The FundBook ID State Edition
Helping communities find the federal funding they need.
The View from Idaho State In 2010, Idaho companies exported a near-record of $5.2 billion worth of products worldwide. Idaho’s first quarter 2011 exports hit $1.5 billion, 25 percent over the first quarter of 2010 and the strongest quarter since the state began tracking these dollars in 1996. Export leaders included semiconductors, agricultural commodities, industrial machinery and capital goods, fertilizers and mined minerals. The nearly 25 percent growth in exports is outperforming the national average by more than 7 percent, compared with the previous year. International business is an essential part of Idaho’s economy. The Idaho Department of Commerce’s International Business Division’s goal is to identify prospects for Idaho products and services in international markets. Their customized services help companies capitalize on these opportunities by offering export/import counseling, market research, coordination of trade missions and trade shows. Incoming purchasing delegations and Idaho’s trade offices in three foreign countries are also supported. Learn more at http://goo.gl/FHljv The overall strength of exports for Idaho can be seen through a kaleidoscope of benefits: • Companies that export grow faster and are 8.5 percent less likely to go out of business. • The world’s purchasing power is 70 percent outside of the United States. • Export related jobs typically pay 15 percent more than the average. • International sales allow companies to diversify and reduce risk. • Powerful economic development happens when dollars flow in from out of state rather than from within the state. • International sales volumes may produce decreased production costs and increase a company’s competitive advantage. • Idaho’s and the USA’s competitiveness is enhanced worldwide p. ~ The Fundbook - ID | June 2011
• 95 percent of the world’s consumers live outside of the United States. • Free trade agreements are opening up new markets in Australia, Chile, Singapore, Jordan, Israel, Canada, Mexico, and Central America creating new opportunities for proactive Idaho companies.
Should small exporting?
Many believe that exporting is only for big businesses. In fact, 97 percent of US exports are from small to medium sized businesses. Many also believe that exporting is too complicated for a small business to explore. However, with a commitment of time, higher-level support, and patience, a small company has an excellent chance of succeeding in the world market. There are resources for making the leap onto the world business stage. The trade experts at the Idaho Department of Commerce will help guide and assist you in making exports a successful part of your business.
Is exporting for you?
Resources for local and county policy makers, economic development organizations and small business Building your international export company FAQ and resources: http://goo.gl/OYgaV Export Readiness Questionnaire: http://goo.gl/DOMYz International Business Contacts Idaho Trade Specialists are available to help companies export products and expand market share by providing personalized on-site counseling and support. In addition to staff consultations, managers from Idaho’s international offices visit the state each year and offer country-specific guidance and direction to individual companies. Contact them at http://goo.gl/28bhP
Bright Star Grant Consultants, Inc. 810 Victorian Dr, Coeur d’ Alene, ID, 83814 (208) 964-0402 firstname.lastname@example.org www.brightstarconsultants.com
Bright Star Grant Consultants is a full service capacity building firm. Supporting government agencies, non-profits, and universities with: • Fund, resource, and program development • Strategy and expansion • Assessment and evaluation • Training and Coaching
Grants are the cornerstone of building a diversified funding portfolio
Sample Consultation Feasibility Study: Preliminary Non-Traditional Grant Funding Strategy: City of Pinehurst, Idaho Role: Research and development of deliverable documentation that included non-traditional grant seeking strategies, organizational readiness evaluation, readiness task list, strategic alliances profiles, and recommendations.
