1
Q
What is the purpose of the 504 program?
A
To provide long-term, fixed-rate financing to small businesses for major fixed assets such as land, buildings, and equipment.
2
Q
What percentage of the project cost is covered by the senior lien from a private-sector lender in a 504 project?
A
Up to 50 percent.
3
Q
What percentage of the project cost is covered by the junior lien from the CDC in a 504 project?
A
Up to 40 percent.
4
Q
What is the minimum equity contribution required from the small business in a 504 project?
A
At least 10 percent.
5
Q
How does the CDC raise capital for the SBA loan?
A
By selling SBA-guaranteed bonds in the private market.
6
Q
What is the effect of the SBA guarantee on the bonds sold by the CDC?
A
It increases their attractiveness to investors.
7
Q
What is the 7(a) loan program?
A
The SBA’s general business loan program.
8
Q
How is the 7(a) loan program financed?
A
Through fee income to the SBA from borrowers and lenders.
9
Q
Where do small businesses apply for 7(a) loans?
A
Directly to participating banks.
10
Q
What are the eligibility criteria for small businesses to qualify for 7(a) loans? (List at least three)
A
- Operate for profit
- Be small, as defined by SBA
- Be engaged in, or propose to do business in, the United States or its possessions
11
Q
What is one requirement for a small business before seeking financial assistance according to the 7(a) loan program?
A
Use alternative financial resources, including personal assets.
12
Q
What is a typical advantage of the 7(a) loan program over a straight commercial loan?
A
An extended repayment term.
13
Q
What is the maximum loan amount for 7(a) loans?
A
$5 million.
14
Q
What is the maximum maturity for working capital loans under the 7(a) program?
A
Up to seven years.
15
Q
What is the maximum maturity for loans to finance fixed assets under the 7(a) program?
A
Up to 25 years.
16
Q
What do interest rates for 7(a) loans depend on?
A
Negotiations between the borrower and the lending institution, subject to SBA maximums pegged to the Prime Rate.
17
Q
Visualize primary economic development customers and related pillar activities as a three-legged stool consisting of:
A
- Existing, Resident Firms: Business retention & expansion
- Local Start-up Enterprises: Entrepreneurial development
- Out of Market Prospects: Domestic business recruitment/Foreign direct investment
18
Q
BRE Programs are designed to:
A
1) retain or keep existing businesses in a community, and 2) provide assistance for businesses to expand.
19
Q
Two private-sector concepts that should be applied to business retention and expansion:
A
competitive advantage (you should know more about your customers than your competitors do) and customer equity (the more the customer invests in the relationship, the more difficult it is for them to leave it).
20
Q
The retention and expansion of local businesses can:
A
- Keep or increase local jobs;
- Preserve or increase the local tax base;
- Increase local property values;
- Enhance community image/increase confidence;
- Maintain or diversify the economic base.
21
Q
Technical assistance provided through a BRE program can help a business:
A
- Increase its competitiveness in the wider marketplace (e.g., economic gardening initiatives, business intelligence and analytics programs);
- Expand and add new jobs (e.g., site selection assistance);
- Keep from relocating to other areas (e.g., economic development incentives at the city, county and state levels);
- Survive economic difficulties (e.g., business continuity planning, pre-disaster planning, and post-disaster recovery help);
- Connect to networks (e.g., manufacturing extension partnerships, chambers of commerce, regional cluster initiatives, angel investment networks, resources for exporting, etc.).
22
Q
According to economic development consultant and author Eric Canada, communities should consider the following rule of thumb in business marketing:
A
- 70 percent of all business comes from repeat clients;
- 15 percent comes from referrals;
- 15 percent comes from new business development.
23
Q
There are four main interdependent components within a structured, systematic, and sustainable BRE program:
A
- Customer Outreach/Relationship Building
- Customer Service
- Customer Management/Follow Up
- Customer Knowledge Repository (CRM)
24
Q
BRE touchpoints can include a mixture of tools such as:
A
- In Person Facility Visits
- Focus Groups
- Business Walks
- Stakeholder Events
- Social Media
- Digital Communication
25
Responsibilities of the BRE program manager include:
the development of program goals, objectives, and key performance indicators;
identifying and training outreach personnel;
maintaining and building the team of service providers;
managing overall customer service and satisfaction;
internal and external public relations and marketing;
and analyzing customer intelligence to formulate proactive programs, policies, and strategies.
26
A successful BRE program includes the following characteristics.
- Industry Knowledge
- Prioritization of Target Industries and Firms
- Primary knowledge of Firm Needs and Priorities
- Professional, Customized Service
- Outcome-Oriented
- Favorable Business Climate Focus
- Coordinate Services
27
BRE Program Partners can include:
* Economic development organizations;
* Workforce organizations;
* Local government;
* County government;
* Chamber of Commerce;
* Other local business associations;
* Utility companies;
* Educational institutions;
* Individual business leaders.
