Inspiring Great Downtowns RECOVERY & RESILIENCY ON MAIN STREET - - PowerPoint PPT Presentation

Inspiring Great Downtowns

RECOVERY & RESILIENCY ON MAIN STREET

Educational Series

Main Street Forums for the 21st Century

Session Sponsors:

Corporate Investors:

Founding Sponsors: Growth Partners:

State Histor

• ric Preservation Office

Small Business Grants

CT CARES Small Business Grant Program

Welcomes

Jeffrey Taylor Senior Vice President Michael Madonia VP Business Banking

C T S B D C . C O M

ABOUT CTSBDC

• Lead office in East Hartford
• Advisors located throughout the state
• Funded in part by UCONN, DECD, and

SBA

• 20 Advisors, 4 teams:
• Capital Access
• Customer Acquisition
• Business Operations
• Pre-Venture

C T S B D C . C O M

• Access to Capital
• Financial analysis and cash flow

management

• Market research
• Marketing and social media training
• Budget preparation and forecasting
• Export consulting
• …and more

C T S B D C . C O M

BUSINESS ADVISING SERVICES

C T S B D C . C O M

BETTER HALF BREWING

• Started working w/ CTSBDC in 2019
• Secured $50k commercial bank loan
• Bought food business
• Upgraded facilities

Success story video

• MicroGRANTS. MaxIMPACT.

Case for support: Equity Match Grants for Women/Minority-Owned Businesses

Since 1997, WBDC has educated and trained more than 14,000 clients amounting to: 6,000 businesses launched or scaled 8,100 jobs created or sustained $18.6 million in capital accessed

WBDC’s Equity Match Grant Program aims to aid women entrepreneurs in accessing the capital they need to build banking relationships, improve their credit, and recover from the challenges they’ve experienced. Grants between $2,500 and $10,000 will be awarded for clearly defined projects that will have a measurable impact on the business. Applicants are required to provide a 25% match. In Fall of 2020, we received over 70 applications that are currently under review. Grants requests have ranged from $4,000 to $10,000. Grant recipients will work closely with the WBDC as they execute their strategies.

RECOVERY THROUGH EQUITY. EQUITY THROUGH ACCESS.

During our Pilot program in 2019, grants of $1,500 were awarded to five qualified candidates throughout Connecticut:

• A Home Healthcare business from Stamford used the grant to fund refinement of their

website functionality and improve SEO reach.

• A Therapist in Shelton purchased a software system – a highly recognized

neurofeedback program that helps young ADHD patients focus.

• A Financial Planning business in Ansonia used the grant to redesign their website

functionality and improve SEO reach and visibility.

• A Professional Development Training business in Stamford used the grant to fund a

redesign their website to enable multimedia content & capture customer information.

• A Yoga and Healing Arts Studio in New London purchased equipment for expansion of

the current business into additional space.

MICRO-GRANTS. MAX IMPACT.

Business Advising

Office Locations: ➢ Hamden, CT ➢ Providence, RI Geographic Coverage: ➢ Statewide- CT & RI Target Markets: ➢ Small to medium-sized businesses looking to purchase long-term fixed assets ➢ Start-ups and/or existing businesses that are “almost bankable”

18

SBA 504 Loan

• Financing up to $5mm
• Purpose: Owner-occupied

commercial real estate and/or long-term equipment acquisitions

• Market: For profit start-ups

and/or small to medium-sized businesses

• 90% financing in most cases
• Term: Up to 25 years
• Rate: Fixed up to 25 years.

Today’s rate on a 25-year loan is 2.43%!!

Community Lending

• Financing from $5K-$250K
• Purpose: Working capital,

inventory, business acquisitions, leasehold improvements, business debt refi, and much more

• Market: For profit start-ups and

existing businesses that do not qualify for traditional financing

• Start-ups require a 20% equity

injection

• Term: Up to 10 years
• Rate: Variable or fixed; depends
• n loan amount

Loan Programs

19

Success Story: Olive & Henry Fine Foods

• Start-up gourmet food

shop located in Cheshire, CT

• Denied by a national

banking institution for being a start-up

• Needed working capital

and equipment financing

• Leveraged a Micro loan

that was structured as a 5- year, fixed interest rate loan with an initial 6- month interest only period

