The Straight Scoop
by Cathy Pokines, Syracuse District, Director of Marketing and Communications

Remember when your first teachers told you that there was no such thing as a stupid question? Well, they were right!

We get many, many great questions every day at SBA. The SBA Answer Desk answers over 3000 questions a week. Here are two questions I get asked at least once a week.

1. Can you tell me about the special programs or grants for women?

Don’t spin your wheels looking for a grant to pay all your start-up costs. In spite of what you have seen on television or hear from friends, there are no government agencies or private foundations handing out free money to pay for all your business start-up costs, even if you are a woman.

Grants awarded for start-up costs are few and far between. Special incentives or small grants may be available from your local municipality or local economic development organization for projects like employee training, façade improvements or utility offsets. Most sizeable grants are awarded to non-profit organizations and a few are given to businesses for research and development.

Think about it, if the government provided free money to everyone who wanted to start a small business, it wouldn’t last very long. And, can you imagine the outcry from taxpayers if their money was used to fund these risky ventures? Most new businesses are started with personal savings, loans from friends or relatives, or small commercial or personal loans.

One reason this ‘free money’ myth is so prevalent is that people are looking for an easy alternative to the work and detail required to get a conventional loan. The idea of writing a business plan and approaching a lender is intimidating. But, you are much more likely to succeed if your homework and have a plan.

There are many good reasons why lenders and SBA have procedures in place for small business loans. One of the most important factors in obtaining a loan for a new business is your personal credit history. Lenders don’t care if you’re male, female, black, white, Asian, Hispanic, young or old. The real bottom line is: Can you pay the money back?

Finally, if you think of money as a product that the bank sells, it is easier to understand that you have to pay for it. You would never go into a store and expect to walk out with a refrigerator for free. You may really need the refrigerator to keep your food fresh so that your family can eat, but you still must pay for it. The same holds true for a loan!

2. How do I get certified as a woman-owned business?

The certification process varies from state-to-state and the federal government requires only a self-certification. Certification takes some time, and you may need some guidance along the way, but it is worth it in the long run if you get some additional business.

First, ask yourself why do you want to be certified? There is no need to be certified as a woman-owned business if you are not planning on selling your products and services to larger companies or the government
If you want to sell to the government or large businesses that do sub-contracting, there are advantages for woman-owned businesses and you can participate in them by becoming certified. Primarily, certification at the state and federal level is a marketing tool to reach state/federal agencies and prime contractors, who need to purchase from women-owned businesses.

New York State Certification
Certification as a Minority or Woman Business Enterprise (MWBE) is handled though the NYS Department of Economic Development, Division of Minority and Women Business Development. To apply, you must be in business at least one year, your business must be at least 51% woman-owned and the woman owner must independently control day-to-day business decisions. There is a wealth of information on the Empire State Development website at www.empire.state.ny.us, but to get right to the Division of Minority and Women’s Business Development, go to http://www.nylovesbiz.com/Small_and_Growing_Businesses/mwbe.asp

At the bottom of the page, you can download the 17-page application. It can not be completed and submitted online. Mail it to the NYSDED, Division of Minority and Women’s Business Development, 30 South Pearl St., Albany, NY 12245. Verifying the application can take up to six months. You will be interviewed by phone or at your business. The decision to grant or withhold WBE status is based on an analysis of your application, documents submitted and the interview. For assistance completing the application call the Division of Minority and Women’s Business Development at (518) 292-5250.

Federal Government
There is no certification procedure for women-owned businesses that want to do business with the Federal Government. However, you can register your self-certification as a women-owned business in SBA’s PRO-Net database. PRO-Net is SBA’s online Procurement and Marketing and Access Network. It is free and is used extensively by federal agencies and large contractors that are looking for small business contractors, subcontractors and/or partnership opportunities. Make sure you provide a full profile of your business and update your site at least every 18 months. Access the PRO-Net site at www.pro-net.sba.gov. SBA offers three small business certification programs that can certify qualified, women-owned business to receive procurement preference points, giving you an advantage in the bidding process. These programs, Small Disadvantaged Businesses (SDB), the 8(a) program and the HUBZone program have different requirements, including number of years in business, social or economic disadvantage and geographical location.

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