Kentucky Edition 2020–2021—U.S. Small Business Admin…

Small Business resource guide KENTUCKY EDITION 2020–2021

START GROW EXPAND YOUR BUSINESS

Small Business Resource Guide 1

2 U.S. Small Business Administration

CONTENTS Kentucky Edition 2020–2021

Local Business Assistance

Funding Programs

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22 National Success Story Jennifer and Jeff Herbert’s meadery has expanded into a multimillion dollar enterprise thanks to SBA assistance. 25 SBA Lenders 35 Need Financing? 36 Go Global with International Trade 38 R&D Opportunities for High Growth Startups 40 COVID-19 Economic Recovery 42 Surety Bonds Contracting 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

Local Success Story W ith guidance from her local Small Business Development Center and SCORE mentor, Mavis Linnemann-Clark positioned her small business to succeed, helping create jobs in her community.

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10 Local SBA

Resource Partners

12 Your Advocates 13 How to Start a Business 16 Opportunities for Veterans 18 Entrepreneurial Resources 20 Write Your Business Plan

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48

44

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ON THE COVER Paige Linnemann Pindela, left, and Mavis Linnemann-Clark, owner of the Delish Dish, courtesy of The Delish Dish & Made by Mavis Jams and Jellies; Jennifer and Jeff Herbert, courtesy of Superstition Meadery; Arthur and Sandra Johnson, courtesy of the SBA; Stephanie Vitori, courtesy of the SBA

Small Business Resource Guide 3

U.S. SMALL BUSINESS ADMINISTRATION A MESSAGE FROM THE ADMINISTRATOR

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

WE MAKE SMALL BUSINESS OUR BUSINESS. START • GROW • EXPAND • RECOVER

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Copyright: New South Media, Inc. Reproduction in part or whole is strictly prohib- ited without the express written permission of the publisher. © 2020 NEW SOUTH MEDIA, INC., ALL RIGHTS RESERVED The U.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 winter 2020 national edition #mcs-0134

WRITER/EDITOR Becky Bosshart (202) 205-6677 rebecca.bosshart@sba.gov DIRECTOR OF MARKETING Paula Panissidi Tavares paula.tavares@sba.gov

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 non- discriminatory 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.

6 U.S. Small Business Administration

SBA Kentucky District Office Romano Mazzoli Federal Building 600 Dr. Martin Luther King Jr. Place, room 188 Louisville, KY 40202 (502) 582-5971 sba.gov/ky @SBA_Kentucky

W elcome to the 2020-2021 edition of the U.S. Small Business Administration’s Kentucky 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 over 30 million small businesses start, grow, expand, and recover after a disaster. Throughout the Commonwealth of Kentucky, over 712,000 people work for small businesses, making small business and its success an integral part of our economy and a catalyst for all we do. What has been accomplished this last year? Entrepreneurs have found success thanks to our resource partner network, including our Small Business Development Centers, SCORE mentors, the Veterans Business Outreach Center, and the Women’s Business Center. Entrepreneurs have also benefited from the Kentucky Cabinet for Economic Development and our Procurement Technical Assistance Centers. Our SBA Lenders and partner financial institutions have assisted in providing 635 small business loans, totaling $174 million. Kentucky has over 3,700 small business exporters, who account for 12% of the $30 billion in export sales. Kentucky small businesses were awarded $777 million in federal contract awards. We have increased the number of small businesses that participate in SBA certification programs. We continue to recruit new businesses for these programs so that qualified businesses can better compete for government contracts. We work to continue serving our rural communities, promoting the use of the 8(a) Business Development Program and supporting the state's historically black colleges and universities. Stay up to date on SBA events near you and get valuable Kentucky business information by following us on Twitter @SBA_Kentucky. Register for email updates at sba.gov/updates. Use our Small Business Resource Guide to power your dream of starting, growing, or expanding your small business here in Kentucky.