HEDCO, Inc. Fact Sheet

Office Location: 207 Main Street – 4TH Floor, Hartford, CT 06106

Organizational Background

• Began Operation March 1, 1975 as a 501 (C) (3) Not for Profit, Tax Exempt, Non-Stock Corporation
• Community Development Financial Institution (CDFI)
• Certified Lender Business Consortium Fund for National Minority Supplier Development Council
• Certified Micro Lender Small Business Administration
• State of Connecticut Small Business Lending Partner

Area Served

• 169 Connecticut Towns

Scope of Services

• Micro Enterprise and Small Business Training
• Problem Solving Assistance
• Loan Packaging, Loan Administration and Servicing
• Minority Bonding Program –State of Connecticut Department of Economic and Community Development
• Business Development and Opportunity Center
• Funds Control Management

$35M Assets Under Management 800 business enterprises and Non-profit organization Clients Served Annually. $110 million Loans Packaged since 1984. More than 5,000 Jobs Retained or Created Since 1984

HEDCO’s Business Resource Center

The HEDCO DIFFERENCE

INCUBATOR PROGRAM TECHNICAL ASSISTANCE FINANCIAL ASSISTANCE

THE HEDCO DIFFERENCE

PROFILES OF SUCCESS

TORAAL DEVELOPMENT

• Bracket Knoll Development Project

– 20 Duplex and Multifamily houses – Naugatuck Street Extension

• North End of Hartford

– Phase 1: 6 multifamily homes on Westland Street completed – Phase 2: 14 homes (8 duplex and 6 multifamily homes) groundbreaking October 2020.

SUPREME CLIENTELE

• Barbershop

– Neighborhood Shop to Mall location – Buckland Hills Mall, Manchester, CT – Making clients “Feel Good” since 2002

Meriden

✓ Access to capital for small businesses that can’t get traditional bank financing. ✓ Business Education and Advisory to promote sustainability. ✓ 53 towns and cities designated by the state as in greatest need

• f development

✓ Any low-to-moderate- income prospective borrower statewide

The Community Economic Development Fund

CT’s leading SBA Microlender for seven consecutive years SBA Microloans (Up to $50,000)

• Terms up to 6 years.

Term Loans and Lines of Credit (Up to $250,000)

• Terms up to 10 years (term loans)
• Terms up to 2 years (lines of credit)

Commercial Mortgages (Up to $500,000)

• 51% owner-occupied
• Business use
• Terms up to 20 years

Sorento Fine Woodwork LLC Rick’s Tree Service LLC

IN 1982, SEVERAL DEDICATED HISPANIC BUSINESS OWNERS AND HISPANIC COMMUNITY LEADERS REALIZED THE ENORMOUS POTENTIAL OF THE HISPANIC BUSINESS COMMUNITY IN THE CITY OF HARTFORD AND ENVISIONED THE NEED TO BE ORGANIZED TO REPRESENT ITS INTERESTS BEFORE THE GOVERNMENT AND PRIVATE SECTORS. IN 1992, THE SPANISH AMERICAN MERCHANTS ASSOCIATION (SAMA) WAS INCORPORATED IN THE STATE OF CONNECTICUT, CREATING A NON-PROFIT ORGANIZATION 501(C )(3) AIMED AT DEVELOPING A BUSINESS NETWORK THAT WOULD PROVIDE THE HISPANIC COMMUNITY WITH COHESION AND STRENGTH. SINCE ITS INCEPTION, SAMA HAS WORKED TOWARDS BRINGING THE ISSUES AND CONCERNS OF THE HISPANIC-OWNED BUSINESS COMMUNITY IN FRONT OF THE HARTFORD ECONOMIC AGENDA.