28
What is the purpose of federal financing programs?
The federal government provides significant sources for financing economic development activities, primarily covering business assistance and real estate development projects.
29
Name some sources of federal financing.
Sources of financing include the Small Business Administration (SBA), Economic Development Administration (EDA), US Department of Housing and Urban Development (HUD), US Department of Agriculture (USDA), Export-Import Bank of the United States, and various other US government agencies.
30
What is the role of the Small Business Administration (SBA)?
The SBA aids, counsels, assists, and protects the interests of small businesses in the United States, guaranteeing a portion of loans made by third-party lenders.
31
Does the SBA provide direct loans to small businesses?
No, the SBA does not provide direct loans; it guarantees loans made by third-party lenders to qualified small businesses.
32
What is the 504 Small Business Loan program?
The 504 program provides long-term, fixed-rate financing to small businesses for major fixed assets such as land, buildings, and equipment.
33
What is the structure of a typical 504 project?
A typical 504 project includes a loan from a private-sector lender covering up to 50% of the project cost, a loan from the CDC covering up to 40%, and at least 10% equity from the small business.
34
What is the maximum loan amount for 7(a) loans?
The maximum loan amount for 7(a) loans is $5 million.
35
What are the eligibility criteria for 7(a) loans?
Small businesses must operate for profit, be small as defined by SBA, use alternative financial resources, and demonstrate a need for the loan proceeds.
36
What is the Express Loan Program?
The Express Loan Program offers expedited review for loan applications, providing a response within 36 hours and a maximum amount of $350,000.
37
What is the CAPLines program?
CAPLines is the umbrella program for short-term and cyclical working capital needs, with a loan limit of $5 million.
38
What types of loans are included under CAPLines?
CAPLines includes the Contract Loan Program, Seasonal Line of Credit Program, Builders Line Program, and Working Capital Line of Credit Program.
39
What is the Export Working Capital Program (EWCP)?
The EWCP provides financial assistance to export-ready companies, offering up to a 90% guarantee to lenders on export loans.
40
What is the Export Express Loan Program?
Export Express loans provide financing up to $500,000 within 36 hours for businesses that support export activity.
41
What is the International Trade Loan Program?
The International Trade Loan program provides long-term financing to help small businesses compete and expand export markets, with a maximum loan of $5 million.
42
What are Community Advantage Loans?
Community Advantage Loans are available for small businesses in underserved markets and provide access to 7(a) loan guarantees as high as 85% for loans up to $350,000.
43
What is the MicroLoan Program?
MicroLoans can be used for purchasing machinery, equipment, and working capital, with a maximum loan of $50,000.
44
What types of disaster loans does the SBA provide?
The SBA provides Home and Personal Property Loans, Business Physical Disaster Loans, Economic Injury Disaster Loans, and Military Reservists Economic Injury Loans.
45
What are Economic Injury Disaster Loans (EIDL)?
EIDLs are for business owners who suffered substantial economic injury in declared disaster areas. They provide working capital to help small businesses survive until normal operations can resume. The loan has a cap of $2 million.
46
Who is eligible for Economic Injury Disaster Loans?
Eligible business types include small businesses, small agricultural cooperatives, and most private non-profit organizations.
47
What do Military Reservists Economic Injury Loans help with?
They help small businesses meet ordinary and necessary operating expenses when an essential employee is called to active duty as a military reservist. The maximum loan amount is $2 million.
48
What are Small Business Investment Companies (SBIC)?
SBICs are private venture capital firms licensed by the SBA that make equity investments and long-term loans to small businesses.
49
What is the Surety Bond Guarantee (SBG) Program?
The SBG Program assists small and emerging contractors to obtain bonding that would otherwise be unavailable to them, allowing them to compete for contracts up to $6.5 million.
50
What are New Markets Venture Capital (NMVC) companies?
NMVC companies are privately managed, for-profit investment companies that provide equity-type capital and operational assistance to smaller businesses in specific areas.
51
What is the purpose of the Small Business Innovation Research (SBIR) program?
The SBIR program funds high-risk R&D efforts with commercial potential to stimulate technological innovation and increase private sector commercialization of federal R&D.
52
What are the eligibility criteria for SBIR?
Eligible businesses must be at least 51% American-owned, located in the U.S., for-profit with no more than 500 employees, and have the principal researcher employed by the small business.
53
What is the Economic Development Administration (EDA)?
The EDA was established to generate new jobs, protect existing jobs, and stimulate growth in economically distressed areas of the U.S.
54
What does the Economic Adjustment Program do?
It assists state and local entities in designing strategies to adjust to economic changes that threaten serious structural damage to the economy.
55
What is the purpose of Public Works Programs?
