Business Development and Self-Employment
Scroll Down for Menu of
Resources
The following business development and self employment resources offer business assistance, information and possible sources for funding. The Region 6 Rehabilitation Continuing Education Program (RRCEP) wishes to thank and acknowledge the excellent work of the
24th Institute on Rehabilitation Issues (IRI)
for their 1998 publication entitled "People with Disabilities Developing Self-Employment and Small Business Opportunities". Many of the following business resource sites and accompanying summary information was taken from this publication as compiled by the IRI Prime Study Group.
https://www.disability.gov/employment
Business Development Resources
Arkansas Support Network
(The Arkansas Support Network offers Self-Employment Loans "to
support the development of Self-Owned Business Opportunities for
Disabled People." Applicants must meet the following criteria to
submit an application through the Loan Review Committee: "1.)
have a developmental disability, 2.) have or are ready to
operate a small business, 3.) have a need for credit, 4.) have a
business plan that demonstrates a.) the ability to operate with
limited overhead expense, b.) the ability to repay the loan
through increased earnings, c.) listing of specific purchases or
expenses to be incurred, and d.) a step-by-step approach to
growing the business over time." The Arkansas Support Network
states that "a program of training and technical assistance will
be provided to assist the applicant throughout the term of the
loan. Telephone contact is at 501 273 0338 or 1 800 748 9768.)
Disabled
Businesspersons Association
(The Disabled Business persons Association (DBA) is a national
501(C)(3) nonprofit, public charity and educational organization
founded in 1991 to help disabled entrepreneurs and professionals
maximize their potential in the business world, and to encourage
the participation and enhance the performance of the disabled in
the workforce.)
Rural Institute on
Disabilities (Nancy Arnold - Rm. 52 Corbin Hall University
of Montana Missoula, MT 59812 - 406-243-2469. The Research and
Training Center on Rural Rehabilitation services works with
Vocational Rehabilitation agencies and Independent Living
Centers to promote the use of self-employment and economic
development activities within those programs. As a result of
research it has developed a model state VR policy, implementing
procedures and a counselor curriculum.)
Bold Consulting Group
(Private consulting group that "provides resources, consulting
services, and training for organizations that want to start,
modify or expand entrepreneurship programs for people with
disabilities. Bold Consulting Group "works with government and
non-profit organizations on the development and management of
entrepreneurship programs for people with disabilities and is
dedicated to providing persons with disabilities the opportunity
to explore entrepreneurship as an employment option.")
Wisconsin Innovation Service Center (WISC)
University of Wisconsin, Whitewater. WISC conducts market
and technical feasibility assessments of new product ideas. WISC
offers an affordable way for inventors and entrepreneurs to have
their ideas evaluated and get enough information to make
well-informed decisions on the further development of their
products. To order more information about the Wisconsin
Innovation service Center, contact them at 414-472-1365.
Partnership Development
Group, Inc. (Partnership Development Group, Inc. is a
national consulting firm that focuses on self-employment for
persons with disabilities. Services include program planning and
design, regional and local market analysis, entrepreneurship
training, staff development, client tracking and evaluation.
Mailing address is 1215 Annapolis Road, #202, Odenton, MD 21113.
Contact via telephone at 301 596 1020 and/or fax at 410 519
1208.)
The Abilities Fund
(The first and only nationwide community developer and financial
lending institution committed exclusively to advancing
entrepreneurial opportunities for people with
disabilities, provides resources and assistance to individuals
with disabilities pursuing entrepreneurship, training and
technical assistance to nonprofit organizations to increase
their capacity to serve individuals with disabilities,
and support to governmental agencies to develop practices,
policies and relationships that will serve the needs of their
consumers who wish to make self employment their vocational
goal.)
Business Development Directories
Most states or regions within a state publish statewide or
regional directories. They may have different titles but look
for something similar to the Montana Business Assistance &
Community Development Resource Directory or the Business
Resource Directory: A Practical Guide to Financing and Business
Development services in Southwestern Pennsylvania. Generally
they provide program descriptions so individuals can locate the
services or organizations that can address their specific
question or need. For example, the Montana directory contains an
index of agencies, organizations and programs; then divides the
programs into finance and tax incentive programs, technical
assistance programs, industry and government associations, and
local office listings for statewide and regional programs. Then
local resources are provided. First is an alphabetical list of
organizations by name followed by the resources that are
available in each county. Brief descriptions of each program are
provided. The Southwestern Pennsylvania Directory is organized
so business owners searching for a particular service or
financing tool can find what they need by referring to a
business resource matrix. This is followed by program
descriptions. Some of the resources listed for the Pittsburgh
area in the Southwestern Pennsylvania Directory include:
Pittsburgh Vision Services, Business Enterprise Venture, Ben
Franklin Technology Center University of Pittsburgh-SBDC
Duquesne University-SBDC, SCORE (local chapter), Allegheny
County MBE/WBE Certification Program, Small Business
Administration, Urban Redevelopment Authority of Pittsburgh,
Minority Enterprise Corporation of Southwestern PA, Minority
Business Administration, City of Pittsburgh Community Loan Fund
of Southwestern PA.
