Upstate New York Edition 2020—U.S. Small Business…

Small Business resource guide UPSTATE NEWYORK EDITION 2020





Upstate New York Edition 2020

Local Business Assistance 8 National Success Story Jerado and Joyce Reynolds know their local landscape for entrepreneurship support. 11 Local SBA Resource Partners 13 Your Advocates 14 How to Start a Business 18 Workforce Recruitment 19 Emerging Leaders 20 Entrepreneurial Resources 22 Opportunities for Veterans 24 Write Your Business Plan

Funding Programs

26 National Success Story Jennifer and Jeff Herbert’s

meadery has expanded into a multimillion dollar enterprise thanks to SBA assistance.

29 SBA Lenders 32 Financing 101 33 Need Financing? 34 Go Global with

International Trade 36 R&D Opportunities for High Growth Startups 38 National Success Story

Cheeseburger Baby owner Stephanie Vitori persevered through a financial storm and a natural disaster.

42 Surety Bonds


44 National Success Story Jennifer Rahn steers the course for Admiral Engineering, succeeding as a small business subcontractor. 47 Government Contracting 48 SBA Certification Programs 49 Woman-Owned Small Business Certification

ON THE COVER Steve and Sara Morris, courtesy of Mello Velo; Jennifer and Jeff Herbert, courtesy of Superstition Meadery; Damon Draught, courtesy of Dairy Queen, Next Advance, Inc. president Ian Glasgow used SBA STEP grants to reach new international markets for their laboratory instruments made in Troy, NY, courtesy of the SBA



I t is my honor to serve as Administrator of the U.S. Small Business Administration, leading a dedicated team of talented individuals across America who are focused on helping entrepreneurs start, grow, and expand their small businesses. The SBA is here to support the prosperity and longevity of our nation’s small businesses with timely and innovative resources to help them thrive in today’s economy. America’s entrepreneurs are innovators, risk-takers, and the catalyst for employment opportunities within their communities, and they are what makes our economy so strong and dynamic. As we enter a new decade of possibilities, small businesses have a remarkable opportunity to continue building upon the success we’ve seen in our economy over the last three years. As the voice for America’s 30 million small businesses, I am eager to advocate on entrepreneurs’ behalf as a member of the President’s Cabinet. Whether it’s seeking access to capital, government contracting opportunities, business mentoring, or assistance with disaster recovery, the SBA is ready and determined to help our customers succeed. The SBA remains committed to continuing our support of America’s entrepreneurs and making an even bigger impact in communities across the country. In particular, the SBA is focused on elevating female entrepreneurs and our military veterans, expanding access to SBA resources

among entrepreneurs in disadvantaged communities, and continuing to prioritize disaster relief. Within this resource guide, you will learn more about the tremendous tools the SBA provides small businesses through our 68 District Offices and numerous Resource Partners, such as our Small Business Development Centers, our SCORE mentoring network, Women’s Business Centers, and Veterans Business Outreach Centers. Featured in this guide are some of the remarkable success stories of entrepreneurs who partnered with the SBA to take their businesses to the next level. The SBA encourages you to also utilize these resources to help strengthen and meet your business goals. Sincerely,

Jovita Carranza SBA Administrator




PUBLISHED BY New South Media, Inc. 304.413.0104 |

PUBLISHER Nikki Bowman,

DESIGNER Hayley Richard,

MANAGING EDITOR Holly Leleux-Thubron,




ADVERTISING SALES Kelley McGinnis, Bryson Taylor

Copyright: New South Media, Inc. Reproduction in part or whole is strictly prohib- ited without the express written permission of the publisher. © 2019 NEW SOUTH MEDIA, INC., ALL RIGHTS RESERVED TheU.S. Small Business Administration’s Office of Marketing &Customer Service directs the publication of the Small Business Resource Guide under SBA Contract #SBAHQ- 17-C-0018. SBA publication summer 2019 national edition #mcs-0089.

WRITER/EDITOR Becky Bosshart (202) 205-6677 DIRECTOR OF MARKETING Paula Panissidi Tavares

The 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 here. All SBA programs and services are extended to the public on a nondis- criminatory basis. Directory listings do not constitute or imply an endorsement by the SBA of any opinions, products, or services of any private individual or entity.

Printed in the United States of America.

While every reasonable effort has been made to ensure that the information con- tained here is accurate as of the date of publication, the information is subject to change without notice. The contractor that publishes this guide, the federal govern- ment, 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 Syracuse District Office 224 Harrison St., suite 506 Syracuse, NY 13202 (315) 471-9393 Fax (315) 471-9288 @SBAUpstateNY Elmira Office 333 E. Water St., fourth floor Elmira, NY 14901 (607) 734-8130 Fax (607) 733-4656 TTY/TDD (607) 734-0557

Albany Office 1 Computer Drive South Albany, NY 12205 (518) 446-1118 Fax (518) 446-1228

