Category Archives: California Capital News and Updates

California Capital News and Updates

California Capital Survey Sponsored by T-Mobile, California American Water, Provides Insight on Needs of Small Business Owners Hoping To Do Business with Regulated Public Utilities Companies

May 6, 2021 | When small business owners look to expand their operations, questions of how to access new markets and build a broader customer base arise. A promising option for many, one that can lead to higher revenue and access to a broad business network, is procurement. Procurement is the process through which private companies or government agencies enter into a contract with specialized businesses to acquire goods and/or services. It is how military bases source ingredients for their cafeterias, and how regulated utilities companies hire experts for inspection services and project documentation. Contracts are not always distributed equitably, however, with smaller businesses from marginalized communities often left out of the procurement process.

FOSTERING INCLUSIVE SUPPLY CHAINS

To ensure that these opportunities extend to minority, women, LGBT, and disabled veteran owned businesses, the California Public Utilities Commission (CPUC) instituted a Utility Supplier Diversity Program in 2015 through General Order 156. Through this program, CPUC monitors the diversity of the businesses that utilities contract with, and maintains a public directory of certified diverse businesses for use by utilities companies. Despite a commitment by regulated utilities companies to foster inclusive supply chains, many diverse small businesses still face obstacles.

California Capital FDC is committed to the success of Supplier Diversity Initiatives across the state, and connecting diverse small businesses with the procurement counseling, certification assistance, and training they need to acquire and perform on contracts. With this in mind, with the support of T-Mobile—a regulated telecommunications company—and California Water Association (CWA), California Capital undertook a statewide survey of diverse business owners to determine what barriers to access they experience when looking for procurement opportunities, and how capacity-building services can best respond to those needs.

T-MOBILE’S SUPPLIER DIVERSITY PROGRAM: BUILDING EQUITY

As a regulated public utilities company with their own robust Supplier Diversity Program, T-Mobile’s sponsorship of this survey was a natural fit, and reflects the importance of groups across industries creating equitable opportunities for businesses that traditionally face higher barriers to success.

“We are a part of  T-Mobile’s procurement team which supports the goal of reaching more small and diverse suppliers with opportunities. We meet suppliers, sit on panels, and attend industry events to network with qualified suppliers that are interested in doing business with T-Mobile,” explain Stacie Harwood and Joyce Christanio, Supplier Diversity Program managers reporting to the Director of Supplier Diversity Chi Pak. “We seek opportunities for connection across the enterprise.”

Business owners from population groups in supplier diversity initiatives—including minority, women, disabled veteran, and LGBT business communities—were surveyed over the span of  18 months, from October 2019 to April 2021. Beginning in October 2019, survey responses were collected in person via random sampling of participants at industry events.  From March 2020 onward, as Covid-19 led to event cancellations and social distancing precautions were implemented, responses were collected virtually via Survey Monkey email campaign. The numbers presented below represent data collected virtually from March 2020 to April of 2021.

DATA DRIVES ACTION

The data collected reveals the barriers that exist for diverse business owners hoping to sell their services to public utilities companies, explores the types of training and assistance that would be most effective at crossing those barriers, and addresses differences in demographics—like business maturity and location—that must be considered when responding to business needs.

Respondents were asked to provide basic information about their businesses, such as how many years they had been in business, and in what zip code they operate, and their industry.

19% of the businesses surveyed had been in operation for between 1 to 3 years, while 68% had been in business for more than 5 years. 60% and 30% of respondents were located in Northern California and Southern California, respectively, while only 10% were located in the Central Valley region.

While these data points on their own do not indicate what challenges diverse business owners may experience, they are an important backdrop to the more specific questions, and can inform the actions of public utilities companies and organizations like California Capital when they look to create new opportunities. Of the 396 respondents, only 17% of respondents said that they are currently working with regulated utilities companies, and only 8% have worked with any in the past. 297 respondents—75%—reported that they have not yet worked with any regulated utilities company.

