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With local economic development
agencies, home is where the financing is
By Jenny
C. McCune • Bankrate.com
 There's
no place like home -- especially when a small-business owner is
looking for support and financing. Local economic development agencies
on the municipal, regional or state level are an often-overlooked
but useful source of financing.
Although local agencies can provide everything
from training to help in securing local government contracts, they
can also be a source of loans for small companies. Sometimes the
money will come from them directly, but more frequently, the local
agency will provide a referral and help with the loan application.
Such aid is available since cities and regions
are interested in promoting the economic health of their region
and creating or retaining jobs in their area. "We want to stimulate
the economy and bring in new jobs and opportunities for our community,"
explains Greg Wingfield, president of the Greater Richmond Partnership
Inc., a public-private economic development agency that works with
businesses in Richmond and its surrounding three counties in central
Virginia.
Sometimes the toughest part about getting such
help is finding out what programs are available and who to ask about
them. Several different agencies and organizations -- some private,
some public and some that fall somewhere in between -- may handle
different facets of local economic development efforts.
Wingfield recommends checking in with your local
chamber of commerce to get some direction. "The chamber's good,
particularly for existing businesses," Wingfield says. "We ourselves
are another good resource. You should also call your state's economic
organization." He also recommends hooking up with such national
organizations as the Council
for Urban Economic Development.
Small businesses also may find local economic
groups on the Web. The Lehigh Valley Economic Development Corp.,
which provides financial succor and support to businesses in the
Northeastern Pennsylvania counties of Lehigh and North Hampton,
has an easy-to-find Web site.
Janet Smith, vice president of finance and administration, suggests
people in other areas should use a search engine and type in their
geographic location to find similar agencies. "If you plug in 'Lehigh
Valley' that should turn up our site," Smith says.
Of course, once you've found them, what they
have to offer varies. Here are a few examples of the types of financial
help they can supply to small businesses:
- The Buffalo Economic Research Corp. (BERC)
runs a small-business microloan program. Approximately $150,000
was budgeted for the program for Buffalo's 2000-2001 fiscal year.
In addition to the microloan program, BERC is
launching a SWIM -- Success with Intelligence Management -- in September.
SWIM is an alliance between all the government and nonprofit organizations
that provide small-business assistance, including BERC, Empire State
Development, ECIDA (Erie County Industrial Development Agency),
OUI (Office of Urban Initiatives) and the local SBDC (Small Business
Development Center). SWIM will bring all resources and programming
under one roof at neighborhood small-business assistance centers
to give companies one-stop aid shopping.
- The Greater Richmond Partnership Inc. of
Richmond, Va., provides matching funds for Small Business Administration-guaranteed
loans made through the local Small Business Development Center.
It also can provide referrals to a local angel
investor network, and offers incentives such as tax breaks and relocation
funds, but these generally go to large companies whose relocation
to the area would create a large number of jobs. It works with existing
businesses and startups, as well as companies considering moving
to Richmond or its surroundings.
- The Lehigh Valley Economic Development Corporation,
Lehigh Valley, Pa., runs or offers referrals to a wide range of
local loan and grant programs.
Among them are: statewide programs such as the
Pennsylvania Capital Access Program (PENNCAP); a loan guarantee
program; and Small Business First, a low-interest loan program that
helps small companies acquire land, buildings or equipment.. There
are also regional or city-based programs, such as the Bethlehem
Economic Development Corporation Loan Pool -- low-interest loans
from $100,00 to $2 million for land, building acquisition, renovation
or machinery and equipment purchases. Smith usually asks clients
where they're based and what they need money for. She uses that
information to match them to the appropriate program.
So the loan you need may be right around the
corner, if you just know where to look. Take the time to get to
know your local economic development organizations and you may find
you needn't travel far to get the financing that you need.
Jenny C.
McCune is a contributing editor based in Montana
--Posted: Sept. 29, 2000
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