technician

Kristen.knight@aksbdc.org

Tambala O’Neal, Procurement Administrator

Grants/Travel Coordinator

Tambala.oneal@aksbdc.org 

Alaska Small Business Development 

Center

Central Region

201 N. Lucille St., Ste. 2A

Wasilla, AK 99654 

907-373-7232 • 907-373-7234 Fax

www.aksbdc.org 

Julie Nolen, Central Region Director

julie.nolen@aksbdc.org

South Central Region

430 W. 7th Ave., Ste. 110

Anchorage, AK 99501-3550

907-274-7232 or 800-478-7232 Toll Free

907-274-9524 Fax

www.aksbdc.org

Grant Larsen, Business Advisor

Grant.larsen@aksbdc.org

Ryan Gilbert, Business Advisor

Ryan.gilbert@aksbdc.org

Lauren Riley, Administrative Assistant

Lauren.riley@aksbdc.org

Alaska Small Business Development 

Center

South West Region 

43335 Kalifornsky Beach Rd., Ste. 12

Soldotna, AK 99669

907-260-5629 • 907-260-1695 Fax

www.aksbdc.org

Bryan Zak, South West Region Director

Bryan.zak@aksbdc.org

Bunny Kishaba, Administrative Assistant

Bunny.kishaba@aksbdc.org 

Alaska Small Business Development 

Center

Juneau Office

3100 Channel Dr., Ste. 306

Juneau, AK 99801

907-463-3227 • 907-463-3430 Fax

www.aksbdc.org 

Ian Grant, Southeast Center Director

Ian.grant@aksbdc.org 

Alaska Small Business Development 

Center

Ketchikan Office

111 Stedman St., Ste. 201

Ketchikan, AK 99901

907-225-1388 • 907-225-3187 Fax

Linda Koons Auger, Ketchikan Center Dir.

Linda.koonsauger@aksbdc.org

Alaska Small Business Development 

Center

Bethel Office

1795 Chief Eddie Hoffman Hwy.

Bethel, AK 99559

Fran Reich, Bethel Center Director

Fran.reich@aksbdc.org

Kristine Guinn, Administrative Assistant

Kristine.guinn@aksbdc.org

For areas without a local center:

907-274-7232 or 800-478-7232 Toll Free

907-274-9524 Fax

http://aksbdc.org

ALASKA SMALL BUSINESS 

DEVELOPMENT CENTER’S PARTNER 

PROGRAMS:

Buy Alaska

430 W. 7th Ave., Ste. 110

Anchorage, AK 99501

907-274-7232 • 907-272-0565 Fax

www.buyalaska.com

Procurement Technical Assistance Center 

(PTAC)

Anchorage Center

430 W. 7th Ave., Ste. 110

Anchorage, AK 99501

907-274-7232 • 907-274-9524 Fax

www.ptacalaska.org

Carolyn Pratt, PTAC Program Director 

Capratt@uaa.alaska.edu

Jody King, Contract Specialist

anjlk3@uaa.alaska.edu

Gary Bushor, Contract Specialist

gjbushor@uaa.alaska.edu 

Alison Tompkins, Procurement Advisor 

amtompkins@uaa.alaska.edu 

Procurement Technical Assistance Center 

(PTAC)

Fairbanks Center

3750 Bonita St.

Fairbanks, AK 99701

907-456-7232 or 800-478-1701 Toll Free

907-456-7233 Fax

www.ptacalaska.org

Tina Henne, Administrative Assistant

Tina.henne@aksbdc.org

Technology Research and Development 

Center (TREND)

430 W. 7th Ave., Ste. 110

Anchorage, AK 99501

907-274-7232 or 800-478-7232 Toll Free

907-274-9524 Fax

www.trendalaska.org

Carolyn Pratt, Director

Capratt@uaa.alaska.edu 

COUNSELING
10 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

WOMEN’S BUSINESS CENTERS

The SBA’s Women Business Center 

(WBC) program is a network of 

110 community-based centers that 

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 evenings and weekends. 

WBCs are located within 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 are 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 2011, the WBC program 

counseled and trained nearly 139,000 

clients, creating local economic growth 

and vitality. In addition, WBCs helped 

entrepreneurs access more than $134 

million dollars in capital, representing a 

400 percent increase from the previous 

year. Of the WBC clients that 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 

(e200) INITIATIVE

 The SBA’s Emerging Leaders (e200) 

Initiative is currently hosted in 27 

markets across the country using a 

nationally demonstrated research-based 

curriculum that supports the growth 

and development of small to mediumsized firms that have substantial 

potential for expansion and community 

impact. A competitive selection 

process results in company executives 

participating in high-level training 

and peer-networking sessions led by 

professional instructors.

 Post-training, social and economic 

impact results from responding 

executives who participated in the 2008 

– 2010 training classes indicate: 

• More than half of participating 

businesses reported an increase in 

revenue, with 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 

worth a cumulative total of $287 million. 

• Approximately half of the participants 

have hired new workers, creating 275 

new jobs in 2010.

• All participants were 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 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, and courses for veterans 

and women seeking federal 

contracting opportunities, as well as 

an online library of podcasts, business 

publications, templates and articles.

Visit www.sba.gov/training for these 

free resources.

COUNSELING
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 11

COUNSELING

The SBA also offers a number of 

programs specifically designed to 

meet the needs of 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. The office 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 locallybased 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, and marketing, as well as 

access to all of the SBA’s financial and 

procurement assistance programs.

Women’s Business Solutions

Women’s Business Solutions is the 

only Small Business Administration 

designated Women’s Business 

Center in Alaska. The organization 

provides entrepreneurial training 

courses, hands-on computer and 

internet training, microloans up to 

$10,000 for women-owned businesses, 

marketing opportunities, mentoring, 

and consultations. For additional 

information contact:

Women’s Economic Empowerment Center

YWCA Alaska 

324 E. 5th Ave.

Anchorage, AK 99501

907-644-9600 or 907-644-9611

907-644-9650 Fax

www.ywcaak.org/finances.htm 

VETERAN BUSINESS OWNERS

The Office of Veterans Business 

Development (OVBD), established with 

Public Law 106-50, has taken strides 

in expanding assistance to veteran, 

service-disabled veteran small business 

owners and reservists by ensuring 

they have access to SBA’s full-range of 

business/technical assistance programs 

and services, and they receive special 

consideration for SBA’s entrepreneurial 

program and resources. 

The SBA’s Veterans office provides 

funding and collaborative assistance for 

a number of special initiatives targeting 

local veterans, service-disabled 

veterans, and Reserve Component 

members. These initiatives include 

Veterans Business Outreach Centers 

(VBOCs), the business assistance tools 

–Balancing Business and Deployment, 

and Getting Veterans Back to Business, 

which includes interactive CD ROMs 

for reservists to help prepare for 

mobilization and/or reestablishment 

of businesses upon return from active 

duty. 

The agency 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 

REACHING UNDERSERVED COMMUNITIES
12 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

COUNSELING

due to the loss of an essential employee 

called to active duty in the Reserves or 

National Guard. 

Each of the SBA’s 68 District Offices 

also has a designated veteran’s business 

development officer. These local pointsof-contact assist veteran small business 

owners/entrepreneurs with starting, 

managing and growing successful small 

firms. Yearly, 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. In fiscal year 

2011, the number of veterans assisted 

through OVBD programs exceeded 

135,000.

VETERANS BUSINESS 

OUTREACH CENTERS

The Veterans Business Outreach 

Program (VBOP) provides 

entrepreneurial development services to 

eligible veterans owning or considering 

starting a small business. The SBA 

has 15 Veterans Business Outreach 

Centers (VBOCs) that deliver a 

full-range of business assistance 

to veteran entrepreneurs and selfemployed members of the Reserve and 

National Guard. Assistance to these 

entrepreneurs and small business 

owners includes 1) pre-business plan 

workshops, 2) concept assessment, 

3) business plan preparations, 

4) comprehensive feasibility analysis, 

5) entrepreneurship training and 

6) mentorship. 

VBOCs aid clients in assessing 

their entrepreneurial needs and 

requirements, in developing and 

maintaining five-year business plans, 

and in evaluating and identifying 

the strengths and weaknesses in 

their business plans to increase 

the probability of success while 

simultaneously using the analysis to 

revise the strategic planning section 

of their business plans. Working with 

other SBA resource partners, VBOCs 

target entrepreneurial training projects 

and counseling sessions tailored 

specifically to address the needs and 

concerns of service-disabled veteran 

entrepreneurs. 

Among SBA’s unique services for 

veterans are: the Entrepreneurship 

Bootcamp for Veterans with Disabilities 

in partnership with eight top U.S. 

universities (www.whitman.sry.edu/ebv), 

WVISE, a program for training female 

veterans with an interest in and 

passion for entrepreneurship (www.syr.

edu/vwise), and Operation Endure and 

Grow, a program for Reservists and 

their family members (www.whitman.sry.

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 www.sba.gov/vets.

NATIONAL BOOTS TO 

BUSINESS INITIATIVE

The aptly named Operation Boots to 

Business program builds on SBA’s role 

as a national leader in entrepreneurship 

training. It was piloted at four to five 

sites commencing in October 2012, 

and will be rolled out across the nation 

during fiscal year 2013. The SBA will 

leverage its ongoing collaboration with 

Syracuse University’s Institute for 

Veterans and Military Families (IVMF) 

to provide comprehensive training 

materials specifically geared toward 

transitioning service members. SBA’s 

expert Resource Partner network, 

including Women’s Business Centers, 

SCORE chapters, Small Business 

Development Centers and Veterans’ 

Business Outreach Centers, are already 

providing targeted, actionable, realworld entrepreneurship training to 

more than 100,000 veterans every year, 

many of whom are service members 

transitioning out of the military. 

Through the Boots to Business 

initiative, SBA Resource Partners will 

build on these efforts by deploying this 

expertise at military bases around the 

country to collaboratively deliver faceto-face introductory entrepreneurship 

training as a network. Syracuse and 

its affiliated university partners 

will then deliver intensive, 8-week 

online business planning training to 

those service members who choose 

such training after the face-to-face 

introductory course. Of course, 

counselors and mentors from SBA’s 

Resource Partner network will be 

there to work with service members 

throughout the eight-week online 

course, and thereafter as these service 

members start their businesses. 

 The national program, when it is 

rolled out in fiscal year 2013, will be a 

robust, four-phase training program. 

The pilot is a more streamlined threephase training program. 

The national rollout of Operation 

Boots to Business: from Service to 

Startup aims to provide exposure to 

entrepreneurship to the 250,000 service 

members who transition every year. 

CENTER FOR FAITH-BASED AND 

NEIGHBORHOOD PARTNERSHIPS 

Faith-Based and Neighborhood 

Partnerships know their communities, 

and they have earned the community’s 

trust. Because of their credibility, 

they are uniquely positioned to build 

awareness of programs that encourage 

entrepreneurship, economic growth and 

job creation. 

The 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 the 

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.

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. 

The office 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.

Visit www.sba.gov/naa for more 

information.

REACHING UNDERSERVED COMMUNITIES
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 13

COUNSELING

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 these 

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.

Visit www.sba.gov/franchise for more 

information.

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 

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?
14 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

COUNSELING

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, and 

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. The 

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 

economic development specialists 

or veterans’ business development 

specialists.

Remember, the business plan is a 

flexible document that should change 

as your business grows.
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 15

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. The agency 

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. 

The 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 longterm, 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 the SBA to pay the lender that 

percentage of the outstanding balance 

guaranteed by the SBA. This allows 

the lender to recover a portion from the 

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 the SBA.

Percentage of Guaranties 

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 the 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.)

CAPITAL

Financing Options to Start or Grow Your Business

CAPITAL
16 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

Interest Rates and Fees

The actual interest rate for a 7(a) loan 

guaranteed by the SBA is negotiated 

between the applicant and lender 

and subject to the SBA maximums. 

Both fixed and variable interest rate 

structures are available. The maximum 

rate comprises 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 

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 the 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 

initially paid by the lender and then 

passed on to the borrower at closing. 

