2023 Trends to Watch, SBA Disaster Loan Rate Changes, The Government Will Buy That From You

Today’s episode is going to review a recent SBA article discussing some of the top business trends to look for in 2023 that YOU need to be aware of; some positive changes happening to the SBA Disaster Assistance Loans (spoiler, it’s about interest rates); and segments from a conversation I had with Arkansas Procurement and Technical Assistance Center Director, Melanie Berman. This also marks our last episode of 2022.

*** SHOW NOTES ***  

 
SBA’s 2023 Business Trends
SBA to Offer Disaster Loans with No Interest and No Payments for First Year  

Arkansas Procurement and Technical Assistance Center 
Phone: 501.671.2390
Email: PTAC@uada.edu


Arkansas Business Navigator Spokes  

Arkansas Human Development Corporation 

Arkansas State Chamber of Commerce:  

Central Arkansas Library System (Rock It! Lab) 

East Arkansas Enterprise Community 

Phoenix Youth & Family Services

Events 

Arkansas Business Navigator Event Page
Access to Capital: Mammoth Spring
Build an e-Commerce Website with Weebly
Are you Credity Worthy? 

Small Business Administration and Arkansas Business Navigator Resources  

UADA ABN Website   

ABN Podcast 

ABN Website 

SBA Website 

ASBTDC Website 

Transcript

1 00:00:00,780 --> 00:00:07,200 Hello and welcome to the Arkansas Business Navigator podcast, the show that reviews U.S. Small Business Administration in Arkansas.

2 00:00:07,200 --> 00:00:12,480 And Arkansas Business Navigator resources available to support small businesses and entrepreneurs in the natural state.

3 00:00:12,930 --> 00:00:19,979 I'm Brandon Mathews, and today's episode is going to review a recent SBA article discussing some of the top business trends to look

4 00:00:19,980 --> 00:00:27,900 for in 2023 that you need to be aware of some positive changes happening to the SBA Disaster Assistance Loans.

5 00:00:28,230 --> 00:00:30,210 Spoiler. It's about interest rates.

6 00:00:30,570 --> 00:00:37,440 And finally, a segment from a conversation I had with Arkansas Procurement and Technical Assistance Center director Melanie Berman.

7 00:00:37,980 --> 00:00:40,980 This also marks our last episode of 2022.

8 00:00:41,010 --> 00:00:48,780 The University of Arkansas System Division of Agriculture is going to be closed for winter break December 23rd through January 2nd.

9 00:00:49,350 --> 00:00:54,090 So if Kim and I don't get back to your email or call, it's not because we don't want to talk to you.

10 00:00:54,540 --> 00:00:59,700 It's because we're recharging and spending time with family and friends and hopefully you can do the same also.

11 00:01:00,180 --> 00:01:03,170 Let's get this show on the road. One.

12 00:01:10,160 --> 00:01:15,590 My family and I try to shop local for as many guests as possible for friends and family during the holiday season.

13 00:01:15,950 --> 00:01:22,970 And I think we did a pretty good job supporting the local salons, boutiques, grocery store restaurants and even the local pharmacy.

14 00:01:23,570 --> 00:01:27,950 Of the shops I've listed. Only the local boutique has an e-commerce store.

15 00:01:28,580 --> 00:01:35,870 And as for the other shops, we had to go in store and wander the aisles and shelves like my prepandemic self in 2019.

16 00:01:36,740 --> 00:01:40,580 And look, I live in a rural community with a couple thousand people in my town.

17 00:01:40,940 --> 00:01:46,310 A lot of the businesses here haven't adopted e-commerce or other trends seen in their larger, more urban counterparts.

18 00:01:46,700 --> 00:01:50,900 But if this isn't on your radar now, it should be for 2023.

19 00:01:51,320 --> 00:01:58,460 The SBA is tracking five trends in e-commerce and social commerce are number one on the list, according to Merriam-Webster dictionary. 20 00:01:58,640 --> 00:02:07,010 E-commerce is a commerce conducted via the Internet. This has typically been seen through a business's website or through sites like Etsy and eBay.

21 00:02:07,430 --> 00:02:15,230 Social commerce is similar with sales of goods and services happening over social media platforms like Facebook, Instagram, or Pinterest.

22 00:02:16,070 --> 00:02:19,550 You know that four-wheeler you purchased on Facebook Marketplace back in August?

