June AEDC Newsletter

Economic Development News

From Our Executive Director

The past 12+ months has been a wild ride. We’ve seen that our community is resilient and can take on whatever challenges are thrown our way. However, one of the greatest lessons we’ve learned from COVID-19 is how important it is to stay flexible and open to new opportunities. Your business will survive and thrive if

you can adapt quickly and embrace new technologies or perhaps apply for grant opportunities that are available. At AEDC we were able to help our clients by obtaining PPP loans for them, and for our SBA borrowers, arranging to have their monthly payments paid for up to 10 months. AEDC made over one hundred 1st & 2nd round PPP loans totaling $6.8 million this past year. This loan volume helped AEDC qualify for our largest grant in our history from the US Department of the Treasury. This grant will allow us to continue and expand our support to businesses in our region.

-- Ross

AEDC Receives 1.8 Million Dollar Grant

Arcata Economic Development Corporation (AEDC) will be receiving nearly $1.83M* from the U.S. Department of the Treasury as part of the Community Development Financial Institution Rapid Response Program (CDFI RRP) to respond to economic challenges created by the COVID-19 pandemic.

CDFIs are private financial institutions that provide lending to help disadvantaged or underserved communities join the economic mainstream. A CDFI can be a bank, credit union, loan fund, or venture capital fund.

AEDC is a loan fund that serves Humboldt, Del Norte, Mendocino, Lake, Siskiyou, and Trinity Counties. For over 40 years AEDC has provided business loans to clients who may not qualify through traditional lenders. The organization can also provide funding for community facilities and housing projects. AEDC was among the CDFIs that received the largest allocation provided by the Treasury.

“The last time we got a CDFI grant, it was for $750,000,” said Ross Welch, Executive Director of AEDC. “We used that to fund the Open Door Community Health Clinic in Eureka and when that loan paid off, we used the money to help the Northern California Indian Development Council restore the Carson Block Building. The opportunities to help the community with this new, larger grant are very exciting. The funds can be leveraged and revolved, so the impact to an undercapitalized region like ours is even more significant.”

In all, the Treasury Department awarded $1.25 billion in COVID-19 relief funds to 863 CDFIs. The awards were announced on June 15 by Vice President Kamala Harris at the White House with Treasury Secretary Janet L. Yellen.

The CDFI RRP grant funds will be used to support eligible activities such as financial products, financial services, development services, and certain operational activities, and enable CDFIs to build capital reserves and loan-loss reserves. The CDFI Fund designed the program to disperse the funds rapidly in light of the nationwide economic impacts of the COVID-19 pandemic. The CDFI RRP was authorized by the Consolidated Appropriations Act, 2021.

For more information about the CDFI Fund and its programs, visit www.cdfifund.gov. For more information about AEDC, visit www.aedc1.org.

*Actual figure: $1,826,265

Life beyond Covid-19: Stay Proactive, Be Prepared

Many Covid relief programs will soon be coming to an end, which means businesses may feel a second wave of financial strain as they transition out of PPP money and loan deferment. At AEDC, we want to help businesses in our region take a proactive approach to financial stability.

Here are 3 tips to help you stay proactive, and be prepared.

Be an active member of your local business development center.

SBA partners with business development centers to give up-to-date announcements on additional funding support. Being a member of these organizations gives you an opportunity to be the first to know about any updates or changes. They also provide business advising, classes, and workshops to help you succeed.

Get a system in place for weekly cash flow projections.

Many businesses only look at their finances in the past which leads to a more reactive approach to your business planning. According to Forbes, businesses should try reversing that process by creating a 12-week cash flow projection, and update it every week. Many business owners focus on financial statements but underestimate the importance of timely cash flow management. Weekly cash flow monitoring is crucial to any growing business. By having a system in place, you can take a proactive approach to remain financially stable. Each week you should be:

Monitor your different cash flows
Look for expenses and areas of waste
Analyze areas of your business that are most profitable and adjust your strategy to maximize
Find ways to add a buffer to prepare for any unexpected changes in business

Again, your local SBA business development center can provide training and assistance in setting up these financial systems.

Don’t let pride get in the way of getting support when you need it.

Many business owners are fiercely independent, and that’s a good thing. But don’t let that trait keep you from getting the support you need if you are struggling.

If you’re struggling, call us. We’re here to help you succeed. The earlier you call us, the easier it is to help you get back to a place of financial stability.

Lemonade Day Registration is Open, Become a Mentor!

Lemonade Day needs your support! We are always looking for individuals and organizations who want to get involved. Want to learn more about opportunities?

We are excited to be partnering with Big Brothers Big Sisters of the North Coast for the first time this year, and rolling out a new mentoring program for 2021. Want to share your experience and love of small business with a local youth entrepreneur? This year we are particularly looking for mentors to work with kids who need a mentor so they can participate in Lemonade Day. Contact Taffy Stockton, Humboldt Lemonade Day Coordinator, to learn more about how to get involved or about other supportive opportunities at humboldt@lemonadeday.org.

You can help a child who otherwise wouldn’t have the support needed to host a Lemonade Stand. Mentors will be matched with local youth (ages 7-12), attend workshops with them, and support them as they learn how to run their own small business. All mentors will be screened and matched through a partnership with Big Brother Big Sisters of the North Coast.

Workshops will run from July 10th –August 7th, with the big event on August 14th! These workshops will be held for participants and mentors to explore the steps of creating a Lemonade Stand business. The workshops will begin on July 10 at 10 a.m. at the Jefferson Center at 1000 B Street, Eureka. Masks will be required as this is a youth-centered activity. Lemonade Day Ambassadors and participants who have several years of experience hosting Lemonade Stands including "Munch's Lemonade" and "Lil Love Lemonade" will be at the event to talk about their experiences.

Website Lending Community About AEDC Contact Us

Arcata Economic Development Corporation

Fax: (707) 798-6130

Tel: (707) 798-6132

707 K Street, Eureka, CA 95501

Newsletter produced by

Allie Jones, Illuminated Marketing