Posted by William Mullane | May 29, 2014
TechHelp has always followed a “No Wrong Door” policy with our clients in regards to the partners and affiliates with whom we do business. We ALWAYS do our best to line our clients up with the right resource…EVEN IF THAT IS NOT US. On this page, we have compiled a list of resources that can be helpful to Idaho manufacturers, processors and inventors. Please feel free to send comments or suggestions regarding this list to TechHelp at firstname.lastname@example.org.
Very few grants are available to start or expand a for-profit business unless you have invented a new technology. Most grants are available to non-profit and community organizations to expand their work or to fund special projects and activities.
Many grants conferences and books are scams. They say there is free money, and there is, but not for a typical for-profit business. For information on a national grant scam that has been around for years, visit this web page to find an article from the Consumer Fraud Reporting website. You do not need to purchase books or pay for help to locate legitimate grant opportunities. The information is available for free on the Internet and from your local Small Business Development Center or SCORE office.
- Idaho Global Entrepreneurial Mission (IGEM): In 2012, IGEM awarded $5 million in state funds: $1M for start-up business grants to the Idaho Commerce, $2M to the Center for Advanced Energy Studies, and $2M to Idaho’s three research universities.
More Info here.
- Workforce Development Training Funds (WDTF): WDTF can reimburse employee training costs to eligible companies that are bringing jobs to Idaho, adding jobs through expansion or upgrading skills of current workers who are at risk of being permanently laid off. The fund is financed by employers through an offset to the unemployment insurance tax.
More Info Here.
- State Trade & Export Promotion (STEP): These grants are a tremendous opportunity for Idaho companies in any industry to assist with export market development and promotion activities. Businesses looking to increase their exports, find new markets, or get involved in exporting for the first time are encouraged to apply.
More Info Here
- Grants are available on a competitive basis to companies who meet the small business standards as set by the SBA. Federal Fiscal Year 2014 appropriation for the State Trade and Export Promotion (STEP) Grant Program funded in part through a cooperative agreement with the U.S. Small Business Administration (SBA) is $8 million. This amount is considerably less than appropriations for year one and two at $30 million in each year of the first two years of the three-year pilot program. Even though competition will be fierce, we are confident we will be successful applicants and have submitted what we believe will be a winning proposal. We expect Notification of Awards to be announced between late August and early September.In year two of the STEP program, the Idaho Department of Commerce awarded 89 grants to 68 small businesses. While the Idaho companies that received these awards are still fulfilling the requirements of their grants, over $12 million in immediate sales have resulted from year two of STEP grant funding. The total amount awarded in year two to Idaho through this program was $405,128, and it made a significant difference to our Idaho Small Business exporting community.
- SBIR/STTR Grants: With few exceptions, most of the grants available to for-profit start-up businesses are SBIR and STTR grants (Small Business Innovation Research and Small Business Technology Research). If you have invented an innovative product that will serve the national interest, you may qualify for an SBIR or an STTR grant to help develop it. Grants are offered by 12 federal agencies through a competitive process. Information is available on the following websites:
- Small Business Administration SBIR Program – http://www.sba.gov/content/small-business-innovation-research-program-sbir andhttp://www.sba.gov/content/research-grants-small-businesses
- SBIR.gov – http://www.sbir.gov/
- Grants for Innovation: If you own an existing for-profit business (not a start-up) that is engaged in the development of new technologies or processes or your business uses natural resources in an innovative way, you may qualify for a grant to develop your technology. To find grant opportunities, see the following:
- Catalog of Federal Domestic Assistance – https://www.cfda.gov
- Grants.gov – http://www.grants.gov
- U.S. Department of Agriculture Rural Development – grants for special business activities in rural communities –http://www.rurdev.usda.gov/RD_Grants.html
- U.S. Department of Energy – http://science.energy.gov/grants/
- U.S. Department of Justice – http://www.justice.gov/business/
- National Institute of Health – http://grants.nih.gov/grants/grant_basics.htm
- National Aeronautics and Space Administration (NASA) – http://www.nasa.gov/offices/oct/home/index.html andhttp://code210.gsfc.nasa.gov/grants/grants.htm.
- Made in America Grants: If your product is made in America and you have problems competing with foreign businesses, you may be eligible for assistance through the Northwest Trade Adjustment Assistance Center, http://www.nwtaac.org/.
- Wayne Brown Institute – www.venturecapital.org
- Idaho Non-profit Center – http://www.idahononprofits.org/
- The Foundation Center – http://www.foundationcenter.org
- Foundations Online – http://www.foundations.org
Other Programs: Special business assistance programs for women, minorities, veterans, the disabled, and others are available, but these are usually for low-interest loans, government contracting opportunities, and other types of assistance. They are rarely for grants.
Grants for Women: Zion’s Bank offers annual “Smart Women Smart Money” grants. The competitive grants are for $3,000 or less for special projects in the following areas:
- Community development
- Continuing education and teacher support
- Child and elder care
- Health and human services
- Arts and culture
For information, see www.zionsbank.com/learning-center/swsm-grant.jsp.