Colleges and Universities
Many colleges, community colleges, and universities house
programs that assist prospective or current business owners with
business development activities. For example, many business
schools conduct classes where the students work with a business
owner to conduct market analyses, feasibility studies, or to
develop business plans, or will assist a business with similar
activities once it is operating. Business school interns also
are a possible resource to assist with business development.
Small Business Development Centers are aligned with units of
higher education. Many schools house business assistance centers
such as Montana Business Connections, which is located at the
University of Montana or technology assistance centers such as
the Wisconsin Innovation service Center.
Small Business Resources
Small Business Administration
(403 3rd St. S.W. Washington, D.C. 20416, 1-800-U-ASK-SBA.
SBA offers training, advocacy, and loan guarantees for small
firms in every state and works with thousands of lending,
educational, and training institutions. The U.S. Small Business
Administration (SBA) is one of the main sources of small
business assistance and funding in existence today. It was
created by Congress in 1953 to help America's entrepreneurs form
successful small enterprises. Today, SBA's program offices offer
financing, training and advocacy for small firms. These programs
are delivered by SBA offices in every state, the District of
Columbia, the Virgin Islands and Puerto Rico. In addition, the
SBA works with thousands of lending, educational and training
institutions nationwide. The U.S. Small Business Administration
recently refocused its efforts to provide customer-oriented,
full-service programs and accurate, timely information to the
entrepreneurial community. The SBA provides financial assistance
in the form of loan guarantees rather than direct loans. The SBA
does not provide grants to start or expand a business. SBA
programs and services include business counseling and training;
lending programs; and special focus programs for international
trade assistance, women business owners and Native American
business owners. In most cases SBA staff are not experienced
with working with people with disabilities and their resources
may not be accessible to people with special needs. For example
materials may not be Brailled, computers may not have large
print readers or talking software and there are no
interpreters/communication support for persons who are deaf or
hard of hearing. Because of this, it is important that
counselors visit their local SBA Small Business Development
Center (SBDC) to acquaint themselves with the facility,
resources, and personnel and use that knowledge to determine the
accessibility or lack of it and the supports needed for a
consumer to access their services. One support may be that a
counselor accompany a consumer on one or more visits to the SBA
SBDC. (IRI Prime Study Group. "People with Disabilities
Developing Self-Employment and Small Business opportunities",
XXIV Institute on Rehabilitation Issues 1998, pp. 51-52)
One-Stop
Capital Shops (OSCSs) (SBA's contribution to the Empowerment
Zones/Enterprise Communities Program (EZ/EC). The EZ/EC program
is a federal interagency initiative that provides a variety of
resources to designated socially and economically distressed
communities. OSCSs provide centralized access to a full range of
SBA financial and technical assistance, as well as related
sources of other federal agencies, state and local governments
and the private sector. Business information centers, located
within the OSCSs, offer the latest high-tech hardware, software,
interactive videos, telecommunications and other tools for the
small business owner to provide access to market research
databases and assist with planning and developing spreadsheets.
Counseling is offered in all aspects of starting, running or
growing a small business. (XXIV - IRI, 1998, p. 52)
Corps of Retired Executives
(SCORE) (409 3rd Street, S.W., 6th Floor Washington, D.C.
20204 1-800-634-0245. The Senior Corps of Retired Executives
(SCORE) association is a resource partner with and sponsored by
the U.S. Small Business Administration (SBA). SCORE is dedicated
to aiding in the formation, growth, and success of small
business nationwide. It matches volunteers with small businesses
in need of expert advice. The volunteers, whose collective
experience spans the full range of American enterprise, share
their management and technical expertise with present and
prospective owners and managers of small businesses. There is no
charge for these services. There are almost 13,000 volunteers in
388 chapters and at 800 other locations. (XXIV - IRI, 1998, pp.
52-53)
Small
Business Development Centers (SBDCs) (SBDCs are administered
by the SBA to provide business development and management
assistance to current and prospective small business owners.
SBDCs are the result of the cooperative efforts of the SBA,
private sector, educational community, and state and local
governments. There are over 950 SBDCs in all 50 states located
primarily at colleges and universities. (XXIV - IRI, 1998, p.
53)
Tribal Business
Information Centers (TBICs)
(Currently there are 20 TBICs serving Native American
reservation communities in the states of Montana, North Dakota,
South Dakota, Oregon and the Navajo Nation. TBICs are SBA
resource partners. They offer small business owners computers,
one-on-one business counseling services and business management
workshops. (XXIV - IRI, 1998, p. 53)
Canada/British Columbia Business service Center (Hosted by
the BC government, this site is full of practical advice,
exploring tips on small business opportunities, and how to
become an employer.)
Costco Connection
(999 Lake Drive Issaquah, WA 98027 425-313-8510. Costco
publishes Costco Connection, a lifestyle magazine for small
businesses.)
Internal Revenue Service
(free products, developed especially for the Small
Business/Self-Employed person, and obtain updated information on
existing products. Order today online or by calling
1-800-829-3676.)
Sources and Information for Business
Start-Up and Expanding or Operating an Existing Business
The following information can be referenced in the XXIV
Institute on Rehabilitation Issues (IRI), 1998 publication
"People with Disabilities Developing Self-Employment and Small
Business Opportunities", pp. 53-58)
TERMS and LOAN INFORMATION
Owner's Equity - This is the owner's investment in the
business.
