FY 2021 Annual Report
A Year of Challenges As small businesses faced another challenging year due to the pandemic, the Division stepped in to help with loans and grants.
Gaining an Adapting EDGE to Changes The Division awarded its third round of EDGE Grants in FY 2021. Read how the businesses are using their funding.
This year, the Tourism Office created new ways to market Delaware’s Endless Discoveries both during and after the pandemic.
Contents Table of Contents S E C R E TA R Y ’ S M E S S A G E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 WORKING WITH BUSINESSES.............................. 7 EDGE GRANTS ................................................8 H E L P L O A N S.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 D E R E L I E F G R A N T S .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 RUN-DE LOANS.............................................. 15 DELAWARE ON MAIN....................................... 16 DELAWARE TOURISM OFFICE............................ 17 C O M M U N I C AT I O N S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 D E L A W A R E S T R AT E G I C F U N D . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 D E L A W A R E T E C H N I C A L I N N O V AT I O N P R O G R A M . . . . . 3 1 BLUE COLLAR TRAINING FUND.......................... 33 O F F I C E O F S U P P L I E R D I V E R S I TY . . . . . . . . . . . . . . . . . . . . . . . 3 6 C O N TA C T U S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6
The Division of Small Business is an agency of the Delaware Department of State.
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The Mission
The Division of Small Business is focused on making Delaware the number one state in the nation to start and grow a small business. We provide support to businesses of fewer than 100 employees to help them maximize their potential. Small businesses account for 98 percent of businesses in Delaware and employ 55 percent of Delaware’s workforce. To help them succeed, the Division offers customized services and support, ranging from assistance navigating governmental regulations to connecting them to an extensive network of resource partners. We focus on traditionally under-served populations to create a more diverse and vibrant business community. The Division puts a specific emphasis on providing support to minority-owned, woman-owned and veteran-owned small businesses, as well businesses owned by individuals with disabilities. The Division also assists businesses in under-served geographic areas. We champion the state’s tourism industry by promoting Delaware’s endless discoveries to out-of-state visitors. The Division, through the Delaware Tourism Office, markets the state as a top vacation destination, which benefits the many small businesses that are part of the state’s $4 billion tourism industry. We collaborate with state and local governments to create a better environment for economic growth. The Division works with all levels of government to streamline the regulatory process to make it easier to open new businesses and expand existing ones. We are responsible stewards of taxpayer dollars. The Division, by vetting businesses seeking grants or loans from the Delaware Strategic Fund and other programs, ensures that taxpayer dollars are invested wisely and in a way that maximizes the positive impact on economic development. 3
S E C R E TA R Y ’ S M E S S A G E
Supporting Small Businesses During A Challenging Year
For many Delaware small businesses, fiscal year 2021 marked a second year of challenges. The rollout of vaccines made more people feel comfortable about returning to stores, restaurants and workplaces, but many small business owners continued to struggle with lower sales, supply chain issues and a labor shortage. Once again, the Division of Small Business stepped up to help these businesses not only make it through the pandemic but grow stronger. The Division introduced the DE Relief Grants program in August 2020 to provide direct financial assistance to for-profit small businesses and nonprofit organizations that experienced a significant drop in revenue. More than 4,150 small businesses and nonprofits received more than $191.5 million in grants. That makes DE Relief Grants the largest financial assistance program for small businesses in Delaware history.
DSB also continued to provide direct financial assistance to hard hit sectors of Delaware’s economy, including the restaurant and personal care industries (barbershops, hair salons, nail salons, etc.), through the Hospitality Emergency Loan Program (HELP). In total, 364 small businesses received HELP loans totaling about $10.9 million. Additionally, the Special Projects team at DSB also secured $1.5 million from the U.S. Economic Development Administration for the newly created Rise Up Now Delaware (RUN-DE) loan program. As of June 30, 2021, 10 small businesses received $497,000 in deferredinterest loans. The program funds allowed those businesses to create or sustain more than 100 jobs. DSB also worked with Governor Carney’s office to develop and implement the DE Wins! program. More than 250 small businesses were awarded grants of $5,000 to cover the cost of 4
providing discounts and prizes for customers who showed proof of vaccination. The program served two purposes: providing another reason for Delawareans to get the vaccine and helping
drive more customers to these businesses. In addition to rolling out new grant and loan programs, the Division also brought back a popular program for promising early-stage companies. The Encouraging Development, Growth and Expansion (EDGE) program returned for a third round of grants. Ten small businesses were awarded grants of up to $25,000 in the Entrepreneur category, and five companies received grants of up to $100,000 in the STEM category. More than 280 businesses applied for the program, the largest number of applications in the program’s history. The most recent winners include Paragon Life and Fitness, which is opening a fitness facility in Wilmington for people with disabilities; Taco Jardin in Smyrna, which purchased a second food truck to be able to serve their tacos across the state; and Gingham and Grace Clothing in Harbeson, which is expanding its online business. Meanwhile, Delaware Tourism Office (DTO) continued supporting Delaware’s more than $4 billion tourism industry and marketing the state as a destination for travelers. In FY ‘21, DTO’s efforts were recognized with prestigious industry awards – three Silver Addy Awards from the American Advertising Awards for the Delaware Discoveries Guide and a bronze Telly Award for
the Rediscover Delaware video campaign. As summer approached, DTO reached thousands of out-of-state visitors to share the word that Delaware’s beaches and historic sites were open for visitors and provided information on how they could maximize their safety while still enjoying their stay. DTO also launched the Destination Development Program which has two parts: a series of workshops to teach tourism-related businesses how to market more effectively and an incubator program in which three businesses or organizations are selected to work directly with industry-leading experts in developing and implementing a marketing and advertising plan. Mispillion River Brewing, Coastal Kayak, and Riverfront Wilmington are the first three businesses to participate in the incubator program. I want to thank the entire team for their commitment to advancing Delaware’s economy and protecting the health of its residents and visitors throughout this past fiscal year.
Jeffrey W. Bullock Secretary of State
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Delaware FY ‘21 Small Business Landscape 15,791
3,793 b
busine
sses
usines
5,698 b
ses
usines
ses
25,282 small businesses in Delaware
Small businesses account for: 228,220 jobs (55% of workforce)
$11 billion in wages (45% of all wages)
98% of all businesses in Delaware 6
WORKING WITH BUSINESSES
Working with Businesses The Division of Small Business’s primary mission is to support the state’s small business community. With the COVID-19 pandemic continuing to affect small businesses throughout FY ‘21, our Division’s mission became more important than ever. Each section of the Division took on new roles to assist our state’s small business owners and embraced the opportunity to help these entrepreneurs through this difficult time as best they could. Once again, the Division’s regional business managers (one for each county and Wilmington) were at the front line of our effort to connect directly with small businesses throughout the state. During FY ’21 the business managers helped more small businesses than ever before - many times acting as the place for businesses to turn when they faced significant hardships due to COVID-19. They assisted business owners in applying for DE Relief Grants and HELP loans. They also worked with business owners applying for the third round of EDGE business expansion grants and worked with the finalists in preparing their presentations before a panel of judges. Our regional business managers also were active with numerous small business groups throughout Delaware including the Launcher entrepreneurship program, the Central Delaware Economic Summit, Sussex Economic
Development Access Committee, Delaware State Chamber of Commerce, Central Delaware Chamber of Commerce, and New Castle County Chamber of Commerce. Helping businesses regain revenue lost during the pandemic became the focus of other sections within the Division of Small Business as well. With just a few days’ notice, the Business Finance Unit launched the HELP loan and DE Relief Grant programs and began accepting applications from businesses in need. Additional financial assistance was also provided to small businesses by our Special Projects team through the creation of the Rise Up Now Delaware (RUN-DE) loan program, which received funding from the U.S. Economic Development Administration. At the same time, the Delaware Tourism Office was finding new ways to support tourism industry professionals statewide and encourage in-state and out-of-state visitors to discover Delaware’s attractions. The office started the Delaware Discoveries Trail and the Destination Development program marketing incubator and workshop program in FY ‘21 to achieve both of these goals. And the Division staff leading Delaware on Main and the Office of Supplier Diversity worked strategically to find the best ways to support their constituencies. (More on this on pages 16 and 36, respectively.)
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EDGE GRANTS
“EDGE Grants are helping to level the playing field for promising Delaware small companies as they compete with more established, larger businesses.” - Gov. John Carney
Edge Grants The EDGE Grant program gives qualified small businesses in Delaware an edge by offering access to significant capital like never before.
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EDGE GRANTS
Helping Small Businesses Gain an EDGE The EDGE Grants competition is an innovative program aimed at helping promising earlystage Delaware companies get the funding they need to increase production capacity, hire more workers, level the playing field with larger, more established competitors and grow the state’s economy. EDGE (Encouraging Development, Growth and Expansion) is open to businesses that are at least 51 percent based in Delaware, have been in business for less than five years and employ no more than the equivalent of 10 full-time employees.