District Director Letter W elcome to the 2020 edition of the U.S. Small Business Administration’s Syracuse District Office Small Business Resource Guide. The SBA helps make the American dream of small business ownership a reality. We are the only federal agency dedicated to helping our 30 million small businesses start, grow, expand, and recover after a disaster. The SBA Syracuse District Office works with an extensive network of business advisers and lenders to help upstate New York small businesses at every stage of development. Across 34 counties in upstate New York in the last year, we empowered small businesses to: • Find an ally, advocate or mentor via the 18 locations of our SBA Resource Partners, which includes SCORE, Small Business Development Centers, Women’s Business Centers, and the Veterans Business Outreach Center, all powered by the SBA. • Access over $172 million in SBA-guaranteed loans using local banks, credit unions, community-based lenders, and microlenders. These small businesses have hired thousands of new employees, bought needed equipment, and built/ renovated facilities. • Gain more than $900 million in federal contracting awards. Stay up to date on SBA events near you and get valuable upstate New York business information by following us on Twitter @SBAUpstateNY. Register for email updates at . Use our Small Business Resource Guide to power your dream of starting, growing, or expanding your small business here in upstate New York.

District Director Bernard J. Paprocki (315) 471-9393 x235 Deputy District Director Dan Rickman (315) 471-9393 x241 District Counsel Nancy L. Caple (315) 471-9393 x228 Lender Relations Specialist Valerie Shoudy (315) 471-9393 x253 Business Opportunity Specialist Steve Barr (315) 471-9393 x249 Elmira Office Economic Development Specialist


Howard E. Garrity (607) 734-8130x30

Bernard J. Paprocki Syracuse District Director U.S. Small Business Administration



Steve and Sara Morris Owners, Mello Velo Bicycle Shop & Café Syracuse, NY How We Did It




n 2009, Mello Velo was founded by Steve and Sara Morris in the Westcott neighborhood of Syracuse, New York, based on a simple premise: to create the best independent, locally owned, friendly bike shop around. Sara had just graduated from Syracuse University and as part of her thesis research, she and Steve conducted bike repairs out of their college house garage. Throughout school, they felt there was a huge need for convenient, fairly-priced, knowledgeable, and honest bicycle commuter services, and bikes too. They secured the only University area space their startup budget would afford, on the second floor of a commercial building on Westcott Street. The couple took advantage of free business counseling services from the Onondaga Small Business Development Center to develop their business plan. Two years later, Sara and Steve added snacks and coffee drinks to their business model, creating a small café in the existing 3,000-square-foot space. Challenge As our business gained a following among bicyclists across Central New York, we realized the business had outgrown our available space. We weren’t sure how to approach lenders with our unique business model to finance our dream expansion. Solution I graduated from the SBA Emerging Leaders program in Syracuse in 2014. Emerging Leaders truly helped me get out of the weeds, and gave me the confidence to make big decisions, and to take our business to the next level. The healthy business habits I gained continue with me to this day, as well as the inspiration to keep learning and growing. Benefit With our strategic growth plan developed in Emerging Leaders and help from our Syracuse SCORE mentor, we purchased a 10,000-square-foot vacant warehouse using a SBA 504 loan from the Greater Syracuse Business Development Corporation. With plenty of room now, we are able to feature over 200 bicycles on display, expand the size of the repair shop, and comfortably seat 100 in their full-service café and outdoor deck. We’re so excited to continue to build a Syracuse bicycle culture and serve the community even better than before!

Emerging Leaders truly helped me get out of the weeds, and gave me the confidence tomake big decisions, and to take our business to the next level.” Steve and Sara Morris Mello Velo Bicycle Shop & Café



SBA Resource Partners No matter your industry, location, or experience, if you have a dream, the SBA is here to help you achieve it. Our SBA Resource Partners offer mentoring, counseling, and training to help you startup and thrive at all stages of the business life cycle. These independent organizations operating across the United States and U.S. territories are funded through SBA cooperative agreements or grants.


950 Small Business Development Centers + 20 Veterans Business Outreach Centers + 100 Women’s Business Centers + 300 SCORE chapters +

Achieve your dream of business ownership and remain competitive in an ever-changing global economy with assistance from your local SBDC. Access free counseling and free or low- cost training on topics like regulatory compliance, technology development, and international trade. Find an SBDC adviser at .


Join the ranks of other business owners who have experienced higher revenues and increased growth thanks to SCORE, the nation’s largest network of volunteer business mentors. Experienced executives share real-world knowledge to fit your busy schedule. SCOREmentors are available for free as often as you need, in person, via email or over video chat. Find amentor at .


Women entrepreneurs receive essential business counseling and training from this national network of community-based centers. Each center tailors its services to help you navigate the challenges women often face when starting or growing a business. To learn about SBA resources for women visit .


Veteran and military entrepreneurs receive business training, counseling, and referrals to other SBA Resource Partners at a Veterans Business Outreach Center, . Receive procurement guidance to better compete for government contracts. VBOCs also serve active duty service members, National Guard or Reserve members, veterans of any era, and military spouses.