Public Works helps distressed communities expand and upgrade their infrastructure to attract new businesses and generate jobs.
56
What is the Trade Adjustment Assistance for Firms program?
Established in 1974, it provides assistance to import-impacted U.S. firms to strengthen their global competitiveness through business recovery strategies.
57
What does the Community Development Block Grant (CDBG) program provide?
CDBG provides funds to states and localities for local economic development efforts, focusing on benefiting low and moderate-income persons.
58
What are the eligibility criteria for CDBG funding?
Projects must benefit low and moderate-income persons, aid in eliminating slums and blight, or meet urgent community health needs.
59
What is the Section 108 Loan Guarantee Program?
It allows a portion of CDBG funds to be transformed into federally guaranteed loans for substantial revitalization projects.
60
What is the purpose of the Empowerment Zones Renewal & Enterprise Communities program?
It designates economically distressed areas for federal tax breaks, grants, loans, and technical assistance to promote economic opportunity.
61
What is the Business and Industry Guaranteed Loan Program?
This USDA program guarantees loans to stimulate rural economies by providing financial backing for rural businesses.
62
What is the Intermediary Relending Program (IRP)?
The IRP finances business facilities and community development projects in rural areas through a revolving loan program.
63
What is the purpose of the Intermediary Relending Program (IRP)?
The IRP finances business facilities and community development projects in rural areas.
The Intermediary Relending Program (IRP) is a USDA Rural Development loan program designed to boost economic development and job creation in rural areas by providing low-interest loans to intermediaries, who then re-lend the funds to small businesses, nonprofits, and community projects.
64
What type of loan program is the Intermediary Relending Program?
It is a revolving, 1% interest loan program.
65
Who can borrow funds through the Intermediary Relending Program?
Nonprofit organizations or public entities with at least 51 percent rural membership.
66
What are Rural Business Development Grants (RBDG) intended for?
They facilitate the development of small businesses in rural areas.
67
What defines a small and emerging business eligible for RBDG?
Employing fewer than 50 employees and earning less than $1 million in gross revenue.
68
What types of assistance can RBDG funds provide?
Technical assistance, purchasing machinery, creating revolving loan funds, or constructing business incubators.
69
What do Rural Economic Development Loans (REDLG) provide?
Zero-interest loans to electric and telephone utilities for sustainable rural economic development.
70
Who is eligible for zero-interest loans under REDLG?
Any RUS electric or telephone utility not delinquent on federal debt.
71
What must RUS utilities do with the loan proceeds from REDLG?
Re-lend the proceeds at zero-percent interest to eligible third-party recipients.
72
What types of projects can be financed with REDLG?
Business expansions, community infrastructure, medical facilities, educational facilities, and business incubators.
73
What is the Rural Microentrepreneur Program?
It provides grants to Microenterprise Development Organizations (MDOs) for loans and training.
74
Who is eligible for loans under the Rural Microentrepreneur Program?
Businesses with fewer than 10 employees in rural areas.
75
What do Value-Added Producer Grants (VAPG) support?
Planning activities and working capital for marketing value-added agricultural products.
76
Who can apply for Value-Added Producer Grants?
Independent producers, cooperatives, agricultural producer groups, and majority-controlled producer-based ventures.
77
What are Rural Economic Area Partnership (REAP) Zones?
Designated areas to address economic constraints and promote growth.
78
What assistance is available through REAP Zones?
Improving economic viability, developing cooperative strategies, and providing financial and technical assistance.
79
What does the Rural Energy for America Guaranteed Loan Program provide?
REAP provides financial incentives—grant funding and loan guarantees—to help rural farmers and small businesses invest in clean energy systems and make energy-saving upgrades, making sustainable technology accessible even in small towns and farms.
80
Who can borrow under the Rural Energy for America Guaranteed Loan Program?
Rural small businesses or agricultural producers.
81
What does the Export Credit Guarantee Program (GSM-102) support?
Commercial exports of U.S. agricultural products by providing credit guarantees to encourage financing for buyers in other countries.
82
Who is eligible for the Export Credit Guarantee Program?
Producers of high-value processed goods, intermediate products, and bulk products.
83
What is the Facility Guarantee Program?
It provides credit guarantees to finance agricultural sales in areas lacking infrastructure. Imagine a company in West Africa wants to build a grain storage facility but can’t get local financing. A U.S. exporter offers to build it and ship U.S. equipment. Thanks to the USDA’s Facility Guarantee, the exporter’s bank feels safe lending money — knowing the U.S. government will step in if the borrower can’t pay.
84
What does the Export Sales Reporting Program require?
The Export Sales Reporting Program requires U.S. agricultural exporters to report sales of certain commodities to foreign buyers — especially large sales or sales to specific countries.
85
What is the Market Access Program (MAP)?