Gov. Carney and the Division of Small Business launched the grants in late FY ’19. Since EDGE launched, more than $2 million has been awarded to 35 promising Delaware small businesses in industries ranging from wearable technology to agribusiness to craft brewing. The third round of funding for the program opened in April 2021, and 282 businesses applied for funding – a record number of applicants. Twenty-three finalists gave public presentations before a panel of expert judges on June 22, 23 and 24 at Delaware Tech in Dover, and the 15 winners were announced at an event with Gov. Carney in August 2021 at Painted Stave Distilling in Smyrna, where EDGE grant recipient Taco Jardin currently has a food truck located.
Science-based businesses (STEM Class) are eligible for up to $100,000. All other businesses (Entrepreneur Class) can receive as much as $25,000. Funds are awarded as a 3-to-1 match on qualified expenses.
Class
Round 1
Round 2
Round 3
STEM
46
36
77
Entrepreneur
92
63
205
Total
138
99
282
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EDGE GRANTS
A Look into the Grantees STEM CLASS
Resonate Forward (Newark) This company was established to commercialize technology to help mitigate the symptoms of Parkinson’s disease. The grant will make it possible for Resonate Forward to develop a manufacturable prototype and design for their RMband device that mitigates tremors in patients with Parkinson’s disease. In addition, grant funds will also be used to help the company secure research/office space at the University of Delaware’s STAR campus.
Desikant (Wilmington) Curative Sciences (Newark) Curative Sciences is an earlystage life science start-up developing a comprehensive treatment platform for Oral Mucositis, tissue swelling in the mouth often caused by cancer treatment. The platform includes light-based therapy as well as oral care products for the management of intermediate to long-term oral side effects of cancer therapy. The grant will allow Curative Sciences to develop the next generation of their light-based therapy device.
Founded in late 2019 by Kwaku Temeng, Desikant Technologies created technology that incorporates electronics into protective gear to actively exchange warm, humid interior air with cooler, drier ambient air. The company’s current project is developing and testing a cooling vest that surgeons can wear to prevent heat exhaustion during long surgeries. Desikant will use its grant to add new capabilities (intelligent, automatic operation) to its technology toolkit and pave the way for developing products for demanding, high value, and profitable applications.
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EDGE GRANTS
Neggster (Wilmington) Always looking to solve problems, Newark’s Kasai Guthrie will be utilizing his EDGE funding to enable young adults to learn how to responsibly manage money and eventually hopes to transform his clients into entrepreneurs. Neggster, Guthrie’s new banking app, will teach its users how to better oversee their funds and to guide them to a more prosperous future.
Aqua Science (Newark) Aqua Science LLC is a biotechnology start-up that supplies high-quality testing solutions for the water quality testing market, including biosensor-based products, lab services, or complementary products sourced from others. The company created a BioLight product line used for toxicity testing of water and soil by municipalities, industrial companies, and utilities who demand high-quality results and adherence to regulation. They will use the grant funding to develop a luminometer to be used with the BioLight kits.
ENTREPRENEUR CLASS
Doña Maria’s Pupuseria (Seaford) Making Seaford a better place, one storefront at a time is exactly what Craig de Mariana Aleman and his family are all about. With their EDGE funding, Doña Maria will be expanding their restaurant outside and offering hand-dipped ice cream services to locals. While dining outside, customers will also be able to enjoy a beautiful new mural that Craig will commission, highlighting a local artist.
Elite Feet (Middletown) Elite Feet is a local, familyowned and operated retail specialty running store that sells high quality footwear and apparel for the entire family. The company will use grant funds to create a mobile retail store in a climate-controlled trailer. The mobile trailer will allow customers to be fitted for and purchase athletic shoes while attending races or other events, increasing the company’s profits and return on investment.
Delaware Tool Exchange (Newark) This veteran-owned company acquires tools and equipment on a consignment basis and offers them for sale at fair market prices from a brickand-mortar industrial facility in Newark. The company will use its grant to lease, build out, and open a second location in or near Newark, and equip their existing location with an integrated system to receive, inspect, clean, and repair tools more efficiently.
Taco Jardin (Smyrna) Charles “Cheeks” Kelchner and his business partners are passionate about great things – specifically, street tacos served from their food truck, Taco Jardin, located at Painted Stave Distilling in Smyrna. Chef Cheeks will be utilizing his newly obtained EDGE funding to purchase another food truck to take his fare on the road throughout Kent County.
Testimonial “This funding from the EDGE Grant program is significant for a small business like ours and will create opportunities for our business that would not be possible without it,” Charles Kelchner, Chef & Co-Owner of Taco Jardin 11
EDGE GRANTS
Paragon Life and Fitness (Wilmington) Vickie George, co-founder of Paragon Life and Fitness, believes that engaging in exercise should not be just for the elite or the able-bodied, and inclusiveness should have a place in the fitness industry. Paragon Life and Fitness plans to use its EDGE grant funding to open a fitness facility for adults and people with physical disabilities that will include wheelchair/dual accessible equipment.
Grail Sports (Elsmere) Founder Eugene Delle Donne launched Grail Sports LLC during the summer of 2018 with aspirations to penetrate the sports media world. After evolving from specializing in online blogging and podcasts, in January 2021, Grail Sports entered into a lease agreement to acquire a 24,000 square foot gymnasium to create an elite training facility for youth programs called the Grail Sports Complex. EDGE grant funding will be used to renovate the lower level of the sports complex to allow Grail Sports the opportunity to offer indoor training in multiple sports.
Brimming Horn Meadery (Milton)
1440 Film Co. (Wilmington) 1440 Film Co. is a full-service video production company located in Wilmington that specializes in commercials, documentaries, and branded content. The company used its grant funding to purchase a cargo van and various grip filmmaking equipment in order to continue delivering highquality work that is creative, engaging, and makes an impact on its clients.
Tempest Risk Management (Wilmington) Tempest Risk Management provides world class business continuity and disaster recovery solutions to businesses and communities enabling them to survive and thrive. EDGE grant funding will be used to build and launch the Tempest Risk Management Portal giving Delaware’s small and medium business owners instant access to critical resources when they are needed during a business emergency or disruption.
When Jon Talkington and JR Walker opened the Brimming Horn Meadery in Milton, Delaware in 2017 they had no idea how quickly their niche corner of the market would grow. Fast forward to 2021 and now the meadery is yet again expanding their horizons into the food truck industry. With their newly acquired EDGE funding, Jon and JR will be opening a Viking-themed food truck to complement their meads and serve their hungry clientele.
Gingham + Grace Clothing (Harbeson) Jami Jackson has grown her once small online boutique shop to a brick-and-mortar storefront in Harbeson, Delaware where her clients receive excellent customer service and oneof-a-kind pieces. With her EDGE funding, Jackson plans on investing in new inventory to grow sales, with hopes to bring on a new employee who can help her better serve her patrons in Delaware and the 29 other states that she ships to currently.
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HELP LOANS
BEHIND THE NUMBERS
$10.89 million
in HELP Loans distributed to small businesses across Delaware
364
businesses received a HELP loan
HELP Loans
The Division of Small Business introduced the Hospitality Emergency Loan Program (HELP) on March 18, 2020 to provide financial relief to Delaware restaurants, bars, hotels and other hospitality businesses, all industries hit hard by COVID-19. The program provides 10-year, interest-free loans of up to $10,000 per month to small businesses for rent, utilities and other unavoidable expenses other than personnel costs. The program is funded through the federal CARES Act. On March 26, 2020 eligibility was expanded to personal care businesses, including barbershops, hair salons and nail salons. The annual revenue cap also increased from $1.5 million to $2.5 million. In April 2020 the annual revenue cap was raised to $15 million for businesses in the restaurant industry, in an effort to help them through what had become an increasingly difficult time. The program closed to new applicants in October 2021. Loan repayments were deferred until at least December 1, 2021. In total, the program dispersed $10.89 million to 364 businesses across the state. A comprehensive list of loan recipients and amounts can be found on the Division website at www.delbiz.com.
$29,922 average loan amount approved
Businesses could apply for up to $10,000 per month in no-interest loans to help cover rent, utilities and other unavoidable bills. 13
DE RELIEF GRANTS
BEHIND THE NUMBERS
$191.5 million
in DE Relief Grants distributed to small businesses across Delaware
4,159
businesses received a DE Relief Grant
DE Relief Grants The DE Relief Grants program is the largest small business assistance program in Delaware history.
The program, which is administered by the Division of Small Business using funding from the federal CARES Act, launched in August 2020 to provide grants to Delaware small businesses and nonprofit organizations whose revenues experienced a significant decline due to the pandemic. The grants could be used for a variety of purposes including paying for fixed expenses incurred during the pandemic and acquiring personal protective equipment and other equipment or upgrades to enhance workplace health and safety. The DE Relief Grant program was initially funded to provide at least $100 million and was intended to reach 3,000 small businesses and nonprofits. Additional funding was announced in October 2020. In total, more than 4,150 small businesses and nonprofits received more than $191.5 million in assistance from the program.
