Economic Development Roadshow ... Roadshow Spring, 2015. Roadshow Map...

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Transcript of Economic Development Roadshow ... Roadshow Spring, 2015. Roadshow Map...

  • Economic Development Roadshow

    Spring, 2015

  • Roadshow Map

    • Purpose is to raise general awareness

    • Use five areas noted in Resource Guide

    • Use Guide, website (http://www.mn.gov/deed/) and contacts for specific questions

    http://www.mn.gov/deed/

  • Minnesota’s Economic Honors

    • In 2014, DEED spurred: • $850 million investment • 1.8 million square feet • 3,500 new jobs

    • 3.7% unemployment rate (2/15)

    • Well positioned for future growth

  • DEED Spurring Growth

    Selected Recent Program Activity in Southwest Regions Funded by DEED

    Contamination Clean-Up Grants $492,000

    Redevelopment Loan/Grants $83,000

    Small Cities $6.4 million

    Emerging Entrepreneur Fund $480,000

    SBDC $474,000

    Special Appropriations $1.0 million

    Minnesota Investment Fund $1.6 million

    Job Creation Fund $1.5 million

  • Business Development

    Business Financing

    Tax Credits and Benefits

    Community Financing

    Additional Resources

  • Business Development Assistance • Location and Expansion Assistance

    – Help business located and expand – Industry expertise – Business Service Specialists – Shovel-ready certification

    • Minnesota Location One – GIS-based website selection tool to assist businesses seeking land and buildings to

    start up or expand within the state of Minnesota – DEED encourages cities, counties, port authorities and tribes to list available land

    • Minnesota Marketing Partnership – Public-private alliance of economic developers, utilities, private firms, and DEED – Alliance works to strategically market Minnesota and its business economy as a great

    place to do business nationwide – Online director of MN products and supplies

    • Minnesota Business First Stop – Coordinates states agencies that have a role in development process

  • • A point of first and continuing contact for questions about start-up, operations, management, taxation, regulation

    • A publisher of topic specific publications on small business issues. Available in hard copy, on CD, or downloadable from the DEED website

    • In 2014, the office handled 32,000 transactional inquiries for information and distributed 134,272 publications in hard copy and on CD

    Small Business Assistance Office

  • Small Business Development Centers (SBDC)

    • Our Mission is to help entrepreneurs start and grow businesses that succeed

    – Funded through a partnership of the U.S. Small Business Administration, State of MN, host colleges and universities, and local stakeholders

    – Celebrating more than 35 years of a program that WORKS!

    – Minnesota’s SBDC is for ALL small businesses

    • All stages, all types, all industries - all across the state

  • SBDC Helps Entrepreneurs 3 Ways

    • Consulting

    • Training

    – Accounting, social media, law, affordable health care, exporting, and more

    • Access to Capital

    – Finding and accessing capital for purchase, operations and growth

    • Services available at no cost to the client

  • Export Assistance

    Minnesota Trade Office

  • The Minnesota Trade Office (MTO)

    MTO Mission

    • To be an advocate for Minnesota businesses pursuing international markets

    • To promote, assist and enhance exports and foreign direct investment that contribute to the growth of Minnesota’s economy

    MTO Vision

    • To be the first place Minnesota companies call when they need export assistance

  • Shared State Responsibility

  • Why Export?

    Compelling business implications • Less likely to go bankrupt • Mitigate market fluctuations • Extend product life-cycle

    Benefits workforce and state • Higher wages and benefits • Increased tax base

  • In Minnesota …

    About

    68,000 Manufacturing Jobs

    Depend

    On Exports!

