The Small Business Development Center at Southwest Virginia Community College provides our registered clients with a monthly newsletter to keep them informed of the latest funding opportunities, regulatory issues, and best business practices. 

We would like to share our updates with you. 

Please feel free to pass this information to others and let us know how we can be of service to you.    
A HEADS UP
FOR JULY
JULY| 2022
THIS FOURTH OF JULY, WE ARE CELEBRATING OUR SWVA ENTREPRENUERS AND SMALL BUSINESS OWNERS-
YOU MAKE OUR REGION SPECTACULAR!
Employer Guide to Second Chance Hiring Programs and Tax Credits
Three Opportunities for Employers to Engage Second Chance Hires
An estimated 70 million people in the U.S. have an arrest or conviction record, and over 600,000 men and women are released from jail each year. Connecting the formerly incarcerated with employment is critical, as it provides a secure income, stability, and a connection with other members of society.
Successfully reintegrating these individuals brings many advantages.

The following guide outlines different incentives and opportunities for employers to engage second chance hires.

1. Recoup wages through tax credits.
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment.

Employer Guide to the Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment.

What are the parameters?
The WOTC may be claimed by any employer that hires eligible “ex-felons” within a year of being convicted of a felony or being released from prison from the felony.
In general, the WOTC is equal to 40% of up to $6,000 of wages paid to or incurred on behalf of, an individual who:
  • is in their first year of employment;
  • is certified as being a member of a targeted group;
  • performs at least 400 hours of services for that employer; and
  • begins work on or before December 31, 2025.

The maximum tax credit is generally $2,400. A 25% rate applies to wages for individuals who perform fewer than 400 but at least 120 hours of service for the employer. An employer cannot claim the WOTC for employees who are rehired. In general, taxable employers may carry the current year’s unused WOTC back one year and then forward 20 years.

How do I claim this credit?
The WOTC is a general business credit. The credit is limited to the amount of the business income tax liability or Social Security tax owed.

1. On or before the day that an offer of employment is made, the employer and the job applicant must complete Form 8850 (Pre-Screening Notice and Certification Request for the Work Opportunity Credit).

Note: The employer has 28 calendar days from the new employee’s start date to submit Form 8850 to the designated local agency located in the state in which the business is located (where the employee works). Additional forms may be required by the Department of Labor to obtain certification.

2. After receiving a certification from the designated local agency that the employee is a member of one of the 10 targeted groups, taxable employers file Form 5884 (Work Opportunity Credit) to claim the WOTC.

A taxable business may apply the credit against its business income tax liability, and the normal carry-back and carry-forward rules apply. See the instructions for Form 3800 for more information.
For qualified tax-exempt organizations, the credit is limited to the amount of employer Social Security tax owed on wages paid to all employees for the period the credit is claimed.

2. Take advantage of bonding opportunities.
The U.S. Department of Labor established the Federal Bonding Program (FBP) to provide fidelity bonds for “at-risk,” hard-to-place job seekers. The bonds protect employers against employee fraud or dishonesty in the first six months of employment at no cost to the job applicant or the employer.

Employer Guide to the Federal Bonding Program
 The U.S. Department of Labor established the Federal Bonding Program (FBP) to provide fidelity bonds for “at-risk,” hard-to-place job seekers. The bonds protect employers against employee fraud or dishonesty in the first six months of employment at no cost to the job applicant or the employer.

The FBP primarily targets justice-involved individuals—people who have been previously incarcerated and are returning to the community—and other job seekers who have faced difficulties in finding employment.

What are the parameters?
Bonds can be applied to any job with any employer, in any state, at no cost or risk to the employer, and covers any employee dishonesty committed on or away from the workplace. Full-time, part-time, and temporary employees receiving paid wages (with federal taxes automatically deducted from pay) can be bonded.

Coverage begins once an applicant receives a job offer and supports employees who have federal taxes automatically deducted from their pay. The bond will be sent to the employer within 10 business days. The amount of fidelity bond coverage for an employee’s first six months of employment to protect employers against employee theft, forgery, larceny, and embezzlement is $5,000 to $25,000.
Bonds can also be purchased to cover already employed workers who need bonding to prevent being laid off or to secure a transfer or promotion to a different job with a current employer.