“The challenge for a new business entering the procurement space is precisely that they’re new,” says Ms. Harwood. “Community-based organizations, like California Capital, are a vital tool. They coach  companies to build capability statements and encourage companies to build business traction through networking.”

DIVERSE BUSINESSES, OVERLAPPING OBSTACLES

The challenges that businesses face in taking advantage of procurement opportunities vary, but common themes do arise. Of the 280 survey respondents that shared examples of obstacles they have encountered, many said that a lack of information on bids and available opportunities posed a significant challenge, including information on the bidding process not being open to new vendors and reliance of utility companies upon existing contracts or vendors. Others said that lack of access to decision makers was a concern—and the desire to create relationships with decision makers in order to establish contracts was referenced many times.

“Since finalizing our merger with  Sprint in April 2020, we are integrating the two mature supply chains which entails new processes and supplier rationalization,” explains Ms. Christanio, who joined T-Mobile after 10 years of managing Sprint’s Supplier Diversity Program. “Virtual conferences, matchmaking events, and industry panels are valuable for us to connect  with new diverse and small businesses of all kinds.”

“KNOWLEDGE IS POWER”

Even with robust and dedicated Supplier Diversity programs, the contracting process can be daunting for small businesses like those surveyed (60% of whom have annual revenues of less than $1 million). Outreach initiatives, individualized procurement counseling, and informational programming are essential for demystifying the process.

For example, diverse small businesses hoping to do business with regulated utilities companies can benefit from gaining certifications, such as Minority/Women/Disabled Veteran Business Enterprise (DVBE) and LGBT Business Enterprise certifications that can help them qualify for certain Supplier Diversity program initiatives. Unfortunately, the application process can be difficult to navigate, as they require personal and company tax returns and a laundry list of supporting documents that can be difficult to compile. In these situations, guidance from experienced procurement counselors can be a key to success.

“Knowledge is power,” says Ms. Harwood, reflecting on the ways that educational opportunities provided by community-based organizations like California Capital can lead businesses interested in procurement toward success. “Education is huge, because it helps business owners not only understand technicalities like the contracting process and how to write a capability statement, they also get to speak with folks who know the companies they want to work with and help them research the best opportunities.”

AN INFORMED RESPONSE 

To serve diverse business owners in the most effective way  and connect them to contracting opportunities for which they are qualified candidates, California Capital is using the data collected to create programs that are responsive to the needs of business owners from marginalized communities. 48% of respondents requested training in the areas of business development and marketing; 22% in contract management and compliance; 18% in planning and research; and 25% requested training in growth management, with 31% also reporting that financial services and access to capital would be helpful.

“As an organization that provides training to our small business community in the greater Sacramento area, it is important that our programming meets their specific needs. The survey does just that,” explains SiewYee Lee, California Capital’s Program Development Manager. “The data collected educates California Capital on the type of training that is asked for by diverse businesses that we serve. Access to Capital, Business Development and Marketing, and Planning and Research remain the primary focus of our surveyed business owners, regardless of their maturity level. California Capital is committed to providing a networking platform between diverse businesses and buyers.”

The data collected from the survey will allow California Capital to provide effective, responsive training and matchmaking opportunities for diverse businesses across the state, preparing them for contracting opportunities with private companies like T-Mobile, members of California Water Association and more—and when all stakeholders are actively engaged in building an inclusive small business ecosystem, everyone benefits.

California Capital News and Updates

Capital Region Small Business Week Returns in May with Innovated Virtual Setting

April 22, 2021 | Capital Region Small Business Week, the annual event that brings together small business experts from across the Sacramento region, will return in May with two days of webinars and online panels. Sponsored by Sacramento Municipal Utilities District (SMUD), the events on May 18th and 19th will take place virtually as restrictions on gatherings related to the Covid-19 pandemic remain in place across the region. 

