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Program Scope

The Arthur K. Williams Microbusiness Enterprise Center is a community resource providing assistance and facilities which creates an environment that will stimulate small business formation, growth and survival. The "Incubator" serves as a focal point and a catalyst for the formation and growth of new and small businesses. By providing facilities and services that assist small business, the Arthur K. Williams Microbusiness Enterprise Center Incubator can have a positive impact on their growth and the creation of jobs for area residents. Businesses benefit in a number of ways during the 2-5 year period they may be a part of the Center's Network. First of all, they can secure a first class business location at a cost that is at or below prevailing rates of comparable commercial space in the Albany area. Secondly, there are a number of services offered that are shared by businesses in the incubator (tenant companies). These services include receptionist and phone answering, computer and software use, conference facilities, shared copying, library and mailing services. In addition, the building provides the latest security system as well as ample parking.

Eligible Businesses: Any existing and start-up business, except those listed below as ineligible, wishing to participate must be located in the City of Albany and have been in operation for three years or less in its present business with its current organizational structure. The organizational structure may be corporation, partnership or proprietorship. To be considered for the resident program, a business must be operated on a full-time basis, unless specifically authorized to operate otherwise as outlined in this or other DCED business programs. Applicant business may be required to satisfy other requirements as outlined elsewhere in this policy manual. To enhance the growth and development of new and startup businesses, an established business may be provided occupancy as an Anchor Tenant. The Anchor Tenant must provide services to the Incubator tenants and assist in the recruitment and development of new businesses in to the Center. A Memorandum of Agreement will be executed detailing the specific requirements for occupancy in the MEC.

Non-profit businesses will also be allowed entrance into the Incubator with the following conditions:

  1. Must provide community and/or economic development services to Incubator tenants and the City's CDBG entitlement areas.
  2. Must have a 501{c}{3} or other recognized tax-exempt designation from the Internal Revenue.
  3. May be required to pay market rate for space required. Rate will be determined based on source and amounts of funding available to the organization.

Tenant Mix: The Arthur K. Williams Microbusiness Enterprise Center will insure that a minimum of 60% of the available suites will be available for new and startup businesses. No more than 40% of the space will be available to non profits and the Anchor Tenant.

Ineligible Businesses:

  1. Lending institutions
  2. Real estate investment companies
  3. Retail (located at MEC)
  4. As City deems necessary.

The project must meet at least one of the following Department of Housing and Urban Development's Community Development Block Grant (CDBG) criteria:

  1. Elimination of slums and blight
  2. Benefit persons of low and moderate income
  3. Activities having an immediate urgency

Size of Business: To be eligible for assistance, the applicant business must meet the size guidelines of the Small Business Administration. Generally, a business is considered small if its net worth is less that $6 million and its net profit after tax for the last two years is less than $2 million.

Admission Requirements: Admission to the Center's various programs will be facilitated through one or both of the following procedures.

Application:

  1. All businesses wishing to participate in any program offered by the DCED staff will be required to complete an application. The information given will be evaluated with emphasis on qualification of principals, long-term potential, marketing strategy, capitalization and appropriateness of business for the MEC.
  2. Businesses applying for admission to one of the non-resident programs will be evaluated on the basis of the information in the application alone. Those approved will be required to execute an agreement(s).

Business Plan: Businesses applying to occupy space in the building (resident program) will be evaluated based on information in the application as well as a business plan. The business plan should be used as a planning document and operational guide for business. In addition, it will be used to evaluate the progress of the business and potential of owners to understand, successfully operate and effectively maneuver their firms during the peaks and valleys of business operation. The staff of the Economic Development Division will provide assistance with developing these plans as well as the staff of the University of Georgia Small Business Development Center (SBDC), and the Albany State University CDC.

Review Committee: Each business wishing to participate in the DCED resident program must complete a business plan. A committee, appointed by the DCED Director will review business plans. The Committee will make a recommendation to accept, reject or request additional information of an applicant. An applicant may be approved with or without conditions. Conditional approvals will be based on perceived needs of the business as determined by the committee. In the case of rejections, the Committee may offer suggestions or recommendations for the applicant's consideration. A rejected applicant will be allowed one opportunity to answer the objections of the Committee. Such answers will have to be submitted within 90 days of receipt of the letter of rejection. Otherwise, the application process must be started again. In all cases, applicants who are finally rejected may not apply sooner than 180 days after receipt of the last rejection letter. Applicants who are approved must occupy space within sixty days of availability of suitable space or be required to submit a new application. In no case is an applicant obligated until signing the appropriate lease or participation agreement.

GENERAL TECHNICAL ASSISTANCE

Eligible Businesses: Tenants that have received a DCED Loan will be required to utilize mandatory technical assistance to be coordinated by the Economic Development Division Staff. Such technical assistance will be tailored to the needs of the owner(s) and may consist of the following:

  1. An initial evaluation of the existing or new businesses enterprise,
  2. Development or revision of a business plan,
  3. Assistance with start-up activities,
  4. Monitoring of business operations at specified intervals, and
  5. Referrals to other technical assistance professionals, and other assistance as deemed necessary.

All technical assistance will be provided to recipients in the form of recommendations with an objective of the process being to form a cooperative working relationship between entrepreneur and counselor. Recipients who ignore recommendations of professional counselors, endanger the success of their business, and may be subject to the minimum occupancy of one year.

Technical Assistance and Documentation: The request and subsequent provision of technical assistance will require the following: The type of technical assistance provided; The date the technical assistance was provided and the length of time provided;

  1. The HUD National Objective to be met;
  2. The benefit to be derived from the technical assistance:
  3. Increase in sales
  4. Increased availability of jobs for low and moderate income persons
    • Allows the person to remain in business
    • Shows the business serve primarily minority clients
    • An increase in competition
    • Documents that the business the only one providing a particular service that would not otherwise be provided
    • Documents Income taxes/ Federal & State generated
    • Creates and develops a strong entrepreneur
    • Documents cost and impact on the financial stability to the business if the services were provided by a consultant;
  5. Each applicant must maintain a complete set of general ledger and subsidiary accounts, following generally accepted accounting principals. This means that funds will be posted on a double entry basis where debit (DR) or credit (CR) balances are maintained for each account and the sum of all debits equals the sum of all credits.
     

Monitoring: Each business assisted will be monitored on the basis of the business plan or established areas of needed technical assistance. Recommendations and referrals will be made as necessary in an attempt to develop the business strengths and shore up areas of weakness. Each business will be closely monitored on a periodic basis for a minimum of one year. Every attempt will be made to create and maintain a team approach between the clients and counselors. Although counselors cannot, and will not, attempt to "run a client's business, he or she will be expected to take recommendations seriously and act responsibly in operating their businesses. Failure to do so which, in the opinion of the DCED staff seriously jeopardizes the continued success of a business, may subject the owners) to disqualification from the project. Where DCED loans are involved, proceedings to call the loan due and immediately payable may also be initiated.