Partnership - Joining forces with a partner is a possible
strategy for providing either financial support for the business
or for the partners to bring to the business their respective
strengths. For example, a talented electrician who has limited
telephone, ordering, organizational, scheduling, customer
service, office, and bookkeeping skills could go into business
partnership with someone who is skilled in those areas.
Purchase Order Loan - The purpose of this type of loan is to
provide working capital to a business. This is a short-term loan
where funds are loaned for eligible costs against a signed
purchase order. The widespread availability of this type of loan
is unknown.
Equity Financing - Funding is provided in return for part
ownership. Ownership might be through a general partnership
where the individual participates in management, decisions, and
profit; limited partnership where there is no say in the
management or decision making and liability is limited to the
investment; and stockholders of a corporation who invest by
purchasing portions of the company.
Family & Friends - Family and friends are the most
frequently-used source of business financing. Often family and
friends are co-signers for bank loans.
Grant Money - Currently there is no stable and consistent
resource for grant monies for people with disabilities who want
to start businesses.
Loan Pools or Peer Lending - Using peer lending, loans are
based on the integrity of an individual and his or her character
not on assets or collateral. Borrowers form a group of 4 to 7
people for the purpose of borrowing monies to improve or expand
a small business. Each member of the "borrowing group" owns his
or her own business. Each member must prove to the group that
his or her business can repay any loan monies borrowed. It is
the responsibility of each member to repay his or her own loan.
All loans must be up-to-date and current before anyone can
borrow more monies. The group, as a whole provides monitoring,
networking and support. An example is Women's Economic Growth
(WEG) in Weed, California, which was formed in 1988 to improve
the economic self-sufficiency of women in Siskiyou County,
California. BankAmerica Community Economic Development
Initiative funds support WEG's peer lending program. WEG offers
training and technical assistance (in lending and borrowing),
peer support, and step-up loans ($1,000 maximum for the first
loan, $2,000 maximum for the second loan, etc., based on the
group's repayment history and overall performance). All of WEG's
services are designed to prepare borrowers to move on to other
public and private lenders. Peer lending groups complete a
six-week certification process so they may act as their own loan
committees. Group members work together to resolve business
problems and deal with delinquencies. This approach, while
labor-intensive, reduces the risks for both WEG and the
borrower.
Microloan Organizations - Generally these are nonprofit
agencies that make loans of less than $10,000, usually to
targeted groups. However, some agencies are providing larger
loans - up to $25,000.
Banks and Commercial Lending Institutions (including credit
unions) - These loans generally are hard to obtain. A potential
business owner will be expected to contribute a minimum of 10
percent towards the business before the bank will consider a
loan. Additionally, a bank will require collateral (e.g., real
estate, vehicle) or co-signer for the loan. Many commercial
lending institutions also offer the following loans that are
guaranteed through the Small Business Administration. However,
the author of one book (Zuckerman, L. 1990) states that most
banks will not make an SBA guaranteed loan for less than
$100,000.
Venture Capital -Venture capitalists invest in businesses
owned by people who are "experts in their field," with a high
profit margin, growth rate, and with a proven market.
Guaranteed Loan Program - These are loans made by private
lenders, usually commercial banks, on which payment is
guaranteed for up to 90 percent of the unpaid interest and
principal balance in event of default by the borrower. The
purpose of the guarantee is to assist the borrower in obtaining
loans from private lenders by providing additional collateral
needed to secure the loan.
FUNDING RESOURCES
Small Business Innovation Research Program (SBIR)
(This SBA program provides qualified small businesses with
opportunities to propose innovative ideas that meet the specific
research and development needs of the Federal Government.
Through a very competitive process, awards are given for a
feasibility study to evaluate the scientific and technical merit
of an idea. These are called Phase I awards and they are awarded
for up to 6 months. In Phase II awards are granted, again
through a competitive process, for up to 2 years to expand on
the results of Phase I. Phase III uses private sector or non
SBIR federal funds to commercialize the results of Phase II.)
SBA's
Microloan Program (This SBA program is offered through many
microloan organizations)
7(a)
Loan Guaranty (Through 7(a) the SBA guarantees loans to
small businesses that cannot obtain financing at reasonable
terms through normal lending channels. The program is designed
to promote small business formation and growth. Loans are
available for many business purposes, such as real estate,
expansion, equipment, working capital or inventory. The SBA can
guarantee 75 percent of the loan amount up to $750,000. For
loans of $100,000 or less, the guaranty rate is 80 percent. The
maximum interest rate is 2.75 over the prime lending rate. Loan
periods are for up to 10 years for working capital and up to 25
years for fixed assets. The following are the loan types offered
through the 7(a) program.)
Low Documentation Loan (LowDoc)
(This program was developed to reduce paperwork for loans of
$100,000 or less. In order for the lender to request a LowDoc
guaranty, the applicant must fill out a one-page application and
meet all of the lender's requirements. Approval relies on the
strength of the individual applicant's character and credit
history.)
CAPLines
(CAPLines is for financing a small businesses - short-term,
cyclical working-capital needs. CAPLines funds five types of
short-term working capital loans: the Seasonal, Contract,
Builder's, Standard Asset-Based, and Small Asset-Based. Under
CAPLines, the SBA generally can guarantee up to $750,000.)