The funds to reimburse the lender 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 the SBA.

7(a) Loan Maturities

The SBA’s 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. Shortterm loans and revolving lines of credit 

are also available through the SBA to 

help small businesses meet their shortterm and cyclical working capital needs.

CAPITAL

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 needed, 

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 the SBA’s 

resource partners for assistance. 

There are several ways a lender can 

apply for a 7(a) guaranty from the 

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 

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 

the 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 the 

Preferred Lender Program or Express 

programs, the lender is delegated the 

authority to make the credit decision 

without the 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/ak Alaska Small Business Resource — 17

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. 

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 the 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 have the following 

general ranges:

• Manufacturing — from 500 to 1,500 

employees

• Wholesale Trades — Up to 100 

employees

• Services — $2 million to $35.5 million in 

average annual receipts

• Retail Trades — $7 million to $35.5 

million in average annual receipts

• Construction — $7 million to $33.5 

million in average annual receipts

• Agriculture, Forestry, Fishing, and 

Hunting — $750,000 to $17.5 million in 

average annual receipts

There is an alternate size standard 

for businesses that do not qualify under 

their industry size standards for SBA 

funding – tangible net worth 

($15 million or less) and average net 

income ($5 million or less for two 

years). This new alternate makes 

more businesses eligible for SBA loans 

and applies to SBA non-disaster loan 

programs, namely its 7(a) Business 

Loans and Development Company 

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 make 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: purchase machinery; equipment; 

fixtures; supplies; make leasehold 

improvements; as well as land and/or 

buildings that will be occupied by the 

business borrower. 

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 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 the SBA. It also 

includes the SBA’s anti-discrimination 

rules and limitations 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 the SBA’s lending programs. The 

agency has created several variations 

to the basic 7(a) program to address the 

particular financing needs 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 select, experienced 

lenders to use mostly their own forms, 

analysis and procedures to process, 

service and disburse SBA-guaranteed 

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 

CAPITAL
18 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

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. 

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;

• Active-duty service members eligible 

for the military’s Transition Assistance 

Program;

• Reservists and National Guard 

members;

• Current spouses of any of the above, 

including any service member;

• The widowed spouse of a service member 

or veteran who died during service or of 

a service-connected disability.

The Patriot Express loan is offered 

by the 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 either obtain all collateral or enough 

collateral so the value is equal to the 

loan amount.

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 the 

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 activation orders. The 

SBA also offers special low-interest-rate 

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.

Rural Lender Advantage

The Small/Rural Lender Advantage 

(S/RLA) initiative is designed to 

accommodate the unique loan 

processing needs of small community/

rural-based lenders by simplifying 

and streamlining the loan application 

process and procedures, particularly 

for smaller SBA loans. It is part of 

a broader SBA initiative to promote 

the economic development of local 

communities, particularly those 

facing the challenges of population 

loss, economic dislocation and high 

unemployment. Visit 

www.sba.gov/content/rural-business-loans

for more information.

Advantage Loans

In early 2011, the SBA rolled out 

two Advantage loan initiatives aimed 

at helping entrepreneurs and small 

business owners in underserved 

communities gain access to capital. 

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 

– who 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 for loans 

up to $5 million is designed to help 

small businesses meet their shortterm 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, subcontracts, or purchase 

orders; finance the direct cost associated 

with commercial and residential 

construction; or provide general working 

capital lines of credit. The 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 the cost associated with 

contracts, subcontracts, or purchase 

orders. Proceeds can be disbursed 

before the work begins. If used for one 

contract or subcontract, it is generally 

not revolving; if used for more than 

one contract or subcontract at a time, 

it can be revolving. The loan maturity 

is usually based on the length of the 

contract, but no more than 10 years. 

Contract payments are generally sent 

directly to the lender but alternative 

structures are available. 

• 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 business must 

have been in business for a period of 

12 months and must have a definite 

established seasonal pattern. The 

loan may be used over again after a 

“clean-up” period of 30 days to finance 

activity for a new season. These 

loans also may have a maturity of up 

to five years. The business may not 

have another seasonal line of credit 

outstanding but may have other lines 

for non-seasonal working capital needs. 

• The Builders Line Program provides 

financing for small contractors or 

developers to construct or rehabilitate 

residential or commercial property. 

Loan maturity is generally three 

years but can be extended up to 

five years, if necessary, to facilitate 

sale of the property. Proceeds are 

used solely for direct expenses of 

acquisition, immediate construction 

and/or significant rehabilitation 

of the residential or commercial 

structures. The purchase of the land 

can be included if it does not exceed 20 

percent of the loan proceeds. Up to 5 

percent of the proceeds can be used for 

physical improvements that benefit the 

property.

• The Working Capital Line is 

a revolving line of credit (up to 

$5,000,000) that provides short term 

working capital. These lines are 

generally used by businesses that 

provide credit to their customers. 

Disbursements are generally 

based on the size of a borrower’s 

accounts receivable and/or inventory. 

Repayment comes from the collection 

of accounts receivable or sale of 

inventory. The specific structure is 

negotiated with the lender. There may 

be extra servicing and monitoring of 

the collateral for which the lender can 

charge up to 2 percent annually to the 

borrower. 

International Trade Loan Program

The SBA’s International Trade 

Loan (ITL) is designed to help 

small businesses enter and expand 

into international markets and, 

CAPITAL
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 19

when adversely affected by import 

competition, make the investments 

necessary to better compete. The ITL 

offers a combination of fixed asset, 

working capital financing and debt 

refinancing with the SBA’s maximum 

guaranty--90 percent--on the total loan 

amount. The maximum loan amount is 

$5 million in total financing. 

 

Guaranty Coverage 

The SBA can guaranty up to 90 

percent of an ITL up to a maximum 

of $4.5 million, less the amount of 

the guaranteed portion of other SBA 

loans outstanding to the borrower. The 

maximum guaranty for any working 

capital component of an ITL is limited 

to $4 million. Any other working capital 

SBA loans that the borrower has are 

counted against the $4 million guaranty 

limit. 

Use of Proceeds

• For the facilities and equipment portion 

of the loan, proceeds may be used to 

acquire, construct, renovate, modernize, 

improve or expand facilities or 

equipment in the U.S. to produce goods 

or services involved in international 

trade, including expansion due to 

bringing production back from overseas 

if the borrower exports to at least one 

market. 

• Working capital is an allowable use of 

proceeds under the ITL.

• Proceeds may be used for the refinancing 

of debt not structured on reasonable 

terms and conditions, including any debt 

that qualifies for refinancing under the 

standard SBA 7(a) Loan Program.

Loan Term 

• Maturities on the working capital 

portion of the ITL are typically limited 

to 10 years. 

• Maturities of up to 10 years on 

equipment unless the useful life exceeds 

10 years. 

• Maturities of up to 25 years are 

available for real estate.

• Loans with a mixed use of fixed-asset 

and working-capital financing will have 

a blended-average maturity.

Interest Rates

Lenders may charge between 2.25 to 

2.75 percent above the prime rate (as 

published in the Wall Street Journal) 

depending upon the maturity of the 

loan. Interest rates on loans of $50,000 

and less can be slightly higher.

Exporter Eligibility

• Applicants must meet the same 

eligibility requirements as for the SBA’s 

standard 7(a) Loan Program.

• Applicants must also establish that 

the loan will allow the business to 

expand or develop an export market 

or, demonstrate that the business 

has been adversely affected by import 

competition and that the ITL will allow 

the business to improve its competitive 

position. In addition, “indirect export” 

is an acceptable eligibility criterion for 

the ITL. Indirect exports occur when 

the borrower’s customer is a U.S.-based 

business that might incorporate the 

borrower’s product into a final product 

being exported or an Export Trading 

Company that purchases a product to 

be exported. The borrower would need 

documentation from the exporter-ofrecord that its product, is, in fact, being 

exported.

Foreign Buyer Eligibility 

Foreign buyers must be located in 

those countries wherein the ExportImport Bank of the U.S. is not 

prohibited from providing financial 

assistance. 

Collateral Requirements 

• Only collateral located in the 

U.S. (including its territories and 

possessions) is acceptable.

• First lien on property or equipment 

financed by the ITL or on other assets 

of the business is required. However, 

an ITL can be secured by a second lien 

position if the SBA determines there is 

adequate assurance of loan payment.

• Additional collateral, including 

personal guaranties and those assets 

not financed with ITL proceeds, may 

be appropriate. 

How to Apply

• A small business seeking an ITL must 

apply to an SBA-participating lender. 

The lender will submit a completed 

Application for Business Loan (SBA 

Form 4), including all exhibits, to the 

SBA. Visit http://www.sba.gov to find 

your local SBA district office for a list of 

participating lenders.

• A small business wanting to qualify 

as adversely impacted from import 

competition must submit supporting 

documentation that explains the impact, 

and a plan with projections that explains 

how the loan will improve the business’ 

competitive position. 

• A small business expanding exports 

would need a business plan and 

export sales projections showing 

increased export sales and/or global 

competitiveness as a result of the ITL 

financing. 

Export Express

SBA Export Express offers flexibility 

and ease of use for both borrowers 

and lenders. It is the simplest export 

loan product offered by the SBA and 

allows participating lenders to use their 

own forms, procedures and analyses. 

The SBA provides the lender with a 

response within 36 hours.

This loan is subject to the same 

loan processing, 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). 

Guaranty Coverage

The SBA provides lenders with a 

90 percent guaranty on loans up to 

$350,000 and a 75 percent guaranty on 

loans between more than $350,001 and 

$500,000.

Use of Proceeds

Loan proceeds may be used for 

business purposes that will enhance a 

company’s export development. Export 

Express can take the form of a term 

loan or a revolving line of credit. As 

an example, proceeds can be used to 

fund participation in a foreign trade 

show, finance standby letters of credit, 

translate product literature for use in 

foreign markets, finance specific export 

orders, as well as to finance expansions, 

equipment purchases, and inventory or 

real estate acquisitions, etc.

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.

Exporter Eligibility

Any business that has been in 

operation, although not necessarily in 

exporting, for at least 12 full months 

and can demonstrate that the loan 

proceeds will support its export activity 

is eligible for Export Express.

Foreign Buyer Eligibility 

The exporter’s foreign buyer must be a 

creditworthy entity and the methods of 

payment must be acceptable to the SBA 

and the SBA lender.

How to Apply

Interested businesses should contact 

their existing lender to determine 

if they are an SBA Express lender. 

Lenders that participate in SBA’s 

Express program are also able to make 

Export Express loans. Application is 

made directly to the lender. Lenders 

use their own application material 

in addition to the SBA’s Borrower 

Information Form. Lenders’ approved 

requests are then submitted with a 

CAPITAL
20 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

limited amount of eligibility information 

to the SBA’s National Loan Processing 

Center for review.

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. 

Exporters can apply for EWCP loans 

in advance of finalizing an export sale 

or contract. With an approved EWCP 

loan in place, exporters have greater 

flexibility in negotiating export payment 

terms — secure in the assurance that 

adequate financing will be in place 

when the export order is won.

Benefits of the EWCP

• Financing for suppliers, inventory or 

production of export goods.

• Export working capital during long 

payment cycles.

• Financing for stand-by letters of credit 

used as bid or performance bonds or 

down payment guarantees.

• Reserves domestic working capital for 

the company’s sales within the U.S.

• Permits increased global competitiveness 

by allowing the exporter to extend more 

liberal sales terms.

• Increases sales prospects in underdeveloped markets which have high 

capital costs for importers.

• Low fees and quick processing times.

Guaranty Coverage

• Maximum loan amount is $5,000,000.

• 90 percent of principal and accrued 

interest up to 120 days.

• Low guaranty fee of one-quarter of one 

percent of the guaranteed portion for 

loans with maturities of 12 months or 

less.

• Loan maturities are generally for 12 

months or less.

Use of Proceeds

• To pay for the manufacturing costs of 

goods for export.

• To purchase goods or services for export.

• To support standby letters of credit to 

act as bid or performance bonds.

• To finance foreign accounts receivable.