HISTORICAL INFORMATION

THROUGHOUT ITS NEARLY 30-YEAR HISTORY, SAMA HAS ENJOYED OUTSTANDING WORKING RELATIONSHIPS WITH MEMBERS OF GOVERNMENT AND CORPORATE SECTOR. THROUGH ITS NETWORK OF MORE THAN 500 LOCAL HISPANIC BUSINESS OWNERS AND ORGANIZATIONS, SAMA EFFECTIVELY COMMUNICATES THE NEEDS AND POTENTIAL OF THE HISPANIC ENTERPRISE TO THE PUBLIC, GOVERNMENT AND PRIVATE SECTOR BY:

• ADVOCATING AND PROMOTING THE ADVANCEMENT OF MULTICULTURAL SMALL BUSINESS OWNERS, PARTICULARLY

HISPANIC, IN THE STATE OF CONNECTICUT;

• INCREASING BUSINESS RELATIONSHIPS AND PARTNERSHIPS BETWEEN THE CORPORATE SECTOR AND SMALL BUSINESS

OWNERS;

• MONITORING LEGISLATION, POLICIES AND PROGRAMS THAT AFFECT THE HISPANIC BUSINESS COMMUNITY;
• PROVIDING TECHNICAL ASSISTANCE AND TRAINING TO MULTICULTURAL BUSINESSES AND ENTREPRENEURS;
• SERVING AS A RESOURCE FOR MERCHANTS WHO HAVE THE POTENTIAL AND DESIRE TO CREATE OR EXPAND THEIR

BUSINESS VENTURES;

• ADVOCATING FOR THE MERCHANTS BY BRINGING THEIR BUSINESS CONCERNS TO LOCAL, STATE, AND FEDERAL

AGENCIES AND TO OTHER PRIVATE AND PUBLIC INSTITUTIONS;

• PROMOTING NEIGHBORHOOD AND COMMERCIAL REVITALIZATION (CLEANING CAMPAIGNS, REDUCING

DETERIORATION AND CRIME FIGHTING); AND,

• PROVIDING FUNDING TO SMALL BUSINESSES FOR EQUIPMENT, RENOVATION, INVENTORY AND CASH FLOW

THROUGH SAMA’S LOAN PROGRAM.



HEDCO, INC., together with the Spanish American Merchants Association (SAMA) offers several loan programs that are designed to generate economic growth and stability in cities and towns around the State of Connecticut. All HEDCO / SAMA revolving loan programs are designed to ensure small business owners have access to capital to encourage growth and stimulate small and mid-size industries and businesses resulting in the creation and retention

• f jobs.

SAMA staff will be available to assist you with the loan application process.

Minority Business Revolving Loan Fund (MBRLF) The MBRLF Program is a Strategic Partnership of 3 Community Organizations:

• HEDCO
• SAMA
• BBA

Program funded by the Department of Economic and Community Development (DECD) Statewide funding. The MBRLF provides opportunities for minority-owned and/or women-owned entrepreneurs/business owners around the state of Connecticut to gain access to capital in order to start or grow their business.

• Type of Loan: Term and Line of Credit
• Amount: From: $10,000 to $100,000
• Interest Rate: Fixed 4%
• Loan Maturity: Up to 10 years

Pre-Requirements to obtain a loan through this program:

• The business has been in operation for at least one year and/or is officially registered for at least

a year.

• The business is physically located and operates in CT.
• Must be a For-Profit type of business.
• Principal(s) and Business must be current with both, State and Federal Taxes.
• Principals with 50% or more ownership must not be more than 60 days delinquent on child

support.

El Mercado was established in 1985 with the assistance of SAMA. They received funding from HEDCO/SAMA Merchant Revolving Loan Fund. SAMA assisted

• MR. Ramon Flores in 2017 in acquiring

the necessary funding to purchase this property that has 7 different types of businesses inside. El Mercado has become an Icon in the Park Street Neighborhood and the City of Hartford.

El Mercado Marketplace

Liberty Bank Academy for Small Business Initiative

CMSC Presentation October 21, 2020

29

Program Overview

• A comprehensive basic business training program

comprising 10 training modules

• Curriculum utilized is the FDIC’s Money Smart for

Small Business

• Partnership with SCORE and WBDC for facilitation

and mentoring

• $5,000 business line of credit given to qualified

participants

• Entrepreneurs in underserved communities

30

Program Success

• Networking – encourage participants to use

each other as a resource

• Provides “Seed” capital to launch
• pportunity
• Builds stronger relationships with their

banker

• Connects them with a support system

because all of the speakers are local experts

31

Capital for Change, Inc. | www.capitalforchange.org 10 Alexander Drive, Wallingford, Connecticut 06492 | Phone: 860.233.5165

MISSION To provide flexible, creative, & responsive financial products and services that support an inclusive and sustainable economy

