Financing & Grants

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Financing

& Grants

August 5, 2021

The Montana Small Business Development Center Webinar Series presents:

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

QUESTION FOR ATTENDEES?

Type into the chat box...tell us why you're attending:

Are you here to learn more about accessing capital to:

• Starting a business?

• Growing a business?

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Jennifer Stephens, MBA

Regional Director - Missoula SBDC

Education

• 1999 – Gonzaga University – BA Journalism

• 2005 – University of Montana – MBA emphasis on entrepreneurship and marketing

• 2005 – University of Montana – Non-Profit Administration Certificate

Certifications

• 2016 – present – Accredited Small Business Consultant (ASBC)

• 2012 – 2014 – Inbound Certified, Hubspot

Entrepreneurship

• 2004 – present – Groundswell Media Productions, Missoula, MT

• 2005-2016 – Montana Web Designers & Developers Association, Missoula, MT

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Jason Nitschke; MA, EDFP

Vice President -- Great Falls Development Authority

Regional Director -- Great Falls SBDC

Education

• 1997 -- University of Montana – BA Journalism/Pol. Sci.

• 2002 -- Hawaii Pacific University – MA Communications

Certifications

• 2017 – Certified Export Counselor

• 2017 – Certified Profit Mastery Facilitator

• 2015 -- Economic Development Finance Prof. (EDFP)

• 2015 -- Accredited Small Business Consultant (ASBC)

• 2015 -- Certified Business Advisor (GrowthWheel)

Entrepreneurship

• 2000-2002 -- JNitschke Photography; Denver, CO

• 2011-2012 -- Carondelet Estate Services, LLC; St. Louis, MO

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Goals for Today

• Assist in defining needs

• Learn how to find relevant programs and opportunities

• Evaluate types of federal and state governmental programs

designed to support business

• Evaluate types of private, non-public programs designed to

support business

• Apply appropriate programs to a business/your business

• Understand the time commitment and upfront costs

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Financing

Sources of Capital

• MUST:

• #1) What is the money for?

• Support cash flow, capital purchases, develop a product/service

• #2) When is the money needed?

• RELEVANCE?

• Determines which financial statement the money is counted on:

•Income Statement (Profit/Loss)

• Revenue – Expenses = Profit

•Balance Sheet

• Assets = Liabilities + Net Worth

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Financing

Sources of Capital

• WHAT + WHEN = WHERE (it shows up on the financials)

•MUST:

•#3) How much is needed?

• This may require cost documentation via estimates, bids, or quotes.

• This may require staffing plan with supporting market data.

• This will also trigger the need for a financial projection.

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Financing

Types of Sources of Capital

• Equity – the investment of capital into a business balance sheet with no pay back

• You (personal funds, home equity, sale of stock, personal credit)

• Partners (their personal funds, home equity, sale of stock, personal credit)

Do you have a comprehensive partnership agreement?

• "The crowd"

• Investors (crowd funds, angels, "aka: rich uncles", or Angels)

• Laws, rules, procedures, and stages of business may all be relevant here

For more information about securities law in Montana, please visit: https://csimt.gov/securities/capital-

formation/

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Financing

Types of Sources of Capital

• Debt – the lending of capital to a business balance sheet that must be paid back

• Direct: Banks, Credit Unions (prime plus 1-2)

• Direct & Participation: Micro-lenders, gap & bridge financers (prime plus 5)

• Non-profit lenders, CDFIs, Port Authorities, 7 other public partners

• Loan guarantors (guarantee to the bank, credit union, or other lender)

• SBA 7a (up to 85%)

• USDA Business & Industry (up to 90%)

• State of Montana - Montana Board of Investments

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Grants

Launching or scaling?

• What is it for? More important for grants because of sources being limited and specific.

• When do you need the funding? Time limited and often annual application process. May be longer time

to receipt of funds.

• Where? - Rural v. urban grants. Different grants available depending on population designation.

• How much? Utilize the same business plan and revenue projections that would be used for a loan

request.

• Who? Telling a story to the review committee. What do they value? What impact are they trying to make?

How could your business help create that impact?

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

• Use your match to leverage public money that builds the value

proposition of the company long-term. "Investment in assets

(marketing assets included) over advertising (marketing expense)."