A look at the numbers:
$46,062 average grant amount approved
• • • •
The Division of Small Business held three rounds of DE Relief Grant funding.
• •
More than 70% of funding went to businesses with fewer than 10 fulltime employees ($110 million). And more than $78 million went to businesses with fewer than 5 fulltime employees. 63% went to businesses in disproportionately impacted industries, including restaurants, retail, personal care, childcare, etc. ($101 million). Nearly a quarter of funding went to women-owned businesses ($37 million). 19% of funding went to minority-owned businesses ($30 million). Grant recipients came from all three counties with at least 41% of the funding provided to businesses in Kent and Sussex counties.
To view the full list of DE Relief Grant recipients, visit our website at www. delbiz.com.
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RUN-DE LOANS
BEHIND THE NUMBERS
$1.5 million
in RUN-DE loan funding awarded to Delaware by the U.S. EDA
RUN-DE Loans
With $1.5 million in funding provided by the U.S. Economic Development Administration, the Division of Small Business launched the Rise Up Now Delaware (RUN-DE) revolving loan fund program in February 2021 to provide deferred-interest loans to small businesses in Delaware. Loan funds can be used to purchase equipment, retrofit existing brick and mortar business operations, purchase inventory or as working capital. Within the first four months of marketing outreach, the division successfully underwrote and funded 10 small business loans from the revolving loan fund. These loans provided $497,000 in financial assistance to 10 small business borrowers and resulted in creating or sustaining 110 jobs. Each borrower was required to demonstrate that the business was unlikely to receive traditional lending and was also required to provide documentation of financial projections that indicated a high probability of ability to repay the loan and certifications of the intent to repay the loan.
10
businesses received a RUNDE loan in FY ‘21
$497,000 total loan funds distributed as of June 30, 2021
Businesses could apply for two times their 2019 or 2020 annual revenue up to a maximum of $50,000. 15
DELAWARE ON MAIN
The Division of Small Business runs Delaware on Main, which serves as the statewide coordinator for the National Main Street Center’s efforts to revitalize and preserve the nation’s downtowns and commercial corridors. In calendar year 2020, seven cities or towns were accredited members or affiliates. Accredited members (Main Street programs in Dover, Milford, Rehoboth Beach and Wilmington) accomplished the following: • • • • •
Created 87 new full-time jobs (net) Created 19 new businesses (net) Completed 9 rehabilitation projects Contributed 7,767 volunteer hours Attracted $7 million in private investment
The state’s Main Street organizations actively engaged in helping their small businesses respond to the COVID-19 pandemic in the following ways: • Hand delivered safety kits to the small businesses to help them safely reopen following Governor’s Executive Orders. • Worked with local public policy stakeholders to make temporary changes that encouraged safe shopping and dining, allowing businesses to protect their staff and customers while mitigating lost revenue. • Participated in online training sessions provided through Delaware on Main and National Main Street Center to learn best practices from across the US regarding safe ways to help businesses survive. • Created local fundraising opportunities to provide micro-grants to the businesses within their commercial corridors.
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DELAWARE TOURISM OFFICE
Delaware Tourism Office
As the pandemic’s economic effects began to be felt more deeply in Delaware, the Delaware Tourism Office (DTO) positioned itself as a leader in communicating crucial updates about travel in Delaware, working with industry partners to facilitate safe travel and simultaneously pushing to sustain tourism sales revenue.
sector partners – namely, the restaurants, hotels and other businesses that form the core of this diverse industry. Through FY ‘21, DTO’s sales and marketing teams generated an estimated $15M in FY ‘21 economic impact statewide through sales of sports, leisure, and group tour travel experiences.
DTO’s primary focus throughout the year remained on providing pertinent updates to the industry regarding the COVID-19 pandemic. The office worked closely with Governor Carney’s office and the Department of State to deliver these updates.
A key initiative that helped bolster DTO’s sales and marketing efforts was the Explore Safely campaign which provided consistent messaging to residents and travelers about safe ways to experience Delaware during the pandemic. The campaign included safety toolkits with printable signage, social media messaging, and website content that tourist attractions, restaurants, and stores could use to encourage visitors to explore safely. Another effort to encourage
At the same time, DTO also took steps to keep Delaware in the minds of potential travelers by fine-tuning national marketing efforts and reaching out to help its in-state private-
visitation from younger travelers and help increase awareness of Delaware destinations among in-state and out-ofstate visitors was the Delaware Discoveries Trail, launched by DTO in September 2020. Eleven pieces of interactive street art were placed at four locations throughout the state, allowing travelers to pose for photos and submit them to DelawareDiscoveries.com to win a prize. The Trail was planned before COVID-19, but ultimately provided an opportunity to create a new, safe outdoor activity for visitors, while also supporting Delaware artists. Several artists involved in the program have noted that without the development of the Trail, they are not sure how their business would have survived the pandemic. Many of our partners in the 17
DELAWARE TOURISM OFFICE tourism industry faced the same challenges that had begun with the pandemic’s arrival in FY ‘20, and sustaining their survival was crucial to them and to the entire state. In more typical times, tourism attracts about 9 million travelers to Delaware, contributing $3.5 billion to the state’s GDP, and $545.1 million in state and local taxes. DTO knew it needed to be there to help those businesses endure and to keep the tourism economy moving forward safely and sustainably. Sports events were a key driver of that sustained economy. The Tourism Office’s sales team worked with event organizers, complexes, hotels, and others to uphold Delaware’s high standing as a sports destination: In October 2020, thanks to DTO’s partnership with the University of Delaware Athletics Department, Delaware was awarded the 2026 NCAA Division I Men’s Lacrosse Quarterfinals. DTO’s team also helped transition ownership of the “Slam Dunk to the Beach” event to the Delaware Sports Commission, and participated in several virtual trade shows for the group tour and sports markets.
$15 MILLION
Estimated economic impact statewide through sales of sports, leisure, and group tour travel experiences
weekend of the presidential inauguration and during the Super Bowl. Ultimately, the campaign would achieve 77 million ad impressions and 100,000 clicks to the accompanying DiscoverDelaware.com website. Within two weeks of the campaign, DTO generated over 1,200 hotel bookings.
and VisitDelaware.com. The numbers speak to the effort’s success: In FY ‘21, the website received 1.1 million visits, and $3.3 million in hotel revenue was generated from online marketing and VisitDelaware. com.
Looking inward to the state of Delaware itself, DTO also recognized in FY ’21 that the pandemic’s lingering challenges presented an opportunity to re-emphasize the crucial role of close community outreach with industry partners.
The DTO team launched an awareness campaign that targeted the primary markets of D.C., Philadelphia, and Baltimore in early 2021 (it also would be introduced to new markets such as Boston, Atlanta, Chicago, and Denver). Conceived to give travelers compelling reasons to discover Delaware for business, relocation, and tourism, the campaign reached 17 markets across the country, and a television commercial created for the campaign was viewed far and wide during the
Part of that effort came through a program that was in the planning stages before the pandemic: The Destination Development Program. Through this marketing incubator program, DTO gives businesses and non-profits access to stateof-the-art marketing strategies, including one-on-one services from top agencies. By providing training and resources, DTO helps participating partners to help themselves, and further increases awareness of Delaware’s appeal to potential travelers.
DTO also completed a full redesign of VisitDelaware. com, the state’s #1 online resource for planning a trip to Delaware. The enhanced site includes enhanced integration with Google, giving travelers a seamless experience between Google My Business 18
DELAWARE TOURISM OFFICE The first three businesses selected for the marketing incubator program include Riverfront Wilmington, Mispillion River Brewing in Milford, and Coastal Kayak in Fenwick Island. Through the guided incubator process, the participants are receiving the following services directly from a national marketing agency: • Audience/customer analysis regarding out-of-state visitors utilizing or showing potential to utilize their business, visit their city or attend their event. • Branding analysis and recommendations based on target out-of-state audiences/customers. • Marketing plan research and implementation, as well as up to $20,000 in advertising funds. • Marketing materials with an easily editable design, giving businesses a sustainable platform that can be used well into the future. • An online media audit and training on how to utilize social media, online tools, and website management to achieve a successful return on investment with out-ofstate visitors. An accompanying Destination Development workshop program is helping 12 tourism businesses or non-profits, including: The Canalside Inn, Delaware Greenways, Delaware Historical Society, Town of Bethany Beach, Southern Delaware Tourism, Kent County Tourism, Delaware State Police
Museum, Pencader Heritage Museum, Hagley Museum and Library, Bethany-Fenwick Area Chamber of Commerce, New Castle Historical Society, and Clear Space Theatre. DTO worked with a Delaware vendor, AB&C, to conduct five training workshops and one-onone follow-up sessions in the following areas: • How to determine target audience and how to reach them • Digital media best practices (social media, build a website, etc.) • Branding best practices (how to take photography, videography, messaging, etc.) • Tracking success (analytics, data) Throughout this fiscal year, DTO also continued to give businesses and non-profits access to a Marketing Portal offering free step-by-step guidance on a variety of topics from top experts. Because it began during COVID-19 -- just as marketing departments shrank into one-person teams -- it would prove to be an invaluable resource for staffers taking on additional responsibilities.
