Progress 08/15/09 to 08/14/12
Outputs
OUTPUTS: The Community Vitality Center (CVC) staff coordinated quarterly meetings for the CVC Board, Iowa Rural Development Council, Iowa Community Capital, and Iowa Microenterprise Assistance and Philanthropy (IMAP) project. The Community Foundation of Greater Des Moines contracts with the CVC to annually conduct evaluations to report results of the IMAP project. The CVC also annually conducts program performance evaluations for Iowa MicroLoan. At the request of the SBA and USDA Rural Development, the CVC was asked to organize and host a rural "Young Entrepreneur Summit" on the campus of Iowa State University (ISU) on November 9, 2011. The Summit featured Marie Johns, Deputy Administrator of the U.S. Small Business Administration, Doug O'Brien Deputy Under Secretary for USDA Rural Development, Governor Terry Branstad, Lt. Governor Kim Reynolds and a panel of five rural entrepreneurs from across Iowa. The CVC program attracted 30 sponsors and 170 participants. A survey report from small group discussions was completed by participants. A LEAN process initiated by the General Assembly and sponsored by the Iowa Economic Development Authority resulted in a request for the CVC to survey Iowa revolving loan fund managers to determine opportunities for technical assistance collaboration, co-financing, and referral. CVC researchers completed the survey in 2012 and four reports. The process also resulted in the CVC being asked by the Iowa Economic Development Authority to participate in an ongoing process to further identify and address gaps in Iowa's entrepreneurial development system. The CVC initiated an Economic Impact Study of the Ethanol industry in Iowa and the United States and commissioned ISU professors Chad Hart and Daniel Otto along with graduate student Michael Hudak to conduct the study beginning in May 2011. The Economic Impact Study was completed May 2012. Subawardee Winneshiek County Ag Extension District completed its regional microfinance workshop program series for local food producers and entrepreneurs in the project area. Subawardee Marshall County Ag Extension District completed the local entrepreneurial food system field day during the growing season of 2011. Finally, Subawardee Ida County Community Betterment Foundation completed its work on philanthropy activities. PARTICIPANTS: The lead collaborator for the CVC with Iowa MicroLoan is Craig Downs, President. The CVC conducts ongoing training and professional development technical assistance for Iowa Microloan Board members. The lead collaborator for the CVC with Iowa Community Capital which is the CDFI is Jason Yates, Administrator. The CVC conducts ongoing training and professional development technical assistance for Iowa Community Capital board members. The lead collaborator for the CVC with subawardee Winneshiek County Agricultural Extension District is Brenda Ranum, Regional Extension Education Director. The lead collaborator for the CVC with subawardee Marshall County Agricultural Extension District is Richard Wrage, Regional Extension Education Director. The lead collaborator for the CVC with the Ida County Community Betterment Foundation is Rita Frahm, Ida County Economic Development. TARGET AUDIENCES: Target audiences include several nonprofit boards of statewide organizations with missions to support rural entrepreneurs and economic development. These groups include the Iowa Rural Development Council, Farm Bureau Renew Rural Iowa and Rural Entrepreneur Round Table, Iowa Small Business Development Centers State Advisory Committee, Iowa Economic Development Authority Iowa SourceLink Task Force, and the Boards of Iowa MicroLoan, Iowa Community Capital, Community Vitality Center, Regional Food System Working Groups, Rural Development Partners, and Ag Ventures Alliance. In addition, the target audiences for Subawardees include small business entrepreneurs having difficulty accessing conventional credit statewide, entrepreneurs in the Winneshiek County Northeast Iowa Food and Farm Coalition region, Marshall County Local Food Network entrepreneurs, and Ida County small business entrepreneurs and philanthropy network. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
