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On Thursday, June 4, 2009, Innovation Philadelphia held the Economic Stimulus Plan: What You Should Know but Don’t panel. There was a great turnout and the guest panelists provided useful insights and strategies to help prepare business owners to compete for American Recovery and Reinvestment Act funds as they start to trickle down to the local level. The panelists included Cheryl Bullock, Senior Advisor and Southeast Regional Director for U.S. Senator Robert P. Casey, Jr., David Dickson, District Director for the Philadelphia chapter of the U.S. Small Business Administration, Kevin Dow, the Deputy Director for Neighborhood and Business Services in the City of Philadelphia’s Department of Commerce, and Bill Walsh, District Director from the Office of Congressman Joseph Sestak. The panel was moderated by President & CEO of Innovation Philadelphia, Kelly R. Lee.
Starting things off, Cheryl Bullock provided a summary of where the $787 billion American Recovery and Reinvestment Act funds will be allocated. The ARRA or Economic Stimulus plan covers a wide range of federal programs including reducing taxes, funding sustainable and clean energy projects and research, funding education programs, increasing work pay and providing tax cuts for working people, improving and building roads, bridges, and mass transit. In Pennsylvania, stimulus funds will aid in job creation, fund infrastructure improvements, extend unemployment insurance, and aid those in poverty, especially focusing on providing education resources. The main medium through which to access these funds is by contracting and sub-contracting through federal agencies. It appears that the most accessible and potentially most lucrative ventures are those pertaining to infrastructure and other shovel-ready projects, especially those with any sustainability or clean energy component. Senator Casey’s office has compiled a guide of federal, state, and local contacts. This guide also delineates the categories for stimulus funds and the different agencies that will be managing the funds. Access the guide by going to (http://casey.senate.gov/imo/media/doc/Sen.%20Casey%20-%20Recovery%20and%20Reinvestment%20guide.pdf)
David Dickson, representing the U.S. Small Business Administration, spoke specifically about loan programs, SBA guarantees, and other SBA initiatives. Dickson stated that there is about $700-800 million in stimulus money for the 27 million small businesses in the United States. Dickson spoke briefly about two programs, the 7A loan and the 504 Program. With the 7A loan, the SBA has increased its guarantee to 90% which effectively reduces the risk to a bank, making it easier to get loans as the lender and the SBA now share the risk. For more information on the 7A loan program, go to (http://www.sba.gov/services/financialassistance/sbaloantopics/7a/).
The 504 program pertains to businesses interested in fixed asset projects such as: purchasing land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or purchasing long-term machinery and equipment. For more information on the 504 Program go to (http://www.sba.gov/services/financialassistance/sbaloantopics/cdc504/index.html).
Dickson also talked about the Small Business Administration’s new definition of small businesses, now defined as those under 100 employees, increasing the number of small businesses in the U.S. by 70,000. Apart from the resources, loans, and other programs the SBA provides, the most significant advice from Dickson was how to prepare your business for accessing stimulus funds. First, determine where your business fits in. Are you a supplier, sub-contractor, primary contractor or sub-sub contractor? His advice was to look at who is getting the jobs, run your business better, and have an elevator pitch prepared. Finally, if you are running your business the same way you were running it 5 years ago, you most likely will not be in business 5 years from now.
Kevin Dow spoke about his role in maintaining, sustaining and growing small businesses in the City of Philadelphia. He focuses on neighborhoods, problem-solving solutions, and navigating the bureaucracy of the City of Philadelphia. As Deputy Director for Neighborhood and Business Services in the Department of Commerce, Dow’s team provides financial and technical assistance as well as business education. Financial capacity building includes providing grants and loans. Dow also focuses on increasing small business participation for minorities, women, and people with disabilities. There are 16 business liaisons assigned for different locations in the city, providing advice and answering questions. The business liaison hotline is 215-683-2100.
Additional American Recovery and Reinvestment information can be found on http://www.phila.gov/recovery/. There are 29 programs that Philadelphia’s small business owners are eligible to apply for, including RFPs for workforce development and weatherization. There is also a need for Recovery Officers to help manage the process from federal to local implementation. Dow echoed David Dickson’s advice about preparing yourself and your business to access the funds. Know what RFPs are coming; know where your niche is, and where you fit in. Make sure your business has the basics down. Make sure the financials are in order, legal situations are remedied and all taxes are paid. Finally, have your business plans ready. In the summer and fall, many programs will be coming down the pipeline and if your business is in order, you will be in a great position to take advantage of these opportunities.
Bill Walsh shed some light on Congressman Joe Sestak’s take on the Economic Stimulus bill, saying the Congressman supports the bill, but thought it should have been larger. On the Congressman’s website (http://sestak.house.gov/), there is a comprehensive resource directory that is updated weekly, based on feedback from users. Walsh stated that 23% of federal contracts are supposed to go to small business owners, but only one-quarter of the 23% actually are. Walsh spoke about Congressman Sestak’s commitment to transparency and accountability when it comes to the allocation of funds from the American Recovery and Reinvestment Act.
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