Shepherd Advisors is conducting a volunteer survey of companies considering application to the 21CJF competion.  http://www.surveymonkey.com/s.aspx?sm=pub_2bWsXr5QdcceT8FBMjIw_3d_3d 

The survey is short and is designed to capture some very general information about interested applicants.  By collecting this info we may get a sense of just how many applications there may be as well as the type and caliber of the applicant pool.  This could be helpful in a couple weeks as we get closer to the deadline of June 4 and you're still on the fence as to whether or not to compete and pay the $500 fee. 

The information gathered will be confidential and only the aggregate results will be shared.  It will also be shared only with those companies that participate so if you want to know what others are doing then take the survey.

Have you registered?  You need to register before you can apply.  There is no cost or obligation so go ahead and do it.  Here's the link: https://www.medcawards.org/index.jsp 

Have you read the FAQ regarding the 21st Century Jobs Fund competition recently?  Here's the link: http://ref.themedc.org/cm/attach/18efd0c7-95d3-4a2f-89e4-cae672d8ecd2/20080428_FAQs.pdf 

Here are some highlights that shed more light on  the RFP.

You already know there will be 2 types of loans, a straight loan and a convertible note.  Which will apply to you?  The MEDC says this will be negotiated with the SEIC Board.  Actually it will be negotiated with a MEDC person first since they bring recommendations to the SEIC Board or designated committee.  The key takeaway here is that it can be negotiated and if you want a straight loan be prepared to make a strong case for it because they would probably prefer the convertible note.

Here's a biggy change in my opinion.  You are required to provide a 3 year projection of your balance sheet, income statement and cash flow.  The question was if they could all be put on one page.  The answer was 3 pages.  The big change is that these 3 pages are to be in your business plan and are included in your 25 page limit.  That means your business plan is really only 22 pages. For some of you this could be tough. If you are creative maybe you can put these forecasts on fewer than 3 pages but remember the minimum size font is 10.

Their definition of Indirect Jobs is much more clear.  This is a soft number that you can estimate.  How much space you use to explain this number is directly related to how important it is to sell your application.  If the manufacturer you engage to build your widget has to hire 100 people then it's a big deal and you should explain how you got that number.  If you aren't creating many indirect jobs then don't waste a lot of time on it. Remember, 1099 employees are counted in your FTE count of your company.

More about the loans, they say repeatedly that the loan documents are still being created but will be on the web site as soon as approved by the SEIC Board.  Hopefully that will happen at their next meeting in early May. One very important clarification the MEDC has now made is that the loan will be collatoralized, and assets secured with this state loan will be first priority secured.

There is a lot more in the FAQ and we encourage you to check it out. We also encourage you to ask more questions, and sooner than later.

Give us a call if you want to discuss any of these issues further.

The SEIC Board met on April 9, 2008 to approve the RFP for the next round of the 21st Century Jobs Fund, officially launching the competition for $30 million to be loaned to technology companies in Michigan.  There was discussion about the RFP and the competion, and the RFP for peer review organizations to judge the competition. 

Our friend David Havilland with Shepherd Advisors was there and has summarized those discussions and added his take on the situation.  Here's the link to his blog: http://mi21cjf.proboards100.com/index.cgi?board=306news&action=display&thread=40 

He also has some commentary about the notes the MSF Board will provide for the winners in this competition. He provides a summary of the types of loans issued the last time around.

Check it out.

The competition is open for the $30 million available to for-profit companies through the 21st Century Jobs Fund adminisered through the SEIC Board.  We will try to keep you up to date on the process and procedures in an effort to give you the best opportunity for success.

The first thing you need to do is pull down the RFP.  The MEDC has done a very good job at providing lots of information that will guide you through the process. Here's the primary site for all the documents you will need: http://www.themedc.org/21cbizplan/ and the first link on this web page is for the RFP.  I suggest you print it out and keep it handy. You will refer to it often.

After reading it and deciding you are going to apply you should register.  You have to register at least two days before you can actually apply.  Don't wait.  It doesn't cost anything to register and you are not obligated to apply so go ahead and do it now.  Here is where you register: https://www.medcawards.org/index.jsp 

The MEDC has already created an FAQ.  They have already anticipated some questions and have answers here: http://ref.themedc.org/cm/attach/dc7e7129-be96-4b9d-b111-98da5a75ebbd/FAQs.pdf We encourage you to submit questions as you go along.  It would help everyone if you ask your questions early so others can benefit.  Others may have the same question and could benefit from knowing the answer sooner than later.  Email your questions to 21stcenturyjobs@michigan.org 

Check back here occassionally for new information or insights. We will be making an effort to monitor the progress of the competition and report on it.  By the way, the deadline for making application is 5 p. m. on June 4.

The SEIC Board will approve the RFP opening the competition for the next round of 21st Century Jobs Fund awards at their meeting on Wednesday.  $30 million will be available to for-profit companies only.

SPARK will make a presentation to explain the award criteria and provide insight regarding what companies will be the likely winners on Thursday at noon at SPARK Central.  To register click here http://www.annarborusa.org/events/event-calendar/Index.cfm?i=2475.

We'll be blogging all through the application period, which ends June 4.  So check back often.