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Help for Start-Ups, Part 1: Grants for technology and other “high-growth, high-impact” businesses
Nico Janssen
Post date: 07/18/2011 - 13:12

If you’ve spent any time reading through the Loans and Grants discussion board, you would notice that one of the most commonly asked questions is “how do I get a grant from the government to start a business?”

Despite what you might be led to believe on late-night infomercials, there is no free money or grant available from the federal government to start a business. However, in certain limited circumstances, the government does provide grants to businesses that help create jobs. Many of these government grant programs are targeted at technology companies that do research or make innovative products.

This is the first blog article in a series that will catalogue government programs that are specifically targeted at technology startups and entrepreneurs (sometimes referred to as “high-growth, high-impact firms” or high-tech start-ups). In the next update, we’ll look at loan programs.

Advanced Research Projects Agency (ARPA-E), U.S. Department of Energy

ARPA-E sponsors several different funding opportunities for those exploring creative technologies that promise to transform the ways we generate, store and utilize energy. The program partners with universities, firms, and small businesses. ARPA-E’s funding opportunities include programs and partnerships in the areas of solar technology, rare earth alternatives, and advanced thermal storage.

Self-Employment Assistance Program, U.S. Department of Labor

The Self Employment Assistance Programencourages and enables the unemployed to create their own jobs by starting small businesses. Participants receive weekly allowances while they are getting their businesses off the ground. Under these programs, States can pay a self-employed allowance, instead of regular unemployment insurance benefits, to help unemployed workers while they are establishing businesses and becoming self-employed.

Broadband Technology Opportunities Program, U.S. Department of Commerce

The Broadband Technology Opportunities Programdistributes grants to expand broadband access and adoption in communities across the country. The National Telecommunications and Information Administration (NTIA), administers the program, which aims to provide improved broadband internet facilities, new public computer facilities, and increased broadband usage among vulnerable populations where broadband technology has historically been underutilized.

The VA Innovation Initiative (VAi2), U.S. Department of Veterans Affairs

VAi2is a department-wide program designed to bring the most promising innovations to Department challenges in order to create visionary solutions in service to Veterans.  VAi2 has funded innovations in health care delivery, drug prescription systems, and business development.

Rural Energy for America Program, U.S. Department of Agriculture

This grant program, aimed at rural American communities, funds assistance to agricultural producers and rural small businesses to purchase and install renewable energy systems and make energy efficiency improvements. The program is designed to assist farmers, ranchers and rural small businesses that are able to demonstrate financial need. 

Additional Resources:

SBA Guide to Loans and Grants

SBA Community Article on Job Creation Grants

Federal government grant and application information at Grants.gov

Helping Communities Prosper: Growing Businesses, Creating Jobs and Opportunity
Nico Janssen
Post date: 07/06/2011 - 13:09

 

By Dennis Byrne

We work in them or we work near them. We live in them or we live near them. They are underserved communities – places where times are tough, jobs are few, and many small businesses struggle.

Underserved communities were hit disproportionately hard by this recession and need our help and focus more than ever.

But how can we get small businesses, the “backbones” of these communities, back on their feet to perform the vital role they play in these economies?

The U.S. Small Business Administration (SBA) is aggressively working with community-based, mission-focused lenders to make Community Advantage loans to small businesses.

The new Community Advantage pilot initiative was announced by SBA in December of 2010 and is designed to expand access to lower dollar loans and lending in traditionally underserved communities.  SBA and U.S. Department of Commerce studies have shown the importance of lower dollar loans to small business formation and growth in underserved communities.

Built on what SBA refers to as its “Advantage” platform, both Small Loan Advantage and Community Advantage offer a streamlined application process for SBA-guaranteed 7(a) loans up to $250,000. Advantage loans will come with the regular 7(a) government guarantee, 85 percent for loans up to $150,000 and 75 percent for those greater than $150,000.