District Director Robert Coffey (502) 276-6877 robert.coffey@sba.gov Economic Development Specialist & Administrative Officer Cherie Guilford (502) 276-7653 cherie.guilford@sba.gov Lender Relations Specialist, District International Trade Officer, & SBDC Project Director Dana Winston (502) 276-7669 dana.winston@sba.gov Lender Relations Specialist & Economic Development Specialist Sharron Johnson (502) 276-7655 sharron.johnson@sba.gov Lead Economic Development Specialist, Veteran Business Development Officer, Women’s Business Center Liaison & SCORE Liaison Tommie Causey (502) 276-6873 tommie.causey@sba.gov Senior Area Manager & Public Information Officer Michael Ashcraft (502) 276-6867 michael.ashcraft@sba.gov Outreach & Marketing Specialist Kendria Rice-Locket (502) 276-7672 kendria.rice-locket@sba.gov Program Support Assistant Devin Davis (502) 276-7676 devin.davis@sba.gov

Sincerely, Robert Coffey District Director

Small Business Resource Guide 7

LOCAL BUSINESS ASSISTANCE

W ith guidance from her local Small Business Development Center and SCORE mentor, Mavis Linnemann-Clark positioned her small business to succeed, helping create jobs in her community. Mavis has been a certified caterer and personal chef since 2012. In addition to your local farmers’ market, you can find Mavis’s artisanal jams and jellies at DEPs and Whole Foods. The Challenge Since I was young, I worked in bakeries, candy stores and coffee shops while honing my baking skills at home. I took cooking classes in Italy and later in Chicago. Despite my training, experience and early successes, I realized that I needed help operating the business side. The SBA Solution SBA Resource Partners across the state offer mentoring, counseling, and training for free or low cost to help busy entrepreneurs like me. My business advisers at the Northern Kentucky University SBDC helped me manage my rapid growth in revenue and staffing. I also meet regularly with my SCORE mentor. Thanks to my business advisers, I’ve developed a strategic plan so I could introduce new product lines and increase profit margins. The Benefit With financial analysis and guidance from SBDC and SCORE, I have been able to manage cash flow through the seasonal highs and lows. I employ 30 and increased my footprint, going from 500 square feet to over 4,500. My jams and jellies can be found here and Ohio in many quality retailers in addition to online. I am Kentucky Proud!

Paige Linneman Pindela, left, and Mavis Linnemann-Clark, owner of The Delish Dish, Made by Mavis and Kickstart Kitchens

Mavis Linnemann-Clark Owner/Founder, The Delish Dish & Made by Mavis Jams and Jellies Covington, KY How I Did It

8 U.S. Small Business Administration

LOCAL BUSINESS ASSISTANCE

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 start up 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 + 100 300 + +

SMALL BUSINESS DEVELOPMENT CENTERS

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 sba.gov/sbdc .

SCORE

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 sba.gov/score .

WOMEN’S BUSINESS CENTERS

Women entrepreneurs receive 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 sba.gov/women .

VETERANS BUSINESS OUTREACH CENTERS

20 +

Veteran and military entrepreneurs receive business training, counseling, and referrals to other SBA Resource Partners at a Veterans Business Outreach Center, sba.gov/vboc . 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.

Small Business Resource Guide 9

LOCAL BUSINESS ASSISTANCE

SBA’s Resource Partners are independent organizations funded through SBA cooperative agreements or grants. Our Local SBA Resource Partners Small Business Development Centers Kentucky SBDC State Office 343 Waller Ave., suite 205 (859) 257-7668 or toll free (888) 475-SBDC Business Coaches Lee Goatley, lee.goatley@uky.edu Stuart Arnold, stuart.arnond@uky.edu Business Coach (PT) John Zink, john.zink@uky.edu Communications Coordinator Becky Marefat, becky.marefat@uky.edu University of Kentucky SBDC Elizabethtown Business Coach Rodney Kuhl, rodney.kuhl@uky.edu (606) 454-7042 Business Coach Jacob Phelps, jc.phelps@uky.edu (270) 566-4092 University of Kentucky

SBDC Berea 633 Chestnut St. (606) 454-7042 Business Coach Vallorie Henderson vallorie.henderson@uky.edu 859-221-2122

