Center for Rural Affairs Lyons, NE Population 851 September 2015, Issue No. 32

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1 Center for Rural Affairs Rural Enterprise Reporter Center for Rural Affairs Lyons, NE Population 851 September 2015, Issue No years of REAp Success Another Great year of Business Development Services for Rural Entrepreneurs By Jeff Reynolds, The Rural Enterprise Reporter is an annual publication where the Center for Rural Affairs reviews the program activities of its Rural Enterprise Assistance Project (REAP). REAP reached large numbers of rural entrepreneurs through trainings, one-on-one counseling, groups and through the placement of micro loans. We also continued to grow and expand programming with the work of the REAP Women s Business Center and the REAP Latino Business Center. REAP is proud to be a leader in the microenterprise and small business development field and continues to ramp up services to reach as many rural entrepreneurs in Nebraska as possible. The Center for Rural Affairs REAP program was started in 1990 and is celebrating its 25 th anniversary in REAP is respected nationally as an outstanding microenterprise development program. It is one of the largest rural microenterprise development programs in the United States. REAP has always been known as a program that is production driven and 2015 was no different. PRODUCTION Fiscal Year 2015 was a record setting year for the REAP program. REAP worked with large number of startup and existing entrepreneurs throughout Nebraska, placed The hard working REAP staff is pictured here at a retreat. They cover the entire state of Nebraska and offer services in both English and Spanish. From July 1, 2014 to June 30, 2015, REAP placed 105 loans totaling over $1.4 million. and leveraged over $2.9 million in loans and reached significant numbers of women and Latino entrepreneurs. The need for REAP services is at an all-time high and truly speaks to the massive need for services in Nebraska and the ability and capacity of the REAP program to produce results. REAP staff work very hard to reach as many rural entrepreneurs as possible. REAP is very proud to be making a major difference in very tough times. We look to continue building the scale and efficiency of the program due to the overwhelming need for services in rural Nebraska. Looking at the July 1, 2014 June 30, 2015 time period, REAP provided assistance to 1,838 entrepreneurs. Over 76% of the entrepreneurs served were below low to moderate income with over 64% being women. Latinos were 38% of all entrepreneurs served. Also during this time frame, REAP placed 105 loans totaling $1,483,550 and leveraged an additional $1,471,100 from other sources due to REAP loan packaging assistance. REAP lending and counseling during this time frame helped to create or retain See Business Development on page 3. Micro Business Support & Information Exchange

2 2 Center for Rural Affairs September 2015 About the Reporter The Rural Enterprise Reporter newsletter is published annually by the Rural Enterprise Assistance Program (REAP) of the Center for Rural Affairs. It reviews activities over the past year. It is available electronically and in print. To view it online, visit cfra.org/publications. To correct your mailing address, or call the Center for Rural Affairs at The technical skills offered by Manuel Del Cid at Best P.C. Reparaciones in Schuyler keep local businesses running smoothly and efficiently. Center for Rural Affairs Mission Statement Establish strong rural communities, social and economic justice, environmental stewardship, and genuine opportunity for all while engaging people in decisions that affect the quality of their lives and the future of their communities. REAP Focus Fostering small business growth in rural areas. REAP is funded by Community Development Block Grant assistance through the Nebraska Department of Economic Development as well as funding from the Nebraska Business and Innovation Act, US Department of Agriculture, US Department of Treasury and the Small Business Administration Microloan and Women s Business Center programs, among others. This institution is an Equal Opportunity Provider and Employer. Editing & Layout Marie Powell and Casey Francis Printed at West Point News, West Point, NE. That s Impressive From a Home Business to a Storefront How many times do we feel overwhelmed with technology? In Schuyler, many residents visit Best P.C. Reparaciones, owned by Manuel Del Cid, to help relieve that feeling. He started his business at home in 2011 after receiving start-up assistance from Juan Sandoval, REAP Latino Business Center Director. It only took a few months before he opened the store on 1105 C St in Downtown Schuyler. Manuel attended college in South Carolina. He has over 10 years of experience with computers and other electronic devices. Manuel is probably someone I would like to have in my office all the time stated Sandoval. It is common to find issues that need New Office, continued from page 8. to be fixed and I don t know how do it. It could take an hour of my time when a professional can do it in few minutes. Best P.C. Reparaciones does more than repairing desktops, laptops, cell phones, and tablets. It offers a selection of technology related items for sale. Manuel does this by anticipating a customer s needs. He ll be incorporating new products, like ink cartridges, because customers must currently travel almost 32 miles round trip to get this product. Manuel sees other opportunities as well. His goal for 2016 is to add graphic design services. Local printing of business cards, banners and other promotional products is a huge advantage for those want to save time and money by not traveling out of town. In the last quarter of FY 2015, the REAP Latino Business Center placed 17 loans totalling $131,850 and leverage two additional loans for $57,500. From July 1 to June 30, REAP LBC staff placed 29 loans for $305,850 offering training and counseling to 733 Latino small business owners. If you want to schedule a meeting with Juan Sandoval, REAP LBC Director, please contact him at or by at juans@cfra.org.