• Indirect exports also are an eligible use 

of proceeds. Indirect exports occur when 

the borrower’s customer is U.S.-based 

businesses that might incorporate the 

borrower’s product in a final product 

being exported or an Export Trading 

Company that purchases a product to 

be exported. The borrower would need 

documentation from the exporter of 

record that its product is, in fact, being 

exported/

Interest Rates

The SBA does not establish or 

subsidize interest rates on loans. The 

interest rate can be fixed or variable 

and is negotiated between the borrower 

and the participating lender.

Advance Rates

• Up to 90 percent on purchase orders.

• Up to 90 percent on documentary letters 

of credit.

• Up to 90 percent on foreign accounts 

receivable.

• Up to 75 percent on eligible foreign 

inventory located within the U.S.

• In all cases, not to exceed the exporter’s 

costs.

Collateral Requirements

Transaction collateral is typically 

adequate to secure an EWCP loan 

via export-related inventory, and the 

accounts receivable generated by the 

export sales, as well as an assignment 

of proceeds of any letter of credit or 

insurance policies covering export 

sales financed with EWCP funds. The 

SBA requires the personal guarantee 

of owners with 20 percent or more 

ownership stake.

How to apply

Application is made directly to the 

SBA’s participating lenders. Businesses 

are encouraged to contact SBA staff 

at their local U.S. Export Assistance 

Center (USEAC) to discuss whether 

they are eligible for the EWCP and 

whether it is the appropriate tool to 

meet their export financing needs. 

Participating lenders review/approve 

the application and submit the request 

to SBA staff at the local USEAC.

U.S. Export Assistance Center 

There are 20 U.S. Export Assistance 

Centers located throughout the 

U.S. They are staffed by SBA, U.S. 

Department of Commerce and, in 

some locations, Export-Import Bank of 

the U.S. personnel, and provide trade 

promotion and export-finance assistance 

in a single location. The USEACs 

also work closely with other federal, 

state and local international trade 

organizations to provide assistance to 

small businesses. To find your nearest 

USEAC, visit: www.sba.gov/content/

us-export-assistance-centers. You can 

find additional export training and 

counseling opportunities by contacting 

your local SBA office. 

Pru Balatero

Regional Manager, 

International Trade Programs

U.S. Export Assistance Center

2601 4th Ave., Ste. 320

Seattle, WA 98121

206-553-0051 ext. 228

206-553-7253 Fax

pru.balatero@sba.gov

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 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.

• 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 two 

years old), and a further injection of 5 

percent is also required if the primary 

collateral will be a single-purpose 

building (such as a hotel).

CAPITAL
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 21

• 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. The 

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. 

Evergreen Business Capital

Barbara Gill, Senior Loan Officer

P.O. Box 3673

Palmer, AK 99645-3673

907-746-5047

800-878-6613 Toll Free, Main Office

www.evergreen504.com

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 seven years. 

The program also provides businessbased 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 

the nearest SBA district office for 

information about the nearest Microloan 

Program Intermediary Lender or go to 

www.sba.gov/microloans.

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 what owners can fund directly 

and the needs of the small business 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. The funds raise 

private capital and can receive SBAguaranteed leverage up to three times 

private capital, 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.

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. 

Technology Research and Development 

Center (TREND)

430 W. 7th Ave., Ste. 110

Anchorage, AK 99501-3550

907-274-7232 or 800-478-7232 Toll Free

907-274-9524 Fax

www.trendalaska.org

Carolyn Pratt, Director 

ancap1@uaa.alaska.edu

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 public/private sector partnerships 

to include joint venture opportunities 

CAPITAL
22 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

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 incentive 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, the 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 the SBA’s prior approval for each 

bond guarantee issued. Under Plan B, 

the SBA guarantees 70 percent, but 

sureties may issue, monitor and service 

bonds without the SBA’s prior approval.

Pippel Insurance Company

Annette Troseth

9061 E. Frontage Rd.

Palmer, AK 99645

907-745-3261 or 

888-524-3261 Local Toll Free

907-745-8417 Fax 

www.pippelinsurance.com/

annette@pippelinsurance.com

Blair Insurance Services, Inc.

1201 Logan Blvd.

Altoona, PA 16602

814-946-9486

Bonni Hand

blairbonni@aol.com

www.blair-insurance.com

Business Insurance Associates

1503 W. 32nd Ave.

Anchorage AK, 99503

907-274-4142

Chris Pobieglo

chris@businessinsuranceassociates.com

www.businessinsuranceassociates.com/

CCI Surety, Inc.

1710 N. Douglas Dr., Ste. 110

Golden Valley, MN 55422

763-543-6993

Jeremy Crawford

jcrawford@ccisurety.com 

www.ccisurety.com

Marsh USA

1031 W. 4th Ave., Ste 400

Anchorage, AK 99501

907-276-5617

Kelly Layman

kelly.layman@marshmc.com

The Surety Group Agency, LLC

3715 Northside Pkwy. N.W.

Bldg. 100, Ste. 315

Atlanta, GA 30327

404-352-8211

Chris Slack

info@suretygroup.com

Wells Fargo Insurance Services USA, Inc

5755 Mark Dabling Blvd., Ste. 300

Colorado Springs, CO 80919

719-592-1177

Christina Schulman

christina.schulman@wellsfargo.com

Wells Fargo Insurance Services USA, Inc

1500 W. Benson Blvd., Ste. 102

Anchorage, AK 99503

907-297-7300

Kathy Beggs

Kathy.a.beggs@wellsfargo.com

Contractors Bonding & Insurance Co

3101 Western Ave., Ste 300

Seattle, WA 98121

800-765-2242

Barrett & Associates Insurance, LLC

502 E. Park Ave.

Wasilla, AK 99654 

907-373-5273

Colleen Ferris

colleen@barrettinsuranceak.com

CAPITAL
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 23

CAPITAL

CHIEF EVERYTHING OFFICER 

NO MORE: STAFFING YOUR 

BUSINESS

Being the Chief Everything Officer 

is okay for some, but if you’ve got 

plans for growth or simply need an 

extra pair of hands, what are the best 

staffing options for your business?

Taking on full-time employees can 

be a risk. What if your growth strategy 

doesn’t go as planned and you’re 

left with payroll and other employee 

expenses to cover? Should you hire 

independent contractors or outsource 

key functions?

Here are some staffing options that 

you might want to consider, as well 

as some insights on the tax and legal 

ramifications of each.

1. Hire Your Spouse or Family

 Friends and family may be able to 

jump in and support your business – 

given the right terms. Weigh the skills 

they can bring and what you can offer 

in return. Establish clear goals and 

objectives and offer fair compensation, 

and make sure you understand the 

legal, tax and labor laws that may 

impact your decision.

2. Work with Independent Contractors

 Hiring independent contractors or 

freelancers gives you the flexibility 

to get help when and as you need it 

from specialists in a particular field. 

Independent contractors are also 

self-employed, which means you don’t 

have the burden of handling payroll, 

employment taxes and the other 

obligations of managing employees.

 

The best way to find independent 

contractors is word of mouth and 

referrals. Ask around.

 Tip: The IRS holds a big magnifying 

glass over companies that work with 

independent contractors and with 

businesses that misclassify employees 

as independent contractors. The 

reason? Statistics show that 30 percent 

of firms do this and that’s a big loss for 

the IRS in terms of employment taxes.

 So be sure you understand what 

you can and can’t require of an 

independent contractor and make sure 

you’re not treating them as employees. 

For example, you can’t dictate when 

and where they conduct work. 

3. “Temp” Staffing Agencies

 If you need to quickly staff a position 

with qualified and screened candidates, 

particularly administrative or support 

functions, temp agencies might be an 

option. But this can be an expensive 

way to staff your business for the 

long haul. Temp agencies take up to 

a 30 percent cut of the hourly rate 

that you pay and also charge tempto-permanent fees if you decide to 

hire that person full-time. Another 

important consideration is that 

temporary workers are also less likely 

to be invested in your business success 

than employees and even contractors.

4. Hire Seasonal Employees

 If your business is seasonal, part-time 

seasonal workers are a must. The 

thing to remember is that unless you 

work with independent contractors, 

many of the laws and regulations that 

apply to full-time employees also apply 

to seasonal or part-time employees. For 

a soup-to-nuts understanding of what’s 

involved with hiring seasonal workers, 

such as what benefits must you 

provide, read Hiring Seasonal Workers.

5. Outsource Business Functions

 Whether you turn to a virtual 

assistant for help managing your 

calendar, voice mail, and perhaps 

some basic bookkeeping, or you need 

help with core business functions 

such as accounting, marketing or HR, 

outsourcing can be a low-overhead 

option that lets you concentrate more 

on business growth and less on day-today distractions. 

6. Bringing on Employees

 If you do choose to move forward with 

part- or full-time employees, you’ll 

need to make sure you are aware 

and compliant with a few key legal 

and regulatory steps – the brochure 

10 Steps to Hiring your First Employee 

from SBA can really help.

Tips for Getting the Most from Yourself and Others
24 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

CAPITAL

Use of Proceeds in SBA Loan Programs

Ways Borrowers Can Use The Money

(Information current as of 09/19/2012)

Program Who Qualifies Use of Proceeds Maturity Maximum Loan 

Amount

Structure Benefit to

Borrower

Basic 7(a) For-profit 

businesses that can 

meet SBA’s size 

standards, nature 

of business, use 

of proceeds, credit 

elsewhere, and 

other miscellaneous 

eligibility factors.

Acquire land; purchase 

existing building; convert, 

expand or renovate buildings; 

construct new buildings; 

acquire and install fixed 

assets; acquire inventory; 

purchase supplies and 

raw materials; purchase a 

business, start a business, 

leasehold improvements, term 

working capital; and under 

certain conditions to refinance 

certain outstanding debts.

Based on the use 

of proceeds and 

borrower’s ability to 

repay. Not based on 

collateral. Maximum 

maturity: 10 years for 

working capital

(seven years is 

common), 10 years 

for fixed assets,

25 years for real 

estate.

A basic 7(a) can 

be for as much 

as $5 million. 

SBA’s limit to any 

one business is 

$3.75 million so 

a business can 

have multiple loans 

guaranteed by SBA 

but the SBA portion 

cannot exceed 

$3.75 million.

Term loans with one 

monthly payment of 

principal and interest 

(P&I). Borrower 

contribution required. 

Interest rate depends 

upon how lender 

applies for guaranty 

(see lender program 

chart), Cannot revolve, 

no balloon or call 

provisions.

Obtains 

financing not 

otherwise 

available, 

fixed maturity, 

available when 

collateral is 

limited. Can 

establish 

or re-affirm 

relationship 

with lender.

International 

Trade Loan 

(ITL)

Same as basic 

7(a). Plus, business 

must be engaged or 

preparing to engage 

in exporting or be 

adversely affected 

by competition from 

imports.

Acquire, renovate, modernize 

facilities or equipment 

used in making products 

or services to be exported.

Plus, for permanent working 

capital and to refinance 

business debts currently on 

unreasonable terms.

Same as basic 7(a). Same as basic 

7(a), but when 

borrower has both 

international trade 

and working capital 

loans, guaranteed 

by the SBA, the 

limit to any one 

business can be

$4 million.

Same as basic 7(a). Same as basic 

7(a). Plus, 

long-term 

financing for 

export related 

fixed assets 

and working 

capital.

Export 

Working 

Capital Loans 

(EWCP)

Same as basic 7(a). 

Plus, must be in 

business one year 

and engaged or 

preparing to engage 

in exporting.

Short-term working capital for 

export purposes, including 

ability to support an Export 

Stand-By Letter of Credit.

Can be up to a 

maximum of 36 

months but generally 

12 months or less. 

Same as basic 

7(a). 

Finance single or 

multiple transactions. 

Interest paid monthly, 

principal paid as 

payments from items 

shipped overseas 

are collected. Can 

be renewed annually. 

Extra fees apply. 

Percentage of 

guaranty up to 90%. 

Generally revolving. 

Provides 

American 

exporters with 

line of credit 

that can be 

separated 

from domestic 

operations line 

of credit.

