[OMS_MANAGERS] Business Plan Competition

Mon Aug 5 15:28:48 PDT 2019

St Helens Economic Development Corporation sponsored a business plan competition different from the one you describe.

In ours the local credit unions went together on $20,000 and gave it to the Mainstreet organization which went into a special account for a 0-interest loan  (see more detail below).    SHEDCO raised an additional  $5000.00 for a $5000 grant.

SHEDCO then sponsored a business plan completion that took place as follows:

*         We announced that we were offering a $25,000 business plan competition with a $5000 grant and 20,000 no-interest loan.

*         All those interested were required to take a business plan writing class offered by SHEDCO.  We found a person that volunteered to teach a 6 to 9 week  business plan writing class.

*         Only those that finished the class qualified to submit a business plan for a new business.  

** One of the criteria was that the new business had to open along the Mainstreet.

*         After the class finished those that wanted to enter in the competition submitted their business plans.

*         The business plans were judged by a panel of bankers from the credit unions that initially put up the $20,000.  The bankers narrowed down the applications to a final group of three.

*         The final three were required to make a final  “public” presentation at  a final event organized by SHEDCO.   At the event the presenters could present a revised and updated business plan if the so desired (based on their initial conversations with the bankers) and were required to make 15 minute presentations to the public and the panel of bankers and others (one SHEDCO board member, another business person and the three bankers). 

*         The panel chose the winner at the end of the presentation event.  

The $20,000 put up by the banks went into a special money market account held by SHEDCO.  The interest from the CD would go to SHEDCO but the funds would be held in the “locked” account as collateral for the 0-interest loan.  

The winner received a $5000.00 grant from SHEDCO and a $20,000 no-interest loan payable over three years.  One of the banks wrote the loan, SHEDCO signed as a co-signer on the loan with the $20,000 as collateral.

We did this for the first time 4  years ago.  After the initial $20,000 got paid off the first time we did it again this year.   So it is basically a revolving fund ( collateral ) for the 0-interest loan.  This year we had to raise the $5000.00 for the grant again but that was relatively easy since the program was successful the first time.

If you need more information let me know.

---------------------------------------

Wm. Al Petersen, architect

Board Chairman

St Helens Economic Development Corporation

PO Box 555, St Helens, Oregon 97051

alpetersen at akaandesign.com <mailto:alpetersen at akaandesign.com>  

From: OMS_MANAGERS [mailto:oms_managers-bounces at listsmart.osl.state.or.us] On Behalf Of Director LGMSD
Sent: Monday, August 05, 2019 11:29 AM
To: OMS List <oms_managers at listsmart.osl.state.or.us>
Subject: [OMS_MANAGERS] Business Plan Competition

Hello, everyone.

We're considering a Business Plan competition here in La Grande, where the winner(s) would get to temporarily set up shop in one of our vacant store fronts. Our goal is to fill a vacancy temporarily while the building owner courts long-term tenants, encourage a new business by lowering the barrier-to-entry for a brick and mortar store, and in general see what kinds of potential new businesses are simmering just under the surface so we can help them come to fruition.

Have any of your communities had such a contest before? And if so, how were they structured and promoted?

Thanks so much,

Taylor Scroggins, Executive Director
La Grande Main Street Downtown
102 Depot St
Office 541-963-1223
Cell 541-975-4591

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