“Businesses in underserved communities, including minority and women-owned as well as businesses in rural areas, have been among the hardest hit by the recent economic downturn,” said SBA Administrator Karen Mills. “These two new Advantage initiatives can provide critical support to help these businesses and entrepreneurs get much needed financing to start and grow, which will translate into more jobs in these communities.”

Community Advantage is aimed at increasing the number of lower-dollar SBA 7(a) loans going to small businesses and entrepreneurs in underserved communities. The agency’s most popular loan product, 7(a) government-guaranteed loans, can be used for a variety of general business purposes, including working capital and purchases of equipment and real estate. 

Through Community Advantage, the agency is expanding the points of access small business owners have for getting loans by opening SBA’s 7(a) loan program to “mission-focused” financial institutions, including Community Development Financial Institutions, SBA’s Certified Development Companies and SBA’s nonprofit micro-lending intermediaries. Community Advantage leverages the experience these institutions already have in lending to minority, women-owned and start-up companies in economically challenged markets, along with their management and technical assistance expertise, to help make their borrowers successful.

For more information:

Community Advantage Loans and Small Loan Advantage:

http://www.sba.gov/advantage

Contact an SBA District Office: http://www.sba.gov/about-offices-list/2

 

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Idea Exchange: How Does Your Business Prepare for a Natural Disaster?
Nico Janssen
Post date: 07/06/2011 - 13:01

 

Getting back to business after a disaster depends on how prepared you are today. As a small business owner, you invest your time, money and effort to make a venture successful. Having an emergency plan in place before a disaster strikes can mean staying in business after a disaster, and in some cases, saving your company.  As hurricane season begins, disaster preparedness is critical.

Last month, we asked small business owners in the SBA Community for their advice on putting together a disaster preparedness plan, and for those that experienced a disaster, we asked about the steps they took to help their business recover after the disaster. Here are some of their tips:

Invest the Time to Make a Plan

inevolvesb advised businesses take a disaster scenario seriously and make the smart move to put together a preparedness plan, saying “it makes good business sense to have a plan. It doesn't require a huge investment to protect your company either.”

Test Your Plan Frequently

smallbusinesshelp recommended testing a recovery plan annually, or more frequently, in order to gage its effectiveness. They commented “by testing your plan each year, you ensure that the plan is still up to date and relevant to your present situation.”

Backup Your Files Electronically

rribeiro and LifeCube suggested businesses use a remote access system to backup valuable IT resources in the event of a natural disaster, or use an IT “Cloud”. Rribeiro commented  “if your business is able to operate remotely, while others around you aren't, not only will your data and operations be safe, but you'll be ahead of the game.”

 

How to Determine if You Are a “Small” Business
Nico Janssen
Post date: 06/28/2011 - 10:15

 

By Tiffani S. Clements

If you are thinking about starting a small business, you may be wondering what the U.S. Small Business Administration (SBA) considers to be a small business. To determine whether your business qualifies as small, you must be able to answer “yes” to these questions:

  • Is your business independently owned and operated in the United States?
  • Is your business operated on a for-profit basis?
  • Does your business make a significant contribution to the U.S. economy by paying taxes or using American products, materials or labor?
  • Does your business meet the numerical size standard for its industry?

Despite what you may have heard, a business can qualify as small whether it is organized as a sole proprietorship, a partnership, a corporation or any other legal form, as long as it meets the four conditions above. The SBA has a numerical size standard for all private sector industries in the U.S. economy and uses the North American Industry Classification System (NAICS) to identify those industries.  Depending on the characteristics of the industry, size standard eligibility is based on either the average number of employees for the preceding twelve months or on revenues averaged over a three-year period.  It is important for a small business to meet the SBA’s criteria for size standards eligibility in order to apply for SBA financial assistance, and also to be eligible to receive federal contracts that are set-aside for small businesses.

