Entrepreneurship Initiative Approved Projects: Tennessee
PROJECT: Areawide Development Corporation Business Loan Outreach
GRANTEE: Areawide Development Corporation
Purpose: To conduct a multi-pronged public awareness campaign promoting the availability of Areawide Development Corporation's business loan programs to small businesses in East Tennessee.
Funding:
| ARC: |
$18,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$18,000 |
| Total: |
$36,000 |
Description: The grantee willconduct a multi-pronged public awareness campaign promoting the availability of Areawide Development Corporation's (ADC) business loan programs to small businesses in East Tennessee. Specifically, the Areawide Public Outreach campaign will: create a new Areawide company logo and marketing materials; produce newspaper articles about Areawide business loan programs; develop targeted mailings and a newsletter to current and potential business owners, government representatives and related non-profits in Eastern Tennessee. ADC will also market loan programs to economic development professionals. Projected outcomes include the creation of 5 new businesses, and the creation of 35 new jobs. Additionally, the grantee will serve 60 businesses.
PROJECT: East Tennessee Community Design Center CommunityLink RuralNet
GRANTEE: East Tennesseee Community Design Center, Inc (ETCDC)
Purpose: To provide Internet-ready computer equipment to poor communities, an online forum to foster economic development, linkages among community groups throughout the region, and a loan guarantee program for entrepreneurs.
Funding:
| ARC: |
$35,853 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$36,000 |
| Total: |
$71,853 |
Description: This project will provide Internet-ready computer equipment to rural communities, an online forum to foster economic development, linkages among community groups throughout the region, and a loan guarantee program for entrepreneurs; resulting in the mentoring of 150 rural entrepreneurs and the creation of 50 new jobs. ETCDC will lease computer equipment and provide equipment training to rural community groups. Communication between groups will be encouraged through the use of an email list-serve. The Community Design Center will also assemble a group of qualified volunteer business mentors from sites across the region. These mentors will participate in an on-line message board with new entrepreneurs to answer questions regarding business planning and development. In addition, the Community Design Center will facilitate entrepreneurial access to capital by reaching an agreement with an existing lending entity to administer ETCDC loan funds. The Community Design Center will steer entrepreneurs using the RuralNet sites to its lending partner.
PROJECT: Economic Ventures Community Microloan Program
GRANTEE: Economic Ventures, Inc
Purpose: To create a new Community Microloan Program in each of six rural counties and to expand the existing program in Knox County to two additional sites.
Funding:
| ARC: |
$50,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$150,000 |
| Total: |
$200,000 |
Description: This project sought to expand the existing Community Microloan Program to sites in Anderson, Cocke, Greene, Johnson, Knox, Sevier, and Washington Counties. Verbal commitments to establish a peer lending program were obtained from 6 sites. 15 informational meetings were held throughout Knox County. Completed outcomes included: 21 businesses assisted, 8 loans to small businesses, 7 new businesses created, 6 full-time jobs created, and 5 part-time jobs created.
PROJECT: Entrepreneurial Training Program for former Levi Strauss Employees
GRANTEE: Knoxville Community Development Corporation, Economic Ventures
Purpose: To assist displaced Levi Strauss employees make a successful transition to new work opportunities following the closing of the Levi Strauss Plant in Knoxville, Tennessee.
Funding:
| ARC: |
$79,576 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$90,400 |
| Total: |
$169,576 |
Description: The Levi Strauss Entrepreneurial Training program was designed to provided technical training and financial assistance to workers who were displaced as a result of the Levi Strauss plant closing in Knoxville, TN. The ARC grant was divided between Economic Ventures Inc., and Pellissippi State College. Economic Ventures was responsible for assisting those displaced workers who already possessed some entrepreneurial background, and Pellissippi State College assisted those who needed more basic training. 2,300 workers were laid-off from the plant closure. Of those 2,300 workers, 945 expressed an interest in receiving entrepreneurial assistance. Out of the 945 who expressed an interest, the ARC grant provided 880 former Levi workers with entrepreneurial training. Of those 880 trainees, 102 started their own full-time businesses. 778 former workers decided to seek full-time employment and use their training to startup a part-time micro-business for supplemental income. Ninety percent of the full-time business start-ups were by female-headed households and the largest single category were day-care centers (22).