23 00:02:19,790 --> 00:02:23,900 That social commerce friend. The truth is, more people are shopping online.

24 00:02:24,020 --> 00:02:28,639 In fact, more than half of global Internet users buy something online every week.

25 00:02:28,640 --> 00:02:36,230 And experts forecast that the global e-commerce industry will grow by $8.1 trillion by 2026.

26 00:02:36,830 --> 00:02:40,490 The takeaway here is to find a way to be online in reaching customers.

27 00:02:40,910 --> 00:02:47,840 If you don't know how or where to get started, reach out to us at the Arkansas Business Navigator or to the Arkansas Small Business and Technology

28 00:02:47,840 --> 00:02:52,850 Development Center to learn about what resources and opportunities exist for you to start selling online.

29 00:02:53,510 --> 00:02:56,930 The second trend is tied to the first one as people shop online. 30 00:02:57,110 --> 00:03:01,459 The system is imperfect between shipping delays and supply chain issues.

31 00:03:01,460 --> 00:03:03,560 You could be waiting days or weeks for an item.

32 00:03:03,860 --> 00:03:11,630 Take me for example, I ordered three Formula one Mercedes Benz AMG Team Hats repping Lewis Hamilton before Thanksgiving.

33 00:03:12,020 --> 00:03:17,299 Do I have my hats? No. Have I received periodic updates thanking me for my purchase?

34 00:03:17,300 --> 00:03:21,050 And the F1 official store is working hard to fulfill this order.

35 00:03:21,710 --> 00:03:27,050 Yes, we are all a little impatient in the two day and next day shipping air.

36 00:03:27,590 --> 00:03:34,130 Even more so. Recent data states that 61% of customers still want to try products on in-person before buying.

37 00:03:34,490 --> 00:03:39,950 This means bolstering customer support online and in-store to increase sales and reach more customers.

38 00:03:40,550 --> 00:03:46,910 Amazon has a new brick and mortar concept called Amazon Style that is attempting to merge the online and in-store experiences.

39 00:03:47,660 --> 00:03:54,920 You try on clothes, scan a QR code to learn more about the product and can arrange to have purchases made online or picked up in store. 40 00:03:55,400 --> 00:04:00,320 The online retailer, with everything from A to Z, can't stay away from brick and mortar.

41 00:04:00,590 --> 00:04:04,970 The Takeaway Meet customers where they are and how they want to shop.

42 00:04:05,270 --> 00:04:09,350 Brick and mortar isn't dead. It just needs to match customer expectations.

43 00:04:09,620 --> 00:04:13,490 Number three on SBA's 2023 trends is all about safety.

44 00:04:13,910 --> 00:04:18,200 I'm not talking about preventing the spread of sickness or keeping an eye on the parking lot.

45 00:04:18,560 --> 00:04:23,180 Two things you should definitely be doing. What I'm talking about is data collection.

46 00:04:23,660 --> 00:04:28,370 Customers want to know that their personal data and information they share with you is confidential and safe.

47 00:04:28,670 --> 00:04:31,880 If they can't trust you, they likely won't shop with you either.

48 00:04:32,300 --> 00:04:36,379 One of the easiest things you can do to prevent fraud and build trust with customers

49 00:04:36,380 --> 00:04:41,840 online is to install a secure sockets layer or SSL certificate on your website.

50 00:04:42,110 --> 00:04:47,720 SSL is a digital certificate that authenticates a website's identity and enables encrypted connections,

51 00:04:47,870 --> 00:04:51,080 meaning other people can't access the data like hackers.

52 00:04:51,650 --> 00:05:02,150 You know those websites with HTTPS at the beginning. They have an SSL. HTTP websites do not and they are more vulnerable to malicious attacks.

53 00:05:02,840 --> 00:05:06,890 How about sustainability? That is number four on SBA's list.

54 00:05:07,430 --> 00:05:12,470 Customers are willing to pay more across every generation for sustainable products.

55 00:05:12,770 --> 00:05:16,460 No more straws being pulled out of turtle noses for these customers.

56 00:05:17,030 --> 00:05:21,980 Maybe it's using 100% recycled paper products or switching completely to reusable items.

57 00:05:22,310 --> 00:05:26,000 Maybe it's buying from sustainable producers or supporting conservation.

