INTRODUCTION 

Recently, Wisconsin received a grade of 'A' from a national association for its business development climate, The state received only a "C' for business creation, though. The association based its A' rating on the many government sponsored or supported programs and services offered in the state to help businesses get started and to grow. So why did the state receive only a "C" for business creation?

There are at least two reasons for the low grade on business creation. First, Wisconsin does not have the same level of private capital available to invest in start‑up or entrepreneurial enterprises that other states have. Second, there are so many programs in the state to assist business development that it is often daunting for a new or early stage entrepreneur to find or even know about the most appropriate resources.

The fact that it is hard for entrepreneurs to find resources is due only in part to the number of options available. The options also change regularly. State supported financing programs have funding cuts or change the criteria for consideration depending on the direction political winds blow. New program leaders take their agencies in different directions. The needs and interests of entrepreneurs change with the changes in the marketplace, technology, social, cultural or regulatory environments. 

It is also true that people are bombarded by information in our society. People have to shut out some of the clutter in order to get at what they want at the moment. So even though there are plenty of opportunities and channels for learning about the resources available to assist small business development, people tend not to hear that information until they actually need it. i have no illusions that the entire presentation today will stay with all of you. ft is fortunate that it is in written form as well so that this report may serve as a reference for that time when you have a question about what resources are available. 

Finally, I also have no illusions about my ability to present detailed data on every program in existence at the present time in Wisconsin. I may miss your favorite program or give it only cursory attention. Please take no offense. While I will lay out major program areas and agencies, my main aim is to give you some insight into how to access information for your later, focused use. 

FEDERAL GOVERNMENT PROGRAMS 

The scope of this report focuses on small business development assistance programs in Wisconsin. There are a variety of federal programs that provide both financial and technical assistance. However, since there are more than enough program areas to talk about just within the state of Wisconsin, I will limit my discussion of federal programs to just two that are probably the most significant in terns of local impact.

First, the Small Business Administration in Wisconsin is highly active in providing loan guarantees. To understand the difference between a loan guarantee and a direct loan it is useful to think of the SBA as more of an insurance agency than a lending agent. A loan guarantee is support to a local bank to back up its loan to a small business owner.

If a small business person is unable to across capital elsewhere, they may ask a local lender ff the bank would be willing to participate in a loan guarantee with the SBA. If the SBA makes a decision to provide a guarantee (based on the applicant's business plan and other good loan making criteria) they have pledged support to the lender for 75% to 90% of the value of the loan should there be a default. The loan would still be the bank's to decide upon and to service. The borrowers relationship is with the bank, not the SBA.

The other major federally supported program locally is the Rural Community Economic Development office with state headquarters in Stevens Point. The RCED provides a similar kind of guarantee program for loans that the SBA offers. A key difference is that RCED guarantees are not subject to the same kind of business size and dollar restrictions of the SBA guarantee program.

Further information on the guarantee programs of either of these agencies is available through a local lender. You can also find information on these and many other financing programs mentioned in this report by calling the Department of Commerce to order a summary booklet on Wisconsin Financing Alternatives. The book is available at a nominal fee by calling 808.288.3224 and placing an order. 

WISCONSIN DEPARTMENT OF COMMERCE 

On July 1, 1998, the former Wisconsin state Department of Development became the Department of Commerce. Unlike its predecessor ,the new Department is referred to simply as "Commerce" rather than the DOC. The DOC is the Department of Corrections. Mixing the two agencies in written references carries more ironic implications than anyone in state government is comfortable with. The programs in this section summarize what Commerce offers the state. 

Because of the size and complexity of Commerce, it is useful to think of two major types of assistance offered: financial and technical. Commerce is probably best known for its financial assistance so we begin there. 

At this point it is necessary to point out that financial assistance from the state comes mainly in the form of loans. While there are some limited programs that may have loans which can be forgiven under highly specific circumstances, they are the exception. There is no pot of "free money' the state will give to people to start their own small businesses. 