PROJECT: Manufacturing Means Jobs Electronic Collaboration Tool (MMJ)
GRANTEE: Tennessee Department of Economic and Community Development
Purpose: To improve communication between MMJ technical assistance providers statewide and their manufacturing clients in ARC counties and to preserve this expertise for future use throughout the network.
Funding:
| ARC: |
$20,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$20,195 |
| Total: |
$40,195 |
Description: The Manufacturing Means Jobs (MMJ) Electronic Collaboration Tool was intended to help Tennessee's partners to deliver technical assistance to existing businesses in the state. The implementation process was conducted by six field staff from the grantee's Existing Industries Division beginning in January of 2002. The staff was then responsible for training MMJ partners in all of Appalachian Tennessee. The department assisted 23 companies. This assistance led to the creation 46 new jobs and the retention of 12 existing jobs along with an estimated economic impact of $435,000.
PROJECT: Southeast Local Development Corporation New Markets Tax Credit
GRANTEE: Southeast Local Development Corporation
Purpose: To reimburse Southeast Local Development Corporation (SLDC) for legal fees related to both the formation of the Appalachian Fund for Growth and the Fund's preparation of a New Markets Tax Credit application.
Funding:
| ARC: |
$30,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$0 |
| Total: |
$30,000 |
Description: This grant will provide support to Southeast Local Development Corporation (SLDC) for egal fees related to the formation of the Appalachian Fund for Growth and preparation of a New Markets Tax Credit application.
PROJECT: Southern Appalachian Fund Technical Assistance
GRANTEE: Southern Appalachian Fund
Purpose: To support the third year of the Start $mart business assistance program.
Funding:
| ARC: |
$100,000 |
| Other Federal: |
$600,000 |
| State: |
$0 |
| Local: |
$500,000 |
| Total: |
$1,200,000 |
Description: The grantee will operate a $12.5M development venture capital fund, the Southern Appalachian Fund, which will provide investment capital to growing businesses in the target region. The grantee will directly provide technical assistance to prospective portfolio firms. This fund is partially capitalized by the Small Business Administration's New Markets Venture Capital Company program. ARC funds will provide staff support to help develop deal flow, evaluate prospective investments, provide technical support to get firms deal ready, and monitor and support firms post-investment. The grantee expects to invest in 10 firms resulting in the creation of 300 jobs.
PROJECT: Southern Appalachian New Markets Venture Capital Fund
GRANTEE: Technology 2020
Purpose: To provide capital for expansion of start up and other entrepreneurial firms in the target region.
Funding:
| ARC: |
$50,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$50,000 |
| Total: |
$100,000 |
Description: Technology 2020 Finance Corporation and Kentucky Highlands Investment Corporation formed a New Markets Venture Capital Company, and applied to receive support from the US Small Business Administration's (SBA) New Markets Venture Capital Company program. ARC grant support was used to defray costs associated with preparing the SBA application, and developing and capitalizing the fund. This development VC fund focuses investment operations on a five-state region of Appalachia. Technology 2020 manages a certified Small Business Investment Company, capitalized at $45M. And Kentucky Highlands manages a $30M+ equity investment portfolio. During the grant period, the grantee successfully completed a New Markets Venture Capital Company application for the Southern Appalachian Fund, and raised over $2.4M from private sources to capitalize the Fund. The Fund also received conditional approval from the SBA.
PROJECT: StartSmart Entrepreneurship Initiative
GRANTEE: Southeast Local Development Corporation
Purpose: To provide entrepreneurs with training in successful business practices and provide financial support for qualified new businesses.