MAP is a USDA Foreign Agricultural Service (FAS) program that helps U.S. producers, exporters, and trade associations promote U.S. agricultural products abroad. It does this by sharing the costs of marketing and promotion to develop or expand export markets.
86
What is the goal of the Made in Rural America initiative?
To help rural businesses grow through exports.
87
What is the State Small Business Credit Initiative (SSBCI)?
A federal program aimed at strengthening state programs that support private financing to small businesses.
88
What are Community Development Financial Institutions (CDFIs)?
Entities that provide affordable credit and investment capital to economically distressed areas.
89
What is the New Markets Tax Credits (NMTC) program?
It provides tax credits to investors for equity investments in Community Development Entities (CDEs).
The New Markets Tax Credit (NMTC) Program is a federal incentive designed to:
Encourage private investment in low-income or distressed communities by offering tax credits to investors who fund qualified economic development projects through certified intermediaries called Community Development Entities (CDEs).
90
What is the mission of the Export-Import Bank of the United States?
To help generate domestic job growth by financing the export of U.S. goods and services.
The Export-Import Bank of the United States (EXIM) is the official export credit agency of the U.S. government.
Its mission is to:
Support U.S. jobs by helping American businesses export their goods and services to international markets — especially when private lenders are unable or unwilling to provide financing.
91
What types of financing does the Ex-Im Bank provide?
Working capital guarantees, export credit insurance, loan guarantees, and direct loans.
92
What does the Ex-Im Bank's working capital financing help exporters do?
Obtain loan capital to facilitate the export of goods and services.
93
What does the Ex-Im Bank's export credit insurance cover?
Risks of buyer nonpayment for commercial and certain political risks.
94
What is the purpose of the Financial Institution Buyer Credit Insurance Policy?
To support loans extended to foreign entities for importing U.S. manufactured goods.
95
What is the Ex-Im Bank's Country Limitation Schedule?
It explains which countries are not eligible for insurance from the Ex-Im Bank.
96
What items are generally not covered under the Ex-Im Bank insurance program?
Military or defense items.
97
What is the Financial Institution Buyer Credit Insurance Policy?
It extends a loan to a foreign entity by a financial institution for importing U.S. manufactured goods.
98
What is the difference between medium-term and long-term financing under the Ex-Im Bank?
Medium-term financing is for one to five years, while long-term financing is for up to 10 years.
99
What percentage of the contract price do guarantees and medium-term insurance cover?
85 percent of the contract price (100 percent of the financed portion).
100
What cash payment is required from foreign buyers under the Ex-Im Bank program?
A 15 percent cash payment.
101
What is the maximum amount for Ex-Im Bank financing for small businesses?
$10 million or less.
102
What initiative has been a top priority of the Ex-Im Bank since 2011?
Global Access for Small Business.
103
What does the Ex-Im Bank's Working Capital Guarantee Program support?
It backs a U.S. bank's loan to a business for making products to be exported.
104
What percentage of the loan will the Ex-Im Bank pay if the exporter defaults?
Up to 90 percent.
105
What costs are included under the Ex-Im Bank's Working Capital Guarantee loans?
Inventory, materials, labor, foreign accounts receivable insurance, insurance and freight costs, bank fees, and standby letters of credit.
106
What is the minimum project amount for loans under the Ex-Im Bank's Working Capital Guarantee?
$500,000.
107
What is a CRADA?
A cooperative research and development agreement between a federal agency and partners from various sectors.
108
What does the Federal Laboratory Consortium do?
It improves technology transfers between federal facilities and potential users.
109
What is the purpose of the Small Business Technology Transfer Program (STTR)?
To provide federal research funding to nonprofit organizations through partnerships with small businesses.
110
What is the focus of the Hollings Manufacturing Extension Partnership (MEP)?
The Hollings Manufacturing Extension Partnership (MEP) is a federal program focused on:
Helping small and medium-sized U.S. manufacturers improve their competitiveness, productivity, and growth through hands-on support and expert guidance.
MEP is part of the National Institute of Standards and Technology (NIST). It operates through a national network of MEP Centers — one in every state.
111
What does the ExporTech program help manufacturers with?
It helps create or expand their presence in global markets.
112
What is DARPA's role within the Department of Defense?
It manages and directs basic and applied research and development projects.
113
What does the DoD Manufacturing Technology (ManTech) Program focus on?
The needs of weapon system programs for affordable, low-risk development and production.
114
What is the goal of the Industrial Technologies Program (ITP) under the DOE?
To strengthen environmental quality, energy security, and economic vitality.
115
What does the Public Workforce System do?
It helps companies find qualified workers to meet their functional and expansion needs.
116
What is the purpose of the Intelligent Transportation System (ITS) program?
To promote intelligent vehicle infrastructure and the creation of an intelligent transportation system.
117
What is the aim of the University Transportation Center Program (UTC)?