SBA’s Resource Partners are independent organizations funded through SBA cooperative agreements or grants. Our Local SBA Resource Partners

SCORE Contact your closest SCORE office first for an appointment. Albany Chapter 127 1 Computer Drive South (518) 446-1118 x233 Auburn Chapter 201 2 State St. (315) 252-7291 Binghamton Chapter 217 13737 Bible School Park (607) 772-8860 Clinton, Franklin, and Essex Chapter 647

7061 Route 9 Plattsburgh (518) 563-1000

Syracuse Chapter 98 224 Harrison St., suite 506 (315) 471-9393 x245 Utica Chapter 198 520 Seneca St., suite 102 (315) 792-7553

Women’s Business Centers Women’s Business Center of New York State 200 Genesee St. Utica (315) 733-9848 WISE Women’s Business Center 100 Madison St. Syracuse

Arthur and Sandra Johnson, owners of 21 Short Stop in Georgia, received assistance from their local Small Business Development Center and SCORE chapter.

(315) 443-8693



Small Business Development Centers NYS SBDC State University of NY Center Office 10 Pearl St. Albany (518) 944-2840 or (800) 732-SBDC Fax (518) 320-1593 Albany SBDC University at Albany 6 Executive Park Drive, entrance B (518) 380-5077 Fax (518) 380-5071 Binghamton SBDC Koffman Southern Tier Incubator 120 Hawley St., suite 294 (607) 777-4024 Fax (607) 777-4029 Binghamton SBDC– Painted Post Outreach Canton SBDC SUNY Canton French Hall 201 (315) 386-7312 Fax (315) 379-3814 Canton SBDC at Clinton Community College 100 Clinton Point Drive Plattsburgh (518) 324-3211 Main office (518) 324-SBDC Mohawk Valley SBDC Mohawk Valley Community College ThINCubator 326 Broad St. Utica (315) 731-5884 Onondaga SBDC Mulroy Hall, fourth floor 4926 Onondaga Road Syracuse (315) 498-6070 Fax (315) 498-2147 Oswego SBDC 121 E. First St. (315) 312-3493 Fax (315) 312-3374 Watertown SBDC Jefferson Community College 1220 Coffeen St. (315) 782-9262 Fax (315) 782-0901

IncubatorWorks 109 Canada Road Painted Post (607) 777-7232

With counseling from the Watertown SBDC, Army veteran Damon and Sonja Draught are living the dream as successful Dairy Queen franchisees.

Veterans Business Outreach Center Veteran entrepreneurs or small business owners can receive business training, counseling and mentoring, and referrals to other SBA Resource Partners at a Veterans Business Outreach Center, . This is also the place to receive procurement guidance, which can help your business better compete for government contracts. Veteran Business Outreach Center NY/NJ The Arsenal Business & Technology Partnership 44 Dalliba Ave. Watervliet

(518) 326-6328



Your Advocates The SBA offices of advocacy and ombudsman are independent voices for small business within the federal government.

To report how a proposed federal regulation could unfairly affect you, find your regional SBA advocate at . To submit a comment about how your business has been hurt by an existing regulation, visit ombudsman/comments .

The SBA’s Office of Advocacy also independently represents small business and advances its concerns before Congress, the White House, federal agencies, federal courts, and state policy makers. Ombudsman Entrepreneurs who have an issue with an existing federal regulation or policy can receive assistance from the SBA’s national ombudsman. The ombudsman’s office can help you: » resolve regulatory disputes with federal agencies » reduce unfair penalties and fines » seek remedies when rules are inconsistently applied » recover payment for services done by government contractors

Advocacy When you need a voice within the federal government for your interests as a small business owner, the SBA’s regional advocates are here to assist. The advocates analyze the effects of proposed regulations and consider alternatives that minimize the economic burden on small businesses, governmental jurisdictions, and nonprofits. Find your regional advocate at . Your advocate helps with these small business issues: » if your business could be negatively affected by regulations proposed by the government » if you have contracting issues with a federal agency » when you need economic and small business statistics

Make your voice heard by participating in a Regional Regulatory Enforcement Fairness Roundtable or a public hearing hosted by the SBA’s national ombudsman. These events are posted periodically on the ombudsman website, . To submit a comment or complaint through the online form, visit ombudsman/comments . Your concerns will be directed to the appropriate federal agency for review. The SBA will collaborate with you and the agency to help resolve the issue.



Adriana Medina, owner of Fuerte Fitness, in Seattle, WA, received counseling from a SCORE mentor and a Women's Business Center adviser.

How to Start a Business in Upstate New York Thinking of starting a business? Here are the nuts & bolts.

choosing a site for your business. Contact the local business license office where you plan to locate your business. You may not be permitted to conduct business out of your home or engage in industrial activity in a retail district. Name Registration Register your business name with the county clerk where your business is located. If you’re a corporation, also register with the state. Taxes As a business owner, you should know your federal tax responsibilities and make some basic business decisions to comply with certain tax requirements. The IRS Small Business and Self-Employed Tax Center, , offers information on a variety of topics including: obtaining an Employer Identification Number, paying and filing income tax, virtual workshops, forms, and publications. Whether you are a new or an experienced business owner, there are new tax law changes that may affect your business. As the IRS works to implement the Tax Cuts and Jobs Act, signed into law December 2017, you can access the latest information on to better understand the new tax law implications and how they affect your bottom line.

