2022 SC SBDC Annual Report

Who We Are

South Carolina Small Business Development Centers by region

South Carolina Small Business Development Centers by Region

Winthrop Region

Florence

Myrtle Beach

Rock Hill

Clemson Region

Clemson

Greenville

Spartanburg

Greenwood

SC State Region

Orangeburg

Walterboro*

Georgetown* Union*

USC Region

Aiken

Beaufort

Charleston

North Charleston

Columbia

Hilton Head

Newberry Sumter

Lexington*

The South Carolina Small Business Development Centers (SC SBDC) advances the state’s economic development by providing entrepreneurs no-fee consulting services, affordable training programs and access to an array of valuable resources. The SC SBDC operates as a cohesive network, offering clients at every stage of the business life-cycle (from pre-venture and early-stage to established and mature) confidential access to the combined wisdom of about 50 professionals located in 20 centers throughout the state’s 46 counties.This collaborative approach establishes the SC SBDC as the preeminent provider of essential consulting services including business and strategic plan development, cash flow management, access to capital, loan packaging, diversification strategies, marketing/promotion and succession planning, to name a few. Underpinning these core competencies, the SC SBDC operates specialty programs fostering exporting, technology commercialization, government contracting, manufacturing, veterans’ business assistance, cybersecurity and minority outreach.

Thank you to our host universities.

1

Michele Abraham State Director, SC SBDC

2

Harry M. Lightsey III

Secretary, SC Commerce

3

Economic Impact & Advisory Board

4

& Network Updates

SC SBDC Annual Awards Client Success Stories

Message from SC SBDC State Director

Michele Abraham

For South Carolina’s small business community, 2022 was a year of many highs and lows. While the worst of COVID-19 was behind us, our relief of having survived the ordeal was short-lived by what the pandemic left in its wake. Ongoing supply chain disruptions, overwhelming challenges in hiring and retaining qualified staff, difficulty rebuilding and growing businesses, and inflation continued to exact an enormous toll on the lives and livelihoods of South Carolinians statewide.

Despite these repercussions, small enterprises persevered, remaining optimistic that the long and difficult road to recovery would lead to a brighter future. This positive outlook was not unfounded – many entrepreneurs started new businesses and numerous existing companies successfully expanded. Throughout their journey, the SC SBDC network was there, providing hands-on private consulting to 4,173 individuals and training workshops to 2,414 attendees. As a result, we helped clients create or retain 2,455 jobs, win $60.9 million in government contracts, start 206 new companies, and obtain $128.7 million in financing—a 43-year record.

Our consultants have a wealth of experience working with a diverse range of businesses in a vast number of industries. With a focus on growth, resiliency and success, they have consistently demonstrated the ability to drive positive change and help these businesses reach their full potential. Each SC SBDC team member has made a meaningful difference in the lives of those they assist, and they do it with professionalism and integrity. Author Steve Maraboli said, “Life doesn’t get easier or more forgiving, we get stronger and more resilient": this perfectly describes the experience we endured in 2022.

This report is filled with stories about our clients, data and highlights of key initiatives the SC SBDC undertook in 2022. I hope you will take a few minutes to read about these accomplishments.

Michele Abraham State Director SC Small Business Development Centers

Message from SC Dept. of Commerce

Harry M. Lightsey III

From record-breaking industry recruitment to our state's emergence as an electric vehicle powerhouse, 2022 was a year of historic economic growth and achievements in all corners of South Carolina. Capital investment soared to $10.27 billion, the uppermost in state history. That investment represents 120 announced projects and 14,083 new jobs. While domestic-based companies represented the majority of announced investments, overall foreign direct investment (FDI) in 2022 increased by 371% over 2021. And, while the state has been prosperous in recruiting new industries, existing companies continue to grow and thrive, expanding their footprints with equal vigor.

It's no accident that South Carolina is breaking economic development records. The Palmetto State consistently proves that our people are among the most talented and hard-working in the world and that we're committed to fostering a competitive business-friendly environment. Companies choose to come to South Carolina because they recognize we have the infrastructure to accelerate their growth and that there is no better place to live, work and raise a family.

The common thread in South Carolina's record-breaking approach to economic development is collaboration. That's the hallmark of South Carolina's success. Small business is a vital part of our economic landscape, accounting for 99.4% of all companies in the state. The SC SBDC is a crucial partner in driving the growth and success of our small and mid-sized businesses, and we rely on its services to help make this happen. By working together, we are providing companies in our state with the resources, connections and support they need to succeed not just today but for future generations.

Harry M. Lightsey III Secretary of Commerce

2022 economic impact

ADVISORY BOARD

Jim Rohrer, Board Chair, Senior Credit Team Lead, TD Bank

Gary Breit, Vice-Chair, Principal, Breit Ideas, LLC

Steve Bailey, CEO & Chairman, Merus Refreshment Services, Inc.