3 S September 2015 Center for Rural Affairs 3 Business Development, continued from page jobs (269 of these jobs were due to lending only.) Since inception in 1990, REAP has placed 1,144 loans totaling $12,385,131 while also leveraging an additional $19,899,239 from other sources due to REAP assistance. INNOVATION The REAP program has a national reputation as an innovative program. We re recognized as a program that strives to meet the current needs of today s startup and existing entrepreneurs in Nebraska. An example of a successful REAP innovation and collaboration is the formation of the Nebraska Small Business Collaborative (NSBC). It s a dynamic collaboration of experienced and high performing Microenterprise Development service providers. This group consists of REAP, Community Development Resources, and Catholic Charities-Microbusiness Training & Development Program. It offers a full complement of services for micro businesses (small businesses with 10 or fewer employees). Programs and services include one-on-one technical assistance, various small business trainings, loan packaging and micro-loan access up to $50,000. Services also include linking micro businesses to additional resource providers and lending sources, including commercial lending sources. These programs and services are available in the distressed areas of Nebraska on a statewide basis. Further information about this dynamic collaborative can be viewed at: cfra.org/reap/nsbc. EVOLUTION REAP continues to evolve and change. We exist for the sole purpose of assisting with the development and growth of startup and existing small businesses in Nebraska. REAP continually accesses REAP assisted 1,838 entrepreneurs From July 1, 2014 June 30, 2015 the best way to deliver its services and tailoring its products and services to fit the needs of today s entrepreneurs. Big changes are taking place in 2016 and future years. REAP and the Center for Rural Affairs have successfully navigated the rigorous process of becoming a Community Development Financial Institution (CDFI). A wholly owned subsidiary corporation called the Rural Investment Corporation (RIC) houses the Center for Rural Affairs-REAP CDFI. The RIC was officially certified as a CDFI in October The mission of the Rural Investment Corporation is as follows: The Mission and Purpose of the Rural Investment Corporation is: Providing of financing and technical assistance in support of community development, including startup and expansion of small businesses, creation of jobs and other community assets, improving access to services and ownership opportunities especially for low-income or otherwise disadvantaged people. A CDFI is a specialized financial institution dedicated to serving low-income individuals and communities that lack access to financial services from mainstream financial institutions. CDFIs offer a number of services including loans for small and micro size E M P O W E S E R T A I N G E N T R 25YEARS B L I S E P R businesses and also provide services such as business planning and one-on-one counseling. The newly CDFI Certified Rural Investment Corporation is currently raising loan capital and will soon be implementing new small business lending products with a maximum loan limit of $150,000. REAP is also working on additional changes and updates in the area of online assistance items, new and innovative loan products, and in the area of establishing additional productive collaborations with various programs and organizations throughout Nebraska and the United States. We ll keep you updated on progress with these and other cutting-edge changes with REAP and the Center for Rural Affairs. The REAP program is striving to achieve maximum scale in rural Nebraska. REAP is committed to strengthening rural communities through small, self-employed business development and looks forward to making a critical difference for all startup and existing small businesses in rural Nebraska that are in need of core small business services. More information about the REAP program can be viewed at cfra.org/reap. The historical REAP timeline can be viewed at cfra.org/ reap/historic-timeline. H E D 1 9 E N 9 0 E U R

