Purpose

CAP Services has established a broad range of community and economic development efforts to help low-income individuals increase their self-sufficiency and to benefit the communities in which they live.

Description

CAP Services has been involved with Business Development Services since 1987 (en Español).  The agency offers:

• Business Planning Services and On-Line Business Assistance
• Business Lending Services
• Affordable commercial, manufacturing and warehouse space
• Post start-up support

A Jobs & Business Development Coordinator provides initial support for individuals interested in starting their own business.  Help is given to define goals, determine business strategies, develop a marketing plan and create a realistic financial plan.  Financing options are explored to develop one comprehensive loan package.  This includes the possibility of support from CAP Service’s lending subsidiary, Community Assets for People LLC. 

Affordable commercial, manufacturing and warehouse space is available at six facilities ranging from 4,800 – 20,000 square feet.  Deep discounts in rent are available to businesses based on the number of living-wage jobs they create.  Space can also be customized to meet the needs of a particular business with the cost amortized over the term of the lease. 

On-line technical support and resource materials are available through the Virtual Business Incubator website to provide a wealth of information for small business owners.  The site provides access to materials needed to run a small business.  Information is available related to accounting, banking/finance, insurance, legal, and marketing issues through a variety of business tools:

• Insurance Calculator
• Business Plan
• Top 10 Sales Mistakes
• Financial Statements
• Business Timeline
• Top 10 Business Mistakes
• Setting Up a Home Office
• Marketing

CAP Services administers a number of different revolving loan funds.  Individuals that are low-income can apply to the Self-Employment Program which is designed to improve access to credit.  Generally collateral and amortization terms are more flexible than those of traditional loan sources.  The second fund is for businesses starting or expanding  that comit to hiring low income individuals.  The third fund targets value-added “gazelle” businesses that are in a rapid growth mode and need financing for space, equipment or working capital.

CAP staff is knowledgeable about the guidelines and targets the applicant into the appropriate fund.  The loan fund consists of funds from public, private for-profit, private non-profit and faith-based groups and individuals. The three loans together are capitalized at more than $3.4 million and terms are based on need and the particular loan fund.  Loans range from $10,000 to $500,000.  The maximum term is seven years, the typical term is five. 

USDA Rural Development, the federal Office of Community Services, faith based groups, community foundations and lenders have invested in the fund.

Outcomes

The following case studies reflect the benefits of the CAP Services Business Development Program:

• Golden County Foods Expansion Project (case study) - Job Creation: Golden County Foods has created 76 new living-wage jobs with health care benefits and advancement opportunities and 38 were filled by low-income individuals.  Empowerment Programs: In partnership with Golden County Foods, CAP is also offering several innovative services to enhance the opportunities for success of the low-income individuals hired at the new facility - Golden County Foods website.

• Colligan’s Bakery (case study) - CAP Services staff helped develop a plan for Colligan’s to expand from primarily a retail and “convenience store” bakery into a commercial bakery with national account. To accomplish this Colligan’s leased one of CAP’s business incubators as a production facility and space from the developer for a retail outlet. The financing package included loans from CAP’s lending arm Community Assets for People for leasehold improvements, the City of Stevens Point’s revolving loan fund for moving existing equipment and buying new equipment; and from the First National Bank of Iola for working capital. CAP is also leasing the 7,344 square foot building to Colligan’s at $2.50/sq. ft. The equipment and moving expenses are proposed to be financed with the city, $100,000 at seven years at 5%.  Without CAP’s assistance, Colligan’s would have closed when their lease expired, eliminating 30 jobs in the community. In exchange for CAP’s financial and technical support, Colligan’s Bakery will create a minimum of 5 new living-wage jobs with advancement opportunities, with two of them being filled low-income individuals - Colligan's Bakery website.

Since 1988, CAP Services has assisted more than 300 entrepreneurs start or expand businesses that have created more than 534 living-wage jobs. 

In the past five years, CAP Services has facilitated the creation of 90 businesses and 114 living-wage jobs; lent entrepreneurs over $3.3 million and helped those entrepreneurs leverage an additional $9.2 million in start-up and expansion funds.