58 00:05:26,630 --> 00:05:30,920 There isn't a clear-cut solution to what you should be doing, but the important thing is to try.

59 00:05:31,340 --> 00:05:39,410 Customers will reward the effort. All of these trends funnel into number five on the list, which is providing exceptional customer experience.

60 00:05:39,830 --> 00:05:46,910 You might have the cheapest product and you might have the best quality materials, but if the experience is off putting to customers,

61 00:05:47,180 --> 00:05:52,250 they are not going to come back or tell their friends or family about you, at least in a positive manner.

62 00:05:53,000 --> 00:05:56,990 You know that BMW smell, customer experience.

63 00:05:57,290 --> 00:06:00,559 You know that Chick fil A? Hello. How may I help you?

64 00:06:00,560 --> 00:06:04,100 And my pleasure. Customer experience.

65 00:06:04,730 --> 00:06:07,580 How about Chipotle going above and beyond to remind us that?

66 00:06:07,630 --> 00:06:13,720 They source the best ingredients and prepare their food on site while still being able to get you in and out of the door in under 3 minutes.

67 00:06:14,440 --> 00:06:20,410 Customer Experience. The point here is to make an effort to make customers feel valued.

68 00:06:20,920 --> 00:06:22,840 When I worked in the not-for-profit sector,

69 00:06:23,200 --> 00:06:29,650 there was a fear that if 99% of money didn't go directly to the program line, we weren't doing our job well.

70 00:06:30,340 --> 00:06:36,820 That's simply not true. The pie can grow, and the same is true if you invest in your customer experience.

71 00:06:37,360 --> 00:06:43,510 These are all things the Arkansas Business Navigator can assist you with, so don't hesitate to reach out to us or one of our other partners.

72 00:06:43,780 --> 00:06:54,339 You can find a link to the SBA article in our show notes. On December 5th,

73 00:06:54,340 --> 00:06:58,659 SBA announced it will waive the interest rate for the first year on new disaster

74 00:06:58,660 --> 00:07:02,860 loans and extend the initial payment deferment period automatically to 12 months.

75 00:07:03,340 --> 00:07:09,790 This change is effective for all disaster loans approved in response to a disaster declared on or after September 21st,

76 00:07:10,000 --> 00:07:14,440 2022 through September 30th, 2023.

77 00:07:14,860 --> 00:07:21,490 The effective date covers SBA disaster loans currently available for Hurricane Fiona and Hurricane Ian declared earlier this year.

78 00:07:21,610 --> 00:07:24,910 You can check out the link in our show notes for more details about the changes.

79 00:07:25,390 --> 00:07:28,630 Hmm. Low rates. Just in time for the holidays.

80 00:07:35,380 --> 00:07:39,580 Do you know who the biggest buyer is in the United States? Amazon.

81 00:07:40,330 --> 00:07:45,790 Walmart. What about Ford? If you guess any of these, you'd be wrong.

82 00:07:46,210 --> 00:07:51,250 The answer is the United States government. This is done through contracting and procurement.

83 00:07:51,580 --> 00:07:55,000 In fact, the majority of contracts are set aside for small businesses.

84 00:07:55,570 --> 00:07:59,500 That sounds good, but how does one get into government contracting?

85 00:07:59,740 --> 00:08:02,980 To help answer that, I had a conversation with Melanie Birmingham.

86 00:08:03,280 --> 00:08:10,180 I am Melanie Berman and I am the Arkansas Procurement Technical Assistance Center Program Director.

87 00:08:10,210 --> 00:08:19,120 We are funded by the Department of Defense and our matching partner, University of Arkansas, Division of Agriculture, Cooperative Extension Service.

88 00:08:19,570 --> 00:08:29,810 And we help Arkansas based businesses felt the government and that includes everything from one-on-one consulting by our procurement counselors.

89 00:08:30,550 --> 00:08:39,520 We teach various trainings and participate in small business events, including outreach events, matchmaking events.

90 00:08:39,550 --> 00:08:48,160 I like to explain it in this way. If the government is using your taxpayer dollars to purchase any goods or services.

91 00:08:48,190 --> 00:08:49,930 That's what we can help you find.

92 00:08:50,530 --> 00:09:01,540 So our counselors are here to help seek out those bids or solicitations and help you understand what the government is requesting and that.

93 00:09:01,900 --> 00:09:06,820 When I say government, that can be state government doesn't have to just be a state of Arkansas.

