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SSBCI, Rural businesses are particularly challenged by sparse resource…

- - - - build on strengths,
      - bridge gaps, and
      - “muscle up” existing entrepreneurial ecosystems.
  - - - The SSBCI TA funding allocated by Treasury is unfortunately insufficient to support the needs of TA providers and small businesses, across the state. One-on-one, high touch delivery costs more per business (through RFI responses solicited by the MSF in late 2021, key Michigan stakeholders have cited an average of $2,500 to $5,000 per business, according to the breadth and depth of technical assistance needed by the business owner) and requires more time for businesses to meet certain sustainability or growth milestones.
      - The Technical Assistance responses, alone, expressed a need for over $73 million in funding.
        
        vs an alloation of $5.2M 14X less thatn 10% of need (6.9%)
      - Private foundation and philanthropy currently help fund these initiatives, however their support is typically limited to specific regions or geographies and therefore cannot support the statewide strategic accessibility and inclusion efforts of the MSF. This geographic focus often leaves large regions, particularly rural areas, in Michigan under resourced.
      - Initial TA allocations to states were insufficient to support robust services over the full program period.
      - The initial allocation amounts create a virtual certainty that jurisdictions have submitted proposals that: do not address all of TA needs they have identified in their regions; address needs for less time than those needs will exist; or, both.
    - - We have seen that rural entrepreneurs struggle to obtain specialized TA geared to their
        industry and business model.
- - - - Attract more SEDI entrepreneurs to traditional programs
        
        Deliberately focus on reaching and scaling underserved entrepreneurs
        
        Enhance InBIA course offerings DEI and Access to Capital for entrepreneurs
        
        to be effective, these programs must establish local distribution capacity.
        
        Need to get more EOC into programs that will be the intermeidary for SSBIC - help with outreach
        
        Addressing these barriers requires the delivery of technical assistance through anchor institutions and non-traditional partnerships that leverage rural community assets.
        
        services that supports the delivery of culturally informed and linguistically accessible TA to support minority-owned businesses.
      - Bringing economies of scale and scope to process that is very localized and sector specfici
        
        How can we use data and economies of scale to better meet SSBCI goals of lverage and SEDI VSP
        
        Sector focused approached
      - as organizations serving specific sectors of small businesses have deep
        relationships and understanding of the capital needs of those businesses.
      - ESOs who may
        have legal, accounting, and financial advisory services in-house, as they are best positioned
        to understand the needs of the local communities in which they serve.
      - Increase the capital fundamentals of ESOs
        
        Convneing specifically focused on access to capital
        
        Improve ability to provide capital readiness assessments for clients
        
        Help SSBCI funds find sources of deal flow Local leaders should showcase their work and potential capacity to states. expanding impact report to provide info at state level on metrics to intermediaries
        
        Increase awareness and familiarity with innovative products
        
        Our goal is to help diverse founders and funders understand the breadth of resources, details of particular types of innovative models, and the best ways to support inclusive entrepreneurship.
        
        Innovative financing products
        
        Employee Ownership,
        
        Alternative Underwriting,
        
        Profit & Income Share,
        
        Redeemable Equity,
        
        Revenue Based Loans,
        
        and Supply Chain Finance.
        
        state leaders can identify opportunities to implement capital products that better serve sectors with high representation of Black and Brown businesses.
        
        Helping entrepreneurs determine types of financing and investors to pursue
        
        Enhance InBIA course offerings DEI and Access to Capital for entrepreneurs
      - Exchange of best practices amongst Tas
        
        help scale innovative financing models that can serve a broad mix of small businesses and entrepreneurs as the pandemic lifts and recovery begins.
        
        xThese strategies are promising at a local level, but have not yet reached scale at a national level.
        
        allowing SSBCI TA resources to support multi-faceted approaches that increase the uptake of SSBCI capital products within historically underserved populations and communities.
        
        Community of Practice: the project will convene a group of practitioners and thought leaders to offer and develop ground-tested best practices from across the country.
      - Virtual programming for InBIA members that they can deliver directly to their entreprneurs in capital raising
  - - - Connecting National and Innovatve funders to InBIA Community
        
        Showcasing deal via forum at ICBI37
      - Approached to connect investors to ESO in key sectors that support entrepreneurs of color
      - to widen avenues for sidelined private capital to flow towards inclusive uses through
      - creating deal flow for investors national investors as co-investor and follow -on
    - - SSBCI can leverage the billions in corporate, philanthropic, and other institutional commitments made towards redressing racial inequality over the past year.
      - coordinating across public, private, and social sector organizations to develop and deploy products that solve challenges in getting resources where they are most needed and drive towards outcomes for meaningful action.
      - incentives for private sector and nonprofit partnerships to increase the amount of technical assistance available to businesses, especially in underserved communities.
      - provide private sector and philanthropic partners with rigorous guidance on where private investment, technology support, and human capital development can generate the greatest impact
      - the reach and impact of federal investments are maximized when they engage the full range of institutions that serve small businesses and match them to the services, customers and capital they need to succeed.
    - - Strategies to help businesses with customer development such as efforts that help minority-owned businesses to supply anchor institutions (eds, meds, and feds) in American communities.
  - - - State Cohort: working directly with state administrators and capital providers in four states, we’re learning best practices, challenges, and potential for capital innovation.
      - Systems Change: toggling between state-level practitioners and national-level thought leaders, consolidate and publish our recommendations for innovative products, sources of capital, and delivery systems as models for practitioner implementation and broader institutional reform
      - Potential outputs
        
        Real Deals Playbooks: resources providing capital providers details on innovative products and funds
        
        Future State Thinking ecosystem newsletter: a 12-15 page report outlining models and reforms for a more integrated and inclusive small business support system
        
        Exemplary Entrepreneurs: case studies of enterprises that capitalized on their SSBCI investment, illustrating the program at its best
        
        Network: the Community of Practice and other partners (Aspen) to help distribute findings