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Minnesota Technology Magazine - October 2007

MTI News

Bridging the Gap

A new MTI grant program offers targeted assistance for growth minded manufacturing firms around the state.

Small manufacturers with an eye to grownowhave affordable access to the kind of support that has traditionally been available only to larger (and wealthier) businesses. Under the Growth Acceleration Program (GAP), a new MTI grant program,manufacturers with fewer than 100 employees can receive up to $25,000 per year toward projects intended to help the company grow. The business must match any GAP money awarded. That means a maximum of $50,000 per company, per year, including a 50 percentmatch.

How to Apply

Firms interested in GAP must fill out and submit to MTI a complete application that includes documentation of the company's overall plan for technology and business improvement, a prioritized list of the company's improvement needs, and the anticipated economic benefits. The application must also document the company's financial need for GAP funding in order to carry out the highest-priority components of the plan.Upon receipt of the application and verification of eligibility, MTI will determine funding priority. Funding approval will be con- firmed by e-mail and followed by a service agreement that articulates the scope of work, economic benefits, deliverables, schedule, investment, and reporting requirements

Completed applications must be sent to:

GAP at MinnesotaTechnology, Inc. 310 Fourth Ave.S., Suite 7050 Minneapolis, MN 55415

To learn more about GAP or to see if you qualify:

Contact Glenn Pence, 320-492-7996, 800-325-3073, gap@mntech.org.

GAP funds can be used for virtually any project short of capital investments, as long as they enhance the operation of a small manufacturing, manufacturing-related, or service company, according to Lynn Shelton, MTI's director of marketing and communications. "It's about having a really solid business plan and the components of that plan that can help a business grow," she notes. "It's about helping companies with technology improvements, helping them with the business side of improving job creation, and the job growth potential of their companies."

Marketing and product development are possible areas for project funding as well, according to John Connelly, MTI's director of product development. GAP began in July, the result of legislation by a bipartisan group of legislators. Minnesota State Senator David Tomassoni of Chisholm was one of the bill's authors.

"The idea behind the Growth Acceleration Program is to aid small businesseswith their technological needs," he says. "Often times, they either don't have the resources, knowledge, or time - or the combination of all three - to get up to speed on the latest technology thatmight help their business growand prosper and maybe even create newjobs." The $750,000 approved for GAP as one-timemonies over a two-year period will be funded through the Minnesota Department of Employment and Economic Development and administered by MTI.

Connelly notes that applications will be evaluated on three main criteria. The first and foremost qualifier will be "projects whose economic benefits are clear and substantial," he says. In other words, those that would help the business increase its sales, reduce costs, make investments, and possibly lead to adding jobs or paying higher wages. Second, MTI will look at the project to determine if the initiative or service is one that the organization can help with. And the final evaluation piece will be: Is this a company not typically able to use outside resources?

Last year an independent survey funded by the federal government concluded that for every $10,000 invested in a company,MTI helped that company realize a $120,000 return. "We do believe the GAP monies will prove equally as valuable," says Shelton.