Cynthia Blair, Blair Cato Pickren Casterline, LLC

R. Cal Bruner Jr., Realtor, Century 21 The Moore Group

Mike Forrester, President/VP, Economic Development, Spartanburg Community College

Courtney T.R. Furman, President, Furman Architects

JoLee Gudmundson, President & Owner, Gudmundson Consulting

Rachelle Jamerson-Holmes, Owner, Thee Matriarch Bed and Breakfast

Frank Knapp, President & CEO, SC Small Business Chamber

Douglas Lineberry, Partner, Burr & Forman, LLC

Neil Rashley, Senior Vice President & Counsel, SC Bankers Association

Ray Reich, Downtown Development Manager, City of Florence

April Simpkins, President, HRS&S Consulting LLC

Chantal Fryer, Director of Business Services, SC Department of Commerce

Gregg White, Honorary Member, SC District Director, Small Business Administration

INTERNATIONAL TRADE: GAINING GROUND

In 2022, the Export Team led by Beth Smith worked diligently to reinvigorate the SC SBDC’s international trade program, offer expanded services and significantly raise awareness of our capabilities. In total, the SC SBDC’s three NASBITE-certified consultants (Beth Smith, Ben Smith and Tom Lauria) and other network consultants, devoted 246 hours to helping 54 clients expand their exporting sales. The result: 18 clients entered new foreign SC SBDC client M.G. Suber and Associates, currently exporting to 54 countries, was named the SBA’s 2022 Exporter of the Year.

markets, establishing a presence in countries ranging from Benin, Zambia, Nigeria, Chile, Luxembourg, South Korea and more. Additional international trade accomplishments include:

SC SBDC consultants Ben Calhoun and Jim Johnson are preparing to take the CGBP exam and become NASBITE-certified in 2023.

The Export Team conducted a five-part training series that attracted 61 attendees.

The SC SBDC currently has 330 clients that actively engage in exporting/importing activities.

STANDOUT 2022 ATTRACTS IMPRESSIVE CROWD

The Fourth Annual StandOUT business symposium, held on March 9th, 2022, was a resounding success, with 48 people attending.

The one-day event, designed for Women, Minority and Veteran small business owners, featured a robust agenda with educational presentations from five speakers on topics such as Intellectual Property, tips on Government Contracting and business opportunities with Clemson University, plus networking breaks and a panel discussion.

SC SBDC Procurement Specialist Sherry Pittinger conceived the idea for and organized the symposium, with support from the Clemson Region SBDC team (Andrea Galehouse, Earl Gregorich and Kostas Ioannidis).

StandOUT was one of the most amazing events I’ve attended. It gave me a chance to make connections that will enable me to take my business to an entirely higher level.

- Sonja Wilson, StandOUT Attendee

Millicent Bolden CEO Yvette’s Kitchen, LLC

Entrepreneurial Pathways is an excellent class that provided me with invaluable information. I am so glad I took the leap of faith and dived into the unknown.

PATHWAYS TO ENTREPRENEURSHIP

Since 2013, the Greenville Chamber’s Minority Business Accelerator (MBA) program has worked to increase the capacity of local, high-potential Minority Business Enterprises. As an advocate and integral partner of the MBA program for more than five years, the SC SBDC provides coaching and mentoring to cohort members.

In 2018, SC SBDC State Director Michele Abraham, SC SBDC Greenville Area Manager Earl Gregorich and MBA Program Administrator, Dr. Nika White designed a separate, customized curriculum enabling socially and economically disadvantaged small businesses to qualify for the MBA program (called Entrepreneurial Pathways or EP).

In 2022, the Columbia and Charleston Chambers began offering the MBA program, and the SC SBDC participated as mentors and conducted the EP program for all three programs. Led by SC SBDC consultants who serve as facilitators, the EP series comprises ten two-hour sessions that cover topics such as marketing, financial management, funding preparation, business planning and regulatory requirements. SC SBDC facilitators enrich the cohort-style learning experience by providing participants oneon-one consultations between sessions and helping them apply

what they learn in their businesses. Additionally, the SC SBDC provides participants ongoing support after the MBA concludes.

Since its inception, 45 participants have completed the EP training series, with nearly 20 percent advancing to complete the MBA program.

FASTTRAC© HELPS ENTREPRENEURS THRIVE

FastTrac© GrowthVenture™ teaches early-stage entrepreneurs how to access opportunities and develop growth strategies for their businesses. SC SBDC consultants assist the Lead Facilitator Tom Ledbetter of Midlands Technical College by providing participants access to content, templates, tools and private consultations as they progress through five robust modules. Upon completion, participants have fully developed their visions into viable strategic business plans.

