San Antonio—Central South Texas Edition 2020—U.S. Small Bus…

Small Business resource guide SAN ANTONIO— CENTRAL SOUTH TEXAS 2020





San Antonio—Central South Texas Edition 2020

Local Business Assistance

Funding Programs

8 Local Success Story

24 National Success Story Jennifer and Jeff Herbert’s meadery has expanded into a multimillion dollar enterprise thanks to SBA assistance. 27 SBA Lenders 32 Need Financing?

With the help of SBA-backed financing, JaeKim’s entrepreneurial dream expanded across Austin.

11 Local SBA

Resource Partners

13 Your Advocates 14 How to Start a Business 18 Entrepreneurial Resources 19 Emerging Leaders 20 Opportunities for Veterans 22 Write Your Business Plan

33 Financing 101 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 Jae Kim, courtesy of the SBA; Jennifer and Jeff Herbert, courtesy of Superstition Meadery; September Myres, courtesy of the Sundance Consulting; Frank Spencer III, courtesy of Aztec Contractors



I t is my honor to serve as Washington, and in communities across America—that is laser-focused on helping entrepreneurs recover from the impacts of the COVID-19 pandemic. The SBA is here to support our nation’s small businesses by providing timely economic relief and access to invaluable resources for planning, launching, and expanding small businesses. America’s entrepreneurs are innovators and risk- takers. They are the catalyst for employment Administrator of the U.S. Small Business Administration, leading a team of dedicated professionals—in opportunities within their communities. During these unprecedented times, I am confident the small business sector will once again propel our economy to prosperity, just as it has over the last three years. As a member of the President’s cabinet, I am honored to be the voice for America’s 30 million small businesses, advocating on behalf of every entrepreneur. Whether it’s seeking assistance with economic disaster recovery, access to capital, government contracting opportunities, or business mentoring, 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 underserved markets, 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




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PUBLISHER Nikki Bowman,

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MANAGING EDITOR Holly Leleux-Thubron,




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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 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.

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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 San Antonio District Office Hipolito F. Garcia Federal Federal Building 615 E. Houston St., suite 298 San Antonio, TX 78205 (210) 403-5900 @SBA_SanAntonio

District Director Letter W elcome to the 2020-2021 edition of the U.S. Small within central south Texas. Texas offers businesses across all industries one of the best business climates in the nation. 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, or recover after a disaster. The SBA San Antonio District Office works with an extensive network of business advisors and lenders to help Texas’s 2.7 million small businesses at every stage of development. Across our district in the last year, we empowered small businesses within our district to: Business Administration’s San Antonio District Office Small Business Resource Guide covering the 55 counties • Find a business adviser or mentor. To get started, visit our SBA office or one of our SBA Resource Partners, starting on page 9, where you will find listings for free or low-cost business advisers, which includes Small Business Development Centers, SCORE mentors, Women’s Business Centers, and the Veterans Business Outreach Center. • Access nearly $425 million in SBA-guaranteed loans using 119 local lenders. The small businesses that qualified for our programs then went on to add over 4,000 new jobs. Find out if SBA backed financing is right for you by consulting with an SBA specialist at one of our partner lending institutions, listed in the green Funding Programs section. • Recover after a declared disaster with over $60 million from SBA disaster assistance loans. This guide also details disaster assistance loans and SBA-backed loans exclusively for small business exporting. • Secure prime contracting opportunities, training and technical assistance. Many San Antonio area entrepreneurs benefited from gaining more than $4.4 billion in federal contracting awards. If you are interested in getting started in government contracting, read about SBA certifications and our business development programs. SBA programs and services help you better compete in the public marketplace. Stay up to date on SBA events near you and get valuable Texas business information by following us @SBA_SanAntonio. As our community continues its recovery from the health, social, emotional and economic effects of the Coronavirus pandemic, we hope you know you can continue to count on SBA for small business assistance. We're in this together.