Serving Breckinridge, Grayson, Green, Hardin, Larue, Marion, Meade, Nelson, Taylor, and Washington counties 1105 Juliana Court, suite 6 (270) 765-6737 Director/Business Coach Patricia Krausman patricia.krausman@uky.edu Business Coach Steve Heil, steve.heil@uky.edu Information Coordinator Neeley Hacker, neeley.hacker@uky.edu University of Kentucky SBDC Louisville Serving Bullitt, Carroll, Henry, Jefferson, Oldham, Owen, Shelby, Spencer, and Trimble counties 614 W. Main St., suite 6000 (502) 625-0123 Director David Oetken, david.oetken@uky.edu Business Coach Toni Sears, toni.cardell@uky.edu Communications Coordinator Janet Flaugh, janet.flaugh@uky.edu Special Projects Manager Lauren Yates, lyroebuck@gmail.com University of Kentucky SBDC London Serving Adair, Casey, Clinton, Estill, Garrard, Jackson, Laurel, Lincoln, Madison, McCreary, Pulaski, Rockcastle, Russell, Wayne, and Whitley counties 440 Old Whitley Road, suite 101, London (606) 454-7042

kybizhelp.com State Director Kristina Joyce, kjoyce@uky.edu

Associate State Director of Finance Todd Coleman, todd.coleman@uky.edu Associate State Director of Programming & Outreach Scarlett Consalvi, sconsalvi@uky.edu Program Coordinator Kevin Norvell, kevin.norvell@uky.edu Data Analyst Kristy Coates, kristy.coates@uky.edu Executive Assistant/Office Manager Joyce Smith, joyce.smith19@uky.edu Accounting Clerk Jack Cornett, jcorn3@uky.edu Marketing Assistant Ryan Ferguson, rferguson@uky.edu Outreach Coaches Kayla Keeton kayla.keeton@uky.edu Monica Poindexter monica.poindexter@uky.edu CENTRAL KENTUCKY University of Kentucky SBDC Bluegrass Serving Anderson, Bourbon, Boyle, Clark, Fayette, Franklin, Harrison, Jessamine, Mercer, Nicholas, Powell, Scott, andWoodford counties 330 E. Main St., suite 210, Lexington (859) 257-7666 or toll free (888) 475-7232

EAST KENTUCKY Morehead State University SBDC Ashland Serving Boyd, Carter, Elliott, Greenup, and

Lawrence counties 1400 College Drive (606) 329-8011 Business Coach

Tony Pence, tgpence@moreheadstate.edu Morehead State University SBDC District Office Serving Bath, Bracken, Fleming, Lewis, Mason, Menifee, Montgomery, Morgan, Robertson, and Rowan counties 149 E. Main St., Morehead (606) 783-2895 Director/Business Coach Mark Murphy m.murphy@moreheadstate.edu Business Coach Rachel Bowling, rtbowling@ moreheadstate.edu Mike Jackson, m.jackson@ moreheadstate.edu Morehead State University SBDC Prestonsburg Serving Breathitt, Floyd, Johnson, Knott, Lee, Magoffin, Martin, Owsley, Pike, and Wolfe counties

10 U.S. Small Business Administration

LOCAL BUSINESS ASSISTANCE

Business Coaches Michele Kors, michele.kors@uky.edu Kevin Yates, kevin.yates@uky.edu SCORE Call for an appointment or visit sba.gov/score . Louisville Chapter #75 (502) 888-4543 Chapter Chair Carl Coslow scorelouisville@scorevolunteer.org louisville.score.org Bardstown Counseling Center 310 Xavier Drive (502) 386-5603 or (502) 350-0948 Ashley Patterson ashley@skyforwardfoto.com Big Sandy Counseling Center–Pikeville (859) 806-8258 Branch Manager Bill Shutters bill.schutters@gmail.com Bowling Green Counseling Center Chamber of Commerce Center

