City of Peoria Economic Development Department Office of the City Manager MINORITY BUSINESS IMPLEMENTATION GRANT (M-BIG) PROGRAM I Information S ession - December 8, 2016 –Carver Center www.growpeoria.com
M-BIG - Presentation Outline 1. Grant Purpose & Overview 2. Realizing Your Project 3. Applying for the M-BIG 4. Question & Answers
M-BIG - Presentation Outline 1. Grant Purpose & Overview 2. Realizing Your Project 3. Applying for the M-BIG 4. Question & Answers
M-BIG – Grant Purpose (THE WHY) • Economic Disparity ▫ Peoria City Minorities – 37.6% (2010 Census) ▫ Peoria City MBE’s – 13.5% (2007 SOBO) • Economic Equity ▫ City RLF Program (March 2016) ▫ City MBE Grant Opportunity Study (May 2016) ▫ City Micro-Lending Study (Nov 2016) ▫ City M-BIG Program (Jan 2017)
M-BIG – Grant Overview • Startup In A Day Grant Award – October 2015 ▫ Streamline Permitting Process - $12,500 (contracted) ▫ Synergize Business Resources - $25,000 (contracted) ▫ Support MBE’s - $12,500 (allocated) • Proposal to Support MBE’s - $12,500 ▫ MBE Grant Opportunity Study - $2,500 ▫ Minority Business Im plem entation Grant - $10,000 • Peoria County Contributing - $5,000 to M-BIG Total for M-BIG Program - $15,0 0 0
M-BIG – Goal • Encourage the creation and/or expansion of Minority-owned Business Enterprises (MBE’s). • Provide 4 to 6 Awards from $2,500 to $5,000 to MBE’s for startup or expansion projects. • Eligibility: ▫ Private business within City of Peoria ▫ Business under 50 employees ▫ Minority owned/operated by 51% (existing or startup)
M-BIG - Presentation Outline 1. Grant Purpose & Overview 2. Realizing Your Project 3. Applying for the M-BIG 4. Question & Answers
REALIZING YOUR PROJECT PROJECT PLAN Determining and documenting a list of specific project goals, deliverables, tasks, Obtain Identify costs and Funding Opportunity deadlines. Develop Define Workplan Resources Itemize Budget
REALIZING YOUR PROJECT PROJECT PLAN Determining and documenting a list of specific project goals, deliverables, tasks, Obtain Identify costs and Funding Opportunity deadlines. Develop Define Workplan Resources Itemize Budget
REALIZING YOUR PROJECT – Identify Opportunity What is Your Unique Point Of View (P.O.V.) ? Productivity = Higher Output and Lower Input, Doing More with Less Opportunity = A Chance for Progress/Advancement for People, Profit, and Planet Value = Solve a Problem and Build a Relationship
REALIZING YOUR PROJECT – Identify Opportunity The Ansoff Matrix
REALIZING YOUR PROJECT PROJECT PLAN Determining and documenting a list of specific project goals, deliverables, tasks, Obtain Identify costs and Funding Opportunity deadlines. Develop Define Workplan Resources Itemize Budget
REALIZING YOUR PROJECT – Define Resources What’s Needed to Take Hold of Your Big “O” ? The Timmons Model of Entrepreneurship
REALIZING YOUR PROJECT – Define Resources Right-Size Your “M’s” to Sieze Your Big “O” ? The 5 M’s of Resources 1. Mind Power 2. Man Power 3. Money 4. Machines 5. Materials
REALIZING YOUR PROJECT PROJECT PLAN Determining and documenting a list of specific project goals, deliverables, tasks, Obtain Identify costs and Funding Opportunity deadlines. Develop Define Workplan Resources Itemize Budget
REALIZING YOUR PROJECT – Itemize Budget What are the Costs, in Detail ? a) Startup Cost (non-reoccurring costs, capital expenditures), b) Fixed Costs (remains constant regardless of sales) c) Variable Cost (increases or decreases with sales) STARTUP COSTS RUNNING COSTS (Set Up Costs) (Operating Costs) One ‐ Time Fixed Monthly Variable Monthly Real Estate Rent/Lease Utilities Improvements Insurance Inventory Machinery & Equipment Salaries Direct Labor Furniture & Fixtures Loan Payments Commissions Professional Fees Depreciation
REALIZING YOUR PROJECT PROJECT PLAN Determining and documenting a list of specific project goals, deliverables, tasks, Obtain Identify costs and Funding Opportunity deadlines. Develop Define Workplan Resources Itemize Budget
REALIZING YOUR PROJECT – Develop Workplan Determine: Who? Does What? When? and for How Much ? 1999 MARKETING PROGRAM WHO Oct Nov Dec Jan Feb Mar EST. - $ I TARGET COMPANIES Idenfify Lead Sources CJS $0 DONE Purchase Database CJS $5,000 DONE Establish Search\Screen Criteria CJS $0 Establish System for DM & TS CJS $1,000 DIRECT MAIL (DM) II Develop Series of Messages BH $0 Produce Callateral Materials BH $5,000 Send Mail in cycles (2,000 @ $0.25) CJS $500 III TELESALES (TS) Develop\Modify Script CJS $100 DONE Develop Tracking System CJS $500 Conduct Cold Calls (2,000 @ $2.00) CJS $4,000 Follow-Up \ Personal Visits CJS $5,000