Deputy District Director David Elizondo (210) 403-5926 x386 Administrative Officer Ashley Morales (210) 403-5903 x357 Public Affairs Specialist Nina Ramon (210) 403-5920 x327 Program Support Assistant Daniel Del Rossi (210) 403-5900 x321 District Counsel Kelle Acock (210) 403-5914 x325 Lead Lender Relations Specialist Cindy Solano (210) 403-5919 x338 Lender Relations Specialists Lionel “Leo” Davila (210) 403-5917 x322 Annie Hudspeth (210) 403-5918 x333

Lead Business Development Specialist Theresa Scott (210) 403-5929 x372 Business Development

Specialists Don Owens

(210) 403-5912 x382 Eric Spencer

(210) 403-5940 x352 Cell (210) 371-7745 SBA Office of Government Contracting Procurement Center Activities supported: Department of Defense contracting activities located in San Antonio, Dyess AFB, Goodfellow AFB, Laughlin AFB, Sheppard AFB, and Texas Army National Guard, Austin, TX. Representative Sheena L. Little (210) 403-5909


SBA San Antonio District Office



Jae Kim Owner, Chi’Lantro Austin, TX How I Did It




ith the help of SBA-backed financing, Jae Kim’s entrepreneurial dream expanded

financing he needed with the right terms, even though his revenue grew since he first opened in 2010 and he was creditworthy. The SBA Solution Jae says business collaboration gave him the ingredients he needed to succeed. “I hired the right people, I listened to them, I learned and brought ideas to collaborate”, he says. “Then we started growing.” With that business growth, earned through time and diligent record keeping, he was able to qualify for SBA-backed financing. The SBA guarantees loans made by lending institutions to small businesses that cannot find conventional financing elsewhere. With this foundation for success, he started his restaurant chain. What was the benefit? The SBA gave Jae the boost he needed to achieve his vision of becoming a top Korean barbecue brand in central south Texas. Using his SBA-backed 7(a) loan, Jae opened six more locations,

employing 120 people full time. Jae says the SBA helped him achieve double digit percentage sales year over year. His advice to other young entrepreneurs: “Dream Big. Write a plan. Execute the details. Don’t give up. Be willing to listen, learn, and adapt at all times.”

across Austin. His Korean barbecue concept, known for its kimchi fries and Korean barbecue inspired bowls, can now be found in seven popular locations around Austin. The Challenge Jae needed the business guidance to get him to the place where he could qualify for financing. In the beginning, he maxed out his credit cards and pulled from his savings to start a food truck. He had never served food from a truck, much less driven one. He also didn’t expect to have such a slow start to the business–his first day of sales was only $7. So Jae wondered how he was ever going to save the money to open a brick and mortar. It can be difficult for small businesses, especially those in the food industry, to secure capital to expand. Jae wasn’t able to find the

Jae says business

collaboration gave him the ingredients he needed to succeed.



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 Small Business Development Centers

Angelo State University SBDC Serving Concho, Crockett, Irion, Kimble, Mason, McCulloch, Menard, Schleicher, Sutton, and Tom Green counties 69 N. Chadbourne St. San Angelo (325) 942-2098 Del Mar College SBDC Serving Brooks, Duval, JimWells, Kenedy, Kleberg, Live Oak, McMullen, Nueces, and San Patricio counties 3209 S. Staples St., CED 146 Corpus Christi (361) 698-1021 El Paso Community College SBDC Serving El Paso and Hudspeth counties 9050 Viscount Blvd., building B, suite B-520 El Paso (915) 831-7743 SBDC International Trade Center 501 W. Cesar E. Chavez Blvd. San Antonio (210) 458-2470 SBDCNet National Information Clearinghouse 501 W. Cesar E. Chavez Blvd. San Antonio (210) 458-2747 or (800) 689-1912 SBDC Technology Commercialization Center 501 W. Cesar E. Chavez Blvd. San Antonio (210) 458-2745

