BB&T Bank of Kinston continues to make an impact in the community as it recently joined the Initiative Capital to make a new house, a home for a Princeville, North Carolina family. BB&T donated kitchen and household appliances to the family that became the proud new owners of the Initiative sponsored home in the Southern Terrance Subdivision in Princeville. Assisted by the Town of Princeville, Jennifer Burton and her family became the proud owners of the three-bedroom, two bathroom frame house. When BB&T management heard of the family' need, they donated the appliances.

For many CDCs, the role they can play in assisting in the recruitment and placement of a franchise in the neighborhoods they serve may vary. One area where CDCs can be especially useful partners in the accessing capital for franchise developments in their communities. Depending on the types of activities the CDC engages in their service area, they can provide support in a number of different areas.

The CDC can be very instrumental in land assembly and site preparation. The CDC may work with its local unit of government to identify, purchase and improve a specific site that would be extremely beneficial to a given franchiser or to a prospective franchisee. In some instances this process may result in the land being offered to the CDC for as little as $1.00. The CDC can, in turn, convey the property to the franchiser or franchisee to ensure that the business provides employment opportunities for residents of the neighborhood.This is that double bottom line referenced earlier.

Another way in which CDCs can play a role is as the developer of the property that will house the franchise business. In this instance, the CDC will serve as the landlord to the business and will receive ongoing payments in the form of rent.

The CDC could also provide training and or employees for the business and could perform this service as a fee generating arrangement with the franchiser or franchisee. In some cases, the CDC may be receiving funds from a federal, state, or local program designed to provide employment for the hard to employ or other community residents who are in need of employment assistance. In many communities, the government agencies will contract with the CDC to provide training or will provide funds directly to the business for providing training and employment for there individuals.

Many CDCs can also provide access to below-market debt financing or subordinated debt from various governmental programs, foundations or private sector financial institutions. These are usually dollars that are only available to non-profit entities such as CDCs that are engaged in community economic development projects. Often these funds are restricted to certain designated communities and require a certain number of jobs to be created in proportion to the number of dollars that are being used to assist the project. These funds can often turn a marginal project in an untested area into a strong candidate for the franchise. The dollars are usually made available to the CDCs in the form of grants and loans, but not all CDCs are eligible for these funds. While many grant programs provide direct assistance from federal agencies, several provide funding from state and local governments and they, in turn, will create programs that will re-grant these funds to the CDCs. On the other hand, there are loans, subordinated debt and equity programs available to CDCs. Some of the loan programs are made available through entitlement programs such as block grants. For a full listing of grant and loan sources, visit www.ncinitiative.org.

Wallace Featured in National Entrepreneur Publication

If you happen to read "Entrepreneur" Magazine, you may have recently spotted a familiar face on page 122 of the publication's winter issue. There you find Initiative Capital, Inc. president C. Everett Wallace featured in the publication's "Be your own Boss" section. In the article written by Sara Wilson, Wallace speaks candidly on the subject of diversity in the franchising industry. As co-founder of the National Minority Franchising Initiative, Wallace helped establish the Diversity Institute of the International Franchise Association's Education Foundation. In the article Wallace notes that minorities own less than 10 percent of the nation's franchise businesses. In his roles with the Minority Franchising Initiative and the Diversity Institute, he works to connect minorities with the information and resources that can help them become franchisees. He says a lack of information about franchising opportunities in one of the main obstacles that keeps minorities out of the franchise industry. Entrepreneur Magazine is available at newsstands. The issue also features the 2006 Hot List of Best businesses, markets, trends, and ideas.