FastTrac GrowthVenture helped me understand that I could help more people and expand my reach by working ON my business rather than just IN my business. The social connections I made while participating have been priceless.

Dezmond Sumter, MD Premier Physican Group, LLC

JANET GRAHAM NAMED SC SBDC STATE STAR

Myrtle Beach Area Manager and seasoned business consultant Janet Graham was named the SC SBDC State Star for 2022 and recognized in September with her peers at the 42nd annual ASBDC national conference in San Diego. Graham has dedicated 18 years to the SC SBDC as a business consultant, Winthrop region director, mentor, and

Known for driving results, Graham achieved new heights in 2021 when her clients applauded her passion with a 100 percent satisfaction rating. Moreover, Graham met or exceeded all

her KPI goals in 2022: she helped her clients start 18 new businesses, create or retain 350 jobs and obtain almost $3.4 million in capital.

Graham’s devotion to her colleagues, community, clients and teammates combined with her impressive performance reflects well on the SC SBDC and exemplifies why she was named the 2022 State Star.

CLEMSON: 2022 SBA CENTER OF EXCELLENCE & INNOVATION

At the annual SC SBDC awards ceremony, State Director Michele Abraham announced the Clemson Area SBDC as the 2022 Center of Excellence and Innovation. Abraham praised the center for being a valued partner

in the local small business community, driving innovative initiatives and generating outstanding measurable results that strengthen the economy.

The Clemson Area SBDC had a pivotal year, with Ben Calhoun stepping in as the new Area Manager when Ben Smith took the reins as Region Director. According to Abraham, Smith's "positive, can-do attitude" led the Clemson Area SBDC to weather the changes and challenges in 2021 and prove its excellence by constantly seeking ways to leverage resources that achieved win-win results. The team supported minority, veteran and women entrepreneurs, helping 129 clients obtain over $15 million in capital and create or retain 693 jobs.

Smith said that winning this award has validated the team's hard work and his conviction that if they "really master the basics of their work, everything else will follow."

SC SBDC ANNUAL CONFERENCE HIGHLIGHTS:

In June, SC SBDC staff converged on the Embassy Suites hotel in Columbia for the network’s two-day Annual Meeting. More than 50 people attended the all-hands event, the largest in-person gathering of SC SBDC employees since the onset of the pandemic in March 2020.

The highlight of the Network Meeting was the sit-down dinner and awards ceremony. In her post-event email to the network, State Director Michele Abraham thanked attendees for making the event both fun and productive. “We are a great group, an awesome team fully engaged in executing our mission to achieve our vision, and I am proud to be a part of our organization."

2022 MVP Winners

Clemson Region: Ben Smith

USC Region: Brent Hoover

Lead Center: Beth Smith

SC State Region: Brian Wheat

Winthrop Region: Janet Graham

Successful by design

In 2005, Jamie and Joe Ferraro collaborated to launch SKUTCHI Designs Inc., an office furniture manufacturing business started by the husband-and-wife team in New York and relocated to Myrtle Beach in 2009. SKUTCHI Designs Inc. is unique because it does its own millwork—reducing supply chain disruptions and enabling the Ferraros to create bespoke cubicles, dividers, conference tables and desk systems. These differentiators have helped the business to grow into a national, multi-million-dollar commercial contractor.

Industry: Furniture Manufacturing

Initial Challenge: Client needed to obtain the WOSB certification to give her business an advantage when competiting for government contracts.

Approach: The consultant helped her client obtain a WOSB certification and develop a business expansion strategy.

Results:

• Received WOSB Certification

• Financing Obtained: $700,000

• Total Contracts Awarded: $138,132

• 2022 Annual Sales: $5.3 million

• Jobs Created: 10 full-time

• Jobs Retained: 23 full-time

In 2016, with the aim of taking her company to the next level, CEO Jamie Ferraro contacted the Myrtle Beach Area SBDC where Business Consultant Bernita Platt helped her client obtain an SBA Woman-Owned Small Business certification that gave SKUTCHI Designs an advantage when competing for government contracts. She also referred them to SC SBDC government contracting consultant Linda Blanton, who informed the couple that to qualify for the GSA schedule and sell to the government, they would need to restructure their business by separating the retail and wholesale divisions. Thanks to Platt and Blanton’s teamwork, SKUTCHI Designs was awarded its first government contract from Picatinny Arsenal. Since then, SKUTCHI Designs Inc. has been awarded contracts

When the pandemic hit, SKUTCHI Designs Inc. was labeled an “essential business” to fulfill orders from organizations throughout the country needing to meet workspace and safety standards. In fact, the prestigious Walter Reed National Military Medical Center awarded the company a $77,132 contract to fabricate and install an entire COVID-19 Unit in only one week.