To strengthen the U.S. transportation system through research projects at universities.
118
What do Research Partnership Centers (RPCs) leverage?
NASA funds with investments from industry, government agencies, and universities.
119
What is the focus of the Technology Transfer Program at NASA?
To meet the technological needs of American industry and boost U.S. international competitiveness.
120
What do Industry/University Cooperative Research Centers (I/UCRCs) develop?
Long-term partnerships among industry, academia, and government.
121
What do Materials Research Science and Engineering Centers (MRSECs) support?
Interdisciplinary materials research and promote materials science education.
122
What is the goal of the Science and Technology Centers (STC) program?
To enable innovative research and education projects of national importance.
123
Key factors to consider in a review of SWOT strengths and weaknesses include:
- Labor Force
- Access to Markets
- Transportation
- Educational Infrastructure
- Site Availability
- Business Climate
- Utility Costs & Availability
- Quality of Life
- Resources
124
Key factors to consider in a review of SWOT opportunities and threats include:
- outlook
- technology
- legal & regulatory changes
- large employers
- economic trends
- competitors
- other factors
125
Components to include in a BRE Annual Work Plan
- Industry Targets
- Marketing & Communications
- Training & Program Alignment
- Business Recognition
- Ongoing Work
126
What percentage of jobs and investments come from existing businesses in most communities?
80% (so this should influence your BRE budget)
127
What are examples of outcome-based measurements from a BRE initiative?
* Creation of affordable housing
* Creation of childcare centers
* Educational attainment of workers
* Export dollars/expansion of exporters
* Increased tax base
* Investment in plant & equipment
* Investment in talent/workforce
* Investment in technology
* Market diversification
* Job creation
* Quality of jobs
* Skills enhancement of workers
* Technical transfer
* Wages
128
What are examples of process-based measurements from a BRE initiative?
* Number of interactions with businesses (face-to-face outreach, focus groups, business walks, community and stakeholder events, and social media exposures) over a specific timeframe
* Action items (partner referrals) generated
* Type of action items (partner referrals) generated
* Resolution of action items (partner referrals)—open, closed, unable to close
* Number of active program partners
* Programs, policies, and/or strategies developed as a result of the BRE program
129
How can AI Assist with a BRE Program?
* Perform a general SWOT analysis for your community.
* Define the framework for your BRE program.
* Identify industry targets & related business contacts in your community.
* Identify a roster of stakeholder organizations that will provide relevant services to your BRE initiative.
* Create a unique logo/brand for your BRE program.
* Devise a BRE marketing and communications plan.
* Develop collateral BRE marketing materials.
130
Customer outreach tools & techniques for BRE
- in-person facility visits
- Focus Groups
- Business Walks
- Community & stakeholder events
- social media
- digital outreach tools (polls and surveys)
131
What are BRE Focus Groups?
These group discussions allow participants to share their views on specific issues such as labor availability or provide general opinions on doing business within a market area or district.
132
What are BRE Business Walks?
Business walks are coordinated “blitzes” of businesses in a defined geographic area such as an industrial park or downtown district by small teams of economic development and allied stakeholders.
133
What does a location quotient of higher than 1 mean?
An LQ greater than 1 indicates that the region has a higher concentration of that industry compared to the national average, suggesting a potential competitive advantage or cluster.
134
What does a location quotient of less than 1 mean?
An LQ less than 1 implies a lower concentration, indicating that the industry is less prominent in the region.
135
Location Quotient
The Location Quotient (LQ) measures the concentration of a particular industry in a region relative to a larger geographic area, typically the nation. It helps identify the region's competitive advantages and industry specializations.
136
Shift-Share Analysis
Shift-Share Analysis stratifies regional employment growth into three components: national growth, industry mix, and regional competitiveness. This analysis helps identify the sources of regional employment growth or decline relative to the national trends.
137
Criteria to assist in developing BRE target companies
- Location Quotient
- Shift-share analysis
- Sector or cluster
- Size
- Geography
- Ownership
- Traded Sector
- Multiplier (Ripple) Effect
- Proprietary Goods or Services
- Community Support
- DEI
- Assimilation of Technology
138
What are gazelle businesses?
Gazelles are fast-growing, job-generating entrepreneurial firms, typically in new economy sectors.
139
Steps to Organize and Implement a BRE Customer Service Team
- Identify potential resource partners and their respective roles in the BRE initiative.
- Develop program protocols
- Build the BRE team
- Monitor and Evaluate Customer Service
140
What are some public financing options for industrial parks?
Financing a new industrial park will almost certainly require public funds since many financial institutions are reluctant to finance speculative real estate activities. Public financing may come from a variety of different sources, including industrial revenue bonds, enterprise zone incentives, tax increment financing, property tax abatements, and environmental clean-up assistance.