FA$TRAK (This is a new loan program. It is being piloted
with selected banks nationwide. FA$TRAK encourages lenders to
make more small loans to the small business community.
Participating banks can use their own documentation and
procedures for loans of up to $100,000. In return, the SBA will
guarantee up to 50 percent of each loan.)
Minority and Women's Prequalification Loan
(This program allows the SBA to prequalify a guaranty for loan
applications of $250,000 or less before the applicant goes to a
bank. The program evaluates an applicant's key financial ratios,
business history, loan request terms, character, credit,
experience and reliability, rather than assets. Designated
intermediaries work with a business owner to review and
strengthen her loan application. This program is available
through a number of SBA district offices nationwide. To find out
if it is available in your area contact your nearest SBA
district office.)
Certified Development Companies (A Certified Development
Company is a nonprofit corporation set up to contribute to the
economic development of its community or region. CDCs work with
the SBA and private-sector lenders to provide financing to small
businesses. There are about 290 CDCs nationwide. Each CDC covers
a specific area. These organizations provide long-term,
fixed-rate financing to small businesses so they can acquire
real estate, machinery and equipment to expand their business or
to modernize their facilities. Typically, at least 10 percent of
the loan amount is provided by the borrower, 50 percent by an
unguaranteed bank loan, and the remainder by an SBA-guaranteed
debenture (maximum SBA debenture is $1 million).
Small Business Investment
Company Program (SBIC) (SBIC's provide capital to
small businesses through investment in the business or through
loans. They are privately owned. They use their own funds plus
funds obtained from SBA guaranties and/or from selling preferred
stock to the SBA to invest in businesses. SBIC's operate on a
for-profit basis. Although many SBICs invest in a wide variety
of opportunities some specialize in certain fields or seek out
businesses with new products or services with strong growth
potential.)
Small Business Investment
Companies
- SBA listing and information.
Surety Bond Guarantee
Program - SBA information on this program.
Minority and Women's Prequalification Loan
(This SBA program is offered through many microloan
organizations.)
Social Security Administration
(SSA)
(In 1994, the Social Security Administration began a more
concerted effort to increase employment of current and future
SSA disability beneficiaries with the goal of increasing
self-sufficiency and reducing dependency on the benefit roles.
The programs developed through this effort are called Social
Security Work Incentive programs. While most of these work
incentives are used when a person with a disability goes to work
for someone else, two of the programs, the Impairment Related
Work Expense program (IRWE) and the Plan for achieving
Self-Support (PASS) program, can be used for people who want to
start their own businesses. Of the two programs, PASS is used
most often for self-employment. This is interesting because for
those who qualify, money from PASS provides an additional source
of business funding that is not accessible to people without
disabilities.)
-
Plan for achieving Self-Support (PASS) -
Under this Social Security Work Incentive
Program, a person may set aside income and/or
resources over a specific period of time to fund
necessary goods and services to establish a
business or to become a partner in an existing
business. PASS funding may also serve as
auxiliary funding to more conventional loan and
business finance sources. The Social Security
Administration requires a written PASS plan and
a prepared business plan in order to authorize
the implementation of this resource.
Veterans Administration (The
Veterans Administration offers vocational rehabilitation
services for veterans whose disability is service connected.
Veterans with serious employment handicaps may receive
self-employment assistance. Veterans who qualify for assistance,
typically people with the most severe disabilities, are
considered to require self-employment to achieve a positive
rehabilitation outcome. These veterans may receive comprehensive
training, minimum stocks of inventory or supplies, essential
equipment, technical assistance through the period of start up
and incidental services such as business license fees.)
Rehabilitation Services
Administration (RSA) (Depending on an individual's needs VR
agencies may use Section 110 funds to assist with opening a
business. Amounts vary depending on the type of business.
Another use of VR funds distributed in this manner is that they
can be used to leverage funds from other sources such as a
microloan program.)
The Loan Process
The following information can be referenced in the XXIV
Institute on Rehabilitation Issues (IRI), 1998 publication "
People with Disabilities Developing Self-Employment and Small
Business Opportunities", pp. 58-61)
Although the process of obtaining a business loan may vary,
it generally includes the following steps. For this example, the
owner is seeking a loan of $50,000 and has good credit, ample
collateral, adequate service record equity or owner's investment
(a general rule of thumb is 10?33 percent of the total cash
needed to start the business), then chances are that the lender
will ask the borrower to complete a brief (two-page) financial
statement to evaluate the bank's ability to approve the loan.
The bank will consider the individual's character and credit
rating, ability to meet payment obligations and repay the loan,
capitalization of the business to insure that it is not
undercapitalized and owner investment. A bank may not always
request a business plan. However, it is likely to require one if
the business does not appear to have financial strength or if
additional information is needed. It usually is the
"nontraditional" lenders that require a business plan. These are
lending groups or agencies that have special programs or
financing for potential as well as established business owners.
Although these loans often are small when compared with bank
loans and they have more lenient lending requirements, a
business plan usually is required. The plan is required for
several reasons. Many of these organizations do not have the
stringent owner's financial strength requirements (assets and
equity) that banks do. Start-ups and "riskier" situations
need/require well-written plans for providing the feasibility of
the business idea. Banks tend to focus on financial strength
while nontraditional lenders tend to focus on feasibility
issues, possibly because banks tend to fund ongoing businesses
while nontraditional lenders tend to fund business start-ups.
