Jeff Kraft, Director Business Funding and Incentives Colorado Office of Economic Development and International Trade Presentation to Longmont Area

Transcription

1 Jeff Kraft, Director Business Funding and Incentives Colorado Office of Economic Development and International Trade Presentation to Longmont Area Economic Council Partner Series Breakfast March 12, 2014

2 Agenda Introduction National Economic Trends & Colorado s Economy Overview of the Office of Economic Development (OEDIT) Economic Development Partnerships OEDIT Strategy: Colorado Blueprint & Advanced Industries Business Funding and Incentive Tools Examples of OEDIT Programs in Longmont Flood Recovery for Businesses Conclusion & Questions 2

3 National Economic Trends Pace of economic recovery from 2008: slow but consistent with financially driven recessions U.S. increasingly competitive with China in manufacturing when productivity and transportation costs are factored in On shoring Potential Opportunity to move toward export orientation 3

4 Colorado s Economy Created 161,000 jobs since January 2010 as of 8/2013 Outperforming nation for new jobs. Improved from 40 th in 2010 to 4 th in million jobs pre recession level (one of 15 states that have recovered to pre 2008 employment) Unemployment rate dropped from 8.9% to 7% Payroll job growth 3.5% (July 2013) 4

5 Governor s Office of Economic Development and International Trade (OEDIT) Divisions Ken Lund, Executive Director Minority Business Office Business Development Rural Development International Trade Business Funding & Incentives Key Industries & Advanced Industries Colorado Creative Industries Tourism Small Business Development Center Film, Television and Media 5

6 Economic Development Partner Pyramid City County Region State City of Longmont, Brad Power, Director of Economic Develop., City of Longmont Longmont Area Economic Council, Wendi Nafziger Boulder County Leslie Irwin Metro Denver Economic Development Corporation Governor s Office OEDIT 6

7 Colorado Blueprint and Key Industries: 14 Key Industries (importance of economic base) Advanced Manufacturing Technology and Information Electronics Aerospace BioScience Energy Infrastructure Engineering Key Industry Strategic Plans. Tourism and Outdoor Recreation Creative Industries Health and Wellness Food and Agriculture Transportation and Logistics Defense and Homeland Security Financial Services Key Industry Network.

8 Importance of Advanced Industries to Colorado Common Principles R&D intensive STEM focused Cross cutting technologies Advanced Industries Account for Approximately: 30% of the state s wage earnings; 30% of the total sales revenues across all industries within the state; 35% of the state s total exports; and 500,000 high paying jobs Spillover to all other businesses in Colorado 8

9 Advanced Industry Accelerator Act Grant Program Legislation in 2013 Amount ~$12.5M per year for 10 years Purpose: Leverage $1.9B in Federal research funds in Colorado Promote commercialization of innovative, cross cutting technologies to dive jobs Provide access to early stage capital where market gap exists Four Types of Grants: Proof of Concept Early Stage Capital and Retention Infrastructure Export Assistance Competitive Application Process (due first day each quarter (next deadline 4/1/14) apply online at Grant awards decisions by seven sub committees of industry experts: business, science/technology, finance and academic (not government ) 9

10 AIA Grant Programs Deeper Dive Entity Type Proof of Concept Research Institution University, Federal Lab, Teaching Hospital, other Early Stage Capital and Retention Business Infrastructure Non profit or for profit entity Export Acceleration Business Max Amount $150,000** $250,000** $500,000** $15,000 Purpose Turn innovative science into commercial business Accelerate commercial progress for start up companies with innovative technologies Solve industry wide commons problems, public private alignment, work force match federal funds Assist with International Business Development for Colorado Companies Match 1 to 3 2 to 1 (Conditional OK) 2 to 1 1to 1 Uses Requirements (must be in AI) Claw back Trigger Prototype validation, IP, company creation, market research Must have TTO in CO Exclusive License outside Colorado within two years Product development and company growth HQ or 50% employees in CO, <$20M capital, $10M in revenue Do not keep HQ or 50% of employees in Colorado for two years Fund start up and operations of project Must serve Colorado AI stakeholders Client Development: Travel, trade shows, Technical Assistance: legal, consulting, translation, Under 200 employees, profitable, in business at least 1 year **Cap can be lifted and selection preferences granted to projects that directly address more than one AI, have collaboration across research institutions. Collaborations between research institutions and private companies get selection preferences NA NA 10

11 Business Funding Tools Credit Enhancement (SSBCI): CHAFAinfo.com State Venture Capital Authority: High Country Ventures Advanced Industries Acceleration Grants Bioscience Discovery Grants Community Development Block Grant (CBDG) Business Loan Funds (State or County/Municipality) International Trade and Export Assistance Regional Tourism Act 11

12 Business Incentives Enterprise Zone Tax Credits Aviation Development Zones Job Growth Incentive Tax Credit Strategic Fund Incentives Colorado First & Existing Industry Job Training Grants 12

13 Business Consulting Programs Colorado Small Business Development Center (SBDC): Colorado Procurement Technical Assistance Center (PTAC):

14 OEDIT Support of Longmont Overall OEDIT Funding : 1/1/11 to 6/30/13 almost $2 Million Business Funding and Incentives: 19 businesses received Credit Enhancements and Job Training Grants totaling $1.8M between Jan 2011 and June Small Business Development Center: from January 1, 2011 to March clients received consulting resulting in, 136 jobs created, 104 jobs retained, $2.6M in capital formation and $2.6M in increased sales. Office of International Trade, Export Assistance: Two Longmont COs received Export Development Grants & consulting in past 18 months to help sell products overseas; advanced manufacturing company in Australia & outdoor rec. company in Columbia. Colorado Creative Industries Grants, 9 different non profit and government agencies received 14 different grants totaling $86,496. Includes $18,000 for Downtown Longmont Development Authority Prospective Creative District Development. 14

15 Flood Recovery for Businesses Small Business Development Center (SBDC): Free counseling, help with applications to FEMA, SBA and other funding Sources Community Development Block Grant Disaster Recovery (CDBG DR) Loans and Grants from HUD See Action Plan: dr/ Applications available online (targeted next few weeks) Small Grants and Concessionary Loans available to businesses who suffered substantial economic harm and can demonstrate un met needs SBDC will help with application and supporting materials 15

16 Conclusion Thank You Questions?