SBA Licenses Its First Public-Private Impact Investment Initiative Fund in Michigan

Today, the U.S. Small Business Administration announced that InvestMichigan! Mezzanine Fund will be the first licensed Impact Investment Fund in the SBA’s new Impact Investment Initiative. The fund will focus exclusively on providing capital to businesses that are headquartered in Michigan, have a significant presence in Michigan, or are in the process of expanding their operations in Michigan so they can grow and create jobs.

SBA will partner with Michigan Growth Capital Partners, L.P., an investment partnership whose anchor investor is the State of Michigan Retirement Systems, and The Dow Chemical Company to provide up to $130 million of investment capital over the next five years to high-growth businesses throughout Michigan.

Credit Suisse’s Customized Fund Investment Group structured the InvestMichigan! Mezzanine Fund and will manage the fund in partnership with Beringea, a Michigan-based investment manager. Of the total funding, Dow will provide $15 million; Michigan Growth Capital Partners will provide $35 million; and SBA will provide $80 million, which must be repaid.

“InvestMichigan! is an important new ally in SBA’s commitment to foster small-business growth and job creation in underserved communities,” said SBA Administrator Karen Mills. “They’re an experienced team that is well-positioned to drive more investment in small businesses in hard-hit Michigan.

“We will continue to grow this and other public-private partnerships by licensing more funds -- giving taxpayers a strong bang for their buck, and putting more capital in the hands of small-business owners to scale up and create good jobs.”

The Impact Investment Initiative is part of Startup America, a White House initiative to bring together public and private organizations to accelerate the growth of America’s entrepreneurs. It will use the infrastructure of the SBA’s Small Business Investment Company Program [SBIC], an established and successful program that operates at no cost to taxpayers.

The SBIC program began in 1958 with the mission to improve and stimulate the national economy and small businesses by supplementing the flow of private-equity capital and long-term loan funds for the sound financing, growth and expansion of small businesses. In FY 2010, the SBIC program provided $1.59 billion of financing to nearly 900 U.S. small businesses.

The Impact Investment Initiative will drive up to $1.5 billion into the hands of small businesses over the next five years. It will combine public and private funding for high-growth companies that will generate not only a financial, but also a “social” return, by focusing on businesses located in underserved communities or communities facing barriers to capital.

Through the Impact Investment Initiative, SBA will commit $1 billion to investment funds focused on investing in underserved markets, or in sectors that have been defined as national priorities.

Impact investments can be:
* Place-based -- Targeting small businesses located in, or employing residents of, low- or moderate-income areas or economically distressed areas; or
* Sector-based -- Targeting industry sectors that the Obama Administration has identified as national priorities. Currently only clean-energy and education have been identified as priority sectors.

To serve these markets, SBA will collaborate with private, institutional investors to identify impact investments and provide expedited licensing and capital to fund managers who qualify to organize and operate an Impact Investment SBIC.

High-growth firms are a small part of the small-business community, but they create a large number of net new jobs each year. The Impact Investment Initiative will help high-growth companies receive the funding they need to continue to expand and create jobs in America’s underserved communities and priority sectors.

For more information on SBA's Impact Investment Initiative, visit http://1.usa.gov/ImpactSBA.

GoodBiz113's Take

InvestMichigan! marks a significant development in the potential power of public-private synergies to boost out nation's economy -- state by state, community by community.

Kudos to SBA and its partners for making it happen. We'll be watching...

SOURCES: U.S. Small Business Administration, The White House
____________________

Get FREE Next-Business-Day Delivery with Your $50 Order at OfficeDepot.com! ^AF

Small Businesses Win a Record $97.95 Billion in Federal Prime Contracts

After reviewing the Small Business Administration’s fifth annual Small Business Procurement Scorecard, United States Senate Committee on Small Business and Entrepreneurship Chair Mary L. Landrieu [D-La., pictured] and Ranking Member Olympia J. Snowe [R-Maine] today commented on the federal government’s effort to increase federal contracting opportunities among small businesses.

According to the most recent scorecard, in fiscal year 2010, small businesses won nearly $100 billion in federal prime contracts -- an increase of more than $1 billion from 2009. Small businesses were awarded 22.66 percent of all federal spending in FY2010 -- less than half a percentage point shy of the statutory 23 percent goal.

