Glossary Of Small Business Terms part 43

procurement and the Internet, as well addressing specialized topics such as home-based businesses, corporate executive downsizing and welfare-to-work. All provide individual business counseling and access to the SBA’s programs and services; a number are also intermediaries for the SBA’s MicroLoan and Loan Prequalification programs. Each WBC tailors its programs to the needs of its constituency; many offer programs and counseling in two or more languages. The following is contact information and a brief description of each WBC. Choosing More... will take you to a complete listing.

WBOR Women's Business Ownership Representatives Representatives in SBA offices to assist women business owners.

WEB STANDARDS AND GUIDELINES SBA has extensive standards and guidelines for publishing on the SBA internet sites. Choosing More... will take you to this policy.

WNET Women's Network for Entrepreneurial Training Women's Network for Entrepreneurial Training, is a program of the SBA's Office of Women's Business Ownership. WNET matches successful entrepreneurial women (mentors) with women business owners whose companies are ready to grow (protégées

WORKERS' COMPENSATION A state-mandated form of insurance covering workers injured in job-related accidents. In some states the state is the insurer; in other states insurance must be acquired from commercial insurance firms. Insurance rates are based on a number of factors including salaries, firm history and risk of occupation.

WORKING CAPITAL Cash and short-term assets that can be used for current needs - bills, etc.

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Glossary Of Small Business Terms part 42

UNIFORM COMMERCIAL CODE Codification of uniform laws concerning commercial transactions. In SBA parlance generally refers to a uniform method of recording and enforcing a security interest or charge upon existing or to be acquired personal property.

USURY Interest which exceeds the legal rate charged to a borrower for the use of money.

VARIABLE COSTS Those costs of doing business such as cost of goods, shipping, handling and storage, sales commissions, etc., which are directly related to the sales of goods or services.

VENDOR IDENTIFICATION PROGRAM (VIP) The Vendor Identification Program (VIP) assists small businesses by identifying government purchasers for the items they produce for large defense contractors. The program helps SBA to increase competition by adding qualified sources to bidder lists and creating prime contracting opportunities for small businesses. Through the Vendor Identification Program, SBA matches the past procurement history and acquisition needs of the government and identifies the actual manufacturer of systems, subsystems, components, and spare parts. This expedites the procurement process and facilitates the participation of small businesses as prime contractors.

VENTURE CAPITAL Money used to support new or unusual commercial undertakings; equity, risk or speculative capital. This funding is provided to new or existing firms that exhibit above-average growth rates, a significant potential for market expansion and the need for additional financing for business maintenance or expansion.

VSB Very Small Business Program The Very Small Business (VSB) program is an extension of the small business set-aside program, administered by SBA as a pilot to increase opportunities for VSB concerns. Procurement requirements, including construction requirements, estimated to be between $2,500 and $50,000 must be reserved for eligible VSB concerns in designated pilot SBA districts.

WAIVER OF THE NONMANUFACTURER RULE Section 303 (h) of Public Law 100-656 and Section 210 of Public Law 101-574 incorporated into the Small Business Act requires that agency contracts be directed solely to small business manufacturers under set-aside provisions. This requirement is commonly referred to as the Non-manufacturer Rule. The Small Business Act also contains provisions that allow the Administrator of the SBA to waive this requirement when there are no small business manufacturers or processors available to supply the product to the Federal Government.

WBC Women's Business Centers or Women's Business Center Each women’s business center provides assistance and/or training in finance, management, marketing,

Glossary Of SmallBusiness Terms part 43

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Glossary Of Small Business Terms part 41

specific tax rules and guidelines. Choosing "More..." will take you to this site. T-BILLS Treasury Bills Short term obligations of the U.S. government.

TECH-NET Tech-Net is an electronic gateway of technology information and resources for and about small high tech businesses. It is a search engine for researchers, scientists, state, federal and local government officials, a marketing tool for small firms and a potential "link" to investment opportunities for investors and other sources of capital.

TRADE NAME The term used to identify a company. Any type of business may call itself a company.

TRADEMARK Words, names, symbols or devises, or any combination of these, used to identify the goods of a business and to distinguish these goods from the goods of others.

TRANSACTION BALANCES Cash held to cover day-to-day transactions.

TREASURY BILLS T-Bills Short term obligations of the U.S. government.

TRUE LEASE A type of transaction that qualifies as a lease under the Internal Revenue Code. It allows the lessor to claim ownership and the lessee to claim rental payments as tax deductions.

