Transcript Using CDBG for Job Creation - City of Shreveport, LA

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NCDA
Annual Conference
Palm Springs, CA
Using CDBG for Job Creation
Wednesday, June 20, 2012
9:00 a.m.
City of Shreveport Department of Community Development
Bonnie Moore - Director
Southern University Shreveport, LA
Center of Business and Community
Development
What Are Business Incubators
1. Typically facilities where business share expertise and cost.
2. Facilities which offer access to expertise and services through:
SHARED OFFICES
COMMON EQUIPMENT
RESEARCH
MENTORING
MANUFACTURING SPACE
JOINT MARKETING
BUSINESS SUPPORT
OTHER TECHNICAL AND
SUPPORTIVE SERVICES
Center of Business & Community
Development
Why We Chose to Do a Business
Incubator
• In our 2004-2008 Consolidated Plan Economic
Development was our #1 priority. Tremendous
emphasis was placed on economic development
activities.
• Under Strategy 3:3: Create opportunities to provide a
full range of business assistance services for new and
expanding businesses and entrepreneurs.
• The performance goal was to establish an incubator by
December 31, 2004
Why We Chose MLK
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Disinvestment in this neighborhood
Poor business climate
Unemployment rate 16.7 percent
Median household income $21,681
Per capita income $13,336
Graduation rate 40.3 percent
Struggling Businesses
Few new start in the last decade
Southern University Shreveport began a small business technical
program with emphasis on MLK, which enabled a partnership to
be formed.
How it Meets CDBG Requirements
• May do other types of business assistance under
special ED (24 CFR 570.203)
• Public Benefit test (24 CFR 570.209 (b))
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Job creation and retention
Area benefit
Low-to-moderate income limited clientele
Elimination of Slum or Blight
Micro-Business Enterprises
Incubator Development
• Prepare a feasibility
analysis
• Locate site
• Do financials and
marketing plan
• Identify resources
• Develop
Evaluating Incubator Applications
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Evidence of need and support
Qualified management
Cluster concentration within the community
Ability to leverage
Plan for self-sufficiency
Historical Perspective
SUSLA Business and Community Development Center
• $2.4 Million Building funded by HUD HBCU
Grant, State of Louisiana, City of Shreveport, and
Southern University System
• Construction was completed in June 2009
• Open for business July 2009
• Eight suites are available for business
• At present facility is at capacity
• Rental Cost• Leasing Term-
Business Incubator Funding
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SUSLA-HUD HBCU
City of Shreveport- CDBG
City of Shreveport- General Funds
State of Louisiana
Southern University
Southern University Foundation
DOA- Facility Planning
Total
$162,000
$650,000
$100,000
$900,000
$137,000
$300,000
$180,000
$2,429,000
Partners
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U.S. Department of HUD
City of Shreveport Community Development
Louisiana Economic Development (LED)
Southern University System
Louisiana Business Incubator Association
African American Chamber
Inner City Entrepreneur Institute
Incubator Clients
Business
Type of Business
Speech Therapy Unlimited
MLD and Associates
Sangbahn Scere Law Office
Chloe’ Duplessis Consulting
ACCION Texas-Louisiana
Westaff Employment Service
Speech Therapy for Children
Tax Service
Legal Services
Consultant
Micro-lending
Temporary Employee Agency
Capital One Bank
Southern University Branch
• Opened August 2010
• Located in a LMI
community
Branch Manager Presents System
Board Chair with key to the Branch
Capital One Executives, State and
Local Officials
Capital One Bank
Southern University Branch
ACCION Texas-Louisiana
• Established Local
Office in June 2010
• Funded 25 businesses
• Total Loan Amount:
$477,000
Small Business Development Activities
• Business Incubation Program
• Entrepreneurship Training
• Small Business Development, Technical
Assistance, and Incubator without Walls
• Intense Technical Assistance Program
• Business Opportunity Grants
• Small and Emerging Business Development
Program
• Youth Entrepreneurship
Business Incubation Services
• Below market office rental
• Individual business counseling
and coaching
• Technical Assistance
Training Academy for Dental
Assistants (Felicia Posey-Owner)
• Access to office equipment
and clerical support
• Certified incubation manager
by NBIA
Xpress Testing (Alysia Jones Owner)
Intense Technical Assistance
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Each Business Gives a One Year Commitment
Companies are assigned to a management, marketing, and
accounting consultant
Consultants assess the businesses and provide TA and
recommendations monthly
Goal is to Increase Profit, Market Share and Create Jobs
Spent $ 80,000 over two years providing technical assistance
Worked with 12 business owners
Five African American Business Owners were contracted as
consultants (Chronicles of Numbers, Bledsoe, Dotson, &
Associates, Cawthorne Financial Services, Tiya Scroggins
Consulting, and BMK Marketing)
Entrepreneurship Training
• Twelve individual classes
• Enrollment of 20 students
per year
• Presenters are experts in
each subject area
Entrepreneurship Training
• Networking opportunities
• Assistance with business
plan development
Graduation
Business Opportunity Grants
• Started in 2005 with
funds from City of
Shreveport
• Provide up $2500 to
businesses
• Utilized for equipment
purchases
• Awarded over $117,000
to 60 business owners
Youth Entrepreneurship
Biz Camp visit to Incubator
Biz Camp Graduation
• Partners with the ICE Institute and Caddo Schools for 11 years
in delivery of BizCamp
• Provide $90,000 in funds plus in-kind donations
• Director and Business Studies Professors assist in instruction
LED Small and Emerging Business
Development
• Provide program for five years
• Received $155,000 in funds
• Awarded $125,000 in contracts to African
American businesses
• Provided services and training to 152 business
owners
Challenges
• Staffing to meet the need of the number of clients
needing assistance
• Level of support clients need
• Client commitment and follow-up
• Administrative support required
• Resources
• Resources to engage consultants and provide intense
TA, financial assistance to a larger number of clients
• More space for new clients
Incubator Outcomes
• Initial and subsequent funding
from HUD HBCU grants
• Admitted twelve businesses into
the program
• Two businesses graduated
• Created 16 new jobs
(microenterprise owners not
included)
• Provide technical assistance to
an average of 125 per year
• Enhanced employment &
earnings
• Expanded networking
• New business formations
The End