This increase in business helped finance SKUTCHI Designs’ relocation from a 30,000-square-foot facility to a spacious 60,000-square-foot, $3.5 million building and enabled them to begin accepting larger-scale contracts.

The company now struggles with new challenges: finding and retaining skilled labor to fulfill its orders. Thankfully, Bernita Platt is again lending her assistance by connecting the Ferraros with SCDEW and the Horry County Chamber—two agencies that can help the couple find qualified and reliable workers.

Looking forward, SKUTCHI Designs Inc. hopes to expand its wholesale division and its “Made in the USA” product lines while continuing to hire more staff and increase revenue. With the SC SBDC by its side, the business’s future looks brighter than ever.

Services Provided:

> Business Expansion Strategy

> SBA Certification

> Government Contracting

> Employee Management

“Bernita has a vast knowledge of government contracting, she’s been a valuable asset.”

Jamie Ferraro, CEO SKUTCHI Designs Inc.

by the FAA, US Air Force, US Army, Marine Corps Community Services and military bases nationwide.

A Man in Motion

Evans Kohn is a man in motion. Or, as his Columbia Area SBDC Business Consultant Allen Brown says, “Evans is always looking for the next opportunity.” Perhaps this explains Kohn’s impressive list of accomplishments: he retired from the Air Force Guard as a Senior Master Sergeant after a distinguished 26-year career, earned a real estate license while serving, invented a trucking route accounting software program, and launched three businesses, including founding Energi Transport in 2010.

Industry: Transportation

Initial Challenge: The client needed help with restructuring his business to reduce overhead and increase efficiencies so that he could sell his company for a sizable profit.

Approach: The consultant conducted a thorough analysis of the company and developed a four-pronged plan to generate revenue and increase the company’s value.

Results:

• Financing Obtained: $677,800

• 2022 Total Revenue: $1.8 million

While serving in the Air National Guard, Kohn worked in the Logistics Readiness Squadron as a Fuel Superintendent, where he managed fuel distribution for the Air Guard and Army Aviation. This experience was the genesis of Evans Kohn, the visionary and entrepreneur.

Kohn first visited the Columbia Area SBDC in 2019 when he needed assistance with restructuring Energi Transport to sell it in several years at a substantial profit. “Before meeting with Allen, I was trying to juggle too many ideas without a process for prioritizing them.” Kohn hoped Brown—a longtime business consultant and Veteran of the Army’s Transportation Corp—could help him develop a systematic approach to achieving his goals.

• Jobs Created: 2 full-time

• Jobs Retained: 15 part-time

After thoroughly assessing Energi Transport’s business model, internal processes and financial statements, Brown recommended a plan to increase efficiencies and reduce overhead that included the following: 1) regularly reviewing the balance between company drivers and owneroperators, 2) monitoring fleet operations performance, 3) effectively determining which hauling services Kohn could profitably offer, and 4) enhancing the company’s website.

Brown had devised a well-informed, innovative plan to revitalize Energi Transport, that is until the COVID-19 pandemic struck. Brown shifted his focus to helping Kohn apply for PPP and EIDL loans to compensate for lost revenue. Their quick response resulted in Kohn receiving $510,000 in EIDL loans and $167,800 in PPP loans. Brown helped Kohn invest these funds to sustain Energi Transport and pursue a complementary and potentially very lucrative new business venture.

Thanks to Brown’s wise counsel and the well-timed inflow of disaster funding, Energi Transport posted $1.8 million in 2022. Their combined objective is to continue growing and generate a healthy profit when Kohn eventually sells the business.

Services Provided:

> Industry Analysis

> Pivot Plan (Turnaround Plan)

> Loan Packaging

> Product Commercialization

> 8(a) Certification

“Allen takes a very logical approach when pursuing initiatives, whereas I’m more inclined to focus on the big picture. I just want to make things happen. Thankfully, Allen knows how to reign me in so that I move forward step-by-step rather than by giant leaps.”

Evans Kohn, Owner Energi Transport

Driven to succeed

Tequila Baxter has been fascinated with cars since she was a little girl. As an adult, she began working on vehicles with her husband Donnie who also is a “motorhead.” After having their second child, the couple decided to shift gears and pursue a different venture. Given their combined knowledge and shared passion

Industry: Automotive

Initial Challenge: After the launch of her business in 2019, the client was forced to close in March 2020 due to the pandemic. Client needed urgent assistance with qualifying her business as “essential” to re-open and recoup lost revenue.

Approach: Consultant introduced client to lenders and helped her apply for and receive relief funding to purchase new equipment and an adjacent building. Consultant also helped his client optimize payroll and supply chain processes, evaluate potential revenue streams and improve her bookkeeping system.