C4C INVESTS IN Affordable Housing Energy Efficiency Nonprofit Organizations Small Businesses

BUSINESS LINES Commercial Lending Consumer Lending Loan Servicing Program Administration

A LOOK BACK Serving Connecticut for over fifty years, C4C has invested more than $425M in mission-driven capital

Capital for Change is a Community Development Financial Institution (CDFI). CDFIs are private financial institutions 100% dedicated to delivering responsible, affordable lending to help disadvantaged people and communities join the economic mainstream. By financing community businesses— including small businesses, microenterprises, nonprofit organizations, commercial real estate, and affordable housing—CDFIs spark job growth and retention in hard-to serve markets across the nation. OFN, 2020

CAPITAL FOR CHANGE, INC (C4C)

Since 2016, C4C created and/or maintained 342 units

• f

affordable housing. Primary investment s located in Hartford, Bridgeport, and New Haven.

AFFORDABLE HOUSING

In 2020, C4C financed energy efficient upgrades to reduce carbon emissions equivalen t to removing 163 passeng er cars from our roads.

ENERGY EFFICIENCY

C4C provides financing to small businesse s and nonprofit s like the Fair Haven Commun ity Health Clinic.

NONPROFIT & SMALL BUSINESS

INVESTMENT AREAS

Data as of August 2020

All C4C programs, products, and services address one or more of our investment areas Financial snapshot for FY2020: $110M Liabilities; $28M Net Assets; $138M Total Assets

SMALL BUSINESS EMERGENCY ASSISTANCE GRANT PROGRAM

A partnership between The City of Hartford, The Hartford Foundation for Public Giving, HEDCO, Inc., and Capital for Change PROGRAM IMPACTS

• 167 grants administered totaling $1.3M
• 70% located in low-income census tracts
• 50% female owned or operated
• 35% minority owned or operated
• Average grant size: $7,625

PROGRAM PARAMETERS Businesses were required to:

• Be located within the City of Hartford
• Provide at least one federal tax return
• Have positive revenues not exceeding $500,000 for

the submitted tax years

• Have an EIN and/or DUNS number, if applicable

"The financial assistance we received from Capital for Change helped us weather the storm of running a small business through the pandemic. Without these funds, we would have struggled mightily to pay the employees and suppliers that keep our business

• perating in service to our community. We're extremely grateful."

Sam King, Part-Owner, Blue Earth Compost

• Based in Salem, MA
• 2 successful offerings in CT
• Focus on New England/NYC with national reach

RAISE COMMUNITY CAPITAL WITH THE REVENUE SHARING NOTE

SUCCESS STORY: WEHA BREWING AND ROASTING COMPANY

Brewery and Roastery in West Hartford, CT Raised $88,000 from over 100 local investors

Regional Loan Funds

• Hartford Economic Development Corporation (HEDCO) and Greater

Hartford Business Development Center (GHBDC) — working in tandem to provide small businesses throughout the region with alternative financing.

• Waterbury Development Corporation (WDC) — focused on offering one-
• n-one business support as well financial assistance to Waterbury’s

business clientele at all stages of the business cycle.

• SouthEastern Connecticut Enterprise Region (seCTer) — a public/private

regional economic development agency offering loan programs and business development assistance to businesses in New London County.

• Northeast Connecticut Economic Alliance — provides resources to both

existing and startup manufacturing and service companies in Northeastern Connecticut.

• Community Capital Fund — supports economic development projects that

benefit low- and moderate-income people in the Greater Bridgeport area.

• Middlesex County Revitalization Commission — offers a Revolving Loan

Fund to help create/retain jobs in Middlesex County.

• Also, check with your town’s economic development office as to the

availability of a community small business loan program.

Online Resources

Recorded Webinars Moving from Crisis to Recovery: We can do this!

Next Webinars

RECOVERY & RESILIENCY ON MAIN STREET

Educational Series

Courtney Hendricson, Vice President of Partnerships, AdvanceCT TITLE: COVID-19 Check-in: Do my downtown businesses have what they need for the months ahead? Jason Vincent, President, Norwich Community Development Corporation TITLE: Vacant Properties Strategies: Turning the Lights Back On Dates: TBD

www.ctmainstreet.org