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5 September 2015 Center for Rural Affairs 5 Fostering small business growth in rural areas Small business owners must compete and succeed in a rapidly changing environment. The Rural Enterprise Assistance Project (REAP), a program of the Center for Rural Affairs, is a small business development program that can help! REAP consists of four elements including: networking, business management training, credit (micro-loans) and technical assistance. REAP operates Nebraska s first REAP Women s Business Center (WBC) and also reaches out to Latino entrepreneurs through the REAP Latino Business Center. Technical Assistance REAP staff are available for one-on-one technical assistance with business owners or managers. Businesses may be existing or start-up businesses of all types. Business planning assistance and trouble shooting consultations. Cash flow and budget assistance. Loan packaging assistance. Networking - Roundtable Groups A partnership is established between REAP and the local community to form a REAP Roundtable. Group members meet regularly for networking, discussion topics and education. An active base of members and key contact person is critical to the success of maintaining a roundtable group in a community. Access to benefits and services, including REAP Business Update, and other resources. Micro Loan Fund Access Direct Lending - Participants eligible for loans up to $50,000. REAP Online Lending System Applications for REAP Rapid Loans up to $10,000; Loans up to $20,000 can be completed online or the online application can be used for the pre-application for business loans from $20,001 - $50,000. Access the application here: cfra.org/reap/ols Quick GROW Express Loans GROW Nebraska members eligible for loans up to $10,000, which can be completed online. Access the application here: cfra.org/reap/quickgrow-online Small Business Lending Participants eligible for loans up to $150,000. (Release date of this new product is unknown at this point, but likely in 2015) All entrepreneurs may receive loan packaging assistance as needed. Business Training The REAP WBC collaborates with local economic development entities to host a REAP Business Plan Basics Training or other special small business trainings based on local interest. Regional workshops and Women s Business Center training activities are available periodically throughout Nebraska. REAP is funded by the Small Business Administration (SBA Microloan Program and SBA Women s Business Center), United States Department of Agriculture, Nebraska Business and Innovation Act through the Nebraska Department of Economic Development, United States Department of Treasury, various foundations and from gracious donations from interested citizens like you. Contact Jeff Reynolds, REAP Program Director or jeffr@cfra.org This institution is an equal opportunity provider and employer. All SBA funded programs and services are extended to the public on a nondiscriminatory basis. Reasonable accommodations for persons with disabilities and/or persons with limited English proficiency (LEP) will be made if requested in advance.

6 6 Center for Rural Affairs September 2015 REAP Women s Business Center Year in Review By Monica Braun, Women s Business Center Director, monicab@cfra.org The REAP Women s Business Center (WBC) entered its 14 th year of funding in September Through three-quarters of the year, REAP business specialists have provided 2,274 hours of business counseling (including preparation hours) to 637 clients. There were 106 training opportunities provided and 884 people have received training. Sixty-six percent of those trained were women. Approximately 189 start-up businesses have received assistance through three quarters of the year. The REAP WBC sponsored Dave Buchholz of David & Associates with local Economic Development agencies to present Marketing Seminars in Broken Bow, Valentine, Plattsmouth, Beatrice, Seward, McCook, Chadron, Scottsbluff, Columbus, and York. Approximately 125 businesses were represented at these seminars. The REAP WBC collaborated with local Economic Development agencies and Educational Institutions to host five Business Plan Basics sessions in the Central, North Central and Northeast regions this past year. Three of them were Hispanic sessions. A variety of business types participated including a welding business, Amish furniture store, salons, restaurants, a bowling alley, and retail main street stores. The REAP WBC continues the collaboration with the Community Economic Development Clinic of Creighton University and with the University of Nebraska Entrepreneurship Clinic. Presentations on legal structures are made by third and fourth year students. Law students (overseen by their professor) assist business owners in determining the best legal structure for their businesses and assist with the filing documents. The UNL REAP business specialists provided 2,274 hours of business counseling! Entrepreneurship Clinic students