The Startup Logistics Even if you’re running a home-based business, you will have to comply with many local, state, and federal regulations. Do not ignore regulatory details. You may avoid some red tape in the beginning, but your lack of compliance could become an obstacle as your business grows. Taking the time to research the applicable regulations is as important as knowing your market. Carefully investigate the laws affecting your industry. Being out of compliance could leave you unprotected legally, lead to expensive penalties, and jeopardize your business. Market Research Need to do research on your clients and location? View consumer and business data for your area using the Census Business Builder: Small Business Edition, . Filter your search by business type and location to view data on your potential customers, including consumer spending, and a summary of existing businesses, available as a map and a report. Business License & Zoning Licenses are typically administered by a variety of state and local departments. It is important to consider zoning regulations when



An O'Fallon Casting Inc. Employee at work in O'Fallon, MO. Owner Vince Gimeno grew his business thanks to expert SBA business conseling.

Social Security If you have any employees, including officers of a corporation but not the sole proprietor or partners, you must make periodic payments, and/or file quarterly reports about payroll taxes and other mandatory deductions. You can contact the IRS or the Social Security Administration for information, assistance and forms, or (800) 772-1213. You can file W-2s online or verify job seekers through the Social Security Number Verification Service. Employment Eligibility Verification 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 Service offers information and assistance through central . For forms, call (800) 870-3676, for the employer hotline, call (888) 464-4218 or email E-Verify, operated by the Department of Homeland Security in partnership with the Social Security Administration, electronically verifies the Social Security number and employment eligibility information reported on Form I-9. It’s the quickest way for employers to determine the employment eligibility of new hires. Visit , call (888) 464-4218 or email Health & Safety All businesses with employees are required to comply with state and federal regulations regarding the protection of employees, visit for information. The Occupational Safety and Health Administration provides information on the specific health and safety standards used by the U.S. Department of Labor, (800) 321- 6742 or visit .

Employee Insurance Check with your state laws to see if you are required to provide unemployment or workers’ compensation insurance for your employees. For health insurance options, call the Small Business Health Options Program at (800) 706-7893 or visit . Child Support Employers are essential to the success of the child support program and are responsible for collecting 75 percent of support nationwide through payroll deductions. The Office of Child Support Enforcement at Health and Human Services offers employers step-by-step instructions for processing income withholding orders for child support. A guide to an employer’s role in the child support program is available at the Office of Child Support Enforcement’s website at css > employer responsibilities . You can also find information about other employer responsibilities and tools that can make meeting those responsibilities easier, such as electronic income withholding orders and the Child Support Portal. Send questions to Intellectual Property For information and resources about U.S. patents and federally registered trademarks visit or call the U.S. Patent and Trademark Office Help Center at (800)786-9199. A patent for an invention is the grant of a property right to an inventor, issued by the patent office. The right conferred by the patent grant is the right to exclude others frommaking, using, offering for sale, or selling the invention in the United States or importing the invention.



Chambers of Commerce Clayton (315) 686-3771 Adirondack region (518) 798-1761

Kari Weigel provides educational services to rural communities through her Sylvan Learning Center in Fargo, ND, which she expanded with the help of SBA-backed financing.

Alexandria Bay (315) 482-9531 Bainbridge (607) 967-8700 Bethlehem (518) 439-0512 Bolton (518) 644-3831 Boonville area (315) 942-5112 Camden area (315) 245-5000 Canastota (315) 697-3677 Canton

(315) 386-8255 Cape Vincent (315) 654-2481 Capital Region (518) 431-1400 Carthage area (315) 493-3590 Cayuga County (315) 252-7291 CenterState CEO (315) 470-1800 Central Adirondack Association (315) 369-6983 Central Steuben (607) 776-7122 Speculator (518) 548-4521 Chemung County (607) 734-5137 Chenango County (607) 334-1400 Clinton (315) 853-1735 Columbia County

For inventor entrepreneur resources visit . There are three types of patents: • Utility patents may be granted to anyone who invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement. • Design patents may be granted to anyone who invents a new, original, and ornamental design for a manufactured article. • Plant patents may be granted to anyone who invents or discovers and asexually reproduces any distinct and new variety of plant, other than a tuber propagated plant or a plant found in an uncultivated state. A trademark or service mark includes any word, name, symbol, device, or any combination, used to identify and distinguish the goods/services of one provider from others. Trademarks and

service marks may be registered at both the state and federal level. The U.S. Patent and Trademark Office only registers federal trademarks and service marks, which may conflict with and supersede state trademarks. Visit uspto.

gov/trademarks . Copyrights

Copyrights protect original works of authorship including literary, dramatic, musical and artistic, and certain other intellectual works, such as computer software. Copyrights do not protect facts, ideas, and systems, although theymay protect the way they are expressed. For general information on copyrights, contact: » U.S. Copyright Office U.S. Library of Congress James Madison Memorial Building 101 Independence Ave. SE Washington, DC (202) 707-3000 or toll free (877) 476-0778

(518) 828-4417 Cooperstown (607) 547-9983



Corning (607) 936-4686 Cortland County (607) 756-2814 Delaware County (607) 746-2281 Fair Haven area (315) 947-6037