Seasonal 

CAPlines

Same as basic 

7(a). Plus, in 

business for at 

least one year and 

can demonstrate 

seasonal financing 

needs.

To finance the seasonal 

increases of accounts 

receivable, inventory and 

labor.

10 years Same as basic 

7(a).

Short-term financing 

for seasonal activities 

to be repaid at the 

end of the season 

when payment for the 

seasonal activity is 

made to business.

Provides 

opportunity 

for seasonal 

businesses to 

get seasonal 

financing not 

otherwise 

available.

Contract 

CAPlines

Same as basic 7(a). 

Plus, will perform 

on contract or 

purchase order for 

some third party 

buyer.

To finance the cost of one or 

more specific contract, subcontract, or purchase order, 

including overhead or general 

and administrative expenses, 

allocable to the specific 

contract(s).

10 years Same as basic 

7(a). 

Short-term financing 

for performance of 

approved contract, 

sub-contract, or 

purchase order to be 

repaid when payment 

for the activity is made 

to business. Can be 

revolving or not.

Provides 

opportunity for 

contractors and 

sub-contractors 

to get financing 

not otherwise 

available.

Builders 

CAPlines

Same as basic 

7(a). Plus, building/

renovating 

residential or 

commercial 

structure for re-sale 

without knowing 

buyer at time of 

approval.

For the direct expenses 

related to the construction 

and/or “substantial” renovation 

costs of specific residential 

or commercial buildings 

for resale, including labor, 

supplies, materials, equipment 

rental, direct fees. The cost of 

land is potentially eligible.

Maximum of three 

years to disburse 

and build or 

renovate. Extension 

possible to 

accommodate sale.

Same as basic 

7(a). 

Short-term financing to 

build or renovate home 

or building for sale to 

unknown third party. 

“Substantial” means 

rehabilitation expenses 

of more than one-third 

of the purchase price 

or fair market value at 

the time of application. 

Can be revolving or 

not.

Provides 

opportunity for 

residential and 

commercial 

builders to 

get financing 

not otherwise 

available.
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 25

CAPITAL

Program Who Qualifies Use of Proceeds Maturity Maximum Loan 

Amount

Structure Benefit to

Borrower

Working 

Capital 

CAPlines

Same as basic 

7(a). Plus, business 

needing short term 

revolving line of 

credit.

For short-term working 

capital and operating needs. 

Proceeds must not be used 

to pay delinquent withholding 

taxes or similar trust funds 

(state sales taxes, etc.) or for 

floor planning.

10 years Same as basic 

7(a).

Lender has latitude 

with structuring 

principal payments. 

Borrower should 

discuss with lender. 

Must be revolving. 

Extra fees apply.

Provides 

opportunity for 

businesses that 

sell on credit to 

get revolving 

financing not 

otherwise 

available.

Dealer Floor 

Plan Pilot

Same as basic 7(a). 

Plus, businesses 

engaged in retail 

sales of inventory 

requiring floor 

plan financing 

requirements.

For the acquisition of 

inventory at wholesale 

prices for retail re-sale that is 

classified as titleable inventory 

(auto, motorcycle, boat, RV, 

trailers, and manufactured 

homes).

Minimum one year

Maximum five years

$5 million.

Minimum loan size: 

$500,000

Revolving Floor 

Plan financing. 

Disbursement to 

acquire floor plan 

inventory, repayment 

immediately after item 

of inventory is sold. 

Potential high degree 

of lender monitoring 

with corresponding 

extra servicing fees.

Provides 

opportunity for 

businesses 

needing floor 

plan financing 

when such 

financing 

may not be 

otherwise 

available.

Lender 

Structured 

Line of Credit

Businesses needing 

a line of credit.

Working capital If revolving, sevenyear maximum, 

including term out 

period.

Depends upon how 

the lender chooses 

to apply for an 

SBA Guaranty. 

Generally up to 

$350,000.

Structure is established 

by individual lender.

Has availability 

for a line 

of credit to 

help with the 

short-term cash 

needs of the 

business.

Non-7(a) Programs

504 Loan 

Program

Businesses that can 

meet the SBA’s size 

standards, nature 

of business, use 

of proceeds, credit 

elsewhere, and 

other miscellaneous 

factors.

For the acquisition of longterm fixed assets, equipment 

with a useful life of at least 

10 years; refinance loan-term 

fixed asset debt under certain 

conditions; working capital 

under certain conditions; to 

reduce energy consumption; 

and to upgrade renewable 

energy sources.

Based on the use of 

proceeds.

Twenty years for real 

estate.

Ten years for 

machinery and 

equipment.

Based on the use 

of proceeds.

Twenty years for 

real estate.

Ten years for 

machinery and 

equipment.

Loans packaged by 

Certified Development 

Companies (CDC) and 

designed to finance

up to 40 percent of a

“project 1” secured 

with a 2nd position 

lien. Another loan 

from a third party 

lender financing up 

to 50 percent of the 

same project secured 

in 1st position, and 

borrower contribution 

of at least 10 percent. 

Extra contributions 

for special purpose 

properties and new 

businesses.

Fees under

3 percent, longterm fixed rate, 

low borrower 

contribution, full 

amortization 

with no call 

or balloon 

conditions.

Microloan 

Program

Same as basic 

7(a). Plus, start-up 

nonprofit child-care 

businesses.

Same as basic 7(a). Plus, 

funds to establish nonprofit 

child-care centers.

Shortest term 

possible, not to 

exceed six years.

$50,000 to the 

small business at 

any given time.

The SBA provides 

a loan to a nonprofit 

micro-lender called 

an “intermediary” who 

uses the proceeds 

to make microloans 

to small businesses. 

Technical assistance 

can also be provided.

Direct loan 

from nonprofit 

intermediary 

lender, fixedrate financing, 

can be very 

small loan 

amounts, 

and technical 

assistance is 

available.

1 “Project” is the purchase or lease, and/or improvement or renovation of long term fixed assets by a small business, with 504 financing, for use in its

business operations.

All SBA programs and services are provided on a nondiscriminatory basis.
Lender’s Program Chart

Ways Lenders Can Request Guarantees

(Information current as of 09/19/2012)

The chart below explains the rules for lenders for various SBA-backed loans to borrowers.

Processing 

Program

Which Lenders 

Qualify

Types of Use of 

Proceeds Loans that 

can be Guaranteed

Maximum Allowable 

Interest Rates

Eligibility Analysis Credit Analysis Maximum Loan 

Amount

Standard 

Processing

Lenders that 

have an executed 

participation 

agreement with the 

SBA.

Basic 7(a). International 

trade, export working 

capital, all CAPlines, 

dealer floor plan.

Base rate is Wall Street

Journal prime, LIBOR*

one month rate plus

3 percent, or SBA Peg 

rate. Plus, an allowable 

spread from 2.25 to

2.75 percent based on 

term. Lender can add

2 percent if loan is 

$25,000 or less, and

1 percent if $25,001 to 

$50,000. Can be fixed 

or variable.

Lender completes 

eligibility questionnaire 

and SBA reviews 

eligibility during loan 

processing.

Lender to cover 

all aspects of 

prudent credit 

analysis with 

emphasis on 

applicant’s ability 

to repay loan 

from operation. 

SBA conducts 

analysis of 

lender’s work.

Maximum loan

$5 million.

Loans up to 

$150,000 

guaranteed up to 

85 percent; loans 

over $150,000 

guaranteed up to 

75 percent.

Business with 

multiple SBA 

loans may get 

some variations.

Certified 

Lender 

Program 

(CLP) 

Processing

Same as Standard 

7(a). Plus, an 

executed CLP 

agreement.

Same as Standard 

processing except no 

policy exceptions.

Same as Standard 7(a). Same as Standard 7(a). Same as 

Standard 7(a) 

except SBA 

reviews lender’s 

work, not a reanalysis.

Maximum loan

$5 million.

Guaranty 

percentage same 

as Standard 7(a).

Preferred 

Lender 

Program 

(PLP) 

Processing

Same as Standard 

7(a). Plus, an 

executed PLP 

agreement.

Same as Standard 

processing except 

restrictions on loans 

involving some types of 

debt refinancing.

Same as Standard 7(a). Lender completes 

Eligibility Checklist (SBA 

Form 7).

Delegated to 

lender.

Maximum loan

$5 million.

Guaranty 

percentage same 

as Standard 7(a).

SBA Express 

Processing

Same as Standard

7(a). Plus, an

executed SBA

 Express 

agreement.

Basic 7(a) with 

restrictions on some 

types of debt refinancing. 

Plus, lender structured 

term and revolving loans.

If $50,000 or less, 

cannot exceed prime 

+ 6.5 percent. If over 

$50,000, cannot exceed 

prime + 4.5 percent. 

Prime may be lender 

prime.

Lender completes SBA 

Form 1920SX (Part C) 

“Eligibility Information.” 

Delegated to 

lender.

Maximum loan 

$350,000.

Guaranty 

percentage

50 percent.

Patriot 

Express 

Processing

Same as Standard 

7(a). Plus, either 

an executed PLP 

or SBA Express 

Agreement.

Basic 7(a) except 

restrictions on some 

types of refinancing.

Same as Standard 7(a) 

except Prime may be 

Lender Internal Prime.

Lender completes SBA 

Form 1920SX (Part C) 

“Eligibility Information.”

Must be member of the 

military community.

Delegated to 

lender.

Maximum loan 

$500,000.

Guaranty 

percentage same 

as Standard 7(a).

Export 

Express 

Processing

Same as Standard

7(a). Plus, an

executed 

Export Express 

Agreement.

Similar to export working 

capital loans and

international trade loans 

which meet export related 

eligibility criteria.

If $50,000 or less, cannot 

exceed prime + 6.5 

percent. If over $50,000, 

cannot exceed prime + 

4.5 percent. Prime may 

be lender prime.

Lender completes SBA 

Form 1920SX (Part C) 

“Eligibility Information.”

Delegated to 

lender.

Maximum loan 

$500,000.

Guaranty 

percentage same 

as Standard 7(a).

Small/Rural 

Lender 

Advantage

Same as Standard 

7(a). Plus, separate 

approval based on 

having processed 

20 or fewer SBA 

loans annually over 

the last three fiscal 

years. 

Basic 7(a) except 

restrictions on some 

types of refinancing.

Same as Standard 7(a). Lender completes 

SBA Form 2301 

(Part C) “Eligibility 

Questionnaire.”

Similar to 

Standard 7(a) 

except credit 

factors to 

consider are 

more defined.

Maximum loan 

$350,000.

Guaranty 

percentage same 

as Standard 7(a).

Community 

Advantage

Same as Standard 

7(a). Plus, an

executed 

Community 

Advantage 

Agreement.

Basic 7(a) except 

restrictions on some 

types of refinancing.

Prime plus 6 percent. Non-Delegated Lenders 

complete SBA Form 

2301 (Part C).

Delegated Lenders 

complete SBA Form 

2301 (Part D).

Similar to 

Standard 7(a) 

except credit 

factors to 

consider are 

more defined.

Maximum loan 

$250,000.

Guaranty 

percentage same 

as Standard 7(a).

Small Loan 

Advantage

Same as 

Standard 7(a) 

and having PLP 

and/or Express 

Agreement 

provides added 

benefit to lender.

Basic 7(a) except 

restrictions on some 

types of refinancing.

Same as Standard 7(a). Lender completes SBA 

Form 1920SX (Part C) 

“Eligibility Information.”

Similar to 

Standard 7(a) 

except credit 

factors to 

consider are 

more defined.

Maximum loan 

$350,000.

Guaranty 

percentage same 

as Standard 7(a).

All SBA programs and services are provided on a nondiscriminatory basis. * London InterBank Offered Rate

26 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

CAPITAL
FEATURE

Over the past three years the SBA has worked hard to 

provide small businesses with the tools they need to help lead 

our nation out of recession and into recovery. To better serve 

small businesses, we streamlined and simplified many existing 

programs for small business owners and entrepreneurs. These 

efforts have allowed us to provide small businesses with greater 

access and opportunity than ever before. 