presented a session at the Women Entrepreneurs Conference as well. The REAP WBC partnered with GROW Nebraska to hold five mini MarkeTECH Conferences in Scottsbluff, Alliance, Sidney, Beatrice and Valentine. The REAP WBC also partnered to hold the major Marke- TECH Conference and Pre-Conference in Kearney. The REAP WBC sponsored the financials session held during the Pre-Conference. The REAP WBC used the Mobile Laptop Lab across the state doing QuickBooks training with REAP clientele. Sessions have been held in Oshkosh, Chappell, Ainsworth, Grand Island, Chadron, Lexington and Scottsbluff. Approximately 75 businesses have been assisted through these sessions. The laptops are also being used for computer and e-commerce training. The REAP WBC collaborated with the Small Business Administration Omaha District Office and the YWCA of Grand Island to host a Women Entrepreneurs Conference in March. It offered sessions on marketing, networking, financial statements, legal structures and a panel of women entrepreneurs sharing lessons learned. Plans are being made to host another conference in March It is an educational, inspiring day for women entrepreneurs and they have benefitted from the information and networking. Several seminars were held in Lincoln in collaboration with Community Development Resources (CDR): The Essentials of Doing Business, Sales and Use Taxes, and Insurance Needs for Your Business. The REAP WBC collaborated with the Small Business Administration Omaha District Office to hold a seminar on Federal Contracting and Certification as a Woman Owned Small Business. ED2GO is an online training platform that the REAP WBC has partnered with to provide training on many topics through the REAP WBC website. These courses are instructor facilitated and can be accessed at the convenience of the student. This is in response to the information gathered from the Small Business Needs Assessment. We provide information to our clientele through the quarterly REAP Update issues, a monthly newsletter, and our websitecfra.org/reap. If you are not receiving the Update and would like to, please provide us a current address by sending a message to Kim Preston, kimp@cfra.org, and request to be added to the list. You can also check us out on Facebook!

7 September 2015 Center for Rural Affairs 7 A Sample of REAP Activities Opportunity Finance Network Conference REAP staffers Jeff Reynolds; Griselda Rendon; Dena Beck and Center Executive Director Brian Depew attended the Opportunity Finance Network Conference at Denver, CO in October The Opportunity Finance Network is known as the main trade association for Community Development Financial Institutions. The conference provided an excellent opportunity for REAP staff to further explore the possibilities of obtaining Community Development Financial Institution status and also a number of key contacts were made at the conference. Nebraska Economic Developers Association REAP staff participate with the Nebraska Economic Developers Association (NEDA). Several REAP staff attended both the 2014 Fall and 2015 Spring conferences and also setup a REAP booth to promote our services. NEDA is an association of professional economic developers dedicated to the prosperous growth of Nebraska s business climate. It fosters economic development in Nebraska, encourages the advancement of the expertise of its members, and allows for cooperation among economic development professionals. Staff Training REAP Staffers Dena Beck and Juan Sandoval received a certificate in Community Development Finance during the past year. All REAP staff received staff training throughout the year on various topics through several venues including webinars and face-to-face trainings. Annual Awards REAP annual awards were distributed in February 2015 at the Center for Rural Affairs Awards Banquet in Omaha. The following were recipients of the REAP 2014 awards: REAP Friend of the Year - Mike Burge, Valentine Cherry County Economic Development Director (Valentine, NE); REAP Extra Mile Award - Pat Compton, Nebraska Department of Economic Development; and, REAP Women s Business Center Entrepreneur of the Year - Maria Swenson, MLCS Family & Youth Services, LLC, (Alliance, NE). The Center for Rural Affairs Entrepreneur Award was also presented at the Center Awards Banquet and is for an innovative person working with REAP who is in the forefront of microenterprise development. Loop Brewing Co, LLC, McCook, NE was the fourteenth ever recipient of this award. Partnerships and Networking To keep abreast of what other Resource Providers have to offer as