REALIZING YOUR PROJECT PROJECT PLAN Determining and documenting a list of specific project goals, deliverables, tasks, Obtain Identify costs and Funding Opportunity deadlines. Develop Define Workplan Resources Itemize Budget
REALIZING YOUR PROJECT – Obtain Funding What are Your Sources and Uses of Funds ? SHORT TERM LONG TERM Operations ‐ Retained Earnings Self Financing Stocks EQUITY Operations ‐ Profit Tax Credits FINANCING Friends & Family Convertible Debt Investors Angel Investors Venture Capitalist Trade Credit ‐ from Suppliers Personal Credit Card Friendly Loans Term Loans Promissory Note ‐ Unsecured Home Mortgage DEBT Asset ‐ Based ‐ A/R, Inv./M&E Commercial Mortgages FINANCING Quick Cash Loans ‐ Payday/Title/TaxReturn Business Card Credit Bank Line of Credit #@ Predatory Lenders ?/@ Grants Factoring / Bank Overdrafts / OTHER Tax Exemptions / Tax Abatements Crowdfunding (Indiegogo, Crowdfunder)
REALIZING YOUR PROJECT – Obtain Funding City Programs 1. Façade Improvement Program 2. Tax Increment Financing 3. E-Zone & River Edge Redev. Zone 4. Revolving Loan Fund Program Other Programs/Tools A. One Stop Shop B. Startup In A Day – Initiative C. Industrial Development Bonds D. HUB Zone E. Historic Tax Credits F. EB- 5 Foreign Investor Program G. Other Bonding Programs
REALIZING YOUR PROJECT – Obtain Funding Challenges to Obtain O.P.M? • Limited track record • Lack of financial records • Inadequate business plan • Insufficient management capacity • Poor management of funds • Under capitalization • Little to no collateral to secure loan • No governance structure
REALIZING YOUR PROJECT – Obtain Funding (Micro-Loans) STARTUP & WORKING CAPITAL LOANS ‐ UNDER $15,000 Loan Amount Interest Rate Fees Organization/Contact Description Low High Low High App. Closing Contact A variety of micro ‐ loan products and Mikayla Eldridge 1 Justine Peterson $300 $150,000 8.5% 16.0% 2.0% 5.0% services, including personal credit METEC builder. 309 ‐ 676 ‐ 3832 x 308 Ave. $6,000 http://www.justinepetersen.org/ Loans for startup and existing business, Chicago Office 2 Accion Chicago including financial counseling. Secured $500 $100,000 312 ‐ 275 ‐ 3000. loans with good credit http://accionchicago.org/programs/ For businesses with no credit history, 3 IL Business Financial but good personal credit (FICO Score 680 Jerry Nutt $10,000 $150,000 5.0% 25.0% None 9 to 12% Services plus)., a nearly “no doc” unsecured 309 ‐ 495 ‐ 5971. business credit card. http://www.ibfs.org/unsecured ‐ business ‐ credit ‐ cards ‐ .html Loans for startup and existing business. Cesar Suarez 4 City of Peoria $5,000 $250,000 4.0% 10.0% $ 100.00 1.0% Secured loans with decent credit. 309 ‐ 494 ‐ 8645 http://www.growpeoria.com/wp ‐ content/uploads/2014/10/CITY ‐ of ‐ Peoria ‐ RLF ‐ 2016 ‐ Guide ‐ Application ‐ 160524.pdf Loans for startup and existing business. Mark Rothert 5 County of Peoria $5,000 $150,000 3.0% 3.0% None None Secured loans with decent credit. 309 ‐ 672 ‐ 6065 http://www.peoriacounty.org/countyadmin/governmentassistance/ Business ReLi ‐ Unsecured and Secured Kathy Wallace 6 Wood Forest Bank $500 $50,000 8.0% 12.0% None None Lines of Credit, based on decent credit. 309 ‐ 691 ‐ 3790 https://www.woodforest.com/Business ‐ Banking/Products/Loans
M-BIG - Presentation Outline 1. Grant Purpose & Overview 2. Realizing Your Project 3. Applying for the M-BIG 4. Question & Answers
M-BIG – How to Apply • Project must demonstrate how funds will: ▫ a) create new market opportunities, ▫ b) capture new market share, or ▫ c) meet untapped/emerging market demand • Project must have a credible Project Plan: ▫ Determining and documenting a) opportunity, b) needed resources, c) itemized budget, d) workplan, and e) sources and uses of funds. • Application Approval Process ▫ Submittal Deadline - January 13, 2017 ▫ Prize Award Notice- January 27, 2017 ▫ Funds Disbursed – According to Proposal
City of Peoria Economic Development For Questions Contact! Cesar Suarez Senior Development Specialist City of Peoria 419 Fulton Street Peoria, IL 61601 309-494-8645 csuarez@peoriagov.org
Recommend
More recommend
