MINORITY BUSINESS IMPLEMENTATION GRANT (M-BIG) … · 2018-01-22 · M-BIG - Presentation Outline...

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 – 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)

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



Define Resources

Itemize Budget

Develop Workplan

Obtain Funding



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”?



Define Resources

Itemize Budget

Develop Workplan

Obtain Funding



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)



Define Resources

Itemize Budget

Develop Workplan

Obtain Funding



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?



Define Resources

Itemize Budget

Develop Workplan

Obtain Funding



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


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


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 – 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

[email protected]

For Questions Contact!

MINORITY BUSINESS IMPLEMENTATION GRANT (M-BIG) … · 2018-01-22 · M-BIG - Presentation Outline...

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