Whether you are an entrepreneur just starting out with a 

great idea, or a long-time small business owner who needs help 

growing your company, the SBA has the resources to help. Now 

is a great time to contact your local district office, or check out 

www.SBA.gov and find out how your business can benefit. 

The SBA is becoming more nimble than ever before. As 

you’ll see throughout this resource guide, the improvements 

that the agency has made in streamlining and simplifying 

span government contracting, access to capital, training and 

counseling and disaster initiatives. 

Simplifying Access to Capital Procedures

The SBA knows that it is important for entrepreneurs to be able 

to find the capital they need to start and grow their businesses. 

So this year, we focused on making the application and approval 

processes for many of our financing guarantee programs simpler 

and more streamlined. 

For example, we reengineered CAPLines, a program designed 

to help small businesses meet their short term and cyclical 

working capital needs. CAPLines now allows small businesses 

to borrow against accounts receivable, inventory, contracts and 

purchase orders in order to secure a revolving line of credit. The 

revamped program also enables small business subcontractors to 

obtain an agency-guaranteed line of credit to finance work on a 

contract with a federal prime contractor. 

Last year, the Small Loan Advantage (SLA) program was 

revamped to create a simpler application process for a 7(a) loan 

up to $250,000. This year, we launched SLA 2.0, which further 

simplifies the process by credit scoring each loan in advance of 

approval. SLA 2.0 will also expand the pool of qualified lenders 

to include entities outside of the agency’s Preferred Lender 

Program. 

Over the past year, the Small Business Investment Company 

(SBIC) licensing process has becoming increasingly efficient, 

cutting the average licensing time in half from more than 14 

months to five and a half months. SBICs are privately owned 

and managed investment funds that use their own capital, plus 

funds backed by an SBA guarantee, to invest in small businesses. 

The streamlined licensing process has made it possible to more 

easily get capital into the hands of small businesses, allowing 

SBICs to invest in companies that can grow and create jobs. 

Streamlining the Federal Contracting Process

The SBA is also working hard to make the federal contracting 

process more efficient for small businesses. Last year, Quick 

Pay cut the amount of time it takes federal agencies to pay 

small businesses for the products and services they deliver to 

the federal government from 30 days to 15 days. When small 

businesses get their money in 15 days instead of 30, it results in a 

permanent infusion of cash flow into their businesses. They can 

put that money toward expanding their business, marketing their 

products and creating jobs. 

Streamlining Small Business Assistance through 

Partnerships

This year we have reached out to create new partnerships 

that will streamline small business assistance efforts and reach 

more audiences. For example, the SBA and the AARP have 

agreed to work together not only to help a larger number of 

encore entrepreneurs, i.e., those over the age of 50, to start their 

own businesses, but also to encourage more experienced small 

business owners to serve as mentors for those who are just 

starting out. 

To help transitioning service members who are interested in 

starting their own business, the SBA announced in July 2012 

the launch of Boots to Business, a partnership with Syracuse 

University, which teaches returning service men and women 

about the opportunities and realities of entrepreneurship. This 

partnership builds on the leadership and management skills 

veterans have learned during their active duty and Reserve 

service to prepare them for possible business ownership. 

Simplifying Disaster Loan Processes

The agency has also made significant progress in streamlining 

and simplifying the disaster loan application and approval 

process. Over the past few years, the SBA has reduced the 

average processing time for disaster loans from over 70 days to 

just 10 days. 

The process of applying for a disaster loan has also been 

simplified for small businesses, homeowners and renters. SBA 

Administrator Karen G. Mills said it was just the right thing 

to do. “Our goal is to provide support for those rebuilding 

after a disaster, and we wanted to make the process more 

user-friendly,” Mills said. “Whether it’s a hurricane, tornado, 

earthquake or devastating flood, the SBA can step in to help 

communities get back on their feet by providing access to both 

home and business recovery disaster loans. To make the loan 

application process more streamlined and simplified, we have 

taken a different approach with the online applications. This 

improvement will make those first steps toward recovery more 

convenient.”

For those affected by these tragedies, the SBA now offers the 

option of filing home and business disaster loan applications 

through the Electronic Loan Application. The Electric Loan 

Application simplifies the application process and expedites 

the delivery of assistance to small businesses, homeowners and 

renters affected by disasters. For more information, check out 

www.sba.gov/disaster. 

In addition, the increasingly agile SBA is streamlining and 

simplifying its processes and procedures to provide more access 

and opportunity for capital, counseling and contracting for small 

businesses. In the following pages, you can read more about 

the programs and initiatives the SBA has created and refined. 

You can also find contact information for our 68 district offices 

on the inside back cover, where trained professionals can walk 

you through getting a loan, competing for contracts, or finding a 

business counselor. 

If you are looking for more information, check out our website, 

www.sba.gov. While you are there, sign up for the agency’s 

SBA Online Community to explore resources from our resource 

partners and other small business owners. To sign up for our 

e-mail newsletter, visit www.sba.gov/updates. 

The SBA: Streamlining and Simplifying

 “Whether it’s a hurricane, tornado, earthquake 

or devastating flood, the SBA can step in to help 

communities get back on their feet by providing access 

to both home and business recovery disaster loans.”

Administrator Karen Mills,

U.S. Small Business Administration

Visit us online: www.sba.gov/ak Alaska Small Business Resource — 27
28 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

CONTRACTING

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 Small Business Administration 

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 (SDB), 

businesses that are women-owned 

(WOSB) or service-disabled veteranowned (SDVOSB), and 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 contracting 

opportunities for small businesses.

Office of Government Contracting

Marichu Relativo

Procurement Center Representative

420 L. St., Ste. 300

Anchorage, AK 99501

907-271-2297

marichu.relativo@sba.gov

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 awarded to a responsible bidder 

who’s bid, conforming to the invitation 

for bids, will be most advantageous to 

the government, considering only price 

and the price-related factors included 

in the invitation for bid. The second 

method, negotiation, involves issuing a 

request for proposal (RFP) or request 

for quotation (RFQ). The business with 

the best proposal in terms of technical 

content, best value, price and other 

factors generally wins the contract.

Types of Contracts

Firm fixed-price contracts place 

the full 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. It provides 

maximum incentive for the contractor 

to control costs and perform effectively 

and imposes a minimum administrative 

burden upon the contracting parties. 

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 commonly 

used in research and development 

contracts.

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).

CONTRACTING

Applying for Government Contracts
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 29

CONTRACTING

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 is 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 Research 

and Development (R&D) small business 

set-asides, there must be 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 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 this 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 for 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 that 

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 solicitations is 

listed under the U.S. Small Business 

Administration Subcontracting Network 

(SUBNET) http://web.sba.gov/subnet/

search/index.cfm and through the 

General Services Administration (GSA) 

at www.gsa.gov/portal/content/101195. 

Research the list of prime contractors 

and determine which are best suited 

to your business. Develop a marketing 

strategy, and then contact the Small 

Business Liaison Officer (SBLO) 

listed for each prime to schedule an 

appointment.

SBA CONTRACTING 

PROGRAMS

HUBZONE

The Historically Underutilized 

Business Zones (HUBZone) program 

helps small businesses located 

in distressed urban and rural 

communities, 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 goal 

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 (except those that are 

tribally-owned) 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 

(CDC), an agricultural cooperative, or an 

Indian tribe 

• Its principal office must be located 

within a “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.

The 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.
30 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

CONTRACTING

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 

to develop and grow their businesses. 

Business development assistance 

includes one-on-one counseling, training 

workshops, match-making opportunities 

with federal buyers 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 the 

purpose of 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 U.S. citizens of good 

character;

• It must be controlled, managed, 

and operated full-time 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) and have 

the capacity to perform on government 

and non-government contracts 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 of evidence. 

Economically disadvantaged individuals 

are socially disadvantaged individuals 

whose ability to compete in the freeenterprise 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 

to coordinate the firm’s business 

development assistance.

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;

• Providing technical guidance and 

business development assistance during 

the nine-year term.

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 
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 31

CONTRACTING

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 the SBA; 

however, firms approved by the SBA 

into the 8(a) Business Development 

program are automatically certified 

as an SDB. To self-certify, firms 

should update their System for Award 

Management (SAM), previously CCR, 

profiles and update their ORCA profiles, 

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 governmentwide goal of awarding at least 3 

percent of prime and subcontracting 

dollars to Service-Disabled VeteranOwned Small Businesses each year. 

Large prime contractors must also 

establish a subcontracting goal for 

Veteran- Owned Small Businesses 

in their subcontracting plans. These 

subcontracting goals are reviewed at 

time of proposal by both the contracting 

officer and the SBA prior to the award 

of a contract.

The SDVOSB protest is administered 

by SBA to ensure that only businesses 

owned by service-disabled veterans 

receive contracts reserved exclusively 

for them. When a business’s SDVOSB 

self-certification is challenged, the 

SBA determines if the business meets 

the status, ownership and control 

requirements.

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/aboutoffices-content/1/2985.

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 (WOSB) 

Federal Contract program authorizes 

contracting officers to set aside certain 

federal contracts for eligible womenowned businesses and economically 

disadvantaged women-owned small 

businesses. 

To be eligible, a firm must be at least 

51 percent owned or 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/content/

contracting-opportunities-women-ownedsmall-businesses.

Large prime contractors must also 

establish a subcontracting goal for 

Woman-Owned Small Businesses in 

their Subcontracting Plans. These 

subcontracting goals are reviewed at 

time of proposal by both the contracting 

officer and the SBA prior to the award 

of a contract.

WHAT YOU SHOULD KNOW ABOUT 

YOUR BUSINESS

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 North 

American Industrial Classification 

code (NAICS). 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 Regulation (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:

• 23 percent of contracts for Small 

Businesses

• 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.
32 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

CONTRACTING

 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 System for Award 

Management. Log on to www.sam.gov

for more information 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. Visit

www.census.gov/eos/www/naics/ to find 

NAICS codes.

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 System for Award 

Management (SAM), formerly the 

(Central Contractor Registration) 

The SAM is an online federal 

government maintained database of 

companies wanting to do business with 

the federal government. Agencies search 

the database for prospective vendors. 

Register at SAM.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 SAM 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. 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, government

wide 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.

7. 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.

8. Search Federal Business Opportunities 

(FedBizOpps) for Contracting 

Opportunities

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.

9. 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 (CoC) 

program allows a small business, 

which is the apparent successful 

offeror, to appeal a contracting officer’s 

non-responsibility 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.

• Procurement Center Representatives 

(PCR) and Commercial Marketing 

Representatives (CMR): 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/content/procurement-centerrepresentatives.

• 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.dla.mil/SmallBusiness/Pages/ptap.aspx.

• Department of Defense (The DoD is 

the largest purchaser of goods from 

small businesses): 

 www.acq.osd.mil/osbp/

• Office of Federal Procurement Policy: 

www.whitehouse.gov/omb/procurement_default

• 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/ak Alaska Small Business Resource — 33

The Disaster Assistance 

Program is the 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 restore 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 are 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, 

agricultural cooperatives, businesses 

engaged in aquaculture and most 

private nonprofit organizations of all 

sizes that suffered financial losses 

because of the disaster, regardless 

of physical damage. The SBA can 

loan 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, the SBA 

can only approve loans to applicants 

having a credit history acceptable to 

the 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 the 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 the 

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 the 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 the SBA’s 

website at www.sba.gov/prepare.

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. 

The SBA has partnered with the 

American Red Cross to increase 

awareness in the business community 

about the Red Cross Ready RatingTM 

Program. Ready RatingTM is a free, selfpaced, web-based membership program 

that helps a business measure it’s ability 

to deal with emergencies, and gives 

customized feedback on how to improve 

those efforts. Visit www.readyrating.org.

Additionally, to help small businesses 

with their preparedness planning, 

the 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 the 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 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 ) also 

offers useful tips on protecting your 

home or business.

SBA DISASTER ASSISTANCE

Getting Back on Your Feet After a Disaster

DISASTER ASSISTANCE
34 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

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. 