Funding:
| ARC: |
$50,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$50,000 |
| Total: |
$100,000 |
Description: The StartSmart program identifies and locates potential entrepreneurs within nine contiguous counties in Appalachian Tennessee, provides these entrepreneurs with training in successful business practices, and provides support for new businesses for the development of business plans, financing, and follow-up training. The grantee held 10 training sessions covering a variety of topics in the Tennessee towns of Dunlap, Athens, and Tracy City. Sessions were presented by the staff of the Southeast Local Development Corporation and the Southwest Women's Business Center, and where applicable, experts on the topic at hand. There were 65 participants total at the ten conferences.
Seven participants received additional counseling and one participant submitted a business plan. Completed project outcomes include the creation of 12 new businesses and 193 new jobs and the retention of 175 existing jobs. Also, Start Smart assistance generated total new capital investment of $5,852,992 by small businesses throughout the region.
PROJECT: StartSmart Entrepreneurship Initiative, Phase II
GRANTEE: Southeast Local Development Corporation
Purpose: To continue to provide entrepreneurs with training in successful business practices and provide financial support for qualified new businesses.
Funding:
| ARC: |
$50,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$50,000 |
| Total: |
$100,000 |
Description: The Start $mart program will continue to identify and locate potential entrepreneurs within nine (9) contiguous counties in Appalachian Tennessee, provide these entrepreneurs with training in successful business practices and provide support for new businesses from the development of the business plans, through financing and follow-up training. The Start $mart program will provide training services, to include: Group Entrepreneurial Training and Education; Financial Assistance Training; Management Training; Marketing Training; Government Procurement; Loan Packaging and Loan Goals Training; Internet Group Training; Individual and Group Counseling and Mentoring. Projected outcomes include the involvement of 10 participants and the creation of 10 new jobs and 6 new businesses.
PROJECT: StartSmart Entrepreneurship Initiative, Phase III
GRANTEE: Southeast Local Development Corporation
Purpose: To support the third year of the Start $mart business assistance program.
Funding:
| ARC: |
$75,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$75,000 |
| Total: |
$150,000 |
Description: The grantee requests $75,000 in ARC funds to support the third year of the Start $mart business assistance program. During Year III the Start $mart program will identify and locate potential entrepreneurs within nine (9) contiguous counties in Appalachian Tennessee, provide those entrepreneurs with training in successful business practices and provide support for new businesses from the development of the business plans, through financing and follow-up training. During the first year of the program 12 new businesses were created, 175 jobs retained and 193 new jobs were created. During the second year of funding 41 businesses were served, 316 persons received counseling or training, 118 jobs were retained and 434 new jobs were created. Projected outcomes include the creation of 75 new jobs. Additionally, the grantee will serve 15 businesses.
PROJECT: Tennessee Entrepreneurship Training and Education
GRANTEE: Tennessee Department of Economic and Community Development
Purpose: To expand a pilot program that provides entrepreneurial education at the high school level in Knox County, with the goal of duplicating the program in the entire Tennessee ARC service area.
Funding:
| ARC: |
$31,241 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$9,924 |
| Total: |
$41,165 |
Description: The grantee has an entrepreneurship training pilot program incorporated into the curriculum of the high schools of Appalachian Tennessee. Six teachers in Knox, Sevier, and Blount counties are teaching the entrepreneurship curriculum. As part of this project, an entrepreneurship summer camp is available for students who participate in the high school curriculum. The entrepreneurship camp is modeled after the Tennessee Governor's Schools of Excellence program.
Completed outcomes of the project for the grant period include the participation of 82 students in the entrepreneurship courses, which involved 17 business mentors and the eventual creation of 4 new businesses. Additionally, 27 students attended the summer School of Excellent in Entrepreneurship.
PROJECT: Tennessee's Regional Entrepreneurship Initiative
GRANTEE: Technology 2020
Purpose: To increase the number of locally owned businesses in Tennessee's ARC service area.