There are many people who think that a business plan is
essential no matter who funds the business because it assists
with "thinking through" the business idea and examining key
issues should be considered prior to embarking on a business
venture. These considerations are questions that the lender will
want answered and that the borrower should be prepared to
answer. They include questions about marketing, such as who
makes up the target market, how will the target market be
reached, what research was conducted to learn about interest in
the product, the business, viability, the industry, competition,
what are the credentials of the business owner and any managers,
and what will the loan be used for (e.g., will it cover costs
and allow for additional working capital to avoid
under-capitalization). There are a number of places that can
provide assistance with developing a business plan including two
funded by the Small business Administration: Small Business
Development Centers, and SCORE. In addition to these two groups,
there are specific economic development resources, programs, and
organizations with their own unique services and/or perspectives
that vary from city to city. Many of the available programs are
concentrated in metropolitan areas, meaning that rural areas may
not have many resources within their immediate vicinity.
The presentation to the lender can make or break the loan.
After the financial plan is developed it should be reviewed for
accuracy so the plan presented to the lender is professional,
accurate and error free. To prepare for the funding meeting the
business owner should have prepared the proposal and know it
inside and out so he or she can answer all questions asked by
the lender and defend all assertions. This will help the
business owner be confident. He or she should dress
professionally and speak confidently. In some circumstances
there may be questions about the person's disability and his or
her ability to run the business. It is up to the borrower's
discretion, but it may help potential funders understand the
disability's impact on the business if it is addressed during
the meeting or in the business funding plan.
In a nutshell the applicant goes to the bank, the lender asks
for either a business plan or a personal financial statement,
the lender either is interested in making the loan based on
ample assets, collateral, good credit, etc., or the lender is
not comfortable and wants a guarantee to feel comfortable. If
the lender is interested in making a loan it goes through
various committees at the bank for approval. The time this takes
varies depending on the bank. If the bank does not feel
comfortable with making the loan, the lender decides to route
the application through SBA to get a government guarantee. This
usually takes two weeks. After SBA responds the lender either
approves or rejects the loan. If the loan is rejected but the
applicant is set on starting a business then nontraditional
lenders typically are approached by the applicant.
Nontraditional lenders seem to value the business plan while
bankers, if it is a financially strong situation, can and will
approve, in some situations based strictly on the financial.
Working with Lenders Similar to the SBA - lenders generally
are not experienced with working with people with disabilities.
Because of this and depending on a person's disability he or she
might be more successful with obtaining a loan if the counselor
and/or advocate anticipate questions that will be asked by the
banker and engages in a role-play situation with the consumer
prior to his or her visit to the bank and accompany the consumer
to the loan interview. At the loan interview the counselor
provides support in the process. The type of support is based on
the person's needs. For example in the case of a person with a
severe speech impediment who might not be understood, the
counselor relays the necessary information. For the person with
an emotional disability, the counselor provides emotional
support but generally does not speak for the individual. For a
person who has not been employed for an extended period and who
has insurmountable fear of dealing with the unknown, the
counselor will help the person through the rough spots.
Additionally, this would be the time for the counselor to
provide technical information about accommodations for the
disability within the business context of questions that arise
during the interview. It is important to note that in these
situations the counselor is present as an advocate representing
and supporting the individual, not conducting the interview him-
or herself.
Opportunities for VR's Participation in
Community and Economic Development
The following summary is taken from the IRI 24th Issue
publication "People with Disabilities Developing Self-Employment
and Small Business Opportunities.", pp. 61-63
VR agencies should participate in a community's economic
development to support developing businesses or to create
business opportunities and jobs for consumers of VR services. VR
agencies may need to partner with another local or state
organizations such as an economic development group, an
independent living center, a research and training center, or a
consumer group in pursuit of these activities. The benefits of
participation are that VR becomes a recognized contributor to
the community, becomes a partner with other community
development organizations and is included in planning for
business expansion and upcoming employment opportunities; and as
a result is contacted and considered as a possible partner when
other opportunities arise. Foundations and government grants are
two of the most frequently-used methods for obtaining funds to
develop or expand demonstration projects. Often, though these
funders expect that their money will be used to only develop or
test a project and that the demonstration will be
self-sustaining or find other more stable community or
state-based sources of support.
Foundations - Foundations are always looking to fund quality
organizations, programs, and innovative projects that promote
change. Foundations generally grant money to nonprofits who then
disburse funds in the form of grants or loans. They give money
for good and for opportunities and success, not for needs or
distress. The key phrase to remember about a foundation is "for
social and/or public benefit." So when approaching a foundation,
it is important to offer hope and vision and to remember that
grants are investments for social benefit. There are
approximately 22,000 active foundations across the United
States. Annually, they receive more than 1 million requests for
funding, but fund no more than eight percent of them. The
reasons for nonfunding typically are because the application
topic did not match the foundation's interest, the applicant
organization does not have a track record or name recognition,
or because of a low quality proposal. One other important factor
is that, if a board of directors exists, that board members are
known for their expertise in areas and that they are
representative of the organization's mission statement.
Depending on the foundation and the applicant organization, a
board of directors and committees may need to be established.