141
Advantages of Industrial Parks include:
* Providing manufacturers with new, state-of-the-art space (e.g., optimal plant layout), which will enhance their competitiveness.
* May reduce insurance costs and aid in employee attraction and retention for firms currently located in blighted areas.
* May also help business attraction efforts by providing Class A industrial space.
142
Disadvantages of industrial parks include:
* They may require heavy public subsidies, thereby provoking criticism that the jurisdiction is abandoning its investment in existing manufacturing districts.
* Several well-financed, growing manufacturers need to exist in order for the park to be feasible.
143
Reshoring
The return of previously offshored jobs to their home soil is commonly known as reshoring.
144
Workforce Investment Act (WIA)
In 1998, Congress passed the Workforce Investment Act (WIA) to create a more streamlined and effective workforce system. WIA was created to pick up where JTPA left off. WIA combined and consolidated sixty federal workforce programs into three block grants. These grants include Adult Employment and Training, Disadvantaged Youth Employment and Training, and Dislocated Worker Employment and Training
145
Job Training Partnership Act (JTPA)
The JTPA’s goal was to localize the workforce system by eliminating the previous legislation, which mainly consisted of the public service employment program.
146
The Workforce Innovation and Opportunity Act of 2014 (WIOA)
WIOA reforms WIA legislation by reducing the size of workforce investment boards, requiring unified state plans, specifying funding levels, and establishing data-driven accountability and performance measures. Administered by the Department of Labor.
147
Community colleges serve as invaluable partners in economic development and workforce initiatives due to their three essential missions:
1) Academic Transfer Programs
2) Career and Technical Education (CTE)
3) Continuing Education
148
Career and Technical Education (CTE)
CTE programs provide vocational training and skills certificates tailored precisely to workforce needs identified by local/regional employers. Students earn industry-recognized credentials in fields like manufacturing, IT, healthcare, and skilled trades - fulfilling critical talent demands and supporting business expansion.
149
Anchor Institutions
Anchor institutions include hospitals, universities, foundations, cultural institutions, utilities, and other public-private entities that are committed to their location. These institutions differ from traditional private corporations in that they are highly immobile and hence are motivated to invest in the local community.
150
Workforce Challenge Themes for Companies
- Human Resources Capacity
- Aging Workforce
- Recruitment Challenges
- Workforce Supply
- Applicant Pipeline
- Employee Referrals
- Retention & Turnover
- Compensation & Benefits
- Employer Reputation
151
Give 5 Civic Matchmaking Program
Volunteer recruitment program for near-retirees and retirees that matches participants’ skills and interests with meaningful volunteer opportunities.
152
Pre-BRE Visit - Information to know beforehand
- check the online presence for functionality (socials and websites)
- check online reviews
- understand the employer value proposition
- vet job posting locations
- job ads versus job postings
- employee reviews (glassdoor)
153
BRE Workforce Key Strategies:
- Determine your community's workforce assets
- Arrange meetings with potential workforce partners
- Determine their capacity to provide workforce assistance on demand
- provide potential partners with business targets to conduct pre-visit research
- schedule regular partner meetings to ensure communication
- develop a playbook of partner/non-partner workforce resources
154
Business Recovery Center
A business recovery center (BRC) is a one-stop shop set up to provide local, state, and federal resources to businesses after a catastrophic event. The BRC can also carry out a number of communications and outreach strategies.
155
Financing Mechanisms after a disaster
- Short-erm/Gap financing
- Establishing a bridge loan program
- establishing a business grant program
- long-term financing
- establishing a revolving loan fund
156
Financing options for entrepreneurs
- Venture Capital
- State Venture Capital Programs
- Pension Fund Set-Aside
- Angel Networks
- Capital Networks
- Grant Funding (community foundations)
157
Venture Capital
an equity investment in small, growth-oriented businesses, typically at the seed, start-up, or early expansion stages
158
Capital Networks
provide brokering services that match entrepreneurs to investors for a fee
159
BRE Incentives
- Tax-Incentives (exemptions, abatements, and credits)
- Customized industrial workforce training;
- Technical assistance;
- Consulting services;
- Productivity assessments and evaluations;
- Technology commercialization and deployment;
- Land acquisition assistance;
- Infrastructure improvements;
- CDBG Section 108 loan guarantees;
- Financial incentives, including: Venture capital; Direct loan and grant programs; Revolving loan funds; Utility discounts; Small-issue IDB financing; Loan guarantees for building construction, machinery, and equipment; Aid for existing plant expansion.
160
Performance-Based criteria for BRE Incentives
- Number of jobs created
- quality of jobs
- minimum investment requirements
161
What is the rationale behind retention incentives?
It is much easier to keep jobs in the community than to create new ones.
162
What are General Obligation Bonds backed by?
Backed by the full faith and credit of the issuing government entity.