94 00:09:06,820 --> 00:09:13,990 It could be other states in the United States. It's the federal government, an accounting government, a city government.

95 00:09:14,000 --> 00:09:17,950 And then think about the University of Arkansas system where publicly funded.

96 00:09:18,250 --> 00:09:21,760 So that as well encompasses government contracting.

97 00:09:21,880 --> 00:09:26,050 We want to keep the jobs and dollars in the state of Arkansas.

98 00:09:26,170 --> 00:09:34,840 One of my pet peeves, I guess you could say, is when I see a contract out there, for example, maybe the City of Little Rock is purchasing.

99 00:09:34,930 --> 00:09:40,540 And I say a Little Rock because I'm from Little Rock and it goes to a Texas company. 100 00:09:40,630 --> 00:09:43,720 Nothing against Texas. Love people from Texas.

101 00:09:44,050 --> 00:09:51,490 But wouldn't we much rather have those jobs and dollars remain in our state and go to one of our capable Arkansas businesses?

102 00:09:51,730 --> 00:09:56,890 So who would be your ideal client to work with? What type of business is right to be contacting you guys?

103 00:09:57,550 --> 00:10:03,350 Yeah. So, the Arkansas PTAC , we typically won't help with startup businesses.

104 00:10:03,640 --> 00:10:12,040 And the reason for that is in order to get into government contracting, the government buyer wants to see past performance.

105 00:10:12,460 --> 00:10:19,630 So if you're at that phase where you're just starting a business or maybe you have an idea for a business,

106 00:10:19,660 --> 00:10:26,470 you're probably not quite ready for the Arkansas paycheck. Our ideal client would be someone who's been in business at least 2 to 3 years.

107 00:10:26,740 --> 00:10:29,500 They've been successful in the commercial marketplace,

108 00:10:29,710 --> 00:10:35,200 and they're really just trying to diversify their revenue stream and getting into the government marketplace.

109 00:10:35,200 --> 00:10:40,899 That's one way to do that. The government buys any and everything, and on an annual basis,

110 00:10:40,900 --> 00:10:48,640 that's about $600 billion a year that they're purchasing, and that's just the federal government.

111 00:10:48,910 --> 00:10:55,330 That doesn't even include the state of Arkansas and the local counties and cities, school districts and so on.

112 00:10:55,570 --> 00:11:03,490 So let's say I'm working with a client that's in El Dorado or Jonesboro, one of those far cities, you know, on the on kind of the border of the state.

113 00:11:03,700 --> 00:11:08,290 Do they have to go to Little Rock to work with you guys? So our program is a statewide program.

114 00:11:08,800 --> 00:11:13,480 Most of us are based in Little Rock, but we do cover the entire state.

115 00:11:13,750 --> 00:11:21,430 And then, of course, anyone can meet with us via zoom on the telephone or in person for those special circumstances.

116 00:11:21,430 --> 00:11:22,180 For example,

117 00:11:22,480 --> 00:11:30,400 maybe you're a manufacturing company and you would like for the procurement counselor to see what you do to really get an understanding of it.

118 00:11:30,640 --> 00:11:33,400 We could do site visits in that regard as well.

119 00:11:33,520 --> 00:11:41,740 What is a challenge or pitfall that you see that you would want businesses to consider or to address first before reaching out to you guys?

120 00:11:41,890 --> 00:11:47,080 I think if they have an operational business, they've been doing that for quite a while.

121 00:11:47,440 --> 00:11:51,160 It's probably going to be an easy transition into the government marketplace.

122 00:11:51,580 --> 00:11:54,780 With that said. You need to do a little bit of research, right?

123 00:11:54,800 --> 00:12:00,240 You need to see what the various government agencies are purchasing and if

124 00:12:00,240 --> 00:12:04,810 they're purchasing enough of what you're selling to make it worth your while.

125 00:12:04,830 --> 00:12:08,990 I would recommend never undercut yourself just to get a contract.

126 00:12:09,000 --> 00:12:16,440 It's not worth it. We don't want our businesses failing or losing money just because they want to get into the government marketplace.

127 00:12:17,040 --> 00:12:24,869 That's one thing that we see sometimes. Our clients are just so eager to get that first contract that they're willing to take a cost break.

128 00:12:24,870 --> 00:12:29,880 And that's not something that we would recommend. There may be a name change coming in the future.