Scottsburg, IN Counseling Center Mid America Science Park Business Center

6 Bert T. Combs Drive, room 207 (800) 648-5372 x2681 Business Coaches Michelle Spriggs

821 Lake Road (812) 752-9521 David Church dchurch3200@gmail.com Veterans Business Outreach Center

m.spriggs@moreheadstate.edu Nick Brophy, brophyn@nku.ed Micah Meyers, myersm6@mymail.nku.edu NORTHERN KENTUCKY Northern Kentucky University SBDC Serving Boone, Campbell, Gallatin, Grant, Kenton, and Pendleton counties Haile U.S. Bank College of Business Highland Heights (859) 448-8801 Director/Business Coach Catherine Glover gloverc5@nku.edu Kentucky SBDC Covington Serving Boone, Campbell, Gallatin, Grant, Kenton, and Pendleton counties 20 W. Pike St. (859) 993-7773 Business Coach Lisa Brann, lisa.brann@uky.edu SOUTHEAST KENTUCKY Southeast Kentucky Community & Technical College SBDC Serving Bell, Clay, Harlan, Knox, Leslie, Letcher, and Perry counties Middlesboro Campus 100 College Road (606) 248-0563 or toll free (888) 225-SBDC Director/Business Coach Sam Coleman, samuel.coleman@kctcs.edu Communications Coordinator Gabrielle Wright, gwright001@kctcs.edu Business Coach Mike Morley (606) 515-7440 mmorley@mikrotec.com WEST KENTUCKY Bowling Green Consortium SBDC, Bowling Green Serving Allen, Barren, Butler, Cumberland, Edmonson, Hart, Logan, Metcalfe, Monroe,

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, sba.gov/vboc . This is also the place to receive procurement guidance, which can help your business better compete for government contracts. Serving Kentucky & Tennessee 201 Venture Circle, Nashville, TN (615) 425-7171 pathwaylending.org/vboc Director Reggie Ordonez reggie.ordonez@pathwaylending.org Women’s Business Center Women’s Business Center of Kentucky Lexington 1450 N. Broadway (859) 231-0054 x1003 or (800) 299-0267 wbckentucky.org Director Phyllis Alcorn palcorn@cvky.org Louisville 1812 W. Muhammad Ali Blvd. (859) 977-0107 Director Phyllis Alcorn, palcorn@cvky.org

710 College St. (270) 901-4745

Branch Manager Greg Siegelman bowlinggreen@score-kentucky.org Elizabethtown Counseling Center Elizabethtown Chamber of Commerce 111 W. Dixie Ave. (270) 765-4334 elizabethtown@score-kentucky.org Lexington Chapter #276 389 Waller Ave., suite 130 (859) 231-9902 Chapter Chair David Johnson Tuesdays & Thursdays 1:30-3:30 p.m.

scorelex@gmail.com lexington.score.org London Counseling Center (859) 231-9902 Larry Corum scorelex@gmail.com

New Albany, IN Counseling Center Community Foundation Office Building 4102 Charlestown Road (812) 944-9178 Branch Manager Paul Staashelm 522score@netpointe.com Northern Kentucky Counseling Center Northern Kentucky Chamber of Commerce 300 Buttermilk Pike, suite 330 (513) 684-2812 Bill DiGrezio score@scoreworks.org scoreworks.org

Simpson, and Warren counties Western Kentucky University 2413 Nashville Road, suite 218 (270) 721-2800

Small Business Resource Guide 11

LOCAL BUSINESS ASSISTANCE

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, contact advocacy.sba.gov . To submit a comment about how your business has been hurt by an existing regulation, visit sba.gov/ombudsman/ comments .

Advocacy When you need a voice within the federal government for your interests as a small business owner, SBA advocates are here to assist. They analyze the effects of proposed regulations and consider alternatives that minimize the economic burden on small businesses, governmental jurisdictions, and nonprofits. The office, advocacy.sba.gov , helps with these small business issues: » if your business could be negatively affected by regulations proposed by the government » when you need economic and small business statistics The SBA Office of Advocacy also independently represents small business and advances its concerns before Congress, the White House, and federal agencies.