163
What is a risk associated with General Obligation Bonds?
The issuing government must pay off the bonds with general revenues if the project fails.
164
What types of projects are typically financed by General Obligation Bonds?
* Schools
* Bridges
* Public facilities
165
What do tax exemptions on land and capital improvements encourage?
Companies to construct or improve land and capital equipment.
166
What types of taxes are often exempted on new building materials, machinery, and equipment?
* Property
* Sales
* Usage
* Franchise
* State income taxes on new building materials, machinery, and equipment
167
What does a manufacturer's inventory tax exemption aim to address?
To provide tax relief for unexpected surplus in inventories due to increased production.
168
True or False: Goods in transit are typically exempt from taxes.
True
169
What is the purpose of sales/use tax exemptions?
To support certain industries, for example research and development.
170
What do raw material tax exemptions aim to lower?
The cost of manufacturing.
171
What is one goal of tax exemptions for research and development?
To lure or keep R&D-intensive companies.
172
What do corporate and personal income tax exemptions provide?
Reduced costs for companies and potentially reduced revenue for governing bodies.
173
What are excise fee exemptions?
Exemptions from fees imposed for licensing and federal estates.
174
What is Tax Increment Financing (TIF)?
A self-financing technique used to support infrastructure projects. Communities in states that have TIF-enabling statutes can employ this method of development financing.
175
What is a TIF district?
A specific geographic area designated for tax treatment under TIF.
176
What criteria must an area meet to be designated as an enterprise zone?
* Economic distress
* Poverty
* Low incomes
* High unemployment
177
What type of incentives do enterprise zones typically provide?
* Reductions in tax rates
* License rates
* Fees
* Tax credits for investments
178
What are tax abatements?
Reductions or eliminations of certain taxes granted for a specific time period.
179
What is a job creation tax credit?
A tax incentive aimed at encouraging job creation.
180
What is accelerated depreciation?
A method allowing taxpayers to calculate depreciation at a faster rate. Results in lower taxes on the equipment.
181
What is the purpose of Foreign Trade Zones (FTZ)?
To facilitate trade and increase global competitiveness of U.S.-based companies.
182
What types of merchandise can be processed in an FTZ?
* Assembled
* Repackaged
* Cleaned
* Tested
* Destroyed
* Stored
* Sampled
* Mixed
* Salvaged
* Relabeled
* Manipulated
* Processed
* Manufactured
183
What are benefits of operating in a Foreign Trade Zone?
- Deferring paying duties on imports.
- Lowering inventory costs
- Deferring, reducing or eliminating U.S. Customs duties
- Distributing savings
- Electing preferential duty rates
184
Claw Backs
Claw backs are sanctions applied against a company that has received incentives but failed to achieve the performance goals in the incentive agreement. A claw back may stipulate cancellation of the agreement, the application of specific penalties, downward adjustments in the size of the incentive package or individual subsidies within it, or recovery of all or part of the subsidies.
185
What is a horizontal network?
A horizontal network is cross-sectoral (i.e., member companies may not operate in the same industrial sector), and made up of firms with common customers, technology, or distribution channels.
186
What is a vertical network?
A vertical network typically comprises businesses in one industrial sector that are interrelated for a specific purpose, such as one dominant manufacturer and its suppliers, distributors, and consultants. Vertical networks are increasingly relevant as large corporations continue to downsize and outsource work that formerly was performed in-house.
187
Technology Transfer
the exchange or sharing of knowledge, skills, processes, or technologies across different organizations
188
The transfer of technology serves two basic purposes:
* To bring new or underused technologies to companies so that they can become more efficient, productive, or competitive, or to enable them to take on new product lines and enter new markets. This process is known as technology deployment.
* To place new products and processes in the marketplace through existing companies, new companies, or strategic partnerships of companies created for the purpose of commercializing the technology. This process is known as technology commercialization.
189
technology deployment
To bring new or underused technologies to companies so that they can become more efficient, productive, or competitive, or to enable them to take on new product lines and enter new markets.
190
technology commercialization
To place new products and processes in the marketplace through existing companies, new companies, or strategic partnerships of companies created for the purpose of commercializing the technology.
191
192
What is the Manufacturing Extension Partnership (MEP)?
The MEP is a program by NIST (National Institute of Standards and Technology) that provides technology deployment services through partnerships with nonprofit organizations, state or regional entities, or educational institutions.
193
What is the primary mission of MEPs?
The primary mission of MEPs is to conduct evaluations and assessments that help companies identify and solve their problems.
194
What types of services do MEPs typically provide?
MEP services typically include business planning, integrating computers into manufacturing processes, improving plant layout and automation, upgrading quality controls, improving production planning and inventory controls, and providing specialized training.
195
How can MEPs be involved in Business Retention and Expansion (BRE) programs?