How do I access the bonds?
To access a bond, contact your State Bonding Coordinator by:

You must provide:
  • A valid and secure job offer
  • Company information
  • Employee’s full legal name


3. Partner with organizations participating in grant programs.
The Growth Opportunities grant program provides opportunities for paid work experiences, occupational education, and training in in-demand industries, leadership development, and post-work experience placement for justice-involved youth and young adults.

Employer Guide to the Growth Opportunities Grant Program
This program introduces and prepares justice-involved youth and young adults for work through placement into paid work experiences, starting them on a path to more equitable career opportunities. In addition to paid work experiences, the program includes occupational education and training in in-demand industries, leadership development, mentorship, and post-work experience placement into unsubsidized employment and/or education.

These grants focus on youth and young adults most impacted by community violence to advance equity, particularly in areas of concentrated crime and poverty, as well as communities that have recently experienced significant unrest.

The goals of the grants are to:
  • help youth and young adults to increase their conflict resolution skills and develop strategies to prevent and avoid violence;
  • introduce and prepare youth for the world of work;
  • help youth identify career interests, attain relevant skills and gain work experience;
  • and provide income to youth to start them on the path of earning living wages and obtaining high-quality jobs and careers.

Estimated Total Program Funding: $85,000,000
Grant Ceiling: $4,000,000
Grant Floor: $0

Direct applicants may apply for up to $2,000,000 in funding, and intermediary applicants may apply for up to $4,000,000.

Applications must be submitted electronically no later than October 5, 2022, at 11:59 PM Eastern Time.
What is the employer's role?
Grants will be awarded to eligible governmental organizations that can serve as the lead applicant for a group of service providers and have overall fiscal and administrative responsibility of a resultant grant.

Applicants must identify and provide a written commitment from “mandatory partners,” including employer(s) and describe the specifics of each partnership. For each partner, applicants must have a Memorandum of Understanding (MOU) or Letter of Commitment (LOC) signed by the authorizing agent of the partner organization.

Employer partners are defined as organizations or businesses (public, private, or nonprofit) that commit to serve as work experience sites.

What are the parameters?
  • Applicants must explain how they will identify and engage employers, and work with those employers to develop high-quality paid work experiences for all eligible participants. This must include a plan detailing how the applicant will provide adequate support and resources to and help employer partners to identify opportunities to transition eligible participants into full-time paid employment.
  • Applicants must describe how the skills learned and credentials earned through the employer program match the requirements of the occupation and prepare youth to enter unsubsidized employment.
  • Participants must be paid the applicable minimum wage for the jurisdiction of the work experience site. Employer partners are encouraged to contribute to these costs.
  • When compensating youth with wages or stipends for work experiences, employers must adhere to Internal Revenue Service (IRS) guidelines. A Youth Employment Compliance Assistance Toolkit is available here: https://www.dol.gov/agencies/whd/compliance-assistance/toolkits/youth-employment

Full parameters of the grant program can be found in the Notice of Funds document here: U.S. Department of Labor Employment and Training Administration – Growth Opportunities Funding Opportunities

Business Resiliency Rountable
THURSDAY, JULY 14, 2022
11:00 AM to 1:00 PM



How the Pandemic Has Changed Customer Loyalty
Changing consumer trends have put customer loyalty up for grabs.
Here are some ways your business can respond.
In many communities, the pandemic sparked a groundswell of support for small businesses. Now that the pandemic seems to be subsiding, however, it’s time to take stock.

There are many customer shopping trends that have changed for good. Curbside pickup, e-commerce, and digital customer experiences are here to stay. It’s unlikely, however, that customer loyalty for small businesses can stay at the high level it reached during the pandemic. That leaves the question: How has customer loyalty changed?