Results:

• Business Expansion

• Financing Obtained: $135,500

• Jobs Created: 4 full-time

• Jobs Retained: 4 full-time; 1 part-time

for vehicles, the Baxter’s decision to open Panthers AutoSource car dealership in 2019 felt pre-ordained.

From the beginning, Tequila Baxter’s top priority has been offering exceptional customer service, and unlike many auto retailers, Panthers AutoSource never sells cars over the book price, nor does it turn away customers with bad credit. The Baxters use this as an opportunity to explain to customers that they can improve their credit scores by making their payments on time. By early 2020, Panthers AutoSource was well on its way to becoming profitable—that is, until the onset of the COVID-19 pandemic.

Like many small businesses in March 2020, Panthers AutoSource was forced to close its doors. The Baxters were self-financing the business at that time, and Tequila knew that personal savings could only sustain it for so long. She realized that the most efficient strategy would be to qualify as an “essential business,” so Baxter contacted Greenwood Area SBDC Manager and Business Consultant Ben Calhoun.

Calhoun first helped Baxter update her business plan and then introduced her to local lenders. They evaluated funding options and submitted a request to the USCOG, from which Baxter recieved two loans

totaling $74,885. The Baxters used this vital cash infusion to buy equipment needed for servicing cars and an adjacent building they converted into a car detailing operation—two upgrades they could leverage as “essential services.”

Having achieved this coveted designation, Panthers AutoSource was able to reopen in February 2021. In addition to helping Baxter maneuver around the pandemic, Calhoun also helped her to refine her sales strategy, identify future revenue streams, convert to a more accurate record-keeping system, streamline supply chains, simplify payroll and, ultimately, improve her profit margins.

With the SC SBDC’s help, the Baxters are confident that they will reach—if not surpass—their $1 million sales goal by the end of 2023.

“Thanks to our consultant Ben Calhoun, we were able to secure the funding needed to expand Panthers AutoSource. As we continue to grow, we look forward to growing our relationship with the SC SBDC as well.”

Tequila Baxter, Owner Panthers AutoSource

A place for paws

When Wendy Boehm sees an opportunity, she takes it—and that’s what led her and her husband, Paul, to open a Hounds Town USA franchise in Spartanburg, a national chain providing pet services for dogs and cats. The Boehms had operated a business together before and “always kicked around the idea of starting something new.” It wasn’t until they needed to find lodging for their puppy—and couldn’t—that they considered opening a doggie daycare and boarding facility. The couple began researching existing franchise companies, as the benefits of a pre-established business model appealed to them more than starting a business from scratch. It became the obvious choice when they found Hounds Town USA Spartanburg.

Industry: Animal Boarding & Daycare

Initial Challenge: Client needed help with putting together a business plan to use to apply for financial assistance. Client also needed help conducting research to better understand the industry she was entering.

Approach: Consultant had the expertise the client needed to develop a comprehensive business plan that appealed to the lender. Consultant also provided the client access to valuable resources including the student research team who provided the client a detailed market analysis.

Results:

• New Business Started

• Financing Obtained: $640,000

• Total Sales (Mar-Dec 2022): $287,440

• Jobs Created: 2 full-time; 6 part-time

The couple first pursued this venture with support from the SBA’s SCORE program in Pennsylvania. However, after numerous family visits to their daughter in South Carolina, the Boehms decided to relocate to Spartanburg in 2020 to take advantage of the state’s lower costs and less stringent regulations. There, they sought assistance from the Spartanburg Chamber of Commerce, which referred the couple to the Spartanburg Area SBDC. Wendy Boehm had begun working on her business plan and found the process challenging, so she was relieved when Business Consultants Katrina Meeks and Ben Calhoun eagerly offered their expertise.

With help and encourgement from the two consultants, Boehm developed a comprehensive business plan

which she used to apply for financing. The $640,000 SBA loan she received enabled her to purchase and renovate the building she had found and provided her with working capital she could leverage once the business officially opened in February 2022.

In addition to helping Boehm make valuable connections with attorneys, contractors, banks and builders, Katrina Meeks also engaged the Clemson Region’s student research center on behalf of her client. At no cost to Boehm, the team of business school interns provided in-depth research on regional demographics and traffic patterns, which have helped Boehm make informed marketing decisions.

Hounds Town USA Spartanburg has become a thriving business in only two years. The Boehm’s owe some of that success to their opening date, February 28th, a few weeks before spring breaks, the Easter holiday, Memorial Day weekend and summer vacations—back-to-back occasions when pet owners need to board their furry friends. With the SBDC’s continued support, the Boehm’s are looking to open another location in the future.

