Workshops/Call To Action events Community events Referrals from partners. 1:1 Technical Assistance (provided through office hours, mentors, etc.

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Eunice Morris
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Core City: Cleveland Role Programs Anticipated Outcomes Engage with potential entrepreneurs and drive awareness & understanding Workshops/Call To Action events Community events Referrals from

1 Core City: Cleveland Role Programs Anticipated Outcomes Engage with potential entrepreneurs and drive awareness & understanding Workshops/Call To Action events Community events Referrals from partners 300+/year Some referred to partners: Urban League, ECDI, HBC, NOMDC, President's Council, etc for continued support 1:1 Technical Assistance (provided through office hours, mentors, etc.) 150+/year Spend the most time and provide more value with those entrepreneurs who are most engaged and highest potential (Paid staff or mentors provide assistance) Most intensive support for businesses with highest potential for growth and jobs Intensive 1:1 Assistance Cohorts for highest potential companies 80/year 20 30/year 200+ jobs over three years 1

3 ORGANIZATIONAL OVERVIEW The Economic and Community Development Institute s (ECDI s) mission is to invest in people to create measurable and enduring social and economic change. Since inception in 2004, ECDI s services have grown into a comprehensive one-stop shop designed to help underserved entrepreneurs start and expand small businesses. Programming includes foundational Financial Literacy Training, innovative Microenterprise Development training, industry specific training, capitalization programs, and business incubation services that provide clients access to new customers and markets. As the 3rd largest SBA Intermediary Micro-lender in the country (largest in Ohio) and a U.S. Treasurycertified Community Development Financial Institution (CDFI), ECDI serves all 88 Ohio counties. ECDI has assisted over 10,000 individuals, disbursed over $37 million through over 1,700 loans, and created and retained over 6,600 jobs via our comprehensive suite of programs available through our offices in Cleveland, and Akron, and Columbus Ohio; and Field Offices in Toledo and Cincinnati. Programs and services have been supported by over $65 million in federal, state, local and private funds and have proven to create jobs, build human capital, and spur local and regional economic development. Since ECDI began lending in Cleveland in 2012, over $7.5 Mil in loan capital has been invested in small businesses. Of that, over $3.1 Mil was invested in firms owned by low-to-moderate income, and more than $2.5 Mil was lent to minority owned firms. These investments have helped businesses in the City create 509 jobs, and retain 723 additional jobs. DEFINING THE NEED From the Mayor Wealth Creation Initiative: Many east side neighborhoods were hardest hit by the foreclosure crisis, that led to abandoned homes that were stripped of anything salvageable, causing the City to demolish thousands of homes. The vacant, blighted and demolished homes led to blight and crime that caused many remaining residents to move to other neighborhoods in Cleveland and surrounding suburbs. This has left many of these east side neighborhoods with the highest concentrations of poverty. But a community is not truly a community without local jobs and local businesses. People want a walkable community with restaurants and retail providing a sense of place. To accomplish this, our strategy includes retail incubators in each neighborhood and funding to both redevelop storefronts and attract new businesses. To provide wealth-building opportunities for local residents, we will support non-profit local partners to support entrepreneurs. pg. 1

4 MEETING THE NEED In partnership with the City of Cleveland, ECDI will administer a revolving loan fund (RLF) to provide access to capital to food based businesses opening in targeted East Cleveland neighborhoods. Additionally, ECDI expert staff experience will administer training and technical assistance with specialized curriculums crafted for food based business owners looking to start or grow their business. This is an area where ECDI has a proven track record. In 2011, ECDI received an HFFI grant to convert an on-site warehouse (located in a USDA Food Desert) into a food-based business incubator, equipped with a 1,400 square foot, fully licensed commercial kitchen. Known today as The Food Fort, the once vacant warehouse is now a vibrant space where chefs, caterers, bakers, wholesalers, food truck and cart operators work collaboratively to grow their independently owned businesses. The Food Fort s success has exceeded all expectations. Waitlists and unmet demand led to ECDI expanding into an additional warehouse to expand programming. Today, many of the pioneering entrepreneurs that worked out of the Food Fort have moved into their own brick & mortar, secured major vendor contracts, or operate multiple food trucks. The space they leave behind in the Food Fort is immediately replaced by other aspiring business owners. To date, Food Fort business owners have created more than 200 jobs in Columbus, a majority of which have been filled by low-income individuals. ECDI s exposure to these business owners who operate in such a precarious industry have provided swaths of experience and lessons learned to guide future endeavors like the one proposed here. ECDI staff are knowledgeable about the industry and the needs of food-based small businesses and can offer a high level of technical assistance to help them navigate Cleveland s entrepreneurial ecosystem. In particular, ECDI s Director of Food Services and Food Safety, Bob Kramer R.S., will be able to provide support to ECDI Cleveland during the implementation phase. Bob joined ECDI s team in July Bob administers technical food safety assistance to Columbus clients and teaches ECDI s Level 1 Food Safety training course. Additionally, he is integrally involved with the planning, managing and developing the Community Food Incubator Food Cart Commissary. Furthermore, he identifies potential partner organizations for ECDI s programs and services and recruits clients for the Food Fort. Bob brings to ECDI more than 30 years of experience with Columbus Public Health. For 12 of those years, he served as Supervisor of the Food Safety Program. ECDI S ONE-STOP-SHOP With an objective to invest, educate and innovate in local underserved and vulnerable populations, on-site small business training, incubation, and acceleration programs and services are seamlessly connected to ECDI s microloan and technical assistance programs. ECDI s Women s Business Center and The Dealership offer co-working and networking space. Amenities include a computer lab with internet access and copying/printing capabilities, meeting space, and a resource library. Small business development training and one-on-one support for current or prospective low-income entrepreneurs is available. Marketing, training staff, and expert volunteers are also available for client interaction and mentoring. ACCESS TO CAPITAL pg. 2