The CVC initiated an Economic Impact Study of the Ethanol industry in Iowa and the United States and commissioned ISU professors Chad Hart and Daniel Otto along with graduate student Michael Hudak to conduct the study beginning in May 2011. The Economic Impact Study was completed May 2012. The findings demonstrate that fiscal impact analysis alone tends to underestimate the impacts of the dynamic industry on Iowa and the national economy. In addition, the rural investment models used to capitalize the industry demonstrated that additional economic multipliers are expected with a higher percentage of local ownership in the community and region. Similar benefits are not expected to be present to the extent that the next generation of biofuels is developed by large external capital and corporate investors, in contrast to retail private investment offering meetings with farmers and rural community investors. A CVC subawardee Iowa Microloan completed its technical assistance project during 2011-12. To date, Iowa MicroLoan has reviewed more than 200 loan applications and approved more than 50 microloans to entrepreneurs with workable business plans that were unable to access conventional loans. Iowa Microloan has reviewed an additional 58 loan applications and recommended approval for 42 additional loans to businesses as part of the Iowa Small Business Loan Program under contract with the Iowa Department of Economic Development. In addition, Iowa MicroLoan was a successful applicant for a $150,000 USDA RBOG award in 2011 to develop a pilot multi-state Rural Enterprise Finance Network. Iowa Microloan was organized by the CVC in 2008 and the CVC continues to provide strategic technical assistance to Iowa's only statewide nonprofit microloan intermediary. One of the recommendations to the Governor and General Assembly in the 2011 Iowa Local Food and Farm Plan developed by the Leopold Center and 16 Regional Food System Working Groups was continuation of the Iowa Small Business Loan Program, for which Iowa MicroLoan was an underwriting contractor during 2010 until the program expired in March 2011. CVC and Iowa MicroLoan assisted the Iowa Economic Development Authority during a successful application process for securing an allocation of $3.1 million from the U.S. Treasury's State Small Business Credit Initiative (SSBCI) for continuation of the Iowa Small Business Loan Support initiative. As a result, the Iowa Economic Development Authority contracted with Iowa MicroLoan in 2012 to administer a new Iowa Small Business Loan Support Program. This program is now available to enhance access to credit for Iowa's small business entrepreneurs including cooperatives and mutually-owned businesses linked to regional systems. The CVC has been engaged to revitalize Iowa's only statewide Community Development Financial Institution (CDFI) certified for access to U.S. Treasury CDFI funds for low income populations, under-served communities and healthy food financing initiatives. A business plan with local food cooperative development will be deployed during 2012-2013.
Publications
- Edelman, M.A. and Flinchbaugh, B.L. (2011). The Tax Debate: Where are the Principles Agri-Pulse. http://www.agri-pulse.com/
- Edelman, M.A. and Flinchbaugh, B.L. (2012). Senate Ag Committee Version of the Farm Bill. Agri-Pulse. http://www.agri-pulse.com/
- Edelman, M.A. and Flinchbaugh, B.L. (2012). Gasoline Prices, Fuel Standards, and Tax Credits. Agri-Pulse. http://www.agri-pulse.com/
- Edelman, M.A. (2012). Microloan Program Helps Ottumwa Entrepreneur Live the Dream. Iowa State University Extension and Outreach Community Matters Newsletter. Vol 6, Issue 1, p 4.
- Hart, C.E., Otto, D.M., and Hudak, M. (2012). The Economic Impact of the Ethanol Industry. Community Vitality Center, Economics Department Research Report, Iowa State University, Ames, IA.
- Edelman, M.A. and Burke, S.C. (2011). Rural YES Young Entrepreneurs Summit Report of Findings. Community Vitality Center, Iowa State University, IA.
- Edelman, M.A. and Burke, S.C. (2011). Survey of Revolving Loan Funds and Entrepreneurial Capital: Technical Assistance, Co-Financing, Seed and Equity Capital. Community Vitality Center, Iowa State University, IA.
- Burke, S.C. and Edelman, M.A. (2011). Survey of Revolving Loan Funds and Entrepreneurial Capital: Loan Terms and Requirements. Community Vitality Center, Iowa State University, IA.
- Burke, S.C. and Edelman, M.A. (2011) Survey of Revolving Loan Funds and Entrepreneurial Capital: Funds, Loan Purposes, and Capital. Community Vitality Center, Iowa State University, IA.
- Edelman, M.A. and Burke, S.C. (2011). Survey of Revolving Loan Funds and Entrepreneurial Capital: Selected Results. Community Vitality Center, Iowa State University, IA.