• Important to know:

• Grants to for-profits are limited

• Grants are restricted to use type

• Grants require match

• Grants are reimbursement based

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Grants

• Value-Added Agriculture

• Growth Through Agriculture (MT Dept of Ag), https://agr.mt.gov/GTA

• Value Added Producer Grant (USDA), https://www.rd.usda.gov/programs-services/value-added-producer-

grants

• Workforce

• Incumbent Worker Training (MT Dept. of Labor & Industry), https://wsd.dli.mt.gov/employers/incumbent-

worker-training-program/

• Workforce Development Grant & Subsidized Employment (MT Dept. of Labor & Industry)

• Contact local Job Service offices https://montanaworks.gov/

• Big Sky Trust Fund – Job Creation & Primary Sector Workforce Training

• https://marketmt.com/Programs/Business-Assistance/Big-Sky-Economic-Development-Trust-Fund-

Program/Job-Creation

• https://marketmt.com/Programs/Business-Assistance/Primary-Sector-Workforce-Training-Grant/

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Grants

• Environmental Assessment

• Brownfields Region VIII Map:

• https://www.epa.gov/brownfields/brownfields-and-land-revitalization-region-8

• Brownfield award search database, sortable by state and award year.

• https://java.epa.gov/acrespub/gfs/

• Indian Country

• Indian Equity Fund (MT Dept. of Commerce)

• https://marketmt.com/Programs/Business-Assistance/Indian-Country-Programs/Indian-Country-

Economic-Development-Program/Indian-Equity-Fund-Small-Business-Grant

• Export Assistance (MT Dept of Commerce) aka Export Montana

• https://marketmt.com/Programs/Business-Assistance/Export-Montana/Grants-for-Exporters

• Import Assistance

• Montana World Trade Center, https://www.mwtc.org/

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Grants

• Technology Innovation,

• SBIR/STTR, https://marketmt.com/Programs/Business-Assistance/Montana-SBIR-STTR-Matching-Funds-

Program/

• iCorps Customer Discovery Program, https://www.umt.edu/launchpad/events-programs/icorps/default.php

• Planning, Big Sky Trust Fund, https://marketmt.com/Programs/Business-Assistance/Big-Sky-Economic-

Development-Trust-Fund-Program/Planning

• Women-Owned Business Grants, https://www.prosperamt.org/womens-business-center/business-tools

• Prospera Impact Grant, https://www.prosperamt.org/womens-business-center/impact-grant

• Veteran-Owned Business Assistance, http://www.vbocregion8.com/

• USDA Rural Business Development Grants, https://www.rd.usda.gov/programs-services/business-

programs/rural-business-development-grants

• Grants aggregators:

• Montana Grants and Loans, https://funding.mt.gov/index.do

• Federal Grants, https://www.grants.gov/

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Video Resources

• Kauffman Sketchbook - "Money Game", https://www.youtube.com/watch?v=U470xXKfDyE

Leveraging Public Fund for Business, Brigitta Miranda-Freer, Montana World Trade Center

• STEP and Made in MT Presentation Video

• SBA and EXIM Presentation Video

• TIFs, TEDDs, URDs Presentation Video

• MOFI Presentation Video

• Missoula Job Service Presentation Video

• SBIR and STTR Presentation Video

• Big Sky Trust Fund and Workforce Training Grant Programs Presentation Video

• MBOI Programs Presentation Video

• Value Added Ag Programs Presentation Video

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Help Available

• SBA Resource Partners: SBDC – Women’s Business Centers – Veterans Business Outreach Centers

• https://www.sba.gov/local-assistance

• https://sbdc.mt.gov/

• USDA Rural Development offices, https://www.rd.usda.gov/mt

• University-based business technical assistance programs

• Montana Manufacturing Extension Center, https://www.montana.edu/mmec/

• Montana Innovation Program, https://montanainnovationpartnership.org/

• Accelerate Montana, http://acceleratemontana.umt.edu/

• MSU-Extension, https://www.msuextension.org/

• State-based business technical assistance programs

• Montana Works/ Montana Job Service, https://montanaworks.gov/

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Help Available

• Local Economic Development Organizations,

• https://www.medamembers.org/

• Local Chambers of Commerce,

• https://www.montanachamber.com/

• Certified Regional Development Corporations (CRDCs) in your region:

• https://marketmt.com/Programs/Business-Assistance/Certified-Regional-Development-Corporations/

• Local Port Authorities in your region, look up by county

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Success Story Examples

• Auto shop - SBA 504, Brownfields, Owner Equity from home refi

• Healthcare - Indian Equity Fund, Collateral

• Plumbing contractor - Veteran – 7(a) fee waived or reduced, PTAC government contracts

• Skincare product manufacturer – Windrift Hill - Women's grants – Prospera Impact Grant, MMEC for

scaling and expanding (building + staff)

• Retail home items – SBA 7(a), Bank financing, Friends and family financing

• Fitness – Own savings with financial workbook template review

Funded in-part through a Cooperative Agreement with the U.S. Small Business Administration and the Montana Dept. of Commerce.

Questions?

Thank you!!