FEDERAL FUNDING FOR SMALL BUSINESS ASSISTANCE PROGRAMS Kevin Kong Managing Director Renaissance Economic Development Corp. National CAPACD Washington, DC June 4, 2013 An affiliate of Asian Americans for Equality
Overview of Renaissance Founded in 1997 501(c)(3), affiliate of Asian Americans for Equality New York City Small business and economic development services U.S. Department of Treasury certified CDFI U.S. SBA Microlender NY State Entrepreneurship Assistance Program Center Since 1997, over $33 million in affordable small business loans to more than 950 small businesses Each year, technical assistance counseling provided to over 600 small business owners
2012 Highlights 207 loans closed totaling over $4.5 million Over 850 jobs retained Over 130 jobs created Over 800 clients counseled 14 workshops & seminars offered Superstorm Sandy Emergency Recovery Initiatives launched (over $3 million in loans and $300,000 in grant funding disbursed)
Many, Many Success Stories! Pest Control Company M&M Environmental Manhattan, New York Bakery and Café Rudy s Pastry Shop & Cafe Queens, New York Art Gallery Small A Projects Manhattan, New York
Types of Funding General Operating Unrestricted Capital Lending Capital Grant Capital
Federal Funding Sources CDFI Fund: US Department of the Treasury Community Development Financial Institutions Fund SBA: US Small Business Administration SBA Microloan Program EDA: US Department of Commerce Economic Development Administration ACF: US Department of Health & Human Services Administration for Children & Families
CDFI Fund Promote economic revitalization in low income communities by investing in CDFIs to build their capacity to serve low income people and communities that lack access to affordable financial products and services Grant and loan funds to increase lending capacity and scale up loan programs directed to MWBEs Awards available for both applying CDFIs and emerging CDFIs Non CDFIs applying for certification are eligible for up to $100,000 in funding to assist with CDFI certification Emerging CDFIs are eligible for additional awards of up to $600,000 Awards of up to $2 million for CDFIs
SBA Microloan Program Low interest loan capital available to SBA Microlender intermediary organizations 7 year term 1.125% 3.25% cost of funds Maximum of $5 million in loans to intermediary allowed Intermediary to provide microloans of up to $50,000 SBA provides grant funding to match loan capital to support operational costs to provide technical assistance to clients Organizations interested in becoming SBA Microlender intermediaries must already have one year of experience in lending and providing technical assistance
EDA Economic Development Assistance Programs Strategic investments to foster job creation and support development of regional economies in economically distressed areas of the nation Approximately $160 million available each year Proposed projects must be located in economically distressed areas, as defined by EDA criteria Priorities: (1) Collaborative Regional Innovation (2) Public/Private Partnerships (3) National Strategic Priorities (4) Global Competitiveness (5) Environmentally sustainable Development (6) Economically Distressed and Underserved Communities
ACF Community Economic Development Projects Promote the economic and social well being of families, children, individuals and communities ACF CED (Community Economic Development Projects) Up to $800,000 in annual grant funding to a nonprofit CDC for community economic development projects 3 year period for non construction project (5 year period for construction project) Potential projects include revolving loan funds and equity investments Projects must create at least one job per $20,000, and 75% of jobs created must be occupied by low income individuals ACF ORR (Office of Refugee Resettlement) Grant funding for refugee communities to become economically self sufficient and to build capital resources
Final Thoughts
Kevin Kong Managing Director Renaissance Economic Development Corporation 212 964 6022 kevin@renaissance ny.org An affiliate of Asian Americans for Equality