“Katrina was a lifesaver when it came to the business plan. It was just one of those projects that I felt like I was up to my neck in. I didn’t know what direction to turn; she was very helpful.”

Wendy Boehm, Owner Hounds Town USA Spartanburg

Services Provided:

> Business Plan Development

> Marketing Research

> Financial Projections

> Access to Lenders

Making a splash

With 25 years of experience in mechanical engineering, Matt Westergard stepped into the roles of COO and Co-Founder of Secure Process Intelligence, LLC (SPI) with the know-how and passion to bring the company’s remote water-testing technology into the commercial space. Although SPI’s

Industry: Cloud Technology

Initial Challenge: Client’s business was growing steadily, but he needed help identifying new opportunities and establishing the connections needed for funding, partnerships, and expansion.

Approach: The consultants introduced the client to potential partners and helped the client become a member of the SCRA, through which he is able to network and apply for additional funding.

Results:

• Financing Obtained: $100,000

• Total Annual Revenue (2022): $253,000

technology started out as little more than a side project by Gerhard Greeve, Westergard’s friend and future CTO, they saw an opportunity to monetize a revolutionary product. It was their combined experience and industry knowledge that gave them the confidence to launch their company in 2021.

In business terms, SPI was an overnight success. There was high demand for the company’s technology, allowing municipalities in various industries to measure the composition of water, oil, gas, and other commodities upon extraction through a wireless, automated cloud system.

• Annual Revenue Increase: $73,000

• Jobs Created: 1 full-time; 3 part-time

“It’s an end-to-end solution,” Westergard said. “We provide the hardware, software, cloud connectivity and even the dashboard you see on your phone. Everything you need is in one place—so you don’t have to work with several companies to achieve the same result.”

SPI’s solution was solving many problems for its clients, but by 2022 Westergard was struggling to grow his business. Identifying potential clients, partners and investors was an ongoing challenge, as was making the connections needed to advance SPI’s financial and networking interests. When a friend introduced Westergard to Rock Hill Area SBDC Business Consultant John Blomberg, he was ready to accept the help—and the two have been working together ever since.

Blomberg introduced Westergard to several new contacts, including companies that have since become SPI partners and clients. Blomberg also helped Westergard with his financial forecasting, sales projections

and connected him to First Community Bank where Westergard received a line of credit to purchase needed equipment—an impressive feat for any small business with little to no starting capital.

Blomberg also introduced him to fellow SBDC Business Consultant Kevin Wier, who helped Westergard become a member of the South Carolina Research Authority (SCRA). Thanks to Wier’s connections, SPI is now a member of the SCRA and has access to networking events, investment opportunities, non-dilutive grants and more. Thanks to the SC SBDC’s assistance, SPI has strengthened its local and regional industry connections and is on a path to triple its revenue in 2023.

industry.”

Services Provided:

> Financial Projections

> Loan Application Preparation

> Access to Resources

“Matt and Gerhard’s ability to identify and meet the needs of industrial organizations has been key to their success and is propelling them to the forefront of the

John Blomberg, Rock Hill SBDC Area Manager and Business Consultant

Sustainable and humane farming

Marc and Annie Filion are the proprietors of Keegan-Filion Farm, a 100-acre parcel of land in Walterboro first farmed by Annie’s great-grandfather in the 1930’s. Today, the Filions use the same methods employed by its founder: pasture feed all animals, use antibiotics for medicinal purposes only, practice sustainable farming and adhere to Certified Humane practices. For them, farming is more than a business; it’s a traditional lifestyle that values family and honors the animals that sustain their livelihood.

Industry: Agriculture

Initial Challenge: Client sought to grow revenue by increasing the value of his products and expanding farm operations.

Approach: Consultant helped his client apply for a USDA Value-Added Producer Grant (VAPG), and adapt his business model to include new revenue streams.

Results:

• PPP Loan: $18,500

• USDA Value-Added Producer Grant: $250,000

• Operating Loan (Ag South): $150,000

• 2022 Annual Sales: $1,020,000

• Jobs Created: 2 part-time

• Jobs Retained: 8 full-time

“I wear the mantle of two demanding jobs: small business owner and farmer,” Marc Filion said. “There is no ‘down time’; and many nights I wake up at 2 am wondering how I’m going to accomplish everything that needs to get done.”

So, when SC SBDC Region Director and Business Consultant Jim Johnson encouraged Filion to apply for a Value-Added Producer Grant sponsored by the USDA, Filion welcomed the suggestion. “If approved, the Filions could be awarded a $250,000 working capital grant to help them generate new products and expand marketing activities,” said Johnson.

Johnson guided the couple through the grant process, helping them develop their business plan, P&L statement, three-year pro forma and submit their application prior to the pandemic.