Similarly, the pandemic would create a shortfall of the vendors typically used to mail large distributions of the Delaware Discoveries Guide, the state’s primary travel publication. DTO team members responded quickly, handling distribution internally and mailing more than 120,000 guides throughout the fiscal year. Distribution would range through travel centers and rest areas in the surrounding regions of Pennsylvania, New Jersey, Maryland, and Virginia. As part of that effort, DTO staffers also created a Discovery Advisors program, giving travelers a place to submit questions (and receive answers) about state travel guidelines. DTO would ultimately handle more than 750 individual trip planning requests. This fiscal year, the state of Delaware also provided the tourism industry with three advertising co-op programs, each an opportunity for businesses to share costs of ad placements and boost their return on investment. For participating co-op partners, the results were significant: 24 million ad impressions, hundreds of hotel room
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DELAWARE TOURISM OFFICE bookings, and hundreds of thousands of clicks to pertinent websites. Turning to Central Delaware, DTO partnered with the Greater Kent Committee to launch a new campaign, Live Central DE, that promoted local businesses, events, attractions, and organizations. From March to May 2020, the DTO team promoted the use of a Live Central DE checklist that encouraged locals to mark off places they have visited. The campaign also partnered with local businesses and non-profit organizations to create social media contests and award raffle prizes to residents and visitors who used the #LiveCentralDE hashtag. Due to the success of the campaign, we have provided a sponsorship to Greater Kent Committee to continue support of this local initiative. Although tourism began to see signs of recovery with visitation during FY ‘21, tourism businesses and non-profit organizations have still been severely impacted by staffing shortages and the increase in costs for supplies. DTO will continue to work with tourism businesses and non-profit organizations during FY ‘22 to provide support and assistance as they recover from the pandemic.
DTO’s marketing efforts during FY ‘21 gained thousands of new potential visitors, garnering the kinds of awards that inspire respect for Delaware as a brand and as a place that cares about travel industry success. Out of nearly 35,000 entries, DTO was recognized with three American Advertising (Addy) Awards - the advertising industry’s largest and most representative awards. DTO also received a Telly Award, which honors excellence in local, regional and cable television commercials and video from each of the 50 states and five continents.
Addy Awards Silver Addy for Delaware Discoveries Guide – Online Interactive Category Silver Addy for Delaware Discoveries Guide – Editorial Spread Design Category Silver Addy for Delaware Discoveries Guide
Telly Awards Bronze Telly for "Rediscover Delaware" video campaign
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C O M M U N I C AT I O N S
Communications Unit The response to the COVID-19 pandemic continued to shape the work of the Communications team throughout FY ‘21. In August, the Division partnered with Governor Carney and New Castle County to launch a more than $190 million grant program to assist Delaware small businesses and nonprofit organizations affected by the pandemic. Funded by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the DE Relief Grants program provided grants to more than 4,150 small businesses and nonprofit organizations throughout the state.
launch DE Wins!, a public education and incentive program aimed at increasing vaccination rates in the state. Delaware small businesses were encouraged to offer customer incentives to any Delawarean vaccinated before or during the program time frame. The Division launched the Small Business Incentive Fund to reimburse eligible qualifying businesses for incentives, including restaurants, bars, breweries, and gyms. More than 200 Delaware small businesses received state grants up to $5,000 to reimburse them for the cost of providing incentives for vaccinated customers.
The Division held three rounds of DE Relief Grant funding. Throughout the launch of the DE Relief Grants program, the Communications team kept small business owners updated through e-newsletters, webinars, social media posts, and an online FAQ with answers to commonly asked questions. The team worked with Hook PR & Marketing to publicize the program among Latino and Latina business owners.
In addition to promoting COVID-related programs, the Communications team also handled advertising and marketing for the third round of the Division’s EDGE Grants competition, which provides funds so that companies can expand. Those efforts led to a record number of applicants with nearly 300 businesses applying for the third round of the competition. In addition to promoting the program, staff planned and managed DSB’s judging events in June at Delaware Tech in Dover.
Staff also worked with the Delaware Black Chamber of Commerce to publicize the program among Black business owners and to provide application assistance to those business owners. With the launch of the COVID-19 vaccines in late 2020 and early 2021, the Division worked with small businesses throughout the state to help encourage Delawareans to receive the vaccination. In May, DSB partnered with Governor Carney and the Division of Public Health to
In terms of new initiatives, this year, the Communications team worked with University of Delaware Athletics to launch the Flock Local program to provide three local businesses impacted by COVID-19 a free University of Delaware Athletics sponsorship worth $15,000. More than 250 businesses applied for the program. Three small businesses were selected to receive the customized sponsorship package. Those businesses were: Oh 21
C O M M U N I C AT I O N S So Cycle in Newark, Cannon’s Bakery in Newark, and Piquale Hot Sauce in Wilmington. Through thoughtful, consistent use of multiple channels, Communications grew the numbers of followers for its social media pages and e-newsletter. This significantly helped expand the reach of the Division’s message to more small business owners and other stakeholders. Other programs and initiatives supported by the Communications team in FY ‘21 include: • Office of Supplier Diversity: The Communications team worked with an outside vendor to design a logo for the Office of Supplier Diversity. Additionally, in August, the team worked with the OSD Director on a series of videos highlighting four Black-owned small businesses in recognition of National Black Business Month. • Outdoor Gathering Limits and Plans: The Communications team worked with the Division of Public Health to review numerous plans submitted by organizations for outdoor gatherings of more than 250 people. • Instagram: The team worked with AB&C, a Wilmington advertising agency, to launch an Instagram account promoting the Division and its initiatives. The Communications team now manages the Instagram account directly, and the account currently has about 1,000 followers. • National Small Business Week: The team organized and hosted two webinars for small business owners, and a combined 120 small business owners participated. The team also highlighted Delaware small businesses in social media and blog posts. The Communications team also worked with the Division director on an op-ed that ran in the News Journal. • Delaware Tourism Office: During the year, the Communications team worked closely with the Delaware Tourism Office in promoting their initiatives and encouraging increased
visitation and tourism throughout Delaware. This work included drafting an op-ed with the DTO director for National Travel and Tourism Week that ran in the News Journal. • Monthly Grant List: Staff worked with the Horn Entrepreneurship program at the University of Delaware to launch a monthly list of small business grants on the Division website. • FOIA: The team responded to numerous Freedom of Information (FOIA) requests from media and others seeking documents on various topics. • Media: The Communications team responded to numerous requests from local, regional and national media for interviews with the Division of Small Business Director and Delaware Tourism Office Director. Staff also responded to numerous requests from media for documents on file at the Division of Corporations. Efforts to keep businesses informed and aware of support through the challenges presented by COVID-19 continued throughout FY ‘21 and will continue into FY ‘22. Through communication with those businesses and our partner organizations, the team continues to provide services and opportunities to help our state’s small businesses survive and thrive well into the future.
Business Marketing Program There were no non-state cash contributions to the Business Marketing Program during FY ‘21. Total expenditures for FY ‘21 were $141,560.18 and encumbrances were $31,005.
22
D E L A W A R E S T R AT E G I C F U N D
Council on Development Finance and Delaware Strategic Fund 23
The Council on Development Finance (CDF) is a panel of nine members, appointed by the Governor, Senate President Pro Tempore and Speaker of the House, to advise the director of the Delaware Division of Small Business (DSB), who serves as chair of the Delaware Economic Development Authority. The Council hears, evaluates, and recommends approval or disapproval of projects brought to it by the Division, the Delaware Prosperity Partnership and other economic development entities. These projects range from companies wanting to establish new facilities in the state, to existing businesses looking to expand, new companies wishing to grow and the revision of contracts already held with the state. After reviewing the project, the Council makes a recommendation to the Director.
NEWACME LLC
Delaware Strategic Fund The Delaware Strategic Fund (DSF) provides customized financial assistance to businesses considering locating or expanding in the state of Delaware. Financial assistance may be provided in the form of grants or low-interest loans to support the attraction and expansion of businesses.
approved funding of 16 projects through the Delaware Strategic Fund. Since the beginning of FY ‘21, every one million Strategic Fund dollars spent on grants is matched by more than $16 million in private funding. The projects are contributing more than $1.4 billion to Delaware’s GDP.
Through the Strategic Fund, DSB supports initiatives such as the Brownfield Assistance Program, Delaware Technical Innovation Program, Delaware Capital Access Program and the Delaware Rural Irrigation Program. The Strategic Fund also provides funds not affiliated with these specific programs.
