2014 Pilot NBDC Specialty Advisor Capital Access Center

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1 2014 Pilot NBDC Specialty Advisor Capital Access Center Bidders Conference July 18, :00pm 4:30pm

2 Agenda Small Business Center Vision NBDC Specialty Advisor, 2014 Capital Access Center Pilot Program Description Deliverables Application Questions Q&A

3 Neighborhood Small Business Strategy Business counseling through local chambers 11,000 consultations in 2014 Contacting 90% of newly licensed businesses in 68 neighborhoods Foster neighborhood engagement locally 450 Business Events (Networking, Roundtables, Educational) Neighborhood economic vitality 130+ Special Events 80+ Buy Local Campaigns 19 Sustainability Projects Site Selector (1,000+ listings) Making neighborhoods safer for business 75+ Safety Seminars

4 NBDC Program Description What is the NBDC Specialty Advisor Program? The Neighborhood Business Development Centers (NBDCs) Specialty Advisor program provides expert guidance to the City s NBDCs and the small business Draft Staff policy deliberation Not for circulation community in the. The NBDC Specialty Advisory, Capital Access Center (CAC) is to fund to CACs as a pilot for These CACs will work directly with businesses and entrepreneurs through out the City to guide and support them through the process of accessing capital.

5 Why CACs are needed Small businesses need loans to thrive but too often, their loans are denied. Business owners approach the wrong lender or investor. Business owners lack a strong record and financial statements to demonstrate their ability to repay the loan. The loan amount is too small, and so does not justify the work involved for the lender or investor. The business owner has insufficient collateral, net worth or personal credit rating to support the loan or investor request. Businesses don t align their finances to a longer-term business plan for their sustainability. Owners don t quantify the value of their business for lender/investor.

6 What Capital Access Centers will do Prepare business owners for successful borrowing Educate small businesses on cash flow management Provide mentorship by referring owners to programs such as Goldman Sachs 10,000 Small Businesses Refer to Credit Repair Specialist(s) Help to assemble loan application documents Connect businesses to the right capital resource Build a diverse network of lending institutions and other resources Make referrals that are most appropriate for business owners Fill strong pipelines to lenders to make small loans more attractive Support businesses through on going relationships Establish strong, ongoing relationships with local businesses and make referrals as they grow, change, and have new needs Provide continuity and context throughout the business lifecycle Avoid Predatory Lenders targeting businesses

7 NBDC Deliverables & Targets CAC Deliverables Provide and/ or connect business to appropriate technical assistance that will get the business prepared for successful borrowing, and support those businesses by developing and maintaining an on going relationship Offer complementary services and/or connect each business to referral partners with additional wrap around services such as Entrepreneurship, Technology, or Business Planning Classes Document action taken, sale size of business, employee(s) retained/created, loan amount secured, and/or why denied for loan Targets Work with a Minimum 50 unduplicated businesses interested in accessing capital Prepare small businesses and get them to the right lender Target a minimum of 20 businesses to successfully secure loans/financing

8 Evaluation POINTS CRITERIA 30 Organizational Capacity 30 Proposed Program Quality and Impact 20 Resources: Financial, Personnel, and Technological 20 Overall Responsiveness: Clear, Concise, Complete

9 Key Dates Release Date Tuesday, July 15, 2014 Bidders Conference Friday, July 18, Questions Due Monday, July 21, 2014 Question Responses Posted Wednesday, July 23, 2014 Proposal Due Tuesday, July 29, 2014 Estimated Contract Start Date Monday, August 11, 2014

10 Tips for Submission Follow the RFP instructions Deadline to submit is 4:00pm CT Monday, July 29, 2014 Be the 3 C s: Concise, Complete, Clear RFP, Q&A, and Bidder s Conference Deck posted on BACP website in Alerts section Submit response and questions to NBDC@cityofchicago.org

11 Key Dates Draft Staff policy deliberation Not for circulation Q & A