As published in the August 1, 2014 Toledo Business Journal
Inna Kinney
Economic and Community Development Institute
Investing in the community
Toledo Business Journal recently interviewed Inna Kinney, founder and CEO of the Economic and Community Development Institute. She shared the following thoughts.
Toledo Business Journal: Can you explain the mission and vision of the Economic and Community Development Institute (ECDI)?
Inna Kinney: Founded in 2004, the Economic and Community Development Institute (ECDI) is a 501 (c) (3) non-profit economic development organization headquartered in Columbus, Ohio, with offices in Cleveland and Toledo, Ohio. ECDI’s mission is “to invest in people to create measurable and enduring social and economic change.” ECDI serves all 88 counties in Ohio and is the 4th largest SBA Microloan intermediary lender in the U.S. As a U.S. Treasury designated Community Development Financial Institution (CDFI) microlender, ECDI addresses the needs of aspiring entrepreneurs and small business owners in the creation and expansion of their businesses. ECDI’s programs and services are categorized into three focus areas designed to Invest, Educate, and Innovate.
Invest: ECDI fills a gap in the credit industry by offering loans ranging from $500 to $350,000 to Ohio-based businesses through its 41 revolving loan funds. Since 2004 ECDI has invested, through small business lending, over $18,000,000 to 2,250 local and small businesses, creating or retaining 4,500 jobs. Due to increasing demands for loan services in 2011, ECDI has since administered over $6 million in loans to an additional 1,550 small businesses throughout Ohio, creating or retaining 2,850 jobs.
Educate: Through programs and services offered by ECDI and the SBA Women’s Business Center of Ohio, entrepreneurs and small business owners are provided with the tools necessary for business creation or expansion. Training in financial literacy, small business development, social media, and marketing better prepare clients for the business world and certification workshops, online training, mentorships and technical assistance encourage economic and financial self-sufficiency. When loans are granted, technical assistance is offered to group or individual loan clients throughout the duration of the loan (typically 60 months).
Innovate: ECDI offers innovative services and programs to current clients and provides them with access to markets through the Growing Entrepreneurs Initiative Business Incubation program. The FoodFort program, which is a cutting edge, food-based incubator, has given hundreds of ECDI clients the opportunity to get their businesses off the ground by providing them access to: specialized training in legal, marketing and sales assistance; ongoing technical assistance; a fully functioning commercialized kitchen for cooking and baking needs; and food safety and protection certification courses. ECDI operates small business incubation programs, such as Workplace-Incubation Network (WIN) and Retail Incubation Supporting Entrepreneurs (RISE), which provide new and existing entrepreneurs with the business development tools necessary for success.
As an experienced small business lender throughout the State of Ohio, ECDI utilizes additional private sector investments to capitalize micro and small businesses, resulting in job creation and stabilization of local economies. ECDI believes that the use of private sector investment plays a key role in job creation and decreasing unemployment rates in our region.
TBJ: Can you discuss ECDI’s Small Business Loans program and its requirements?
Kinney: ECDI offers two types of Small Business Loans: a five year term loan and a one year line of credit. Because ECDI is a non-profit microlender, we have very little requirements for application – a written business plan and proof of previous bank rejection. If a client needs help with their business plan, we offer plenty of services and can refer them to a range of experts who can give one-on-one assistance.
TBJ: ECDI’s office in Toledo has been open for over a year now. Can you discuss the number of loans that have been made to Toledo businesses, the amount of these loans put in place, and your expectations of additional lending activity this year?
Kinney: The Toledo office is growing rapidly and receiving an increase in calls inquiring about microlending. Currently, 8 loans have been approved totaling $286,694 and there are at least five strong candidates in the pipeline. The Toledo office is partnering with Toledo Chamber of Commerce, Anthony Wayne Chamber of Commerce, Assets Toledo, and other non-profit organizations. Through these partnerships and other marketing and networking efforts, ECDI will surpass its goals. A great benefit of having partners is ECDI’s ability to provide additional assistance and business counseling to clients. Clients, who are in the beginning stages of pursuing their entrepreneurship dreams, receive a wealth of knowledge and expertise from ECDI and ECDI partners. To date, over 30 clients have been assisted in this area. From now until the end of the year, we hope to fund 12 additional loans, as well as increase assistance and business counseling to small business owners.
