Spring Newsletter 2009
CCV News
Last Chance to Apply for Sustain Illinois Green Business Competition - Applications due April 3
CCV Year in Review 2008: Celebrating Client Successes
Prompt Electric, CCV Loan Client, Graduates to Traditional Financing
Bronzeville Coffee and Tea Completes CCV's Market and Customer Development Training Course
CCV Clients Recognized for Outstanding Achievements
CCV has Moved
Visit CCV's New Blog, Facebook Page and LinkedIn Group!
Small Business News
How the Stimulus Act Benefits Small Business
Small Business Outlook for 2009
How Important is Small Business?
Small Business Tip: When to Cut Costs and When to Spend
Small Business Events
2009 Small Business Web Development Workshop - April 17
City Treasurer's Business Plan Competition - Applications due April 22
City Treasurer's Small Business Workshops
- April 14 & April 22
Crain's Chicago Business Sixth Annual: Women Business Owners Tell All - April 28
Business Civic Leadership Center's National Conference on Corporate Community Investment - May 3 - 5
Last Chance to Apply for Sustain Illinois Green Business Competition - Applications due Friday, April 3
Sustain Illinois, Illinois' Green Business Competition, launched by the Chicago West Side Entrepreneurship Center at CCV and the Chicago Sustainable Business Alliance, is a highly selective entrepreneurial competition designed to encourage and reward companies implementing or planning sustainable products, services, or processes that have or will have a lasting economic effect on Illinois.
For the purpose of this competition, Sustainability is referred to as triple bottom line (3BL), or "people, planet, profit", or those companies that capture an expanded spectrum of blended values and criteria for measuring organizational (and societal) success: economic, ecological and social.
Six companies in each of the two tracks listed below (up to 12 companies total) will be chosen as Finalists and will have the opportunity to compete for a combined $20,000 cash prize (made possible through the Illinois Department of Commerce and Economic Opportunity). Additionally, an audience choice award will be selected during a separate fast pitch competition during the final awards reception in May during the Sustainovate conference.
- Sustainable Product or Service ($10,000 cash prize)
A company that features a sustainably based (Green/3BL) product or service that will have a lasting economic impact on the state of Illinois. - Sustainable Process ($10,000 cash prize)
A company that has adopted or is in the process of adopting significant internal sustainable processes to its business structure (3BL or ISO 14001 certification) that is having a lasting economic impact on the state of Illinois - Audience Choice Award ($2,500 cash prize)
This bonus track will be a one minute fast pitch competition which participating companies may choose to apply for in addition to one of the tracks above. The fast pitch competition will take place at the awards ceremony with the winner choosing which company they favor.
For rules, eligibility and to apply, visit the Sustain Illinois website.
CCV Year in Review 2008: Celebrating Client Successes
During a year where many small businesses faced the challenge of a struggling economy, CCV was able to help our clients access $53.7 million in resources including direct loans, loans packaged, contracts secured and matching grants for Chicago's small businesses. As a result, CCV's clients were able to create 400 jobs and retain another 456 in 2008 alone.
Of the $53.7 million leveraged to our clients:
- $11 million in loans were packaged from traditional financial institutions
- $28 million in contracts were secured from federal, state and local government as well as private corporations
- $243,000 Challenge Grants were awarded with funding from the Illinois Department of Commerce and Economic Opportunity
- $290,000 in direct CCV loans were provided through CCV's Neighborhood Transformation Loan Fund and the City of Chicago Small Business Development Fund
- $14 million in alternative resources such as grants and tax incentives were secured
- $27 million were directed to small businesses located in Chicago's low and moderate income neighborhoods
- $25 million were accessed by woman-owned businesses
- $33 million benefited minority-owned businesses
In 2008, CCV saw a 61% increase in clients and was able to meet this demand thanks to our dedicated Board and staff and the generosity of our partners. It is our belief that small businesses deserve affordable access to our services like our high quality consulting and financing. Equivalent services can cost small business owners thousands of dollars - an impracticality, especially in these times. CCV has been able to keep our services at little to no cost thanks to contributions from our friends and partners.
Join CCV in our mission to provide much needed services and access to resources by donating to CCV today.
