Shows how small business can leverage government programs

1. Using Government Incentives to Grow
Your Company
Presented To: NAME THE COMPANY
By
Bruce Dobb & Mario Padilla
Concerned Capital
633 West 5th Street, Suite 2800, Los Angeles, CA 90071
Phone: 213 223 2009 Fax: 213 481 8149
concernedcapital@sbcglobal.net

2. Background
Field of economic After the Northridge This recession has Without
development is when Earthquake – SBA turned California Government
government creates disaster loans helped into a “Disaster Area” Intervention the
or saves private rebuild the Valley – one of nation’s Southern California
sector jobs three highest economy will not
unemployment areas come back
2 www.concernedcapital.org

3. What Concerned Capital Does
We’re a bridge between the public sector and
private companies seeking to use government
incentives
Help the owner figure out the strategy that
fits his/her needs for government subsidies
Use full range of incentives – loans, tax
credits, site relocation incentives, job training
and workforce recruitment
3 www.concernedcapital.org

4. Incentives Based on Location
 California Enterprise Zone
-Hiring Tax Credit
-Sales & Use Tax Credit
-Net Interest Deduction for Lenders
 Federal HUD/IRS Empowerment Zone Incentives
 Hiring Tax Credits
 Accelerated Depreciation of Asset
4 www.concernedcapital.org

5. Non-traditional Financing That
Makes Deals Work
 No down payment
US Dept. of Commerce
 Low interest rate
 Long repayment terms New Markets Tax Credit
 No points or fees Redevelopment Authority
 Some or all of the above
SBA
apply
Tax Exempt Financing
5 www.concernedcapital.org

6. Creating or Using Renewable Energy
Sources
 Electric utility direct loan programs
 Tax credits and rebates
 Government procurement set-asides
 Grants
 Site assistance and subsidies
6 www.concernedcapital.org

7. Workforce Training
Recovery Act Programs Nationwide:
1) From Workforce Investment Act (WIA) Adult program ($500 million)
2) Dislocated worker program ($1,250 million)
3) Youth program ($1,200 million)
4) Handicap funding ($150 million)
5) Reemployment Services ($250 million)
6) Worker training in growth sectors ($750 million)
California receives large share of these funds based on need and
population
Incentives as high as $ 5,150 per employee hired to compensate employer
for time off needed for job training
7 www.concernedcapital.org

8. Success Story # 1
Computer co- Devised Received $ .5
Cut energy
location energy saving million from
costs by 50%
company plan to keep City of LA to
in first year of
needed to servers from build out
operation
expand over heating leaseholds
8 www.concernedcapital.org

9. Success Story #2
Steel Distributor seeking to create 75
jobs and diversify business by
manufacturing a product
Launched
Identified
company
surplus
with hiring
building
tax credits
owned by
and training
City
dollars
Floated a
long-term
$ 2 million
bond for
leaseholds
9 www.concernedcapital.org

10. A Success Story # 3
45 year old LA mail order company with two aging owners who couldn’t sell
for 5 years – dozens of lookers
Company had sold its real estate and saddled with debt and negative earnings
But had provided $ 350,000 per year compensation to owners for 10 years
Successfully sold to management in 3 months
Saved 60 jobs and retained customer base
10 www.concernedcapital.org

11. Maximizing Incentives & Subsidies
1st priority –
business plan
requirements
2nd priority -
identify affordable
financing
3rd priority –
maximize all
incentives
11 www.concernedcapital.org

12. We’re Results Oriented
Have the
credentials & Know the
experience to government
get the job officials
done
Have the Work for you
information directly
12 www.concernedcapital.org

13. Getting Started
Shop to
Identify options
Create plan maximize
and incentives
objectives
13 www.concernedcapital.org