City of PeoriaEconomic Development Department

Office of the City Manager

MINORITY BUSINESS IMPLEMENTATION GRANT

(M-BIG) PROGRAMI

Information Session - December 8, 2016 – Carver Center

www.growpeoria.com

M-BIG - Presentation Outline

1. Grant Purpose & Overview2. Realizing Your Project3. Applying for the M-BIG4. Question & Answers

M-BIG - Presentation Outline

1. Grant Purpose & Overview2. Realizing Your Project3. Applying for the M-BIG4. 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 Implementation Grant - $10,000

• Peoria County Contributing - $5,000 to M-BIG

Total for M-BIG Program - $15,000

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 & Overview2. Realizing Your Project3. Applying for the M-BIG4. Question & Answers

REALIZING YOUR PROJECT

Identify Opportunity

Define Resources

Itemize Budget

Develop Workplan

Obtain Funding

PROJECT PLANDetermining and documenting

a list of specificproject goals,

deliverables,tasks,

costs anddeadlines.

REALIZING YOUR PROJECT

Identify Opportunity

Define Resources

Itemize Budget

Develop Workplan

Obtain Funding

PROJECT PLANDetermining and documenting

a list of specificproject goals,

deliverables,tasks,

costs anddeadlines.

REALIZING YOUR PROJECT – Identify Opportunity

Productivity = Higher Output and Lower Input,Doing More with Less

Opportunity = A Chance for Progress/Advancementfor People, Profit, and Planet

Value = Solve a Problem and Build a Relationship

What is Your Unique Point Of View (P.O.V.) ?

REALIZING YOUR PROJECT – Identify Opportunity

The Ansoff Matrix

REALIZING YOUR PROJECT

Identify Opportunity

Define Resources

Itemize Budget

Develop Workplan

Obtain Funding

PROJECT PLANDetermining and documenting

a list of specificproject goals,

deliverables,tasks,

costs anddeadlines.

REALIZING YOUR PROJECT – Define Resources

The Timmons Model of Entrepreneurship

What’s Needed to Take Hold of Your Big “O”?

REALIZING YOUR PROJECT – Define Resources

The 5 M’s of Resources1. Mind Power2. Man Power3. Money4. Machines5. Materials

Right-Size Your “M’s” to Sieze Your Big “O”?

REALIZING YOUR PROJECT

Identify Opportunity

Define Resources

Itemize Budget

Develop Workplan

Obtain Funding

PROJECT PLANDetermining and documenting

a list of specificproject goals,

deliverables,tasks,

costs anddeadlines.

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(Set Up Costs)One‐Time Fixed Monthly Variable MonthlyReal Estate Rent/Lease Utilities

Improvements Insurance InventoryMachinery & Equipment Salaries Direct LaborFurniture & Fixtures Loan Payments CommissionsProfessional Fees Depreciation

RUNNING COSTS(Operating Costs)

REALIZING YOUR PROJECT

Identify Opportunity

Define Resources

Itemize Budget

Develop Workplan

Obtain Funding

PROJECT PLANDetermining and documenting

a list of specificproject goals,

deliverables,tasks,

costs anddeadlines.

REALIZING YOUR PROJECT – Develop Workplan

MARKETING PROGRAM WHO Oct Nov Dec Jan Feb Mar

I TARGET COMPANIESIdenfify Lead Sources CJS DONE $0Purchase Database CJS DONE $5,000Establish Search\Screen Criteria CJS $0Establish System for DM & TS CJS $1,000

II DIRECT MAIL (DM)Develop Series of Messages BH $0Produce Callateral Materials BH $5,000Send Mail in cycles (2,000 @ $0.25) CJS $500

III TELESALES (TS)Develop\Modify Script CJS DONE $100Develop Tracking System CJS $500Conduct Cold Calls (2,000 @ $2.00) CJS $4,000Follow-Up \ Personal Visits CJS $5,000

1999EST. - $

Determine: Who? Does What? When? and for How Much?

