Glossary Of Small Business Terms part 36

evaluated. Negotiations may be conducted with offers. Award is based on a combination of lowest price and technical merit.

RFQ Request for Quotation A request for market information by the government, used for planning purposes.

SBA Small Business Administration An independent agency of the federal government and not to be confused with Small Business Association or variations thereof. The U.S.

Small Business Administration (SBA) was created by Congress in 1953 to help America's entrepreneurs form successful small enterprises. Today, SBA's program offices in every state offer financing, training and advocacy for small firms. These programs are delivered by SBA offices in every state, the District of Columbia, the Virgin Islands and Puerto Rico. In addition, the SBA works with thousands of lending, educational and training institutions nationwide.

SBA EXPORT EXPRESS SBA Export Express combines the SBA’s small business lending assistance with its technical assistance programs to help small businesses that have traditionally had difficulty in obtaining adequate export financing. The pilot program is available throughout the country and is expected to run through September 30, 2005

SBA LOAN The SBA enables its lending partners to provide financing to small businesses when funding is otherwise unavailable on reasonable terms by guaranteeing major portions of loans made to small businesses.

SBA LOWDOC SBA LowDoc streamlines the making of small business loans. The maximum loan-$150,000. Calls for a response from the SBA within 36 hours of receiving a complete application. Guaranty percent follows 7(a) policy.

SBAExpress The SBAExpress Makes it easier and faster for lenders to provide small business loans of $150,000 or less; allows lenders to use their own forms and processes to approve loans guaranteed by the U.S. Small Business Administration; provides a rapid response from the SBA within 36 hours of receiving your complete application; lets lenders take advantage of electronic loan processing; and helps lenders provide smaller revolving loans.

SBDC Small Business Development Centers See Small Business Development Center.

SBIC Small Business Investment Company Licensed by the Small Business Administration, SBICs 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

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REGFAIR The Oversight of Regulatory Reform provision of the Act created the National Ombudsman and 10 Regional Fairness Boards to provide small businesses with the opportunity to comment on enforcement activity by federal regulatory agencies. Through

this provision, Congress and the President have provided a way that small businesses can meaningfully participate in the regulatory process by establishing a forum in which to express their views and share their experiences about federal regulatory activity.

REGULATORY FAIRNESS The Oversight of Regulatory Reform provision of the Act created the National Ombudsman and 10 Regional Fairness Boards to provide small businesses with the opportunity to comment on enforcement activity by federal regulatory agencies. Through this provision, Congress and the President have provided a way that small businesses can meaningfully participate in the regulatory process by establishing a forum in which to express their views and share their experiences about federal regulatory activity.

REGULATORY FLEXIBILITY ACT (RFA) The Regulatory Flexibility Act (5 U.S.C. 601- 612) requires federal agencies to consider the effects of their regulatory actions on small businesses and other small entities and to minimize any undue disproportionate burden. The chief counsel for advocacy of the U.S. Small Business Administration is charged with monitoring federal agencies' compliance with the act and with submitting an annual report to Congress.

REQUEST FOR PROPOSAL (RFP) A solicitation issued by the government to prospective offerors. An RFP describes what the government requires and how the offerors will be evaluated. Negotiations may be conducted with offers. Award is based on a combination of lowest price and technical merit.

REQUEST FOR PROPOSALS Solicitations for offerings for competitive negotiated procurements when it is impossible to draft an invitation for bids containing adequate detailed description of the required property and services. There are 15 circumstances in the Federal Acquisition Regulations (FAR) which permit negotiated procurements.

REQUEST FOR QUOTATION (RFQ) A request for market information by the government, used for planning purposes.

RETURN ON INVESTMENT The amount of profit (return) based on the amount of resources (funds) used to produce it. Also, the ability of a given investment to earn a return for its use.

REVOLVING CREDIT ACCOUNT A formal line of credit offered to larger businesses in exchange for up-front fees and standard interest payments.

RFP Request for Proposal A solicitation issued by the government to prospective offerors. An RFP describes what the government requires and how the offerors will be

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protégé relationships and small business contracting opportunities. One registration is all that is needed to make your business available to both opportunities!

PROTEST A statement in writing by any bidder or offeror on a particular procurement alleging that another bidder or offeror on such procurement is not a small business concern.

PTACs Procurement Technical Assistance Centers The Defense Logistics Agency, on behalf of the Secretary of Defense, administers the DoD  Procurement Technical Assistance (PTA) Cooperative Agreement Program. PTA Centers are a local resource available to provide assistance to business firms in marketing products and services to the Federal, state and local governments.