“We have learned so much about connecting remotely over the past year,” says Sophia Kanaan, Director of California Capital’s Women’s Business Center. “We have taken what Capital Region Small Business Week looked like in the past and revamped the programming to be as safe and accessible as possible, while still creating an engaging and inspiring atmosphere.”

With the goals of engagement and inspiration in mind, the programming has been designed to cater to specific types of business owners: sessions on Day 1 (May 18th) are geared towards start-up businesses and new entrepreneurs, while Day 2 (May 19th) will focus on topics most relevant to established businesses and those that have had to pivot their operations in recent times. 

Innovation For a Changing Business Environment 

While this structure is a departure from years past, the change reflects the evolving needs of small businesses across the Capital Region. Sessions, webinars, and business opportunities offered with specific types of businesses in mind will allow for deep dives into highly relevant topics, and ensure that business owners and entrepreneurs leave with information and connections that will help them thrive. 

“There will be presentations on a wide range of subjects, and our hope is that everyone leaves with tips, or leads, or new business contacts that they can leverage,” explains Ms. Kanaan. “We want to celebrate small businesses, but we also want them to see this as a chance for growth.”

Indeed, the growth of America’s small business ecosystem is celebrated annually across the country. National Small Business Week (NSBW) was first designated in 1963, and is now led by the U.S. Small Business Administration (SBA) each May. While highlighting outstanding entrepreneurs, business owners, and advocates, NSBW also honors the fact that, according to the SBA website, “more than half of Americans either own or work for a small business, and they create nearly two out of every three new jobs in the U.S. each year.” Capital Region Small Business Week honors this impact on a local level.

Click here to register for Day 1 of Capital Region Small Business Week, geared towards Entrepreneurs & Start-Ups (May 18).

Click here to register for Day 2 of Capital Region Small Business week, for Existing Businesses (May 19).

Capital Region Small Business Week will include presentations from: SMUD, Sacramento County Business Environmental Resource Center, Internal Revenue Service, California Capital Women’s Business Center (WBC), The City of Elk Grove, CSU Sacramento College of Business, The Truthful Kernel, Small Business Development Center, East West Bank, Marshall Retail Group, California Capital Procurement Technical Assistance Center (PTAC), U.S. Small Business Administration (SBA), Sacramento Employment and Training Agency.

California Capital In The News, California Capital News and Updates

California Capital Receives Wells Fargo Open For Business Fund Grant, One of Three Regional Recipients

March 25, 2021 | California Capital FDC, Opening Doors, and Rural Community Assistance Corporation (RCAC) have received grants as part of the Wells Fargo Open For Business Fund program. The funds awarded to the three Sacramento-area Community Development Financial Institutions (CDFIs) are part of Well’s Fargo’s national effort to help small businesses recover and rebuild in the face of the economic effects of COVID-19. California Capital will receive a grant of $500,000.

The Open For Business Fund program is designed to foster an inclusive recovery for U.S. small business, paying special attention to access to capital and technical assistance for diverse businesses from communities that have been disproportionately impacted by the pandemic. Many businesses in communities of color have less access to financing and other resources to help them survive.

California Capital seeks to bridge this disparity and reach women, minority, disabled veteran, and LGBT business owners and low to moderate income communities with financial services and technical assistance. The Open For Business Fund program focuses on increasing access to capital through CDFIs, technical assistance, and long-term recovery and resiliency programs. Through a Lending Center, Women’s Business Center, and Procurement Technical Assistance Center, California Capital offers these services to business owners in 28 counties across Northern California.

The Open For Business grant will allow California Capital to continue offering free technical assistance and business counseling, and to reach even more diverse business owners with financial services. With equitable access to these resources, California’s small business community will be empowered to rebuild and economic opportunity will be amplified.