Ombudsman Entrepreneurs who have an issue with an existing federal regulation or policy receive assistance from the SBA national ombudsman. The ombudsman’s office helps 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 Make your voice heard by participating in a Regional Regulatory Enforcement Fairness Roundtable or a public hearing hosted by the SBA national ombudsman. These events are posted periodically on the ombudsman website, sba.gov/ombudsman .

To submit a comment or complaint through the online form, visit sba.gov/ 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.

12 U.S. Small Business Administration

LOCAL BUSINESS ASSISTANCE

An O’Fallon Casting Inc. employee at work in O’Fallon, MO. General Manager Vince Gimeno grew his business thanks to the Small Business Innovation Research Program.

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

» Business licensing onestop.ky.gov/start/pages/ occupational.aspx » Business zoning & permits onestop.ky.gov/start/pages/ buildingzoning.aspx Name Registration

Builder: Small Business Edition, https:// cbb.census.gov/sbe . 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 choosing a site for your business. Contact the local business license office where you plan to locate your business. You may not be per mitted to conduct business out of your home or engage in industrial activity in a retail district.

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 regulations is as important as knowing your market. Being out of compliance could leave you unprotected legally, lead to expensive penalties, and jeopardize your business. Market Research View consumer and business data for your area using the Census Business

Register your business name with the county clerk where your business is located. If you’re a corporation, also register with the state at onestop.ky.gov . Taxes As a business owner, you should know your federal tax responsibilities and make business decisions to comply with tax requirements. The IRS Small

Small Business Resource Guide 13

LOCAL BUSINESS ASSISTANCE

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

14 U.S. Small Business Administration 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 at (800) 772-1213 or visit socialsecurity.gov/employer . You can file W-2s online or verify job seekers through the Social Security Number Verification Service. change. For the latest tax reform updates that affect your bottom line, visit irs.gov/ tax-reform . » IRS Tax Assistance Centers irs.gov/help/contact-my-local-office- in-kentucky » State Taxes revenue.ky.gov Social Security Business and Self-Employed Tax Center, irs.gov/businesses/small-businesses- self-employed , includes information on paying and filing income tax and finding an Employer ID Number. As the IRS continues to implement some of the Tax Cuts and Jobs Act provisions, your tax obligations may

For the state labor department, visit labor.ky.gov to find information on training, OSHA standards, and required wage and hours workplace posters. Employee Insurance Checkyour state laws tosee if youare required toprovideunemployment orworkers’ compensation insurance for your employees. For health insuranceoptions, call theSmall BusinessHealthOptionsprogramat (800) 706-7893or visit healthcare.gov/small- businesses/employers . Association Health Plans allow small businesses, including self-employed workers, to band together by geography or industry to obtain healthcare coverage as if they were a single large employer. For information, visit dol.gov/general/topic/ association-health-plans . For information on state insurance and employee compensation, visit labor. ky.gov/comp and insurance.ky.gov . For information on Kentucky’s Electronic Workplace for Employment Services, visit kewes.ky.gov . Environmental Regulations State assistance is available for small businesses that must comply with

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 uscis. gov/i-9-central . For forms, see uscis.gov/ forms . For the employer hotline call (888) 464-4218 or email I-9central@dhs.gov. E-Verify is the quickest way for employers to determine the employment eligibility of new hires by verifying the Social Security number and employment eligibility information reported on Form I-9. Visit e-verify.gov , call (888) 464-4218 or email e-verify@dhs.gov. Health & Safety All businesses with employees are required to comply with state and federal regulations regarding the protection of employees, visit employer.gov and dol. gov . The Occupational Safety and Health Administration provides information on the specific health and safety standards used by the U.S. Department of Labor. Call (800) 321-6742 or visit osha.gov .