  • Minnesota’s Top 10 Export Markets Minnesota exported goods worth $21.4 Billion to 207 countries in 2014

  • MTO Core Services

    • Export counseling & technical assistance

    • Export education & training

    • Export promotion

    • Foreign Direct Investment (FDI) attraction

    • State Trade & Export Promotion (STEP) Grants

    • Protocol assistance

  • State of Minnesota Foreign Offices

    Minnesota

    Brazil

    Europe/Germany

    China South Korea

  • State Trade & Export Promotion Program (STEP)

    • Export assistance for small business

    • $7,500 matching grant

    – Trade missions

    – Trade shows or exhibits

    – Translations

    – Website internationalization

    – Business matchmaking

    – Industry specific certification i.e (CE Marking)

    • Priority: New exporters & new market development

  • STEP Funding Streams

    • State FY 2015

    – $300,000 allocated for SMEs to participate in export projects of their choice

    • 2015 funds exhausted

    • New funds proposed starting July 1, 2015

    • Federal - Sept 30, 2014 - Sept 29, 2015

    – $200,000 allocated for NEW Exporters and New to Market SMEs to participate in targeted trade missions

  • Contact the Minnesota Trade Office

    332 Minnesota Street, Suite E200 Saint Paul, MN 55101 USA

    Trade Assistance Help Line: (651) 259-7498

  • DEED Business Finance Principles

    • Strategic

    • Modest and budget responsible

    • Transparent

    • Accountable

    • Performance-based

  • Angel Loan Fund

    • No-interest federally-funded loans of up to $250,000

    • Loan may be up to 10% of equity raised; payments deferred for 7 years

    • Sales agreement mitigates risk by allowing state to benefit from increased value of business

    • 20 applications approved requesting $3.4 million, expecting to leverage $53.5 million

  • Emerging Entrepreneur Fund

    • Federal funds supports micro-enterprises and small businesses with $6 million in loan funds

    • Focus of program are businesses owned and operated by a woman or a minority, or located in economically distressed areas throughout Minnesota

    • DEED provides funds to nonprofit lenders which provide loans to start-up and expanding businesses

  • Indian Business Loan

    • Supports the development of Indian-owned and operated businesses and promotes opportunities for Indian people throughout Minnesota

    • DEED evaluates all applications and forwards a recommendation to the appropriate tribal council for final consideration

  • Tourism Septic Tank Program

    • Low-interest financing to tourism-related businesses that provide overnight lodging and need to replace a failed septic system

    • Participation loans in cooperation with financial institutions can be made for up to 50 percent of the total cost of the project

  • Minnesota Investment Fund

    • Grants provided to local governments who then make loans to businesses

    • Interest rate/terms vary; may be forgiven in limited cases

    • $14.1 million awarded in FY14-15 leveraging $415 million and creating 1,900 jobs

    • Ice Castles in Pine River recent recipient • Federally-funded MIF funds available in non-

    entitlement areas

  • Brad Simenson – 6W, 6E, 8 651-259-7428 Brad.Simenson@state.mn.us

    Abdullahi (Moe) Mohamed - 9 651-259-7456 Abdullahi.Mohamed@state.mn.us

    Loan Officers

    mailto:Brad.Simenson@state.mn.us mailto:Abdullahi.Mohamed@state.mn.us

  • Job Creation Fund • Performance-based program

    • Generally up to $1 million total available

    $500K in Job Creation Awards

    $500K in Capital Investment Rebates

    • Create at least 10 full-time jobs, have $500,000 in capital expenditures and be in an eligible industry to participate

    • $13.8 million awarded in FY14-15 leveraging $251 million and 1,400 jobs

    • Ikonics, TEAM Industries and Axis recent recipients

    • Emily.A.Johnson@state.mn.us or 651-259-7450

    mailto:Emily.A.Johnson@state.mn.us

  • Office of Broadband Development

    Border to Border Broadband Development Grant Program Update

  • Recent steps in MN broadband policy-making

    2008- 10

    •2008 - First broadband taskforce created

    •2009 - First broadband map created (prior to federal mapping program)

    •2010 - Broadband goals established

    2011- 13

    •2011 – Current broadband taskforce created

    •2013 - Office of Broadband Development was created within DEED

    2014- 15

    •2014 - Border to Border Broadband Infrastructure Grant created

    •2015 – Taskforce appointments being renewed

  • Where we stand today

    Minnesota Broadband Goals (2010)

    By 2015, all households and businesses have access to broadband at speeds of 10 to 20 Mbps down and 5-10 Mbps up

    Figure 1. Connect Minnesota study ( MN DEED