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SEMI-ANNUAL PERFORMANCE REPORT

January 1, 2005 – June 31, 2005

COOPERATIVE AGREEGMENT 5-603001-Z-0024-16

Submitted by:

Minnesota Department of Employment and Economic Development332 Minnesota Street, Suite E200

St. Paul, Minnesota 55101

July 29, 2005

TABLE OF CONTENTS

TABLE OF CONTENTS...................................................................................................I

MILESTONE ACCOMPLISHMENTS..........................................................................1

COUNSELING MILESTONES............................................................................................1TRAINING MILESTONES..................................................................................................1REGIONAL MILESTONE ACCOMPLISHMENTS...............................................................1COUNSELING AND TRAINING REPORTS.........................................................................4

MAJOR ACTIVITIES AND ACCOMPLISHMENTS..................................................5

100 ADVOCACY..........................................................................................................5200 CAPITAL FORMATION.......................................................................................11300 INNOVATION AND TECHNOLOGY TRANSFER..................................................17400 INTERNATIONAL TRADE...................................................................................25500 MINORITY BUSINESS ASSISTANCE...................................................................30600 RESOURCE DEVELOPMENT..............................................................................36700 PROCUREMENT.................................................................................................44800 SPECIAL EMPHASIS GROUPS............................................................................48900 ECONOMIC DEVELOPMENT, FAITH BASED AND COMMUNITY INITIATIVES...541000 RESEARCH.....................................................................................................571100 OTHER ACTIVITY..........................................................................................601200 SUCCESS STORIES.........................................................................................631300 TRAVEL.........................................................................................................641400 PROBLEMS.....................................................................................................651500 FINANCIAL REPORTS....................................................................................661600 WOMEN OWNED BUSINESSES......................................................................671700 ECONOMIC IMPACT......................................................................................721800 VETERAN AND SERVICE CONNECTED-DISABLED VETERAN-OWNED BUSINESSES, RESERVISTS ON ACTIVE DUTY AND OTHER RESERVE COMPONENT MEMBERS OF THE U.S. MILITARY.................................................................................731900 MANUFACTURING.........................................................................................762000 ONLINE ACTIVITY.........................................................................................79

APPENDIX A...................................................................................................................81

SUMMARY OF SBA QUARTERLY CASE REPORT.........................................................82SUMMARY OF SBA QUARTERLY TRAINING REPORT.................................................83

APPENDIX B...................................................................................................................84

FORM SF 269, FINANCIAL STATUS REPORT...............................................................85SBA FORM 2113, PROGRAM INCOME REPORT..........................................................87SCHEDULE OF INDIRECT COSTS..................................................................................88Form SF 272, Federal Cash Transactions Report..........................................................89

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MILESTONE ACCOMPLISHMENTS

COUNSELING MILESTONES

The Minnesota Small Business Development Center (MNSBDC) network delivered 17,047 hours of counseling to 2,114 clients during the first half of 2005. This represents 75 percent of the clients and 52.3 percent of the counseling hours planned for the year. As TABLE 1 below demonstrates, the MNSBDC program is on target to meet its counseling goals by the end of the program year.

EXISTING BUSINESS CLIENTSExisting business clients represented 57.2 percent of the clients counseled and 43.5 percent of the counseling hours delivered, respectively. It is the strategic objective of the MNSBDC program that existing business clients represent 70 percent or more of counseling resources (i.e. counseling hours). As TABLE 1 below indicates, some of the regional service centers achieved this goal. Centers not accomplishing this level of service are taking steps toward meeting this objective by the end of the year.

HOURS PER CLIENTMNSBDCs delivered an average of 8.1 hours of counseling per client. The network goal average for counseling hours per client is 12.0. As TABLE 1 below indicates, some of the regional service centers achieved this goal. Centers not accomplishing this level of service are taking steps toward meeting this objective by the end of the year.

TRAINING MILESTONES

The MNSBDC network delivered 264 training seminars to 2,983 business owners and prospective business owners during the first half of 2005. This represents 158.1 percent of the training seminars and 59.8 percent of the training attendees planned for the year. As TABLE 1 below demonstrates, the MNSBDC program is on target to exceed its training goals before the end of the program year.

REGIONAL MILESTONE ACCOMPLISHMENTS

The following table provides a region-by-region analysis of Milestone Accomplishments through June 30, 2005.

1

Region Milestone Goal Actual % of GoalBemidji Total Counseling Clients 260 140 53.8%

Existing Business Counseling Clients 180 61 33.9%Total Counseling Hours 2,500 830 33.2%Existing Business Counseling Hours 1,750 457 26.1%Average Hours/Client 12.0 5.9 49.4%

Training Seminars 26 17 65.4%Training Attendees 306 128 41.8%Average Attendees/Seminar 8

Brainerd Total Counseling Clients 320 297 92.8%Existing Business Counseling Clients 221 165 74.6%Total Counseling Hours 4,000 2,495 62.4%Existing Business Counseling Hours 3,010 1,577 52.4%Average Hours/Client 12.0 8.4 70.0%


Duluth Total Counseling Clients 500 407 81.4%Existing Business Counseling Clients 346 244 70.6%Total Counseling Hours 5,300 3,179 60.0%Existing Business Counseling Hours 4,060 1,855 45.7%Average Hours/Client 12.0 7.8 65.1%


Moorhead Total Counseling Clients 200 179 89.5%Existing Business Counseling Clients 138 108 78.1%Total Counseling Hours 3,600 2,781 77.2%Existing Business Counseling Hours 2,800 2,139 76.4%Average Hours/Client 12.0 15.5 129.5%


2

Region Nine Total Counseling Clients 240 161 67.1%Existing Business Counseling Clients 166 79 47.6%Total Counseling Hours 2,500 1,206 48.2%Existing Business Counseling Hours 1,750 658 37.6%Average Hours/Client 12.0 7.5 62.4%


Rochester Total Counseling Clients 300 160 53.3%Existing Business Counseling Clients 207 87 41.9%Total Counseling Hours 3,600 1,164 32.3%Existing Business Counseling Hours 2,520 656 26.0%Average Hours/Client 12.0 7.3 60.6%


St. Cloud Total Counseling Clients 300 204 68.0%Existing Business Counseling Clients 207 79 38.1%Total Counseling Hours 3,100 1,471 47.5%Existing Business Counseling Hours 2,170 633 29.2%Average Hours/Client 12.0 7.2 60.1%


St. Thomas Total Counseling Clients 400 425 106.3%Existing Business Counseling Clients 277 208 75.2%Total Counseling Hours 4,300 1,736 40.4%Existing Business Counseling Hours 3,010 972 32.3%Average Hours/Client 12.0 4.1 34.0%


3

COUNSELING AND TRAINING REPORTS

Counseling and training reports for the periods January 1 through March 31, 2005 and April 1 through June 30, 2005 were entered into the SBA MIS system within the time periods specified in the Cooperative Agreement. A summary of the quarterly counseling and training reports made are provided in APPENDIX A.

St. Thomas Total Counseling Clients 400 425 106.3%Existing Business Counseling Clients 277 208 75.2%Total Counseling Hours 4,300 1,736 40.4%Existing Business Counseling Hours 3,010 972 32.3%Average Hours/Client 12.0 4.1 34.0%


Southwest Total Counseling Clients 300 141 47.0%Existing Business Counseling Clients 207 85 41.0%Total Counseling Hours 3,700 2,184 59.0%Existing Business Counseling Hours 2,590 1,343 51.8%Average Hours/Client 12.0 15.5 129.1%

Training Seminars 10 5 50.0%Training Attendees 118 116 98.3%Average Attendees/Seminar 12.0 0.3 2.7%

State Office Total Counseling Clients 0 0 #DIV/0!Existing Business Counseling Clients 0 0 #DIV/0!Total Counseling Hours 0 0 #DIV/0!Existing Business Counseling Hours 0 0 #DIV/0!Average Hours/Client 12.0 #DIV/0! #DIV/0!