- Edelman, M.A. and Flinchbaugh, B.L. (2012). Defense, Deficits, and Biofuels. Agri-Pulse. http://www.agri-pulse.com/
- Edelman, M.A. and Flinchbaugh, B.L. (2011). Too Much Spending or Too Little Taxes Agri-Pulse. http://www.agri-pulse.com/
- Edelman, M.A. and Flinchbaugh, B.L. (2011). Restricting Ag to Feed the Worlds Hungry. Agri-Pulse. http://www.agri-pulse.com/
- Edelman, M.A. and Flinchbaugh, B.L. (2012) Brazil Tour: Food vs. Environment. Agri-Pulse. http://www.agri-pulse.com/
- Edelman, M.A. and Flinchbaugh, B.L. (2012). Financial Crisis: Lingering Effects, Causes, Cures. Agri-Pulse. http://www.agri-pulse.com/
- Edelman, M.A. and Flinchbaugh, B.L. (2012). Whose Priorities Will Be Trump in 2012 Agri-Pulse. http://www.agri-pulse.com/
- Edelman, M.A. and Flinchbaugh, B.L. (2011). Political System Failure: Now What Agri-Pulse. http://www.agri-pulse.com/
- Edelman, M.A. and Flinchbaugh, B.L. (2011). Too Much Debt and Too Little Growth. Agri-Pulse. http://www.agri-pulse.com/
- Edelman, M.A. and Flinchbaugh, B.L. (2011). Revisiting the Farm Bill Objectives. Agri-Pulse. http://www.agri-pulse.com/
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Progress 08/15/10 to 08/14/11
Outputs
OUTPUTS: Geode Resource Conservation and Development District subcontract is now completed. Marshall County Agricultural Extension District which is partially complete and continuing. Winneshiek County Agricultural Extension District has been completed during the past year. Ida County Community Betterment Foundation which is partially complete and continuing. Center staff and project support played an instrumental technical assistance role in the five-year organization and startup demonstration period for the Iowa Foundation for Microenterprise and Community Vitality. By this reporting period, 200 applications were reviewed by the IFMCV Loan Review Committee and 40 loans were approved. During 2010, CVC assisted IFMCV in successfully applying to the USDA Rural Microentrepreneur Assistance Program (RMAP) as an intermediary and technical assistance provider. Center staff collaborated with the Community Foundation of Greater Des Moines to continue the second year of a three-year Iowa Microenterprise Assistance Project (IMAP) local staffing matching grant initiative to assess the outcomes of providing enhanced staff access in rural communities that are interested in (1) creating local philanthropy and endowment building capacity and (2) creating microenterprise development capacity to enhance community vitality. The Winneshiek County Subcontractor partnered with the Northeast Iowa Food and Farm Coalition, Upper Explorerland Regional Planning Commission, IFMCV, and local Extension in six counties to sponsor five different series of workshops to enhance entrepreneurial business skills for the emerging local food producer and entrepreneurial network in the region. These workshops included: (1) Identifying funding sources for farmers, (2) Financial Management, (3) Business Planning Series, (4) Fast Tract Express, and (5) Food and Farm Expo featuring Online Marketing, Food Safety, and Networking. The GEODE RC&D Subcontractor partnered with the Louisa County Initiative For Entrepreneurship (LIFE) to sponsor a series of lunch and learn seminars to facilitate entrepreneurial networking and skill building objectives. In addition, GEODE RC&D partnered with Pathfinders RC&D, CVC, and the Iowa Institute for Cooperatives to co-sponsor a workshop series in four locations on Iowa's hybrid coop as a structure for organizing local food cooperative ventures. PARTICIPANTS: Brenda Ranum, Regional Extension Education Director <ranum@iastate.edu> Teresa Wiemerslage, ISU Extension Program Coordinator <wiemer@iastate.edu> Rachelle Howe, UERPC Community Development Specialist <rhowe@uerpc.org> Craig Downs, IFMCV President <cdowns@iowamicroloan.org> Mark Edelman, CVC Director, <medelman@iastate.edu> Elizabeth Brown, Louisa LIFE <elizakae@gmail.com> TARGET AUDIENCES: The primary target of both subcontract groups were local food entrepreneurs, as well as, prospective and existing small business entrepreneur in the rural areas covered. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
The following items are outcomes and impacts from the Winneshiek County subcontract. Workshop series 1 As a result, 40 producers, entrepreneurs, lenders and service providers participated. Many participants stayed to network during the hour after the program ended. Workshop series 2. As a result, 23 farmers received information on Quickbooks for keeping records. Workshop series 3. As a result, 60 small businesses including four farmers received training business planning and business plan development. Workshop series 4. As a result, 61 existing and prospective entrepreneurs received training and assistance in developing a startup or business expansion plan. Workshop series 5. As a result, 150 people participated in the event and received technical assistance regarding online marketing, food safety, and networking. In regards to the Geode RC&D Subcontract, the following outcomes and impacts are reported. Lunch and Learn seminars focused on Quickbooks and were attended by 40 participants interested in improving small business financial record keeping systems. The Coop seminars were attended by 45 participants, one local food coop is considering reorganization as a hybrid cooperative model to include 3rd party investors such as program related investments by community foundations targeted to assist low income populations. Communications continue with four community food initiatives.
