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Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College
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Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

Dec 17, 2015

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Page 1: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

Margaret Somer, Regional Director

Small Business Development Center, Northeast Mass

Salem State College

Page 2: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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

Page 3: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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…)

Page 4: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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..)

Page 5: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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

Page 6: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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.

Page 7: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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

Page 8: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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)

Page 9: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

SBIR / STTR Resources

• www.sbirworld.com

• www.pnl.gov/edo/sbir

• Individual agency websites

• SBIR newsletters and email lists

• SBIR conferences and workshops

Page 10: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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

Page 11: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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

Page 12: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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

Page 13: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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

Page 14: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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

Page 15: Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College.

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

[email protected]

www.salemstate.edu/sbdc