The Advocacy office 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 businesses 

in the economy and the impact 

of government policies on small 

businesses. 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 

online at www.sba.gov/ombudsman; by 

fax at 202-481-5719; or by mail at 409 

Third Street S.W., Mail Code 2120, 

Washington, DC 20416.

The Ombudsman also coordinates 10 

Regional Regulatory Fairness Boards 

that meet regularly to receive comments 

about federal regulations affecting small 

businesses.

Learn more about the National 

Ombudsman at www.sba.gov/ombudsman

or call 888-REG-FAIR.

ADVOCACY AND OMBUDSMAN

Watching Out for Small Business Interests

ADVOCACY AND OMBUDSMAN
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 35

ADDITIONAL RESOURCES

Even if you are running a 

small home-based business, 

you will have to comply 

with many 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.

State of Alaska 

Department of Commerce, Community &

Economic Development

Division of Economic Development 

550 W. 7th Ave., Ste. 1770 

Anchorage, AK 99501 

907-269-8150 • 907-269-8147 Fax

Juneau Alaska: 907-465-2510

Fairbanks: 907-451-2748

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.

For information and assistance, 

visit the State of Alaska Division 

of Corporations, Business and 

Professional Licensing Web site at: 

www.commerce. state.ak.us/occ/ or 

contact:

Business Licensing

P.O. Box 110806

Juneau, AK 99811-0806

907-465-2550 • 907-465-2974 Fax

businesslicense@alaska.gov

Professional Licensing

P.O. Box 110806

Juneau, AK 99811-0806

907-465-2534 • 907-465-2974 Fax

license@alaska.gov

The municipality where you plan 

to do business may have additional 

licensing requirements. Contact the 

business license office in the city or 

town in which the business is located 

for additional information. 

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.

Additional information on protecting 

a business name is available on the 

Web at: www.commerce.state.ak.us/

bsc/pub/ protect_your_businessname.

pdf.

For additional information, contact:

Corporations Section

P.O. Box 110806

Juneau, AK 99811-0806 

Physical Address:

333 W. Willoughby Ave., 9th Fl.

Juneau, AK 99811

907-465-2550 • 907-465-2974 Fax

corporations@alaska.gov

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, other 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 product. There 

are many other types of liability, 

which are frequently related to specific 

industries. Liability law is constantly 

ADDITIONAL RESOURCES

Taking Care of Startup Logistics
36 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

ADDITIONAL RESOURCES

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 insurance 

you need to ensure 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 

of 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.

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. The 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.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 at 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 taxes. 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.

Taxpayer Advocate Service

 The Taxpayer Advocate Service is an 

independent organization within the 

IRS, headed by the National Taxpayer 

Advocate, that helps individual and 

business taxpayers resolve problems 

with the IRS. Local case advocates 

listen to your point of view, work with 

you to address your concerns, and see 

your case through to an appropriate 

resolution. 

Local Taxpayer Advocate Service Office

949 E. 36th Ave., Rm. A-209

Anchorage, AK 99508

907-271-6877 • 907-271-6157 Fax 

877-777-4778 Toll Free 

www.irs.gov

Sales Tax

 The State of Alaska does not 

currently levy sales or use taxes. 

However, some local jurisdictions 

impose local sales taxes and other 

taxes. For more information regarding 

municipal taxation rates and policies, 

visit the State of Alaska Department 

of Commerce, Community, and 

Economic Development Division of 

Community and Regional Affairs 

Office of the State Assessor Web site 

at: www.dced.state.ak. us/dca/osa/osa_

home.htm or review the most recent 

edition of their annual publication, 
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 37

ADDITIONAL RESOURCES

Alaska Taxable 2010, on the Web at: 

www.commerce.state.ak.us/dca/ osa/

pub/10Taxable_less_statutes.pdf.

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 government.

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 business taxpayers. This 

workshop helps business owners 

understand federal tax obligations. 

The Virtual Small Business Workshop 

is available on CD at 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 these government agencies 

for information, assistance and forms.

Social Security Administration 

800-772-1213

www.ssa.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.

Federal Withholding 

U.S. Internal Revenue Service

800-829-1040

www.irs.gov

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. 

The Alaska Department of Labor 

and Workforce Development provides 

a comprehensive overview of legal 

obligations, labor standards and safety 
38 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

ADDITIONAL RESOURCES

requirements, unemployment insurance 

requirements, and other information 

for employers in their 2007 Alaska 

Employer Resource Manual, available 

on their Web site at: www.jobs.alaska.

gov/ handbook/AERM.pdf.

The Department also provides 

employers with links to additional 

information and resources on their Web 

site at: www.labor.state.ak.us/employer/ 

employer.htm.

Alaska Department of Labor 

and Workforce Development 

Employment Security Tax Section

Provides assistance and information to 

employers regarding the Unemployment 

Insurance (UI) tax program and is 

responsible for the collection of UI taxes. 

For additional information, visit their 

web site at www.labor.state.ak.us/estax/ 

home.htm or contact:

Alaska Department of Labor and 

Workforce Development

Employment Security Tax Section

P.O. Box 115509

Juneau, AK 99811-5509

907-465-2757 • 907-465-2374 Fax

888-448-3527 Toll Free

Alaska Department of Labor and 

Workforce Development Division 

of Workers’ Compensation

The Alaska Workers’ Compensation 

Act requires each employer with one 

or more employees in Alaska to have 

workers’ compensation insurance, 

unless the employer qualifies as a selfinsurer. Coverage is obtained from 

commercial insurance carriers. For 

more information, visit the Division of 

Worker’s Compensation Web site at: 

www.labor.state.ak.us/wc/er-profit.html 

or contact:

Division of Workers’ Compensation

P.O. Box 115512

Juneau, AK 99811

907-465-2790 • 907-465-2797 Fax

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 a.m. – 5 p.m.

E-mail: e-verify@dhs.gov

SAFETY AND 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.

In Alaska, the State of Alaska 

Department of Environmental 

Conservation is responsible for 

monitoring air quality, drinking water, 

food safety and sanitation, and works 

to prevent and respond to spills of 

hazardous substances. 

For additional information, visit the 

Department’s Web site at: 

www.dec.state.ak.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.
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 39

ADDITIONAL RESOURCES

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

STATE REGISTRATION 

OF A TRADEMARK

Trademarks and service marks may 

be registered in Alaska for renewable 

5-year terms. Additional information 

is available on the State of Alaska 

Division of Corporations, Business and 

Professional Licensing Web site at: 

www.commerce.state.ak.us/occ/tmark.

htm.

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

Copyrights

Copyrights protect original works of 

authorship including literary, dramatic, 

musical and artistic, and certain other 

intellectual works. Copyrights do 

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

BUSINESS ORGANIZATION: 

Choosing Your Business Structure

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 and 

limited liability companies. 

Each structure offers unique tax and 

liability benefits. If you’re uncertain 

which business format is right for you, 

you may want to 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 of their 

investment, and liability is similarly 

limited in proportion to their 

investment.

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.
OTHER SOURCES OF 

ASSISTANCE

Local, State and Federal 

Sources of Assistance

Better Business Bureau, Chambers of 

Commerce, and Convention and Visitors 

Bureaus are located throughout Alaska and 

provide small business information and 

assistance. For more information, contact 

one of the following:

ALASKA BETTER BUSINESS BUREAU

341 W Tudor Rd., Ste. 209

Anchorage, AK 99503

907-562-0704 • 907-562-4061 Fax

www.thebbb.org

ALASKA STATE CoC 

Juneau Headquarters

217 2nd St., Ste. 201

Juneau, AK 99801

907-586-2323 • 907-463-5515 Fax

www.alaskachamber.com

ANCHOR POINT CoC

P.O. Box 610

Anchor Point, AK 99556

907-235-2600 • 907-235-2600 Fax

www.anchorpointchamber.org 

ANCHORAGE CoC 

1016 W. Sixth Ave., Ste. 303 

Anchorage, AK 99501

907-272-2401 • 907-272-4117 Fax 

www.anchoragechamber.org

ANCHORAGE CONVENTION AND 

VISITORS BUREAU

524 W. Fourth Ave.

Anchorage, AK 99501-2212

907-276-4118 • 907-278-5559 Fax

www.anchorage.net

BETHEL CoC

P.O Box 329

Bethel, AK 99559

907-543-2911 • 907-543-2255 Fax

www.bethelakchamber.org

BIG LAKE CoC

P.O. Box 520067

Big Lake, AK 99652

907-892-6109 • 907-892-6120 Fax

www.biglakechamber.org

BRISTOL BAY BOROUGH CoC 

P.O. Box 224

King Salmon, AK 99613

907-246-2222

www.visitbristolbay.info/

CHUGIAK-EAGLE RIVER CoC

P.O. Box 770353

Eagle River, AK 99577

907-694-4702 • 907-694-1205 Fax

www.cer.org

COOPER LANDING CHAMBER 

OF COMMERCE & VISITORS BUREAU

P.O. Box 809

Cooper Landing, AK 99572

907-595-8888 • 907-595-8888 Fax

www.cooperlandingchamber.com

COPPER VALLEY CoC

P.O. Box 469

Glennallen, AK 99588

907-822-5555 • 907-822-5558 Fax

www.coppervalleychamber.com/

CORDOVA CoC

P.O. Box 99

Cordova, AK 99574

907-424-7260 • 907-424-7259 Fax

www.cordovachamber.com

DELTA JUNCTION CoC

P.O. Box 987

Delta Junction, AK 99737

907-895-5068 • 907-895-5141 Fax

www.deltachamber.org

DILLINGHAM CoC

P.O. Box 348

Dillingham, AK 99576

907-842-5115 • 907-842-4097 Fax

www.dillinghamak.com

FAIRBANKS CONVENTION 

AND VISITORS BUREAU

101 Dunkel St., Ste 111

Fairbanks, AK 99701

800-327-5774 • 907-459-3757 Fax

www.explorefairbanks.com

FUNNY RIVER CoC

35850 Pioneer Rd.

Soldotna AK 99669

907-262-0879

GIRDWOOD CoC

P.O. Box 1313

Girdwood, AK 99587

907-222-7682

www.girdwoodalaska.com

GREATER FAIRBANKS CoC

100 Cushman St., Ste. 102

Fairbanks, AK 99701

907-452-1105 • 907-456-6968 Fax

www.fairbankschamber.org

GREATER HEALY/DENALI 

CHAMBER OF COMMERCE

.6 Mile Healy Spur Rd./P.O. Box 437

Healy, AK 99743

907-683-4636

www.denalichamber.com

GREATER KETCHIKAN CoC

2417 Tongass Ave., Ste. 223 A/P.O. Box 5957

Ketchikan, AK 99901

907-225-3184 • 907-225-3187 Fax

www.ketchikanchamber.com

GREATER PALMER CoC

550 S. Alaska St., Ste. 101

Palmer, AK 99645

907-745-2880 • 907-746-4164 Fax

www.palmerchamber.org

GREATER SITKA CoC

P.O. Box 638

Sitka, AK 99835

907-747-8604 • 907-747-7413 Fax

www.sitkacoc.com

GREATER SOLDOTNA CoC 

44790 Sterling Hwy.

Soldotna, AK 99669

907-262-9814 • 907-262-3566 Fax

www.soldotnachamber.com

GREATER WASILLA CoC

415 E. Railroad Ave.

Wasilla, AK 99654

907-376-1299 • 907-373-2560 Fax

www.wasillachamber.org

HAINES CoC

P.O. Box 1449

Haines, AK 99827

907-766-2202 • 907-766-2271 Fax

www.haineschamber.org

HAINES CONVENTION AND 

VISITORS BUREAU

P.O. Box 530

Haines, AK 99827

907-766-2234 • 907-766-3155 Fax

www.haines.ak.us

HOMER CoC

201 Sterling Hwy.

Homer, AK 99603

907-235-7740 • 907-235-8766 Fax

www.homeralaska.org

HOUSTON CoC

P.O. Box 940356

Houston, AK 99694

907-892-6812 • 907-892-6813 Fax

www.houstonakchamber.com

JUNEAU CoC

3100 Channel Dr., Ste. 300

Juneau, AK 99801

907-463-3488 • 907-463-3483 Fax

www.juneauchamber.com

OTHER ASSISTANCE

40 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

OTHER ASSISTANCE
JUNEAU CONVENTION AND 

VISITORS BUREAU

101 Eagan Dr.

Juneau, AK 99801-1754

907-586-2201 • 907-586-6304 Fax

800-581-2201 Toll Free

www.traveljuneau.com

KENAI CoC

402 Overland St.

Kenai, AK 99611

907-283-7989 • 907-283-7183 Fax

www.kenaichamber.org

KENAI CONVENTION AND 

VISITORS BUREAU

11471 Kenai Spur Hwy.

Kenai, AK 99611-7757

907-283-1991 • 907-283-2230 Fax

www.visitkenai.com

KETCHIKAN VISITORS BUREAU

131 Front St.

Ketchikan, AK 99901

907-225-6166 • 907-225-4250 Fax

800-770-3300 Toll Free

www.visit-ketchikan.com

KODIAK CoC

100 E. Marine Way, Ste. 300

Kodiak, AK 99615

907-486-5557 • 907-486-7605 Fax

www.kodiak.org

KODIAK ISLAND CONVENTION 

AND VISITORS BUREAU

100 Marine Way, Ste. 200

Kodiak, AK 99615

907-486-4782 • 907-486-6545 Fax

www.kodiak.org

MATANUSKA-SUSITNA 

CONVENTION AND VISITORS BUREAU

7744 E. Visitors View Ct.

Palmer, AK 99645

907-746-5000 • 907-746-2688 Fax

www.alaskavisit.com

MOOSE PASS CHAMBER OF COMMERCE 

& VISITORS BUREAU

P.O. Box 147 

Moose Pass, AK 99631

www.moosepassalaska.com

NIKISKI CoC

P.O. Box 8053

Nikiski, AK 99635

907-776-5551 • 907-776-8836 Fax

NENANA VALLEY 

CHAMBER OF COMMERCE

P.O. Box 124

Nenana AK 99760

907-832-5442

www.nenanahomepage.com

NINILCHICK CHAMBER OF COMMERCE

P.O. Box 39164

Ninilchik, AK 99639

907-567-3571

www.ninilchikchamber.com

NOME CoC

P.O. Box 250

Nome, AK 99762

907-443-3879 • 907-443-3892 Fax

NOME CONVENTION AND 

VISITORS BUREAU

P.O. Box 240 

Nome, AK 99762

907-443-6555 • 907-443-5832 Fax

www.visitnomealaska.com

NORTH POLE COMMUNITY CoC

P.O. Box 55071

North Pole, AK 99705

907-488-2281 • 907-488-3002 Fax

www.northpolechamber.us/

PETERSBURG CoC

P.O. Box 649

Petersburg, AK 99833

907-772-4636 • 907-772-2453 Fax

www.petersburg.org

PRINCE OF WALES CoC

P.O. Box 490

Klawock, AK 99921

907-755-2626 • 907-755-2627 Fax

www.princeofwalescoc.org

SELDOVIA CoC

P.O. Drawer F

Seldovia, AK 99663

907-234-7612 • 907-234-7526 Fax

www.seldovia.com

SEWARD CoC

P.O. Box 749

Seward, AK 99664

907-224-8051 • 907-224-5353 Fax

www.seward.com

SITKA CONVENTION AND 

VISITORS BUREAU

P.O. Box 1226

Sitka, AK 99835

907-747-5940 • 907-747-3739 Fax

www.sitka.org

SKAGWAY CoC

P.O. Box 194

Skagway, AK 99840

907-983-1898 • 907-983-2031 Fax

www.skagwaychamber.org

SKAGWAY CONVENTION 

AND VISITORS BUREAU

P.O. Box 1029

Skagway, AK 99840

907-983-2854 • 907-983-3854 Fax

www.skagway.com

SUNSHINE CoC

P.O. Box 793

Willow, AK 99688

907-733-1416 • 907-733-1816 Fax

TALKEETNA CoC

P.O. Box 334

Talkeetna, AK 99676

907-733-2330 • 907-733-3940 Fax

www.talkeetnachamber.org

TOK CoC

P.O. Box 389

Tok, AK 99780

907-883-5775 

www.tokalaskainfo.com

UNALASKA/DUTCH HARBOR CONVENTION 

AND VISITORS BUREAU

P.O. Box 545

Unalaska, AK 99685

907-581-2612 • 907-581-2613 Fax

www.unalaska.info/

VALDEZ CONVENTION AND 

VISITORS BUREAU

104 Chenega St.

Valdez, AK 99686

907-835-4636 • 907-835-4845 Fax

www.valdezalaska.org

WILLOW CoC

P.O. Box 183

Willow, AK 99688

907-495-6800 • 907-495-6800 Fax

www.willowchamber.org

WRANGELL CoC

224 Front St./P.O. Box 49

Wrangell, AK 99929

907-874-3901 • 907-874-3905 Fax

www.wrangellchamber.org

WRANGELL CONVENTION 

AND VISITORS BUREAU

P.O. Box 531

Wrangell, AK 99929

907-874-2381 • 907-874-3952 Fax

www.wrangell.com/business/resources/wcvb

Chambers of Commerce 

and Convention and 

Visitors Bureaus (CVBs) 

located outside Alaska:

AMERICAN CoC 

Executives Manager 

Information Central

4875 Eisenhower Ave., Ste. 250

Alexandria, VA 22304

703-998-0072 • 703-212-9512 Fax

www.acce.org

BELLINGHAM/WHATCOM CoC 

119 N. Commercial St., Ste 110

Bellingham, WA 98225

360-734-1330 • 360-734-1332 Fax

www.bellingham.com

GREATER SEATTLE CoC 

1301 5th Ave., Ste. 2500

Seattle, WA 98101-2611

206-389-7200 • 206-389-7288 Fax

www.seattlechamber.com

STEWART AND HYDER INTERNATIONAL CoC 

222 5th Ave./P.O. Box 306

Stewart, BC V0T 1W0 Canada

250-636-9224 • 250-636-2199 Fax

888-366-5999 Toll Free

www.stewart-hyder.com

TACOMA-PIERCE COUNTY CoC 

950 Pacific Ave., Ste. 300/P.O. Box 1933

Tacoma, WA 98402-1933

253-627-2175 • 253-597-7305 Fax

www.tacomachamber.org

UNITED STATES CHAMBER OF 

COMMERCE NATIONAL OFFICE

1615 H St. N.W.

Washington, DC 20062-2000

202-659-6000 • 202-463-5836 Fax

800-638-6582 Toll Free

www.uschamber.com

UNITED STATES CHAMBER OF 

COMMERCE, NORTHWEST REGION

3400 188th St. S.W., Ste. 403

Lynnwood, WA 98037

425-774-8094 • 425-778-8341 Fax

www.uschamber.com

YUKON CoC

101-307 Jarvis St.

Whitehorse, YT Y1A 2H3 Canada

867-667-2000 • 867-667-2001 Fax

800-661-0543 Toll Free

www.yukonchamber.com

Alaska Native Regional 

Corporations

AHTNA, INC. 

P.O. Box 649

Glennallen, AK 99588

907-822-3476 • 907-822-3495 Fax

www.ahtna-inc.com

THE ALEUT CORPORATION 

4000 Old Seward Hwy., Ste. 300

Anchorage, AK 99503

907-561-4300 • 907-563-4328 Fax

www.aleutcorp.com

ARCTIC SLOPE REGIONAL CORPORATION 

3900 C St., Ste. 801

Anchorage, AK 99503-5963

907-339-6000 • 907-339-6028 Fax

www.asrc.com

BERING STRAITS NATIVE CORPORATION 

P.O. Box 1008

Nome, AK 99762

907-443-5252 • 907-443-2985 Fax

www.beringstraits.com

BRISTOL BAY NATIVE CORPORATION 

111 W. 16th Ave., Ste. 400

Anchorage, AK 99501

907-278-3602 • 907-276-3924 Fax

www.bbnc.net

CALISTA CORPORATION 

301 Calista Ct. 

Anchorage, AK 99518-3000

907-279-5516 • 907-272-5060 Fax

www.calistacorp.com

CHUGACH ALASKA CORPORATION

3800 Centerpoint Dr., Ste. 601

Anchorage, AK 99503 

907-563-8866 • 907-563-8402 Fax 

www.chugach-ak.com

OTHER ASSISTANCE

Visit us online: www.sba.gov/ak Alaska Small Business Resource — 41

OTHER ASSISTANCE
COOK INLET REGION, INC. (CIRI) 

2525 C St., Ste. 500 /P.O. Box 93330 

Anchorage, AK 99503-3330 

907-274-8638 • 907-279-8836 Fax

www.ciri.com

DOYON, LTD. 

1 Doyon Pl., Ste. 300

Fairbanks, AK 99701-2941

907-459-2000 • 907-459-2060 Fax

www.doyon.com

KONIAG, INC. 

194 Alimaq Dr.

Kodiak, AK 99615

907-486-2530 • 907-486-3325 Fax

www.koniag.com

NANA REGIONAL CORPORATION 

1001 E. Benson Blvd.

Anchorage, AK 99508

907-265-4100 • 907-265-4123 Fax

www.nana.com

SEALASKA CORPORATION 

One Sealaska Plz., Ste. 400

Juneau, AK 99801

907-586-1512 • 907-586-2304 Fax

www.sealaska.com

Area Regional 

Development 

Organizations (Ardor)

ANCHORAGE ECONOMIC 

DEVELOPMENT CORPORATION

510 L St., Ste. 603

Anchorage, AK 99501

907-258-3700 • 907-258-6646 Fax

www.aedcweb.com

KAWERAK, INC.

P.O. Box 948

Nome, AK 99762

907-443-5231 • 907-443-4452 Fax

www.kawerak.org

COPPER VALLEY DEVELOPMENT 

ASSOCIATION

P.O. Box 9

Glennallen, AK 99588-0009

907-822-5001 • 907-822-5009 Fax

www.coppervalley.org/

FAIRBANKS NORTH STAR BOROUGH

ECONOMIC DEVELOPMENT COMMISSION

809 Pioneer Rd./P.O. Box 71267

Fairbanks, AK 99707-1267

907-459-1000 • 907-459-1102 Fax

www.co.fairbanks.ak.us

KENAI PENINSULA ECONOMIC 

DEVELOPMENT DISTRICT

14896 Kenai Spur Rd., Ste. 103A

Kenai, AK 99611-7756

907-283-3335 • 907-283-3913 Fax

www.kpedd.org

LOWER KUSKOKWIM ECONOMIC

DEVELOPMENT COUNCIL

P.O. Box 2021

Bethel, AK 99559

907-543-5967 • 907-543-3130 Fax

www.lkedc.org

MAT-SU RESOURCE, CONSERVATION 

& DEVELOPMENT COUNCIL

991 N. Hermon Rd., Ste. 250

Wasilla, AK 99654

907-373-1016 ext. 108 

907-373-1013 Fax

www.matsudevelopment.org

NORTHWEST ARCTIC BOROUGH 

ECONOMIC DEVELOPMENT COMMISSION

P.O. Box 1110

Kotzebue, AK 99752

907-442-2500 • 907-442-2560 Fax

www.nwabor.org/

economicdevelopmentcommission.html

PRINCE WILLIAM SOUND ECONOMIC

DEVELOPMENT DISTRICT

2207 Spenard Rd., Ste. 207

Anchorage, AK 99503

907-222-2440 • 907-222-2411 Fax

www.pwsedd.org

SOUTHEAST CONFERENCE

P.O. Box 21989

Juneau, AK 99802-1989

907-523-4350 • 907-463-5670 Fax

www.seconference.org

SOUTHWEST ALASKA 

MUNICIPAL CONFERENCE

3300 Arctic Blvd., Ste. 203

Anchorage, AK 99503

907-562-7380 • 907-562-1206 Fax

www.swamc.org

USDA Rural Development 

Offices

ALASKA STATE RURAL DEVELOPMENT 

OFFICE

800 W. Evergreen, Ste. 201

Palmer, AK 99645

907-761-7700 • 907-761-7783 Fax 

www.rurdev.usda.gov/ak

BETHEL OFFICE

510 L St., Ste. 410

Bethel, AK 99501

907-271-3025

www.rurdev.usda.gov/ak/offices.htm

DILLINGHAM OFFICE

Herman Schroder Bldg.