Training Seminars 4 51 1275.0%Training Attendees 3,000 1,132 37.7%Average Attendees/Seminar 22

State Total Total Counseling Clients 2,820 2,114 75.0%Existing Business Counseling Clients 1,950 1,116 57.2%Total Counseling Hours 32,600 17,047 52.3%Existing Business Counseling Hours 23,660 10,288 43.5%Average Hours/Client 12.0 8.1 67.2%

Training Seminars 167 264 158.1%Training Attendees 4,988 2,983 59.8%Average Attendees/Seminar 11

4

MAJOR ACTIVITIES AND ACCOMPLISHMENTS

This section discusses SBDC activities and accomplishments in each of the SBA-defined activity areas. Planned activities are summarized from the 2005-2007 proposal incorporated by reference into the Cooperative Agreement.

100 ADVOCACY

PLANNED ACTIVITIES

The Minnesota SBDC network planned to represent small business interests, improve the climate for small business, and contribute to the vitality of the small business sector in the following ways:

Make presentations to local business or economic development organizations regarding small business issues or SBDC services.

Invite representatives of local business and economic development organizations, lenders, (including SBA preferred lenders) elected officials and other partnering organizations to the SBDC to better understand SBDC offerings.

Publish newsletters and offer articles for publication concerning issues of importance to the small business community.

Nominate candidates for Small Business Week awards.

Lead or participate in Small Business Week activities at the local level, e.g., local recognition events and forums focusing on small business issues.

Sponsor and represent the SBDC at small business functions within the service area, e.g., “Business After Hours” meetings, Chamber of Commerce events, economic development conferences and small business resource fairs.

When permitted, provide testimony or presentations to state and government officials.

ACCOMPLISHMENTS

MNSBDCs actively promoted the needs of small businesses and services of the SBDC through presentations to a variety of organizations in their service areas. Organizations included economic development organizations, Chambers of Commerce, Initiative Foundations, Reservations, Workforce Centers, lending business service organizations, college and university administrators, city and county officials, and civic, business and industry groups. These presentations were an opportunity to discuss small business needs from the perspective of both the

5

recipient organizations and the SBDC, and to identify unmet business needs. As a result of these interactions, collaborative efforts with these organizations have allowed the SBDC to better respond to the needs of its clients and Minnesota’s small business community.

The following are some examples of regional efforts made to promote the needs of small business and the services offered by the SBDC program.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs invited representatives of local business and economic development organizations to their locations and made local visits to help them understand the SBDC and its program offerings. Organizations invited and participating in such partnership meetings include representatives of local community banks, Economic Development Agency personnel, Indian tribal members, elected officials, and other key partner organizations. The following are some regional examples of invitations made to these groups to learn more about the SBDC program and the services it offers.

6

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs published newsletters and contributed articles for publication to various media. Host institution communications offices and the SBA district office information officer were especially helpful in publicizing SBDC success stories. SBDCs contributed articles on small business issues to local printed publications. Several centers were the interview subject for radio and television media. The following are some regional examples of contributions made by local centers.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

7

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs actively supported Small Business Week activities by nominating candidates for Small Business Week awards, serving on local planning and candidate selection committees, and co-sponsoring local recognition events. The following are some regional examples of efforts taken to recognize small business during Small Business Week events.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

8

SOUTHWEST

MNSBDC personnel represented the SBDC at a number of local small business functions during the program year. In May, lead office personnel attended the SBA Champion Awards Luncheon during which a MNSBDC nominated finalist was awarded the Family-Owned Small Business of the Year award. The lead office also participated in the Rural Entrepreneurship Across Minnesota meeting. Ideas of how to effectively and efficiently serve state’s rural small business community were discussed at the meeting by key regional economic development representatives. The following are regional examples of efforts made to represent the SBDC at small business events.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

While attending an ASBDC membership meeting, lead center personnel took the opportunity to meet with staff members of four Minnesota House and Senate representatives at the Washington DC offices to inform them about SBDC services and to consider collaborative efforts in the future. Other MNSBDC personnel informed local elected officials about its business development services in a number of ways. Some examples are:

9

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

10

200 CAPITAL FORMATION

PLANNED ACTIVITIES

The MNSBDC network planned to assist small businesses in accessing capital and maintaining relationships with sources of capital in the following ways:

Continue to offer financial analysis and loan packaging as one of the core services of the MNSBDC program.

Offer workshops and seminars on small business capital formation topics.

Maintain existing relationships with sources of capital, and establish new relations, to promote mutual understanding of programs and services, and encourage cross-referrals. Examples are commercial lenders, venture capital investors, certified development companies, Initiative Foundations, state and federal loan programs, state and local economic development officials and organizations, and programs specifically targeted to underserved populations.

Provide training to counselors regarding public and private sector financing programs, including traditional sources of financing as well as emerging or innovative sources.

Provide information to counselors and clients on financing programs and capital formation using both printed and electronic media.

Assist the district SBA office in offering lender training throughout the state.

ACCOMPLISHMENTS

MNSBDCs counseled 844 small business clients delivering 5,300.50 hours on issues related to capital formation during the first half of 2005. This represents 39.9 percent of our clients needing assistance in this area requiring 31.1 percent of our counseling resources, i.e. counseling hours.

MNSBDCs assisted with the completion and approval of 265 loan packages or applications for financing during the first six months of 2005. As a direct result of this assistance, 379 small business clients obtained and invested over $54 million in capital and equity into the start-up and expansion of their businesses during the first half of 2005. The following chart demonstrates capital obtained by region during this period.

11

MNSBDCs also sponsored 41 training seminars on financing and accounting issues, delivering 163 training hours to 672 attendees during the first half of 2005.

These outcomes continue to demonstrate that assistance in the acquisition of capital is a business need, which the MNSBDC is successfully meeting.

MNSBDCs continued to maintain relationships with sources of capital through regular meetings and networking events. Center personnel have also worked to establish relationships with new sources of capital within the region. These relationships promote communication and understanding of the SBDC program and are an opportunity to promote SBA loan programs. As a result of these activities, lenders are a primary source of referral to the SBDC. Following are some regional examples of continuing relationships with local sources of capital.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

Results of SBDC Loan Packaging Assistance

RegionClients

Assisted

Approved Non-SBA

LoansApproved SBA

LoansNon-Debt Financing

Total Financing

Bemidji 7 $966,000 $0 $0 $966,000Brainerd 104 $5,279,350 $1,815,712 $2,201,684 $9,296,746Duluth 49 $10,065,000 $175,000 $6,378,000 $16,618,000Moorhead 58 $9,745,656 $4,879,846 $2,743,797 $17,369,299Region Nine 22 $735,000 $0 $223,750 $958,750Rochester 34 $1,068,550 $793,500 $185,000 $2,047,050St. Cloud 28 $576,450 $1,287,000 $0 $1,863,450St. Thomas 48 $717,000 $0 $60,000 $777,000Southwest 29 $912,600 $2,096,315 $1,131,007 $4,139,922State Total 379 $30,065,606 $11,047,373 $12,923,238 $54,036,217

12

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs continued to explore new avenues of capital within their region in the following ways.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

13

The lead center continues to provide centers with information about SBA programs, including 504, 8(a) certification, and 7(a) loan program updates. The following are some regional examples of efforts made in keeping counselors informed regarding these sources.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

The following are some regional examples of efforts made to inform clients of public and private sources of financing.