Descriptions of FY ‘21 projects are on the following page. Information on DSF funding dispersed through the FY ‘21 Budget Bill (HB225 & HB226) and Bond Bill (SB180) is available on page 29 of this report. During FY ‘21, no requests for loans were presented to CDF.
The Council on Development Finance in FY ‘21
24
D E L A W A R E S T R AT E G I C F U N D
STRATEGIC FUND GRANTS RiKarbon, Inc.
The company was approved for $50,000 from the Delaware Strategic Fund Delaware Technical Innovation Program for a Small Business Innovation Research (SBIR) grant. The business is located in Newark.
Talos Tech LLC
This New Castle company was approved for $50,000 from the Delaware Strategic Fund Delaware Technical Innovation Program for a Small Business Technology Transfer (STTR) grant and $50,000 for a Delaware Strategic Fund Delaware Technical Innovation Program for a Small Business Innovation Research (SBIR) grant. The business produces advanced materials for battery manufacturers and develops advanced battery technologies for government agencies and commercial customers.
AWSM Solutions Delaware LLC
The specialty chemical company was approved for a Delaware Strategic Fund grant of up to $129,750 to expand operations in Bear and create up to 17 new jobs.
KTM LLC
The company was approved for $50,000 from the Delaware Strategic Fund Delaware Technical Innovation Program for a Small Business Innovation Research (SBIR) grant. The business is located in Newark.
ThruPore Technologies, Inc. The Newark-based company, which makes highly porous synthetic carbon catalysts used in the chemicals industry, is renovating lab space and relocating employees from Alabama to Delaware and hiring new employees. It was approved for up to $564,090 in Delaware Strategic Fund grants, including a Lab Space Grant of up to $353,800 and a Performance Grant of up to $210,290 to add up to 57 new jobs.
STA Pharmaceutical USA, Co.
The company is developing a 190-acre pharmaceutical manufacturing campus in Middletown. It was approved for up to $18,550,365 in Strategic Fund grants, including a Performance Grant of up to $3,250,635 to create up to 479 new jobs.
Old Dominion Freight Line, Inc.
The company is replacing its northern Delaware service center with a new, larger facility in Bear. It was approved for up to $394,500 in Delaware Strategic Fund grants, including a Capital Expenditure Grant of up to $273,000 and a Performance Grant of up to $121,500 to add up to 20 jobs.
Newacme LLC
The Oregon-based company, which sells home furnishings and other consumer products, is opening a warehouse and distribution center in New Castle. It was approved for a Performance Grant of up to $44,540 to create up to 34 new jobs.
Advantage Building Supply Corp.
The company, which supplies construction materials, will open a new facility in Wilmington. It was approved for up to $338,920 in grants from the Delaware Strategic Fund, including a Capital Expenditure grant of up to $138,000 and a Performance Grant of up to $200,920 to create up to 118 new jobs.
Eastern Highway Specialists
The company, which builds highways and bridges, is building a new headquarters in Northeast Wilmington and expanding its workforce. It was approved for $241,000 in grants from the Delaware Strategic Fund, including a Performance Grant of up to $181,000 to add 18 new jobs and a Capital Expenditure Grant of up to $60,000.
HX Innovations, Inc.
The company was approved for $50,000 from the Delaware Strategic Fund Delaware Technical Innovation Program for a Small Business Innovation Research (SBIR) grant. The business is located in Middletown. 25
D E L A W A R E S T R AT E G I C F U N D
Four M Investments VII, LLC
The company was approved for a Delaware Strategic Fund grant in the amount of $3,180,000, including a Capital Expenditure Grant of up to $2,730,000 and a Performance Grant of up to $450,000 to create up to 159 jobs.
Dayka & Hackett LLC/ Fresh PAC LLC
This fruit packaging company was approved for a Delaware Strategic Fund grant of up to $370,700, including a Capital Expenditure Grant of up to $70,200 and a Performance Grant of up to $300,500 to create 18 new jobs.
Compact Membrane Systems, Inc.
The company was approved for $50,000 from the Delaware Strategic Fund Delaware Technical Innovation Program for a Small Business Innovation Research (SBIR) grant. The business is located in Newport.
COMPANY
COUNTY
TOTAL AMOUNT AWARDED
# OF JOBS CREATED
JOBS TO BE CREATED & RETAINED
Talos Tech
New Castle
$50,000.00
4
8
Compact Membrane Systems, Inc.
New Castle
$50,000.00
10
32
KTM LLC
New Castle
$50,000.00
3
3
Four M Investments VII, LLC
Kent
$3,180,000.00
159
159
Advantage Building Supply Corp
New Castle
$338,920.00
78
78
AWSM Solutions Delaware LLC
New Castle
$129,750.00
17
17
Dayka & Hackett LLC
New Castle
$187,600.00
9
9
FreshPAC LLC
New Castle
$183,100.00
9
9
Eastern Highway Specialists
New Castle
$241,000.00
18
67
Talos Tech
New Castle
$50,000.00
2
4
Newacme LLC
New Castle
$44,540.00
33
33
HX Innovations, Inc.
New Castle
$50,000.00
10
11
Old Dominion Freight Line, Inc.
New Castle
$394,500.00
20
105
ThruPore Technologies, Inc
New Castle
$564,090.00
57
59
RiKarbon, Inc.
New Castle
$50,000.00
4
8
STA Pharmaceutical USA, Co.
New Castle
$18,550,365.00
479
479
$24,113,865.00
912
1,081
Total
26
D E L A W A R E S T R AT E G I C F U N D
Tax-Exempt Bond Financing
New or expanding businesses, governmental units and certain organizations exempt from federal income taxation can be eligible for statewide financial assistance in the form of taxexempt bonds. This financing, which does not utilize state funds nor impact the full faith and credit of the State of Delaware, may be costeffective for projects involving the issuance of more than $750,000. CDF reviews all applications for their impact on Delaware’s economy.
Delaware Rural Irrigation Program
State Small Business Credit Initiative
The Delaware Rural Irrigation Program (DRIP) is a revolving loan fund administered jointly through the Dept. of Agriculture and Division of Small Business. The program provides nointerest loans to allow farmers to irrigate more cropland. The public-private investments help these farmers survive droughts.
The federally-funded State Small Business Credit Initiative (SSBCI) enables the Division of Small Business to create a loan participation program. This program is a partnership between the Division and the participating lending institutions designed to increase the access businesses have to capital at lower interest rates.
No DRIP projects were approved during FY ‘21.
There were no SSBCI loans approved during FY ‘21.
During FY ‘21, no issuances were approved.
Brownfield Assistance Program The Brownfield Assistance Program provides matching grants to developers and owners to encourage redevelopment of environmentally distressed sites. No Brownfield projects were approved during FY ‘21. 27
D E L A W A R E S T R AT E G I C F U N D
Delaware Capital Access Program The Delaware Capital Access Program (DCAP) gives banks a flexible, transparent tool to expand small business lending. By using a small amount of public resources to generate a large amount of private bank financing, the program provides more access to capital, which in turn stimulates economic growth. During FY ‘21 there were 14 DCAP projects approved, (see chart below), and every dollar spent through DCAP generated $7.38 in private funding. Applicant
Amount
County
Clarks Cellphone Corner, LLC
$30,000
New Castle
House of Laffs LLC
$11,000
New Castle
Jerry Deen’s LLC
$6,250
New Castle
Jerry Deen’s LLC
$6,250
New Castle
C and J Pedraza LLC
$21,000
Sussex
Couryei Cobb dba Blyss Skin Studio
$12,250
New Castle
Kidz Choice, LLC
$9,375
New Castle
Gareth Nichols dba Gee’s Hauling Co.
$3,500
New Castle
Gareth Nichols dba Gene’s Hauling Co.
$3,500
New Castle
On The Mark Locators LLC
$18,750
New Castle
Beshore Lawn Service LLC
$10,062
New Castle
Daphne, LLC
$15,750
New Castle
Diamond State Hot Tub Rentals Inc.
$12,500
New Castle
Brappin Crabs LLC
$17,500
Kent
28
D E L A W A R E S T R AT E G I C F U N D
FY’ 21 Budget Strategic Fund Allocations The Capital and Operating Budgets allocate money to the Delaware Strategic Fund directed to specific purposes and/or projects aimed at enhancing the state’s economic development efforts. The Division of Small Business administers payments for and, as dictated by statute, receives reports on these projects.
Operating Budget Business Incubators This $350,000 of funding supports established not-for-profit business incubators. In FY ‘21, funds were distributed to the Emerging Enterprise Center, Sussex County Economic Development Business Incubator, Kent Economic Partnership and Middletown Chamber Business Incubator.
Small Business Development Center This funding of $400,000 supports the Small Business Development Center, an entity jointly funded by DSB and the SBA. The SBDC assists companies with a number of items, including business plans, marketing, grant writing, technology and ownership transitions.