Herkimer County (315) 866-7820 Hornell area (607) 324-0310 Indian Lake (518) 648-5112 Inlet area (315) 357-5501 Lake George Regional (518) 668-5755 Lewis County (315) 376-2213 Malone (518) 483-3760 Mechanicville-Stillwater (518) 664-7791 Northern Tier (518) 297-3040 North Country (518) 563-1000 Otsego County (607) 267-4010 Plank Road (315) 458-4181 Potsdam (315) 274-9000 Pulaski/Eastern Shore (315) 298-2213 Rensselaer County region (518) 274-7020 Richfield Springs (315) 217-1485 Rome area (315) 337-1700 Saranac Lake area (518) 891-1990 Saratoga County (518) 584-3255 Schenectady County (518) 372-5656 Schoharie County (518) 295-8824 Schroon Lake area (518) 532-7675 Sidney (607) 561-2642 Southern Saratoga County (518) 371-7748

St. Lawrence County (315) 386-4000 Ticonderoga area (518) 585-6619 Tioga County (607) 687-2020 Tompkins County (607) 273-7080 Tupper Lake (518) 359-3328 Watkins Glen area (607) 535-4300 Economic

Fort Edward (518) 747-3000 Fulton Montgomery region (518) 725-0641 Greater Baldwinsville (315) 638-0550 Greater Binghamton (607) 772-8860 Greater Cazenovia (315) 655-9243 Greater Cherry Valley (607) 264-3100 Greater Gouverneur area (315) 287-0331 Greater Greenwich (518) 692-7979 Greater Liverpool (315) 457-3895 Greater Massena (315) 769-3525 Greater Mexico (315) 963-1042 Greater Ogdensburg (315) 393-3620 Greater Oneida (315) 363-4300 Greater Oswego-Fulton

Development Saint Regis Mohawk Tribe Office of Economic Development 447 Frogtown Road, suite 201 Akwesasne (518) 358-2835 New York Empire State Development Business assistance hotline (800) STATE- NY or (800) 782-8369 Albany 30625 Broadway (518) 292-5100 Troy Hedley Park Place 433 River St., suite 1003 (518) 270-1130 Syracuse 620 Erie Blvd. West, suite 112 (315) 425-9110 Utica

(315) 343-7681 Greater Utica (315) 724-3151 Greater Valley (607) 249-6192 Greater Watertown-North Country

207 Genesee St. (315) 793-2366 Watertown Dulles State Office Building 317 Washington St., second floor (315) 785-7907 Binghamton State Office Building 44 Hawley St., suite 1508 (607) 721-8605

(315) 788-4400 Greene County (518) 943-4222 Guilderland (518) 456-6611 Hammondsport (607) 569-2989



Vocademy in Riverside, , trains underserved populations for vocational careers in manufacturing. Indiana Ruckus Makerspace in Indianapolis, , provides coaching and job placement complementing day-to-day job skills training. Massachusetts The Clubhouse-to-Career Pathways to Success program in Roxbury, , places its participants in meaningful employment matching their skill sets. Missouri Rightfully Sewn in Kansas City, , prepares at-risk women and underserved populations for entry level sewing positions, increasing their tailoring and production management skills. New Hampshire Monadnock Art x Tech Makerspace in Peterborough fills the need for qualified welders in construction and industry, visit . New Jersey New Jersey Institute of Technology Makerspace in Newark connects participants with entry level advanced manufacturing jobs, in addition to an apprenticeship program, visit . New York The Foundry in Buffalo, , operates four makerspaces, metal and wood shops and tech and textile labs, in support of education and entrepreneurship. North Carolina Forge Greensboro connects untapped talent to employment opportunities through pre-apprenticeship programs and accreditation, visit . Oklahoma Fab Lab Tulsa prepares participants with high-value skills to secure careers as operators and technicians in digital fabrication, visit . Pennsylvania NextFab’s Furnishing a Future program in Philadelphia places trained carpenters, visit .

Workshops for Warriors welding student Nikolas Williams trains in the San Diego makerspace, which receives SBA funding for its welding and machining programs. Workshops for Warriors places program graduates into advanced manufacturing careers nationwide.

Workforce Recruitment Find qualified workers at these makerspace initiatives fund d by the SBA. If you are a small business employing skilled laborers, access a new talent pool for recruitment at your local makerspace. How it benefits you These community operated workspaces provide training and resources to better prepare workers for the jobmarket, offering job-specific and soft skills training. Connect with one of these organizations to see if thesemakerspace participants could work for your small business. California Workshops for Warriors, , trains, certifies to national standards, and places veterans into advanced manufacturing careers nationwide.



Learn the skills to grow your small business in this seven-month course.