For example, some University-based Robert Wood Johnson grantees
do not have a board of directors, while private Robert Wood
Johnson grantees do. In either case, it is important for the
applicant organization to have a clear and understandable
mission statement. The organization must show that it is
responsible, has developed sound by-laws, does not have a
conflict of interest if awarded a grant, that it has fiduciary
responsibility, and can adequately protect public interest
through independent audits. Additionally, the applicant
organization must prove that it satisfies the needs and
expectations of the community by fulfilling its mission
statement through periodic evaluation of the program's
performance.
When applying for foundation funds, the applicant
organization should recognize that ego is deeply involved in
giving by foundations. Therefore ego must be respected and even
played upon by the applicant. The grant writer should refer to
foundation updates, corporate giving books, and the National
Directories as a way to identify the foundation's interests.
When a possibility is identified, also note the name(s),
background, other affiliations, and interests of the President
or Chief Operations Manager, Program Managers, and Board of
Directors and Trustees. With this information the executive
director or a member of the board of the applicant organization
can get a foot in the door, develop a relationship, and increase
the odds of getting a grant request approved.
There are four types of foundations: independent, operating,
company sponsored, and community. Independent or private
foundations are the largest funders. They have independent
boards, are professional, and cover a broad range of interests.
Their income usually is from family wealth, benefactors, and
individuals who share the foundations? interests. Operating
foundations make few, if any grants to organizations outside the
scope of staff interest. Company sponsored foundations obtain
their funds from profits of their sponsoring company. They are a
conduit for corporate giving. Grants generally are small but can
be up to $100,000. Generally, grants only are given in areas
where the sponsoring company does business. Program interests
vary. Community foundations generally give grants only in their
own area. They receive their funds from local companies,
organizations, and residents. These foundations usually are
classified as public charities.
When deciding whether or not to apply for foundation support
the applicant must be convinced that the program or project
meets a "true" need; that it provides a convincing solution to
the identified problem; that the scope of the proposed
project/solution relates directly to the scale of the identified
problem; and that foundation support is clearly outlined in
light of other funding sources such as fees for service or other
ways of obtaining resources such as donations.
U.S. Department of Agriculture Rural and Community
Development - Another possible avenue for VR's participation in
community and economic development is for an agency to pursue
funding from the USDA Rural Business and Cooperative Development
service (RBCDS). RBCDS was established in 1994 to "enhance the
quality of life for all rural Americans by providing leadership
in building competitive businesses and cooperatives that can
prosper in the global trading marketplace." RBCDS have developed
Business Programs, usually available to rural areas outside the
boundaries of a city of 50,000 residents, by guaranteeing loans
through eligible entities or intermediaries and by assisting
public bodies, nonprofit corporations and recognized Indian
Tribal groups with financing and developing small and emerging
private businesses. Detailed information and applications for
financial assistance are available through Rural Economic and
Community Development state offices.
Programs and Resources for Minorities and
Women
Small Business Administration
(The Small Business Administration funds the Minority Enterprise
Development (MED). Link here to
go to the Minority Enterprise Development (MED). This
program, commonly known as the 8(a) program, was created to
assist small companies owned and operated by socially and
economically disadvantaged persons obtain access to a variety of
business development services including the opportunity to
receive federal contracts on a sole source or limited
competition basis. Under 8(a), SBA enters into prime contracts
with federal departments and agencies who then subcontracts with
disadvantaged small businesses that are certified to
participate. The following assistance is available to eligible
program participants who are in the developmental stage: sole
source and competitive 8(a) contract support, grants to
participants of surplus property and technology owned by the
United States, and training to enhance program participant's
skills in the area of business principles. In the transitional
stage 8(a) provides sole source and competitive 8(a) contract
support, grants to participants of technology and surplus
property owned by the United States Transfer of technology or
surplus property owned by the United States, training to enhance
program participant's skills in the area of business principles,
assistance with forming joint ventures, and training and
technical assistance in business planning to help ensure the
firm's successful transition from the 8(a) program to the
competitive market. Program participants are also eligible to
apply for financial assistance under SBA's 7(a) and 504
programs.
U.S. Department of Commerce
(Under the U.S. Department of Commerce, the Minority Business
Development Agency (MBDA).
Link here to go to the Minority
Business Development Agency (MBDA). The Minority Business
Development Agency (MBDA) promotes the establishment and growth
of competitive minority-owned businesses. The MBDA awards grants
and cooperative agreements to state, county, and city government
agencies, profit and non-profit business development
organizations, and trade associations to provide management and
technical assistance, and market development services to
minority entrepreneurs. MBDA does not provide grants or loans
for business start-up, expansion, or acquisition. But MBDA does
assist minority entrepreneurs with locating financing from
banks, other private organization or government agencies. The
MBDA publishes Minority Business Today, Entrepreneurship,
Profiles, and the Business Development Center Directory which is
a listing of MBDA-funded Minority Business Development Centers
(MBDCs), Native American Business Development Centers (NABDCs)
and Minority Enterprise Growth Assistance Centers (MEGAs).
Current MBDA initiatives include the following:
1. Financial Capital Initiative to increase the availability
of debt and equity capital for minority-owned businesses.
2. Surety Bonding Initiative to increase minority business
access to conventional sources of surety bonding for major
commercial construction projects.
