FREE ESSAY ON MARKETING FOR DUMMIES

MARKETING FOR DUMMIES

Executive Summary
In July of 1953 the United States Congress amended an act called the Small Business Act.
Many believed that the essence of the American economic system of private enterprise is
free competition. Also, that only through full and free competition can free markets,
free entry into business, and opportunities for expression and growth of personal
initiative and individual judgment can be assured. Thus, the Small Business Act was
amended. In order to carry out the policies of this Act there was hereby created an
agency under the name Small Business Administration. The United States Small Business
Administration, more commonly known as the SBA, is a federal agency to protect and assist
America's greatest resource, the small business. Since American enterprise is the
backbone of our economy and the driving force behind economic growth and prosperity. 
"The mission of the Small Business Administration (SBA) is to maintain and strengthen the
Nation's economy by aiding, counseling, assisting, and protecting the interests of small
businesses and by helping businesses and families recover from disasters."
The SBA's mission is to create economic development through small businesses. To put it
in simple terms, the SBA helps businesses get started and helps established businesses
grow. 
The SBA has many functions; here we discuss the six of the functions that small
businesses should look at. The first function of the SBA is Business Development, based
on management assistance through information, counseling, training and conferences,
utilizing the following programs: ? Services Corps of Retired Executives (SCORE) ? Small
Business Institutes (SBI) ? Small Business Development Centers (SBDC) ? Business
Information Centers (BIC). The next function, Financial Assistance offers a variety of
financing options to eligible small business concerns that cannot borrow on reasonable
terms from conventional lenders without government help. Financial Assistance is made up
of three different loan categories: ? 7(a) General Business Loan, which is most widely
used. It provides funds for almost any legitimate business purpose. ? Certified
Development Company Loans (504 Program) provide long term, fixed rate financing at
reasonable rates for businesses to grow. ? Other Special Loan Programs include: Micro
loans; Lines of Credit; Contract Loans; Physical Disaster Loans; Direst loans to
veterans, Vietnam, disabled and handicapped individuals, etc. Another function of the SBA
is Investment Capital. This provides small businesses to have money or capital for growth
and finance. The Small Business Investment Capital or SBIC provides the capital.
Developed in 1958, the SBIC wanted to fill the gap between venture capitol and the needs
of small businesses. There are two types of SBIC's, the regular SBIC and the specialized
SBIC. The Procurement Assistance function tries to make sure that small businesses get
their fair pay, goods and services from the federal government. Procurement Assistance
programs include Prime Contracts Assistance, Natural Resources Assistance, Subcontracting
Assistance, COC and PASS programs. The SBA also tries to establish goals for contracting
with small disadvantaged businesses. The last area of focus is Disaster Loans Assistance,
which comes into play for assistance for non-farm, private sector disaster losses.
Most small, independent businesses or individuals starting a business are eligible for
SBA assistance. Because the agency is committed to economic development through small
business, it strives to help business ventures get started, grow and remain profitable.
Many of SBA's clients are new entrepreneurs starting a business for the first time, while
others are young, established companies struggling to meet the challenges of growth and
change in a competitive business environment.
The SBA has more than a hundred offices across the nation and a permanent staff of nearly
four thousand employees. The SBA has an office in nearly every state, for easier access
for future small business owners. On top of it, the SBA increases its ability to help
many small businesses through public or private initiatives. Ninety nine percent of all
U.S. businesses are considered small, and approximate amount of 20 million small
businesses make up 39 percent of the GNP, provide around 50 percent of America's
workforce, and generate 53.5 percent of all sales. Most small, independent businesses or
individuals starting a business are eligible for Small Business Administration
assistance. Since the SBA is committed to economic development through small businesses,
it works to help businesses get started, grow and remain profitable. 
II. Business Development 
SBA's Business Development programs serve as the catalyst for today's small business
growth by providing management, marketing and training information to our nation's
entrepreneurs. This includes individual counseling, courses, conferences, workshops,
problem-solving clinics, a wide range of publications and videos, and SBA On-Line (a
computer-based electronic bulletin board). The Office of Business Initiatives, Education
and Training coordinates these resources, directs technical experts, and provides liaison
and management oversight for the following programs:
A. Services Corps of Retired Executives (SCORE)
For 28 years, more than 12,000 SCORE volunteers have provided free counseling through
SCORE's 390 chapters and 270 satellite offices across the country.
B. Small Business Institutes (SBI)
C. Small Business Development Centers (SBDC)
D. Business Information Centers (BIC)
III. Financial Assistance
A. 7(a) General Business Loan
B. 
The 7(a) Loan Guaranty Program is one of SBA's primary lending programs. It provides
loans to small businesses that are unable to secure financing on reasonable terms through
normal lending places. The program operates through private-sectors lenders that provide
loans that are, in turn, guaranteed by the SBA. The Agency has no funds for direct
lending or grants. Most lenders are familiar with SBA loan programs so interested
applicants should contact their local lender for further information and assistance in
the SBA loan application process. SBA loan programs get the loans as well as the
counseling and training services. This is all offered threw your local SBA office.
The SBA will only lend you certain amounts of money depending on the venture. For the
most part the maximum the SBA will loan is 1,000,000 dollars. But The SBA will only
guarantee seventy five percent of that dollar amount. When applying to your local SBA
office there are certain distinct things that they look for. The repayment ability from
your projected cash flow. The main parts that they also look for during there process is
if you have good character, management capability, and most important is the collateral.