Accelerate Growth Small business executives looking to grow their business, create jobs, and strengthen their communities will find their next challenge

in the SBA Emerging Leaders program. This seven-month course offers about 100 hours of training and provides the opportunity for high-potential small business owners to work with experienced coaches and mentors while developing connections with peers, local leaders, and the financial community. How it benefits you Since the start of the program in 2008, Emerging Leaders graduates have reported creating over 6,500 jobs, gaining more than $300 million in new financing, and securing over $3.16 billion in government contracts. Participants produce a three-year strategic growth plan that connects them with the necessary tools and resources to reach major performance targets. What you learn The curriculum is research-based and nationally scalable, enabling you to engage in focused development and expansion strategies, including options for accessing new capital and securing government contracts. Who’s eligible Small businesses having annual revenues of at least $250,000, in business for at least three years, and with at least one employee.

HOW THE SBA HELPED ME SUCCEED When April Broderick wanted to expand into government contracting, she turned to the SBA. A&A Fire and Safety Co. in Cabot, AR serves the fire protection and service needs of businesses, schools, and fire departments across Arkansas. She took over from her father, Alan, in 2014, becoming one of the few women executives in her industry. With the help of the SBA Emerging Leaders program, April received business training and networking opportunities to help her better compete in the public marketplace. April committed to the program because she wanted to develop a three- year growth plan with business experts. Since graduating from Emerging Leaders, she has grown her business to six full-time employees, seven part time, with a projected 2019 revenue of $1.7 million.

Get involved To register online, visit emergingleaders .



Entrepreneurial Opportunities

Regional Innovation Clusters Create jobs and grow the economy through an SBA Regional Innovation Cluster. Who should join Small businesses driving innovation in one of these tech industries: • advanced composites • agTech • bioscience • food processing • data sciences

Online Resources Find free short courses and learning tools to start and grow your small business at . The free SBA Online Learning Center is a great resource for every entrepreneur, especially rural business owners looking for easy access to vital business training. Courses include: • writing your business plan • buying a business • financing options • digital and traditional marketing to win customers • disaster recovery • understanding your customer Native American Workshops Tribal enterprises and business organizations can receive training at an SBA Entrepreneurial Empowerment Workshop. These workshops cover business concepts important for starting, growing, or expanding a small business. RedWind instructors identify and help participants avoid common pitfalls. Learn how to prepare a business plan, gain access to capital, and basic book keeping. Request a workshop in your area by visiting .

• medical sciences • power and energy • unmanned aerial systems • water tech • wood products

How it works Each industry cluster is based in a geographic region. Your small business must be located in or near that region in order to join the cluster. For example, the AgLaunch Initiative cluster, which focuses on agricultural technology, is located in the Tennessee area. A small agTech business in or near Tennessee will connect with other agTech suppliers, service providers, and related institutions through that innovation cluster. How it benefits you Network with other industry innovators and connect with resources that will help your small business find funding. You’ll also receive guidance on how to better compete for government contracts and other opportunities so you can grow and expand. Receive free technical and legal assistance to develop your tech and get it to market for government and industry buyers. Get involved Find an SBA Regional Innovation Cluster near you by visiting . Select the regional innovation clusters on the drop-down menu.


SBA Regional Innovation Clusters

Autonomous & Unmanned Systems Cluster – Emerging Tech Ventures The Ozarks Cluster – Startup Junkie (Industry focus: Food processing, supply chain, & logistics) The Water Council Cluster Marine IndustryScience& TechnologyCluster BioSTL: St. Louis Biosciences Cluster Oklahoma-South Kansas Unmanned A eri- al Systems Cluster The AppalachianOhioWoodProducts Cluster Conductor RIC in Healthcare, Education & Data/Decision Sciences – Startup Junkie Consulting

Integrative Business Services Inc. (Industry focus: Optics) Great Plains Technology & Manufacturing Cluster Montana Bioscience Cluster – Montana Technology Enterprise Center AgLaunch Initiative

Utah Advanced Material Manufacturing Initiative

Defense Alliance - LSI Business Development Inc. (Industry focus: Advanced Power and Energy)



HOW THE SBA HELPED ME SUCCEED U.S. Navy veteran Roberto Ortiz puts his 40 years of aviation management experience to use as a small business owner in Chesapeake, VA. Bert expanded AVMAC Inc. into the government sector fulfilling aviation and maritime logistical services with the help of his local SBA Veterans Business Outreach Center. VBOCs are the first stop for military community entrepreneurs looking to start, grow, or expand a small business. The VBOC located at Old Dominion University helped Bert obtain government contracting business certifications. With support from his local VBOC, Bert has strategically positioned AVMAC in the federal marketplace to better compete for large-scale government contracts. From AVMAC’s first contract in 2010, this veteran-led company has nearly doubled in revenue and grown to over 400 employees.

AVMAC President/CEO Bert Ortiz, left, and fellow U.S. Navy veteran and electrician Ken Morey manufacturing a power panel bracket.

Opportunities for Veterans

Military community members become more successful entrepreneurs with the help of the SBA.

Who’s eligible? Service members transitioning out of active duty and military spouses. Boots to Business: Reboot, for veterans, National Guard or Reserve members and military spouses, teaches this entrepreneurship curriculum off base in communities. Register for either B2B program at . For women veterans Receive entrepreneurial training geared toward women veterans, service

members, and spouses through these SBA- funded programs: » Veteran Women Igniting the Spirit of Entrepreneurship in Syracuse, New York

Entrepreneurship training In Boots to Business, explore business ownership and other self-employment opportunities while learning key business concepts. Walk away with an overview of entrepreneurship and applicable business ownership fundamentals, including how to access startup capital using SBA resources. Boots to Business is conducted on all military installations as part of the Department of Defense’s Transition Assistance Program.