Customer loyalty is “up for grabs”
When the pandemic upended daily life, it also created an environment for consumers to try new shopping behaviors. A McKinsey report found that 75% of consumers tried a new shopping behavior, from e-commerce to curbside pickup to shopping local. Customers were seeking convenience, value, and—especially in the case of Gen Z and millennial shoppers—brands that reflected their values.

This presents an opportunity for business owners seeking to capitalize on customer loyalty. As consumers begin to leave trusted brands for new ones, your business can capture higher market share by responding to these trends.

Go for the emotional connection
Covid fatigue is affecting virtually everyone. Consumers are tired—emotionally, psychologically, and physically—from the toll the pandemic has taken on daily life. As a result, many customers simply want their shopping experience to be convenient, simple, and satisfying.

Rather than rewarding customers for frequent purchases, focus on building a deeper, more emotional connection. This means setting up incentives to retain customers, rather than motivate purchase frequency. “Rewards that make buying things easier—free shipping, same-day delivery, order waiting, volume discounts—will be well-appreciated,” wrote Mastercard. Inevitably, these types of incentives will keep a customer from switching to another brand.

Understand customer’s channel preferences
Online shopping surged during the pandemic, with a nearly 20% increase in online spending since January 2020. E-commerce was the preferred way to maintain social distancing and became the enduring choice for many customers. More than 90% of consumers who tried online shopping became converts, according to McKinsey.

For brands to build and maintain customer loyalty, the digital experience is now of paramount importance. Small businesses must have an easy, intuitive online store. If you’ve already nailed e-commerce, consider expanding into social commerce, which is selling on social media platforms. Mastercard estimated that sales driven by interactions on social media were expected to reach $36 billion in 2021, a 35% increase from 2020.

Personalize the customer experience
Customers expect to be treated with personalized service when they remain loyal to a brand. Personalized messaging is the tip of the iceberg when it comes to driving customer loyalty. Data from your loyalty program, marketing, and customer database can help you craft targeted and relevant rewards, offers, and communications that reinforce loyalty and build trust.

Advanced analytics can help extract data from your customer database and create what are known as “micro-segments,” or smaller target customer groups based on unique traits such as financial status, family relationship, or personality type. When combined with zero-party data, which customers contribute voluntarily in response to surveys, marketers can create hyper-targeted marketing campaigns that make customers feel truly valued.

Be transparent
Finally, customers understand that business owners are facing many challenges, even as the pandemic subsides. Supply chain issues and an unpredictable economy will continue to make it difficult to get “back to normal,” whatever that should look like moving forward. The more transparent you can be with your customers, the more likely it is that they will stick with you.

“Own up to marketing errors, product faults, and corporate missteps. Be up-front about out-of-stock items or extended delivery times and delayed shipments,” wrote MarketSource. “Assure your store policies are well-publicized and understood. Be forthcoming when it comes to your stance on social issues.”

Be transparent with your employees, too. They represent your brand each and every day. When your team members feel loyal to your business, they can pass that feeling on to your customers.

Article provided by the U.S. Chamber of Commerce
LEARNING OPPORTUNITIES THIS MONTH

Government Contracting: Capability Statements

Tuesday, July 5, 2022
10:00 AM

Capability Statements are a critical tool for competing in and remaining successful at the very competitive government contracting marketplace.  

Join Lisa Wood, Director of the Virginia Procurement Technical Assistance Center (PTAC), for this informative presentation – a “must” for those who are considering the Federal Government contracting market.  

HYBRID event: offered in person at 300 Preston Ave, second floor training room (free parking on-site) or online via Zoom
BUSINESS PLAN 101

Wednesday, July 6, 2022
9:00 AM EST

Does your business plan need work?

Do you not have a business plan yet?

Join us to learn the ins and outs of writing a business plan.

CV SBDC director, Rebecca Haydock, will talk about the tips and tools that successful entrepreneurs have in common and how to fit those into a fulfilling personal and business life.

Participants will receive a business model canvas, business plan template, and other useful handouts.