Prompt Electric, CCV Loan Client, Graduates to Traditional Financing
Prompt Electric, a family-run electric motor business, came to CCV in 2007 as they struggled to grow their four-year old business. Although Prompt had been successful as a neighborhood business, the company was unable to secure big-dollar contracts because of an inability to stock enough inventory and supplies. Unable to access financing from a traditional bank for inventory, owner Rick Joseph turned to CCV's Neighborhood Transformation Loan Fund.
Hussain Bhanpuri and Duane Wadlington from CCV's lending department were able to work with Rick to organize Prompt's financials and financial policies as well as provide consulting on better managing their operations to prepare Prompt for a CCV loan. As a result, Prompt was approved for a $115,000 loan in January 2008. With more money for inventory, CCV's Hans Bonner was also able to help Prompt secure a five-year $2 million contract with the City of Chicago's Department of Aviation.
In December 2008, Prompt was able to 'graduate' to financing from a commercial bank and pay back CCV's loan - a true success. “CCV gave us the confidence that if we ran into any problems they would back us up,” Alvin said, “They became like a big brother to a small company.”
Learn more about CCV's Neighborhood Transformation Loan Fund by visiting CCV's website.
Bronzeville Coffee and Tea Completes CCV's Market and Customer Development Training Course
In January 2009, Bronzeville Coffee & Tea’s Richard Chalmers and Trez Pugh successfully completed CCV’s Market & Customer Development class. Throughout the class Richard and Trez focused on developing a marketing plan that would highlight Bronzeville Coffee & Tea’s community focus. As a result, BC&T has added elements in the shop that engage community members including a displayed Black Heritage catalog and an ever-changing white board that currently features BC&T’s March Madness bracket. Richard and Trez have also been initiating a more focused approach to engaging with Bronzeville’s schools, churches and police stations. With a new store opening in June 2009, Bronzeville Coffee & Tea plans on taking the marketing knowledge they gained through the class and applying it to the new location.
CCV's Market and Customer Development Training is a 4 month intensive training program to help small business owners create sales and marketing plans to more effectively reach new and existing customers. Participants work one on one with skilled marketing counselors to learn strategies and practical theories that can assist with expanding their customer base and increasing sales.
For more information on the Market and Customer Development Training, visit CCV's website or contact Doug Cannon at 312.960.0315 or dcannon@chiventures.org.
CCV Clients Recognized for Outstanding Achievements
CCV Clients, Chicago Soydairy, Weld Tech and Green Bag Lunch, were recently recognized for outstanding work in their respective industries.
Chicago Soydairy, CCV Challenge Grant recipient,
was named Company of the Year in the 7th Annual Veggie Awards by VegNews Magazine. The award commends Chicago Soydairy for their recent launch of Teese – the company’s dairy-free cheese – redesigning their website and introducing more flavors of their popular Temptation ice cream. VegNews praises Chicago Soydairy for “not only removing the barriers, but also redefining the accessibility of the veg lifestyle.” Read more about Chicago Soydairy on CCV's website.
Jesse Ibarra, of Weld Tech, Inc., was named HACIA (Hispanic American Construction Industry Association) Contractor of the Year at HACIA’s 30th Annual Awards Banquet on February 19th. HACIA recognized Jesse for the extraordinary work he has done over the years and the outstanding growth his company has achieved through his dedication, integrity and professionalism. HACIA applauds Jesse for his “promptness in completing projects coupled with [his] ability to provide a quality product [which] has set the standard for all contractors in the construction industry.” CCV helped Weld Tech, Inc. re-organize its production to be more efficient and provided him with the resources to eventually secure a $300,000 loan. Read more about Weld Tech on CCV's website.
Green Bag Lunch, CCV Challenge Grant recipient, was featured by ABC7 News for their unique program in Chicagoland schools. Green Bag Lunch offers nutritious and eco-friendly lunches to Chicago area schools and camps. Green Bag recently received a Challenge Grant from CCV to expand their marketing efforts and upgrade their current website. Check out the video below to learn more about Green Bag Lunch’s innovative program in Chicagoland schools. View the ABC7 news clip on CCV's blog.
CCV has Moved
CCV moved to our new location in the loop at the beginning of March. Since then, CCV and our clients have been enjoying close proximity to many of partners and public transportation.
Our new contact information is:
105 W Adams (entrance on Clark)
Suite 2300
Chicago, IL 60603
p 312 960 0320
f 312 960 0310
Our web and email addresses have remained the same.
www.chiventures.org
info@chiventures.org
And as always, you can keep up with CCV news and events on our blog at www.chiventures.typepad.com.
