BY JULIE SPEED DBJ Contributing Writer

Since 1995, the Enterprise Corporation of the Delta, a private, nonprofit business development organization, has been assisting the Delta business community.
Led by William J. Bynum, CEO and president of ECD, the organization accomplishes its primary mission of improving the quality of life for low- and moderate-income residents of the Delta and rural regions of Mississippi, Arkansas and Louisiana by providing market-driven financial and technical assistance to firms, entrepreneurs and homeowners, forging strategic partnership with private, public and nonprofit organization, and promoting the development of the region’s human and economic assets.
The Delta Business Journal talked to Bynum, a University of North Carolina at Chapel Hill graduate who previously directed programs with the North Carolina Rural Economic Development Center and has completed executive coursework at Harvard Business School, about ECD’s priorities and objectives.

DBJ: What are ECD’s priority projects in the Delta right now?
William J. Bynum: We really have a lot of exciting things going on. Right at the top of the list is commercial lending. We have started to become better known among the business and economic development communities and it has generated a whole lot of potential borrowers that we’re able to assist. Last year, we made more loans than we’d made in the previous three years combined, and that pace has continued this year. Beyond that, we continue to focus on our core business of providing commercial financing for very promising entrepreneurs in the Delta who cannot get financing from traditional sources. It really validates what we’re doing when we see the benefits of our work.

DBJ: BusinessLINC sounds like a unique program. Could you explain what it does and how it is helping in the Delta?
WJB: BusinessLINC is still in its early stages. We’ve been working over the past year with Entergy, one of the lead corporate partners with BusinessLINC, and they have adopted a company in each of the three states that we work in to help mentor them and help them tap into assistance to strengthen those companies. That’s allowed us to test the program and determine the best way to go. We also spent the last year recruiting several corporate partners. Mississippi Chemical, FedEx, BellSouth, CenturyTel, and Southwestern Bell have all agreed to be a part of BusinessLINC. I recently hired a program officer who is going to be working with those companies to tailor the programs to meet their interests. It’s very important that the program meet the needs of the large corporations and small businesses, particularly in a place in the Delta where we don’t believe in a one-size-fits-all program.
For example, Entergy has provided marketing assistance for small companies that couldn’t otherwise afford it. A company in Clarksdale provided engineering and floor planning assistance to a company in Pine Bluff, Ark. Again, there’s a type and level of expertise that a large company can readily tap into that is not available for small firms, so such technical assistance component is very helpful.

DBJ: Besides BusinessLINC, what other technical assistance programs do you offer, and how are they paid for?
WJB: Early on, we cast a broad net and tried to help companies primarily through financing. With the Delta Employment Enhancement Project, we tried to take it beyond just helping entrepreneurs and business owners. We wanted to make sure that the company employees also benefited beyond just the availability of jobs. We want to try to affect the quality of jobs. There are a number of state and federal programs that provide assistance to employers and employees that, unfortunately, small business people don’t have the time and wherewithal to navigate. So we’ve developed an inventory of these programs to help small businesses tap into them.
One of our first efforts focused on marketing the Child Health Insurance Program (CHIP), where low–income workers are eligible to provide health insurance for their children. Many employers and employees had not taken advantage of this program, and Mississippi had been woefully under–subscribed in CHIP. We’ve also recommended changes that make it easier for employees to enroll. As a result, we’ve seen a significant increase in the number of Mississippians who have taken advantage of the program. Similarly, there are workforce-training programs tax credit programs that are available to small businesses, where owners may need help taking advantage of.

DBJ: How are the services for small businesses, such as marketing and engineering, paid for?
WJB: It varies on a case-by-case basis. When it’s possible, we’ll structure services into the loan. If the company cannot afford it, we’ll fund it. Sometimes, we’ll front the money and recover it as the company becomes profitable.

DBJ: Will the Delta Regional Authority in any way affect ECD’s program offerings?
WJB: We are not related, but we are hopeful that the DRA will have an impact similar to the Appalachian Regional Commission. The ARC has helped communities in its territory be very effective in tapping into federal funding for infrastructure, small business support, and other assistance that we need in the Delta. We’re always looking for new resources to improve the quality of life in the Delta, and I think the DRA has a lot of potential if it gets the kind of support ARC received and if it is managed well.

DBJ: How has the economic slowdown affected the Delta Reinvestment Fund?
WJB: The Delta Reinvestment Fund is actually one of our more promising strategies. We’ve tried to work with other loan programs and help them to leverage their resources. We may provide technical assistance and training. We may participate on loans. The idea is to help them stretch their dollars and to provide more capital to Delta companies. Actually, about six weeks ago, we brought 15 small loan programs from around the region together and provided them with two days of training to help them refine their strategic plans. That’s increased their ability in being effective to make loans to Delta businesses. Even though we’re one of the country’s largest community development and financial institutions, we’re pretty small compared to a bank. It’s essential that we form partnerships and stretch our resources to have an impact in the Delta. Working with small loan funds, banks, venture capitalists, and technical assistance programs is right at the heart of how we do business.

DBJ: What is the approximate percentage of funds for ECD’s operations: private v. public?
WJB: Roughly 10% of funds are public; 90% are private. It gives us a lot of flexibility in how we construct our programs. You need flexibility and the ability to be innovative when you’re working in the Delta.

DBJ: Tell us about the new Mississippi Rural Health Care Fund and what it will do for health care in the Delta.
WJB: Part of our priorities are to look at promising sectors that have good potential to create jobs and that also help provide an underpinning for economic development. We recently conducted a survey and it was very clear that health care is a very promising sector in terms of potential jobs and a strong business climate. If you have good health care, your employees are going to be more productive. It’s a quality of life issue that helps communities attract and keep businesses.
Working in cooperation with Trustmark, AmSouth and BankPlus, as well as with the Robert Wood Johnson Foundation (RWJF) and Mississippi Access for Rural Care (MARC), we formed a partnership to operate a health care loan fund. We will originate loans to health care facilities, doctors, dentists, pharmacists, rural health clinics, and rural hospitals. The banks that I mentioned will buy part of the loans, which will free our funds up to be re-loaned for future health care providers. It’s our first endeavor outside the Delta. Even though our primary focus is still on the Delta, we’re doing this statewide. We’re very excited about the early response to the program. We’re currently reviewing three applications for the program – one is for a rural hospital, another is for a rural clinic, and another is for a doctor’s office. It’s an important investment in the infrastructure that’s necessary to support a strong economic development strategy.

DBJ: ECD is a liaison between business owners and venture capitalists. What does the capital market look like right now, and for the near future?
WJB: In the venture capital market, we’re seeing more inquiries. You have to go through a lot of projects before you find one that really fits the criteria. And we’re no different, even though we target smaller investments. Still, the numbers have to add up. There has to be good management, good markets. We continue to see a good number of proposals. Most of our commercial financing is debt financing, working capital, equipment loans, but we do some venture capital when there is a real exciting opportunity to create new jobs, to bring technology, or to support minority or women ownerships. It’s an important tool for us, but it’s a small part of our portfolio.

DBJ: What is the Delta’s top priority to boost its economic development?
WJB: Workforce, workforce, workforce! Improved education for our residents will always be the Delta’s top priority. Successful businesses and good jobs require it at every level. From small businesses to the Nissans of the world, to have a good workforce, it starts with investment in education. DBJ