3. Franchise Initiative to assist minority entrepreneurs with
making more informed decisions about the risks and rewards of
franchising.
4. International Trade Initiative to assist minority-owned
firms with becoming "export-ready."
5. Telecommunications Initiative to generate investment
capital for minority entrepreneurs entering the highly
competitive, technology-intensive telecommunications industry.
6. Native American Initiative was created to address the
special problems of the Native American firms and individuals
interested in entering, maintaining or expanding their efforts
in the competitive marketplace. NABDCs (Native American Business
Development Centers) can provide service to any minority client,
but are designed to focus on the unique business needs of the
Native American.
U.S. Department of
Transportation (DOT)
(For almost twenty years, DOT's DBE program has been providing
equal opportunities for women and minorities competing for
highway and transit contracts. One of the programs under its
umbrella is the Office of Small and Disadvantaged Business
Utilization (OSDBU) which offers DBEs the opportunity to obtain
short-term working capital at prime interest rates for
transportation-related projects under its Short-Term Lending
Program. Certification is required, however, no additional
certification is needed for firms certified under the U.S. Small
Business Administration under Section 8(a). Short-term working
capital is provided in the form of a revolving line of credit
with a maximum line of credit is $500,000 with interest rates at
prime rate. A bonding program is also available to obtain bid,
payment and performance bonds for transportation-related
projects.)
Resources for Women
Online Women's Business Center (Sponsored by the SBA. The
goal of the WBC is to provide entrepreneurial women with the
information and expertise they need to plan their economic
independence through owning their own business. WBC's online
forums, message boards, resource database, links, and
informative articles are tools we offer free of charge-providing
women the information they need to succeed in business.)
Women's Connection
Online (Women's Connection Online offers women on the
Internet relevant, useful content and discussion groups. There
are over 1,100 pages of the most current news on women's issues,
bulletin boards, a news archive containing the last 30 days of
news related to women, plus an extensive library covering
business, politics, health, finance, gender equity and many
other topics, information about women's organizations, links to
women's sites on the web, and a regionalized events calendar.)
Women's Business Centers
(This co-sponsored SBA program provides women with long-term
training and counseling in all aspects of owning or managing a
business, including financial, management, marketing, technical
assistance, and procurement. At the time of this writing, there
are nearly 70 Women's Business Centers nationally in 40 states.)
Women's Network for Entrepreneurial Training (WNET)
(This SBA program is available through SCORE and SBDCs. It is a
year-long, one-on-one program where established women business
owners serve as mentors to protegees who are ready to expand
their businesses. There also is a WNET Roundtable, which
provides mentoring and support for women business owners in a
group setting. (XXIV - IRI, 1998, p. 53)
SBA's
Office of Women's Business Ownership
Women's Business Ownership Representatives
- Access in the District SBA Offices.
Women-Owned Small Business (WOSB) Procurement Program -
Access to information and summary of this SBA program.
Advancing Women: International Business and Career Community News, Networking, Strategy For Women in the Workplace
African American Resources
African-American Web Connection (This site provides a doorway to Afrocentric web resources for the African American web community and others seeking the total black web experience.)
Black Business.com (link site for business related resources.)
Asian American Resources
Asian Business Web Page (3246 W. Sepulveda Blvd., Suite 109 Torrance, CA 90505, 1-310-517-0087. Asian Business Web Page provides Internet programming, web page design, on-line advertising. Asian Business Web Pages are in both English and Chinese or other Asian Languages when appropriate. The Asian Business Web Page Hot Links Section provides both local and worldwide links to its users.)
Hispanic Resources
HISPANIC Magazine (98 San Jacinto Blvd., Suite 1150 Austin, TX 78701. 512-476-5599. HISPANIC Magazine's web site highlights articles from back issues and provides links to other Hispanic web sites.)
LatinoWeb (201 N. El Molino Ave. Pasadena, CA 91101 626-440-0476. Latino Web is a virtual information center for Latino Resources. Latino Web's mission is to empower the Latino community by providing a gateway to the Internet where private, nonprofit, and public sectors can exchange information freely.)
HispanicBiz - Business Resources Instant Communications (7654 Coral Way Dublin, CA 94568. 510-828-7350 - ext. 3. This site provides a one-stop information services for small businesses, professionals, and students in California and worldwide.)
Latin American Trade Council of Oregon (16200 Pacific Highway #16 Lake Oswego, OR 97034. 503-699-0646. The Latin American Trade Council of Oregon is a nonprofit association organized to promote trade between Oregon and Latin America. LATCO members can exchange information through conferences, workshops, a newsletter, an Internet e-mail list, on-line forums and a member directory. LATCO makes available reports on specific trade opportunities in various Latin American countries.)
Hispanic Chamber of Commerce (110 Broadway, Suite 25 San Antonio, TX. 1-210-222-9077. Tristero empowers businesses, organizations, and individuals by delivering on-line media. It enables them to create reliable, flexible, state-of-the-art turn-key solutions to share information with the world.)
The Latino Economic Development Corporation, Inc. can be contacted at 2316 18th St. NW, Washington, DC 20009-1815. 1-202-588-5102. Helps low income Latinos obtain housing by using government funds and directs Latinos to nonprofit organizations that procure funds for business development.