Funding:
| ARC: |
$310,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$102,781 |
| Total: |
$412,781 |
Description: The grantee has programs to improve access to capital and financial networks and provide business and managerial assistance to entrepreneurs in Appalachian Tennessee. A technology transfer pilot project, in collaboration with Oak Ridge National Laboratory (ORNL), identifies ORNL technologies with significant commercial potential. A selected group of entrepreneurs with proven track records receive special assistance to create new businesses. Technology 2020 contracts with three sub-regional organizations to supplement their geographic coverage of Appalachian Tennessee.
Completed outcomes of project for the grant period include the provision of support and technical assistance to over 76 businesses and the creation of more than 250 jobs. Additionally the grantee has become the operator of the US-SBA ACE-Net angle investor network program in the target area, and has worked with 6 entrepreneurs and one investor to enter the ACE-Net system. The grantee also established an east Tennessee "Band of Angles", and has invited 50 qualified investors to join this private angle investor group. In addition, business and managerial assistance was provided through an on-line Virtual Business Resource Center, www. Tech2020.org/vbrc, which received 4,500 hits in the past year. Finally, 19 entrepreneurs were provided direct technical assistance resulting in 14 new jobs and $1.28 million in private investment, and an entrepreneurship training program focusing on disadvantaged populations has helped start 7 new minority owned enterprises.
PROJECT: Tennessee's Regional Entrepreneurship Initiative, Phase II
GRANTEE: Technology 2020
Purpose: To support the development of entrepreneurial enterprises in the region.
Funding:
| ARC: |
$325,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$77,500 |
| Total: |
$402,500 |
Description: Technology 2020 continues to provide entrepreneurs with practical tools to enable them to start and expand successful businesses. Technology 2020 has gained significant experience in helping entrepreneurs develop new businesses and has established a resource base which can help other organizations throughout the ARC service area provide similar assistance. The grantee is also focusing on creating new vehicles to provide debt and equity capital and on providing technical assistance to businesses. A micro loan fund exists to provide small loans to fledgling entrepreneurs.
Completed outcomes of the project for the grant period include: the hiring of a Director of New Business Development, the formation of a new Technology 2020 Finance Corp, and the creation and capitalization of a $345,000 microenterprise loan fund. Additionally, the grantee applied for an additional $1M in debt financing through the USDA IRP program and for $2.5M to capitalize a new equity fund through the US Department of Treasury CDFI program. The grantee also applied for an SBIC license through the SBA to capitalize a $10M equity fund. Finally, technical support was provided to 10 client firms resulting in the infusion of $6.1M of new capital to these firms, the grantee's Internet business development tools were refined resulting in an average of 250 user visits per week. These activities resulted in the creation of 125 new jobs by client companies.
PROJECT: Tennessee's Regional Entrepreneurship Initiative, Phase III
GRANTEE: Technology 2020
Purpose: To support the development of entrepreneurial enterprises in the region.
Funding:
| ARC: |
$340,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$340,000 |
| Total: |
$680,000 |
Description: During the project period the grantee reported significant outcomes: (1) a $1M USDA loan program was initiated, with $500,000 committed from USDA and $500,000 from four private banks, (2) CDFI certification was received from US Department of Treasury, (3) the grantee's microloan program made 10 loans totaling $293,000, and received approval for an additional $1M in capitalization, (4) approval for an SBIC license was received from SBA, which will leverage $13M in private capital commitments to create a $40M VC fund, (5) a group of angel investors was formed with 15 principals, who have contributed a total of $200,000 to a limited partnership pool, (6) 10 client companies have received support in raising over $7.5M through investment banking services provided by the grantee, (7) the new Digital Crossing incubator has 8 new office tenants and 7 co-location customers, and (8) partnerships with UT-Battelle at ORNL have resulted in support for 11 new start up companies. As a result of these activities, 150 new jobs have been created, and 24 companies have formed during the project period. 87 entrepreneurial companies have participated in these efforts.