Most small businesses in the modern work environment are eligible for an SBA loan. There
are some businesses that don't qualify, but those are dealt with on a case-by-case
sinaireo. There are four key factors that help determine if you get qualified. They are
the type of business, size of the business, use of the funds loaned, and special
circumstances. The type of business that is eligible is one that is primarily in the
United States. One that operates to make money. The key one is that you are putting in
your own capital also. The SBA has developed size standards for each individual area of
concentration. They have separated them into five distinct areas of concentration. Which
are Retail and services, construction, Agricultural, Wholesale, and manufacturing. For
each individual industry they loan a different amount of money. Because each area has
different circumstances. If you are a retail store and make between 3.5 to 13.5 million
then you are ok. For a construction company 7.0 to 17.0 million, for an agriculture
company you can't have more than one hundred employees. As a manufacture asking for a
loan from the SBA you will need at least 500 employees and no more than 1500 employees.
If you as the borrower are between these guidelines or standards then you should discuss
it with the local SBA office. 
The use of the loan can be used for business operations, construction, renovation or
leasehold improvements, and acquisition of furniture, fixtures, machinery, and equipment
purchase of inventory and or working capital. On a SBA loan the loans maturity is
twenty-five years on real estate, and seven years for working capital. The interest rates
on SBA loans may be fixed or variable. The interest rate on fixed loans will not exceed
prime plus two and one quarter. It may vary a little but not more than 2.75% if the
maturity is seven years. If the small business is only borrowing under twenty five
thousand then the loan can exceed up to 4.25%. And 3.25% for loans Between 25,000 and
50,000. After you get the loan then there are fees that need to be paid. That consist of
processing fees, origination fees, application fees, points brokerage fees, bonus points
and the fees can be divide up into the payments of the duration of the loan.
B. Certified Development Company Loans (504 Program) 
C. Special Loan Programs 
IV. Investment Capital
A. Small Business Investment Capital (SBIC) 
V. Procurement Assistance
A. Prime Contracts Assistance
B. Natural Resources Assistance
C. Subcontracting Assistance
D. COC and PASS programs
VI. Disaster Loan Assistance
During the last forty-two years since the SBA was developed and implemented they started
the disaster loan assistance program. Which intern helps people with funding when a
natural disaster such as hurricanes, floods, earthquakes, tornadoes and other tragedy
damages their home or business? The disaster loans are primarily to help homeowners,
renters, and businesses of all sizes for rebuilding there disrupted home or business. 
When the natural disaster victims need to barrow money to rebuild uninsured damages, it
is a good way to go, when you go to the SBA because of the low interest rates, and
long-term availability from the SBA. The key things about the loans are that they fix
them to your economic standing. Since the SBA was implemented in 1953 the disaster loan
assistance program has approved 1.14 million loans and has loaned out more than 16
billion dollars. The SBA has four distinct offices that deal with disaster loans and they
are located in Sacramento California, Atlanta Georgia, Ft. Worth Texas, and Niagara Falls
New York. The offices are located in very distinct areas of concentration. Due to the
fact of geographical storms or natural disasters. 
VII. Conclusion