Coastal Enterprises, Inc. (CEI) is an aggressive CDC that has a long history as a financial intermediary and can finance relatively large projects. It receives grants and loans from a variety of sources. Its focus on telecom pre-dates its participation in Community Building Through Telecommunications (CBTT). CEI focuses on telecom in two ways. First, CEI joined CBTT, because it had already financed a number of businesses in the telecom sector and wanted to learn more. Second, it supports the use of and access to electronic information and technological services and has been a pioneer in using electronic information services in its daily operation. CEI's experience in both aspects of telecom contributed a valuable perspective to the project.
CEI has a substantial business development staff, a variety of business services and considerable capital capacity that supports small businesses throughout the entire state of Maine. Through a contract, CEI runs a subcenter of the Small Business Development Center (SBDC) with funding from the U.S. Small Business Administration and the state of Maine.
Through the SBDC, CEI provides technical assistance and other support services to small businesses. CEI received funds from the U.S. Department of Commerce's NTIA, to hire a business counselor who specializes in telecom and is housed in the SBDC. The ultimate goal of the loans and technical assistance from CEI's telecom project to small businesses is to create jobs for low income people in Maine. Finding the right person for the job was a challenge. They searched successfully for a unique combination of qualifications: business management skills, telecom knowledge, experience in developing training programs and an MBA. The telecom counselor is now an important part of the business staff and will help CEI to increase its lending in telecom-based businesses.
CEI has a separate loan department with a staff that includes six loan officers and three loan administrators. It finances projects in a range from $1,000 to $300,000. Phebe Royer, was CEls representative to CBTT. A general loan specialist, Royer had made a number of telecom loans both to finance small telecommunications businesses and to help businesses incorporate telecom into their operations. Main Resource Inc. (MRI) is an example of one of Royer's telecom loans. As part of the package, CEI made a direct loan to MRI of $56,000. MRI buys used phones, restores and resells them using a labor force that is 75% low income people. The company hires a number of employees through a private employment company that uses a "try out" employment program. The try out program gives long-term unemployed people an opportunity to work with a job coach to get used to being back in the workforce. As part of the loan package, CEI made a direct loan to MRI of $56,000. In fiscal year 1995, MRI had $1.9 million in sales. That year, MRI hired 10 full-time employees and five part-time. The company projects that it will hire 14 new people in 1997 and maintain its ratio of 75% low income individuals.
Royer's experiences with telecom as a loan officer provided a valuable perspective for the other CDCs in the training portions of the CBTT. Royer found that the sector specific information she learned helped her to understand the telecom deals better.
CEI also provides technical assistance and financial support to businesses that need help using telecom services and equipment. CEI recently received grant funds from SBA's Office of Women's Business Ownership to hire a part-time staff person for its Women's Telecom Project.
Through this project, CEI will provide Internet training for women entrepreneurs in the community. It will offer 50 one-on-one sessions and host 50 workshops for small groups. CEI is a pacesetter CDC in finding ways to use telecom to improve the economy of its community.
Update
by Ashley Mahood
Main Resource, Inc. continues to train and employ individuals through welfare-to-work programs such as Job Opportunities for Low-Income Individuals (JOLI) POWER Project, and a pilot program known as The Work Exchange. The POWER Project is funded by the Office of Community Services, Department of Health and Human Services. The Work Exchange, in conjunction with CEI, is a program designed to help welfare recipients gain training and experience through a real-life work environment. As one of the four participating employers, Main Resource offers support, job shadowing, and training to individuals.
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