LOCAL BUSINESS ASSISTANCE

environmental regulations under the Clean Air Act. State Small Business Environmental Assistance programs provide free and confidential assistance to help small business owners understand and comply with environmental regulations and permitting requirements. These state programs can help businesses reduce emissions at the source, often reducing regulatory burden and saving you money. To learn more about these free services visit nationalsbeap.org/states/list . » Environmental Protection Agency Small Business Division epa.gov/resources-small-businesses Accessibility & ADA Compliance For assistance with the Americans with Disabilities Act, call the ADA center at (800) 949-4232 or the Department of Justice at (800) 514-0301. Direct questions about accessible design and the ADA standards to the U.S. Access Board at (800) 872-2253, TTY (800) 993-2822, ta@access-board.gov or visit access-board.gov . Child Support Employers are essential to the success of the child support programand collect 75%of support nationwide through payroll deductions. You’re required to report all new and rehired employees to the State Directory of NewHires. If you have employees in two or more states, youmay register with the Department of Health and Human Services to report all your employees to one state. Find electronic income withholding orders and the Child Support Portal, which can be used to report information to nearly all child support agencies, at acf.hhs.gov/ programs/css/employers . Send questions to employerservices@acf.hhs.gov. » Kentucky Child Support csws.chfs.ky.gov/csws Intellectual Property Patents, trademarks, and copyrights are types of intellectual property that serve to protect creations and innovations. For information and resources about U.S. patents and federally registered trademarks consult uspto.gov , call (800) 786-9199 or visit the Elijah J. McCoyMidwest Regional Office in Alexandria, Virginia.

There are three types of patents: • Utility patents may be granted to anyone who invents or discovers any new and useful process, machine,

Economic Development Advantage Kentucky Alliance Manufacturing Extension Program advantageky.org Kentucky Arts Council & Kentucky Crafted Program artscouncil.ky.gov Kentucky Association of Economic Development kaedonline.org Kentucky Association of Manufacturers kam.us.com Kentucky Innovation kyinnovation.com Kentucky Restaurant Association kyra.org Kentucky Retail Federation kyretail.com

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 servicemark includes any word, name, symbol, device, or any combination, used to identify and distinguish the goods/services of one provider fromothers. Trademarks and servicemarks can be registered at both the state and federal level. 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. Visit uspto.gov/trademarks . » State Trademarks

Think Kentucky: Cabinet for Economic Development thinkkentucky.com

Exporting Assistance U.S. Export Assistance Centers export.gov/kentucky trade.gov/kentucky-louisville trade.gov/kentucky-lexington Louisville Snyder Building 601 W. Broadway, room 634B (502) 582-5066 Lexington 301 E. Main St., suite 110 (859) 225-7001 Office of International Trade 230 Peachtree St. NW, suite 1725 Atlanta, GA (404) 730-2706 Regional Export Finance Manager David Leonard david.leonard@sba.gov sba.gov/offices/regional/iv sba.gov/international State exporting resources thinkkentucky.com/international/ exports.aspx. Kentucky World Trade Center wtcky.org Louisville 444 S. Fifth St., suite 500 (502) 574-1599 Lexington 266 E. Short St., suite 320 (859) 225-0006

Kentucky Secretary of State sos.ky.gov/bus/tmandsm

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 copyright.gov Chambers of Commerce Kentucky Chamber of Commerce Executives kyexecs.com

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LOCAL BUSINESS ASSISTANCE

HOW THE SBA HELPED ME SUCCEED

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

U.S. Navy veteran RobertoOrtiz 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 andmaritime logistical serviceswith the help of his local SBA Veterans Business Outreach Center. VBOCs are the first stop formilitary community entrepreneurs looking to start, grow, or expand a small business. The VBOC located at OldDominionUniversity helpedBert obtain government contracting business certifications. With support fromhis 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.

Opportunities for Veterans

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

For service-disabled veterans Learn how to start and grow a small

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, nationalvip.org . 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 50. Need assistance? Veteran and military entrepreneurs receive business training, counseling, and referrals to other SBA Resource Partners at a Veterans Business Outreach Center, sba.gov/vboc . For veterans business information visit sba.gov/veterans .

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. 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 https://sbavets.force.com . 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 » LiftFund in San Antonio, Texas

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.