"Over the course of one year, we saw nearly $100 billion go into the hands of America’s small businesses, and I am pleased to see the ever-increasing role of small businesses in the federal government contracting process," said Sen. Landrieu. "With the passage of the Small Business Jobs Act of 2010 last fall, we put in place ways to significantly improve these numbers, and I hope this report will be the last steppingstone to reaching our small-business contracting goals.

"The report confirmed an overall increase in small-business contracting for the second consecutive year, but the federal government still fell short of meeting their goal in many categories -- including prime contracting awards for women-owned small businesses, service-disabled veteran-owned small business, and Historically Underutilized Business Zones [HUBZones]. We continue to see room for improvement, and I am confident they are on the right track to reaching and surpassing these goals."

"Small businesses are the primary job creators in this country, responsible for more than two-thirds of all new jobs created," noted Sen. Snowe. "At a time when a staggering and seemingly intractable unemployment rate of over nine percent has become the norm -- with 22 million Americans unemployed or underemployed, and when we are experiencing the longest period of long-term unemployment in American history since data collection started in 1948 -- I remain dismayed that, yet again, the federal government has failed to meet its statutory government-wide goal -- not just for small business, but for women, HUBZones, and service-disabled veteran-owned small businesses.

"Reports show that small businesses lost an estimated $2 trillion in profits and asset valuation since the recession started in December 2007, while larger companies have been less affected and are recovering more quickly. Given these statistics, it is all the more paramount that small businesses have the opportunity to contract with federal agencies, and anything other than meeting these goals is simply unacceptable.

"For small firms that are struggling to stay afloat and maintain their workforce, federal contracting can be an instrumental part of a larger strategy for broadening their customer base and creating jobs and, although the numbers have improved, this Administration can, and must, do better."

About SBA's Small Business Procurement Scorecard

The FY2010 Scorecard calculated the amount of federal spending for prime contracting and subcontracting to small businesses for fiscal year 2010 [Oct. 1, 2009-Sept. 30, 2010], and evaluated agencies to ensure these firms remain an integral part of the federal contracting process.

SBA graded 24 agencies on each of the individual prime contracting goals established by Congress, and used an "A+" through "F" letter-grade system.

The federal government scored an overall average of 99.2 percent -- with 99.73 percent prime contracting achievement, and 94.50 percent subcontracting achievement.

Ten agencies’ grades increased from FY 2009, 10 agencies’ grades stayed the same, and four agencies’ grades decreased. The agency breakdown is as follows:
* 13 agencies received an "A"
* Five agencies received a "B"
* Four agencies received a "C"
* Two agencies received a "D"

Overall, SBA Administrator Karen Mills was optimistic about the Scorecard results. "When the federal government gets contracts into the hands of small businesses, it is a 'win-win' situation," she noted. "Small businesses have the opportunity to grow and create jobs, and the federal government gets access to some of the most innovative and nimble entrepreneurs.

"We are proud of the achievement the government has made [in small-business procurement], but are determined that the government will meet and exceed the goal. SBA is focused on a number of key initiatives to help increase small-business contracting opportunities, as well as combat fraud, waste or abuse. These efforts will ensure the benefits of our programs continue to go to the intended recipients."

The SBA's full Small Business Procurement Scorecard can be viewed here: http://1.usa.gov/ScorecardsSBA.

SOURCES: U.S. Senate Committee on Small Business and Entrepreneurship, U.S. Small Business Administration
____________________

Quickbooks Online -- Choose the Plan That’s Best for Your Business Today! Try Now FREE for 30 Days! ^AF

Ex-Im Bank's Global Access for Small-Business Initiative Hits Benchmark; Phoenix Manufacturer Marks 1,000th Company

The Export-Import Bank of the United States [Ex-Im Bank] reached a new milestone this month, when the 1,000th small-business customer joined the list of first-time users of the Bank's export finance products as part of its Global Access for Small Business [Global Access] program. Serverlift, located in Phoenix, Ariz., helped bring Ex-Im Bank one step closer to achieving its goal of adding 5,000 new small-business customers by 2015 -- a central feature of Global Access, which launched in January.

Serverlift is a high-tech company that specializes in the manufacturing of lifts for transporting and sustaining data center servers. They received a $250,000 Express Insurance policy from Ex-Im Bank in June, 2011, with approved foreign buyers in Ireland and Turkey.

This financing product was developed specifically for qualified small businesses. It features a streamlined application, plus both a policy quotation and two foreign-buyer credit indications up to $300,000 within five business days.

