Free information on small business grants

Two-thirds of businesses formed today will be successful in several years, if trends continue, according to data from the U.S. Small Business Administration. "Fifty percent of startups will be in existence four years from now and another 17 percent will have had a successful exit," said Dr. Ron Cook, Director of the Small Business Institute at Rider University. So how do you ensure that your firm will be one of the survivors?

Both the federal and state governments have programs designed to help you succeed in business here in New Jersey. Several colleges and universities and private organizations are also out there to lend a hand. Taking advantage of the low-cost business consulting services these organizations provide is a good first step.

In addition, public and private grant and loan programs are available to the business owner/operators in need of funding. The U.S. Small Business Administration (SBA) and the New Jersey Economic Development Authority (NJEDA) together help to provide almost $900 million in lowcost loans each year to firms in the Garden State. Rates vary by program, as do terms, so contact the federal or state program through the Resource List provided below.

SBA also funds a variety of local organizations designed to give the small business owner a leg up. Some of these are the Small Business Development Centers (SBDCs), The New Jersey Association of Women Business Owners (NJAWBO) and the Service Corps of Retired Executives (SCORE). The NJEDA offers educational assistance to small businesses through its Entrepreneurial Training Institute (ETI).

Whether public or private, these organizations offer a variety of consulting services to specific industries, have specialized programs for womanand minorityowned businesses, and can help small business owners to either start or expand an existing firm.

Small Business Development Centers

There are 11 full-service Small Business Development Centers (SBDCs) in the state, plus 18 satellite offices. They offer free consulting to various kinds of businesses, provide management and technical assistance, and low- to no-cost training for small businesses. SBDCs refer firms to specialists-like attorneys, accountants and financial planning consultants. They are also developing a Spanish-speaking business program, according to Lorraine Allen, Regional Director at the Mercer/Middlesex SBDC. "We try to tailor the program to meet individual company needs," Allen noted. The Center covering Mercer County has trained over 1,300 business owners and managers over the last 26 years, Allen said.

Training provided ranges from basic bookkeeping, marketing, financing, hiring, customer service and taxation, to contracting, legal concerns, business planning, management skills, site location and leasing, manufacturing, and retail management. SBDC counseling and training are provided at The College of New Jersey in Ewing, and the Center partners with the NJ Department of Labor on human resource matters.

New Jersey Association of Women, Business Owners

The New Jersey Association of Women Business Owners (NJAWBO) offers one of the few grant programs available to local businesses-$5,000 grants to the top ten firms completing the Center's educational program by Sept. 30, according to Penni Nafus, Director of the Association's educational arm, the Women's Business Center, NJAWBO's services are not limited to women-owned firms.

"We concentrate on the business of doing business," said Nafus. "There is no discrimination on the basis of gender ... men also are welcome at the Women's Business Center." Programs range from financial assistance to educational programming about starting a business, marketing, technology and business law, to name a few.

SCORE

SCORE, the Service Corps of Retired Executives, provides free, confidential business counseling and mentoring, plus low-cost workshops and literature. SCORE counselors are local volunteers who have had experience operating a business in New Jersey. SCORE also makes available industry-specific support.

County Resources available to Small Businesses

The Mercer County Division of Economic Development has information on programs designed to assist small business owners in a variety of ways. According to its website, the County offers various financial and training options, in addition to numerous tax incentives available to businesses locating in Mercer County.

Firms moving to Mercer should consider taking advantage of the benefits provided to companies in the Urban Enterprise Zones located in and around Trenton. Tax credits of up to $1,500; subsidized unemployment insurance; sales tax exemptions; and other benefits are available to businesses in these zones.

Firms in the import/export business should consider locating within the Foreign Trade Zone (FTZ) at Mercer County Airport. "Within this zone, which is outside U.S. Customs territory, businesses may manufacture, assemble, package, test, grade, clean, mix, process, and exhibit merchandise while realizing a substantial duty and cash flow savings," according to the Division website. "No duty is required to be paid until the goods are moved in the distribution system for sale in the United States. If re-exported, no duty will be assessed on the merchandise."

Information on various grant programs is available through the Division, including:

* Business Relocation Assistance grants to reimburse businesses for relocation costs with the creation of a minimum of 25 new full-time jobs in the State. The grant can be for up to 50 percent of the total allowable relocation costs, or $200 per job created.

* Business Employment Incentive grants are available to businesses that create at least 25 new full-time jobs in an urban-aid community, or at least 75 new jobs elsewhere in New Jersey.

The Division also notes, "New Jersey's major utility companies provide a number of incentives, including flex rates, energy credits and rate discounts or waivers, for businesses that build or expand facilities and create jobs in New Jersey." Certain programs encourage the utilization of vacant industrial and commercial real estate. Other programs apply "off-peak employment" credits, to help those companies starting or resuming a second or third shift during off-peak hours.

Also available in Mercer County are the services of the Capital City Redevelopment Corp. (CCRC), which partners with the Trenton Downtown Association to offer grants of up to $9,000 for facade improvements and $10,000 for architectural plans. The third program offered to businesses locating in Trenton is a blended below-market rate loan program called Capital District Loan Pool. CCRC partners with NJEDA and any bank that does business in Trenton, to offer up to $3 million in financial assistance.

The Workforce Development Partnership Program, administered by the New Jersey Department of Labor, contains a customized training component, which is structured to meet the demands of an individual company's workplace environment. Financial assistance is available to qualifying businesses to help defray the costs of providing vocational and technical training to workers.

New Jersey Business Resources Centers (BRCs), provide services to small and mid-size employers and job seekers alike. BRCs "help companies navigate government agencies and non-profit organizations to find information about new business development, loan programs, child labor laws, general wage and hour information, labor market data, and permitting issues," according to, the website. The Center will screen and refer appropriate job candidates, provide on-site recruitment and screening, and offer on-the-job training for workers through Workforce New Jersey.

College and University Services

Several institutions of higher education in Mercer County offer consulting programs to local businesses. Students benefit from doing the work, and businesses pay little for services provided. One of the more in-depth programs available to local businesses is the Small Business Institute (SBI) at Rider University's College of Business. This Institute does intensive, one-on-one business consulting-at a cost of approximately $500 per client-as part of its academic programming in the small business/entrepreneurship disciplines, according to SBI Director Dr. Ron Cook.

The incubator, known as the Trenton Business and Technology Center, offers flexible office space, shared office services, free management support, and below market rental costs. Partnerships for Success programs include on-site offices of the Trenton Business Assistance Corp., and a program manager. The College also houses a recently opened conference center with professional meeting and event management services, in a state-of-the-art high-tech facility, providing live webcasting, satellite teleconferencing, global videoconferencing, and on-site technical support.