Visit CCV's New Blog, Facebook Page and LinkedIn Group!
If you haven't already, please take a minute to visit CCV's recently launched blog, Facebook page and LinkedIn group to keep our ever-growing network of clients, friends and partners informed as well as to provide a forum for exchange and feedback.
Our blog has grown to become a great resource with regularly posted news, tips and events for small business owners, as well as CCV and client news and achievements. The Facebook page and the LinkedIn group are a great way to visually see and connect with all the great individuals that support CCV in so many ways while staying informed on current CCV news.
We hope that you will take a moment to read the blog, become a fan of the Facebook page or join the LinkedIn group. We look forward to continually connecting with you - our clients, friends and partners - in new ways!
How the Stimulus Act Benefits Small Business
Written by Michael C. Majewski, CPA, Vice President Selden Fox, Ltd. and CCV Client Advisory Committee Member
Much has been discussed and written about the American Recovery and Reinvestment Act of 2009 (the stimulus package) just passed by Congress. The $800 billion act contains nearly $300 billion in tax relief benefiting individuals, business, state and local governments and promoting the conservation of energy. This summary will deal with some of the more important measures directed toward benefiting small business.
Bonus depreciation The law extends thru December 31, 2009 last years 50% first-year bonus depreciation. This bonus depreciation, which allows taxpayers to deduct half of a property’s basis, is taken on top of regular depreciation reported for the year the new property is placed in service.
Section 179 expensing This is another extension of a deduction slated to decrease in 2009. It allows small businesses to deduct up to $250,000 of the first $800,000 of new or used qualifying property placed in service this year.
Net Operating Loss (NOL) Carryback This law provides a five-year carryback of 2008 net operating losses, but only for eligible small businesses with average gross receipts of $15 million or less. The normal NOL carryback period of two years for all businesses returns for NOLs incurred in 2009.
Small business estimated taxes Many small business owners can now qualify (for 2009 only) for a lower safe harbor (penalty-proof) to avoid underpayment penalties for making estimated tax payments. That amount is now 90% of the preceding year’s tax liability instead of 100%.
Work opportunity tax credit This credit has been expanded to include two new targeted groups – unemployed veterans and disconnected youth.
Cancellation of indebtedness This law now allows certain companies or individuals who incur income because of cancellation of their debt (bond, debenture, note, certificate, etc.) to elect recognition of the income over five years beginning in 2014 if the repurchase occurs in 2009 or 2010.
Qualified small business stock Small businesses with less than $50 million in assets that conduct an active trade or business can now exclude 75% (up from 50%) of the gain from the sale of certain small business stock acquired and held for more than five years.
S Corp built–in gain period The built-in gain tax prevents regular corporations (C corps) from avoiding corporate level tax on the sale or other disposition of appreciated assets it acquired while a C corp by first converting to Subchapter S status. Since there is generally no corporate tax at the S Corp level this tactic would otherwise allow taxpayers to escape C Corp taxes. The new law temporarily shortens, from ten to seven years, the holding period for these appreciated assets. The change is intended to give shareholders more flexibility during the current economic crisis.
CCV encourages you to discuss these new regulations with your accountant to ensure you are properly taking advantage of these opportunities.
For more information on the Stimulus Act and what it means to small businesses, click here.
For more tax information for businesses, visit the Internal Revenue Services website.
Small Business Outlook for 2009
This article was originally posted on CCV's blog, check there for frequent updates on small business news and events.
Crain's author Meghan Streit takes a look at what small business should expect in 2009. Amongst her predictions:
- Access to credit and capital will continue to tighten meaning preserving cash will be more important than ever for small business owners
- More start-ups will emerge with more focused business concepts. A recent study found that 45% of today's fastest growing companies started during an economic downturn
- Competition will increase and only the fittest businesses will survive
Read more about Meghan's outlook for 2009 here.
How Important is Small Business?
This article was originally posted on CCV's blog, check there for frequent updates on small business news and events.
The answer is simple: incredibly important. As President Obama remarked recently:
“For in the end, it's businesses -- large and small -- that generate the jobs, provide the salaries, and serve as the foundation on which the American people's lives and dreams depend.”
