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The Neighborhood Economies Initiative (NEI) is a comprehensive, targeted economic development program that benefits small businesses and low-wage workers. Focusing on specific neighborhoods and business sectors, NEI offers firms an innovative integration of financial, technical and workforce assistance.
More than half of the nation's low-income employees are at small firms, but few of these businesses have the resources to offer benefits or much room for advancement. By helping businesses in low-income neighborhoods, Seedco's Neighborhood Economies Initiative helps low-wage workers and the local economy.
Helping Distressed Neighborhoods
NEI's roots are in Seedco's three-year disaster relief program in the aftermath of 9/11, the Lower Manhattan Small Business Workforce and Retention Program, which loaned more than $26 million and provided technical assistance services to hundreds of businesses and nonprofits and is credited with saving more than 6,000 jobs in Lower Manhattan. The experience convinced Seedco that a mix of business services in a targeted neighborhood is a powerful idea.
In 2004 Seedco launched NEI, which operates in New York City, Memphis and Alabama. In each city, the program is focused on specific communities that have a high concentration of small businesses, a large population of low-wage workers and opportunities for commercial investment. In Memphis, for example, NEI is working in the city's South Central business improvement district and the surrounding neighborhoods with loans to bring in a new luxury Westin hotel as an anchor project, workshops for local small businesses in everything from healthcare to local tax credits, and investment in a loan fund for small firms in the area.
A Mix of Services
NEI's economic development philosophy is to be able to provide answers to a business' needs for affordable capital, credible information and a ready workforce. In New York City, for example, NEI operates two Business Solutions Centers. When an entrepreneur walks in looking for help, he or she has access to a wide range of comprehensive, highly specialized services-loans, a hiring pipeline, business development advice, professional services and more.
Workforce Development
Seedco's long-standing experience in workforce development is a golden asset to NEI clients looking to hire. Seedco's One-Stop Career Center In Upper Manhattan offers local firms a pipeline of workers looking for a job, and the EarnBenefits program helps employees access work supports such as tax credits, health insurance and training opportunities-income-enhancing benefits that are known to help keep a worker on the job.
Technical Assistance
Sometimes what a firm needs more than anything else is information. Seedco holds workshops, provides references and holds one-on-one counseling sessions with small business owners to assist with crucial business issues such as marketing, legal advice, information technology resources, facilitation for working with government programs and business planning.
Finance
Access to capital can be the crucial factor for a company's success or even survival. NEI staff work closely with Seedco Financial Services (SFS), our community development financial institution with $75 million under management, to provide flexible, below-market financing. We also connect NEI clients with private and nonprofit partners like Accion and East Harlem Business Capital Corporation to provide micro loans of less than $25,000.
Each of these programs works best in conjunction with the others. For example, loans from SFS typically include a covenant that requires the firm to hire locally.
For more information on NEI, please contact Steven Cohen.
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