TURNOVER Turnover is the number of times that an average inventory of goods is sold during a fiscal year or some designated period. Care must be taken to ensure that the average inventory and net sales are both reduced to the same denominator; that is, divide inventory at cost into sales at cost into sales at cost or divide inventory at selling price into sales at selling price. The turnover when accurately computed, is one measure of the efficiency of a business.

U.S. EXPORT ASSISTANCE CENTERS (USEACS) USEACs offer a full range of federal export programs and services from a number of federal agencies under one roof. Find your closest USEAC at SBA's International Trade website.

UNDELIVERED ORDERS The amount of orders for goods and services outstanding for which, the liability has not yet accrued. For practical purposes represents obligations incurred for which goods have not been delivered or services not performed.

UNFAIR LABOR PRACTICE Action by either the employer or the union which violates the provisions of Executive Order 11491 as amended.

Glossary Of SmallBusiness Terms part 42

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Glossary Of Small Business Terms part 40

least 51 percent of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and whose management and daily business is controlled by one or more such individuals.

SOLVENCY The financial ability to continue business.

SOPs Standard Operating Procedures.

SPECULATIVE CASH BALANCES Cash necessary to take advantage of special opportunities.

STANDARD INDUSTRIAL CLASSIFICATION (SIC) CODE A code representing a category within the Standard Industrial Classification System administered by the Statistical Policy Division of the U.S. Office of Management and Budget. The system was established to classify all industries in the US economy. A two-digit code designates each major industry group, which is coupled with a second two-digit code representing subcategories.

STARTUP, or START UP or STARTUP KIT SBA maintains a generic startup kit and in many cases, startup kits for beginning a business in given states.

STTR Small Technology Transfer Program See Small Business Technology Transfer Program.

SUBCONTRACT A contract between a prime contractor and a subcontractor to furnish supplies or services for the performance of a prime contract or subcontract.

SUBCONTRACTING OPPORTUNITIES Select More... below.

SURETY BOND A three-way agreement between a surety company, a contractor and the project owner. If the contractor fails to comply with the contract, the surety assumes responsibility and ensures that the project is completed. By law, prime contractors to the federal government must post surety bonds on federal construction projects valued at $25,000 or more. Many state, county, city and private-sector projects require bonding as well. The SBA can guarantee bid, performance and payment bonds for contracts up to $1.25 million for small businesses that cannot obtain bonds through regular commercial channels. Bonds may be obtained in two ways: prior approval-contractors apply through a surety bonding agent. The guaranty goes to the surety; and preferred Sureties—preferred sureties are authorized by the SBA to issue, monitor and service bonds without prior SBA approval.

TAX or TAXES The contribution required of persons, groups, or businesses within a governmental jurisdiction for the support of governmental programs. Springtime brings a flood of questions about State taxes. We have compiled a list of State sites and their

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Glossary Of Small Business Terms part 39

locations at http://www.sba.gov/gopher/Local-Information/Small-Business-Development-Centers/).

SMALL BUSINESS INNOVATION RESEARCH (SBIR) CONTRACT A type of contract designed to foster technological innovation by small businesses with 500 or fewer employees. The SBIR contract program provides for a three-phased approach to research and development projects: technological feasibility and concept development; the primary research effort; and the conversion of the technology to a commercial application.

SMALL BUSINESS INVESTMENT ACT It is declared to be the policy of the Congress and the purpose of this Act to improve and stimulate the national economy in general and the small-business segment thereof in particular by establishing a program to stimulate and supplement the flow of private equity capital and long-term loan funds which small business concerns need for the sound financing of their business operations and for their growth, expansion, and modernization, and which are not available in adequate supply: Provided, however, That this policy shall be carried out in such manner as to insure the maximum participation of private financing sources.

SMALL BUSINESS INVESTMENT COMPANY (SBIC) SBICs, licensed by the Small Business Administration, are privately owned and managed investment firms. They are participants in a vital partnership between government and the private sector economy.

With their own capital and with funds borrowed at favorable rates through the Federal Government, SBICs provide venture capital to small independent businesses, both new and already established.

SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM (STTR) STTR is an important new small business program that expands funding opportunities in the federal innovation research and development arena. Central to the program is expansion of the public/private sector partnership to include the joint venture opportunities for small business and the nation's premier nonprofit research institutions. STTR's most important role is to foster the innovation necessary to meet the nation's scientific and technological challenges in the 21st century.