QUALIFIED EMPLOYEE TRUSTS LOAN PROGRAM The objective of this program is to provide financial assistance to Employee Stock Ownership Plans. The employee trust must be part of a plan sponsored by the employer company and qualified under regulations set by either the Internal Revenue Service Code (as an Employee Stock

Ownership Plan or ESOP) or the Department of Labor (the Employee Retirement Income Security Act or ERISA). Applicants covered by the ERISA regulations must also secure an exemption from the Department of Labor regulations prohibiting certain loan transactions.

QUICK RATIO Current assets less inventories divided by current liabilities. Also called "acid ratio."

RATIO Denotes relationships of items within and between financial statements, e.g., current ratio, quick ratio, inventory turnover ratio and debt/net worth ratios.

RECEIVABLE CONVERSION PERIOD RCP Time between the sale of the final product on credit and cash receipts for the accounts payable.

RECIPROCITYSBA/DOT Certification Reciprocity for Disadvantaged Businesses The U.S. Small Business Administration (SBA) and the U.S. Department of Transportation (DOT) signed a memorandum of understanding that "reciprocally" streamlines the certification process for current and future 8(a) Business Development, Small Disadvantaged Business (SDB), and Disadvantaged Business Enterprise (DBE) program participants on Tuesday, November 23, 1999. In effect, this process will allow each agency to recognize the program certification of the other without duplicating paperwork. By streamlining certain procedures and requirements, it will reduce the burden on applicants. The agreement creates the start of a uniform application process for small disadvantaged business certification, reinventing the way the government does business with SDBs.

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working in conjuction with a State or local government or Indian tribe; or Indian tribes acting on their own, with proper certification that no other qualified organization exists within their jurisdiction.

PRIME CONTRACT A contract awarded directly by the Federal government.

PRIME RATE Interest rate which is charged business borrowers having the highest credit ratings, for short term borrowing. As published daily in the Wall Street Journal, it is the basis for rates to other lenders.

PROCUREMENT FORECASTS Annual The Small Business Act requires that agencies annually publish a list of their requirements for upcoming fiscal year. These listings may be accessed through individual agency websites or the SBA website.

PRODUCT LIABILITY Type of tort or civil liability that applies to product manufacturers and sellers.

PROFESSIONAL AND TRADE ASSOCIATIONS Non-profit, cooperative and voluntary organizations that are designed to help their members in dealing with problems of mutual interest. In many instances professional and trade associations enter into an agreement with SBA to provide volunteer counseling to the small business community.

PRO-Net SBA’s Procurement Marketing Access Network, or PRO-Net, is a "virtual" onestop procurement shop. The database offers an electronic search engine for contracting officers and serves as a marketing tool for small businesses that register with the system. It contains the profiles of thousands of small firms.

PROPRIETORSHIP The most common legal form of business ownership; about 85 percent of all small businesses are proprietorships. The liability of the owner is unlimited in this form of ownership.

PROTEGE 8(a) The U.S. Small Business Administration’s (SBA) Mentor-Protégé program enhances the capability of 8(a) participants to compete more successfully for federal government contracts. The program encourages private-sector relationships and expands SBA’s efforts to identify and respond to the developmental needs of 8(a) clients.

PROTEGE BusinessLINC In previous business-to-business relationship programs, the relationship between the large company and small business was referred to as mentorprotégé programs. The BusinessLINC Protégé Network is a comprehensive on-line data base that provides immediate registration for both protégé opportunities and small business procurement/contracting opportunities through SBA’s PRO-Net system. Protégé registration is hyperlinked to PRO-Net so that your information can efficiently be included in small business profiles scanned by large businesses for both mentor-

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PETTY CASH A small fund maintained for incidental expenses.

PMI Presidential Management Intern Program The PMI Program has been attracting outstanding graduate students to Federal service for the past 19 years. Executive Order 12364 established the program in 1977. According to the Executive Order, the purpose of the Presidential Management Intern Program is to: Attract to the Federal Service outstanding men and women from a variety of academic disciplines who have a clear interest in, and commitment to, a career in the analysis and management of public policy.

POLLUTION CONTROL LOAN PROGRAM Pollution Control Loans are intended to provide loan guarantees to eligible small businesses for the financing of the planning, design, or installation of a pollution control facility. This facility must prevent, reduce, abate, or control any form of pollution, including recycling.

PRECAUTIONARY BALANCES Cash held for emergencies or unexpected outflows of funds. Also known as "contingency fund."

PREFERRED LENDER PROGRAM (PLP) The most active and expert lenders qualify for the SBA's streamlined lending programs. Under these programs, lenders are delegated partial or full authority to approve loans, which results in faster service from SBA. Preferred lenders are chosen from among the SBA's best lenders and enjoy full delegation of lending authority in exchange for a lower rate of guaranty. This lending authority must be renewed at least every two years, and the lender's portfolio is examined by the SBA periodically. Preferred loans account for more than 10 percent of SBA loans.