BEMIDJI

BRAINERD

DULUTH

14

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs continued to cosponsor with the Minneapolis SBA district office to offer SBA lender-training programs that were attended by banking representatives. Center counselors also attended SBA lender training events to insure SBDC clients are provided with up-to-date and accurate information. The following are regional examples of these and other lender related training efforts.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

15

ST. CLOUD

ST. THOMAS

SOUTHWEST

16

300 INNOVATION AND TECHNOLOGY TRANSFER

PLANNED ACTIVITIES

Small Business needs assessments conducted by the Minnesota SBDC network indicate the primary need of small companies in the technology area is understanding and implementing technology solutions to business problems. Accordingly, the SBDC network will assist clients in the area of innovation and technology transfer in the following ways:

Offer technology assessments and counseling regarding appropriate and profitable applications of technology, using the model developed by the Duluth center in its 21st Century Arrowhead Initiative.

Offer seminars on topics such as e-commerce, Internet marketing (business-to-consumer and business-to-business), technology-based productivity enhancements, and other technology-related topics, in collaboration with Minnesota Technology, Inc. and other local partners.

Continue existing relationships, and develop new relationships with technology-oriented organizations such as Minnesota Technology, Inc., science and engineering departments of host institutions, private and public sector technology organizations and other, in order to expand the array of technology-based expertise available to small companies.

Provide information about and maintain a referral relationship with the SBIR/STTR program offered by Minnesota Project Innovation, Inc.

Provide information and assistance to inventors, including making referrals to inventor assistance programs and developing lists of resources available to inventors.

Participate in the investigation in the use of electronic counseling and evaluate its effectiveness. Within resource limitations, if conclusion indicates need, expand its availability and use.

Within resource limitations, expand the availability to clients of business planning tools and other electronic resources through SBDC web sites.

Promote the services of the Business Information Center (BIC) in St. Paul and the Tribal Business Information Center in Cass Lake. Make referrals as appropriate.

Investigate the establishment of “mini-BICs” located in each SBDC region.

17

Continue working with the Northern Tier High Tech Corridor (NTHT) initiative sponsored by the Blandin Foundation. This initiative provides internet-based access to resources of interest to businesses, economic developers, and communities.

Investigate the feasibility of linking all SBDC service centers and personnel through a common Internet-based web site, e.g. development of NTHT communities. If feasible, investigate value and pursue funding opportunities to maintain the site. Expand availability to clients to the extent possible within resource limitations.

ACCOMPLISHMENTS

MNSBDCs regularly provide counseling or assessment guidance for small businesses seeking to incorporate or expand technology in their business. MNSBDCs counseled 224 small business clients delivering 995.60 hours on technology-related issues during the first half of 2005. This represents 10.5 percent of our clients needing assistance in this area requiring 6 percent of our counseling resources, i.e. counseling hours, respectively. Counseling included services such as technology assessments, implementation of computerized accounting and management information systems, web site development, and training on QuickBooks and other accounting software.

MNSBDCs also sponsored 119 training seminars (44%), delivering 378 training hours (45%) to 797 attendees (26.7%) during the first half of 2005, reflecting substantial demand for information on technology and the use of computers.

The following are regional examples of efforts made to provide technology assessments or counseling regarding appropriate and profitable applications of technology.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

18

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs have strong established relationships and continue to build new relationships with technology-oriented organizations to meet the technology needs of its clients and the small business community. The following are regional examples of efforts made to maintain existing relationships and establish new relationships with local technology-oriented organizations in order to expand the array of technology-based expertise available to the small business community.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

19

MNSBDCs assisted inventors in a variety of ways, including assessment of market potential, development of a business plan, processes of protecting intellectual property and maintaining resource listings to make referrals to appropriate resources for inventors. The following are regional examples made to assist inventors.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs counseled 197 clients delivering 452.50 counseling hours using e-mail during the first half of 2005. Centers indicate that the use of e-mail following an initial face-to-face counseling session is essential in providing timely and efficient service delivery in reaching clients in sparsely populated rural areas. The use of e-mail counseling saves time for both center clients as well as consultants. The following are regional examples concerning the use of email and electronic counseling when delivering service.

BEMIDJI

20

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs continue to investigate opportunities for distance learning and sponsor or cosponsor events when appropriate. Following are regional examples of local efforts.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

21

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs have made electronic resources available to clients in the following ways.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs have actively promoted the services of the Business Planning Center (BPC) and the Tribal Business Information Center (TBIC) in Cass Lake, and have made referrals as appropriate. The following are regional examples of the relationships maintained with these resources.

BEMIDJI

22

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

The MNSBDC lead center continues working with the Northern Tier High Technology Corridor (NTHT) on enhancing the MNSBDC’s outreach efforts to centers through the development of an extranet site. NTHT is sponsored by the Blandin Foundation and made available free to MNSBDCs. Plans for the site include the ability for counselors to meet and share documents on-line with clients. Other examples of the use of web-based outreach efforts by centers of the MNSBDC network are:

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

23

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDC has worked to increase the elements and the use of the SBIR/STTR programs by members of their regional economic development assistance community. The following are examples of this effort.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

24

400 INTERNATIONAL TRADE

PLANNED ACTIVITIES

MNSBDCs planned to:

Refer clients interested in exporting products or services to the Minnesota Trade Office, the U.S. Export Assistance Center (USEAC), and electronic resources related to international trade.

Continue the relationship the Duluth service center has developed with the U.S. Department of Commerce. An employee of the Department of Commerce visits the center monthly to hold training seminars on international sales and marketing, followed by office hours for consultation with small companies.

Investigate the possibility of using international trade students in partner institutions to assist in delivering international trade services. Implement initiative if appropriate and evaluate its effectiveness.

Co-sponsor seminars on topics of international trade when invited to do so, subject to availability of resources.

Offer training to counselors on resources of the USEAC and Minnesota Trade Office.

Promote international trade events of interest to the small business community.

Continue to monitor the need for export assistance and expand services or referrals if the need is not met.

ACCOMPLISHMENTS

MNSBDCs made referrals to the Minnesota Trade Office and the U.S. Export Assistance Center as appropriate. Several documented referrals were made during the reporting period. Other referrals were made to other trade organizations, including the Foreign Agricultural Service, Mid-American International Agri-Trade Council, and the U.S. Meat Export Federation. Referrals also were made to the U.S. Department of Commerce and Minnesota Trade Office web sites and other electronic resources. Additionally, center staff met with representatives of international trade organizations as well as attended regional international trade promotion events. The following are some examples of regional relationships and local interaction with these resources.

BEMIDJI

25

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs, when appropriate, used international trade students and host organizational resources to assist in the delivery of international trade services to the small business community. The following are some regional examples of efforts made to use international trade students in serving SBDC clients.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

26

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

When a need was identified, MNSBDCs collaborated with international trade organizations to offer training seminars related to doing business internationally. Such sessions were not well-attended or cancelled due to lack of registration. The following are some regional examples of these efforts.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

27

MNSBDCs assist its international trade organization partners in promoting its international trade events and services to its clients and small business community. The following are some regional examples of these efforts.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

Although, traditionally the MNSBDC network has not experienced a high demand for international trade assistance the MNSBDC continues to monitor demand for international trade assistance and provide assistance or referral when needed.

The following are some regional examples of changes observed in the need for export assistance and any actions the center has taken in response of the identified need, if any.

BEMIDJI

BRAINERD

28

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

29

500 MINORITY BUSINESS ASSISTANCE

PLANNED ACTIVITIES

Services of the Minnesota SBDCs are offered without regard to race or national origin. The SBDCs historically have served minority-owned businesses in excess of their representation in the business community. We will continue to monitor service delivery trends to assure that minority-owned businesses have the same access to SBDC services as non-minority owned firms. Specific services to be directed to minority business owners include the following:

Provide outreach to Native American businesses in service areas with significant Native American populations.

Continue to participate in the annual Native American Business Development Conference, if invited.

Refer Native American clients and business owners to the Tribal Business Information Center in Cass Lake where appropriate.

Offer interpreter services for non-English speaking clients.