All of the financial assistance programs offered by Commerce are funded by state taxpayer dollars. Naturally, that implies a "best public policy' set of criteria for making investment decisions. Helping individuals to start personal businesses is not in the best interest of the state as a whole. So some of the criteria for loans include: 

       the project must serve a public purpose

       the project must retain or increase employment in the state and must not displace workers in the state

    the project could not occur without state assistance

      financing is not readily available from other sources

      an equity investment of at least 25% is required from the loan recipient

      proceeds of the loan cannot be used to pay overhead costs 

Commerce offers a wide variety of financing programs. Some of the most popular or well-known include: 

        the TECHNOLOGY DEVELOPMENT FUND ‑ for firms developing product or process innovations in cooperation with a UW‑System or other graduate school

        the ECONOMIC DEVELOPMENT FUND ‑ for non‑urban municipalities seeking funding on behalf of a business. This is not directly available to entrepreneurs

       the RURAL ECONOMIC DEVELOPMENT FUND ‑ for small businesses in nonurban areas needing support for planning and managerial assistance. More about this program below

       the MINORITY BUSINESS DEVELOPMENT FUND ‑ used by minority owned firms for early stage planning or acquisition of an existing business. 

I have used the Rural Economic Development (RED) fund with several Small Business Development Center clients locally. The program is ideal for obtaining funds with which to pay for market research or business planning which would otherwise be unaffordable for a new or small business. It is critical to recognize that these funds are not for assets, but for the development of planning tools. This fits in well with the SBDC since we can teach someone how to do market research, for instance, but the owner may not have time to actually conduct the research personally. Getting an outside perspective through the research is also beneficial. 

Technical assistance is also available through Commerce. Technical assistance may take the forth of advocacy for particular small businesses with k>an committees, or assistance with filling out applications for loans, or assistance learning how to manage a business more effectively. 

There are seven regional Area Development Managers that act as a first line of local contact with the technical assistance programs of Commerce. In our area, Mary Jo Carson is that contact. She has offices in the Plover village offices and can be reached at 715.345.5303. Her offices also serves as an entry point to the variety of technical assistance programs at Commerce. 

Some of the main business areas where technical assistance is provided by Commerce include: 

       WOMEN'S BUSINESS SERVICES ‑ for the fast growing number of businesses owned and operated by women

        the BUREAU Of INTERNATIONAL DEVELOPMENT ‑focusing on the enhancement of Wisconsin businesses working to both export and import products

        the BUREAU OF MINORITY BUSINESS DEVELOPMENT ‑ concentrating on assistance to minority owned enterprises in the state

       the WISCONSIN SMALL BUSINESS INNOVATION RESEARCH (SBIR) SUPPORT PROGRAM ‑ designed to assist more Wisconsin small businesses in the successful pursuit of federal SBIR funds. SBIR funds provide financing for technical innovations and the Commerce program will review and sharpen proposals prior to submission

     the WISCONSIN DEVELOPMENT ZONE PROGRAM ‑ assisting businesses with tax incentives to locate or expand in specifically targeted development zones within the state 

QUASI‑GOVERNMENTAL AGENCIES 

There are two major agencies that support small business development and have governmental connections in funding sources but operate more like independent entities. They are the Wisconsin Housing and Economic Development Authority (WHEDA) and Community Action Programs or CAP Services. WHEDA offers primarily financing assistance while CAP offers both financial and technical assistance programs.

Key programs of WHEDA include:

        THE LINKED‑DEPOSIT LOAN PROGRAM ‑ fostering short‑term interest rate buy downs for minority and women‑owned businesses

        THE TOURISM FUND ‑ targeting tourism or tourism related businesses

        THE TARGET AREA FUND ‑ supporting business development in economically distressed or rural areas of the state 

CAP Services, Inc. In our area offers both technical and financial assistance for small business development. Locally, CAP offers incubator space for new or spin‑off businesses. Incubators are designed to house fledgling operations and give them a start in space that would otherwise be too expensive to make a start‑up operation feasible. Typically, incubators provide support services such as clerical support or computer and other office equipment which is shared. The CAP incubator in Stevens Point is relatively small compared to other operations in Wisconsin Rapids, Wausau, and CAP's own. operation in Wautoma. (For more information on incubators in Wisconsin and eligibility see Wisconsin Financing Alternatives). 

