NADO.org » Small Business Finance

Funding Opportunities from HUD for Businesses Located in an Empowerment Zone (EZ) or Renewal Community (RC)

Brett Schwartz — Fri, 14 Dec 2012 14:40:43 +0000

The Department of Housing and Urban Development (HUD) encourages businesses located in the 30 Empowerment Zones (EZs) and 40 Renewal Communities (RCs) across the nation to take advantage of unused tax credits called the EZ Employment Credit and the RC Employment Credit. Worth up to $3,000 per EZ resident and up to $1,500 per RC resident, these credits are only available to businesses having worksites located in federally designated areas and that have hired employees residing in designated areas. Unused tax credits are also available to the EZ/RC business for employees who are no longer employed by that business provided the former employee has met the specific tenure requirements. The application of the tenure requirements means that the employment credits are available for both part-time and full-time employees as long as they have been employed by the employer for at least 90 days.

Even though the EZ/RC programs have expired, there is still an opportunity to take advantage of the unused EZ and RC Tax Credits, but there is a limited time for businesses to seize upon this opportunity. EZ/RC businesses can generate refund checks by amending their prior year tax returns. As of September 2012, an EZ and RC business has less than 6 months to amend its tax return for 2009.

To learn more about this opportunity, read illustrative examples, and see contact information, click here for HUD’s full announcement (PDF).

Collaborative Leadership: Partnerships between Regional Development Organizations and Community Foundations

Kathy Nothstine — Mon, 23 Jul 2012 15:36:04 +0000

The NADO Research Foundation has released a new report, Collaborative Leadership: Partnerships between Regional Development Organizations and Community Foundations.

In an era of tightening government budgets, regional planning and development organizations need to think creatively about developing and funding initiatives that improve residents’ quality of life. Through partnerships with community foundations, both regional development organizations and foundations can leverage community and external funds, access knowledge and skills beyond their own areas of expertise, broaden their networks, and align work programs to best meet community needs.

This report explores the strategies and rewards behind eight partnerships. The East Central Iowa Council of Governments worked with a community foundation to recapitalize a small business assistance revolving loan fund, and the organizations have continued to collaborate on regional initiatives. Similarly, the East Alabama Regional Planning and Development Commission began an active partnership with the Community Foundation of Northeast Alabama through a successful public health program. Central Minnesota’s Region Five Development Commission has worked with several community foundations, after establishing a strong partnership with the Initiative Foundation. Virginia’s New River Valley Planning District Commission has helped the Community Foundation of the New River Valley discover community needs, while the Foundation has helped NRVPDC engage community members. In Texas and North Carolina, foundations and regional development organizations worked together on projects to provide wildfire relief and equip a business incubator, respectively. Oregon’s Mid-Columbia Economic Development District has been working with the Meyer Memorial Trust to develop a digital tool to connect foundations with community priorities, while the Northeastern Pennsylvania Alliance operates a resource center to facilitate partnerships. These stories demonstrate how foundations and regional development organizations can help each other leverage resources, expand their toolkits, broaden their networks, and align their work programs.

To read the full report, click here (PDF).

2012 EDFS Presentations

Matt Black — Fri, 04 May 2012 14:40:28 +0000

The Economic Development Finance Service (EDFS) is a program of the NADO Research Foundation that provides training and a network platform for small business loan fund staff from around the nation to share and exchange information and ideas. Visit nado.org/category/resources/edfs to learn more.

Schedule of Events

Tuesday, April 24

Small Business Loan Funds and Small Manufacturers: Potential for Partnerships

Across the nation, RLFs are working to help small manufacturers continue to make goods, provide jobs, and contribute to local and regional economies. A study by the Manufacturing Extension Program (MEP) found that small manufacturers seek capital for facility expansion, equipment purchase, refinancing and general working capital.

Welcome: Misty Casto, Executive Director, Buckeye Hills-Hocking Valley Regional Development District (OH)

Speaker: Doug O’Brien, Deputy Under Secretary for Rural Development, USDA

Speaker: Sean Esten, Financial Portfolio Manager, Rhode Island EDC

Speaker: Alan Singer, Lending Director, Franklin County CDC (MA)

Moderator: Erik Pages, President, EntreWorks Consulting (VA)

Innovations in Small Business Lending Programs: Noteworthy Practices

A hallmark of the Economic Development Finance Service (EDFS) is cultivation of a practitioner network that provides an environment for learning – during conferences and events, but also through electronic information sharing and exchange.

Rapid round robin presentations from small business lending programs that are using creative strategies to meet the needs of clients, resulting in job retention and creation, business growth and contributing to regional economic vitality. Group discussion will follow the round robin presentations, with a focus on ways to build programs that streamline operations while also meeting client needs. Participants will be encouraged to participate in a facilitated discussion about ways to overcome barriers and challenges to meeting the needs of small businesses in their regions.

Facilitator: Erik Pages, President, EntreWorks Consulting (VA)

Wednesday, April 25

Access to Capital in Rural Regions and Small Communities/White House Rural Council Study

A research team assembled by RUPRI is working with the U.S. Department of Agriculture to better understand issues related to capital access in rural America. The project is designed to achieve the following three objectives:

To provide USDA with a more detailed understanding of the capital market system in rural America and how it supports business development, job and wealth creation
To provide insights into effective models that support innovation within the system to improve rural business outcomes, including job and wealth creation
To provide evidence-based policy recommendations that support the creation or scaling of innovations that improve rural business outcomes

Speaker: Erik Pages, President, EntreWorks Consulting (VA)

First Things First: Evaluating Financial Statements and Business Plans

Learn successful tips for evaluating business plans and financial statements, and get an understanding of the red flags that signal potential trouble that can be avoided. This session will benefit those new to the small business lending world and will be a great refresher for those more “seasoned” loan fund managers.

