Margaret Somer, Regional Director Small Business Development Center, Northeast Mass

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

2. Massachusetts Small Business Development Center Network www.msbdc.org Small Business Development Centers Central MA SBDC - Clark University - Worcester Northeast MA SBDC - Salem State College Southeastern MA Regional SBDC – Fall River UMass Boston SBDC - Boston Western MA Regional SBDC - Springfield Berkshires SBDC – Pittsfield PTAC– Government Contracting Mass Export Center Network funding & key partners U.S. Small Business Administration MA Dept. of Business & Technology UMass Amherst and other institutions

3. 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…)

4. 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..)

5. 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

6. 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.

7. 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

8. 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)

9. SBIR / STTR Resources • www.sbirworld.com • www.pnl.gov/edo/sbir • Individual agency websites • SBIR newsletters and email lists • SBIR conferences and workshops

10. 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

11. 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

12. 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

13. 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

14. 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

15. Margaret Somer, Regional Director Small Business Development Center (SBDC) Northeast Region - Salem State College 121 Loring Ave., Suite 310 Salem, MA 01970 Tel. 978-542-6343, x. 1 msomer@salemstate.edu www.salemstate.edu/sbdc