The U.S. Small Business Administration’s website shares the facts on the size and importance of small business.
Small businesses:
- Represent 99.7% of all employer firms
- Employ half of all private sector employees
- Pay 45% of total U.S. private payroll
- Have generated 60% - 80% of net new jobs annually over the last decade
What role do women and minority entrepreneurs play in the economy?
- Of the 23 million firms in 2002, 17.8% were minority-owned:
- 6.6% were owned by Hispanic Americans
- 5.0% by African Americans
- 4.6% by Asian Americans
- 0.8% by American Indians and Alaskan Natives and
- 0.1% by Native Hawaiian and other Pacific Islanders
- In 2002, minorities owned 4.1 million firms that generated $694 billion in revenues and employed 4.8 million workers
- In 2002, 6.5 million businesses were owned by women that generated $940 billion in revenues and employed 7.1 million workers
So what does this all mean and why should you care? Well, first of all the numbers speak for themselves: small business is a huge driver of the U.S. economy. By supporting and strengthening small business you are supporting and strengthening your local economy.
Read more on CCV's Blog.
Small Business Tip: When to Cut Costs and When to Spend
This article was originally posted on CCV's blog, check there for frequent updates on small business news and events.
Two recent articles answer questions that many entrepreneurs are struggling to answer: In a down economy, where can I cut costs and where should I continue to spend? Both articles emphasize the importance of staying true to the firm’s long-term vision when making decisions on where to spend or cut dollars:
- Financing: For start-ups, experts advise that relying on friends, family and angel investors as your main sources of capital is your best route in this market. You want to find investors who are patient and supportive.
- Human Resources: The experts stress that it is critical to maintain open communication with your employees, especially if the work force has been reduced or if salary and benefits are being decreased. For companies that are looking to hire, now is an excellent time to find well-qualified candidates at rates you can afford.
- Marketing: Both articles say that most companies tend to cut marketing first when budgets need to be tightened. However, experts advise that this is a huge mistake. When business is slow, now is not the time to reduce the frequency of communication to your customers. It is important to continue to get your name out there in order to continually bring in revenue.
- Technology: Although it is smart to look for lower-cost solutions, experts warn not to downgrade any technology. It is important that businesses maintain the same level of quality service regardless of tight budgets.
- Overhead: Cutting back on frivolous or unnecessary overhead expenditures is a smart way to free up extra cash. Look for non-critical expenditures that can be eliminated that won't impact employee morale.
To read the articles in full and learn more tips on where to spend and save click below:
Recession Cost-Cutting No-Nos
Strategies: Spend or Save? How to use money in 2009
2009 Small Business Web Development Workshop - April 17
Small business owners: if you don't plan properly, building a website could cost you thousands of dollars in lost money and time. So, if you are considering how to build your website, we want you to get it right the first time. The Small Business Web Development Workshop will allow you to:
- Get a detailed overview of the entire Web development process.
- Participate in interactive Web planning sessions.
- Get one-on-one, follow-up consultations and a FREE, personalized Web site plan.
Representatives from the Chicagoland Entrepreneurial Center and Chicago Community Ventures will also be in attendance to tell you how you can apply for State of Illinois funded grants worth up to $10,000.00 towards your Web development project.
Workshop Details
Choose one of following convenient session times to fit your schedule:
Date:
April 17, 2009
8:00 a.m. - 10:00 a.m.
11:00 a.m. - 1:00 p.m.
2:00 p.m. - 4:00 p.m.
Location:
Gibson's Steakhouse & Conference Center
1028 N. Rush St.
Chicago, IL 60611
Registration:
Early Registration - (By April 3) - $75.00
Regular Registration - (After April 3) - $100.00
Visit the Small Business Web Development Workshop website to learn more.
City Treasurer's Business Plan Competition - Applications due April 22
The Chicago City Treasurer's Office recently announced the launch of the fourth annual Business Plan Competition. The competition is open to start-up and existing small businesses throughout the city. To compete for a chance to win cash for your small business, submit your two-page executive summary detailing your business and what makes it unique.
Ten finalists will be selected to submit a full business plan and present their business ideas to a panel of judges. Three winners will be announced on July 10 and will present their winning business plan at the Chicago City Treasurer's Small Business Expo on July 17. Winners will be selected based on their ability to clearly and concisely articulate their business idea, the creativity and practicability of their marketing and sales strategy, and the overall viability of their business.
