Center for Rural Affairs Rural Enterprise Reporter

M i c r o B u s i n e s s S u p p o r t & I n f o r m at i o n E x c h a n g e | w w w. C F R A . o r g / R E A P

C e n t e r f o r R u r a l A f f a i r s | Ly o n s , N E | P o p u l at i o n 8 5 1 | O c t o b e r 2 0 1 6 , I s s u e N o . 3 3

F r o m t h e R u r a l E n t e r p r i s e A s s i s ta n c e P r o j e c t D i r e c t o r

Providing Access to Core Business Development Services for Rural EntrepreneursB y J e f f R e y n o l d s , R E A P P r o g r a m D i r e c t o r , j e f f r @ c f r a . o r g

Fiscal Year 2016 was a record-setting year for Center for Rural Affairs’ Rural Enterprise Assistance Project (REAP). In 2016, we placed and leveraged over

$2.9 million in loans and reached significant numbers of women and Latino entrepreneurs across Nebraska.

We are respected nationally as an outstanding microenterprise development program that serves rural entrepreneurs and small businesses in Nebraska. REAP is the largest rural microenterprise development program in the Unit-ed States.

P R O D U C T I O NUse of microenterprise and

small business services is at an all-time high, which truly speaks to the ability and capacity of our staff to produce results.

Staff members are working hard to reach as many rural entrepre-neurs as possible. We are making a major difference through tough times, and look to continue build-ing the scale and efficiency of the program.

During fiscal year 2016, REAP provided assistance to 2,372 en-trepreneurs. Over 75 percent of entrepreneurs served were low to moderate income. More than 63 percent were women, and 48 per-cent were Latino. REAP placed 123

loans totaling $1,739,880 and lev-eraged an additional $1,172,088 from other sources due to our loan packaging assistance. REAP lending and counseling during this time frame helped create or retain 688 jobs (258 due to lending only).

Since inception in 1990, we have placed 1,266 loans totaling $14,103,011 while leveraging an additional $22,243,415 from other sources, thanks to assistance from

our staff.

I N N O VA T I O NWe have a national reputation

for innovation and for meeting the evolving needs of today’s start-up and existing entrepreneurs in Nebraska.

Our staff serves all populations in rural Nebraska, including the expanding Latino population. In

—See Providing Access on page 3

$2.9 million in loans

in 2016

About the ReporterThe Rural Enterprise Reporter is

published annually by the Ru-ral Enterprise Assistance Project (REAP) of the Center for Rural Affairs. It reviews activities over the past year. To view it online, visit cfra.org/publications.

To correct your mailing ad-dress, email info@cfra.org or call 402.687.2100.

Center for Rural Affairs

Mission StatementEstablish strong rural commu-

nities, social and economic justice, environmental stewardship, and genuine opportunity for all while engaging people in decisions that affect the quality of their lives and the future of their communities.

REAP FocusFostering small business growth

in rural areas.REAP is funded by the Small

Business Administration (SBA Mi-croloan Program and SBA Women’s Business Center), United States Department of Agriculture, Nebras-ka Business and Innovation Act through the Nebraska Department of Economic Development, United States Department of Treasury, various foundations and from gracious donations from interested citizens.

This institution is an equal oppor-tunity provider and employer. All SBA funded programs and services are extended to the public on a non-discriminatory basis. Reasonable accommodations for persons with disabilities and/or persons with limited English proficiency (LEP) will be made if requested in advance.

Printed at West Point News, West Point, Neb.

2 Center for Rural Affairs October 2016

A Gold Medal, continued from page 8impact in the communities we serve.

From 2011 to 2015, REAP awarded 78 loans to Latino small businesses totaling $1,062,928. Since September 2015, we have approved 36 loans totaling $470,350, serving 1,147 partici-pants.

The future is even brighter. Starting in fiscal year 2017, REAP begins a Credit Builder Loan Program that will submit pay-

ment history to the three larg-est credit bureaus in the nation (TransUnion, Equifax and Experi-an).

We also continue to build the New American Loan Fund, a pri-vate fund that helps Latino bor-rowers access funds to start and grow their businesses, products and services. The program is able to make loans up to $150,000.

It is hard to believe REAP start-ed in 1990, lending $2,000.

Panhandle Region: More than 62 students took a QuickBooks basic training course and received one-on-one assistance in Quick-Books.