Capital Budget Bioscience Center for Advanced Technology (CAT) This $1 million in funding goes to addressing the technology gap and promoting economic development. CAT fosters academic industry research partnerships to support local bioscience businesses and help Delaware recruit, retain and create science-based jobs.
Composites Research This $100,000 of funding provides a match of up to $100,000 to the University of Delaware Center for Composite Materials for federal research grants that support development and application of composite manufacturing technology for the benefit of Delaware companies.
DE Clinical & Transitional Research (year 3 of 5) This $1 million enables partner institutions to put in place critical infrastructure to train the next generation of professionals. The training focuses on clinical and translational health research, developing new methods to translate discoveries in community health settings and improving healthcare across the State.
Delaware Prosperity Partnership This $2 million goes to a public/private partnership leveraging private resources to improve business recruitment, retention and expansion; develop a talented workforce; connect with the global economy; and build a stronger entrepreneurial environment. 29
D E L A W A R E S T R AT E G I C F U N D
EPSCoR-RII (year 3 of 5) This funding of $800,000 helps provide infrastructure supporting research and educational programs for the state’s water/ energy challenges.
INBRE This $1 million supports the State’s academic and medical institutions. Through collaborations among the public, private and academic sectors of the State, the grant boosts biomedical research, encompassing both basic and translational research.
NIIMBL (year 4 of 5) This funding of $2.5 million supports the transformation of biopharmaceutical manufacturing in the State. The institute focuses on bringing safe drugs to market faster and creating quality jobs.
RAPID This funding of $1.75 million provides the state match for a grant to establish a new Manufacturing USA Institute at the University of Delaware (UD). UD is a partner in a network of collaborating universities. The institute is focused on developing technologies to boost energy efficiency and domestic productivity. The goal is to work with businesses by merging commercial/ research capabilities.
Riverfront Development Corporation This $3 million helps continue development of the Wilmington Riverfront, from operating funds to a wildlife education center.
30
D E L A W A R E T E C H N I C A L I N N O V AT I O N P R O G R A M
Delaware Technical Innovation Program The Delaware Technical Innovation Program (DTIP) offers transitional grants for research initiatives. Using the Delaware Strategic Fund, the program focuses on applicants for highly competitive federal grant programs known as Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR). Eligible companies conduct high-risk, early-stage research with a high potential for business growth. SBIR/STTR research has three phases. During Phases I and II, entrepreneurs work to prove their ideas have technical and economic merit, seeking funding from the federal government and other public and private sources to help them develop their innovation. In Phase III, commercialization, less federal funding is available. Entrepreneurs must transition to selling their product on the open market to generate revenue and must rely more heavily on private investors for capital needs. A dozen federal agencies provide SBIR/STTR funding for enterprises in Phase I (up to $256,580) and Phase II (up to $1,710,531). However, despite earning a Phase I federal award, the costs associated with completing a Phase II concept may be beyond some entrepreneurs’ means. DTIP grants serve as gap financing for entities that have received Phase I grants and have applied for a Phase II. DSB can award a matching grant of up to $50,000 per application (limit five awards per company within a 10-year rolling period).
31
D E L A W A R E T E C H N I C A L I N N O V AT I O N P R O G R A M Five companies received DTIP grants in FY ‘21: •
Compact Membrane Systems Inc. in Newport is developing a membrane that can be used in packaging to increase the shelf life of fruits and vegetables.
•
Talos Tech LLC in New Castle is developing a rechargeable battery.
•
KTM LLC in Newark is developing a dental retainer that people with physical disabilities can use to control a computer screen.
•
HX Innovations Inc. in Middletown is doing neuro-ergonomic, biomechanic research.
•
RiKarbon Inc. in Newark recycles plastic waste to create high-value products.
Of the 32 DTIP awards made to Delaware entities from FY ’12 to FY ‘21, 41% successfully were awarded federal Phase II funding. And 15% of Delaware entities that received federal Phase II funding utilized DTIP assistance. Without that transitional funding, the research and development necessary for these companies to achieve Phase II status would have been compromised. FEDERAL AWARDS FY ‘12 - FY ‘21
DE AWARDS
TOTAL AWARDED
AVERAGE AWARD
Phase I Grants
187
$29,165,201.64
$155,963.65
Phase II Grants
88
$87,152,073.42
$990,364.47
Total
275
$116,317,275.03
$422,971.91
DTIP Awards FY ‘12 - FY ‘21 AWARDS
ENTITIES
TOTAL AWARDED
AVERAGE AWARD PER ENTITY
32
22
$1,590,000
$72,272.73
32
BLUE COLLAR TRAINING FUND
Blue Collar Training Program The Division of Small Business provides Blue Collar Training funds to Delaware businesses for customized training initiatives. Throughout the year, applications are received and contracts are awarded, and completed training contracts are closed-out according to auditing standards. A follow up is conducted six months after the contract closes to determine if the business met its training goals.
New FY ‘21 Contracts Overall • Contracts awarded - 2 ($188,681.50) • Participants receiving training - 62 County breakdown New Castle County - 2 Kent County - 0 Sussex County - 0 • First-time applicants Contracts awarded - 1 ($100,000) Participants receiving training - 25 • Small businesses (less than 100 employees) Contracts awarded - 2 ($188,681.50) Participants receiving training - 62 Other Info • On-site trainings observations - 0 • 3 companies reported 100% retention of employees trained 6 months after training was completed
Completed FY ‘21 Contracts • • • • •
Completed contracts - 7 (totalling more than $596,419) Participants trained - 409 First-time applicants - 4 Small businesses - 3 County breakdown: New Castle County - 5 Kent County - 1 Sussex County - 1
Analysis of Participants Demographic information on the next page is from voluntary surveys. Some participants chose not to complete the survey. Some do not complete the entire questionnaire.
State Employee Training Program The Department of Human Resources receives $100,000 annually from the Blue Collar Training Fund for the State Employee Training Program. DSB serves on the committee that evaluates proposals from state agencies for customized training within their respective departments. More than 220 state employees completed training.
33
BLUE COLLAR TRAINING FUND
Program Participant Profile SEX
VETERAN
RACE/ETHNIC GROUP
Male
78%
Yes
4%
White
80%
Female
21%
No
92%
African American
8%
No Response
1%
No Response
4%
Hispanic
5%
Asian/Pacific Islander
3%
American Indian
0%
No Response
4%
AGE
DISABILITY
EDUCATION LEVEL
16-20
6%
Yes
0%
Did Not Complete High School
2%
21-30
31%
No
96%
High School or Equivalent
27%
31-55
46%
No Response
4%
Post-High School/Training Program
11%
56-65+
14%
Some College
25%
No Response
3%
2-Year College Degree
11%
4-Year College Degree
16%
Additional Degrees
4%
No Response
5%
RESIDENCE
LIMITED ENGLISH
RECIPIENT OF PUBLIC ASSISTANCE
DE
69%
Yes
5%
Yes
1%
MD
10%
No
75%
No
0%
PA
9%
No Response
21%
No Response
99%
NJ
10%
Other
3%
34
BLUE COLLAR TRAINING FUND MARITAL STATUS
EMPLOYMENT STATUS 90 DAYS PRIOR
Married
45%
Unemployed
7%
Single
45%
Employed Part Time
10%
Single Parent
3%
Employed by This Employer
55%
Other
3%
Employed by Other Employer
3%
No Response
4%
No Response
26%
Additional Program Reports Coastal Zone Conversion Permit Act
Delaware Angel Investor Tax Credit
Economic activity enabled in FY ‘21 by the Coastal Zone Conversion Permit Act: None
The Angel Investor Tax Credit had three new certified investors and three new certified businesses in FY ‘21. The Division of Small Business issued two credits totaling $203,212.35. DSB administers the Angel Investor Tax Credit, which Gov. Carney signed into law in May 2018. The statute created a 25 percent refundable tax credit for investors who put in at least $10,000 (for individuals) or $30,000 (for funds) in Delaware-based companies in high-tech fields, including aerospace, biotech and fintech.
The CZC Permit Act allows for the responsible redevelopment of 14 legacy industrial sites in the coastal zone with the intention of creating new jobs and providing environmental clean-up of those legacy sites along the Delaware coast.
35
O F F I C E O F S U P P L I E R D I V E R S I TY
Office of Supplier Diversity
On June 16th, 2021 Governor John Carney issued Executive Order 49 to enhance economic opportunities for Delaware’s diverse business community and to continue the state’s commitment to supplier diversity initiatives. The Order officially transitions the Office of Supplier Diversity (OSD) to the Division of Small Business within the Delaware Department of State. This transition provides a unique focus to the diverse business community to gain better access to a network of resources that will aid in their success. The Office of Supplier Diversity created a new logo to represent our presence in the Division of Small Business. The logo consists of the Office of Supplier Diversity monogram which includes all colors used within the Department of State and Division of Small Business’ color scheme signifying inclusion. The colors within the monogram are intertwined signifying unity.