Financial assistance from CAP comes in the form of short‑term bridge loans or small asset based loans. For more information on the many business development services of CAP Services, Inc., contact Karl Pnazek at 715.345.5200. 

LOCAL ECONOMIC DEVELOPMENT PROGRAMS

Local economic development programs also take the form of either financial or technical assistance and sometimes both. Because there are so many local programs and because eligibility requirements and funding can change, it may be best to simply list the types of local economic development agencies. A call to any of them will yield specific information about that set of support programs.

First, begin with area Chambers of Commerce. Wisconsin Rapids, Marshfield, Wausau, and Stevens Point all have active Chambers or business associations. All have small business councils or committees made up of volunteer small business owners. These councils coordinate and offer educational programs, business fairs, round table discussions, and liaison with governmental officials in order to influence policy. Inquiring as to membership or membership services of local Chambers is an excellent way to tap into local resources for small businesses.

The Central Wisconsin Area Economic Development Council coordinates economic development activities in Adams, Wood, and Portage counties. Contact with the council can be made through Chambers of Commerce in each county.

Marathon County is the most industrialized county in the region and houses its own area economic development agency, Marathon County Economic Development Corporation. McDevco offers a revolving loan fund and site location assistance for new major economic development initiatives. They are housed at the Wausau Chamber of Commerce offices and can be reached at 715.845.6231. 

Stevens Point also has a revolving loan fund for businesses located within the city limits. A revolving loan fund earns its name because as original loans are paid back to the lending authority money becomes available to lend to another borrower. With a single original fund many small business initiatives can be supported. 

The Stevens Point fund, like other regional revolving loan funds, targets business development with a public policy impact. That is, job creation is at the core of the decision to make a loan. Incentives are provided for hiring low or moderate income people. A call to the city's Community Development office at 346.1567 can answer specific questions. 

Finally, there are individual community based groups designed to foster business development. One such example is the local chapter of the statewide network of Wsconsin Women Entrepreneurs. This is a group of women business owners that meet regularly to share business management information. The group provides mentoring for newer business owners by matching them with more experienced business owners. The effort is largely educational, but the support of peer interaction is also important for business development. For more information on the local chapter, contact Vicki Lobemieier at the UW‑Stevens Point Small Business Development Center at 715.348.3838. 

SOURCES OF EDUCATIONAL AND TRAINING ASSISTANCE
 

The two major post‑secondary educational institutions In the state are the Wisconsin Technical College System and the University of Wisconsin System. In the not too distant past, these systems saw themselves as more likely to be competitive than collaborative. Times change and so have the perspectives of many in both systems. While the Technical College System tends to focus more on workforce development and the UW‑System tends to focus more on management development, the distinction has become more artificial as progressive business owners break down the barriers between labor and management.
 

THE WISCONSIN TECHNICAL COLLEGE SYSTEM

With a focus on workforce development and hands‑on training, the WTCS offers a broad array of educational assistance to the small business community. Since a detailed listing of the offerings of this system are not possible in this limited space, you are advised to contact your local technical college to get specific information.
 

Mid‑State Technical College, with campuses in Wisconsin Rapids, Marshfield, and Stevens Point and a branch in Adams‑Friendship is one of the two schools that serve our area. Northcentral Technical College, headquartered in Wausau, is the other kcal technical college. NTC has branch campuses in Antigo, Medford, Phillips, and Wittenberg.
 

The WTCS programs offer many industry specific technical training skills. There are also job training and retraining programs available for workers changing jobs. Staff of the technical colleges can conduct on‑site assessments of your business to help determine an appropriate curriculum for development of the firm's employees. 