South-West Texas Border SBDC Network Office Regional/Lead Center 501 W. Cesar E. Chavez Blvd. San Antonio (210) 458-2450 Sul Ross State University-Big Bend SBDC Serving Brewster, Culberson, Jeff Davis, Pecos, Presidio, and Reeves counties Centennial School Building 500 W. Avenue H Alpine (432) 837-8694 Sul Ross State University-Rio Grande College SBDC Serving Dimmit, Edwards, Kinney, LaSalle, Maverick, Real, Uvalde, Val Verde, and Zavala counties 3107 Bob Rogers Drive Eagle Pass (830) 758-5022 Texas A&M International University SBDC Serving JimHogg, Webb, and Zapata counties

Arthur and Sandra Johnson, owners of 21 Short Stop in Georgia, received assistance from their local Small Business Development Center and SCORE chapter. University of Houston– Victoria SBDC Serving Aransas, Bee, Calhoun, DeWitt, Goliad, Gonzales, Jackson, Karnes, Lavaca, Refugio, and Victoria counties Victoria Tower 1908 N. Laurent St., fourth floor (361) 485-4485 University of Texas–Rio Grande Valley SBDC Serving Cameron, Hidalgo, Starr, and Willacy counties CESS Building 1407 E. Freddy Gonzalez Drive, suite 1.200 Edinburg (956) 665-7535 Serving Atascosa, Bandera, Bexar, Comal, Frio, Gillespie, Guadalupe, Kendall, Kerr, Medina, and Wilson counties 501 W. Cesar E. Chavez Blvd., suite 2.312 (210) 458-2460 UTSA SBDC Center for Government Contracting 501 W. Cesar E. Chavez Blvd., suite 2.112 San Antonio (210) 458-2458 University of Texas at San Antonio SBDC

Sue and Radcliffe Killam Library 5201 University Blvd., KLM-321 Laredo (956) 326-2827 Texas State SBDC

Serving Bastrop, Blanco, Burnet, Caldwell, Fayette, Hays, Lampasas, Lee, Llano, San Saba, Travis, and Williamson counties Centennial Towers 505 E. Huntland Drive, suite 460 Austin (512) 420-9379



SCORE Visit to start working on your business goals. Contact your local office to schedule an appointment. Austin Chapter #249 Westland Office Park 5524 Bee Caves Road, building M #100 (512) 928-2425 To request a meeting, visit content/austin-score-mentoring-locations Mentoring locations: Austin 15501 Ranch Road 620 N., suite 800 Bastrop 410 Technology Drive Dripping Springs Chamber of Commerce 509 W. Mercer St. Georgetown Chamber of Commerce 100 Stadium Drive Leander Chamber of Commerce 100 N. Brushy Marble Falls Chamber of Commerce 916 Second St. Round Rock Public Library 216 E. Main St. San Marcos Chamber of Commerce 202 N. C.M. Allen Parkway (913) 909-6223 or (512) 878-6318 San Antonio Chapter #164 Hipolito F. Garcia Federal Building 615 E. Houston St., suite 293 (210) 403-5931 Mentoring locations: San Antonio Central Library (LaunchSA) 600 Soledad St.

Women’s Business Center LiftFund Women’s Business Center Serving Atascosa, Bandera, Bexar, Comal, Frio, Gillespie, Guadalupe, Karnes, Kendall,

Kerr, McMullen, Medina, and Wilson counties Central Public Library (inside LaunchSA) 600 Soledad St. San Antonio (888) 215-2373 x3000

(210) 403-5931 or (210) 207-2500 Kerrville Chamber of Commerce (Thursdays and Fridays) 1700 Sidney Baker, unit 100 (830) 896-1155 Schertz Public Library (Fridays) 798 Schertz Parkway

O'Connor Belting, a Delaware family-owned business, expanded with the help of an SBA-guaranteed 7(a) loan.

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. UTRGV Veterans Business Outreach Center CESS Building 1407 E. Freddy Gonzalez Drive, suite 1.200 Edinburg (956) 665-8931



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 . To submit a comment about how your business has been hurt by an existing regulation, visit 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, , 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, .

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.

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

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 permitted to conduct business out of your home or engage in industrial activity in a retail district. Specific professions require state level licenses and can be found at the Texas Department of Licensing andRegulation, visit .