Publications
- No publications reported this period
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Progress 08/15/09 to 08/14/10
Outputs
OUTPUTS: The Iowa Vitality Center Project provided support for Center staff to organize quarterly meetings for 25 board members from across the state. Board meetings were designed to gather input into the design of a matching minigrant program, review and select proposals, submit recommended proposals to USDA, and provide oversight of subcontract monitoring and evaluation. All project activities were reviewed and approved by the Center Board and Iowa State University acting as the fiscal agent. Projects were carried out by Center staff and/or subcontractors. The subcontracts included (A) Iowa Foundation for Microenterprise and Community Vitality (IFMCV) which is now completed, (B) Geode Resource Conservation and Development District which is now completed, (c) Marshall County Agricultural Extension District which is partially complete and continuing, (d) Winneshiek County Agricultural Extension District which is partially complete and continuing, and (e) Ida County Community Betterment Foundation which is partially complete and continuing. Center staff (1) completed applied research to assess the factors influencing why people move into and out of nonmetro counties and conducted 18 meetings in counties organized by local extension contacts. In addition, Center staff (2) began an applied study initiative to gather information on Iowa State and Local Tax and Fiscal Facts for assisting policy makers with state and local fiscal decisions. Center staff and project support played an instrumental role during the three-year organization and startup demonstration period for the Iowa Microfinance initiative. This statewide initiative commenced March 2008 with Center staff organizing quarterly meetings for the 21 member statewide IFMCV board allowing the lone IFMCV staff member to focus on lending decisions and activities. While actual loan operations started in February 2009, IFMCV was supported by the CVC staff prior to and during the first full year of this USDA grant. The Iowa MicroLoan program was designed for businesses with less than five employees seeking $5,000 to $35,000 in loan funds. Entrepreneurs were required to provide a credit denial letter from a conventional lender, as well as, a business plan, application, financial statements, tax returns, and credit report access. Over 60 applications were reviewed by the IFMCV Loan Review Committee and 18 loans involving 21 loan clients were approved during 2009. Technical Assistance Plans individualized for each business loan client were developed by project supported coaches. Center staff collaborated with the Community Foundation of Greater Des Moines to implement a three-year Iowa Microenterprise Assistance Project (IMAP) local staffing matching grant initiative to assess the outcomes of providing enhanced staff access in rural communities that are interested in (1) creating local philanthropy and endowment building capacity and (2) creating microenterprise development capacity to enhance community vitality. Iowa Vitality Center staff organized quarterly IMAP cluster meetings for the local steering committees of the selected projects and are responsible for evaluating the results. PARTICIPANTS: Dr. Mark A. Edelman, Principal Investigator, Project and Center Director played an instrumental role in developing and implementing the IFMCV business plan until the IFMCV President was hired. Edelman identified and organized the Board and maintains the IFMCV Board communications. Sandra Charvat Burke, Senior Researcher for the Center, is instrumental in evaluating all Center projects and conducting rural-urban policy research studies. She also drafts minutes for the Center Board and leads the New Movers Study. Dr. Dan Otto is overseeing work of Michael Hudak, Graduate Research Assistant, on the Center's Iowa Tax and Fiscal Facts project. Ron Prescott, Center Microenterprise Program Coordinator, played an instrumental role in development of the IFMCV business plan and is currently on assignment in Ghana, Africa consulting on a Millineum Fund Agricultural Microfinance project. Craig Downs, IFMCV President, brought 27 years of entrepreneurial community lending experience to IFMCV and has grown the organization from a staff of one to five full- and part-time staff in two years. Elisabeth Brown and banker Chris Grimm are Project Co-Directors for Louisa Initiative for Entrepreneurs (LIFE) subcontract with Geode RC&D. Brown organized lunch and learn sessions and tours of local entrepreneurs to provide opportunities for entrepreneurial networking. She is also building linkages between local financial institutions and community foundations to create a local revolving loan fund for very small entrepreneurs seeking less than $5000 that graduate into the IFMCV microfinance service of $5000 to $50,000 in loan requests. Brenda Ranum, ISU Regional Extension Education Director, serves as the Project Director for the Winneshiek County Agricultural Extension District subcontract for the Northeast Iowa Food and Farm Coalition and is organizing entrepreneurial workshops for local food