SBA – Small Business Administration An independent agency of the federal government and not to be confused with Small Business Association or variations thereof. The U.S. Small Business Administration (SBA) was created by Congress in 1953 to help America’s entrepreneurs form successful small enterprises. Today, SBA’s program offices in every state offer financing, training and advocacy for small firms. These programs are delivered by SBA offices in every state, the District of Columbia, the Virgin Islands and Puerto Rico. In addition, the SBA works with thousands of lending, educational and training institutions nationwide.
SBA EXPORT EXPRESS The U.S. Small Business Administration (SBA) Export Express combines the SBA’s small business lending assistance with its technical assistance programs to help small businesses that have traditionally had difficulty in obtaining adequate export financing.
SBA LOAN The U.S. Small Business Administration (SBA) enables its lending partners to provide financing to small businesses when funding is otherwise unavailable on reasonable terms by guaranteeing major portions of loans made to small businesses.
SBDC – Small Business Development Centers See Small Business Development Center.
SBIC – Small Business Investment Company Licensed by the Small Business Administration, SBICs are privately owned and managed investment firms. They are participants in a vital partnership between government and the private sector economy. With their own capital and with funds borrowed at favorable rates through the Federal Government, SBICs provide venture capital to small independent businesses, both new and already established.
SBIR – Small Business Innovative Research See Small Business Innovation Research.
SBIR CONTRACT – Small Business Innovative Research Contract A type of contract designed to foster technological innovation by small businesses with 500 or fewer employees. The SBIR contract program provides for a three-phased approach to research and development projects: technological feasibility and concept development; the primary research effort; and the conversion of the technology to a commercial application.
SCORE SCORE is a 10,500-member volunteer association sponsored by the SBA. SCORE matches volunteer business-management counselors with present prospective small business owners in need of expert advice. The SCORE home page is located at http://www.score.org
SDB (Small Disadvantaged Business) Program While the 8(a) Business Development Program offers a broad scope of assistance to socially and economically disadvantaged firms, SDB certification strictly pertains to benefits in federal procurement. 8(a) firms automatically qualify for SDB certification. The U.S. Small Business Administration (SBA) certifies SDBs to make them eligible for special bidding benefits. Evaluation credits available to prime contractors boost subcontracting opportunities for SDBs.
SECONDARY MARKET Entities who purchase an interest in a loan from an original lender, such as banks, institutional investors, insurance companies, credit unioins and pension funds. There is an active secondary market in the loans guaranteed by the Small Business Administration (SBA). This market was created to increase the attractiveness of small business lending to the lending community. Through the market, lenders are able to sell the guaranteed portion of SBA guaranteed loans to investors and thereby improve their liquidity and increase their yield on the unguaranteed portion of SBA loans. In addition, the secondary market provides a hedge against future liquidity problems because the guaranteed portion of an SBA guaranteed portfolio may be readily sold by the lender. The market also allows a lender to meet the credit needs of a local small business community by importing capital from other parts of the country
SELLING A BUSINESS Selling a business is different than selling any other asset because a business is more than an income-earning asset – it is a life-style as well. Therefore, the decision to sell can be emotional. Personal ambitions should be weighed against economic consequences in reaching a decision.
SERVICE MARK A word, name, symbol or device used to identify and distinguish a business that provides services rather than goods. Like a trademark, it can be registered.
SET-ASIDE CONTRACT A “set-aside” is a Federal contract designated for small business bidding only.
SHAREWARE Free or evaluation copies/links for use in your business.
SHORT TERM Period usually one year or less.
SIGNAGE Effective signage is a critical component of your retail business’ success, and can contribute to the success of all businesses. To provide in depth information about signage and your business, The U.S. Small Business Administration (SBA) has divided signage information into categories in its Signage web area. After you’ve studied these pages, SBA recommend you include proper signage in the financial plans for your business. Effective signage is a key asset you’ll need to become successful. Why should I have a sign? is a question often asked by business owners. The answer will vary depending on your business type and format. In a highly impulse oriented business, good signage can be the difference between the success or failure of the business. The profile of your trade area also impacts your signage needs. Good signage can increase a business’s opportunity for success.
SIMPLE INTEREST RATE LOAN One which provides the borrower the face value of the loan; the borrower repays the principal plus interest at maturity.
SIZE STANDARDS The term “size standard” describes the numerical definition of a small business. In other words, a business is considered “small” if it meets or is below an established “size standard.”
SMALL BUSINESS A business smaller than a given size as measured by its employment, business receipts, or business assets.
SMALL BUSINESS DEVELOPMENT CENTER (SBDC) The SBDC is a center for the delivery of joint government, academic and private sector services for the benefit of small business and the national welfare. It is committed to the development and productivity of business and the economy in specific geographical regions. (See http://www.sba.gov).
SMALL BUSINESS INNOVATION RESEARCH (SBIR) CONTRACT A type of contract designed to foster technological innovation by small businesses with 500 or fewer employees. The SBIR contract program provides for a three-phased approach to research and development projects: technological feasibility and concept development; the primary research effort; and the conversion of the technology to a commercial application.
SMALL BUSINESS INVESTMENT ACT It is declared to be the policy of the Congress and the purpose of this Act to improve and stimulate the national economy in general and the small-business segment thereof in particular by establishing a program to stimulate and supplement the flow of private equity capital and long-term loan funds which small-business concerns need for the sound financing of their business operations and for their growth, expansion, and modernization, and which are not available in adequate supply. Provided, however, that this policy shall be carried out in such manner as to insure the maximum participation of private financing sources.
SMALL BUSINESS INVESTMENT COMPANY (SBIC) SBICs, licensed by the Small Business Administration, are privately owned and managed investment firms. They are participants in a vital partnership between government and the private sector economy. With their own capital and with funds borrowed at favorable rates through the Federal Government, SBICs provide venture capital to small independent businesses, both new and already established.
SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM (STTR) STTR is an important new small business program that expands funding opportunities in the federal innovation research and development arena. Central to the program is expansion of the public/private sector partnership to include the joint venture opportunities for small business and the nation’s premier nonprofit research institutions. STTR’s most important role is to foster the innovation necessary to meet the nation’s scientific and technological challenges in the 21st century.
SMALL DISADVANTAGED BUSINESS (SDB) The U.S. Small Business Administration (SBA) certifies SDBs to make them eligible for special bidding benefits. SDBs are at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged. This can include a publicly owned business that has at least 51 percent of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and whose management and daily business is controlled by one or more such individuals.
SMALL DISADVANTAGED BUSINESS CONCERN A small business concern that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged. This can include a publicly owned business that has at least 51 percent of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and whose management and daily business is controlled by one or more such individuals.
SOLVENCY The financial ability to continue business.
SPECULATIVE CASH BALANCES Cash necessary to take advantage of special opportunities.
STANDARD INDUSTRIAL CLASSIFICATION (SIC) CODE A code representing a category within the Standard Industrial Classification System administered by the Statistical Policy Division of the U.S. Office of Management and Budget. The system was established to classify all industries in the US economy. A two-digit code designates each major industry group, which is coupled with a second two-digit code representing subcategories.
STTR – Small Technology Transfer Program See Small Business Technology Transfer Program.
SUBCONTRACT A contract between a prime contractor and a subcontractor to furnish supplies or services for the performance of a prime contract or subcontract.
SURETY BOND A three-way agreement between a surety company, a contractor and the project owner. If the contractor fails to comply with the contract, the surety assumes responsibility and ensures that the project is completed. By law, prime contractors to the federal government must post surety bonds on federal construction projects valued at $25,000 or more. Many state, county, city and private-sector projects require bonding as well.