5 ECDI s loans range from $500 to $350,000, with startup business loans capped at $75,000. ECDI works with a unique clientele and as such, provide flexibility in our lending efforts. Start-ups and young businesses often lack regular cash flow, collateral, or other factors sometimes disqualifying them from conventional financing. ECDI accepts non-traditional collateral such as older used vehicles, and can provide custom repayment schedules, deferred payments, long amortizations, and other features to enable businesses with sound plans and capacity to obtain financing. ECDI s financial products, which have an average interest rate of 8.5%, are less expensive than both conventional and online alternative lenders, supporting success and viability. ECDI also offers Launch Loans loans up to $2500 for individuals struggling to improve their credit rating. These loans are ideal for small businesses in need of immediate cash flow, as they can be completed in a 2-week period and are payable over a 9-month term. TRAINING ECDI proposes to craft a curriculum that blends four of our existing curriculums. This course would be 24 hours, 3 hours per week over 8 weeks, and be tailored for a cohort of primarily neighborhood food based entrepreneurs. I. Food-based Basics is designed to introduce chefs and restauranteurs to the business aspect of food and how to get a food-based business off the ground. This 9 week course features lessons on food safety and regulation, marketing and branding, hospitality and sales, financial management, pricing, labeling and packaging, legal issues, business modeling and more. Participants have the opportunity to learn from experts in the field as well fellow small business owners and ECDI who have navigate the same path. II. III. IV. Food Safety 101 is approved by the Ohio Department of Health as a Level 1 Certification in Food Protection. The course provide hands-on approach to food safety for managers and employees. The goal is to achieve on-site and long-term compliance with the Ohio Uniform Food Safety Code. Scrathmade is a course for small business that sell hand crafted packaged products. The course covers topics like business modeling, pricing, cash flow, labeling and packaging, regulations, validation and market research and more. The Class provides mentor and coaching opportunities where participants can meet with an array of business and food experts, financial advisors, lawyers, and peer-to-peer learning. The Small Enterprise Education Development (SEED) Training Series is designed for entrepreneurs ready to enhance their business idea or expand an existing small enterprise into a viable and profitable business. Entrepreneurs taking this course focus on four critical developmental areas -- business concept, organization, customer relations, and operations. The series utilizes GrowthWheel, an interactive tool that helps entrepreneurs develop their business through an action-oriented process. Participants complete homework assignments to assist them in developing a business plan and 30/60/90-day action plan. The blended curriculum created for this initiative will highlight the most pertinent topics from these existing curricula, including: pg. 3

Business plan development Cash Flow Pricing and Packaging Food Safety & Regulations Market Research Customer relations and Operations And more TECHNICAL ASSISTANCE In contrast to traditional lending

6 Business plan development Cash Flow Pricing and Packaging Food Safety & Regulations Market Research Customer relations and Operations And more TECHNICAL ASSISTANCE In contrast to traditional lending institutions, ECDI provides intensive pre- and post-loan technical assistance throughout the life of the loan (up to 60 months) which includes capability and feasibility assessments, assessment of credit worthiness, assistance with credit issues, solidifying business plans, quarterly on-site visits, and an annual review of financials. This true partnership and clear understanding of client business models, in addition to post-loan technical that includes troubleshooting unforeseen circumstances results in increased likelihood of success and minimizes default risk. It is for this reason that ECDI is able to lend to our target market that includes low-to-moderate income individuals, minority and refugee populations, women, those with little or no credit, and those unable to receive a loan from a traditional financial institution. It also enables us to support main street businesses, including food-base businesses (traditionally considered riskier for banks); and smaller loan amounts (not lucrative for traditional lenders). CURRENT REQUEST ECDI is requesting $620,000 over a two year period from the City of Cleveland, which will be leveraged with $377,000 in ECDI loan funds. City of Cleveland funding will allow for the inception of a revolving loan (RLF) fund, with: $423,000 will be set aside for small business loans in Cleveland, with an emphasis on eastside neighborhoods and food-based businesses, and leveraged with $377,000 in ECDI funds, resulting in 40 loans at $20,000 each; $38,400 utilized for Loan Loss Reserves; and $158,600 used to fund training and technical assistance programming. o ECDI will provide training to at least 40 entrepreneurs per year (80 total). o Of the 40 entrepreneurs that go through training annually, ECDI anticipates that 4-6 individuals will move into incubation space or a retail/restaurant storefront rehabilitated or operated by the City and its partners. o All lending clients will receive loan packaging preparation and technical assistance throughout the life of their loan (up to 60 months). They will become intimately familiar with the processes to seek additional capital in the future either from ECDI or a traditional lending institution. pg. 4

Wisconsin SCORE: An Overview 2016 LENDERS CONFERENCE ALL THE PLAYERS. Foster vibrant small business communities through mentoring and education.

Wisconsin SCORE: An Overview 2016 LENDERS CONFERENCE ALL THE PLAYERS. Foster vibrant small business communities through mentoring and education. 2016 LENDERS CONFERENCE ALL THE PLAYERS ALL THE PLAYERS Panel Members Dave Maaske, SCORE Luke Kempen, SBDC Wenda Roycraft, Lincoln Opportunity Fund Mike Hetzel, WWBIC Dave Kircher, WI Minority Chambers