OSD also created the diverse business and small business seals which certified businesses can use in their marketing and promotional materials as an official indication of their certification status with the State of Delaware. Executive Order 49 also reconstitutes the Governor’s Supplier Diversity Council whose responsibilities include: advocating for the State of Delaware’s supplier diversity initiatives; 36
O F F I C E O F S U P P L I E R D I V E R S I TY identifying training opportunities and offering information on the tools necessary for successfully doing business with the State of Delaware; and identifying economic opportunities beyond state contracting and sharing best practices and strategies that will leverage the state’s business initiatives. OSD takes pride in working to achieve its mission to enhance economic opportunities for the diverse business and small business communities. The Office of Supplier Diversity’s key service is the diverse business and small business enterprise certifications. Certification helps businesses increase their visibility among State agencies and other prospective clients and enhance their competitive advantage. In FY ‘21, OSD certified 227 businesses, providing them with the opportunity to become more connected with the State of Delaware and gain access to opportunities for networking, business development, and contracting. In partnership with Government Support Services’ (GSS) Contracting Unit, OSD participates in Vendor Day Training which provides knowledge about the State of Delaware’s procurement process to help interested vendors secure State contracts. In FY ‘21, OSD and GSS held three virtual training sessions giving 150 interested vendors valuable information and resources on “How to do Business with the State of Delaware”. In addition to Vendor Day Training, OSD participated in the following workshops and educational seminars geared towards advancing economic opportunities for diverse businesses: • Delaware Black Legislative Caucus State Contracting Workshop • Delta Sigma Theta Sorority State Economic Workshop • S.C.O.R.E. Annual Meeting • Delaware Black Chamber of Commerce EDGE Presentation
understands that to fully achieve our mission, we must also ensure that we are working to improve the communities in which our businesses operate and where their workforce lives. During FY ‘21, the OSD Director served on various committees, commissions, work groups, award selection committees which included: • Governor’s Pandemic Resurgence Advisory Council – Economic Subcommittee • African American Task Force – Economic Subcommittee • Pete du Pont Freedom Foundation E3 Initiative – Kent County Group • Delaware State Chamber of Commerce – Superstars in Business Committee • Startup 302 – Delaware Innovator Interview Group • Eastern Minority Supplier Development Council – Regional Award Selection Committee The Office of Supplier Diversity was proud to be part of the work that ensured a 15% set aside for minority and women-owned business enterprises for the Delaware Relief Grant program. OSD also partnered with the Delaware Black Chamber of Commerce to increase Delaware Relief Grant program awareness, application submissions, and grant approvals for minority- and women-owned businesses. Additionally, the Office of Supplier Diversity worked with Stand By Me Hispano to conduct a series of dual language webinars and marketing campaigns to assist Hispanic businesses owners.
Beyond certification, OSD assists our diverse business and small communities through advocacy work and connections with federal, State and local resource partners. OSD 37
O F F I C E O F S U P P L I E R D I V E R S I TY
Supplier Diversity & Small Business Community Spend Snapshot In FY ’21, the State of Delaware spent $679.3 million with the Supplier Diversity and Small Business community*. This includes direct spend of $111 million with the Diverse business (OSD) community and $25.8 million with the Small Business Focus (SBF) community. The chart below breaks down spend with the Supplier Diversity and Small business community in FY ‘21 and compares it to spending in FY ‘20. This chart also includes information on Tier II spend.
SPEND TYPE
FY2019 ANNUAL
FY2020 ANNUAL
FY19FY20 % CHANGE
FY2021 ANNUAL
FY20FY21% CHANGE
Direct spend with OSD Certified + W9 + DSHA
$180,017,607
$195,701,073
8.70%
$299,796,584
53.20%
Indirect spend. Tier II
$29,087,630
$31,161,031
7.10%
$26,365,164
-15.40%
TOTAL Supplier Diversity spend (include W9, OSD & Tier II)
$209,105,237
$226,862,105
8.50%
$326,161,748
43.80%
Direct spend with SBF Certified
$12,549,189
$16,335,092
30.20%
$25,773,639
57.80%
Direct spend with W9 small firms
$241,120,545
$227,713,457
-5.60%
$327,355,922
43.80%
TOTAL Small Business spend (include W9 & SBF)
$253,669,734
$244,048,548
-3.80%
$353,129,561
44.70%
TOTAL (direct and indirect, all diverse & small)
$462,774,971
$470,910,653
1.80%
$679,291,309
44.30%
*Note: Supplier Diversity and Small Business Community is inclusive of certified OSD, SBF, and W9 self-reporting vendors with State agencies, school districts and charter schools.
38
O F F I C E O F S U P P L I E R D I V E R S I TY
FY ‘21 Spend Scorecards The FY ‘21 annual total spend was $679.3 million with the Supplier Diversity community (OSD + SBF, W9) - a combined increase of 44.3%* over FY ‘20. Using data from First State Financials (FSF), JP Morgan, DSHA contracting reports, State Agency & GSS Tier II reports and DelDOT Subcontractor reports, the score cards capture annual spending by State agencies and school districts/charter schools with diverse and small businesses. The scorecards report discretionary spend and provide a calculation of the percent of diverse (OSD + W9) spend as compared to the same agency’s total discretionary spend. Similar calculations are reported for small business spending within each agency on the second scorecard.
Agencies Diverse Spend Scorecard Of the $326.2 million the State spent with the diverse business community in FY ’21: • 34 percent was direct with certified OSD businesses • 8 percent was indirect with Tier II • 58 percent was with W9 self-identified diverse firms Five agencies accounted for 75 percent of the annual spend with the diverse community: Education, Department of State, Health and Social Services, Technology, and Finance. See the full Agencies Diverse Spend Scorecard chart on pages 40 and 41.*
Agencies Small Business Spend Scorecard Of the $353.1 million the State direct spent with the small business community in FY ’21: • 7 percent was with certified SBF vendors • 93 percent was with W9 self-identified small firms Six agencies accounted for 81 percent of the annual spend with the small business community: Education, State, Health and Social Services, Finance, DelDOT, and Labor. See the full Agencies Small Business Spend Scorecard chart on pages 42 and 43.*
*Note: Spend totals for FY ‘21 include funds dispersed by the state in the form of grants. The accounting code used for grants is included in the discretionary spend category. This can be attributed to the large increase in spend.
39
O F F I C E O F S U P P L I E R D I V E R S I TY
Agencies Diverse Spend Scorecard
AGENCY
OSD DIVERSE CERTIFIED FY2021
% OF OSD DIVERSE SPEND
W9 SELF CERTIFIED FY2021
% OF W9 SPEND
OSD DIVERSE + W9 SPEND
TOTAL AGENCY SPEND
OSD + W9 % AGENCY ANNUAL
Legislative
$245,735
0.22%
$93,593
0.05%
$339,328
$3,835,622
8.85%
Judicial
$649,900
0.59%
$878,623
0.47%
$1,528,523
$13,079,670
11.69%
Executive
$4,853,015
4.37%
$2,445,450
1.30%
$7,298,465
$503,944,753
1.45%
Technology
$12,147,971
10.94%
$320,631
0.17%
$12,468,602
$65,064,167
19.16%
Other Elective
$234,327
0.21%
$1,264,813
0.67%
$1,499,141
$161,308,059
0.93%
Legal
$155,762
0.14%
$1,240,648
0.66%
$1,396,410
$12,296,090
11.36%
Human Resources
$57,899
0.05%
$16,313
0.01%
$74,213
$12,949,158
0.57%
State
$4,384,864
3.95%
$65,318,529
34.60%
$69,703,393
$292,277,960
23.85%
Finance
$803,750
0.72%
$11,516,568
6.10%
$12,320,318
$306,026,950
4.03%
DHSS
$19,269,318
17.36%
$19,736,839
10.46%
$39,006,157
$3,271,555,588
1.19%
DSCYF
$1,591,939
1.43%
$2,640,019
1.40%
$4,231,957
$82,875,518
5.11%
Correction
$11,113,816
10.01%
$229,112
0.12%
$11,342,928
$102,350,783
11.08%
40
O F F I C E O F S U P P L I E R D I V E R S I TY
Agencies Diverse Spend Scorecard cont.