Speaker: Pat Brennen, North Central PA RP&DC

Moderator: Mike Burress, Lincoln Trail ADD (KY)

Working Lunch: Rural Wealth Creation

This session will illustrate how the seven forms of wealth tool is being used to assist business development in rural communities and regions. Yellow Wood Associates has been working with The Ford Foundation on a national initiative to share the concepts with a broad audience; NADO has also been working with The Ford Foundation in targeted areas of the country to test the approaches that regional development organizations are employing with regard to rural wealth creation.

Speaker: Melissa Levy, Senior Associate, Yellow Wood Associates

Moderator: Holly Quinn, Business Loan Specialist, Northeast Nebraska EDD

Going the Distance: Making Sure the Loan Fits the Business

Learn how businesses benefit from strategic and practical loan servicing (before, during, and after the lending decision is made), and the importance of a solid technical assistance plan aimed at meeting their needs.

Speaker: Sean Esten, Financial Portfolio Manager, Rhode Island EDC

Moderator: Jeff Christensen, Business Loan Specialist, Northeast Nebraska EDD

Preparing for a Smooth Audit

This session will offer insights into what auditors are looking for, and how you can prepare your organization to sail through the process. Topics to be covered include considerations for audits while calculating loan loss reserves, making loan confirmations, engaging in management discussions and analysis write-ups, and accrued interest receivables.

Speaker: Carol Jackson, Comptroller, Mid-Ohio Valley Regional Council

Moderator: Adam Quinlan, Financial Portfolio Manager, Rhode Island EDC

Tuesday, April 24

Legislative Update: State of Small Business Programs in the Federal Budget

The current battle over deficit reduction continues to dominate the federal decision making process, and encompasses all programs including those that fund your lending programs. The funding decisions being made right now will impact our nation for decades to come. Conference participants will learn about the latest federal legislative and policy developments and the budget and appropriations outlook for the year ahead, with an emphasis on the various small business loan fund programs that you all manage.

Speaker: Deborah Cox, Director of Government Relations and Legislative Affairs, NADO

Moderator: Russ Cowley, President, NADO, and Executive Director, Six County AOG

Helping Businesses Succeed: Technical Assistance Strategies and Programs That Work

This session will provide examples of technical assistance programs and strategies that are being implemented to help businesses not only re-pay their loans, but succeed in their communities.

Speaker: Linda Rossi, Associate State Director, VT Small Business Development Center

Moderator: Paulette Potter, Loan Program Manager, Northern Tier RP&DC (NY)

Federal Program Update

This session is an outstanding opportunity to hear the latest program updates from the funding agencies and to get answers to your program questions.

Speaker: Darcy Carter, District Director, SBA VT

Speaker: Michael DeVillo, Program Analyst, EDA

Speaker: Joshua Hanford, Director, State of Vermont, HUD

Speaker: David Robinson, Business Program Director, USDA Rural Development VT/NH

Speaker: Kyle Wilber, ARC Program Manager, NY State

This event was sponsored, in part, by the U.S. Small Business Administration under a cooperative agreement (# SBAHQ-10-I-0317) with the NADO Research Foundation. SBA’s funding should not be construed as an endorsement of any products, opinions or services. All SBA funded projects are extended to the public on a nondiscriminatory basis. Additional support was provided by NADO and the NADO Research Foundation, The Ford Foundation, Bank of America and the Development District Association of Appalachia.

Public Sector Business Loan Funds: Views and Recommendations from Practitioners

Laurie Thompson — Mon, 23 May 2011 18:33:25 +0000

In an effort to improve the understanding of the public business loan fund industry, the National Association of Development Organizations (NADO) Research Foundation and the Development District Association of Appalachia (DDAA) sponsored a convening of the nation’s leading loan fund professionals in May 2010. The group met in Cooperstown, New York to address such critical issues as how public loan funds can become a more important part of the small business finance landscape, what the market niche of these funds is, and what policy and regulatory changes are needed to help strengthen the industry (August 2010).

Click here to download report (PDF).

What is EDFS?

Laurie Thompson — Thu, 31 Mar 2011 14:15:58 +0000

With their entrepreneurial fortitude and innovative spirit, small businesses are the backbone of the nation’s economy. Without them, the U.S. will be hard-pressed to be a major force in the global economy. Small businesses create jobs, bring innovation to the forefront and employ over half of the nation’s private sector workforce. The Economic Development Finance Service (EDFS) provides research, training and information to publicly funded small business loan funds managed by regional councils nationwide. The resources and tools in this section will help loan fund managers and others engaged in small business financial and technical assistance develop strategies to increase capital, better manage their loan fund operations, develop strong training programs and share information and resources with their peers.

Economic Development Finance Service

Laurie Thompson — Thu, 31 Mar 2011 14:12:51 +0000

EDFS Reporter – March 31, 2011

Laurie Thompson — Sun, 20 Mar 2011 14:17:49 +0000

New Market Tax Credits

NADO Admin — Sat, 12 Mar 2011 20:14:19 +0000

The New Markets Tax Credit (NMTC) Program offered by the U.S. Department of Treasury permits taxpayers to receive a credit against Federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs). Substantially all of the qualified equity investment must in turn be used by the CDE to provide investments in low-income communities. The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year credit allowance period.

Click Here to view a New Market Tax Credit fact sheet from the Community Reinvestment Fund