Collaborate with the Metropolitan Economic Development Association (MEDA) to deliver counseling and training to minority clients. MEDA’s mission is to offer business development assistance and financing to minority-owned businesses.

Strengthen relationships with other organizations serving minority communities, e.g., Hispanic Chamber of Commerce, Asian Business Roundtable, American Indian Chamber of Commerce.

Assist clients in applying for SBA 8(a) certification.

Analyze changes in the state’s demographic patterns emerging from the 2000 Census to determine the need for new initiatives to reach minority entrepreneurs.

ACCOMPLISHMENTS

According to SBA’s Office of Advocacy, ethnic minorities comprise 3.3 percent of the business ownership in Minnesota. During the first six months of 2005, MNSBDCs counseled 171 small business clients, delivering 2,114 counseling hours to individuals who self-certified themselves as belong to an ethnic minority group. This represents 8.1 percent of the clients counseled and 7.4 percent of counseling hours delivered, respectively. MNSBDCs also trained 96 existing and aspiring self-certified minority small business owners during that same period. This represents 3.2 percent of all MNSBDC training attendees.

30

These figures indicate that the MNSBDC continues to service this market segment at a rate of more than twice its state representation, and its continuing commitment to make its services to available to all individuals on a non-discriminatory basis.

The following chart provides a region-by-region analysis of counseling delivered to ethnic minorities.

The following are some additional regional examples of the level of services delivered to individuals who self-certified themselves as belong to an ethnic minority group and interaction with other organizations to provide services to ethnic minorities.

BEMIDJI

BRAINERD

DULUTH

Region ClientsCounseling

HoursBemidji 6 30Brainerd 11 81Duluth 20 134Moorhead 9 73Region Nine 16 101Rochester 12 134St. Cloud 13 103St. Thomas 75 320Southwest 9 293State Office NA NATotal Minority 171 1,267Total Clients 2,114 17,047% Minority 8.1% 7.4%

SBDC Counseling to Ethnic Minorities

31

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs continued to remain active making its services accessible to minorities, including offering translation services and using interpreters to deliver counseling.

Following are some regional examples of relationships established to provide translation and other services to make SBDC services more accessible to minorities.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

32

ST. CLOUD

ST. THOMAS

SOUTHWEST

Personnel from the lead center participated in the planning of the El Pueblo Hispano Conference with representatives from UMOS and the Chicano Latino Affairs Council. The conference was held in St. Paul in May. A primary element of the conference focused on business development issues for the Latino community.

MNSBDCs continued to meet with local organizations that serve ethnic minority clients to inform them of SBDC services and promote cross-referrals. Some directors served on boards of community organizations that serve ethnic minorities. As a result, more ethnic minority clients are referred to the SBDC by these organizations.

The following are some regional examples of collaborations established with organization that serve ethnic minority communities.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

33

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs continued to assist ethnic minority individuals with access to procurement opportunities such as SBA’s 8(a) program.

The following are some regional examples of assistance provided to identified SBA 8(a) clients and the results.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs continued to monitor the changes in regional demographic patters to aid in determining future business development needs of minority entrepreneurs.

34

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

35

600 RESOURCE DEVELOPMENT

PLANNED ACTIVITIES

The SBDC network will engage in the following activities to promote or develop funding partners and sources of non-cash contributions to assist the SBDC in its work:

Continue working with existing funding partners to assure that the SBDCs are meeting their needs and expectations, and to understand and address new needs and expectations of the SBDCs.

Identify and pursue new funding sources, for example in the area of expanding and sustaining entrepreneurship in the state, and expanding technology-related opportunities within the SBDC network and for clients.

Continue efforts to secure full cash match from the Minnesota Legislature.

Continue to work with partner institutions to expand the use of faculty and students in delivering SBDC services.

Promote the SBDC as an important element of partner institutions’ community outreach initiatives; continue to demonstrate benefits to partner institutions of hosting an SBDC service center location.

Expand utilization of no- or low-cost resources, such as collaborations with other organizations, expanded use of volunteers, and electronic tools.

Continue existing relationships with the state SCORE organization and SCORE chapters in regional service areas. Planned activities include seminar and conference co-sponsorship, cross-referrals, promotion and joint marketing of seminars and events, and joint meetings as appropriate.

Continue working with state and local advisory board members to develop new resources.

Conduct recognition events for resource partners.

ACCOMPLISHMENTS

MNSBDCs worked with existing funding partners to assure the SBDC is meeting their needs and expectations, and to understand and address emerging needs and expectations. This was primarily done through personal meetings, telephone follow-up, and regular reports of SBDC accomplishments and return on funding entities’ investment. This activity resulted in new and continuing support for the SBDC program.

36

The lead centers efforts to secure full cash match from the Minnesota Legislature through the Minnesota Department of Employment and Economic Development were not successful, nonetheless, future efforts will be made. In addition, the MNSBDC network will continue to investigate other opportunities to expand cash match.

The following are some regional examples of efforts made to work with existing funding partners to assure their needs and expectations were being addressed.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs continued to meet with potential new funding partners to enhance their awareness of SBDC services and lay the groundwork for future financial assistance. Several centers were successful in obtaining new funding, cash and in-kind, to enhance their development services during the first half of 2005. The following are some regional examples of these efforts.

BEMIDJI

37

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs continued to work with host institutions to expand the use of faculty and students in the delivery of SBDC services. The following are some regional examples of how the center utilizes faculty and students in delivering SBDC services.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

38

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs continued to promote the SBDC as an important element of their host partner’s community and economic development outreach among other benefits of hosting a Small Business Development Center. This was done primarily through regular reports and sharing of SBDC accomplishments. Directors have been asked to participate on host institutional committees, demonstrating the value placed on SBDC directors by their host institutions. They also serve on local economic development and community boards and committees, providing additional visibility for the SBDC and the host institution. It is further demonstrated by the fact that the level of support for the SBDC program has remained consistent, despite difficult economic times as well as serious state and host budget shortfalls.

The following are some regional examples of efforts made to demonstrate to its host partners the benefits being a sponsoring partner.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

39

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs expanded its utilization of no-cost or low-cost resources in a number of ways to enhance client services. The following are some regional examples of how the region has expanded utilization of no or low cost resources to offer and deliver services.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs continued their strong relationship with the state SCORE organization and SCORE chapters in their service areas. The lead office has participated in multiple organization meeting focused on the establishment of a SCORE chapter in

40

Duluth. The following are some additional regional examples relating to the regions relationship with its local SCORE chapter or representation.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs continued work to actively engage advisory board members in the effort to develop new resources for the SBDC program. The regional advisory board members are composed of key members of the business and economic development community.

The state office held its annual state advisory board meeting in St. Paul on April 6 th. During this meeting, resource development ideas were discussed in detail. Some additional regional examples of this effort are:

BEMIDJI

BRAINERD

41

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs recognized resource partners by identification in promotional materials and special recognition events. The following are some regional examples of recognition events conducted for resource partners.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

42

ST. CLOUD

ST. THOMAS

SOUTHWEST

43

700 PROCUREMENT

PLANNED ACTIVITIES

The SBDC network will provide clients with information on procurement opportunities in the following ways:

Collaborate with the Government Marketing program of Metropolitan Economic Development Association (MEDA) to offer training seminars and counseling on doing business with federal, state and local governmental entities.

Promote and participate in the Minnesota Federal Executive Board’s Small and Disadvantaged Business Opportunity Council (SADBOC) Procurement Fair sponsored by the SBA District Office.

Make informational materials and web site information on government procurement opportunities available to clients and other interested individuals.

Continue working with the SBA District Office to update SBDC personnel on SBA procurement programs such as the HUBZone, 8(a), Surety Bond Guarantee, and Certificate of Competency programs.

Provide office space to procurement specialists of the Metropolitan Economic Development Association (MEDA).