 Small businesses seeking federal government contracts must have their small business profile listed in the Department of Defense’s Central Contractor Registration (CCR) database at www.ccr.gov , where contracting officers look to procure goods and services from small businesses for the federal government.   In Fiscal Year 2010 alone, the federal government awarded nearly $100 billion dollars in federal contracts to small businesses! 

General Size Standards

The SBA has established several general size standards that  vary by industry and are either revenue-based or employee-based.  They include Construction, Manufacturing, Mining, Retail Trade, Services, Wholesale Trade and Agriculture.  In general, revenues for the general and heavy construction industry may not exceed $13.5 million to $17 million, depending on the type of construction.   Revenues for the services industry may not exceed $2.5 million to $21.5 million, although there are exceptions rising to $25 million depending on the particular product being provided. 

For businesses in the retail trades, revenues may not exceed $7 million, but there are a number of exceptions.  In Agriculture, the maximum can be as much as $9 million, depending on the agricultural product.    

Generally, speaking size standards are based on the number of employees for businesses in mining services (500 employees maximum), the wholesale industry (ranging from 100 to 500, depending on the products involved), and for manufacturers, generally set at 500 or fewer employees, but with some exceptions ranging up to 1,500).

To view the various size standards for individual industries, take a look at SBA’s Table of Small Business Size Standards by NAICS industry on SBA’s Size Standards Web page at: www.sba.gov/size.

SBA’s Changes to Size Standards

In 2007, the SBA began the process of reviewing and updating size standards based on industry-specific data.  Before this, the last overall review of size standards occurred more than 25 years ago.  The process takes into account structural characteristics within individual industries, including average firm size, the degree of competition, and federal government contracting trends to ensure that size definitions reflect current economic conditions within those industries. 

As a result, some small businesses that are on the brink of exceeding their current size standards will be able to retain small business eligibility under higher size standards.  Also,  federal agencies will have a larger selection of small businesses to choose from for small business procurement opportunities and more small businesses will be able to qualify for financial assistance from the SBA.  SBA estimates that thousands of additional firms will become eligible for SBA programs, if the revisions are adopted. 

The SBA comprehensive review of all size standards will continue for the next several years.  The most recent proposed update to SBA’s size standards was on May 13, 2011, for the transportation and warehousing sectors and SBA is accepting public comments at: www.regulations.gov  until July 13, 2011.  

To see how the SBA establishes, reviews and modifies its revenues-based and employee-based small business size standards, you can view SBA’s White Paper entitled, “Size Standards Methodology,” at www.sba.gov/size.

If you have questions about whether your business is a small business, e-mail: sizestandard@sba.gov. 

No matter what industry your business may be in, the SBA stands ready to help you start, grow and expand your small business!

Additional Resources

Small Business Size Regulations 13 CFR §121.201

Guide to SBA’s Size Standards:   www.sba.gov/size .

Getting Started in the Animal Care and Services Industry
Nico Janssen
Post date: 06/14/2011 - 10:48

By Ashley Cassels

A love for animals may drive your passion to begin a career in the animal care and services industry, but you will need more than that to ensure professional success. Groomers, kennel attendants, trainers, and pet sitters each have a unique set of responsibilities. Read on for detailed descriptions of what to expect in each of these professions.

Types of Animal Care Businesses

If you want to start an animal care business, first think about the type of services your business will provide.  Below we’ll review a few of the more popular animal care professions.

  • Groomers– specialize in maintaining a pet's appearance. Groomers work in kennels, veterinary clinics, and pet supply stores.  Although, some groomers choose to operate independently at a salon or by making house calls. Mobile grooming services have also become increasingly popular because of the convenience for pet owners, flexibility of schedules for groomers, and the minimal trauma imposed on pets by keeping them in familiar surroundings. An important responsibility for groomers is cleanliness and sanitization. Groomers should also collect general information on the pets' health and behavior, which often results in them being the first to notice a medical problem like an ear or skin infection that requires veterinary care.