Serverlift originally manufactured in China and recently moved operations back to the U.S., resulting in doubling the number of its U.S. employees.

"The Bank's support gives us the credibility that we need to pursue foreign buyers," said Ray Zuckerman, CEO of Serverlift. "Extending credit makes us more attractive to our customers and allows us to sell to larger companies."

The Global Access initiative is a key component of Ex-Im Bank's work supporting President Obama's National Export Initiative [NEI] and its goal of doubling U.S. exports by 2015. In addition to bringing 5,000 more small businesses into the Ex-Im Bank portfolio, the initiative aims to approve at least $30 billion in small-business transactions during the five-year period of the NEI. To reach these benchmarks, Ex-Im Bank is offering new financing and insurance products -- such as Express Insurance being used by Serverlift -- that complement existing Bank programs.

"Growing small-business exports is a top priority at the Bank," said Ex-Im Bank Chairman and President Fred P. Hochberg [pictured]. "The U.S. economy will not grow without exports, and we will not reach our export potential without the participation of small business. Through Global Access, we can make sure that more small businesses are selling more products, to more customers in more countries -- and, in the process, growing their business and adding new workers to their payrolls."

The Global Access initiative also includes extensive outreach. Since the beginning of 2011, when Global Access began, there have been 16 public forums across the country that have attracted over 2,000 small-business owners who have learned about the export resources available from a range of government agencies and private organizations. In addition, Ex-Im Bank has sponsored monthly webinars for hundreds of exporters that feature various financing products.

"Ninety-five percent of the world's customers live outside of the U.S., and the best way to reach them is through exports," said Thomas J. Donohue, president and CEO of the U.S. Chamber of Commerce. "Working with the Ex-Im Bank, America's small businesses have a golden opportunity to increase their sales, expand into the global marketplace, and create jobs at home at a time when we really need it.

"Global Access forums provide a platform for small businesses to receive guidance on how to enter new markets and increase sales by exporting."

The other leading private-sector partner for Global Access is the National Association of Manufacturers [NAM], the nation's largest manufacturing association. NAM has increasingly played a role in the nation's economic progress as President Obama recently noted that the development of the manufacturing sector is essential in creating more U.S. jobs. Significantly, the association's support of Ex-Im Bank's effort to reach small businesses has paralleled this progress.

"Expanding U.S. manufactured goods exports is vital to creating new manufacturing jobs and growing the economy," stated Jay Timmons, president and CEO of NAM. "Improved access for trade financing is essential for manufacturers to grow exports. Through our partnership with the Global Access initiative, we have been able to help small and medium-sized manufacturers expand into new markets, getting us closer to the goal of doubling exports by 2014."

Ex-Im Bank -- an independent, self-sustaining federal agency -- helps create and maintain American jobs by filling gaps in export financing and strengthening U.S. export competitiveness. The Bank has generated $3.4 billion for U.S. taxpayers over the past 5 years.

In the first eight months of fiscal year 2011, Ex-Im Bank approved $20.3 billion in total financing authorizations -- a 25% increase since fiscal year 2010 -- supporting $26 billion in U.S. export sales plus more than 175,000 American jobs in communities across the country. During the same period in fiscal year 2010, Ex-Im Bank approved $16.3 billion, supporting $19.9 billion in U.S. export sales and 137,000 American jobs.

For more information, visit Ex-Im Bank's Web site at http://www.exim.gov/.

Global Access forums have been held in the following locations: Manchester, N.H.; Philadelphia, Pa.; Minneapolis, Minn.; Lafayette, La.; Kansas City, Mo.; Los Angeles, Cal.; Denver, Colo.; Long Island, N.Y.; West Long Branch, N.J.; Miami, Fla.; Wilmington, Del.; San Leandro, Cal.; Wichita, Kan.; Charlotte, N.C.; Providence, R.I.; and Clinton, Md.

Global Access partners include: U.S. Chamber of Commerce, the Department of Commerce [U.S. Commercial Service], the Office of the U.S. Trade Representative [USTR], U.S. Small Business Administration [SBA], National Association of Manufacturers [NAM], FedEx, Wall Street Journal, PNC Bank, Bank of America Merrill Lynch, Wells Fargo Bank, and HSBC Bank USA, N.A.

SOURCE: Ex-Im Bank
____________________

Quickbooks Online -- Choose the Plan That’s Best for Your Business Today! Try Now FREE for 30 Days! ^AF