1. Rose Washington Rentie Tulsa Economic Development Corporation (918) 585-TEDC www.TEDCnet.com

3. DISCUSSION POINTS About TEDC Why Small Business Matters FORWARD

4. TEDC: Intro not-for-profit, economic development corporation publicly and privately funded progressive lending to promising businesses—WE MAKE LOANS!! serve small companies that create sustainable economic impact

5. TEDC: Overview Organized in 1979 8 employees;15 board members $4.2mm loans on Balance Sheet Manage $26mm SBA portfolio 5 years: 300 loan projects; $170mm; 3,500 jobs

6. TEDC: Qualifications Certified Community Development Financial Institution, U.S. Department of Treasury Micro Loan Intermediary, U.S. Small Business Administration Certified Development Company, U.S. Small Business Administration Loan Facilitator, Government Guaranteed Lending Programs

7. TEDC: Objectives Economic stability for communities Create or retain jobs Expand sales/payroll tax base Grow output Economic self-sufficiency Business owners (retain wealth) Employees (earn living wage, gain skills)

8. TEDC: Clients Represent most industries Positively impact workforce OR Fall outside of conventional credit standards OR Locate in target areas OR Are considered disadvantaged

9. Value of Small Business U.S. Small Business Administration Office of Advocacy, September 2009 Employ just over half of the country’s private sector workforce Hire 40 percent of high tech workers, such as scientists, engineers and computer workers Represent 97.3 percent of exporters Represent 99.7 percent of employer firms Create most innovations that come from U. S. companies

10. U.S. Business Population

11. Oklahoma Business Population

12. Tulsa County Business Population

14. Small Business Survival Rates U.S. Small Business Administration Office of Advocacy, September 2009 In 2008: 627,200 new businesses; 595,600 business closures; 43,546 bankruptcies Seven of 10 new employer firms survive at least two years; about half survive five years Findings similar across industry sectors

15. Support Solutions Extensive classroom-based training programs Mentoring and coaching Not-for-profit commercial lenders/CDFIs Government guaranteed loan programs Technical assistance programs Minority vendor programs/Procurement set-asides Incubators

16. Funding Options Grants (Let me know when you find one!) Friends, Family, Savings Investors SBA/Banks TEDC

17. FORWARD © FORWARD © is a comprehensive economic development system that uses franchising as an approach to creating business starts in targeted communities.

18. FORWARD © F RANCHISING O PPORTUNITIES R EINFORCED W ITH A SSISTANCE R EWARDS D EVELOPMENT

19. 2005 Snapshot of Franchises in OK 12,600 franchise establishments 16% of all companies with employees 146,685 jobs (275,794 jobs)* $3 billion in payroll ($7 billion)* $9.5 billion in output ($25 billion)* * direct and indirect impact

20. Why Franchising as a Strategy? Economics : job creation, sales tax generation, business growth Opportunity : minority ownership is greater among franchise businesses; single unit, multi-unit, area development, master franchisor Variety : more than 75 industries operate within franchising format Demand : many goods and services needed by public sold through franchises

21. Why Franchising as a Strategy? Cost: more affordable means of accelerating business expansion – economies of scale Access to capital: easier; because lenders perceive franchises as less risky with proven practices Credentials: pre-established; symbol of quality, consistency, service, value Support: extensive training; capacity building; in business for self, not by self

22. FORWARD © : Site I To be developed and owned by Greenwood Community Development Corporation Banfield site -- 3 acres at Peoria and Reading Streets just north of Gateway Plaza and Gateway Market funded by TEDC/CDBG Multi-level, 24,000 square feet of rentable space 2 out-parcels for private development $3mm construction costs

23. FORWARD © : The Participants Satisfactory behavior/values assessment Complete business planning course Work part-time for 1 month in like business if no industry experience Work full-time in new business Commit 7-10 years at retail site Comply with TEDC lending criteria Agree to monthly coaching, mentoring, technical assistance and fiscal oversight Commit to hiring local student as intern

24. FORWARD © : The Investment $3mm in construction costs + $250,000 average per businesses (loan, equity, some combination thereof)

26. FORWARD © : The Return 10 business starts 50 direct jobs At least $5,000,000 in direct output annually

27. FORWARD © FORWARD brings together the power of human and financial capital to help transform Tulsa’s north community into a vibrant, desirable place for people to live, work and raise families. In partnership, we can promote positive, sustainable impact through long term, geographic-specific economic development. (Franchise examples: Instant Imprints, More Space Place, Tropical Smoothie Café, UPS Store, Play-n-Trade, Flicko, party supply store, wireless store, tax center, specialty candy & gifts, casual dining restaurant, dry cleaning, clothing & accessories, etc.)