1. Margaret Somer, Regional Director Small Business Development Center, Northeast Mass Salem State College

2. Massachusetts Small Business Development Center Network www.msbdc.org Network funding & key partners U.S. Small Business Administration MA Dept. of Business & Technology UMass Amherst and other institutions Small Business Development Centers Central MA SBDC - Clark University - Worcester Northeast MA SBDC - Salem State College Southeastern MA Regional SBDC – Fall River UMass Boston SBDC - Boston Western MA Regional SBDC - Springfield Berkshires SBDC – Pittsfield PTAC – Government Contracting Mass Export Center

3. GOVERNMENT FINANCING FOR BUSINESS Why does government provide business financing and services?  To stimulate technological & scientific innovation and the development of new products that government seeks, (SBIR R&D grants for new products in defense, environmental contamination…)  To generate economic activity, jobs and business opportunities  To promote and retain employment and upgrade workforce skills, (Massachusetts Workforce Investment Fund…)

4. GOVERNMENT FINANCING…  To create new financing models for the private sector to adopt (MTDC’s financing of early stage technology companies in the ‘70s; minority business financing; affordable housing in the ‘80s, …)  To support projects with significant economic impact (ATMP – Advanced Technology & Manufacturing Ctr. in Fall River; Devens, a former MA military base located in four towns; Enterprise Center in Salem)  To leverage and stimulate private sector investment (SBA loan guarantees, quasi-public financing..)

5. FEDERAL GOVERNMENT – BUSINESS FINANCING U.S. Small Business Administration – www.sba.gov SBA Loan Guarantees SBA 504 Program – acquisition of property equipment, etc. (the business finances 10%) Disaster Loans Export loans SBIR - Small Business Innovation Research Grants STTR – Small Business Technology Transfer Grants

6. SBIR - Small Business Innovation Research Grants 2.5% set aside from federal agencies since 1982 Stimulate technical innovation in small business communities to meet federal R&D needs – and commercial potential PI must be employed by small business STTR – Small Business Technology Transfer Stimulate scientific and technological innovation through cooperative R&D carried out by small businesses and research institutions. Foster technology transfer between small businesses and research institutions. PI may be employed by small business or research partner.

7. SBIR / STTR – 3-Phase Program Phase 1: Up to $100K and 6-12 month award - Feasibility study Phase 2: Up to $750K and 2-year award Full research / R&D “Phase” 3: Commercialization stage Company raises funds on its own

8. SBIR - Small Business Innovation Research Grants Who participates? 66% have 2-24 employees. SBIR / STTR – Criteria – Phases 1 and 2 Strength of scientific/technical aspect of work Ability to carry out project in cost-effective manner Project or commercial impact on US economy Evidence of commercial potential (Phase 2)

9. SBIR / STTR Resources www.sbirworld.com www.pnl.gov/edo/sbir Individual agency websites SBIR newsletters and email lists SBIR conferences and workshops

10. MASSACHUSETTS QUASI-PUBLIC LENDERS & INVESTORS Mass Technology Development Corp. – MTDC Mass Technology Collaborative MassDevelopment – Funds such as Emerging Technology Fund for tech-based manufacturing facilities & equipment The Business Development Company MA Community Development Finance Corp. – CDFC

11. MASSACHUSETTS QUASI-PUBLIC LENDERS & INVESTORS MCRC - MA Capital Resource Company MCRC’s Life Insurance Initiative – capital for economic development Property & Casualty (Insurance) Initiative – Community Development Initiative MA Economic Stabilization Trust - manufacturing

12. MASSACHUSETTS QUASI-PUBLIC LENDERS & INVESTORS – (and many more focused on later stage companies) Mass Technology Development Corp. - www.mtdc.com Equity & sub debt for early stage technology companies since 1982 Usually $250-$500K Jobs – leverage – technical innovation – nurture entrepreneurship Mass Technology Collaborative - www.mtpc.org Debt/equity for renewable energy technology firms Massachusetts Workforce Training Fund - www.detma.org/workforce Matching grants for workforce development

13. CITIES, MICROLOAN FUNDS, NON-PROFITS Debt and microloans for gap, business and project financing Business incubators with a range of services and networks (ATMP, Enterprise Center at Salem State College)  Loan Funds: City of Lynn, MA  Microloans up to $35,000  Term loans up to $350,000  Loans up to $3 million for major development projects

14. Other Interesting Resources…  Circle Lending –www.circlelending.com  Manages lending among family and friends -  MA Alliance for Economic Development-www.massecon.com  Assistance with site location

15. Margaret Somer, Regional Director Small Business Development Center (SBDC) Northeast Region - Salem State College 121 Loring Ave., Suite 310 Salem, MA 01970 Tel. 978-542-6343, x. 1 msomer@salemstate.edu www.salemstate.edu/sbdc