Bright Star Grant Consultants worked carefully to understand the needs of our projects and community and provided creative funding opportunities that will expand the reach of our projects and increase our sustainability. - Principal, Terra Graphics Engineering (www.tgenviro.com)
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Grant Writing on the Edge
Advanced grant writing tools and tips for government entities, schools and non-profits. Before looking for grants to support small business exports, investigate finance options for your business to secure a match, increase your leverage, and sharpen your business plan. Many options are available depending on the annual sales, international market, type of financing structure and financial institution. International Trade Specialists are available through the Idaho Department of Commerce to identify the best options for your business and connect you with the appropriate lenders, brokers and financing professionals. U.S. Department of Agriculture options consult the Foreign Agricultural Services financing programs at http://goo.gl/Hy8o4 Export-Import Bank of the United States • If you need working capital above $1.1 Million, then consider Ex-Im Bank’s working capital guarantee program. It enables U.S. exporters to obtain loans to produce or buy goods or services for export. These working capital loans, made by commercial lenders (see http://goo.gl/n8dx6 ) and backed by guarantee, provide you with the liquidity to accept new business, grow your international sales and compete more effectively in the international marketplace. • If your foreign customer needs financing, then consider Ex-Im Bank’s loan guarantee for international buyers. With it, international buyers are able to obtain competitive term financing from lenders when financing is otherwise not available or there are no economically viable interest rates on terms over one-to-two years • If your foreign customer needs fixed rate financing to purchase U.S. goods and services, then consider Ex-Im Bank’s Direct Loan program. This loan to an international buyer is generally used p. ~ The Fundbook - ID | June 2011
for financing purchases of U.S. capital equipment and services, and exports to large-scale projects. • If your foreign customer of U.S. capital goods prefers lease financing as an alternative to traditional installment loans, then you should consider Ex-Im Bank’s Finance Lease Guarantee program. Ex-Im Bank will guarantee lease financing to creditworthy international lessees, both private and public sector, when financing is otherwise not available or applicable interest rates are not economically viable. Go to the ExportImport Bank website here: http://goo.gl/0pkNr Small Business Administration options • If you need working capital up to the $2.0 Million level, then consider SBA’s Export Working Capital Program. It provides short-term, transaction-specific financing to small business exporters. Exporters may use this program for pre-export financing of labor and materials and post-shipment financing of the accounts receivable generated from these overseas sales. • If you need to finance your export-related production activities, then consider SBA’s Export Express loan program. It helps small businesses that have exporting potential, but need funds to buy or produce goods, and to provide services, for export. For more information, go here: http:// goo.gl/3X5N4 • If you need to upgrade your facilities to be more competitive then consider the SBA’s International Trade Loan Program. It helps small businesses seeking to expand their operations or help those adversely affected by competition from imports. Go here http://goo.gl/Gdzkc for the program or here http://goo.gl/B0jDi for the Small Business Administration website.
Notes From the Field
Innovative exports from Idaho can be seen through the example of PCS Edventures. PCS spans the globe with presence in all 50 United States and 13 countries worldwide. Originally started in the garage of a school teacher in a small rural town in Idaho, products and services bring a unique approach to education to the entire spectrum of users from Preschool through Higher Education. Product lines range from hands-on learning labs in technology-rich subjects like engineering, science, math, robotics, IT, and electronics to administrative tools designed to help schools manage the enormous amounts of data required in day-to-day school administration. Learn more: http://goo.gl/wDhL3
Ground Force Manufacturing is located in Post Falls and began working with the US Commercial Service for assistance in increasing their international sales in 2004. To accomplish their goal, Ground Force participated in trade shows in China and Chile with the Idaho Department of Commerce. They also participated in trade missions with the Governor to Mexico and Asia, and personally met with distributors in various markets to ensure maximum visibility. As a direct result of exporting, Ground Force Manufacturing has created new jobs for their company. Ground Force Manufacturing designs and manufactures a wide variety of heavy-duty truck bodies and accessory equipment primarily for the mining industry. Learn more here: http://goo.gl/qROuG
This article was contributed by Janet Bourque of Bright Star Grant Consultants. Bright Star is very knowledgable of the grants and funding territory in ID and works with local governments and non-profits on grants-related services and capacity building there.
June 2011 | The Fundbook - ID ~ p.
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for the FundBook today and join a growing list of cities and counties that are maximizing their ability to secure federal funding. Plus, check back with us soon as we grow our capabilities at the state-level! p. ~ The Fundbook - ID | June 2011