Read the full press release here: Sacramento CDFIs California Capital, Opening Doors and Rural Community Assistance Corp receive $3M from Wells Fargo Open For Business Fund to Help Minority-owned Businesses Recover

 

Black-Owned Business, California Capital News and Updates, Client Success Stories

Resolute Circles Group

As a professional fitness instructor, Riva Jean-Paul knew that the Covid-19 pandemic of 2020 would call for adaptation. With operations focused mainly on in-person classes and live events, Riva turned to the WBC’s Empowered Entrepreneur course for guidance in pivoting her business to an online platform.

“I saw that there was a need to keep people happy and healthy from home,” Riva explains. Using the Empowered Entrepreneur book, accompanying workbook, virtual group sessions, and weekly one-on-one counseling, Riva expanded her offerings and developed an online membership platform. Within weeks of launching the new program, Riva had members signed up and new interest every day. Being able to pivot her business to respond to the unique needs of her community has allowed Riva to grow and thrive as an entrepreneur. “My business now supports women emotionally and physically impacted by COVID-19 in a way that is smart, intentional, and empowered,” she says. “I am an empowered entrepreneur.”

Black-Owned Business, California Capital News and Updates, Client Success Stories

Constance Agee Creates Pathways to Entrepreneurship Amid Pandemic

Constance Agee, founder and Executive Director of Agee Fashion Institute, believes that entrepreneurs are the key to bringing sewn products manufacturing back to the United States—but her own entrepreneurial journey began largely out of happenstance.

As an 18-year-old in the United States Air Force needing organizational patches attached to her uniform, Constance was not interested in using the alteration shop on the base. 

“It seemed like a lot of money, and I knew how to sew,” she explains. “So I decided to do it myself.” 

Seizing Opportunities, Creating More

When people began asking how she got her uniforms altered so quickly, the spark of a business idea was ignited. Constance began offering her alteration services, providing competitive prices and marketing by slipping flyers under the doors of the dormitory of others on base. 

While continuing her career in the Air Force working in transportation logistics, Constance gained experience in the sewn products manufacturing industry by volunteering at an Alterations Shop on the Royal Air Force Lakenheath base in Suffolk, England. After completing her Air Force service, Constance returned home to California and started a home-based alterations business contracting with the then-McClellan Air Force Base in North Highlands. She continued to broaden her knowledge base, studying for two years at the Academy of Art in San Francisco in Apparel Manufacturing and completing another two years of school in merchandising. 

Enterprise-Building For Impact

Eventually, a successful contract with the Travis Air Force Base allowed Constance to put her manufacturing training to use. She created and produced a line of activewear, and in search of more information on selling her services to government entities, she discovered California Capital FDC’s Procurement Technical Assistance Center (PTAC). After listening in on a webinar, Constance began working with a PTAC counselor. 

“They really helped pull everything together,” Constance explains. “They went above and beyond.”

Constance’s varied background—her knowledge of transportation logistics, art school education in design, technical education in manufacturing, and experience in content creation from years working at Delta Dental in training and development—ultimately led her to establish Agee Fashion Institute (AFI). Combining her background with the technical assistance of California Capital, Constance launched AFI as a vocational institution designed to help its students create and discover career pathways in design and manufacturing. 

In fact, this goal is at the heart of AFI’s unique Education-to-Employment curriculum. 

“[Education-to-Employment] is the process of developing a pathway for students to be introduced to and discover the technicalities of a particular career field, to then work in that field,” Constance explains. 

Forging Community Connections

At the outset, Constance used AFI as a resource for youth in the Greater Sacramento Area to access unique training and opportunities. Working with the Folsom Cordova Community Partnership, the Met High School, and the Sacramento City Unified School District, AFI conducted outreach and welcomed individuals as young as 12 to programs and internships that introduced them to career pathways that are often underrepresented as options for high school graduates. 

“Everybody’s not ready to go to college at the same time,” Constance says. “But that doesn’t mean that you cannot gain the experiences to succeed.”

AFI students gain training and certifications in vocations such as Fashion Merchandising, Pattern Engineering Skills, Prototype Developer Skills, and Industrial Cutter Skills. Graduates of these programs have found success in different avenues towards employment, including higher education and internships with AFI’s resource partners. 