South Central Region: Linda Kuhlman and Jodie Harper started a business utilizing an abandoned restaurant near Minden. At South Side Diner, LLC, the duo serves up hearty, made-to-order breakfasts and delicious, quick lunches. They received a REAP loan and tech-nical assistance including book-keeping and online/social media marketing.

Southwest Region: 15 partic-ipants attended a Business Plan Basics class in North Platte in May 2016. With successful completion of the course and a written busi-ness plan with financial projec-tions, participants are eligible to receive a $1,000 Business Plan Basics Boost Loan to implement their plan. Some participants use the funds to increase their pres-ence in different markets and to increase inventory.

Southeast Region: Mitzi Sny-der and her husband applied for a REAP loan and purchased a build-ing, opening Mitzi K’s Day Spa & Salon. Mitzi is an esthetician and

has had a skin care business in Beatrice since 2008. Mitzi K’s cur-rently employees nine staff.

Northeast Region: With a loan and business support from REAP, Arcadio Zepada purchased a food truck and opened Tu Casa in Madison in 2004. He moved the truck to Norfolk seven years ago. Recently, Arcadio and his brother, Ebodio, moved into a restaurant space.

That’s Impressive: a sample of accomplishments in FY 2016

North Central Region: Kristy and Greg Parr recently moved Custom Sports to Norfolk with the help of a REAP loan. The business offers custom embroidery and screen printing, and has nine employees including family members.

October 2016 Center for Rural Affairs 3

response to this growing segment of our population, we have devel-oped and launched the New Ameri-can Loan Fund.

The New American Loan Fund’s purpose is to offer loan products that lower barriers to access and provide capital that allows for job creation in the Latino community.

Our services are based in our belief in diversity, inclusion and equity, and in our commitment to creating opportunity for rural Lati-no entrepreneurs.

The New American Loan Fund works outside the margins of con-ventional financing systems while creating an entry point for new Americans to eventually access the mainstream system. The fund speaks from and for the experienc-es and needs of unconventional markets.

Additionally, REAP recogniz-es that building a positive credit history is difficult for many en-trepreneurs, especially those who are unable to access traditional financing or who use institutions that do not report loan payments to major credit bureaus. In re-sponse, we are developing a Credit Builder loan product for small businesses. We will roll out this new and innovative loan product in fiscal year 2017.

E V O L U T I O NWe continually assess the best

way to deliver services and tailor products and services to fit the needs of today’s entrepreneurs.

Big changes are taking place in 2017 and future years. Center for Rural Affairs staff has successfully navigated the rigorous process of becoming a certified Community Development Financial Institution (CDFI) in October 2013, creating a wholly-owned subsidiary corpo-ration called the Rural Investment Corporation (RIC).

The CDFI-certified RIC contin-ues to raise loan capital. It suc-cessfully launched a new small business lending product with a maximum loan limit of $150,000 in fiscal year 2016.

We are also working on changes and updates to online assistance

items, new and innovative loan products, and new collaborations with programs and organizations throughout Nebraska and the United States.

We’ll keep you updated on prog-ress with these and other cut-ting-edge changes with REAP and the Center for Rural Affairs.

The REAP program strives to achieve maximum scale in rural Nebraska. We are committed to strengthening rural communities through small, self-employed busi-ness development.

We are proud to make a criti-cal difference for all start-up and existing small businesses in rural Nebraska that are in need of core small business services.

Providing access, continued from page 1

The Center for Rural Affairs has a certified Com-munity Development Financial Institution (CDFI) that is housed in the Rural Investment Corporation (RIC).

A CDFI is a specialized financial institution ded-icated to serving low-income individuals and com-munities that lack access to financial services from mainstream financial institutions. CDFIs offer a number of services including loans for small and mi-cro-sized businesses and also provide services such as business planning and one-on-one counseling.

The RIC was officially certified as a CDFI in Oc-tober 2013, and offers small business loans up to $150,000. The first loan above $50,000 was made in fiscal year 2016.

The mission and purpose of the RIC is “Providing of financing and technical assistance in support of com-munity development, including start-up and expan-sion of small businesses, creation of jobs and other community assets, improving access to services and ownership opportunities especially for low-income or otherwise disadvantaged people.”

2,372 entrepreneurs assistedin fiscal year 2016

About the Rural Investment Corporation

Loans are available up to

$150,000

October 2016 Center for Rural Affairs 5

The Rural Enterprise Assistance Project (REAP), a program of the Center for Rural Affairs, is a small business development program. It includes three core components: business management training, a loan fund and technical as-sistance. Services are delivered through regionally placed loan specialists who are the vehicles for implementing services throughout the state.