Post bid notices from prime contractors and advise clients who may be interested

in government contracting opportunities.

ACCOMPLISHMENTS

MNSBDCs rarely provided counseling or guidance counseling in the area of procurement. MNSBDCs counseled seven small business clients, delivering 11.5 hours on procurement-related issues during the first six months of 2005. MNSBDC also sponsored 11 training seminars, delivering 27.50 training hours to 79 attendees during this same period. As these figures indicate, the MNSBDC network has not experienced high demand for procurement assistance, however, the MNSBDC network continues to monitor demand and work closely with the other procurement specialist organizations, including Government Marketing Program the Metropolitan Economic Development Association (MEDA), formerly known as MPI.

The following are some regional examples of collaborations and sponsorships with procurement assistance organizations. MNSBDCs also assisted and participated in procurement fairs offered by SBA.

44

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs offer procurement-related materials and on-line resources related to procurement to clients in their resource centers. Bid notices and other materials offering procurement opportunities for clients are provided by the lead center and are posted by the centers. The following are some regional examples of how it makes information materials or web site information on government procurement opportunities available to SBDC clients and other interested individuals.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

45

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs work to ensure the business community understands and will utilize if desired SBA’s 8(a), Surety Bond Guarantee or Certificate of Competency programs. Some examples of these efforts are:

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

46

MNSBDCs work to ensure there are methods in place to inform prime contractors of bid notices postings. Some examples of these efforts as well as other efforts to assist clients who may be interested in government contracting opportunities are:

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

47

800 SPECIAL EMPHASIS GROUPS

PLANNED ACTIVITIES

As state in the proposal, The Minnesota SBDC network offers services without regard to specific status, e.g., disability, age, and the like. Centers plan to engage in the following activities with regard to the special focus groups identified by SBA.

People with Disabilities

Provide information on the Americans with Disabilities Act and the state Human Rights Act to employers to assist them in complying with requirements of those laws.

Accept referrals from vocational rehabilitation counselors to assist clients in developing business plans that will enable them to access financing available from the state Rehabilitation Services office.

Continue to familiarize vocational rehabilitation counselors with services of the SBDC, to assure appropriate referrals and facilitate good customer service.

YOUNG ENTREPRENEURS

Participate in seminars and workshops on entrepreneurship for middle school and high school youth.

Make presentations to secondary and post-secondary entrepreneurship classes.

Collaborate as requested, subject to available resources, with organizations that serve the young entrepreneur market.

SBDC Targeted Industry Businesses

SBDC targeted industries are those industries in each region that have been identified as having strong potential for economic growth, thus contributing to the economic vitality of the region. A significant number of identified targeted industries are in the manufacturing sector. Businesses in targeted industries will be served in the following ways:

Centers will serve targeted industries at least in proportion to their aggregate representation in the region.

Continue collaboration with Minnesota Technology, Inc. to reach smaller manufacturing firms in the region.

48

Continue to monitor the needs of targeted industries and expand services or referrals if the need is not met.

ACCOMPLISHMENTS

People with DisabilitiesMNSBDCs counseled 91 small business clients, delivering 706.75 counseling hours to individuals who self-certified themselves as being disabled during the first six months of 2005. This represents 4.3 percent of the clients counseled and 4.1 percent of counseling hours delivered, respectively. These figures indicate that the MNSBDC continues to service this market segment while continuing its commitment to make its services to available to all individuals on a non-discriminatory basis.

MNSBDCs also continued to accept referrals from Workforce Development Centers, State Services for the Blind, Life Work Centers, the Department of Rehabilitation Services, Northeast Entrepreneur Fund, North star Community Development Corporation, and other veterans outreach groups and other organizations that serve people with disabilities.

The following are some regional examples of efforts made to provide services to individuals with a disability.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

49

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs work to familiarize vocational rehabilitation counselors of development program services. These efforts ensure an effective referral process. Some examples of these efforts are:

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

Young Entrepreneurs

MNSBDCs presented to student groups at the secondary, and undergraduate and graduate college levels. Some center personnel also worked with several

50

organizations serving youth entrepreneurs. The following are some regional examples of activities done to promote and support youth entrepreneurship.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

SBDC Targeted Industry Businesses

In its mission of facilitating business development across the state while creating the greatest economic impact for its clients and economy, the MNSBDC network has identified targeted industries in the nine SBDC regions that should be the focus of its efforts. Each SBDC is expected to deliver services to these industries, at a minimum, in proportion to the industries representation. Statewide analysis to measure services to targeted industries are being assessed. The following are some regional efforts made to assure the SBDC serves business in defined SBDC targeted industries.

BEMIDJI

51

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs were involved in other activities to reach other special focus groups. The following are some examples of these efforts:

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

52

ST. CLOUD

ST. THOMAS

SOUTHWEST

53

900 ECONOMIC DEVELOPMENT, FAITH BASED AND COMMUNITY

INITIATIVES

The SBDC’s mission is to promote economic development by helping small business clients expand, innovate increase productivity, and create jobs. Most of the SBDC’s economic development efforts are achieved through counseling and training, and through the targeted industry strategy described in Section 800 above. The lead center is located within the state’s economic development agency, and accordingly its efforts are directed at advancing the goals of that agency as well as the goals of the SBDC program.

Regional and local SBDCs are actively involved in the economic development networks operating in their service areas. They will continue to engage in cross-referrals, seminar co-sponsorships, and other activities with regional and local economic development organizations. Examples include the Agricultural Utilization Research Institute (AURI), the Natural Resources Research Institute (NRRI), Initiative Funds, the Center for Rural Policy and Development, USDA Rural Development, and others.

SBDC’s will continue to work with federal, state and local economic resources to respond to economic disasters that affect the small business community, e.g. plant closings and natural disasters.

ACCOMPLISHMENTS

Respondents to the SBDC client satisfaction survey served in 2004 indicated SBDC assistance contributed to business and economic development outcomes in a number of ways.

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The table above and special activities identified below illustrate the economic development outcomes realized by SBDC clients and the fundamental involvement MNSBDCs have on economic development within their respective regions.

The following are some regional examples of efforts made to promote economic development locally.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

Number PercentDeveloped a business plan 512 87.5%Started a business 292 75.1%Obtained financing 255 81.0%Obtained a government contract 13 52.0%Obtained a SBIR or STTR award 7 100.0%Developed a marketing plan 354 84.1%Increased sales 232 63.9%Increased cash flow 199 64.2%Improved productivity 205 64.7%Added employees 90 51.4%Changed a business strategy 294 81.0%Obtained needed information 753 93.7%Canceled or delayed plans to go into business 141 60.3%

Outcomes

Survey Respondents Who Attribute Business or Economic Development Outcomes

"At Least in Part" To SBDC Assistance

55

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs maintained active involvement in local economic development networks and continued to engage in cross-referrals, seminar co-sponsorship, in addition to other activities with regional and local development organizations. The following are some examples of these efforts.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

56

1000 RESEARCH

PLANNED ACTIVITIESThe following projects are planned at this time:

Continue to conduct a statewide client satisfaction and impact survey focused on outcomes of the program throughout the cycle. Results are compiled into a statewide report annually and shared with centers and other key stakeholders.

Participate in the biennial impact assessment conducted by the ASBDC.

Participate in the ED Impact Survey by assisting with compiling data and distributing mailings.

Conduct a needs assessment using the online needs assessment process provided by SBA. It is anticipated a formal needs assessment will be repeated every third year.

Participate in a survey conducted by the University of Minnesota of nascent entrepreneurs and their spouses to measure the impact a spouse plays in the establishment and sustaining a successful business. Results are expected to be completed in 2005.

ACCOMPLISHMENTSThe lead center completed its annual client satisfaction survey during the first half of 2005. The survey population consisted of all clients served in 2004. The statewide response rate was 40.4 percent, with regional response rates ranging from 33.7 percent to 46.8 percent. The survey indicated:

92.1 percent were satisfied with their counseling experience overall.

