What Happened?
The U.S. Small Business Administration (SBA) has deployed its Emerging Leaders Initiative for 2015. The program offers federal training for business executives stemming from disadvantaged communities.
Goal
The SBA 2015 Emerging Leaders Initiative provides business executives with resources to build sustainable businesses and promote economic development in historically challenged urban communities. The training program offers:
- Organizational framework
- Resource network
- Motivation and guidance
Once the training is complete, the new business leaders are better equipped to generate new jobs, attract investors and sustain business growth in their targeted communities.
Since its initial launch, the SBA Emerging Leaders Initiative has:
- Helped more than 2,400 small businesses sustain growth
- Generated 2,000 new full-time positions
- Connected participants to more than $73 million in new financing
- Secured $1 billion in federal, state and local contracts
A survey of past participants in the initiative revealed 62 percent have enjoyed an increase in revenue since graduating, while 70 percent reported maintaining or creating new jobs in their communities.
How It Works
During a seven-month training period, participants of the Emerging Leaders Initiative have the opportunity to:
- Work with mentors in their industries
- Attend specialized workshops
- Connect with peers, city leaders and the financial community
The initiative is centered on a research-based curriculum that guide participants on best practices for development and expansion strategies such as acquiring new capital and securing government contracts. Because small businesses are key to economic sustainability, the SBA created the program to stimulate job growth nationwide.
South Side Microlending
The U.S. Small Business Administration is also offering microlender services in struggling communities through the Emerging Leaders Initiative. Chicago Neighborhood Initiatives is designed to provide the businesses in city’s South Side neighborhood with access to capital for growth and development. The SBA and city of Chicago are investing more than $750,000 in small business funding that aims to quadruple the neighborhood’s existing capacity to finance and counsel small businesses and startups.
Chicago Neighborhood Initiatives is teaming up with the SBA network to access $750,000 in low interest capital from the federal administration. Chicago Neighborhood Initiatives will then use the funding to support and grow small businesses in the underserved community.
The SBA’s microloan program offers loans up to $50,000 for small businesses and startups. These loans are provided to intermediary lenders from community based, nonprofit organizations that help local economies grow.
Chicago Neighborhood Initiatives is a community-based development organization designed on strengthening low- to moderate-income communities through collaboration efforts with neighborhood stakeholders. The nonprofit focuses on:
- Large scale commercial real estate development
- Residential neighborhood preservation
- New Markets Tax Credits deployment
- Microlending
Chicago Neighborhood Initiatives works with the Chicago Microlending Institute to make targeted loans of up to $25,000 small businesses and startups. These loans are used for a variety of purposes such as:
- Purchase new equipment
- Fund inventory replenishment
- Install a security system
- Acquire a business license
- Invest in vehicles and uniforms
Chicago Neighborhood Initiatives has distributed more than $1.6 million in loans to 179 small businesses since its launch in late 2012.
Make The Businesses Grow
Gov1 has followed a growing number of local initiatives to spur economic development through financial aid or incentives.