When COVID-19 forced restaurants to cease dine-in options, the Filions filled the void with their home delivery service. The result: weekly orders soared from 25 to 120 and generated much needed income. In 2020, they used their $18,500 PPP loan to retain staff and hire two additional part-time workers to keep up with demand.

With Johnson’s help, the Filions finally received a $250,000 VAPG loan valid for three years—money they desperately needed to sustain the pillar of their business; pork processing. Two loans from Ag South were later awarded.

Services Provided:

> VAPG Loan Application

> Business Plan Development

> Ecommerce

> Marketing Strategy

> Succession Planning

Today, Keegan-Filion Farm has a more agile business model that generates revenue through five channels. By adapting his business, Filion surpassed his 2022 revenue goal by 128 percent, exceeding $1 million.

The Filions plan to pass the business to their son and his wife, and continue working with the SC SBDC on enhancing their business model in order to support the next generation and remain profitable.

Jim, there is no way I would have attempted, let alone completed, such an extensive undertaking.”

Marc Filion, Owner Keegan-Filion Farm

“The grant process is not for the faint of heart. Even with my farming and business backgrounds, if not for

Orangeburg Area SBDC Client

A prescription for success

After 20 years in the pharmaceutical industry, Stephanie Wise, PharmD, M.S. has developed a passion for helping people achieve better health. Wise has remained steadfast in this mission, but it wasn’t until her previous employer was bought by a larger organization that she realized the Midlands needed a local, longterm care establishment. It was ultimately this unplanned career transition that inspired Wise to establish Oasis Pharmacy Services, LLC.

Industry: Pharmaceutical

Initial Challenge: To apply for SBA funding, the client needed help with developing her business plan— specifically the financial portion.

Approach: Consultant helped his client organize financial projections, including start-up costs and a payout schedule. He also assisted with licensing and insurance paperwork, as well as industry and competitive analyses.

Results:

• New Business Started

• Financing Obtained: $755,000

• SBA Loan: $667,000

• Jobs Created: 4 full-time; 3 part-time

Although Wise already had the technical skills to operate her own pharmacy, she was unfamiliar with the lengthy process (and extensive requirements) associated with launching a new business. Completing financial projections and a business plan were just some of the many challenges that she faced—and even working with a pharmacy-specific CPA still left Wise feeling uncertain about how to move forward. Fortunately, she had an experienced entrepreneur in her family who suggested she reach out to the Columbia Area SBDC for help; and that’s how she connected with Business Consultant Allen Brown in late January 2022.

With her consultant’s support, Wise was able to tackle numerous obstacles head-on. Primarily, Brown assisted his client with organizing the financial portion of her

business plan—a critical step if she wanted to successfully apply for funding. Not only do pharmacies have significant start-up costs, but there are only two pharmacy-specific start-up lenders in the country, so Wise knew her financial projections would need to be both detailed and accurate if she wanted her applications to

be taken seriously. And she was—with Brown’s guidance, Wise was approved for an SBA guaranteed loan through First Financial Fayetteville, Arkansas, enabling her to fund the building lease and purchase the needed equipment for her pharmacy by August of 2022. Brown also helped Wise conduct industry and competitive analyses, and complete licensing and insurance paperwork.

From the beginning, Wise’s intention was to build a business that would offer new and innovative ways to enrich the lives of patients, and thanks to the Columbia Area SBDC, she is moving closer everyday to reaching this goal. In the future, Wise is planning to increase the capacity of patients she can serve, and also hopes to offer in-house lab work, among other critical services. With her consultant Allen Brown by her side, the business outlook for Oasis Pharmacy Services is bright.

Services Provided:

> Business Startup Assistance

> Business Plan Development

> Marketing Research

> Financial Projections

> Loan Application Preparation

“Allen not only helped develop my financial projections, but he also made sure that I understood what these financial statements meant and how to interpret them so that I could apply this knowledge going forward.”

Stephanie Wise, Owner and Pharmacist-in-Charge Oasis Pharmacy Services, LLC

$486,000 2022 TOTAL REVENUE $65,000 TOTAL EIDL LOANS

PRE-CORONAVIRUS BUSINESS SITUATION:

When Mike and Nancy Reilley moved from Kansas City, Missouri to Beaufort, South Carolina in 2015, Mike started selling his signature Brunswick Stew at local markets and street fairs as a semi-retirement passion project. But, as KC Mike’s’ dishes quickly turned Beaufort foodies into loyal customers, the Reilleys decided to turn the successful side hustle into a stationary restaurant.