An MEP can be a key partner in a BRE program by identifying firms that would benefit from MEP services during initial surveys.
196
What should economic development organizations consider regarding MEPs?
Organizations should take an active interest in the financial health of their MEP, as federal support has decreased significantly.
197
What is a Cooperative Research and Development Agreement (CRADA)?
A CRADA is a cooperative research and development agreement between a federal agency and partners from private industry, academia, or government to optimize resources and share technical expertise.
198
What is the purpose of the Experimental Program to Stimulate Competitive Research (EPSCoR)?
EPSCoR assists states with limited federal research funding to improve their research capabilities through grant support.
199
What is the mission of the Federal Laboratory Consortium (FLC)?
The FLC's mission is to improve the transfer of government-developed technologies from federal facilities to potential users.
200
What does the Small Business Innovation Research Program (SBIR) do?
The SBIR program provides funding to stimulate technological innovation in small businesses to meet federal agency research needs.
201
What is the Small Business Technology Transfer Program (STTR)?
STTR provides federal research funding to small businesses and requires collaboration with a non-profit research institution.
202
3 things commonly exported goods are classified as:
- Commodities, such as crude oil, lumber, wheat, and copper;
- Manufactures, such as pipes, jet engines, clothing, and toys; or
- Services, such as tourism, consulting, and education.
203
A company that wishes to export must meet the following criteria:
* Organizational readiness to export, such as financial security and domestic marketing experience;
* Indications that a product is demanded abroad, such as competitors selling abroad or unsolicited inquiries from foreign buyers; and
* The ability to compete in the chosen market.
204
A company’s product is attractive to the international market if it demonstrates:
* Strong domestic sales growth within the United States;
* Low price relative to U.S. competitors; and
* Better features, design, or quality than U.S. competitors.
205
Resources for export planning and market research
- Trade.gov
- US Commercial Service
- Trade Information Center
- ExporTech
- District Export Councils
- World Trade Centers
206
Indirect exporting
Indirect exporting describes techniques in which a company sells through intermediaries, such as distributors and agents.
207
Direct exporting
In a direct exporting strategy, a company handles most, if not all, steps in the export process in-house.
208
Export-Import Bank of the United States
The Export-Import Bank (Ex-Im) is the official export credit agency of the U.S. government. Its mission is to assist in financing the export of U.S. goods and services to international markets.
209
How EDOs can create an environment that supports exporting.
- branding regional exports
- infrastructure development
- tax and duty incentives
210
Export Incentives
- Foreign Trade Zones
- Freeports
- Income Tax Reductions
211
Foreign Direct Investment
When a foreign company controls enough of a stake in an American company that it exerts significant influence over corporate management, strategy, or organization.
212
What is one benefit of foreign acquisition of a U.S. firm?
Foreign owners tend to invest more in productivity increases, research, and export development than U.S. owners.
## Footnote
Foreign firms are associated with higher wages and may spur local firms to invest more to compete.
213
What type of investment do new owners often make in acquired firms?
Investment in the renovation and modernization of facilities, equipment, and business processes.
## Footnote
This investment is critical to saving a local facility.
214
What was announced by Arow-Global Corp after acquiring Techni-Glass?
$8 million expansion and the creation of 20 jobs.
## Footnote
Techni-Glass is a custom glass manufacturer located in Hawkins County, Tennessee.
215
How do foreign investors typically enhance production?
They often import technology, such as equipment and production processes.
## Footnote
This technology transfer can happen through purchasing, observation, and professional networking.
216
What is a key factor for gaining technology benefits from foreign M&As?
Quickly networking the newly acquired firm into the local business community and supply chains.
217
How do foreign M&As contribute to a community's internationalization?
They create global exposure and ties, both personal and professional.
218
What kind of professionals do large foreign firms often hire?
Consultants, brokers, and other professional services from outside the community.
219
What effect does the presence of foreign firms have on local businesses?
Existing firms benefit from new services being offered.
220
What is one way foreign executives and managers impact the community?
They add to the community’s diversity and help build local residents’ personal and professional ties abroad.
221
How can international ties benefit local business projects?
They can help in opening export markets.
222
What marketing advantage does a new foreign firm bring to a community?
It signals to international investors that the community is an attractive place to invest.
223
What often follows an initial investment by a foreign company in a community?
Additional foreign investment.
## Footnote
Economic developers often showcase international companies already doing business in their jurisdictions to attract more investment.
224
What is SelectUSA?
The US's FDI (foreign direct investment) attraction agency
225
International Joint Venture
the joining of two or more partner companies from different countries to share resources, risks, rewards, and management in a temporary enterprise.
226
international joint venture (IJVs) are mainly formed for one of three reasons
* Distributing a foreign company’s products;
* Assembling or manufacturing a product in the United States; and
* Researching and developing a new product.
CEcD Exam Study Prep
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