First Place $5,000 * Second Place $3,500 * Third Place $1,500
For more information and rules, or to download the official Executive Summary Template, visit CCV's website.
For more information or with questions call Chicago Community Ventures at 312.960.0320 or info@chiventures.org.
The following businesses are not considered eligible for the competition: Tobacco production, Hard liquor production, Casinos or other gamble ventures, Fur production, Currency speculation, Securities investment, Speculative industries, Adult entertainment related industries.
City Treasurer's Business Planning Workshops
April 14, 6 - 8 p.m.: Business Planning Workshop at CCV
105 W Adams St, Suite 2300, Chicago
Register by calling 312.960.0320
April 22 10 - 11:30 a.m.: Mentor Forum
Location To Be Announced
Register by emailing businessplans@cityofchicago.org with subject line "One Hour Mentor"
For more information, contact CCV at 312.960.0320.
Crain's Chicago Business Sixth Annual: Women Business Owners Tell All - April 28
How to survive and thrive in a recession - advantage of a small business
Hear from a panel of women business owners share their greatest business challenges and how they tackle these during economic downturn.
Panel discussion will include:
- Growth strategy for today
- Stability key to long-term success
- Creative financing
- How to re-invent yourself
- Tapping into a global economy
When: Tuesday, April 28th, 2009 - 7:45am to 10:00am
Where: The Mid America Club- 200 East Randolph, 80th Floor - Chicago, IL 60601
Cost: Individual Tickets - $55 // New Corporate Table: $800
RSVP by Wednesday, April 22nd
For more information and to register for the workshop, visit the Crain's Chicago Business website.
CCV would like to hear what you are doing to stay competitive during these times. Let CCV and other small business owners know what actions you have taken by posting a comment on our blog.
Business Civic Leadership Center's National Conference on Corporate Community Investment - May 3 - 5
InterContinental Chicago
The U.S. Chamber of Commerce Business Civic Leadership Center is convening an unparalleled roster of leaders for an action-oriented national conference that will:
- Reframe the economic crisis and the national policies that impact communities
- Showcase the power of strategic partnerships for regional economic development
- Identify innovative, recession-busting corporate community investment strategies
- Offer unmatched networking and information-sharing opportunities
Presidents of corporate foundations and senior executives from the public, private, and nonprofit sectors will discuss how new economic realities are driving innovative investment strategies.
So, if you are seeking:
- New ideas for how corporate contributions can address today's community challenges
- Relationship-building with partners such as local chambers of commerce, government agencies, nonprofits, or other businesses
- A collaborative environment in which to examine successful corporate citizenship initiatives and set goals for future impact
- Innovative strategies that strengthen communities, foster sustainability, and bolster the bottom line
Then, register today for the 2009 National Conference on Corporate Community Investment!
CCV Board of Directors & Staff
| Board of Directors | Staff | |
| President |
Co-Presidents | |
| Torrence Moore Kiwanja Redevelopment Fund | Susan Alnaqib & Anita Hollins | |
| Vice President | Hussain Bhanpuri | |
| Kenneth McGhee City of Chicago, Dept of Children and Youth | Hans Bonner | |
| Services | Manjima Bose | |
| Treasurer |
Doug Cannon | |
| Joseph Kennedy Harris Bank | Tom Cassell | |
| Lauren Foukes | ||
| Secretary | Christyn Freemon | |
| Kimberly Richardson Westside Business Improvement Assoc. | Joshua Gutstein | |
| Mwikali Munyao | ||
| Derrick Collins J.L. Kellogg School of Management | Diane Rodak-Salinas | |
| Eric Dobyne US Dept of Commerce, Minority Business Dev Agency | Bryan Stubbs | |
| Steve Hall Charter One | Duane Wadlington | |
| Vachon Harper-Young Harris Bank | ||
| Leon Jackson Bill's Shade & Blind Service | ||
| Nissa Kochmer NLK Consulting | ||
| Jeffery Roberts JB Roberts Insurance/Allstate |
Funding Partners
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Minority Business Development Agency U.S. Dept of Commerce |
CDFI Fund, U.S. Treasury Department |  |
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Drinker Biddle Gardner Carton |  |
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Corporation for National and Community Service |  |
| Mander Foundation |  |
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