94.7 percent were satisfied with the consultant’s understanding of their business situation.

95.3 percent were satisfied with their counselor’s business skills and expertise.

94.2 percent were satisfied with the timeliness of service.

91.4 percent were satisfied with the usefulness of the recommendations.

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91.2 percent were satisfied with their counselor’s efforts to keep them informed.

95.3 percent would recommend the SBDC to others.

The top five business issues or obstacles to business success were:

Obtaining financing (14.6 percent)

Increasing sales (13.7 percent)

Time management (11.2 percent)

Developing a business plan (9.8 percent), and

Understanding the market (9.4 percent).

The MNSBDC participated in an impact assessment survey during the first six months of 2005. The survey was conducted of all MNSBDC clients who had five or more hours of counseling in 2003. The response rate from Minnesota clients was 29.2 percent. The survey indicated Minnesota SBDC clients:

Generated $12.54 million in tax revenues.

Created 1,417 jobs.

Retained 1,859 jobs.

Obtained $96.45 million in financing.

Generated $3.59 in tax revenues for every $1 spent on program operations.

The MNSBDC completed its small business needs assessment in December 2004. The survey results are currently being analyzed.

The following are some regional examples of various regional center research projects conducted on behalf of the centers clients or resource partners:

BEMIDJI

BRAINERD

58

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

59

1100 OTHER ACTIVITY

PLANNED ACTIVITIES

The SBDC network will assist the Department of Employment and Economic Development in implementing, as appropriate and consistent with the SBDC mission, recommendations of the Governor’s Entrepreneurial Development Task Force and the Minnesota Rural Entrepreneurship Task Force. Both of these initiatives were supported in part by the Kauffman Foundation. Recommendations particularly suited to the SBDC mission include access to technical assistance, integrated service delivery, support of youth entrepreneurship, and building a culture of entrepreneurship in rural areas.

The SBDC network will evaluate its training programs as identified in its strategic plan, with the goal of creating a statewide delivery system. Planned activities and strategies involve inventorying existing curriculum resources, identifying client training needs, designing courses appropriate for statewide delivery, developing distance learning opportunities, encouraging partnerships and co-sponsorships, examining ways to use the training program to generate revenue to enhance service delivery, utilizing on-line training technologies and exchanging best practices.

Within resource limitations, the SBDC network will participate in a SBA region online counseling pilot when implemented.

When integration of computerized information systems is complete the SBDC network will participate in EDMIS or another SBA-designated centralized database system for reporting purposes.

ACCOMPLISHMENTSThe MNSBDC network continued to evaluate its training programs. As a result, the lead center has organized several statewide training events that offered and delivered throughout the network. During the first half of the 2005 these included Employer Conferences co-sponsored with the Department of Labor, EEOC, Department of Revenue, Unemployment Insurance/DEED and OSHA. Small Business Resource Fairs were also offered statewide and were cosponsored with SBA, SCORE and WBCs (where present).

MNSBDCs also engaged in other activities as a result of carry-over or supplemental funding, or local initiatives. The following are some regional examples of accomplishments made as a result of additional funding.

BEMIDJI

60

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs were involved in other notable activities during the program year. The following are some regional examples of these efforts.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

61

ST. CLOUD

ST. THOMAS

SOUTHWEST

62

1200 SUCCESS STORIES

The MNSBDC realized many success stories during the first half of the 2005 program year. The following are some regional examples of outstanding accomplishments realized by SBDC clients as a result of SBDC services.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

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ST. CLOUD

ST. THOMAS

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63

1300 TRAVEL

There was no lead center unplanned or unbudgeted out-of-state travel during the first half of the program year. Nor did any of the MNSBDC regional centers have any unplanned or unbudgeted out-of-state travel during the same time period.

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1400 PROBLEMS

As outlined below, MNSBDCs reported difficulty in raising funds for cash match. The problem is exacerbated by the state budget deficit. Counties, cities, economic development agencies and other organizations that originally committed match found that with cutbacks from the state, they were not able to meet those commitments. As a result, center directors were required to dedicate resources to finding new sources of funding or decrease expenses.

The following are some other regional examples of difficulties encountered during first six months of 2005.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

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65

1500 FINANCIAL REPORTS

See Appendix B for copies of financial reports.

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1600 WOMEN OWNED BUSINESSES

PLANNED ACTIVITIESAs stated in connection with the discussion of service to minority owned businesses and special focus groups, SBDC services are provided without regard to gender. SBDCs historically have served women-owned businesses in proportion to their representation in the business population. Centers plan to engage in the following activities to enhance service to women business owners:

Market SBDC services to organizations that serve women-owned businesses.

Increase networking and cross-referral arrangements with organizations that serve women business owners. Particular efforts will be directed to the SBA Women’s Business Centers (People Connection) in Fosston and St. Paul (WomenVenture).

Offer or co-sponsor seminars aimed at women business owners.

Increase SBDC personnel awareness of the SBA PreQualification Loan Program, and expand usage in appropriate cases.

Refer women clients to the SBA On-Line Business Resource Center.

Continue to monitor service delivery to assure that women owned businesses have the same access to service as businesses owned by men.

ACCOMPLISHMENTS

MNSBDCs counseled 1,062 small business clients and delivered 8,422 counseling hours to businesses owned by women or women/men partnerships. This represents 50.2 percent of the clients counseled and 49.4 percent of counseling hours delivered, respectively. MNSBDCs also trained 1,376 existing and aspiring women business owners during that same period. This represents 46.1 percent of training attendees.

These figures indicate that the MNSBDC continues to service this market segment and its continuing commitment to make its services to available to all individuals on a non-discriminatory basis.

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The following chart provides a region-by-region analysis of counseling delivered to female clients.

The following are some regional examples of the level of services delivered to individuals who self-certified themselves as being a women-owned business and interaction with other organizations to provide services to women.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

Region Clients Hours Clients Hours Clients HoursBemidji 47 246 21 151 68 397 Brainerd 98 737 103 901 201 1,638 Duluth 124 725 81 577 205 1,302 Moorhead 59 778 31 471 90 1,249 Region Nine 55 355 32 255 87 610 Rochester 53 300 8 118 61 418 St. Cloud 61 407 30 282 91 689 St. Thomas 172 753 17 82 189 834 Southwest 47 700 23 585 70 1,285 Total Women 716 5,002 346 3,420 1,062 8,422 Total Clients 2,114 17,047 2,114 17,047 2,114 17,047 Percent Women 33.9% 29.3% 16.4% 20.1% 50.2% 49.4%

Women Only Male/Female Total

SBDC Counseling to Women-Owned Businesses

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ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs engaged in networking and cross-referral arrangements with organizations that serve women business owners. The following are some regional examples of these efforts.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs offered training opportunities and written materials to counselors to increase their knowledge of available resources including SBA programs. The following are some regional examples of efforts made in keeping counselors informed regarding the SBA Pre-Qualification loan program.

69

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDC personnel are made aware and make referrals, as appropriate, to all SBA’s resources, including SBA’s on-line women’s business resource center. The following are some regional examples of such referrals.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

70

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs are committed to making its services to available to all individuals on a non-discriminatory basis regardless of gender, ethnicity, disability or sexual relation. The following are some regional examples of efforts to assure SBDC services are made available to women.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

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ST. CLOUD

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71

1700 ECONOMIC IMPACT

Not required for Semi-Annual Report

72

1800 VETERAN AND SERVICE CONNECTED-DISABLED VETERAN-

OWNED BUSINESSES, RESERVISTS ON ACTIVE DUTY AND OTHER

RESERVE COMPONENT MEMBERS OF THE U.S. MILITARY

PLANNED ACTIVITIES

The SBDCs will continue their outreach to veterans, service-connected disabled veteran-owned businesses and Reservists called to active duty and other Reserve component members in the following ways:

Work with county veterans service officers to better understand and address the business development needs of veterans, service-disabled veterans and members of the Reserve and National Guard called to active duty.