PROJECT: Tennessee's Regional Entrepreneurship Initiative, Phase IV
GRANTEE: Technology 2020
Purpose: To support the development of entrepreneurial enterprises in the region.
Funding:
| ARC: |
$290,185 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$290,185 |
| Total: |
$580,370 |
Description: This project sought to expand the capacity of the Technology 2020 Finance Corporation (TFC), targeting efforts to distressed communities in Tennessee, and providing support for telecommunications efforts in Appalachian Tennessee. Grant funds supported operation of a range of TFC debt and equity funds, ensuring adequate deal flow, and provision of training to three TFC staff. During the project period the grantee reported significant outcomes: (1) The grantee significantly expanded staff capacity through addition of full time staff, interns, loaned executives and training programs, (2) The SBA micro loan program was expanded to $1M in capital, and made 12 loans to 11 firms totaling over $361,000, (3) CROET program made three loans totaling $85,000, (4) The City of Chattanooga invested $1.5M with the grantee to establish a loan fund for the city and county, resulting in the opening of a field office, and (5) extensive work in the area of telecommunications development focused on programs with the Northeast Technology Council (Tri-Cities area), the Tennessee Valley Energy Coalition (middle Tennessee area), and Southeast Tennessee (Chattanooga to Oak Ridge) area. As a result of these activities, 21 new loans for over $1.2M were made, resulting in the creation of 75 new jobs, 33% of these in distressed communities.
PROJECT: Tennessee's Regional Entrepreneurship Initiative, Phase V
GRANTEE: Southeast Community Capital
Purpose: To support the development of entrepreneurial enterprises in the region.
Funding:
| ARC: |
$135,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$135,000 |
| Total: |
$270,000 |
Description: Technology 2020's Southeast Community Capital (SCC) program will focus year five efforts on expanding the capacity of SCC to work in rural and distressed portions of Appalachia. Over the last five years, SCC has raised over $3M in capital and created several financing vehicles including a $1M microloan fund and two Intermediary Relending Programs. In addition, SCC manages several other funds including the $42M SBIC TennesSeed Fund, has received certification from the US Department of Treasury as a CDFI, and has received provisional approval from the US Small Business Administration for the formation and capitalization of a $12M new markets venture capital company - the Southern Appalachian Fund.
During the project period the grantee reported significant outcomes. The grantee provided $6.8 million in debt financing to 55 companies, which reported the retention of 313 jobs and the creation of 55 jobs. The grantee has developed a business plan / draft contract for the creation of a Rural Opportunity Fund (loan fund) for a 9-county portion of the ARC service region in Tennessee. Full funding has been secured for the $12 million Southern Appalachian Fund, a venture capital fund. Technical assistance was provided to 250 businesses in the service region. Three Financial Management seminars were held, with over 55 persons attending.
PROJECT: Upper Cumberland SUCCESS Project
GRANTEE: Upper Cumberland Development District (UCDD)
Purpose: To provide information, training, and technical assistance to new entrepreneurs and businesses that are expanding or reorganizing in the Upper Cumberland counties.
Funding:
| ARC: |
$50,000 |
| Other Federal: |
$0 |
| State: |
$0 |
| Local: |
$50,000 |
| Total: |
$100,000 |
Description: The main thrust of this initiative was to prepare prospective entrepreneurs to be better equipped to apply for bank loans. The project provided a series of instructional seminars and workshops for aspiring entrepreneurs in the region. Issues such as business and financial planning, accounting, legal issues, marketing, human resources, and business technology were discussed at various locations throughout Upper Cumberland. The grantee also provided consultation and referrals to the entrepreneurs. The grantee intends to maintain an ongoing resource center with pertinent materials and counseling indefinitely. Upper Cumberland Development District conducted 4 workshops in each of 4 different counties. The 16 separate seminars served 254 people. Completed outcomes included the creation of 6 new businesses and 19 new jobs. The grantee overestimated potential business and job creation.
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