Grant Writing Workshop MOO- LA? James D. Gage August 1, 2014 American Cheese Society
X
Purpose of the Workshop 1. Discuss grants and other financing as part of a business strategy 2. Discuss common elements of grants how can I be prepared to effectively fill out a grant? 3. What examples are appropriate to American Cheese Society members? and answer any questions that you may have
The workshop audience?
The world of financing -- very generalized Property, buildings, equipment Equipment Product research and other innovations Planning new product; expansion of business Self and family/friend resources; traditional financing, equity investment, economic development programs, special programs SBIR, SARE, University partnerships VAPG Planning, Small business assistance Running your business (working capital, including marketing costs) VAPG Working Capital, LFPP, Other state grants (MN)
Financial Support -- What s the difference? 1. Grant 2. Low-Interest Loan 3. Investment & Traditional Financing 4. In-kind investment
Who gives grants? Federal agencies State and local agencies Foundations Private companies Universities
Enough with the Intro. Let s Talk Grants
Preparing for a grant Do you have the following for your business or project? Articulated Vision new direction or innovation Business Plan and/or Feasibility Study - a document that describes the critical elements of your business First Draft of Financials 1-2 years of current business (if ongoing), and 3-5 years of future financials
Preparing for a grant writing style &
Intro Paragraph and Bullets Pastured Brown Swiss milk from Anyfarm - with its high butterfat and protein characteristics -- gives many of the cheeses a richness, both in flavor and natural deep yellow coloring. In the last six months, the Creamery has emphasized their three lines of products fresh cheeses, farm fresh, and aged and each has created a niche in the marketplace. Specifics about selected products are as follows:
Throughout the summer of 2004, Anyfarm produced 300-400 lbs of cheese curds each week and sold out every time. Even though there are curds that come from well-known cheese companies in Wisconsin, the local production of the curds make it a specialty product; the 23-store upscale retailer Big Store purchases the majority of the weekly make for its customers. Although in the market place for a mere four months, Anyfarm hand-stretched fresh mozzarella is in demand by both consumers and restaurateurs. It recently won a silver medal at the state cheese competition (http://www.website here.com). Restaurateurs and other cheese expert have favorably compared Anyfarm whole milk mozzarella with nationally recognized brands like B Cheese, C Cheese, and P Cheese. Anyfarm aged cheeses are lower volume products that afford a higher profit margin. The three aged cheeses provide consumers with a choice, offering a range of sweetness, nuttiness and complexity. Anyfarm Tomme, for instance, sold out (800 pounds) in 2 months to restaurants who put it on their cheese plates and in specialized recipes. The Anyfarm farm fresh cheeses are versatile for both consumers and restaurants. Restaurateurs use them as ingredient in upscale cooking and find them to be superior to commodity cheeses. Many Farmers Market consumers enjoy these cheeses on sandwiches. A new aged cheddar recipe is becoming very popular at Farmer s Markets, and chefs at Local University are interested in purchasing volumes of this product.
Summarize Original Data in Tables
A few more writing tips No jargon Quotes are OK if they are sourced Include Internet sources as footnotes give the reviewer a chance to become engaged No first person Quantity, quality, and time for specifics Be VERY aware of the award points
A Few Hot Button Issues Expansion of the Market Job Creation Increase in profitability Technical Approach Business Approach Financial Specifics
A Few Hot Button Issues (con t) Organizational and/or Financial Sustainability Measure Success Who supports the project? Letters of commitment Proposed workplan and requested funding Others
Selected Frequently Asked Questions If the maximum grant award is $200,000 - should I ask for the max? What is the deal with grants.gov? Should I use a grant writer? How are the awards for each grant determined? How closely should I read the grant announcement? Should I use a template?..other questions from participants?
Example 1: Value Added Producer Grant
Selected Components of the VAPG Working Capital and Planning Grant Specifications modified each year 60-90 day writing period to complete a 50-page application 1:1 match Working Capital funds: oprocessing support osalary support outilities and Fees oadministrative Needs odistribution oimplementing a Marketing Plan
Group Exercise VAPG Question Describe the operational efficiency of the project (i.e. sufficient raw commodity, use own facility or toll processing, share a processing space, energy efficiency aspects, waste management, sufficient labor or expertise, logistics for storage or distribution of valueadded product)
Example 2. Minnesota Value Added Grant (in 4 pages) 1. Executive Summary 2. Overview of Farm and Value Added Business 3. Description of the Challenge Addressed 4. Workplan 5. Expected Outcomes and Project Evaluation Plus Budget Narrative, Forms, and Letters of Support
Example 3. Small Business Innovative Research (required to be completed in grants.gov) Project Summary Project Narrative (16 pages) oresponsiveness to USDA SBIR Program Priorities and Societal Challenge Areas oidentification and Significance of the Problem or Opportunity obackground and Rationale orelationship with Research or Research and Development otechnical Objectives oworkplan orelated Research or Research and Development opotential Post Application osatisfying the Public Interest
Small Business Innovative Research (con t) Bibliography & Cited References Facilities & Other Resources Equipment Documentation Other Attachments Personal Data Budget
Congratulations You WON the Grant!!!!!!! Paperwork, paperwork, and more paperwork Contract with the granting agency Reporting throughout the period of the grant Getting the $$
Last Word: Using Grants and Loans as part of a Business Development Process A line of credit for $75,000 from the local bank An Industrial Development Bond that involved the local bank, local legislature, bond attorneys, and the Department of Commerce for long-term (infrastructure) and short-term (equipment) loans. Approximately $3.5M A USDA Beginning Farmer loan for costs related to the milk production enterprise. Low-interest loans ($690,000) through the county Economic Development Corporation, the Department of Commerce, and Farm Services Agency. Dairy Plant Improvement Tax Credits rebate up to $20,000 possible on infrastructure and equipment. A $300,000 USDA VAPG Working Capital grant Solicitation of investor funding for the project. $570,000 Other funding pending
Last Last Word: Dropbox Resources Additional examples Sample Letters Sample Forms Other resources Up by August 20.
Additional Questions? Thank You James D. Gage Consulting, Inc 920-723-0083 jdgage60@gmail.com