104 Main St., Ste. 301A/P.O. Box 1370

Dillingham, AK 99576

907-842-3921 • 907-842-3922 Fax

www.rurdev.usda.gov/ak/offices.htm

FAIRBANKS OFFICE

590 University Ave. 

Fairbanks, AK 99709

907-479-6767 ext. 4 • 907-457-4069 Fax

www.rurdev.usda.gov/ak/offices.htm

KENAI OFFICE

110 Trading Bay Rd., Ste. 160

Kenai, AK 99611

907-283-6640 ext. 4 • 907-283-9667 Fax

www.rurdev.usda.gov/ak/offices.htm

NOME OFFICE

800 W. Evergreen, Ste. 201

Palmer, AK 99645

907-761-7705

www.rurdev.usda.gov/ak/offices.htm

SITKA OFFICE

201 Katlian St., Ste. 109A

Sitka, AK 99835

907-747-3506 • 907-747-3597 Fax

www.rurdev.usda.gov/ak/offices.htm

Additional Small 

Business, Community and 

Economic Development 

Assistance Resources in 

Alaska

ALASKA INDUSTRIAL DEVELOPMENT AND 

EXPORT AUTHORITY

813 W. Northern Lights Blvd.

Anchorage, AK 99503

907-771-3000 • 907-771-3044 Fax

www.aidea.org

ALASKA VILLAGE INITIATIVES

1577 C St., Ste. 304

Anchorage, AK 99501

907-274-5400 • 907-263-9971 Fax

800-478-2332 Toll Free

www.akvillage.com

ANCHORAGE ECONOMIC DEVELOPMENT 

CORPORATION 

510 L St., Ste. 603

Anchorage, AK 99501

907-258-3700 • 907-258-6646 Fax

www.aedcweb.com

BUREAU OF INDIAN AFFAIRS, 

ALASKA REGION

BRANCH OF CREDIT AND FINANCE

3601 C St., Ste. 1100

Anchorage, AK 99503

907-271-4477 • 907-271-1750 Fax

800-645-8465

www.bia.gov/WhoWeAre/RegionalOffices/

Alaska/index.htm

FAIRBANKS ECONOMIC 

DEVELOPMENT CORPORATION

301 Cushman St., Ste. 301

Fairbanks, AK 99701

907-452-2185 • 907-451-9534 Fax

www.investfairbanks.com

JUNEAU ECONOMIC DEVELOPMENT 

COUNCIL

612 W. Willoughby, Ste. A

Juneau, AK 99801-1732

907-523-2300 • 907-463-3929 Fax

www.jedc.org

STATE OF ALASKA DEPARTMENT 

OF COMMERCE, COMMUNITY, AND 

ECONOMIC DEVELOPMENT

DIVISION OF INVESTMENTS

ANCHORAGE OFFICE 

550 W. Seventh Ave., Ste. 1930

Anchorage, AK 99501-3570

907-269-8110 • 907-269-8125 Fax

www.commerce.state.ak.us/investments

DIVISION OF INVESTMENTS

JUNEAU OFFICE

3032 Vintage Blvd./P.O. Box 34159 

Juneau, AK 99803-4159

907-465-2510 • 907-465-2103 Fax

www.commerce.state.ak.us/investments

U.S. DEPARTMENT OF COMMERCE 

ALASKA EXPORT ASSISTANCE CENTER

550 West 7th Ave., Ste. 1770

Anchorage, AK 99501

907-271-6237 • 907-278-6242 Fax

www.buyusa.gov/alaska

UNIVERSITY OF ALASKA CENTER FOR

ECONOMIC DEVELOPMENT

Diplomacy Bldg., 5th Fl. 507G

3211 Providence Dr.

Anchorage, AK 99508-8243

907-786-5444 • 907-786-5446 Fax

http://ced.uaa.alaska.edu/

WORLD TRADE CENTER ALASKA

431 W. Seventh Ave., Ste. 108

Anchorage, AK 99501

907-278-7233 • 907-278-2982 Fax

www.wtcak.org

OTHER ASSISTANCE

42 — Small Business Resource Alaska Visit us online: www.sba.gov/ak

OTHER ASSISTANCE
Visit us online: www.sba.gov/ak Alaska Small Business Resource — 43

Alaska’s 

Participating 

Lenders

ALASKA GROWTH CAPITAL 

BIDCO, INC.

(Non-Bank Lender)(PLP, Patriot 

Express)

Chris Mcgee, Loan Officer

907-339-6784 or 888-315-4904

Steve Bush, Loan Officer

907-339-6762 or 888-315-4904

3900 C St., Ste. 302

Anchorage, AK 99503-5965

www.alaskagrowth.com

ALASKA PACIFIC BANK

(SBAExpress, Patriot Express 

& PLP)

Tom Sullivan, VP/Senior 

Commercial Loan Officer

2094 Jordan Ave.

Juneau, AK 99801

907-790-5170 or 800-478-3050

www.alaskapacificbank.com

ALASKA USA FEDERAL CREDIT 

UNION 

Matt Williams, Member Business 

Development Manager

500 W. 36th Ave., Ste. 400

Anchorage, AK 99503

907-646-6478

www.alaskausa.org

BORREGO SPRINGS BANK, N.A.

(PLP, EWCP, Patriot Express) 

Frederick Crispen, Exe. VP 

Community Express Lending

14101 Panama City Beach Pkwy., 

Ste. 300

Panama City Beach, FL 32413

850-230-0454 or 866-717-7718

www.borregospringsbank.com

BANK OF THE WEST

(EWCP, PLP, SBAExpress)

Brian Clegg, VP Business 

Development Officer

142 E. 200 South

Salt Lake City, UT 84111

801-519-7823

www.bankofwest.com

DENALI ALASKAN FEDERAL 

CREDIT UNION 

(SBAExpress)

Don Clary, Loan Officer

440 E. 36th Ave., Ste. 220

Anchorage, AK 99503-4136

907-257-7240

www.denalifcu.org

DENALI STATE BANK

Mike Milam, VP, Executive VP

119 N. Cushman St.

Fairbanks, AK 99701

907-458-4207

www.denalistatebank.com

EVERGREEN BUSINESS CAPITAL

(CDC/504 Loans)

Barbara Gill, Sr. Loan Officer

P.O. Box 3673

Palmer, AK 99645-3673

907-746-5047 or 907-715-8628

www.evergreen504.com

FIRST BANK

John Clifton, VP

P.O. Box 7920

Ketchikan, AK 99901

907-228-4289 or 800-478-6101

www.firstbankak.com

FIRST NATIONAL BANK ALASKA

(SBAExpress, Patriot Express, 

EWCP)

Jason Criqui, VP

101 W. 36th Ave., Ste. 333

Anchorage, AK 99510-0720

907-777-3067 or 800-856-4362

www.fnbalaska.com

HANA SMALL BUSINESS 

LENDING

(PLP)

James Kim, Senior VP/Manager

1000 Wilshire Blvd., 20th Fl

Los Angeles, CA 90017

213-977-5501

www.hanafinancial.com

HANMI BANK

(EWCP, PLP, SBAExpress )

Mike Kim , Sr. VP and Mgr.

928 South Western, Ste. 260

Los Angeles, CA 90006

213-427-5607

www.hanmi.com

INDEPENDENCE BANK

(SBAExpress)

Michael Sanmertino, Sr. VP

1370 S. County Tr.

East Greenwich, RI 02818-1624

401-886-4600 

www.ibyourbank.com

GLACIER BANK

(PLP, SBAExpress, Patriot 

Express, Export Express)

Bob Beck, SBA Manager

125 Ironwood Dr.

Coeur D’alene, ID 83814

208 -765-0284

www.mountainwestbank.com

KEYBANK OF ALASKA

(PLP, SBAExpress, Patriot 

Express)

Amanda Clayton, Assistant VP 

Business Banking, 

Relationship Manager

101 W. Benson Blvd., Ste. 401

Anchorage, AK 99510-0420

907-564-0287

www.key.com

LIVE OAK BANKING CO.

(PLP, SBAExpress)

Brian Faulk, Executive VP

2605 Iron Gate Dr. Ste 100

Wilmington, NC 28512

910-790-5867

www.liveoakbank.com

MATANUSKA VALLEY FEDERAL 

CREDIT UNION

(SBAExpress)

Read Dunn, Commerical Loan Mgr.

1020 S. Bailey St.

Palmer, AK 99645

907-761-4630

www.mvfcu.coop

MT. MCKINLEY MUTUAL 

SAVINGS BANK

(SBAExpress)

Bart Lebon, Exe. VP

530 Fourth Ave.

Fairbanks, AK 99707

907-452-1751

www.mtmckinleybank.com

NATIONAL COOPERATIVE BANK

(PLP, Non-Bank Lender, 

SBAExpress, Patriot Express)

Earl Carson, Commercial Lending 

Manager

801 B St., Ste. 300

Anchorage, AK 99501

907-561-5744

www.ncb.coop

NORTHRIM BANK 

(EWCP)

Benjamin Schulman, AVP, Small 

Business Loan Officer

benjamin.schulman@nrim.com

NMLS #891687

Small Business Center

2709 Spenard Rd.

Anchorage, AK 99503

907-261-3317 • 907-263-3313 F

PACIFIC CITY BANK

(PLP, SBAExpress)

Mike Kim, Senior VP/Chief Lending 

Officer

3701 Wilshire Blvd, Ste 401

Los Angeles, CA 90010

213-210-2008

www.pacificcitybankcom

SUPERIOR FINANCIAL GROUP

(Patriot Express, PLP)

Sue Malone

536 San Ramon Valley Blvd., 

Ste. 137

Danville, CA 94526

925-899-8449 or 925-381-8409

www.strategiesforsmallbusiness.com

TONGASS FEDERAL CREDIT 

UNION

(SBAExpress)

Nancy Christian, Business Loan &

Servicing Manager

2000 Tongass Ave.

Ketchikan, Alaska 99901

907-247-9063

www.tongassfcu.com

TWIN CITY BANK

(PLP, SBAExpress)

Pattty Flores, AVP Loan Operations 

Manager

729 Vandercook Way

Longview, WA 98632

360-414-4101

www.twincitybank.com

UNIBANK, N.A.

(PLP, SBAExpress)

Phillip Yun, SBA Manager

16929 Hwy, 99 Ste. 10

Lynnwood, WA 98037

425-275-9715

www.unibakusa.com

US BANK, NA

Michelle Nguyen

Lead Generalist

9918 Hilbert St

San Diego, CA 82131

800-269-4309

WELLS FARGO BANK, N.A.

(PLP, SBAExpress)

Jeff San Juan Business Relationship 

Mgr.

907-265-2015 or 907-830-3420

1351 E. Huffman Rd., Ste. 201

Anchorage, AK 99515

Kelly Mears, Vice President

2975 NW Lucus Ct.

Bend, OR 97701

541-388-8453 or 541-408-7851

www.wellsfargo.com

SBA Lender Status:

PLP: Preferred Lender Program

Non-Bank Lender: Financial 

Institution that does not hold 

depository accounts.

SBAExpress: Lenders approved 

to provide SBAExpress loans, 

which are SBA guaranteed loans 

of $350,000 or less using a 

streamlined review process.

Patriot Express: Lenders 

approved to provide SBA Patriot 

Express loans, which are SBA 

guaranteed loans of $500,000 

or less, focusing primarily on 

veterans and members of the 

military community. 

EWCP: Lenders approved to 

provide SBA Export Working 

Capital loans, which are 

SBA guaranteed loans of 

$2.0 million or less, focusing 

primarily on businesses that are 

able to generate export sales 

and need additional working 

capital to support these sales. 

CDC: Certified Development 

Company

SBA PARTICIPATING LENDERS

SBA PARTICIPATING LENDERS