City of Ventura Business Assistance & Enhancement Program November 15, 2010 Sid White, Economic Development Manager City of Ventura Bruce Stenslie, President/CEO.

City of VenturaBusiness Assistance & Enhancement Program

November 15, 2010

Sid White, Economic Development ManagerCity of Ventura

Bruce Stenslie, President/CEOEconomic Development Collaborative

Ventura County

Business Development Programs

Business Enhancement Program (BEP) Free and Confidential assistance for businesses

(w/ EDC-VC, SBDC, SCORE, WEV, WIB) One-on-one consulting Technical assistance Agency referrals

Business Assistance Loan Program (BAP) Provides up to $125,000 in low-interest loans

($250,000 w/ EDC-VC) Commercial Rehabilitation Code Compliance Business Development

Business expansion & growth Increase business profitability Create new jobs

Turnaround assistance for small businesses in crisis Keep business in business Retain jobs, avoid layoffs

Business Start-up, Entrepreneurship

One-on-One Professional Consultation Bench of Experts

Confidential Service

No Cost for Services

Business Enhancement Overview

BEP Marketing

• Business License List

• Ventura Magazine

• Community Councils

• DVO/P Newsletter

• Ask the Director

• Word of Mouth

• Face to Face

Current Downtown Business Outreach Activity

Direct, personal visits to 80 select downtown business owners

In response to “what we heard” -- organizing a Downtown Business Workshop with DVO/P focusing on “Social Media” Marketing for Holidays.

Professional, no cost, confidential follow-up consultation with approximately 25 businesses

EDC-VC and Small Business Development Center/SBA resources, and/or referral to other expertise, and/or Loan Program Officer.

Business Enhancement Forums

• Multiple sponsors, Chamber Partnership

• Over 140 business attendees

• Direct follow- up with more than 35 businesses

• Better than a 4.5 positive rating on a 1 - 5 scale

• Scheduling next for after first of year

Business Enhancement Forums

Program Partners

• Economic Development Collaborative-Ventura County

• Small Business Development Center Network and SBA

• Ventura Chamber of Commerce, Local & Regional Banks

• SCORE, Women’s Economic Ventures

• Workforce Investment Board of Ventura County and Ventura County Job & Career Centers

• Ventura County Community College District

• California Manufacturing Technology Consulting

• Ventura County Regional Energy Alliance

• Southern California Edison & The Gas Company

Business AssistanceLoan Program

Improve Business Access to Capital for: Small Business/Micro-Enterprise Development Commercial Rehabilitation Code Compliance

Overcome Barriers to Entrepreneurship

Provide a Pool of Capital for Direct Lending when Commercial Credit is Unavailable

Connect Businesses to Other EDC-VC Loan Funds & Lenders, SBA Programs, Leverages Bank & Owners’ Equity

Aligned with Economic Development Strategies

Business Assistance Loan Program History

Program Inception in Years 1999/2000 $600,000 Commercial Rehab Loan Fund

Downtown Redevelopment and Westside Revitalization Areas (added Midtown in 2002)

$330,000 Code Compliance Loan Fund Citywide

$250,000 +/- Community Development Block Grant (CDBG) “Annual” Allocation

Working Capital Micro-Loan Program

BAP Marketing

• Business License List

• Ventura Magazine

• Community Councils

• DVO/P Newsletter

• Ask the Director

• Word of Mouth

• Face to Face

Business Loan Program Performance

Since Program’s Inception in Year 2000 48 Business Entities Assisted 78 Loans Issued Over 145 Jobs Retained Over 160 Jobs Created ($15,574 per job created)

Total Loans Funded: $2,491,862 Defaults & Loan Losses: $268,303 Default Ratio: 10.77% (SBA 13-15%) Total Loan Pool Performance, Including Interest

Earned on Loans, Is Positive, “Principal Intact”…

EDC-VC Partnership & Role

Full-time professional loan officer, loan recommendations approved by a bank-professional led loan board

Focus on client’s business plan & city’s policy objective to create at least one job per $25,000 loaned

Loan review process includes extensive, professional business development assistance

Rigorous credit standards, though more flexible than commercial credit Three years of financial statements or projections Collateral includes business assets, personal guarantees,

UCC-1 filing

Diversity of Loan Recipients

Of the 47 loan recipients, primary concentration in Downtown Redevelopment Area

Outside Downtown, recipients include manufacturers, others with high wage jobs

Recipients include: restaurants & hospitality industry professional & technical services retailers & wholesalers information technology

Next Steps

Continue targeted outreach; free, confidential, professional assistance

Downtown Business Workshop Specific Topic Workshops Major Forum in early 2011-

partnership focus

Continue evaluation/tie-in lending priorities with City’s ED Strategy

Balance “quality of life” service businesses, high value/wage industries…retain existing jobs, too!

Increasingly seek out innovation & entrepreneurship

For Additional Information

Sid White, ED Manager – CD Dept. [email protected]

805-654-7819

Bruce Stenslie, [email protected]

805-384-1800, ext 24