AGENCY
OSD DIVERSE CERTIFIED FY2021
% OF OSD DIVERSE SPEND
W9 SELF CERTIFIED FY2021
% OF W9 SPEND
OSD DIVERSE + W9 SPEND
TOTAL AGENCY SPEND
OSD + W9 % AGENCY ANNUAL
DNREC
$3,706,966
3.34%
$4,649,263
2.46%
$8,356,229
$140,914,880
5.93%
DSHS
$3,147,373
2.84%
$1,064,626
0.56%
$4,211,999
$196,610,238
2.14%
DelDOT
$4,349,102
3.92%
$6,546,942
3.47%
$10,896,045
$691,556,536
1.58%
Labor
$6,710,867
6.04%
$4,283,999
2.27%
$10,994,867
$264,472,288
4.16%
Agriculture
$68,241
0.06%
$1,176,263
0.62%
$1,244,504
$47,309,027
2.63%
Elections
$1,108,343
1.00%
$396,958
0.21%
$1,505,301
$9,732,636
15.47%
Fire
$11,967
0.01%
$16,582
0.01%
$28,549
$5,845,087
0.49%
Natl Guard
$1,202,275
1.08%
$1,312,299
0.70%
$2,514,574
$20,427,571
12.31%
Exceptional Citizens
$0
0.00%
$228
0.00%
$228
$30,470
0.75%
Higher Education
$3,145,875
2.83%
$2,042,580
1.08%
$5,188,455
$277,266,611
1.87%
Education
$29,324,220
26.41%
$61,587,767
32.62%
$90,911,987
$882,334,084
10.30%
Housing Authority
$2,734,413
2.46%
$0
0.00%
$2,734,413
$5,677,261
48.16%
Total
$111,017,937
100.00%
$188,778,648
100.00%
$299,796,584
$7,369,741,007
4.07%
41
O F F I C E O F S U P P L I E R D I V E R S I TY
Agencies Small Business Spend Scorecard
AGENCY
OSD SBF CERTIFIED FY2021
% OF OSD SBF SPEND
W9 SELF CERTIFIED FY2021
% OF W9 SPEND
OSD SBF + W9 SPEND
TOTAL AGENCY SPEND
OSD SBF + W9 % AGENCY ANNUAL
Legislative
$41,362
0.20%
$883,798
0.30%
$925,160
$3,835,622
24.12%
Judicial
$12,727
0.00%
$1,769,327
0.50%
$1,782,054
$13,079,670
13.62%
Executive
$1,014,408
3.90%
$11,011,336
3.40%
$12,025,744
$503,944,753
2.39%
Technology
$22,664
0.10%
$8,241,503
2.50%
$8,264,167
$65,064,167
12.70%
Other Elective
$23,705
0.10%
$3,494,119
1.10%
$3,517,824
$161,308,059
2.18%
Legal
$2,820
0.00%
$3,009,944
0.90%
$3,012,764
$12,296,090
24.50%
Human Resources
$3,837
0.00%
$564,243
0.20%
$568,080
$12,949,158
4.39%
State
$2,017,881
7.80%
$59,596,625
18.20%
$61,614,506
$292,277,960
21.08%
Finance
$53,251
0.20%
$27,464,623
8.40%
$27,517,874
$306,026,950
8.99%
DHSS
$2,712,425
10.50%
$39,134,844
12.00%
$41,847,269
$3,271,555,588
1.28%
DSCYF
$468,800
1.80%
$4,495,679
1.40%
$4,964,479
$82,875,518
5.99%
Correction
$525,672
2.00%
$11,941,056
3.60%
$12,466,728
$102,350,783
12.18%
DNREC
$387,853
1.50%
$6,103,436
1.90%
$6,491,289
$140,914,880
4.61%
DSHS
$2,297,532
8.90%
$3,334,286
1.00%
$5,631,818
$196,610,238
2.86%
42
O F F I C E O F S U P P L I E R D I V E R S I TY
Agencies Small Business Spend Scorecard cont.
AGENCY
OSD SBF CERTIFIED FY2021
% OF OSD SBF SPEND
W9 SELF CERTIFIED FY2021
% OF W9 SPEND
OSD SBF + W9 SPEND
TOTAL AGENCY SPEND
OSD SBF + W9 % AGENCY ANNUAL
DelDOT
$1,245,277
4.80%
$20,784,835
6.30%
$22,030,112
$691,556,536
3.19%
Labor
$1,145,298
4.40%
$14,908,022
4.60%
$16,053,319
$264,472,288
6.07%
Agriculture
$19,323
0.10%
$945,589
0.30%
$964,911
$47,309,027
2.04%
Elections
$20,837
0.10%
$2,003,561
0.60%
$2,024,397
$9,732,636
20.80%
Fire
$8,489
0.00%
$127,533
0.00%
$136,022
$5,845,087
2.33%
Natl Guard
$72,842
0.30%
$946,744
0.30%
$1,019,587
$20,427,571
4.99%
Exceptional Citizens
$0
0.00%
$228
0.00%
$228
$30,470
0.75%
Higher Education
$564,530
2.20%
$3,861,176
1.20%
$4,425,706
$277,266,611
1.60%
Education
$13,112,106
50.90%
$102,733,416
31.40%
$115,845,522
$882,334,084
13.13%
Housing Authority
$0
0.00%
$0
0.00%
$0
$5,677,261
0.00%
Total
$25,773,639
100.00%
$327,355,922
100.00%
$353,129,561
$7,369,741,007
4.80%
43
O F F I C E O F S U P P L I E R D I V E R S I TY
DOE & School Districts Spend Scorecard School districts spent $25.8 million with the certified Supplier Diversity community in FY ‘21. This represents a 7 percent decrease in spend when compared to FY ‘20.
DISTRICT
FY2020
FY2021
% OF FY21 TOTAL
Appoquinimink
$7,227,559
$8,370,249
32.40%
Brandywine
$5,513,703
$2,815,116
10.90%
Caesar Rodney
$199,938
$1,132,592
4.40%
Cape Henlopen
$5,323,105
$4,907,868
19.00%
Capital
$151,303
$246,133
1.00%
Christina
$2,622,859
$1,766,498
6.80%
Colonial
$937,672
$764,548
3.00%
Delmar
$2,050
$30,390
0.10%
Indian River
$344,818
$267,874
1.00%
Lake Forest
$158,317
$153,491
0.60%
Laurel
$277,440
$28,295
0.10%
Milford
$75,014
$118,307
0.50%
New Castle VoTech
$439,461
$391,782
1.50%
Polytech
$40,511
$17,355
0.10%
Red Clay
$4,063,347
$4,256,101
16.50%
Seaford
$177,245
$302,315
1.20%
Smyrna
$84,318
$79,718
0.30%
Sussex Technical
$58,888
$60,200
0.20%
Woodbridge
$67,909
$153,741
0.60%
Total
$27,765,456
$25,862,572
44
O F F I C E O F S U P P L I E R D I V E R S I TY
DOE & Charter Schools Spend Scorecard
Charter Schools spent $2.6 million with the certified Supplier Diversity community in FY ’21. This represents a 16 percent decrease in spend when compared to FY ‘20. CHARTER SCHOOL
FY2020
FY2021
% OF FY21 TOTAL
CHARTER SCHOOL
FY2020
FY2021
% OF FY21 TOTAL
Academia Antonia Alonso
$70,315
$223,862
2.30%
John S. Charlton School
$32,564
$25,752
1.10%
Academy of Dover Charter School
$21,400
$37,057
0.70%
Kuumba Academy Charter School
$161,307
$99,105
5.20%
Campus Community School
$7,228
$54,602
0.20%
Las Americas ASPIRA Academy
$180,987
$80,886
5.90%
Delaware Military Academy
$51,499
$62,154
1.70%
Margaret Sterck School
$128,223
$57,610
4.20%
Early College High School
MOT Charter School
$203,214
$203,744
6.60%
$6,692
$12,381
0.20%
Newark Charter School
$282,763
$185,947
9.20%
East Side Charter School
$104,905
$67,773
3.40%
Odyssey Charter
$111,457
$51,705
3.60%
Family Foundations Academy
$164,095
Positive Outcomes Charter School
$37,924
$43,385
1.20%
First State Military Academy
$30,317
$21,890
1.00%
Providence Creek Academy Charter School
$40,307
$44,629
1.30%
First State Montessori Academy
$908,949
$556,308
29.50%
Sussex Academy of Arts and Sciences
$60,239
$69,046
2.00%
Freire Charter School
$88,684
$119,153
2.90%
The Charter School of Wilmington
$23,049
$65,675
0.70%
Gateway Lab School
$50,627
$23,975
1.60%
$185,083
$77,696
6.00%
Great Oaks Charter School
Thomas A. Edison Charter School
$126,556
$201,772
4.10%
Total
$3,085,970
$2,600,524
Howard T. Ennis Sr. Trainable School
$6,904
$4,404
0.20%
$210,014
5.30%
45
C O N TA C T U S
Contact Us The Division of Small Business team is knowledgeable, experienced and ready to help. Contact us today! Office Locations Dover (including Delaware Tourism Office) 99 Kings Highway Dover, DE 19901 (302) 739-4271 Wilmington 820 N. French Street 10th Floor Wilmington, DE 19801 (302) 577-8477 On the Web Email business@delaware.gov Website www.delbiz.com Facebook @delawaresmallbusiness Twitter @delbiz #delbiz Instagram @delawaresmallbusiness Division Leadership Director - Jordan Schulties Deputy Director - Regina Mitchell Business Finance Director - Amy Reville Tourism Director - Elizabeth Keller Communications Director - Jessica Welch Supplier Diversity Director - Shavonne White Special Projects Director - Patty Cannon 46
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