Crowdfunding is a financing option designed to quickly raise funds by securing many small donations from many contributors. The most common type of crowdfunding involves soliciting donations from the public to start a business or launch a new product. Donors receive a specialty gift for donating. Two popular crowdfunding donation websites are Kickstarter and IndieGoGo.
About 30 percent of businesses meet their funding goal. If they don’t, the business receives no money and the funds that were raised are returned to the donors. Crowdfunding is most successful when a business needs to raise a modest amount of money in a short time. The median donation is $25 and the average donation is $70.
The most easily funded products are games, art, books, music, food, and fashion and design. Crowdfunding is not often successful for service businesses, websites, app development and any other business not offering a tangible product.Equity funding and debt funding are two other types of crowdfunding. Equity funding involves selling small amounts of equity in a business to a large network of purchasers. Crowdfunder is an example of equity crowdfunding.Debt funding involves providing microloans, usually to individuals in emerging nations. Kiva is an example of debt crowdfunding.
Venture Capital: Finding venture capital may seem like the answer to many small business funding needs, and it may be if you have a solid business plan, a track record in your industry or a related one, a qualified management team, and you don’t mind giving up a piece of your business and having someone watching over your shoulder. Most venture capital firms invest several million dollars in the companies they fund and in return expect a management position within the company or a seat on the board of directors.To find a venture capitalist, ask your banker, attorney, or accountant for a recommendation to a company that specializes in your field and then arrange an introduction. (Most VCs don’t like cold calls.) Most venture capitalists prefer companies in rapidly growing industries, such as technology or bio-technology. Even then, only a small percentage of businesses (less than 1%) qualify for funding.Venture capital funding is a fertile field for scam artists. Before engaging in business, call the chamber of commerce and the Better Business Bureau in the community where the company is located and ask about them. Contact the Attorney General’s office in the state in which the business is located and ask if complaints have been filed against them.
Angel Investors: If your business is in the early start-up phase or you don’t need enough money to qualify for venture capital financing, seeking an angel investor may be more appropriate. Angel investors are wealthy individuals or groups that provide smaller amounts of money than venture capital firms. Like venture capitalists, angel investors usually prefer to invest in rapidly growing small businesses that will provide a high rate of investment return in a short time. They will expect a seat on the board and may also take a management position within the business.Your banker, attorney, or CPA may be able to arrange an introduction to an angel investor. Like venture capitalists, angel investors don’t usually like cold calls, and only a small percentage of businesses qualify for funding (less than one in 500).An online Venture/Angel Capital Resource Directory is found at http://www.vfinance.com. The site matches investors with businesses seeking venture or angel capital. To find venture capital and angel investors interested in investing in Idaho businesses, do a search of theResource Wizard.For more information on venture and angel capital funding, visit the Small Business Administration website at http://www.sba.gov/content/venture-capital.
Tax Incentives: Your business may qualify for tax incentives (tax credits) for certain business activities, such as creating new jobs in an economically depressed area, hiring the long-term unemployed, or bringing broadband to rural communities. Incentives are offered at both the state and federal levels. State programs are listed on the Idaho Department of Commerce website at http://commerce.idaho.gov/incentives-and-financing. To find federal tax incentives, make a search on the Internal Revenue Service website at http://www.irs.gov/Credits-&-Deductions.
Agriculture Loans and Grants: The Idaho Department of Agriculture offers several financial programs. Seehttp://www.agri.idaho.gov/Categories/Marketing/financialassistance.php
SCOR Finance Program: The Small Business Offering Regulations program is administered by the Idaho Department of Finance. The program enables businesses to accept investment funds from qualified Idaho investors, who receive dividends if the business is successful. For information, contact the Department of Finance at finance.idaho.gov or see
Energy Conservation: Loans and tax incentives for energy conservation programs are offered through the Idaho Office of Energy Resources at http://www.energy.idaho.gov/financialassistance/.
ITC – Idaho Technology Council
TechHelp – Manufacturing Extension Partnership Center, EDA University Center
Idaho SBDC – Small Business Development Center
Professional, private consultants
SWI-MA – Southwest Idaho Manufacturers’ Alliance
NIMA – Northwest Intermountain Manufacturers’ Association
IDA – Idaho Aerospace Alliance
IFAMA – Idaho Firearms Accessories Manufacturers Association
IMPA – Idaho Milk Processors’ Association
Idaho Departments of
IEDA – Idaho Economic Development Associations
Regional economic development organizations
County ED organizations.
City ED organizations
BVEP – Boise Valley Economic Partnership
Boise State University – Economic Development
University of Idaho – Economic Development
Idaho State University – Economic Development
Northern Idaho College
College of Southern Idaho
College of Western Idaho
UDI – United Dairymen of Idaho
IDA – Idaho Dairymen’s Association
IDPC – Idaho Dairy Products Commission
Idaho Potato Commission
Food Producers of Idaho
Idaho Forest Products Commission
Idaho Wine Commission
US Dry Pea & Lentil Council
Northwest Food Processors Association
AMN – American Manufacturer Network
IDEC – Idaho District Export Council
Surface Mount Technology Association