PREQUAL The Prequalification Pilot Loan Program uses intermediaries to assist prospective borrowers in developing viable loan application packages and securing loans. Once the loan package is assembled, it is submitted to the SBA for expedited consideration; a decision usually is made within three days. If the application is approved, the SBA issues a letter of prequalification stating the SBA's intent to guarantee the loan.

PRESS/PRESS RELEASES SBA issues press releases and Media Alerts of significant happenings or decisions in the small business community. Choosing More... will take you to our Headline News area.

PRIME Program for Investment in Microentrepreneurs Act: The U.S. Small Business Administration plans to issue Federal grants awards to qualified organizations under PRIME to provide training and technical assistance to disadvantaged microentrepreneurs. These organizations include: non-profit microenterprise development organizations or programs; intermediaries; other microenterprise development organizations or programs that are accountable to a local community,

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ORDINARY INTEREST Simple interest based on a year of 360 days, contrasting with exact interest having a base year of 365 days.

OSDBU See Office of Small & Disadvantaged Business Utilization.

OSHA (OCCUPATIONAL SAFETY & HEALTH ACT) To assure safe and healthful working conditions for working men and women; by authorizing enforcement of the standards developed under the Act; by assisting and encouraging the States in their efforts to assure safe and healthful working conditions; by providing for research, information, education, and training in the field of occupational safety and health; and for other purposes.

OUTLAYS Net disbursements (cash payments in excess of cash receipts) for administrative expenses and for loans and related costs and expenses (e.g., gross disbursements for loans and expenses minus loan repayments, interest and fee income collected, and reimbursements received for services performed for other agencies).

PARTNERING A mutually beneficial business-to-business relationship based on trust and commitment and that enhances the capabilities of both parties.

PARTNERSHIP A legal relationship existing between two or more persons contractually associated as joint principals in a business.

PATENT A patent secures to an inventor the exclusive right to make, use and sell an invention for 17 years. Inventors should contact the U.S. Department of Commerce Patent Office.

PAY TABLES Government Choose More... for the latest OPM tables.

PAYMENT BOND A type of surety bond wherein the surety company guarantees payment from the contractor to parties who furnish labor, materials, equipment and supplies for a contract.

PCRs Procurement Center Representatives SBA's Procurement Center Representatives (PCRs) (Word 97) or (PDF), located in area offices, review and evaluate the small business programs of federal agencies and assist small businesses in obtaining federal contracts and subcontracts. Choosing More... will take you to a PDF listing. Or you may go to Word 97 listing at http://www.sba.gov/gc/pcr.doc

PDF Portable Document Format Many Government agencies now present information in

PERFORMANCE BOND A type of surety bond where the surety company guarantees the contractor will fulfill the contract in accordance with its terms.

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NAICS was developed jointly by the U.S., Canada, and Mexico to provide new comparability in statistics about business activity across North America.

NOT DOMINANT A concern is not dominant in its field of operation when it does not exercise a controlling or major influence on an industry. As part of its review of a size standard, SBA investigates if a concern at or below a particular standard would be dominant in the industry, on a national basis. Thus, a concern at or below the size standard is presumed not to be dominant in its field of operation.

NOTES AND ACCOUNTS RECEIVABLE A secured or unsecured receivable evidenced by a note or open account arising from activities involving liquidation and disposal of loan collateral.

OBLIGATIONS Technically defined as "amount of orders placed, contracts awarded, services received, and similar transactions during a given period which will require payments during the same or a future period." Also, another term for debt: money, merchandise or service owed to someone.

OFFICE OF SMALL & DISADVANTAGED BUSINESS UTILIZATION (OSDBU) Federal

Offices of Small and Disadvantaged Business Utilization (OSDBUs) offer small business information on procurement opportunities, guidance on procurement procedures, and identification of both prime and subcontracting opportunities.

OFFICES AND SERVICES/SBA SBA has more than 90 offices in the United States to serve your local needs.

OHA Office of Hearings and Appeals The Office of Hearings and Appeals, an independent office of the Small Business Administration (SBA or Agency). It is composed of two offices, the Office of Hearings and Appeals (OHA), and the Freedom of Information/Privacy Acts (FOI/PA) Office. The Small Business Administration established the Office of Hearings and Appeals (OHA) in 1983 to provide an independent, quasijudicial appeal of certain SBA program decisions. OHA succeeded the SBA Size Appeals Board. Over the years, the SBA has expanded OHA's mission.

OMBUDSMAN The National Ombudsman and the Fairness Boards will receive comments about federal compliance and enforcement activities from small businesses, and report these findings to Congress every year. The report will give each agency a kind of "customer satisfaction rating" by evaluating the enforcement activities of regulatory agency personnel and rating the regional and program offices of the regulatory agencies responsiveness to small business.

ORDERING COSTS Administrative costs of placing, tracking, shipping, receiving and paying for an order.

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