The Reilleys’ business quickly boomed; and by late 2019, they were managing three locations. They contacted Beaufort Area SBDC Business Consultant Martin Goodman for guidance; and he advised the business-savvy couple to close their original roadside stand. This ultimately allowed the Reilleys to invest more time in their newest location, where sales were growing 7-10% weekly. With help from the SC SBDC, the future of KC Mike’s Smokin’ was brighter than ever—that is, until the COVID-19 pandemic forced the restaurant to close.

$25,000 SC CARES ACT GRANT 17 TRAINING EVENTS ATTENDED

CHALLENGES ARISING FROM THE COVID-19 PANDEMIC:

The pandemic forced KC Mike’s to rely solely on carry-out sales to stay afloat, and even when the restaurant was allowed to re-open, many customers were too nervous to dine in. Cancellations of in-person events also cost KC Mike’s its catering business, and the general decline of tourism in Beaufort meant the restaurant was seeing far fewer customers than expected in the summer months. The ensuing financial strain was taking a massive toll on Mike and Nancy’s business, and the couple feared they would soon have to use their personal retirement savings to pay bills, rent and payroll. So, they returned to SC SBDC for assistance.

RESPONSE AND RECOVERY:

15 JOBS RETAINED

To help his clients successfully apply for disaster relief loans, Goodman encouraged them early on to assemble essential documents. His foresight led to the Reilleys receiving a $30,000 EIDL loan and a $25,000 CARES Act grant. The Reilleys were awarded these two loans without hassle, but when Nancy Reilley attempted to apply for an EIDL increase in 2022, she ran into several roadblocks. Goodman then referred her to fellow consultant John Gethers, the SC SBDC’s CARES Act specialist. Gethers used his expertise and network connections to resolve the issues, and the Reilleys finally received a $30,000 EIDL loan increase in January 2022.

“Working with both Martin and John during the pandemic has enabled our business to survive and begin to grow again as we move to a new normal,” said Reilley

BUSINESS OUTLOOK:

“The SC SBDC has been and continues to be a great partner for our business!”

KC Mike’s Smokin’ is once again bustling with diners. “As hard as it is to start and maintain a small business, the SC SBDC can really help entrepreneurs beat the odds and make their small business into a success story.” The Reilleys plan to continue relying on the SC SBDC for help growing their restaurant.

KC MIKE’S SMOKIN’ LLC

Columbia & Beaufort Area SBDC Client

$1 MILLION 2021 ANNUAL SALES

PRE-CORONAVIRUS BUSINESS SITUATION:

$531,000 TOTAL (2) EIDL LOANS

When Tom and Octavia Edwards first established Acute Heating & Cooling in 2016, the couple operated the business exclusively from their home. However, a growing list of clients eventually increased their need for office space, so the Edwards’ contacted the SC SBDC for guidance. With help from former USC Region Director Darrell Jones, the couple revamped their existing business plan to reflect their company’s expansion and forward goals. Jones also helped his clients secure a $50,000 loan, which enabled Acute Heating & Cooling to move into a new 1,200-square-foot location. With this infusion of cash supporting the business’s rapid growth and the anticipated revenue increase, the company’s future seemed bright.

CHALLENGES ARISING FROM THE COVID-19 PANDEMIC:

JOBS RETAINED

The COVID-19 pandemic pushed most of the Edwards’ “non-emergency” projects to the backburner, costing the company nearly 25% of its business. Nuanced government regulations also made it difficult for Acute Heating & Cooling to obtain financial assistance, so the couple used their personal savings to keep their business afloat. This was stressful for both Octavia and Tom, so again they contacted the SC SBDC. The couple was relieved when they met Business Consultant and CARES Act funding specialist John Gethers, who was eager to help the Edwards’ obtain the additional grant money they needed.

RESPONSE AND RECOVERY:

Because of his rapport with members of the SBA’s South Carolina district office and his vast experience with the process, Gethers was able to expedite the preparation of his clients’ loan application. In February 2022, the Edwardses received an EIDL loan for $357,400 and were approved shortly afterward for the maximum loan amount—increasing their award by another $173,600. This infusion of cash allowed the couple to retain their workforce and recover most of the money they had personally invested.

“John came into our lives not a moment too soon,” said Octavia Edwards. “He became our advocate and kept our hope alive.”

BUSINESS OUTLOOK:

Since its remarkable rebound, Acute Heating & Cooling is once again focusing on expansion. The Edwardses are hiring additional staff to meet an increasing demand for their services, revising their marketing strategy and hoping to diversify their clientele by pursuing commercial accounts. The couple is optimistically projecting annual revenue for 2022 to reach $1.7 million and plans to continue relying on the SC SBDC for support.

“Octavia is persistent, professional and definitely has her finger on the pulse of their business and industry,” said Gethers.

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“We can’t thank John Gethers enough for all the countless hours he put in to ensure that we received the EIDL funding we needed to enable our business to recover from the pandemic.”