» LiftFund in San Antonio, Texas For service-disabled veterans Learn how to start and grow a small

business using these SBA-funded programs: » Entrepreneurship Bootcamp for Veterans with Disabilities in Syracuse, New York



» Veterans Entrepreneurship Program at the Riata Center for Entrepreneurship, Spears School of Business, Oklahoma State University in Stillwater, Oklahoma » Veteran Entrepreneurship Jumpstart at St. Joseph’s University in Philadelphia, Pennsylvania » Dog Tag Inc., affiliated with Georgetown University in Washington, DC

Financing Employee called to active duty?

You can receive funds that enable your business to meet ordinary and necessary operating expenses when an essential employee is called up to active duty in the military reserve. Ask your local SBA specialist or lender about the Military Reservist Economic Injury Disaster Loan. Government contracting Veteran-owned and service-disabled veteran-owned small businesses that want to better compete in the public market receive training from the Veteran Institute for Procurement, . VIP Start Enter the federal market and become ready for procurement. VIP Grow Strategize to expand and operate within the federal marketplace. VIP International Enter or expand your federal and commercial contracting opportunities overseas. Get certified Learn about the service-disabled veteran- owned small business certification program on page 49. Need assistance? Veteran and military entrepreneurs receive business training, counseling, and referrals to other SBA Resource Partners at a Veterans Business Outreach Center, . For veterans business information visit .



Write your Business Plan

Your business plan is the foundation of your business. Learn how to write a business plan with the help of an SBA Resource Partner. TRADITIONAL BUSINESS PLAN FORMAT

When you write your business plan, you don’t have to stick to the exact business plan template. Instead, use the sections that make the most sense for your business and your needs. Executive Summary Briefly summarize your company and why it will be successful. Include your mission statement, your product or service, and basic information about your company’s leadership team, employees, and location. You should also include financial information and high-level growth plans if you plan to ask for financing. Company Description Go into detail about the problems your business solves. Be specific as to audience and location. List out the consumers, organizations, or businesses your company plans to serve. Explain the competitive advantages you have that will make your business successful. Are there experts on your team? Have you found the perfect location? Your company description is the place to boast about your strengths. Market Analysis Demonstrate a solid understanding of your industry outlook and tar- get market. This is where it pays to partner with an experienced busi- ness counselor fromyour local Small Business Development Center, SCORE, Women's Business Center, or Veterans Business Outreach Center—all these SBA Resource Partners provide free or low-cost business assistance. Competitive research will showwhat other busi- nesses are doing and their strengths. In your market research, look for trends and themes. What do successful competitors do? Why does it work? Can you do it better? Now's the time to answer these questions. Organization and Management

Business plans help you run your business. A good business plan guides you throughmanaging your business. You’ll use your business plan as a roadmap for how to structure, run, and grow your new business. Business plans can help you get funding or bring on new business partners. Investors want to see a return on their investment. Your business plan is the tool you’ll use to convince people that working with you—or investing in your company—is a smart investment. Brain storm with a business counselor (visit one of our SBA Resource Partners detailed on page 10) and write a traditional business plan , which uses a standard structure and detailed sections. Once you've got it all down, you can then condense it to a lean startup business plan, which typically contains key points on only one page.

Explain how your com- pany will be structured and who will run it. Describe the legal structure of your busi- ness. Statewhether you have or intend to incor- porate your business as a C or an S corporation, forma general or limited partnership, or if you're a sole proprietor or limited liability company.

Want to see an example of a business plan? View examples of business plans at write-your-business- plan-template



LEAN STARTUP PLAN FORMAT Write a lean startup plan if requested from an investor, or if your business is relatively simple or you plan to regularly change and refine as you go. Lean startup plans use more visual organization tools and only a handful of elements to describe your company’s value proposition, infrastructure, customers, and finances. They’re useful for visualiz- ing your company's fundamental facts. Your business counselor can help you edit down into the Business Model Canvas, used here—the most well known style, or another lean startup template. Key Partnerships Note the other businesses you’ll work with--suppliers, manufactur- ers, subcontractors, and similar strategic partners. Key Activities List the ways your business will gain a competitive advantage. Will you sell direct to consumers or use technology to tap into the sharing economy? Key Resources List resources you’ll leverage to create value for your customer. Your most important assets include staff, capital, or intellectual property. Leverage business resources that might be available to women, veterans, Native Americans, and HUBZone–certified businesses. Value Proposition Make a clear and compelling statement about the unique value your company brings to the market. Customer Relationships Describe how customers will interact with your business. Think through the customer experience from start to finish. Is it auto- mated or personal? In person or online? Customer Segments Name your target market. Your business won’t be for everybody; it’s important to have a clear sense of who you serve. Channels List the most important ways you’ll talk to your customers. Cost Structure Will your company focus on reducing cost or maximizing value? Define your strategy, then list the most significant costs you’ll face. Revenue Streams Explain how your company makes money: direct sales, member- ships fees, selling advertising space? If your company has multiple revenue streams, list them all.