Collaboration For Expanded Offerings

Two such partners are SynByo Prototyping Guild and AMW Design, which have provided crucial support and access to a makerspace for AFI students. Through these partnerships, AFI was able to add 3-D Printing and Industrial Cutting to their curriculum, and graduates have the opportunity to continue their pursuit of employment in the various fields of sewn products manufacturing.  

“Sewing is a process in itself, and in the context of manufacturing it is often ignored or undervalued,” says Mike Bell, the CEO of Synbyo. 

An advocate of manufacturing overall, Mike looks to the partnership with AFI as a way to create an integrated network of designers and manufacturers that are able to approach production processes holistically.

That’s why Synbyo’s network building takes an interdisciplinary approach, building out a comprehensive Sewn Products Manufacturing training that seeks to empower individuals to develop technological skills—like 3-D printing, laser cutting, and Computer-Aided Design—that can ultimately be translated into an enterprise in a number of product sectors. 

With these partnerships, a continued relationship with California Capital FDC, and an ethic for empowering community members to create their futures, Constance was positioned to respond to the unique needs of the Covid-19 pandemic. 

After setting up a Sewing Lab at Synbyo’s Makerspace and working with California Capital’s Women’s Business Center, Constance offered a Sewn Products Training course featuring a hybrid model with virtual instruction on manufacturing and in-person technical training. The first Sewn Products Training was held during the Fall of 2020, and proved to be a successful pilot of the program. 

Constance knows that soft product manufacturing is a huge opportunity for empowerment in underserved communities. While the pilot of the Sewn Products Training focused primarily on the production of PPE masks, the ultimate goal is to bring soft product manufacturing back to the United States. Students are trained to use their home sewing machines to create prototypes and also have the opportunity to access industrial training in areas such as pattern engineering and CNC cutting. 

“It really solidified for me that this is a viable option for people,” Constance says. “Students were receptive of what they wanted to do. Suddenly they were able to say, ‘This is something I’ve thought about for a long time, and now this whole dream of mine is coming true.’”

Many of the students were women from underserved communities, who have historically lacked access to capacity-building opportunities—including the technical assistance and capital needed to start an enterprise of their own. Funding their businesses is a challenge, but can be leveraged as an opportunity to connect with community development financial institutions like California Capital. 

“The minimum they need is a sewing machine,” Constance says. “When they expand, they may require some other funding.”

Creating Pathways to Entrepreneurship

This desire for opportunity is one that is echoed across different communities Constance has spoken with. With the Covid-19 pandemic forcing many women back into the home, the chance to operate an enterprise safely from their home—especially one with the possibility of expansion like soft product manufacturing—is empowering. Several students from the first Sewn Products Training went on to assist as instructors in subsequent series offerings, and many have other aspirations for applying their new skillset. 

“I took the training initially to learn how to sew but I was quickly introduced to such a vast wealth of knowledge about the Sewn Product Industry that I decided to stay longer and keep with it,” says Pachia Vang, the Business Navigator of Hmong Youth and Parents United Covid-19 Collaborative. 

“Moving forward I hope to use the skills I learned to operate my very own small business and start a blog to experiment with new ways of making Hmong textiles.” 

Dedicated to Sustainable Success

Constance and AFI have been a resource to students unduly impacted by the pandemic, too—students like Nusheen Baig, whose studies at the Fashion Institute of New York were upended in the spring of 2020.

Nusheen began studying at AFI when she was 16, building a portfolio for her art school application. Going through AFI’s fashion program and engaging Constance as a mentor created a pathway for Nusheen to pursue fashion school in New York, a supplementary program in Italy, and a practicum with Levi Strauss & Co jeans.

“She’s always treated me as an equal and expected a lot out of me,” explains Nusheen.

“But that is because she’s doing everything she can to make sure I can succeed.”

