Businesses can take root, grow at Springfield's SBDC

The center, started in 1985, provides lower interest loan products, reasonably priced office space, and business counseling and workshops to individuals looking to start a business or those working to grow an established business.

The SBDC works with for-profit small businesses, said Loan Program Manager Warren Holden, offering loan rates that can be a few points lower than traditional banks.

Holden averages between $500,000 and $1.5 million per year in loans, he said, with the last four years all averaging over $1 million.

"What Warren does," Anzur said, "is match clients with appropriate funds. They may need equipment, a new facility or to add on to an existing facility."

The SBDC regularly offers business counseling to nonprofit organizations and does not make loans for residential or investment properties, Anzur added.

Funding comes from the State of Ohio through the Department of Development's own SBDC office, the city of Springfield and Clark County.

"We couldn't exist if it wasn't for the organizations that fund the program. They are just firmly behind us serving the Springfield business community," Anzur said.

The Ohio SBDC gives Springfield $62,000 annually, the city contributes $116,000 and the county adds a $25,000 gift every year.

"By supporting the SBDC," said Clark County Commissioner John Detrick, "we help our county residents be able to borrow money at low rates so they can start and grow their business."

In addition, Holden said, banks, accounting firms and law firms are aware of the organization and work with them closely, offering support and referring people to the SBDC.

The SBDC will not take on the total cost of a project and participates with area banks, which normally accept 50 percent to 60 percent of the cost of a project.

"We'll take on 30 to 40 percent of the project and the client is expected to take on some of the financial risks involved," Holden said.

While the loans are important, the physical space provided by the SBDC can be the thing that makes the difference for some start-ups. Offices come with low rental rates — from $120 to $650 per month, including all utilities except phone — and only a 30-day lease termination requirement. Tenants can also take advantage of common services.

"New companies benefit from available services like a common receptionist, a professional reception area and a copier. That cost savings alone can be a great benefit," said Folker Hemmann, president of the German-American Development Corp. and treasurer of Meva.

Hemmann's story is unique in that he established his business, the German-American Development Corp. at the SBDC in 1995 and began to recruit German companies to the US, often locating their first North American offices at the SBDC.

"The biggest advantage of the SBDC for me is available space," Hemmann said. "When I bring in a new company, I can quickly and easily secure a space for them and it's important to have the option to end the lease term in 30 days when a larger or different type of space is needed," he continued.

All together, Hemmann said he's brought eight companies to the U.S., including Meva and Wiener Plein and Baus, an industrial and scientific electronics manufacturer.

Wiener Plein currently has an office at SBDC; Meva moved out in early July, after eight years at the Auburn Avenue location, into its new North American headquarters at AirPark Ohio.

Meva manufactures, rents and sells concrete forms used in the construction industry. The company makes the Imperial system, which has to be lifted with cranes and is used on larger commercial jobs, and a light hand set system, MevaLite, that can be manipulated by construction crews without special equipment. The forms range in size from 12 feet by 8 feet for Imperial forms to a much smaller 3 feet by 6 inches for some MevaLite forms.

Meva's recent move is exactly what the SBDC works toward for every client. "We want clients to come in and outgrow us, moving on to something bigger and better," Anzur said.

The company's new 40,000-square-foot location supports about 35 employees in the cleaning and repairing of the concrete forms. The facility represents a more than $3 million investment in the Clark County area.

Meva and many other SBDC clients, including Honor Flight and New Neighbors Residential Services, have benefitted from other professional relationships established at the center.

As part of the incubator, the diverse group of tenants often become friends, Anzur said. They talk to each other and the SBDC staff, learning from the others' experiences. "Sometimes the office small talk can yield some big things for tenants," Anzur said.

The SBDC also works in conjunction with other community groups like the Center City Association and the Greater Springfield Chamber of Commerce HITS program.

The SBDC staff, which includes business counselors, Web developers, marketing and sales experts and administrative support, can not fulfill every client need, so Anzur said they often refer to outside agencies with whom they have established relationships.

Another resource for clients is the SBDC's Board of Directors, which Anzur said is staffed with "good professional people who are truly willing to get involved."

Simply put, Springfield and Clark County has a unique resource for small businesses not found in every community, Detrick said.

"The SBDC brings more economic vibrancy to our area," he added, "and that strengthens the overall local business community."