|
|
|
|
|
|
|
|
|
|
The Regional Business Service Center Program is the result of a grant from the United States Department of Housing and Urban Development. The program is designed to increase the economic capacity of the rural communities within our region to create new jobs, expand existing businesses and add to the number of small businesses already established. The methodology involved in meeting this goal is to utilize the services of a full-time, professional, and fully trained Business Development Specialist/Trainer (BDST) to train prospective business owners in the steps necessary to starting a small business, increasing the success of existing businesses by demonstrating to them the skills necessary to keep their enterprises financially solvent, and expanding a business to increase their capacity to provide services and goods and to create more jobs.
Such training will consist of four core courses initially:
- Developing a business plan
- Using tax accounting software to track business finances
- Tax regulations and laws
- Employee management
As an incentive for our clients to utilize the center we will use $21,888 to complement a total of $100,000 RLF from ACCION Texas as loan rebates for the first year of the program. Those clients who request the loan rebate must be current on their ACCION loan repayment status following the first 12-month period, and must have attended two of the four core business courses listed above within that same period. The rebates will then continue for one additional year at 50%, if the clients complete the last two of the core courses within that 12-month period. Such a program requires firstly a good credit standing, and an enriched business knowledge will build good business habits.
The center will provide loan packaging and financial counseling two to three days per week as per our agreement with ACCION and Small Business Development Center in Eagle Pass who currently does circuit riding throughout a nine-county region.
Training will initially involve only the four core subjects, but other classes will also be considered such as customer service, international trade, e-commerce with the federal government, web page development, and auditing financial resources. Whenever possible video teleconferencing will be utilized for training to reach a wider audience, and is especially useful because of the distances that exist between our communities. Video teleconferencing centers are located at the Middle Rio Grande Development Centers in each of our five communities, and are also available at the Southwest Texas Junior College campus in Uvalde (should the need arise). If video teleconferencing does not suffice, does not work, or is inconvenient, the BDST or another contracted professional will travel to remote locations and facilitate the class.
The Service Center will provide hands-on research and resource assistance, something FUTURO feels is critical to the complete understanding of such a complex subject as small business management. Our reference materials will include census databases, economic indicators, feasibility studies, how-to manuals, and grants source directories. The Center is equipped with two computer workstations with Internet access through DSL, and the BDST will be available to assist with research and use of the computer and Internet browser software.
The Center will contain a database tracking system for business statistics concerning the clients that we serve that will include their background, experience and education, proposed or actual ventures, amount of investment, number of employees, success and failure information, and their input or advice for the next client who is considering a similar venture. Such peer mentoring and counseling is another aspect of the Center FUTURO considers critical to the success of any small business. The best experience is that shared by someone whose gone through a similar experience and who is willing to share their mistakes and the lessons they learned from them so that someone else might avoid the same pitfalls should they pursue a similar type of venture.
A survey will be conducted through the Workforce Development Centers to as many local businesses as possible to ascertain their input about the services FUTURO intends to offer in the RBSC. As no survey exists in any of our communities, it is impossible to gauge the success of failure of small business, why they succeed or fail, and how many have opened and closed since the community was formed.
|
|
RBSC SERVICES |
|
|
Through an agreement with our partner, ACCION Texas, $100,000 in small business loans has been committed for use in the FUTURO region over the next five years. ACCION's current interest rate is 14.5%, and FUTURO is proposing to offer interest rebates for the first two years on loans to borrowers who live or work within the boundaries of the FUTURO EC and who wish to locate their business or will hire employees who live within those boundaries. Two conditions must be met for any client to receive the interest rebate: they must be current on their loan repayment within the first 12-month period, and they must have attended two of the four core business classes offered in the center (see below). The rebate will continue for one additional year, but at 50%, and the same conditions will apply except that the two remaining courses must be attended within this third 12-month period. FUTURO believes that the combination of an incentive like the rebate program and training in small business practices will build good business habits by promoting good credit history, instilling accountability, and strengthening overall business management capabilities.
|
|
|
ACCION Texas will provide the loan capacity for small businesses. They currently loan up to $25,000 for small business startup, retention and expansion. As ACCION is no longer located in Uvalde, they will be available for loan counseling and applications on a per need basis. In this regard, the Small Business Development Center in Eagle Pass will also provide counseling and loan assistance.
|
|
|
As mentioned above, the program has a training component. Much of the training will be provided through our partnership with the Small Business Development Center in Eagle Pass, though some may be provided either by the in-house Business Development Specialist or by contracted professionals. Five courses have been identified by FUTURO as been the most critical to the success of any small business, four of which will be required for the incentive rebate program as above mentioned. These five classes include:
- Customer Service
- International Trade
- E-Commerce (with the Federal government)
- Web Page Development
- Auditing Financial Resources
Whenever possible video teleconferencing will be utilized to reach the widest possible audience considering the great distances separating the communities within the FUTURO region. If this is not possible for any reason, then the trainer will travel to remote sites to conduct the classes. Classes beyond the five core courses will be contracted out to private consultants.
|
|
|
The RBSC will provide a reference and work room that will include a collection of reference materials such as informational databases on census, economic indicators, feasibility studies, How-To manuals, and grants source directories. This room will have two workstations complete with computers, printer and internet access through a DSL connection. It will be the responsibility of the Business Development Specialist to see that each client is assisted with computer and Internet access, site location studies, feasibility information and research, marketing and production promotion information, referrals, and access to the library of How-To manuals. Apart from the materials available to the clients, the RBSC will create a tracking system for business statistics of the clients we serve who are currently in business or starting a new business to include background, experience, education, type of proposed or actual venture, amount of investment in the venture, number of employees, success and failure information on the venture, and any input or advice they might have for clients considering a similar venture to increase the success rate of those enterprises.
|
|
|
A survey will be conducted through the Middle Rio Grande Development Centers to reach as many businesses as possible in our region to ascertain if the services offered by the RBSC will meet their needs. We will use volunteers from these businesses as peer mentors to prospective business owners in the hope that the passing of such information will increase the likelihood of success of any new business newly opening. As for outreach and marketing, a coordination between the Chief Executive Officer of FUTURO and American Electric Power and the Texas Department of Economic Development will promote the region on a national and international level for possible industry recruitment opportunities.
|
|
|
|
|
|