SMALL DISADVANTAGED BUSINESS (SDB) SBA certifies SDBs to make them eligible for special bidding benefits. SDBs are at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged. This can include a publicly owned business that has at least 51 percent of its stock unconditionally owned by one or more socially and economically disadvantaged individuals and whose management and daily business is controlled by one or more such individuals.

SMALL DISADVANTAGED BUSINESS CONCERN A small business concern that is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged. This can include a publicly owned business that has at

Glossary Of SmallBusiness Terms part 40

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Glossary Of Small Business Terms part 38

SELLING A BUSINESS Selling a business is different than selling any other asset because a business is more than an income-earning asset -it is a life-style as well. Therefore, the decision to sell can be emotional. Personal ambitions should be weighed against economic consequences in reaching a decision.

SERVICE MARK A word, name, symbol or device used to identify and distinguish a business that provides services rather than goods. Like a trademark, it can be registered.

SET-ASIDE CONTRACT A "set-aside" is a Federal contract designated for small business bidding only.

SHAREWARE Free or evaluation copies/links for use in your business.

SHORT TERM Period usually one year or less.

SIGNAGE Effective signage is a critical component of your retail business' success, and can contribute to the success of all businesses. To provide in depth information about signage and your business, we have divided signage information into categories in our Signage web area. After you've studied these pages, we recommend you include proper signage in the financial plans for your business. Effective signage is a key asset you'll need to become successful. Why should I have a sign? is a question often asked by business owners. The answer will vary depending on your business type and format. In a highly impulse oriented business, good signage can be the difference between the success or failure of the business. The profile of your trade area also impacts your signage needs. Good signage can increase a business's opportunity for success.

SIMPLE INTEREST RATE LOAN One which provides the borrower the face value of the loan; the borrower repays the principal plus interest at maturity.

SIZE STANDARDS The term "size standard" describes the numerical definition of a small business. In other words, a business is considered "small" if it meets or is below an established "size standard."

SMALL BUSINESS A business smaller than a given size as measured by its employment, business receipts, or business assets.

SMALL BUSINESS ACT Also see http://www.sba.gov/library/lawroom.html

SMALL BUSINESS DEVELOPMENT CENTER (SBDC) The SBDC is a center for the delivery of joint government, academic and private sector services for the benefit of small business and the national welfare. It is committed to the development and productivity of business and the economy in specific geographical regions. (See

Glossary Of SmallBusiness Terms part 39

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Glossary Of Small Business Terms part 37

and already established. Selecting More... will take you to the SBIC (Office of Investment) home page.

SBIC Locations Selecting More... will take you to SBIC locations by State.

SBIR Small Business Innovative Research See Small Business Innovation Research

SBIR CONTRACT Small Business Innovative Research Contract A type of contract designed to foster technological innovation by small businesses with 500 or fewer employees. The SBIR contract program provides for a three-phased approach to research and development projects: technological feasibility and concept development; the primary research effort; and the conversion of the technology to a commercial application.

SCORE SCORE is a 10,500-member volunteer association sponsored by the SBA.

SCORE matches volunteer business-management counselors with present prospective small business owners in need of expert advice. The SCORE home page is located at

 http://www.score.org.

SCORE Locations See SCORE. Selecting More... will take you to SCORE locations listed by State.

SDB Small Disadvantaged Business See Small Disadvantaged Business. SDB Program While the 8(a) Business Development Program (above) offers a broad scope of assistance to socially and economically disadvantaged firms, SDB certification strictly pertains to benefits in federal procurement. 8(a) firms automatically qualify for SDB certification. SBA certifies SDBs to make them eligible for special bidding benefits.

Evaluation credits available to prime contractors boost subcontracting opportunities for SDBs.

SECONDARY MARKET Entities who purchase an interest in a loan from an original lender, such as banks, institutional investors, insurance companies, credit unions and pension funds. There is an active secondary market in the loans guaranteed by the Small Business Administration. This market was created to increase the attractiveness of small business lending to the lending community. Through the market, lenders are able to sell the guaranteed portion of SBA guaranteed loans to investors and thereby improve their liquidity and increase their yield on the unguaranteed portion of SBA loans. In addition, the secondary market provides a hedge against future liquidity problems because the guaranteed portion of an SBA guaranteed portfolio may be readily sold by the lender. The market also allows a lender to meet the credit needs of a local small business community by importing capital from other parts of the country.

Glossary Of SmallBusiness Terms part 38

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