REAP is the largest full-ser-vice microenterprise development program in Nebraska and strives to serve all of the state’s rural areas. We operate Nebraska’s first Women’s Business Center (WBC) and also reaches out to Latino entrepreneurs through the Latino Business Center. Staff members are included in the Rural Invest-ment Corporation (RIC), which is a subsidiary corporation of the Center for Rural Affairs and is a certified Community Development Finance Institution in Nebraska.

The goal has always been to meet the debt financ-ing needs of start-up and existing micro and small business entrepreneurs in rural Nebraska – individu-ally or by collaborating with partners.

T e c h n i c a l A s s i s ta n c eStaff are available for one-on-one technical

assistance with business owners or managers. Businesses may be existing or start-up businesses of all types. Assistance includes:

• Business planning assistance and troubleshoot-ing consultations.

• Cash flow and budget assistance.• Loan packaging assistance.

B u s i n e s s T r a i n i n g• The WBC collaborates with local economic devel-

opment entities to host Business Plan Basics Train-ings or other special small business trainings based on local interest.

• Regional workshops and WBC’s training activities are available periodically throughout Nebraska.

M i c r o a n d s m a l l b u s i n e s s F u n d A c c e s s • Direct Lending - Participants are eligible for loans

up to $50,000.• Online Lending System – Applications for REAP

Rapid Loans up to $10,000 and loans up to $20,000

can be completed online. The online application can be used for the pre-application for business loans from $20,001 to $50,000. www.cfra.org/reap/ols

• Quick GROW Express Loans – GROW Nebraska members are eligible for loans up to $10,000. Appli-cations can be completed online. www.cfra.org/reap/quickgrow-online

• Small Business Lending – Participants are eligible for small business loans up to $150,000.

• Additional loan products currently piloted or soon to be piloted:

1. Alice Integrity Loan Fund2. REAP Business Plan Basics Boost Loan3. REAP Credit Builder Loan

• New American Loan Fund.• All entrepreneurs may receive loan packaging

assistance as needed.

L e v e r a g e d L E n d i n g As part of our technical assistance services, busi-

ness planning is provided, resulting in over $1.1 million of leveraged lending in fiscal year 2016.

There have been many cases where a client has completed their business plan in consultation with their area loan specialist and has been able to secure a loan from a traditional lender, development district, community action agency or local loan fund.

Staff have also helped in packaging loans that would include other lenders in addition to REAP’s loan fund.

Since 1990, we have leveraged loans totaling over $21 million.

Fostering Small Business Growth in Rural Areas

The hard working REAP staff is pictured here at a retreat. They cover the entire state of Nebraska and offer services in both English and Spanish. In fiscal year 2016, REAP placed 123 loans totaling $1,739,880 and leveraged an additional $1,172,088 from other sources.

6 Center for Rural Affairs October 2016

R E A P W o m e n ’ s B u s i n e s s C e n t e r

Training and Technical Assistance ProvidedB y M o n i c a B r a u n , W o m e n ’ s B u s i n e s s C e n t e r D i r e c t o r , m o n i c a b @ c f r a . o r g

From September 2015 through May 2016, Wom-en’s Business Center spe-cialists and contracted technical assistance provid-ers delivered 2,592 hours

of business counseling to 733 clients.

We have provided 138 training opportunities to 1,187 individuals. 67 percent of those trained were women. 224 start-up businesses have received assistance.

In the last year, the Women’s Business Center:

• Hosted the InnovateHER Challenge, with the Nebraska Dis-trict Office of the Small Business Administration. Five businesses, whose products or services posi-tively impact women, competed for prize money. Amy Johnson with LifeLoop, LLC, advanced to the national competition.

• Partnered with Nebraska Tour-ism Commission to sponsor the Agri-EcoTourism Conference-Your Resource MarketPlace in Grand Island, with 100 in attendance.

• Collaborated with local eco-nomic development agencies and educational institutions to host four Business Plan Basics ses-sions in Broken Bow, Beatrice,

North Platte and Red Cloud. Latino-targeted series were held in Schuyler and South Sioux City. A variety of business types partici-pated, including home-based and storefront businesses, as well as start-up and existing businesses.