Familiarize veteran advocacy organizations with the services of the SBDC, to promote referrals and cross-referrals.

Continue to assist veterans pursuing Veterans Administration Rehabilitation Services funding to develop business plans, using existing training and counseling programs.

Promote SBA programs directed at veterans and employers of veterans, such as the newly-authorized disaster assistance program for employers of mission-critical reservists called to active duty.

ACCOMPLISHMENTS

MNSBDCs counseled 194 small business clients, delivering 1,389 counseling hours to individuals who self-certified themselves as being veterans during the first six months of 2005. This represents 9.2 percent of the clients counseled and 8.1 percent of counseling hours delivered, respectively. MNSBDCs also trained 100 existing and aspiring veteran business owners during that same period. This represents 3.3 percent of training attendees.

MNSBDCs also worked closely with other veteran service organizations to familiarize them with the services of the SBDC. Following are some regional examples of the level of service provided to veterans and collaborations made with organizations that provide services to veterans.

BEMIDJI

BRAINERD

73

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

The lead center provided centers with information about SBA initiatives directed at veteran business owners and businesses affected by military call-ups. Centers posted this information and made it available to counselors. The following are some regional examples of the efforts made to promote SBA programs directed at veterans and employers of veterans or individuals called to active military duty.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

74

ST. CLOUD

ST. THOMAS

SOUTHWEST

75

1900 MANUFACTURING

PLANNED ACTIVITIES

The SBDCs will continue their outreach to businesses within the manufacturing sector in the following ways:

Continue to monitor the business assistance needs of the manufacturing sector. Expand MNSBDC services or referrals if needed.

Provide business development assistance to manufacturing businesses in jeopardy, challenged by foreign competition, with the application fo the North American Free Trade Act (NAFTA) or foreign labor alternatives.

Work in cooperation with local organizations or government units concerned with manufacturing issues such as National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnership (MEP) Program.

MNSBDCs monitor the developments of the local manufacturing sector to better modify their services to fit the business community needs. Some examples of this assessment and exchange of information are:

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

76

SOUTHWEST

MNSBDCs work to provide business development assistance to manufacturing businesses in jeopardy or may be facing challenges of foreign competition and the application of North American Free Trade Act (NAFTA) or foreign labor alternatives.

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

MNSBDCs have collaborated with local organizations or government units concerned with manufacturing issues. Some examples are:

BEMIDJI

BRAINERD

DULUTH

77

MOORHEAD

REGION NINE

ROCHESTER

ST. CLOUD

ST. THOMAS

SOUTHWEST

78

2000 ONLINE ACTIVITY

PLANNED ACTIVITIES

The SBDCs will look for ways to utilize online technology to enhance the delivery of business development services:

Provide online counseling and training options to the business community.

Utilize the Internet to inform the business community about SBDC services and business opportunities or to enhance the delivery of SBDC services.

Utilize online survey tools as needed to analyze the development needs of the business community.

Utilize electronic technology for registration of clients, training of participants, and scheduling of meetings as needed.

MNSBDC has begun to use web-based technology to promote services, increase administrative efficiencies and provide learning opportunities for their clients. Although limited currently, the MNSBDC recognizes the benefits of using technology to further reach members of the state’s business community. The lead office is in the processes of assessing a benchmark where the regional center’s current use of Internet technology exists and where improvements can be made.

Examples of current utilization of technology are:

BEMIDJI

BRAINERD

DULUTH

MOORHEAD

REGION NINE

ROCHESTER

79

ST. CLOUD

ST. THOMAS

SOUTHWEST

80

APPENDIX A

Summary of SBA Quarterly Case Report, January 1 through June 30, 2005..................

Summary of SBA Quarterly Training Report, January 1 through June 30, 2005............

81

SUMMARY OF SBA QUARTERLY CASE REPORT

82

ITEMSBA MIS

REPORT Q1SBA MIS

REPORT Q2YTD

Reported6 Total Number of Cases 1,257 857 2,1147 Total Hours on Cases (excluding travel) 8,396.00 8,650.50 17,046.508 Hours Per Case 6.68 10.09 8.06

A. TYPE OF BUSINESS9 Retail 148 64 212

10 Service 358 243 60111 Wholesale 22 14 3612 Manufacturing 119 81 20013 Construction 41 36 7714 Not in Business 569 419 988

14a No Response 0 0 0B. BUSINESS OWNERSHIP/GENDER

15 Male 625 427 1,05216 Female 425 291 71617 Male/Female 207 139 346

17a No Response 0 0 0C. VETERAN STATUS

18 Veteran 103 61 16419 Service Disabled Vets 11 12 2320 Disabled Veteran 11 12 23

20a No Response 0 0 0D. SBA CLIENT

21 Borrower 6 9 1522 Applicant 18 7 2523 8(a) Client 2 1 324 COC 2 0 225 Surety Bond 0 0 0

25a No Response 0 0 0E. ETHNIC BACKGROUND -RACE

26 American Indian or Alaskan Native 22 10 3227 Asian 18 18 3628 Black or African 25 36 6129 White 1,187 792 1,97930 Native Hawaiian/Pacific Islander 5 1 6

30a No Response 0 0 0F. ETHNICITY

31 Hispanic 21 15 3632 Not Hispanic 1,236 842 2,078

32a No Response 0 0 0G. AREAS OF COUNSELING

33 Business Startup/Acquisition 715 553 1,26834 Source of Capital 200 165 36535 Marketing/Sales 281 184 46536 Govt. Procurement 5 2 737 Accounting & Records 68 57 12538 Financial Analysis/Cost Control 167 124 29139 Inventory Control 1 2 340 Engineering R&D 8 14 2241 Personnel 13 23 3642 Computer Systems 7 3 1043 International Trade 1 5 644 Business Liquidation/Sales 17 14 3145 Technology 92 69 161

45a No Response 0 0 0H. WELFARE-TO-WORK

46 AFDC 0 0 047 TANF 0 0 0

83

SUMMARY OF SBA QUARTERLY TRAINING REPORT

84

ITEMSBA MIS

REPORT Q1SBA MIS

REPORT Q2YTD

Reported4 Number of Units 109 155 2645 Number of Attendees 934 2,049 2,9836 Training Number of Hours 3,418 -2,944 474

II. NUMBER OF ATTENDEES7 Business 337 954 1,2918 Minorities 15 83 989 Women 537 833 1,370

10 Veterans 23 77 10011 Service Disabled Veterans 2 22 2412 Disabled Veterans 2 22 2413 SBA Client 0 0 014 International Trade 0 0 015 No Response 0 0 0

III. TRAINING TOPIC16 Pre-Business Plans 18 24 4217 Managing a Business 4 22 2618 Business Plan 5 6 1119 Managing Employee 0 5 520 Marketing/Sales 2 11 1321 Customer Relations 0 3 322 Accounting/Budget 6 9 1523 Cash Flow Management 3 1 424 Tax Planning 6 5 1125 Legal Issues 0 2 226 Procurement/Purchasing 8 3 1127 International Trade 0 1 128 Computer in Small Business 57 59 11629 Rural Business Development 0 2 230 Women Owned Businesses 0 0 031 Veteran Outreach Conference 0 0 032 Technology 0 1 133 Other 0 1 134 No Response 0 0 0

IV. RESOURCES PARTCIPATING35 SCORE 5 64 6936 SBDC 104 155 25937 Other - College/University 91 132 22338 Jr./Community College 0 0 039 Voc Ed/Tech Schools 0 0 040 Chamber of Commerce 3 1 441 Trade/Professional Association 0 0 042 Government Agency 13 54 6743 For Profit Organization 1 3 444 SBA Only 2 56 5845 No Response 0 0 0

V. PROGRAM FORMAT46 Pre-Business Workshop 23 18 4147 Conferences 80 131 21148 Course 6 6 1249 TV/Media 0 0 050 No Response 0 0 0

VI. UNIT HISTORY51 New 60 69 12952 Ongoing 49 86 135

52a No Response 0 0 0VII. TOTAL GROSS FEE INCOME $36,623 $35,587 $72,210

53a Full Fee (Fees) $35,398 $32,807 $68,20553b Full Fee Attendees 635 697 1,33254a Discounted (Fees) $1,225 $2,780 $4,00554b Discount Fee Attendees 63 144 207

55 No Fee Paid 263 1,251 1,514VII. FEE DISPOSITION

56 SBA $0 $0 $057 SBDC $2,815 $5,736 $8,55158 SCORE $765 $1,340 $2,10559 Participating Resources $33,043 $28,511 $61,554

85

APPENDIX B

Form SF 269, Financial Status Report.............................................................................