HYBRID event: offered in person at Orange County Economic Development office (109 W Main St, Orange) or online via zoom.
EPREPARING YOUR PITCH:
Best Practices in Developing Your Business Briefing 

Wednesday, July 6, 2022
10:00 AM EST

Please join Senior Business Counselor, and Adjunct GMU Professor George Siragusa, as he guides you through a step-by-step process of building a business briefing that is invaluable to startups, early stage companies, growth, or even mature businesses! 

During this NO-COST webinar you will: 
  • become aware of at least 5 scenarios in the life of a business when your business briefing may be needed and how they may be used in each case
  • obtain a checklist containing 5 distinct "filters" or tests, ensuring you have taken the necessary and critical Lean Foundational Steps prior to starting the development of your business briefing
  • see how an actionable framework, containing 5 basic "themes", is used to test the critical business hypothesis in the marketplace needed during the "Lean Discovery Phase" of your journey, giving you deep insights and answers which will improve the effectiveness of your business briefing
  • obtain an actionable, easy to use, step-by-step outline that forms the basis of a "StoryBoard", the precursor to the full briefing, and the step that "jumpstarts" the process
  • receive a file with an actual local business briefing used in an attempt to raise capital, complete with speaker notes and explained section by section along with perspectives, "do's and don'ts", all intended to guide your business briefing development
  • AND... hear answers to many of your business briefing questions in real time!
MANAGING YOUR WORDPRESS WEBSITE

Monday, July 11, 2022
12:00 PM EST

Are you looking for a simple, yet effective website to use for your business? WordPress might be a good option! In this workshop, CV SBDC and VA SBDC Chief Digital Advisor, Cameron Nelson, will cover "the basics" on creating and updating a WordPress site.

Topics covered include:
  • User management
  • Page creation and editing
  • Image and video uploads
  • Plugin management
  • Linking to social media
CROWDFUNDING FOR SMALL BUSINESSES

Thursday, July 14, 2022
10:00 AM EST

What works, what doesn't work, and how to best set yourself up for success.

Learn about the mechanics and strategy for success as well as hearing from a founder who is currently engaged in an equity crowdfunding campaign.

Presented by Justin Ritter and Brian Viele

HYBRID event: offered in person at 300 Preston Ave, second floor training room (free parking on-site) or online via Zoom 



GOVERNMENT CONTRACTING 101

Wednesday, July 13, 2022
10:00 AM EST

During this webinar you will learn about:
  • The government customer
  • Readiness to be a government contractor
  • Marketing to the customer
  • Government jargon
  • Steps to get started
  • Small business set-asides
  • Targeting the government customer - what the buyer wants to know
  • What should go into a capability statement
SETTING UP YOUR ACCOUNTING SYSTEM

Tuesday, July 19, 2022
6:30 PM EST

“Running your own business often means being your own marketing department, legal department, AND financial department.

Our friends at The Jackson Ward Collective and Nadia Anderson put together this FREE workshop to be sure you're CONFIDENT while you're digging into those financials.

You got this! And we got your back!
BUILDING YOUR VALUE
PROPOSITION DESIGN

Wednesday, July 27, 2022
10:00 AM EST
Please join Senior Business Counselor, and Adjunct GMU Professor George Siragusa, as he guides you through a step-by-step process of building your Value Proposition Design which is invaluable to startups, early stage companies, growth, or even mature businesses! 
The Value Proposition Design (VPD) is a framework that enables businesses to develop and solidify their foundational ideas for how they will:
  • create,
  • communicate,
  • deliver and then
  • extract marketplace value for a differentiated product or service intended to solve a specific problem
  • aligned with a specific customer need while 
  • delivering tangible benefits,
  • for an intended potential customer segment in a domain space or industry sector.

It lives inside something called the Business Model Canvas, another important foundational business framework.
The Virginia SBDC Network is funded in part through a cooperative agreement with the U.S. Small Business Administration, George Mason University‐Mason Enterprise, local host institutions and GO VIRGINIA, a state‐ funded initiative administered by the Virginia Department of Housing and Community Development (DHCD). The Virginia SBDC is nationally accredited by America’s SBDC.