129 00:12:30,240 --> 00:12:36,840 Can you tell us a little bit about that? With our move to the Office of Small Business Programing under the Department of Defense.

130 00:12:37,170 --> 00:12:43,470 We have a higher visibility for our program. And with that, they they rolled out a new name.

131 00:12:43,590 --> 00:12:52,020 And that'll be something that the Arkansas Cookie TAC will be transitioning to probably in January, February timeframe.

132 00:12:52,500 --> 00:12:56,310 But if you wanted to know what it was, here's a little secret.

133 00:12:56,700 --> 00:13:09,810 It's apex accelerators. So if you see anywhere talk of Arkansas high tech or Arkansas Apex Accelerator, we are one in the same.

134 00:13:10,020 --> 00:13:15,420 Melanie, what's the best way to get a hold of your team? Give us your socials, the number, email, all that good stuff.

135 00:13:15,750 --> 00:13:20,550 Yeah. So we are on Facebook. We're on LinkedIn.

136 00:13:20,850 --> 00:13:27,180 In regard to social media. If you just search Arkansas, you'll find us on both of those channels.

137 00:13:27,540 --> 00:13:32,760 And then the best thing to do to contact us is to email our general email box.

138 00:13:33,480 --> 00:13:37,770 And that is P-TECH at U a T.A. edu.

139 00:13:38,430 --> 00:13:47,100 Our phone number, if you want to leave a voice message, is 5016712390.

140 00:13:48,180 --> 00:13:50,940 And I will say this, we're busy all the time.

141 00:13:50,950 --> 00:13:57,780 So if you don't get a hold of us right away, or if it takes us a day or two to get back, just know that we will get back to you.

142 00:13:57,820 --> 00:14:03,000 So I would like to add, the best thing to do is also to complete our client application because that

143 00:14:03,000 --> 00:14:09,120 will automatically filter to us and we can assign you a counselor right away.

144 00:14:09,150 --> 00:14:17,310 I also teach a class for new clients every couple of weeks, so that will be posted on our website as well.

145 00:14:24,240 --> 00:14:33,040 Normally, Kim and I would review the upcoming events, but with only a week left in 2022, our December calendar is light.

146 00:14:33,840 --> 00:14:38,460 But don't you worry, our January 2023 calendar is full.

147 00:14:39,000 --> 00:14:43,650 Check out all of our events happening across the state at our Business Navigator dot com.

148 00:14:44,280 --> 00:14:51,450 A link to some of the show notes as well. This is also where we have listener Q&A, but no one sent us any questions. 149 00:14:51,990 --> 00:14:55,170 That's okay. 2023 is just around the corner,

150 00:14:55,170 --> 00:15:02,940 and I expect your New Year's resolution to include listening and submitting questions to the Arkansas Business Navigator podcast.

151 00:15:03,940 --> 00:15:07,930 Enjoy the holidays, everyone, and we'll catch you again in 2023.

152 00:15:08,650 --> 00:15:13,240 Thanks for listening to the podcast. Consider subscribing to get notified when new episodes drop.

153 00:15:13,540 --> 00:15:20,200 If you found the information useful, we'd really appreciate it if you could leave a review on Apple Podcasts, Spotify or wherever you listen.

154 00:15:20,590 --> 00:15:29,530 If you want to ask a question or have it answered on the show. Go to uaex.uada.edu/abnpodcast and complete the form.

155 00:15:29,890 --> 00:15:34,570 The Arkansas Business Navigator Podcast is produced by Brandon L Mathews and Cam Gomez.

156 00:15:34,930 --> 00:15:37,540 Our music was created by Music Unlimited by Pixabay.

157 00:15:38,380 --> 00:15:43,060 The Arkansas Business Navigator is a program of the Arkansas Small Business and Technology Development Center,

158 00:15:43,180 --> 00:15:48,340 hosted by the U.S. Little Rock and is funded in part through a grant from the U.S. Small Business Administration.

159 00:15:48,580 --> 00:15:54,610 All opinions, conclusions and or recommendations expressed herein are those of the authors and do not necessarily reflect the views of the SBA.

160 00:15:54,880 --> 00:15:57,880 To learn more about Arkansas Business Navigator how to access free,

161 00:15:57,910 --> 00:16:02,380 confidential business consulting and resources, go to arbusinessnavigator.com