• Continued its collaboration with the University of Nebraska Entrepreneurship Clinic. Presenta-tions on legal structures are made by third- and fourth-year students. Law students assist business own-ers in determining the best legal structure for their businesses and assist with the filing documents. The University of Nebraska-Lin-coln Entrepreneurship Clinic stu-dents presented a session at the Agri-EcoTourism Conference-Your Resource MarketPlace.

• Partnered with GROW Ne-braska to hold the MarkeTECH conference and pre-conference in Kearney.

• Used the Mobile Laptop Lab across the state for QuickBooks training with REAP clientele. Ses-sions were held in Lewellen, Hyan-nis, Scottsbluff, Norfolk, Wayne, Superior, North Platte, Grand Island, Schuyler, Kearney and Chadron. Approximately 130 busi-nesses have been assisted. The laptops are also used for computer

training and e-commerce training.• Hosted Starting Up–What

Women Need to Know to Start a Business conference in August in collaboration with the Small Busi-ness Administration Omaha Dis-trict Office and FDIC. Sessions ad-dressed strengths and weaknesses of entrepreneurs and cash flow, with a lender panel and a wom-an entrepreneur sharing lessons learned. Sessions were presented in English and Spanish.

• Held two seminars in Lincoln in collaboration with Community Development Resources: Online Marketing Strategies, and Sales and Use Taxes.

• Held two seminars on Federal Contracting and Certification as a Woman Owned Small Business in collaboration with the Small Business Administration Oma-ha District Office and Nebraska Business Development Center’s Procurement Technical Assistance Center. Seminars were in Lincoln and Hastings.

• Sponsored a monthly Wom-en’s Roundtable in Seward. Local women business owners gathered to network and brainstorm ideas, discuss cooperative marketing opportunities and support each other.

The Women’s Business Center sponsored Diane Siefkes, a social media consultant, to present Online Marketing Strategies sessions in Cambridge (pictured), Seward, Lincoln, Brownville, Geneva, McCook, Benkelman, Chadron, Scottsbluff, Sidney, Wahoo, Minden, Beatrice, Central City and Sargent. About 150 businesses, resource providers and nonprofits attended the seminars, co-sponsored by local economic development agencies.

October 2016 Center for Rural Affairs 7

REAP Staff Kept Busy During Fiscal year 2016O p p o r t u n i t y F i n a n c eN e t w o r k C o n f e r e n c e

Staff Jeff Reynolds, Juan San-doval, Dena Beck and Kim Preston attended the Opportunity Finance Network Conference in Detroit, Mich., in November 2015. The conference provided an opportu-nity to further explore the possi-bilities of obtaining Community Development Financial Institution status. Staff made a number of key contacts.

A s s o c i at i o n f o r E n t e r p r i s e O p p o r t u n i t y

Several staff attended the Asso-ciation for Enterprise Opportunity national conference in Washington, D.C. in May 2016. This was the 25th anniversary of this conference and provided an opportunity for training as well as to improve tech-nical assistance skills.

N e b r a s k a E c o n o m i cD e v e l o p e r s A s s o c i at i o n

REAP participates with the Nebraska Economic Developers Association (NEDA), an association of professional economic developers dedicated to the prosperous growth of Nebraska’s business climate. Sev-eral staff attended the 2016 NEDA conference at South Sioux City in April 2016 and set up a booth.

S ta f f T r a i n i n gStaff received training through-

out the year on a number of topics through various venues in-cluding webinars and face-to-face trainings. One training was the National Development Council’s Business Credit Analysis course at Mesa, Ariz., in June 2016, at-tended by three staff.

A n n u a l A w a r d sAnnual awards were distribut-

ed at the Center for Rural Affairs

Awards Banquet in March 2016 at Columbus: REAP Friend of the Year, Pat Coldiron, Liberty House Bed & Breakfast, Seward; REAP Extra Mile Award, First Central Bank of Curtis; REAP Women’s Business Center Entrepreneur of the Year, Colleen Rickard, C-Pap Easy Clean, LLC, Axtel; and REAP Latino Business Center Entre-preneur of the Year, Arcadio and Ebodio Zepeda, Tu Casa, Norfolk.

The Center for Rural Affairs Entrepreneur Award, for an innovative person working with REAP who is in the forefront of microenterprise development, was awarded to Greg and Kristy Parr, Custom Sports, Norfolk.

