|
|
|
Enterprise Corporation of the Delta: Unique lending organization is big asset For all you entrepreneurs and would be entrepreneurs out there who are in desperate need of capital there is hope. Although you may not have the financial strength to borrow from traditional sources, there is an alternative. An organization called The Enterprise Corporation of the Delta (ECD) is ready to meet with you. This organization's primary service is to provide financial and technical assistance to support business creation and expansion. Operating in the Delta regions of Arkansas, Louisiana and Mississippi, ECD recently got a significant boost with a $2.5 million Treasury Department grant. In addition, eight regional banks also received a total of $198,750 in awards from the Treasury Department as a result of investing $1,375,000 in ECD's affiliate, ECD Investments, LLC. In Mississippi, banks receiving the awards were: Deposit Guaranty National Bank, the Bank of Yazoo City, Planters Bank, and Merchants & Farmers Bank. According to ECD president and CEO, Bill Bynum in Jackson, the funding provides a tremendous boost for their development work. Created in 1994, ECD has assisted more than 500 Delta firms and entrepreneurs, generating $46 million in financing commitments. This helped to create more than 5,000 jobs. Obviously this organization is a big asset to the Delta. ECD will consider lending to just about anyone. However, the organization usually targets smaller, emerging firms with growth potential. ECD clients are often young companies whose growth is such that revenues outpace their ability to internally generate working capital. Companies seeking to develop new products or markets; viable entrepreneurs with strong management or technical skills but without access to sufficient collateral or equity to qualify for bank financing; manufacturing and manufacturing-related companies are some of the other types of companies that ECD serves. ECD offers interest rates that are usually 1% to 2% above those available from banks and in fact, ECD collaborates with banks and other lenders to identify and assist potential customers. Collateral typically consists of the assets financed or substitute collateral where available. Accounts receivable and inventory are accepted as primary collateral for working capital financing. Additional collateral may be required when appropriate and collateral subordination is possible and is determined on a case-by-case basis. ECD cultivates a referral and assistance network of groups that support economic and community development in the Delta. Partnering organizations include: Banks and other public, private and not-for-profit lending organizations Community based organizations, such as community development corporations, enterprise communities, and community development financial institutions FastTrac, an entrepreneurial training program that equips entrepreneurs with skills to develop and manage successful business ventures. FastTrac is administered for ECD by Delta State University, the Good Faith Fund, Mississippi Delta Community College, Northeast Louisiana University, Phillips Community College, the University of Arkansas at Monticello and the University of Arkansas at Pine Bluff Manufacturing Technology Extension Partnership, a collaboration between each state's manufacturing extension program, research universities, federal laboratories, state agencies, and community colleges Organizations which provide cost effective, efficient and responsive manufacturing extension services State and local economic and business development organizations Universities and community colleges Workforce Alliance Communities, a workforce development initiative that utilizes community planning and implementation terms to improve the skills of the labor force. If you reside in the Delta and are in search of funding for your business or entrepreneurial idea, I strongly suggest that you contact the Enterprise Corporation of the Delta at 601-944-1100 for more information on what they can do for you. In our November issue, we pay a special tribute to state Representative Charlie Capps of Cleveland. Mr. Capps, who is chairman of the House Appropriations Committee, has been a tremendous voice for the Delta. Many say that Mr. Capps is politically the most powerful person in the state. I believe this to be true for only a man with his political clout could have accomplished the many things that he has done for the Delta and the entire state. We are proud to bring you his story. Next month as we wind down 1998, the Delta Business Journal will announce some changes that we are very excited about for 1999. We have come a long way in just over five months and could not have reached such success without your support. DBJ Scott Coopwood Publisher |
|
For more Delta Business info, Subscribe Now! ../issues/current/articles/index.htm HOME || SUBSCRIBE || CIRCULATION || ADVERTISING || CONTACT DBJ P.O. Box 129 - Shelby, MS 38774 Site last updated January 10, 1999. |