Books
Many books on starting a business or on developing a business plan are available at bookstores and libraries. The following list is just a few of those books.
The Business Planning Guide (6th Ed). Book & Software. David H. Bangs, Upstart Publishing, Inc.
Anatomy of a Business Plan (3rd Ed). Linda Pinson & Jerry Jinnett, Upstart Publishing, Inc.
How to Really Create a Successful Business Plan: Step-by-step Guide (3rd Ed). David E. Gumpert, Inc. Publishing.
Directory of U.S. Microenterprise Programs published by the Self-Employment Learning Project of the Aspen Institute, 133 New Hampshire Avenue, N.W., suite 1070, Washington, D.C.
Business Plans for Dummies: A Reference for the Rest of Us, Paul Tiffany & Steven D. Peterson, IDG Books Worldwide.
Government Giveaways for Entrepreneurs II (4th Ed), Matthew Lesko, Information U.S.A.
On Your Own: A Woman's Guide to Building a Business (2nd Ed), Laurie B. Zuckerman, Upstart Publishing, Inc.
Starting and Operating a Business in (State): A Step-by-Step Guide, PSI Research, The Oasis Press/PSI Research, Grants Pass, Oregon.
The Perfect Business, Michael LeBoeuf, A Fireside Book Published by Simon & Schuster.
GLOSSARY
Collateral: Assets pledged to secure a loan.
Disabled Veteran Business Enterprise (DVBE): A disadvantaged certification, in some states, relating to a business owned (51 percent minimum) by a U.S. disabled veteran having a military service-connection of 10 percent or greater.
Development Stage (SBA): SBA determines length of participation in the 8(a) program in two stages, one of which is the developmental stage which is four years and is designed to help 8(a) certified firms overcome their economic disadvantage by providing business development assistance.
EC: Enterprise Community
Economically Disadvantaged Individuals (SVA): Those individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities, as compared to others in the same or similar line of business and competitive market area who are not socially disadvantaged. For the purposes of program entry, an individual whose personal net worth (excluding the equity in their personal residence and business) exceeds $250,000 will not be considered economically disadvantaged.
EZ: Enterprise Zone
Home-based business: Working out of home in either a self-employment setting or tele-commuting arrangement.
Franchising: To run a unit of a business or be granted permission to distribute a manufacturer's products or services.
Microenterprise: Sole proprietorship, partnership, or family business, that has fewer than five employees, does generally not have access to the commercial banking sector, and can initially utilize a loan of under $15,000.
Minority Business Enterprise (MBDA): A minority business enterprise is a commercial undertaking that is owned or controlled by one or more socially or economically disadvantaged persons. Such disadvantage may arise from cultural, racial, chronic economic circumstances, background or other similar cause. Such persons include African Americans, Hispanics, Asian Americans, American Indians, Eskimos, Aleuts, and Hasidic Jews.
Partnership: An unincorporated business owned by two or more persons.
Self-Employment: For the purpose of providing self-employment options as a rehabilitation service in a state-federal program, self-employment means the consumer owns, manages and operates the planned endeavor and is not considered to be an employee of another person, business or organization. Self-employment is an acceptable employment outcome for vocational rehabilitation agencies under federal law.
Small Business (SB): To be eligible for SBA loans a small business must be independently owned and operated and not dominant in its field. Depending on the industry, size standard eligibility is based on the average number of employees for the preceding 12 months or on sales volume averaged over a three-year period. Examples of SBA maximum size standards are:
Manufacturing - The maximum number of employees may range from 500 to 1500, depending on the type of product manufactured.
Wholesaling - The maximum number of employees may not exceed 100.
Services - Annual receipts may not exceed $2.5 to $21.5 million, depending on the particular service being provided.
Retailing - Annual receipts may not exceed $5 million to $21 million, depending on the particular product being provided.
General and Heavy Construction - General construction annual receipts may not exceed $13.5 million to $17 million, depending on the type of construction.
Special Trade Construction - Annual receipts may not exceed $7 million.
Agriculture - Annual receipts may not exceed $.5 million to $5 million, depending on the agricultural product.
Socially Disadvantaged Individuals (SBA): Those who have been subjected to racial or ethnic prejudice or cultural bias because of their identities as members of groups without regard to their individual qualities. The social disadvantage must stem from circumstances beyond their control. In the absence of evidence to the contrary, the following individuals are presumed to be socially disadvantaged: Black Americans, Hispanic Americans; Native Americans (American Indians, Eskimos, Aleuts, and Native Hawaiians); Asian Pacific Americans (persons with origins from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, U.S. Trust Territory of the Pacific Islands (Republic of Pilau), Commonwealth of the Northern Mariana Islands, Laos, Cambodia (Kampuchea), Taiwan; Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Island, Federated States of Micronesia, Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru; Subcontinent Asian Americans (persons with origins from Indian, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal); and members of other groups designated from time to time by the SBA. Applicants are charged with establishing social disadvantage on the basis or clear and convincing evidence.
Sole Proprietorship: An unincorporated business owned by an individual.
Transitional Stage: SBA determines this stage to be five years and is designed to help participants overcome the remaining elements of economic disadvantage and to prepare participants for leaving the 8(a) program.
Home
|
Top Nav
|
Left Nav