Indeed, AFI’s commitment to its students’ sustainable success became clear when Nusheen’s studies at FIT were ended prematurely due to Covid-19 restrictions. She returned to Sacramento, and because her working relationship with Constance had remained strong, she found a role at AFI. As returning to New York to finish school became less likely for Nusheen, Constance worked with FIT to create an accredited internship through AFI that will allow Nusheen to complete all of her credits and graduate on time with the degree she has been working towards for years. 

Designing An Innovative Sewn Products Sector 

When discussing her work, Constance readily offers the statistic that sewn products make up 90% of our lives. A sewn product is anything that requires stitching, both soft products and hard, both retail and industrial. With this in mind, it is clear that manufacturing an array of soft sewn products can lead to plentiful opportunities for aspiring designers and entrepreneurs—all they need is the training.

California Capital In The News, California Capital News and Updates

California Capital’s Chief Lending Officer Interviewed on “Your California Life”

Judy Fletcher, California Capital FDC’s Chief Lending Officer, was interviewed on the ABC 10 program Your California Life on Friday, February 26. Judy spoke with host Aubrey Aquino about how California Capital has helped businesses adapt to the economic impacts of Covid-19, and provided insight on what options are available to small business owners looking for access to capital and technical assistance. Watch the full interview below.

California Capital News and Updates, Client Success Stories

Faced With Covid-19 Challenges, California Gold Kettle Corn Pivoted Their Business With A Loan From California Capital FDC’s Lending Center

For Allison and Larry Carlson of California Gold Kettle Corn, the Covid-19 pandemic has posed some unique challenges. In 2019, their young business was gaining momentum, and they planned to spend two years taking their kettle corn tent to as many fairs, festivals, and events as possible. They would spend carefully and save thoroughly and, in 2022, pay outright for a customized food trailer—but when Covid-19 took hold across the country, news of cancelled events started flooding in. 

Time To Readjust 

Without the event-specific permits allowing them to operate their food tent, they would need a Mobile Food Facility Permit to stay in business. This meant buying a food trailer before they had planned, and it led them to California Capital FDC’s Lending Center. 

Allison Carlson of California Gold Kettle Corn with their fresh, all-organic kettle corn.

“[Allison and Larry] came to California Capital with a detailed business plan, well thought-out projections, and knowledge of the permitting process, ” says Judy Fletcher, California Capital FDC’s Chief Lending Officer. “She shared with us that at first, she and Larry were devastated by the impact the pandemic had on their business. But being resilient, they were not going to allow the shutdown to shut them down.”

Mission-Based Lending Supports Sustainable Success

With decades of entrepreneurial experience, The Carlsons know what it takes to grow an idea into a highly demanded product and a thriving business. Still, Allison reveals, they appreciated the diligence of California Capital’s lending team. 

“For them to be able to make me think even harder [about my proposal] is why I think that program is one of the best out there,” she says. “I actually have someone who is going to test my theory, test my projection.” 

To be sure, the Carlson’s dedication to securing a loan was not the only area in which their entrepreneurial tenacity was revealed. 

“At a time when shelter in place forced many closures and modified work schedules, it made it very difficult to schedule appointments with the CHP office to clear DMV inspection and the Department of Health when so many fires had threatened Northern California,” explains Daisy Po’Oi, Loan Documentation and Closing Officer. 

“Through it all, Larry and Allison found a way to capitalize on an opportunity in the mobile food industry that has now driven many businesses to explore even more so than ever before.” 

Ready For What Comes Next

With the support of their sons, minds that are constantly working to envision the next opportunity for their enterprise, and ongoing support from California Capital, The Carlsons are poised to come out of the pandemic stronger than ever. The food trailer will allow California Gold Kettle Corn to have a presence across the state, and Allison is hoping to begin onboarding new employees beginning this summer. Having spent the last three years mapping the landscape for mobile food sales, the family business is ready to focus their time at the events that promise the highest impact.

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