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Small Business Resource Guide 17

LOCAL BUSINESS ASSISTANCE

Entrepreneurial Resources

Online Learning Find free short courses and learning tools to start and grow your small business at sba.gov/learning . The SBA’s free Online Learning Center is a great resource for every entrepreneur,

Native American Workshops Native American, Alaska native, and native Hawaiian entrepreneurs are eligible to receive free training on how to start and grow their business from experienced industry leaders in the field of Native American business development. The SBA Office of Native American Affairs, sba.gov/ naa , works with Sister Sky Inc. and RedWind to reach as many locations as possible. Network with native peers and get connected to business assistance in your area. To register for a workshop near you, visit nativesba.sisterskyinc.com or nativesmallbusiness.org .

especially rural business owners looking for easy access to vital business training. Courses include: • writing your business plan • understanding your customer • buying a business • marketing to win customers

• legal requirements • financing options • disaster recovery

Small businesses power our economy.

The SBA powers small businesses.

During these uncertain times, we’re still here for you. Whether you’re in need of financial assistance or reworking your business plan, SBA has your back… because small business is our business.

Contact sba. gov/ky to learn how to move your business forward with confidence.

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LOCAL BUSINESS ASSISTANCE

What business structure is right for you?

CONTROL

CAPITAL

RISK

SOLE PROPRIETORSHIP

Company not taxable Owner subject to self employment tax Owner provides capital

Owner has full control

Personally liable for all debts/obligations

PARTNERSHIPS

Separate and independent from its owners General partners have unlimited liability Limited partners’ liability is limited to what they agree to contribute

Profits are taxed as income based on ownership percentage or other criteria in the partnership agreement General partners have no limits on profit dividends Partners pay self-employment taxes

Limited partnerships can only have 1 general partner, general partners have greater control

LIMITED LIABILITY COMPANY

Members set up LLC agreement

Members are not typically held liable for debts/obligations

Income passes through to members Members may sell interests, but subject to agreement and securities laws may apply

CORPORATIONS

Based off percentage of shares Shareholders elect directors who manage business

Shareholders are not typically held liable for debts/obligations

C corps are taxed at corporate rate and then again if distributed to shareholders in dividends S corps allow profits and some losses to be passed to shareholders’personal income, avoiding corporate tax rate; but not shareholder distributions. Shares of stock are sold to raise capital, securities laws apply

Visit your local SBA office or resource partner for more information on business structures and incorporating. Consult with your tax and/or legal adviser to choose the structure that works best for your business. Visit irs.gov for the latest tax updates and forms.

Small Business Resource Guide 19

LOCAL BUSINESS ASSISTANCE Write your Business Plan Lay the foundation for success with a concise business plan.

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 sba.gov/business-guide/plan/ write-your-business- plan-template

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LOCAL BUSINESS ASSISTANCE

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, such as suppliers, manufacturers, subcontractors, and 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 shar- ing economy? Key Resources List resources you’ll leverage to create value for your customer. Your most important assets include staff, capital, and 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. 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. Explain your projections and match them to your funding requests. If your business is already established, include income statements, balance sheets, and cash flow statements for the last three to five years. List collateral you could put against a loan. 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.

LEAN STARTUP PLAN CHECKLIST

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

❒ Customer segments ❒ Channels ❒ Cost structure ❒ Revenue streams

Small Business Resource Guide 21

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

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FUNDING PROGRAMS

J

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). Your business adviser will help make your business ready for financing. Define your lending needs. Determine if a loan is right for you and if this is the right time. Define your needs. How much do you need? What are you going to use it for? Include this in your business plan. Keep clear records. Track your cash, inventory, accounts payable & receivable, payroll, sales, purchases, loans payable, owners’ equity, and retained earnings. Most lenders will want to see this data, balance sheets, and profit & loss statements for multiple years. Talk to multiple lenders Talk to multiple lenders and see who best matches your business. Lenders have different levels of risk and types of industries they take on. Check all options. SBA Lenders determine if you’re eligible for SBA financing programs based on your industry & experience, collateral, credit score, and the relationship & transparency you develop with the lending agent.

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.

Small Business Resource Guide 23

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