MACDC's Economic Development Program
Small & Micro Business Development
CDCs across the state are engaged in supporting small, locally-owned businesses through technical assistance, training and lending programs. Approximately one-third of our members operate small business programs across the state, and we serve approximately 1,000 locally-owned businesses each year. Our members typically offer the following services:
- Lending programs
Several members operate small business loan funds that can provide flexible financing to businesses that are not yet bankable as well as subordinate financing in conjunction with banks. - Technical Assistance
A large number of CDCs provide intensive, one-on-one technical assistance to entrepreneurs to help them develop business plans, improve their financial management, access loans from banks and other lenders, and otherwise strengthen their business. In virtually all cases, CDCs collaborate with other organizations in the delivery of these services. - Small Business Training
Many of our members provide group training to entrepreneurs and/or collaborate with others to provide such training. Many CDCs sponsor or co-sponsor trainings on topics such as how to get started in business, how to write a business plan, how to manage your finances and how to run a business. The trainings are generally open to the public an take place on a weeknight or Saturday. Depending on the region, topics may vary. - Special Programs
Some of our members offer special small business development programs. The
MACDC supports CDCs in these efforts through the following activities:
1. MACDC builds the capacity of CDCs to run effective programs.
MACDC provides support to local CDCs to help them run the most effective small business development programs possible. This support includes the following efforts:
o MACDC provides direct technical assistance to individual CDCs to help them develop and refine their small business development programs and initiatives, and to help them identify appropriate partners with whom they can collaborate.
o MACDC’s Small Business Peer Group provides a forum for local practitioners from both CDCs and other community based organizations to come together to learn from one another. The Peer Group brings in speakers on specific topics and also provides a place where groups can work together on policy issues and other projects.
o MACDC plays an active role on the state’s Small Business Development Advisory Council which is working to strengthen the field across the state.
2. MACDC is working to reform current state and federal business development programs to ensure that they more effectively serve low and moderate income communities and the entrepreneurs located in those communities.
o At the state level, MACDC is working to both improve the effectiveness of existing state programs and secure new funding to support local and regional organizations working in the field. In FY 2007, MACDC secured $2 million in new funding from the legislature to provide grants to local organizations that serve businesses with 20 or fewer employees. We are now working to ensure that the program is continued in FY 2008. MACDC plays an active role on the state’s Small Business Development Advisory Council which is working to strengthen the field across the state by promoting collaboration, learning, and policy reform.
o At the federal level, MACDC will work closely with the Association for Enterprise Opportunity and the Small Business Administration to ensure the continued successful implementation the SBA's micro enterprise programs, including PRIME and the Micro Loan Program. MACDC will also continue to advocate for full funding for the Community Development Financial Institutions Fund, the Community Development Block Grant program and other federal economic development programs.
3. MACDC facilitates collaboration and partnership between CDCs and the banking industry
o MACDC works closely with the major banks in the state to help them establish effective partnerships with CDCs so that together we can better serve local entrepreneurs. This can include helping banks to design and roll out new products, and educating CDCs about the products and services offered by key banks, and facilitating local partnerships between CDCs and individual banks.
4. MACDC will track the work of MACDC members to measure progress toward the GOALs
o As part of the MACDC GOALs Initiative, we conduct an annual survey of our entire membership to learn how many businesses they are serving. We report the results of this survey each year in April.