The U.S. Department of Commerce announced Wednesday that it will support a minority-business center in Cleveland, through what could be $1.1 million in grants over five years.
Clik here to view.
Jobs are a key focus for a minority-business center that will open in downtown Cleveland by June. Funded by the federal government and local nonprofits, the center aims to help minority business owners find loans, secure contracts, expand their companies and export their products.CLEVELAND, Ohio -- Minority business owners could have an easier time securing contracts, finding loans, expanding their companies and exporting their products, thanks to a partnership between the federal government and several Northeast Ohio nonprofits.
The U.S. Department of Commerce announced Wednesday that it will support a minority-business center in Cleveland, through what could be $1.1 million in grants over five years. Cleveland is one of two cities - the other is Denver - tapped for a new center by the Minority Business Development Agency, an arm of the Commerce Department.
The center will be Ohio's first such outlet since 2006, when the federal government stopped funding a facility in Cincinnati.
"It's a chance for this region to shine and be a model for other regions," said Andrew Jackson, executive director of the Commission on Economic Inclusion, the diversity-focused arm of the Greater Cleveland Partnership.
Jackson's group led the effort to attract federal funding and bring a center to Cleveland. To make the best pitch, though, he teamed up with several local nonprofits focused on creating jobs, supporting small companies and bettering Northeast Ohio's economy.
The Greater Cleveland Partnership - the region's chamber of commerce - pledged $82,000 a year to the center. Its small-business arm, the Council of Smaller Enterprises, committed $100,000 a year. Jackson expects to generate roughly $25,000 a year for the program, through charging for more technical services such as accounting and website development.
But with an annual budget of $432,000 and four full-time staff members, the business center will offer most of its assistance for free.
Starting out, it will work with six partners: The COSE small-business group; JumpStart Inc., which provides investments and services to young companies; the Northern Ohio Minority Supplier Development Council; Team NEO, a nonprofit focused on attracting companies to the region; the North East Ohio Hispanic Chamber of Commerce; and WECO Fund Inc., which provides financial services and programs to low- to middle-income people and business owners.
Those groups aim to help minority-owned businesses create 70 jobs and $20 million in new revenues during the center's first year, starting June 1.
The center will be located in the Greater Cleveland Partnership's offices, which are moving from Public Square to 1240 Huron Road in downtown Cleveland.
Jackson said the center will focus on companies with $100,000 or more in annual revenues. It will complement the Minority Business Accelerator, a Greater Cleveland Partnership program focused on businesses with annual revenues of at least $2.5 million.
The Commerce Department's announcement included $7.8 million in grants for 27 minority-business centers across the country. The Minority Business Development Agency supports about 40 such facilities nationwide, down from 100-plus centers at the peak of its federal funding.
Spokeswoman Bridget Gonzales said the agency looks at factors including the presence of minority businesses in a state or region and the potential for those companies to create jobs, fuel exports and contribute to economic growth.
"In the state of Ohio alone, there are close to 60,000 minority-owned firms," she said. "So certainly there's a ready-made pool of potential firms to work with."
The Cleveland-Elyria-Mentor area recently ranked 51st on a list of the 52 best cities for minority entrepreneurs, assembled by Forbes and economist Joel Kotkin.