Government Funding
Small Business Innovation Research (SBIR) and Small
Business Technology Transfer (STTR) – three phased federal
funding programs specifically for small businesses to perform
R&D needed by the participating agencies.
www.sbir.gov
www.zyn.com/sbir
www.sba.gov/sbir
www.sbir.us
Enterprise Florida SBIR/STTR Phase 0 Grant
Program – provides grants of up to $3000 to support
preparation of a Phase I SBIR or STTR proposal.
www.eflorida.com/phase0
SBA 504 Loan Program – U.S. Small Business
Administration (SBA) approved loan program designed to help owners
of small and mid-size businesses purchase commercial real estate.
(Note: Over 98% of companies in Florida are viewed as “small
businesses” by the SBA.) A major benefit of the SBA 504 Loan is
that it finances as much as 90% of a borrower’s “total project
cost”, including land, acquisition/construction, equipment, soft
costs and closing costs. This, combined with longer amortizations
(up to 30 years) and long-term fixed interest rates, allows
business owners to enjoy the advantages of owning commercial
property with minimal impact on cash flow.
Metro Orlando-headquartered Mercantile Commercial Capital, LLC
(MCC) is the only company nationwide that exclusively focuses on
providing SBA 504 loans for business owners to finance commercial
property. Extending 90% loan-to-cost commercial real estate
financing with less money down and longer fixed rate terms, this
program offers owners of small and mid-sized businesses increased
ability to purchase commercial real estate instead of leasing,
while preserving capital and maximizing cash flow. The EDC is
available to facilitate meetings with MCC.
www.504experts.com
Other Government Grants – come from local,
state and federal agencies that spend billions of dollars each year
for procurement, research and consultant services. Startup
companies may wish to partners with a larger company and serve as a
subcontractor or pursue small business set aside contract/grant
opportunities.
www.grants.gov
www.governmentgrants.com
www.cfda.gov
Matching
Grants
Florida High Tech Corridor Council
– provides matching grants to companies located in the 23-county
Corridor region; grants support industry-university research
projects and SBIR/STTR awards in which one of the three
participating universities is a partner (University of Florida,
University of Central Florida, University of South Florida).
www.floridahightech.com
Strategic
Partnerships
Strategic Partnerships or
Alliance – two entities working together to achieve a
common goal. For an emerging company, these relationships can
provide capital as well as a customer base, marketing and sales
support and additional technical talent. For the established
company, the start-up partner provides new technology, new talent
and speed.
www.strategic-alliances.org
www.1000ventures.com
www.smallbusinessnotes.com/operating/leadership/strategicalliances.html
Equity
Capital
Angel Investors– An angel investor generally wants
less control of your company and a slower return on investment,
however the criteria for investment are likely to be similar. Angel
investor groups are great sources of private capital and frequently
invest angel money into new companies.
www.floridaangel.com
www.gatheringofangels.com
www.theangeljournal.com
www.vcfodder.com
Seed Stage Venture Capital – usually involves
capital provided to prove a concept and support product
development. Less the 8% of all VC funding in the past 23 years has
been seed stage.
Start-up Financing – funding provided for
product development and initial marketing (which means the company
has key management, market research and a business plan in
place).
www.flvencap.org
www.nvca.org
www.nasvf.org
www.americanventuremagazine.com
www.garage.com
www.1000ventures.com
Small Business Investment Companies – licensed
by the U.S. Small Business Administration, these privately owned
and managed investment firms combine their own capital with funds
borrowed from the government and invest as venture capital in small
businesses.
Florida First Capital Finance Corporation (FFCFC) has been
established to assist companies in the packaging of SBA 504, SBA
7A, Recycling Loans and Energy Loans. The EDC is available to
facilitate meetings with FFCFC and the company.
Two ‘Fs’: Friends & Family – raising money
from people who know and love you or who you convince to believe in
you is also an option. Typically you can raise $25k-$250k.
www.entrepreneur.com
Industrial
Development Revenue Bonds (IDRB)
IDRB financing is a
federal program, administered by the state at the local level. The
bonds can be used for the purpose of financing or refinancing
expansion of two types of companies: manufacturers and non-profit
organizations. Bond financing can provide up to 100 percent funding
of a qualified project within federally specified dollar limits.
IDRBs are beneficial to qualified companies as they are longer
term and available at a lower interest rate than most commercial
loans. The interest on the bonds has preferable income tax
treatment by the IRS and those savings are passed along to the
user. Like commercial loans, IDRB approval is related to the
company’s credit worthiness.
Do We Qualify?
Existing manufacturers and not-for-profit corporations are eligible
to apply. Applicants need to demonstrate that IDRB financing would
fund business expansion projects within the Metro Orlando region.
Projects must be economically beneficial to the county, provide
gainful employment, and protect the environment, as well as the
general welfare and public health of the state of Florida.
Commercial and industrial applicants must also demonstrate that at
least 75% of the space/facility built using IDRB funds would be
used for core manufacturing. It is recommended that applicants
consult with bond counsel to determine eligibility.
How do we apply?
- Determine in which county the facility will be located and
refer to that county's bond application guidelines listed below.
Note: For Osceola County, IDRB information is available through
the county's economic development department.
 Orange County IDRB Application
Guidelines
Seminole County IDRB Application
Guidelines
- Contact a certified bond counsel to work with you and the EDC
throughout the application process.
- Submit required number of copies of the application and the
application fee of $1,500 to the EDC three weeks prior to a
regularly scheduled meeting.
Orange County: Meets every 3rd Tuesday of every
month, 2 p.m.
Orange County Admin. Building, 3rd Floor, Conf. Room B
Orlando, FL 32801
Seminole County: Meets every 3rd Tuesday of
every month, 8:30 a.m.
Metro Orlando EDC, Seminole County Office
1055 AAA Drive, Suite 142
Heathrow, FL 32746
What happens next?
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- The EDC submits qualified applicants to the Industrial
Development Authority (IDA), who will assist in the review and
approval of the bond resolution.
- IDA approved applications are submitted to the appropriate
County Commission
for final approval.
What is the minimum/maximum Bond amount?
The minimum is $1.25 million. The maximum for manufacturers is $10
million; no maximum for 501(c)3 not-for-profit organizations.
Provided that the total of all of the borrower’s capital
expenditures during the period beginning 3 years prior to the
issuance of the bonds and ending 3 years after the issuance of the
bonds with respect to the borrrower's facilities within the local
jurisdiction, plus the amount of the bonds, will not exceed $20
million. No limit for tax-exempt organizations. Note: 501(c)6
do not qualify.
What is the interest rate?
Typically below conventional commercial lending rates.
How long is the term?
Up to 30 years.
Enterprise
Florida Bond Program
This program is available for
manufacturing projects between $800,000 and $2 million. The
guidelines are similar to the regular Industrial Revenue Bond
Program. These issues are pooled with other projects and approved
on a quarterly basis.
Pooled Activity Bond
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