margaret somer, regional director small business development center, northeast mass salem state...
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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
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…)
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..)
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
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.
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
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)
SBIR / STTR Resources
• www.sbirworld.com
• www.pnl.gov/edo/sbir
• Individual agency websites
• SBIR newsletters and email lists
• SBIR conferences and workshops
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
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
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
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
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
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