SBA Form 2113, Program Income Report......................................................................

Schedule of Indirect Costs...............................................................................................

Form SF 272, Federal Cash Transactions Report............................................................

86

INSERT SBA FORM 269, FINANCIAL STATUS REPORT

87

Ledger Account Number SBA Funds Cash Match In-Kind Match Indirect Match300 110 1515 SG05 $0.00 $0.00 $0.00 $0.00100 110 1515 SG05 $0.00 $135,521.62 $0.00 $0.00

Total Lead Center Disbursements $0.00 $135,521.62 $0.00 $0.00

Service Center Ledger Account Number SBA Funds Cash Match In-Kind Match Indirect MatchBemidji SBDC-05-0009-S-FY05 $15,350.65 $9,550.42 $0.00 $5,030.02Brainerd SBDC-05-0001-S-FY05 $69,145.38 $19,605.85 $0.00 $21,300.30Duluth SBDC-05-0002-S-FY05 $0.00 $92,899.97 $0.00 $22,929.44Moorhead SBDC-05-0003-S-FY05 $69,785.88 $51,418.61 $0.00 $23,007.27Region Nine (Mankato) SBDC-05-0004-S-FY05 $24,900.00 $17,450.00 $0.00 $7,449.00Rochester SBDC-05-0005-S-FY05 $58,301.39 $28,799.86 $0.00 $20,904.30St. Cloud SBDC-05-0006-S-FY05 $58,677.72 $32,559.45 $0.00 $27,371.15St. Thomas (Twin Cities) SBDC-05-0007-S-FY05 $42,775.70 $24,768.88 $0.00 $16,190.36Southwest (Marshall) SBDC-05-0008-S-FY05 $95,678.47 $14,971.12 $0.00 $26,434.08Total Service Center Disbursements $434,615.19 $292,024.16 $0.00 $170,615.92

Total Lead Center and Service Center Disbursement $434,615.19 $427,545.78 $0.00 $170,615.92

SF 269 Line Items (taken from SF 269)Item 10j $434,615.19 TRUEItem 10h $427,545.78 TRUEItem 10e $0.00 TRUEItem 10f $170,615.92 TRUE

FINANCIAL STATUS REPORT (Form 269) SUPPORT

Lead Center Disbursements

Service Center Disbursements

SBA Funds ($)Cash Match ($)In-Kind Match ($)Waived Indirect Costs ($)

Cooperative Agreement 5-603001-Z-0024-16 (CY 2005 Funding)

88

SBA FORM 2113, PROGRAM INCOME REPORT

1) $59,5232)

$0$0$0$0$0

Subtotal Other Income $0$0

3)

$0$0$0$0$0$0$0

Subtotal Other Expenses $0$0

4) $05) $59,523

6)

Net Program Income Carried Forward from Prior Year(s)

Attachment to SF 269

PROGRAM INCOME REPORT

HOST INSTITUTION: MN Dept. of Employement and Economic Development Period: 1/1/05 - 6/30/05

Current Year Gross Program IncomeSource

TrainingSale of Books, etc.AdvertisingResearch WorkTrade ShowsOther (Describe)

Total Current Year Program IncomeCurrent Year Program Income Expenditures

Expense CategoryPersonnelFringeTravelEquipmentSuppliesContractualConsultantOther (Describe)

Current Year Net Income (2 - 3)Net Program Income Carried Forward to Following Year (1 + 4)

Total Current Year Expenditures

SBA Form 2113 (6-99)

Narrative description of how program income was used to further program objectives.

I certify that to the best of my knowledge and belief this report is correct and complete and that all disbursements have been made in accordance with current SBA requirements. I further certify that this institution maintains working papers supporting these figures.

Date

Program income was expended for the purposes described above to expand client service and augment the SBDC budget.

Name and Title

89

SCHEDULE OF INDIRECT COSTS

Name of SiteAgreement

Period Rate (%) Method of Allocation Base ($)Total Indirect Cost

($)Amt. Reimb. By Fed. Funds ($)

Amount Waived ($)

Amt. Used as non-cash match ($)

Indirect Cost Check Figure Test

Bemidji State University1/1/01 -

6/30/04 or until amended

20.2%

Total modified direct cost excluding equipment and rental costs, and portions of subcontracts in excess of $25,000.

$24,901.07 $5,030.02 $0.00 $5,030.02 $5,030.02 $5,030.02 TRUE

Central Lakes College - Brainerd

1/1/05 - 12/31/07 24.0%


$50,456.23 $12,109.50 $0.00 $12,109.50 $12,109.50 $21,300.30 FALSE

University of Minnesota Duluth

7/1/99 - 6/30/03 or until

amended32.0%


$74,529.49 $22,929.44 $0.00 $22,929.44 $22,929.44 $22,929.44 TRUE

Minnesota State University Moorhead

7/1/03 - 6/30/07 or until

amended42.0%

Direct salaries and wages including all fringe benefits. $54,779.23 $23,007.28 $0.00 $23,007.28 $23,007.28 $23,007.27 FALSE

Region Nine Development Commission - Mankato

7/1/04 - 6/30/05 21.0%

Total direct cost excluding contractual, consultant and office space.

$88,723.81 $18,632.00 $0.00 $18,632.00 $18,632.00 $7,449.00 FALSE

Rochester Community and Technical College

1/1/05 - 12/31/07

24.0%


$74,688.75 $17,925.30 $0.00 $17,925.30 $17,925.30 $20,904.30 FALSE

St. Cloud State University 7/1/03 - 6/30/07

30.0%

Total direct cost excluding equipment and rental costs, and portions of subcontracts in excess of $25,000.

$91,237.17 $27,371.15 $0.00 $27,371.15 $27,371.15 $27,371.15 TRUE

University of St. Thomas7/1/01 -

6/30/05 or until amended

30.0%


$26,109.73 $7,832.92 $0.00 $7,832.92 $7,832.92 $16,190.36 FALSE

Southwest Minnesota State University

1/1/05 - 12/31/07 24.0%


$64,193.34 $15,406.40 $0.00 $15,406.40 $15,406.40 $26,434.08 FALSE

$549,618.82 $150,244.01 $0.00 $150,244.01 $150,244.01 $170,615.92 FALSETotal

SCHEDULE OF INDIRECT COST - MINNESOTA SBDC

January 1 - June 30, 2005Cooperative Agreement 5-603001-Z-0024-16 (CY 2005 Funding)

90

INSERT FORM SF 272, FEDERAL CASH TRANSACTIONS REPORT

91

Documents

MINNESOTA - SBDCNet€¦ · Web viewST. CLOUD ST. THOMAS SOUTHWEST 2000 Online Activity planned activities The SBDCs will look for ways to utilize online technology to enhance the