The WTCS also offers two‑year degrees in professional and pare‑professional programs. The schools are a good source for hiring bookkeepers, marketers, and general management help. There are many technical skilled trades for which the WTCS trains students as well. 

THE UNIVERSITY OF WISCONSIN SYSTEM 

The University of Wisconsin System comprises 13 four‑year degree granting schools (two of which also offer doctoral programs), 13 more two‑year centers, and the University of Wisconsin Extension. The system Is geographically, politically, and educationally diverse. There are also different degrees of commitment to outreach service into the communities of the state depending on what part of the system you try to access. Probably the most effective way, at this point, to access the vast resources of the UW‑System is to begin with your local Small Business Development Center. 

The Small Business Development Center (SBDC) at UW‑Stevens Point serves nine counties from Adams county north to the Michigan border. The SBDC offers not‑for credit courses open to the general public as well as custom‑designed programs for specific businesses or organizations. What makes the SBDC unique is the individualized, confidential business counseling offered. Counselors include the staff of the SBDC, kcal private sector experts, and faculty of UW‑Stevens Point and the entire UW System. For more information on the offerings of the center or for help finding resources within the UW‑System the office can be reached in several ways:

   By phone: 715.348.3838 or on the 24‑hour Business Resource Line at 800.487.7389

        By fax: 715.348.4045

        By e‑mail: xsbdc@uwsp.edu
 

In order to get a sense of the kind of resources available to small business across the UW‑System, here are some of the major programs:
 

1. UW‑Extension ‑ made up of the Cooperative Extension Service (county-based agents in business, agriculture, youth, family living, and natural resources), Continuing Education Extension (primarily the professional development programs offered for credit or not through each of the 28 system campuses), Extension Communications (public radio and TV), and Business Programs Administration (housing the 10 SBDC statewide centers, Management Institute, and the Manufacturing Extension Partnership).

2. UW‑System campuses ‑ which include engineering and technical skills expertise, graduate management training, and a host of applied educational programs. This includes both 4‑year and 2‑year schools in this region. The 4‑year school is at UW‑Stevens Point. There are 2‑year centers in Wausau and Marshfield. A new initiative for all of these schools is a seamless transition from 2‑year centers to the 4‑year campus and links via distance technology.

The Wisconsin Manufacturing Extension Partnership 

There is one educationally‑based program among the multitude that bears special consideration because of its unique position as a true partnership between the Technical College System, the UVV System, the state government, and the private sector. That program is the Wisconsin Manufacturing Extension Partnership (WMEP). 

The WMEP has roots in the end of the Cold War era. When the Cold War ended and the federal government decided to invest the peace dividend in domestic programs, one of the areas targeted for strengthening was the American manufacturing sector. Just as the Agricultural Extension Service had been developed at the beginning of the 20th century to improve agricultural production with closer ties to higher education systems, at the end of the Cold War the thought was to build a parallel system for the manufacturing sector. There are now 80 such manufacturing extension programs operating in 42 states. 

The WTCS and the UW‑System combined in October 1995 to win a federal grant for the next six years to build a statewide system in Wisconsin. The program officially began July 1, 19913, but programs like it in the WTCS have been operating for years. 

Similarly, the northwest part of the state is served by a Manufacturing Outreach Center headquartered at UW‑Stout for the last 8 years. 

The WMEP provides a comprehensive assessment of small and medium sized manufacturing companies in order to assist management to move toward modernization of manufacturing practice. Modernization includes learning the tools of just‑in‑time, appropriate technology, total quality, and employee involvement. The assessment concentrates on 14 areas of management in a firm. The assessment is followed by a facilitated set of planning sessions to develop a strategic plan. The implementation of the plan is coordinated by project management by field engineers of the WMEP. 

To find out more about how the WMEP can help manufacturing businesses, contact Tom Cunningham at MSTC (715.387.2538) or Marls Stover at UW Stevens Point (715.346.2005). Wausau is served by the Northwest Manufacturing Outreach Center with support from NTC. Call 715.623.3331 for more information on manufacturing outreach in Marathon county.