  • Kennel Owners– specialize in offering extended stay and care for pets while their owners are working or are out of town on travel.  Basic kennel responsibilities include tasks like feeding and exercising the animals and maintaining a clean living environment for the animal. Tasks requiring more experience include providing animal healthcare, grooming services, obedience training, or prepare animals for shipping.

  • Trainers- train animals for riding, security, obedience, or assisting people with disabilities. The three most commonly trained animals are dogs, horses, and marine mammals. A common practice among animal trainers is familiarizing the animal to the human voice and human contact and teaching the animal to respond to commands

    Animal training involves a lot of small steps and often takes months, even years of repetition to perfect. In addition to hands-on work with the animals, trainers sometimes oversee other aspects of the animal’s care, like preparing their diet and providing a safe and clean living environment.

  • Pet sitters–look after one or more animals when their owner is away, typically by traveling to the pet owner’s home to carry out the daily routine. Most pet sitters feed, walk, and play with the animal, but some more experienced sitters may be required to bathe, train, or groom them. By not removing the pet from its normal surroundings, trauma is reduced and the animal is able to better maintain its normal diet and exercise schedule.

Training, Certification and Education

As mentioned in the article, “Starting a Pet Shop Business”, on-the-job training is the most common way animal care and service workers gain the experience they need.  Depending on the type of profession, some roles require formal training and education. 

  • Groomers - typically learn their trade by completing an informal apprenticeship, usually lasting 6 to 10 weeks, under the guidance of an experienced groomer. Prospective groomers can attend state-licensed grooming schools located throughout the country, with programs varying in length from 2 to 18 weeks. Contact your State Labor Office to find a state-licensed school in your area.

    The National Dog Groomers Association of America offers certification for master status as a groomer. To earn certification, applicants must demonstrate their practical skills and pass two exams.

  • Kennel owners- are not required to have any specialized training or education, however completing training programs and having experience as a kennel operator or attendant will strengthen the trust your customers have in your ability to provide adequate care for their animals. Training programs and workshops are available through the Humane Society of the United States, the American Humane Association, and the National Animal Control Association. Workshop topics include investigations of cruelty, appropriate methods of euthanasia for shelter animals, proper guidelines for capturing animals, techniques for preventing problems with wildlife, and dealing with the public.

    The Pet Care Services Association also offers a three-stage, home-study program for individuals interested in pet care. Those who complete the third stage and pass oral and written examinations become Certified Kennel Operators (CKO).  Depending on the types of animals and breeds of animals your kennel will house, certain certifications are required. It is important for you to contact your State Labor Office to learn more about the necessary certifications or permits you will need to obtain for your kennel.

  • Trainers- often need a high school diploma or GED equivalent, although some animal training jobs require a bachelor's degree and animal specific skills, which are determined by the type of animal you will be working with. For example, marine mammal trainers usually need a bachelor's degree in biology, marine biology, animal science, psychology, or a related field. Most equine trainers learn their trade by working as a groom at a stable. Some study at an accredited private training school. Many dog trainers attend workshops and courses at community colleges and vocational schools.

  • Pet sitters- are not typically required to have any specific training, but some form of previous experience with animals is usually preferred by customers. The National Association of Professional Pet Sitters offers a two-stage, home-study certification program for individuals wanting to become pet care professionals.

Licenses

Groomers, kennel owners, trainers and pet sitters need one or more federal, state or local licenses or permits before operating. Licenses can range from a basic operating license to very specific permits, (e.g., environmental permits).

Since regulations vary by industry, state and locality, it's very important to understand the licensing rules where your business is located.

The type of licenses and permits you need will also vary depending on the type of care you provide, the type of animals you care for, and whether you work out of your home or a stand-alone facility. For example, if you plan to bathe animals as part of your care, you will likely need to contact your state’s environmental agency to ensure that you are following the correct procedures for discharging soaps, flea baths, or other substances into the sewer.

Related Links:

Starting a Pet Shop Business