well as inform about REAP services, REAP staff participate with Resource Network meetings, U.S. Small Business Administration Resource Partner meetings, and other groups such as the NET- Force quarterly meetings. This keeps referral networks current and assists our clientele to the best of our abilities. Planning...Planning...Planning... Numerous planning meetings were held throughout the year focusing on the development of a Community Development Financial Institution (CDFI) and other key program initiatives. Latino Microenterprise Assistance REAP continues to progress with the work of the REAP Latino Business Center without walls (LBC). The REAP LBC provides key business development services to rural Nebraska Latino entrepreneurs on a statewide rural basis. The LBC project impacted over 700 Hispanic startup and existing entrepreneurs during the past year. Also during this time period, 39 Hispanic entrepreneurs obtained a REAP loan and/or leverage loan. Survey Work REAP completed the fourth Entrepreneur Needs Assessment Survey. The survey helps assess the current needs of rural entrepreneurs in Nebraska. The REAP program plans to use the results of the survey in the planning process to help shape the program in the future. The results of the survey are available at: cfra. org/survey2014. REAP plans to administer the survey every two years. If you would like a program delivered to your community or organization, please contact coauthor of the survey, Dena Beck, at or denab@cfra.org. REAP Office Hours REAP Loan Specialists across the state continue to provide local office hours at numerous Chamber and Economic Development offices. The arrangement with local offices provides an excellent and more efficient way of meeting with clients as well as building partnerships with community leaders. Collaboration REAP collaborates with many organizations and individuals. As an example, REAP joined with Community Development Resources and Catholic Charities-Microbusiness Training and Development Program to form a collaboration informally known as the Nebraska Small Business Collaborative. This joint effort of experienced microenterprise development providers provides microenterprise businesses technical assistance and micro-loans in all distressed areas of Nebraska.

8 Center for Rural Affairs Rural Enterprise Assistance Project 145 Main Street, PO Box 136 Lyons, NE cfra.org/reap Address Service Requested September 2015 Questions? Contact one of our helpful staff below! REAP Latino Business Center new office Opens in Schuyler Jeff Reynolds, REAP Program Director, Monica Braun, Women s Business Center Director, monicab@cfra.org. Juan Sandoval, Latino Business Center Director, juans@cfra.org. Dena Beck, Senior Project Leader & Southwest/Central Loan Specialist, denab@cfra.org. Gene Rahn, Northeast/Central Senior Loan Specialist, gener@cfra.org. Jerry Terwilliger, Panhandle Loan Specialist, jerryt@cfra.org. Janelle Moran, Southeast Loan Specialist, janellem@cfra.org. Nancy Flock, Latino Loan Specialist, nancyf@ cfra.org. Griselda Rendon, Latino Loan Specialist, griseldar@cfra.org. Kim Preston, REAP Administrative Assistant, kimp@cfra.org. The REAP Latino Business Center is more committed than ever to provide micro-enterprise development services to Latino small business owners in Nebraska with the opening of a new office at the Homestead Center in Schuyler. The Homestead Center, located at 1119 B Street, houses the Schuyler Economic Development office, Schuyler Community Schools Resource Center, Entrepreneurship Business Center, REAP, UNL Extension Colfax County and the Schuyler Area Chamber of Commerce. The Center will help facilitate stronger public-private-nonprofit collaborative leadership to more effectively synergize and sustain community partnerships between business - education - economic development - government - nonprofits, commented Kem Cavanah with Schuyler Community Development. REAP Latino Business Center Director Juan Sandoval will be taking clients by appointment in the new facility. It is a great place to facilitate trainings, organize workshops or provide assistance in a specific area. I can help to develop a business plan, find access to financing, or network with a number of agencies, said Sandoval. The entrepreneurship spirit in Schuyler is extremely high, and we want to be proactive developing a relation with those business owners. It s especially valuable before they open the doors to evaluate if a business is feasible, estimate the total cost of the project, or select a good location for their business. See New Office on page 2.