TBJ: Can you discuss the type of Toledo businesses that have received this financing, the largest of these loans, and any other information about the growth prospects for these firms?
Kinney: The businesses who have secured loans include a skin care product, used car lot, restaurant, transportation company, law office, and a theater/pub. The largest amount we have loaned is $65,000. Each business is doing well. The transportation company purchased licensing, allowing them to expand their reach and clientele. The theater/pub and restaurant have both been showcased on various media platforms in our area. The Toledo clients and their businesses are all on the path to success. Most importantly, the community has benefitted. As each business opens new doors or expands, jobs are created and retained. We project that 44 jobs will be created or retained in Toledo as a result of these initial businesses, a projection that is fulfilling our mission and vision. ECDI’s relationship with our clients does not end at the signing of loan documents; we continue to provide technical assistance to ensure businesses success and profit. The three words incorporated in our logo, “Invest, Educate and Innovate,” are the keys to our success and have led us to awards and accolades. Earlier this year, ECDI achieved the status of 4th largest SBA microlender in the US.
TBJ: Can you discuss ECDI’s Women’s Business Center of Ohio?
Kinney: The mission of the Women’s Business Center of Ohio is to “empower women business owners with resources and tools to create strong, sustainable businesses.” The WBC acts as a catalyst for providing in-depth, substantive, outcome oriented business services to women entrepreneurs, a representative number of whom are socially and economically disadvantaged. The host agency, ECDI, received Small Business Administration funding in the fall of 2012 to create The Women’s Business Center of Ohio which opened in January of 2013.
The WBC Columbus is open 40 hours a week, which includes Tuesday and Thursday evenings, and two Saturdays per month. During its first year, the WBC assisted 18 businesses with start-up and 15 businesses with expansion through training, counseling sessions and access to capital. Twenty-two businesses were provided additional capital. The combination of these efforts resulted in the creation of 29 jobs. Of the 150 members who joined during its first year, approximately 25% use the Center on a regular basis.
TBJ: Explain the ECDI Training Institute and any services that might be available to Toledo small businesses?
Kinney: ECDI offers a wide variety of classes that teach business fundamentals, such as how to write a business plan. Currently, we are working to provide these services in Toledo. We have existing partners in Toledo who we refer clients to when they are in need of one-on-one technical assistance for business start-up. All of our relationship managers are also knowledgeable on these topics and are more than happy to offer their services to those in need of assistance. We are also working with Growth Wheel to offer specialized online technical assistance to those whose geographic location or transportation means make it difficult to receive assistance.
TBJ: Explain any opportunities that you provide to small businesses involving health insurance.
Kinney: The Women’s Business Center hosts an Affordable Care Act (ACA) Information session where we partner with representatives from various insurance agencies. The training focuses on the healthcare options for individuals, families, and businesses. Attendees also learn about valuable tax credits that can be put towards the cost of their healthcare premiums, and easier enrollment options. Additionally, the WBC has resources in the center for members who are looking for more information on health insurance.
TBJ: Are there needs for volunteers to support your organization?
Kinney: Yes, absolutely! ECDI is always happy to take in volunteers who are willing to help our cause! If you have a skill that you think would be of value to our organization or our entrepreneurs, do not hesitate to give us a call and offer your services.
Temporary staff members, such as volunteers and interns, provide essential services to ECDI’s day-to-day operations. They come with fresh ideas and enthusiasm for the work they are doing. They also can become ambassadors for ECDI, its programs, and clients. Volunteers, interns and other paid staff are considered partners in implementing the mission and programs of the organization. Consistent procedures for recruiting, orienting, and assigning responsibilities to these interns and volunteers create a rewarding experience for all parties involved.
ECDI maintains a strong policy of volunteer/intern opportunity. We recruit, accept, train, promote, and dismiss volunteers on the basis of personal competence and position performance, without regard to race creed, color, religion, sex, sexual orientation, age, marital status, or handicap.
TBJ: Are there any other issues that you would like to address?
Kinney: ECDI is committed to our mission of investing in people to create measurable and enduring social and economic change here in Toledo and throughout the state of Ohio. We look forward to making a positive impact in local communities by continuing to work together with our partners and addressing the needs of inspiring entrepreneurs and small business owners in the creation and expansion of their businesses.