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Margaret Somer, Regional Director
Small Business Development Center, Northeast Mass
Salem State College
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Massachusetts Small Business Development Center Networkwww.msbdc.org
Network funding & key partnersU.S. Small Business AdministrationMA Dept. of Business & Technology UMass Amherst and other institutions
Small Business Development CentersCentral MA SBDC - Clark University - WorcesterNortheast MA SBDC - Salem State CollegeSoutheastern MA Regional SBDC – Fall RiverUMass Boston SBDC - BostonWestern MA Regional SBDC - Springfield Berkshires SBDC – Pittsfield
PTAC – Government Contracting
Mass Export Center
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GOVERNMENT FINANCING FOR BUSINESS
Why does government provide business financing and services?
To stimulate technological & scientific innovation and the development of new products that government seeks, (SBIR R&D grants for new products in defense, environmental contamination…)
To generate economic activity, jobs and business opportunities
To promote and retain employment and upgrade workforce skills, (Massachusetts Workforce Investment Fund…)
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GOVERNMENT FINANCING…
To create new financing models for the private sector to adopt (MTDC’s financing of early stage technology companies in the ‘70s; minority business financing; affordable housing in the ‘80s, …)
To support projects with significant economic impact (ATMP – Advanced Technology & Manufacturing Ctr. in Fall River; Devens, a former MA military base located in four towns; Enterprise Center in Salem)
To leverage and stimulate private sector investment (SBA loan guarantees, quasi-public financing..)
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FEDERAL GOVERNMENT – BUSINESS FINANCING
• U.S. Small Business Administration – www.sba.gov
• SBA Loan Guarantees
• SBA 504 Program – acquisition of property equipment, etc. (the business finances 10%)
• Disaster Loans
• Export loans
• SBIR - Small Business Innovation Research Grants
• STTR – Small Business Technology Transfer Grants
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SBIR - Small Business Innovation Research Grants• 2.5% set aside from federal agencies since 1982
• Stimulate technical innovation in small business communities to meet federal R&D needs – and commercial potential
• PI must be employed by small business
STTR – Small Business Technology Transfer• Stimulate scientific and technological innovation through cooperative
R&D carried out by small businesses and research institutions.
• Foster technology transfer between small businesses and research institutions.
• PI may be employed by small business or research partner.
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SBIR / STTR – 3-Phase Program
• Phase 1:
• Up to $100K and 6-12 month award - Feasibility study
• Phase 2:
• Up to $750K and 2-year award
• Full research / R&D
• “Phase” 3:
• Commercialization stage
• Company raises funds on its own
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SBIR - Small Business Innovation Research Grants
• Who participates? 66% have 2-24 employees.
SBIR / STTR – Criteria – Phases 1 and 2
• Strength of scientific/technical aspect of work
• Ability to carry out project in cost-effective manner
• Project or commercial impact on US economy
• Evidence of commercial potential (Phase 2)
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SBIR / STTR Resources
• www.sbirworld.com
• www.pnl.gov/edo/sbir
• Individual agency websites
• SBIR newsletters and email lists
• SBIR conferences and workshops
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MASSACHUSETTS QUASI-PUBLIC
LENDERS & INVESTORS
• Mass Technology Development Corp. – MTDC
• Mass Technology Collaborative• MassDevelopment – Funds such as Emerging
Technology Fund for tech-based manufacturing facilities & equipment
• The Business Development Company • MA Community Development Finance Corp. – CDFC
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MASSACHUSETTS QUASI-PUBLIC
LENDERS & INVESTORS
• MCRC - MA Capital Resource Company • MCRC’s Life Insurance Initiative – capital for
economic development
• Property & Casualty (Insurance) Initiative – Community Development Initiative
• MA Economic Stabilization Trust - manufacturing
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MASSACHUSETTS QUASI-PUBLIC LENDERS & INVESTORS – (and many more focused on later stage companies)
Mass Technology Development Corp. - www.mtdc.com• Equity & sub debt for early stage technology companies since 1982• Usually $250-$500K• Jobs – leverage – technical innovation – nurture entrepreneurship
Mass Technology Collaborative - www.mtpc.org
• Debt/equity for renewable energy technology firms
Massachusetts Workforce Training Fund - www.detma.org/workforce
• Matching grants for workforce development
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CITIES, MICROLOAN FUNDS, NON-PROFITS
• Debt and microloans for gap, business and project financing
• Business incubators with a range of services and networks (ATMP, Enterprise Center at Salem State College)
Loan Funds: City of Lynn, MA Microloans up to $35,000 Term loans up to $350,000 Loans up to $3 million for major development
projects
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Other Interesting Resources…
Circle Lending –www.circlelending.com Manages lending among family and friends -
MA Alliance for Economic Development-www.massecon.com Assistance with site location
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Margaret Somer, Regional DirectorSmall Business Development Center (SBDC)
Northeast Region - Salem State College121 Loring Ave., Suite 310
Salem, MA 01970
Tel. 978-542-6343, x. 1
www.salemstate.edu/sbdc