Use an organizational chart to show the hierarchy. Explain how each person’s experience will contribute to the success of your venture. Consider including CVs of key members. Service or Product Line Describe what you sell or what service you offer. Explain how it ben- efits your customers and the product lifecycle. Share your plans for intellectual property, like copyright or patent filings. If you're doing research and development for your service or product, explain it. Marketing and Sales Your marketing strategy should evolve and change to fit your needs in each context. Describe how you'll attract and retain customers. Show how a sale will actually happen. You'll refer to this section later when you make financial projections, so be thorough. Funding Request If you're asking for funding, outline your funding requirements. Specify whether you want debt or equity and the terms you'd like. Your goal is to clearly explain how much funding you’ll need over the next five years and how the investment will be used. Specify if you need funds to buy equipment or materials, pay salaries, or cover specific bills until revenue increases. Explain how ❒ Executive summary ❒ Company description ❒Market analysis ❒ Organization and management ❒ Service or product line ❒Marketing and sales ❒ Funding request ❒ Financial projections ❒ Appendix TRADITIONAL BUSINESS PLAN CHECKLIST

you'll pay off the debt. Financial Projections

Supplement your funding request with a prospective financial outlook for the next five years. Show how your business will be a financial success. If your business is already established, include income state- ments, balance sheets, and cash flow statements for the last three to five years. List collateral you could put against a loan. Include forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. For the first year, be even more specific and use quarterly—or even monthly —projections. Make sure to clearly explain your projections and match them to your funding requests. Use visual organization tools--graphs and charts—to tell your business's financial story. Appendix Here you'll attach supporting documents or other requested materials. Common items to include are credit histories, CVs, product pictures, letters of reference, licenses, permits, patents, legal documents, and other contracts.


❒ Key partnerships ❒ Key activities ❒ Key resources ❒ Value proposition ❒ Customer relationships

❒ Customer segments ❒ Channels ❒ Cost structure ❒ Revenue streams


FUNDING PROGRAMS Financing Your Small Business

Crafting a Business SBA-backed financing helped Superstition Meadery expand into a multimillion dollar enterprise. written by Becky Bosshart How We Did It




Solution Thanks to guidance from an SBA Resource Partner, the Small Business Development Center at Yavapai Community College, Jennifer and Jeff learned about financing that worked for them. The SBA guarantees loans made by lending institutions to small business that would not otherwise be able to obtain financing. Their small business qualified for two SBA-backed loans totaling more than $600,000. The Herberts’ first SBA-backed loan allowed them to acquire commercial property to design and build their mead production facility. Their second SBA-backed loan provided the funding for professional brewing equipment to complete their 7,450-square-foot production space. The Herberts recently purchased a historic building in downtown Phoenix, Arizona to open a mead-pairing restaurant. Benefit The Herberts started with two employees and now have over 20 producing 29,000 gallons this year. From a homegrown setup, Jennifer and Jeff are now charting revenue in excess of $2.6 million and distributing to 37 states, across Europe and Southeast Asia. They have plans for another expansion, including a shipping warehouse to manage their online retail and wholesale orders.

ennifer and Jeff Herbert’s home-based brewing has expanded into a global, multimillion dollar enterprise thanks to SBA

assistance. Using Arizona honey and ingredients they’ve sourced from around the world (such as Tahitian vanilla and Moroccan saffron), the Herberts are selling nearly 30,000 gallons annually of their honey-based fermented beverage. They operate a downtown Prescott, Arizona tasting room and state-of-the-art production facility, creating jobs and building a local craft industry. The Herberts, founding members of the American Mead Makers Association, have traveled around the world hosting pairing events and pouring at craft beverage festivals. Challenge The Herberts wanted to scale up their meadery while also staying true to their values of quality ingredients and craft process. It is often difficult for new entrepreneurs or unique concepts like a meadery to get traditional financing, even though they knew they had a great idea, the backing wasn’t there to expand. They say that choosing to do something new breaks the mold, which can be uncomfortable for traditional lenders.

5 Tips for Success Get guidance. Develop a working relationship with an SBA Resource Partner (see page 10) to help you find the funding that works best for you. Define your lending needs. Determine if a loan is right for you. Is this the right time? How much do you need? What are you going to use it for? Talk to multiple lenders. See who best matches you and your business. Has the lender successfully worked with other businesses in your industry? Check all options. Consult with your lender to see if you’re eligible for SBA financing programs, determined by your industry & experience; collateral; credit score; and the relationship & transparency you develop with the lending agent.

Be ready for the ups and downs.

Your entrepreneurial endeavor will be a roller coaster ride filled with challenges and successes. The path is all consuming so make sure that you love what you do. Passion is the price of admission.

Jeff & Jennifer Herbert, owners of Superstition Meadery, completed their 7,450-square- foot production space and opened a tasting room in Prescott, AZ with the assistance of SBA-backed financing. See their story on YouTube by searching for the 2019 National Small Business Persons of the Year.


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