REALIZING YOUR PROJECT

Identify Opportunity

Define Resources

Itemize Budget

Develop Workplan

Obtain Funding

PROJECT PLANDetermining and documenting

a list of specificproject goals,

deliverables,tasks,

costs anddeadlines.

REALIZING YOUR PROJECT – Obtain Funding

SHORT TERM LONG TERMOperations ‐ Retained Earnings

Self Financing StocksOperations ‐ Profit Tax CreditsFriends & Family Convertible Debt

Investors Angel InvestorsVenture Capitalist

Trade Credit ‐ from SuppliersPersonal Credit Card

Friendly Loans Term LoansPromissory Note ‐ Unsecured Home MortgageAsset‐Based ‐ A/R, Inv./M&E Commercial Mortgages

Quick Cash Loans ‐ Payday/Title/TaxReturnBusiness Card CreditBank Line of Credit

#@ Predatory Lenders ?/@

EQUITY FINANCING

DEBT FINANCING

OTHER

Grants

Tax Exemptions / Tax AbatementsCrowdfunding (Indiegogo, Crowdfunder)

Factoring / Bank Overdrafts / 

What are Your Sources and Uses of Funds?

A. One Stop ShopB. Startup In A Day – InitiativeC. Industrial Development BondsD. HUB ZoneE. Historic Tax CreditsF. EB- 5 Foreign Investor ProgramG. Other Bonding Programs

1. Façade Improvement Program2. Tax Increment Financing3. E-Zone & River Edge Redev. Zone4. Revolving Loan Fund Program

City Programs

Other Programs/Tools

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

Organization/Contact Description Low High Low High App. Closing Contact

1  Justine PetersonA variety of micro‐loan products and services, including personal credit builder.

$300 $150,000 8.5% 16.0% 2.0% 5.0%Mikayla EldridgeMETEC309‐676‐3832 x 308

http://www.justinepetersen.org/  

2 Accion ChicagoLoans for startup and existing business, including financial counseling.  Secured loans with good credit 

$500 $100,000Chicago Office312‐275‐3000.

http://accionchicago.org/programs/ 

3IL Business Financial Services

For businesses with no credit history, but good personal credit (FICO Score 680 plus)., a nearly “no doc” unsecured business credit card.  

$10,000 $150,000 5.0% 25.0% None 9 to 12%Jerry Nutt309‐495‐5971.

http://www.ibfs.org/unsecured‐business‐credit‐cards‐.html

4  City of Peoria Loans for startup and existing business.  Secured loans with decent credit.

$5,000 $250,000 4.0% 10.0% 100.00$       1.0%Cesar Suarez309‐494‐8645

http://www.growpeoria.com/wp‐content/uploads/2014/10/CITY‐of‐Peoria‐RLF‐2016‐Guide‐Application‐160524.pdf 

5  County of Peoria Loans for startup and existing business.  Secured loans with decent credit.

$5,000 $150,000 3.0% 3.0% None NoneMark Rothert309‐672‐6065

http://www.peoriacounty.org/countyadmin/governmentassistance/

6 Wood Forest Bank  Business ReLi ‐ Unsecured and Secured Lines of Credit, based on decent credit.

$500 $50,000 8.0% 12.0% None NoneKathy Wallace309‐691‐3790

https://www.woodforest.com/Business‐Banking/Products/Loans 

Loan Amount Interest Rate Fees

Ave. $6,000

STARTUP & WORKING CAPITAL LOANS ‐ UNDER $15,000

REALIZING YOUR PROJECT – Obtain Funding (Micro-Loans)

M-BIG - Presentation Outline

1. Grant Purpose & Overview2. Realizing Your Project3. Applying for the M-BIG4. 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 PeoriaEconomic Development

Cesar SuarezSenior Development Specialist

City of Peoria419 Fulton StreetPeoria, IL 61601

309-494-8645csuarez@peoriagov.org

For Questions Contact!