entrepreneurs and coaching capacity to assist entrepreneurs who are participating in local food networks. Richard Wrage, ISU Regional Extension Education Director, serves as the fiscal agent for a collaboration with the Iowa Valley Community College Local Food entrepreneur workshops and Field Day events. Rita Frahm, VP Heritage Bank - Holstein, IA, serves as the Project Director for the Ida County Betterment Foundation subcontract to organize a series of entrepreneurial development workshops and a series of philanthropy oriented endowment building capacity workshops for regional networks. Ashley Schafer, Director of Affiliates, Community Foundation of Greater Des Moines, leads the Iowa Microenterprise Assistance Project local capacity cluster project involving five local county foundation grant recipients, Center staff and IFMCV. Jim Thompson, Main Street Iowa, Iowa Department of Economic Development, collaborates with the Center staff and IFMCV on developing the Iowa Small Business Loan Program approved by the 2010 General Assembly. TARGET AUDIENCES: The primary audience for the Iowa Vitality Project, IFMCV, Northeast Iowa Food and Farm Coalition, Louisa Initiative for Entrepreneurs, Marshall County Food Entrepreneurial Development Project, and Ida County Betterment Foundation project are entrepreneurs who are denied access to conventional loans but who have a good business plan and have reasonable chances for business success if given extra training and technical assistance targeted to their specific business needs. The LIFE and Marshall County projects included some focus on Hispanic populations. The Winneshiek and Marshall County projects focused most of their efforts on local food entrepreneurs. The IMAP Cluster project, as well as, the subcontracts for Ida County Betterment Foundation and Geode LIFE project involved building capacity for both philanthropy networks and entrepreneurial networks. PROJECT MODIFICATIONS: No major changes in objectives for approaches; however, changes in subcontract personnel slowed progress toward goals and objectives.
Impacts
The Iowa Microfinance project resulted in microloans and technical assistance being provided to 18 business loan clients involving 21 individuals who were denied credit from conventional lenders. No loans were deliquent or in default at the end of the first year of operations. These businesses are estimated to have created/retained 26 direct jobs or 46 direct, indirect, and induced jobs based on methods used by ISU extension economists. It is increasingly evident that the global credit crisis has affected the willingness and ability of some conventional lenders to provide loans to small businesses that would potentially be successful. As conventional finance institution examiners tighten up on conventional finance institutions for purposes of safety and soundness, there may be an increasing role for nonprofit microfinance institutions to provide gap financing for small entrepreneurs who are denied access to conventional credit. As a result, society may wish to provide extra support for entrepreneurs via specialized microfinance institutions that develop capability to complement the conventional banking system to assure a high level of entrepreneurship in our society. Sixteen percent of the loans approved during the first year of microlending activities were local food and value added agriculture related enterprises. Thus, access to microfinance institutions with a diversified portfolio for managing risk can assist in the development of local food networks and addressing the NIFA priority for providing local access to healthy foods. The Iowa Vitality Center received the 2010 Iowa Venture Distinguished Leadership Award from the Iowa Area Development Group (IADG) which is the economic development arm of the Iowa Association of Rural Electric Cooperatives and Municipal Utilities. Receipt of this award resulted in newly elected Governor Terry Branstad and Lt. Governor Kim Reynolds arranging for a 1 1/2 hour personal briefing session at the Iowa MicroLoan offices in Boone with Dr. Mark Edelman, Iowa Vitality Project PI, and Craig Downs, IFMCV President.
Publications
- Burke, S.C. and Edelman, M.A. 2010. Microenterprise in Southeast Iowa: What Small Business Owners and Development Leaders Say. Community Vitality Center, Iowa State University Extension.
- Burke, S.C. and Edelman, M.A. 2009. New Mover Studies: Cherokee County. Community Vitality Center, Iowa State University Extenison.
- Burke, S.C. and Edelman, M.A. 2009. New Mover Studies: Henry County. Community Vitality Center, Iowa State University Extension.
- Burke, S.C. and Edelman, M.A. 2009. New Mover Studies: Van Buren County. Community Vitality Center, Iowa State University Extension.
- Burke, S.C. and Edelman, M.A. 2009. New Mover Studies: Jefferson County. Community Vitality Center, Iowa State University Extension.
- Burke, S.C. and Edelman, M.A. 2009. New Mover Studies: Hardin County. Community Vitality Center, Iowa State University Extension.
- Edelman, M.A. and Dunn, J.R. 2009. Cooperatives: A Competitive Yardstick for Health Care. WP #09028, Department of Economics, Iowa State University.
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