SBA helps you through entrepreneurial journey
Across Illinois, small businesses are thriving. Some 1.2 million Illinois small businesses employ 2.4 million people - or 46 percent of the private workforce. Small business owners are delivering innovative solutions, meeting the needs of consumers, and pursuing their own dreams. As the Illinois District Director for the U.S. Small Business Administration, I'm able to see the impact that they're having on their communities, and I'm inspired on a daily basis.
I know the journey isn't easy; in fact, small business ownership can feel especially isolating, as if the challenges you face are not only unique to you, but yours alone to solve.
I'm pleased to tell you nothing could be further from the truth. The U.S. Small Business Administration, a federal agency with a headquarters in Washington, D.C., has an extensive footprint of field offices across the country, including our Illinois District Office in Chicago and a branch office in Springfield. Here are some of the tools, services, and training we provide to help you navigate life as an entrepreneur.
If you're just starting your journey: Whether your small business is an idea that's been percolating for years or you've taken steps to make it a reality, the SBA can answer the questions you're most likely to have in the start up phase.
SCORE - a national organization of experienced executives who provide workshops, one-on-one guidance and mentoring - has dozens of chapters throughout the state. A robust network of Small Business Development Centers coordinated through the state Department of Commerce and Economic Opportunity, as well as Women's Business Centers and Veteran's Business Outreach Centers, also provide services.
Where to start, with all these resources available? Visit sba.gov and click on the "Local Assistance" tab on the top of the page; you'll be instructed to input your ZIP code, and immediately will see a list of service providers near you. Reach out to those that are most convenient and make an appointment; all of our resource partners are eager to answer your questions. If your schedule or location makes an in-person visit impossible, or if you'd like to supplement your one-on-one coaching with broader business lessons, visit our online SBA Learning Center, also at sba.gov, which provides 60 free online classes, tutorials and webinars on topics ranging from social media marketing to how to prepare a loan package. A thorough business guide, at sba.gov/business-guide, will also walk you through the early stages of launching a venture.
If you need to access capital: The SBA doesn't lend money directly to small business owners. Instead, it sets guidelines for loans made by banks, community development organizations, and microlending institutions.
The SBA's guarantee reduces some risk for the lending partners and increases opportunities for small businesses. SBA-guaranteed loans generally have competitive rates and fees, lower down payments, flexible overhead requirements, and no collateral needed in some cases. In Illinois, the SBA approved 2,243 loans, providing more than $1.1 billion to small businesses throughout the state, in Fiscal Year 2017, which ended Sept. 30. The total dollar amount is an all-time high for the district office, a great sign for the health of the small business economy. Small business owners looking for a lender can visit Lender Match, at sba.gov/lendermatch, a free, online referral tool that connects entrepreneurs with participating SBA-approved lenders.
If you're in search of new customers: As your business grows, consider expanding to new markets. U.S. federal government contracts represent a tremendous sales and revenue because the U.S. Government is the world's largest customer and is required by law to provide opportunities for small businesses. Procurement Technical Assistance Centers, or PTACs, throughout the state, as well as certifications and programs such as the SBA's 8(a) Business Development Program, which aids small businesses owned by socially and economically disadvantaged individuals, can help you gain a foothold in the world of contracting.
Additionally, with 95 percent of the world's consumers living outside of the United States, unlocking trade opportunities for small businesses is key to their continued growth, and the SBA can help, providing lenders with up to a 90 percent guaranty on export loans. The State Trade Expansion Program, or STEP, provides financial awards to states to help small businesses enter and compete in the global marketplace. Illinois received an $890,000 award this year to support small business exporting activities, including business-to-business matchmaking, group and individual trade shows, trade mission participation, export training, export compliance and website assistance.
Don't see yourself in any of the above? Visit our website at www.sba.gov/il, text SBA to GOV311 (468311) to receive a link to subscribe for email updates, or attend an in-person or online event. And if you aren't facing challenges at the moment, that's OK, too - we'd still like to hear from you. If you or someone you know has an amazing business success story, submit a nomination for our National Small Business Week Awards. (Details are available at sba.gov/nsbw/awards, and nominations are due by Jan. 9.)
No matter where you are on your entrepreneurial journey, the SBA looks forward to being your partner. Good luck!
• Robert "Bo" Steiner is director of the U.S. Small Business Administration Illinois District.