P a r t n e r s h i p s a n d N e t w o r k i n gStaff members participate with

resource network meetings, U.S. Small Business Administration Resource Partner meetings, and in other groups such as the NET-Force, to keep abreast of what oth-er resource providers have to offer. These networks inform others about REAP services, keep refer-ral networks current, and help us assist clientele to the best of our abilities.

P l a n n i n g , P l a n n i n g, P l a n n i n gNumerous meetings were held

throughout the year on the devel-opment of a Community Devel-opment Financial Institution and other key program initiatives.

Latino Microenterprise AssistanceThe Latino Business Center

continues to grow, providing key business development services to rural Latino entrepreneurs. The program impacted over 1,100 Latino start-up and existing entre-preneurs during the past year. 46 Latino entrepreneurs obtained a REAP loan and/or leverage loan.

S u r v e y W o r kREAP is in the process of com-

pleting the fifth biennial “Small Business Needs Assessment Survey.” The survey, administered every two years, will help deter-mine the current needs of rural entrepreneurs in Nebraska. If you would like a program delivered to your community or organiza-tion, please contact Dena Beck, at 308.528.0060 or denab@cfra.org.

O f f i c e H o u r sLoan specialists continue to pro-

vide local office hours at numerous chamber and economic develop-ment offices across the state. The arrangement with local offices has provided an efficient way of meeting with clients, while building part-nerships with community leaders.

C o l l a b o r at i o nWe collaborate with many or-

ganizations and individuals. For example, REAP, Community De-velopment Resources and Catholic Charities-Microbusiness Training and Development Program, formed a collaboration informally known as the Nebraska Small Business Collaborative (NSBC).

The NSBC provides microen-terprise businesses technical assistance and micro-loans in all distressed areas of Nebraska.

Staffer Janelle Moran was recognized for 10 years of employment by Brian Depew, Center for Rural Affairs executive director.

Jeff Reynolds, REAP Program Director,402.656.3091, jeffr@cfra.org

Monica Braun, Women’s Business Center Director, 402.643.2673, monicab@cfra.org

Juan Sandoval, Latino Business Center Director, 402.371.7786, juans@cfra.org

Dena Beck, Senior Project Leader & Southwest/Central Loan Specialist, 308.528.0060, denab@cfra.org

Gene Rahn, Northeast/Central Senior Loan Specialist, 402.925.2920, gener@cfra.org

Jerry Terwilliger, Panhandle Loan Specialist, 308.247.9926, jerryt@cfra.org

Janelle Moran, Southeast Loan Specialist, 402.335.3675, janellem@cfra.org

Nancy Flock, Latino Loan Specialist, 308.534.3508, nancyf@cfra.org

Griselda Rendon, Latino Loan Specialist, 308.850.4820, griseldar@cfra.org

Kim Preston, REAP Administrative Assistant, 402.687.2100 x1008, kimp@cfra.org

Questions?Contact one of our helpful staff below!

Center for Rural AffairsR u r a l E n t e r p r i s e A s s i s ta n c e P r o j e c t1 4 5 M a i n S t r e e t, P O B o x 1 3 6 | Ly o n s , N E 6 8 0 3 8 - 0 1 3 6

c f r a . o r g / r e a p | i n f o @ c f r a . o r g

Address Service Requested October 2016

R E A P L at i n o B u s i n e s s C e n t e r

A Gold Medal In Your Own CommunityB y J u a n s a n d o va l , L at i n o B u s i n e s s C e n t e r D i r e c t o r , j u a n s @ c f r a . o r g

Traveling to conferences seems to be the perfect way to get away, stop working, and get to know new places you haven’t visited yet.

Many clients think I take three or four vacations a year and have a robust budget for shop-ping, eating out and entertain-ment.

The comparison reminds me of a picture I saw on Facebook about the value of a house and how it is seen by the lender, the seller, the buyer, your appraiser and your tax assessor.

The opportunity to meet people and learn new things is what real-ly makes the difference. I attended the SCORE National Conference in St. Louis, Mo., in August, where the sessions were as vital to me as

the coffee I need to begin the day.Sessions “Engaging your Com-

munity” and “Leading an Inclusive Chapter” were at the top of my list to attend.

Why? Because we live in a di-verse world. We as leaders should reflect the communities we serve. We build relationships with people of different religions, sex, ages and backgrounds. And we make our clients feel valued and respected, because our clients are diverse.

Our staff live and believe in our mission. You can see how power-ful this is.

The Latino Business Center staff is extremely competitive not only because our production directly impacts our budget, but also because we are making an

—See Gold Medal on page 2