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 Builder: Small Business Edition,



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.

of goods, and services that are expressly enumerated as taxable under the Texas Tax Code. For more information on how to apply for a Texas sales tax permit, visit . To find out more about Texas Franchise Tax, including information on exemptions, visit window. . Business Inventory Tax (also known as, property tax or ad valorem tax) is assessed and collected by your local county appraisal district. 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 at (800) 772-1213 or visit . 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

Name Registration Register your business namewith the county clerkwhere your business is located. If you’re a corporation, also register with the state. Many county clerk offices will provide a name search service for a nominal fee. The whole search process will often be taken care of through the mail. Please contact the local county clerk for verification of their process. Taxes As a business owner, you should know your federal tax responsibilities and make business decisions to comply with tax requirements. The IRS Small Business and Self-Employed Tax Center, , 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 change. For the latest tax reformupdates that affect your bottom line, visit . » State Taxes Texas imposes a sales tax on all retail sales, leases and rentals



The Texas Workforce Commission administers Texas’s Unemployment tax. The Unemployment Tax program collects wage information and unemployment taxes from employers subject to the Texas Unemployment Compensation Act. The Texas Workforce Commission uses three employment categories: regular, domestic, and agricultural. Employer tax liability differs for each type of employment, visit Check 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 healthcare. gov/small-businesses/employers . AssociationHealth Plans allowsmall businesses, including self- employedworkers, to band together by geography or industry to obtain healthcare coverage as if theywere a single large employer. For information, visit plans . Texas doesn’t requiremost private employers to haveworkers’ compensation insurance. Although private employerswho contract with the government are required to provideworkers’ compensation coverage for each employeeworking on the public project. Some private clientsmay also require their contractors to haveworkers’ compensation insurance. Environmental Regulations State assistance is available for small businesses that must comply with 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 bemp/unemployment-tax.html . Employee Insurance businesses reduce emissions at the source, often reducing regulatory burden and saving you money. To learn more about these free services visit . » Environmental Protection Agency Small Business Division has resources specifically tailored to help small businesses and local governments comply with environmental regulations which provide free, confidential assistance to help small business owners understand and comply with complex environmental regulations and permitting requirements. 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, or visit . Child Support Employers are essential to the success of the child support program and collect 75% of support nationwide through payroll deductions. You’re required to report all new and rehired employees to the State Directory of New Hires. If you have employees in two or more states, you may register with the Department of Health and Human

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.

Verification Form I-9. The U.S. Citizenship and Immigration Service offers information and assistance through central . For forms, see . For the employer hotline call (888) 464-4218 or email 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 , 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 and . 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 .



Austin Asian Chamber (512) 407-8240 Del Rio (830) 775-3551 Greater Austin Black Chamber

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 . Send questions to 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 , call (800) 786-9199 or visit the Texas Regional Office in Dallas, Texas, . 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 . » State Trademarks 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 they may 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 Chambers of Commerce Alamo Asian American Chamber (210) 802-6937 Alamo City Black Chamber (210) 486-2125

(512) 459-1181 Laredo (956) 722-9895 San Angelo

(325) 655-4136 San Antonio Hispanic Chamber (210) 255-0462 San Antonio LGBT Chamber (210) 504-9429 San Antonio Women’s Chamber (210) 299-2636 San Marcos area (512) 393-5900 Victoria (361) 573-5277 Women’s Chamber (512) 338-0839 Economic Development Exporting Assistance SBDC International Trade Center 501 W. Cesar E. Chavez Blvd. San Antonio (210) 458-2470 Texas Economic Development Corporation & Governor’s Office of Economic Development (512) 936-0100



Entrepreneurial Resources

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 Learning Find free short courses and learning tools to start and grow your small business at . The SBA’s free 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 • understanding your customer • buying a business • marketing to win customers

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

• legal requirements • financing options • disaster recovery

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 for growth and expansion. 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.

Native American Workshops Tribal enterprises and business organizations can receive entrepreneurial 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 .



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 .



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, such as suppliers, man- ufacturers, 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 sharing 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.


❒ 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

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.

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.

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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