presentation on the neighborhood development center
TRANSCRIPT
NDC:
Building
Neighborhood
Economies from
Within
Rebuilding Neighborhood Markets February 3, 2015. Greater Ohio Policy Center, Finance Fund and Ohio CDC Association.
Inner city
neighborhoods
University Avenue, St. Paul, 1986
Detroit, 2013
Sears building, South Minneapolis, 2001
Despite obvious deficits, inner city neighborhoods have many assets NDC’s model links the energy of
neighborhood entrepreneurs to the vitality of their own neighborhood
Over 300 NDC-supported entrepreneurs are open in formerly vacant neighborhood buildings
Opportunity to
build from
within
Dwayne Etheridge, Owner, New Image Construction and NDC training alumni and loan client.
• Communities of color and recent immigrants start businesses at a high rate
• Twin Cities population of color is growing rapidly
• These communities possess unique market opportunities and competitive advantages
• Developing these opportunities AND keeping these businesses in inner city neighborhoods is NDC’s strategy
Twin Cities snapshot
• St. Paul: • 44% persons of color • 23% of total population below poverty • 18% foreign born • 16% African American • $47K – median HH income
• Minneapolis:
• 40% persons of color • 23% of total below poverty line • 15% foreign born • 19% African American • $50K – median HH income
• Metro region: 24% persons of color (676,000
out of $2.9M)
• Forecast: Metro region will be 40% persons of color by 2040.
Manuel Gonzales, owner, Manny’s Tortas
NDC’s Targeted
Communities
• NDC focuses on neighborhoods and ethnic communities with high levels of poverty and unemployment
• 80% of NDC’s resources focus on four lowest income neighborhoods in TC: 62 – 80% persons of color 31 – 42% below poverty 12 – 24% unemployment
• 51% of NDC trainees are under 30% of
AMI, and 81% are under 50% of AMI. • 41% of NDC trainees have a high
school degree or less. An additional 23% have up to two years of technical school or college.
Dalton Outlaw, owner, Element Boxing and Fitness
Shongleng Yang, Onwer, Hmong Village
What barriers
do inner city
entrepreneurs face?
Language Access to capital Relevant business knowledge Business networks Cultural & religious barriers Trust in institutions
NDC staff
Culturally competent, business savvy
Community
partnerships
Since 1993, NDC has partnered with 52 different community organizations to connect with their entrepreneurial talent.
New American Academy
Northside Economic Opportunity Network
Hope Community
NDC partners
Entrepreneurial
training
220 low-income entrepreneurs, mostly persons of color, trained yearly
Provides culturally competent training in 5 different languages
All classes are taught in community settings
Partially funded by local and state government
Small business lending
NDC makes 40-70 business loans and financings every year to start up and emerging entrepreneurs.
Has provided nearly $14 million in loans since 1993, and more than $1 million last year alone
Loan capital obtained from multiple public and philanthropic sources . Ahmed Hassan, Owner, Hassan
Transportation, with new truck with $40,000 Islamically Acceptable Financing from NDC
Business assistance
− Record keeping − Marketing & graphic design − Energy audits − Growth planning − Restaurant & food consultation − General management
Services include:
Most services provided at no cost Services funded by multiple public and philanthropic sources
Filling key
vacant buildings
60 percent of NDC assisted businesses now occupy a formerly vacant building.
NDC has redeveloped six commercial properties that now house more than 120 small businesses.
Plaza Verde, Minneapolis
Midtown Global Market, Minneapolis
Positive
community
outcomes
82 percent of NDC assisted business owners hire neighborhood residents
90 percent say they serve as role models for youth and/or young adults in their communities.
39 percent report they serve as leaders in groups or organizations in their neighborhood or ethnic community
51 percent say their businesses
serve as gathering places for their communities
NDC by the numbers
NDC staff at the opening of Awash Market in St. Paul
NDC businesses return more than $46 million annually to their own neighborhoods, and $73 million annually to the Twin Cities area.
Approximately 85 percent of NDC businesses are entrepreneurs of color: 40 percent African American, 39 percent recent immigrant and 6% Native American. Full and part time jobs in
NDC-assisted businesses: 2,285 Average hourly wage: $12
Cost per job: $4,941 Average Number of Employees per Business: 4
State of Minnesota and NDC
NDC has been supported by the State of Minnesota in multiple ways:
• Loan capital – “Urban Initiatives Loans”: $2.2 M to NDC pver 10 years. $18M / 806 loans via 7 lending
partners; 73% borrowers of color; leveraged $90M private debt
• Business assistance and training funding:
$500,000 over three years to NDC $2M/year in TA grants to 16 CBO’s Assisted 4,061 businesses Created 2,377 jobs
Business incubtors: $1.1M toward the
building of Midtown Global Market
• New Initiatives to reach deeper into communities of color