Keweenaw Economic Development Alliance

The Keweenaw Economic Development Alliance (KEDA) takes a leadership role in Houghton, Keweenaw and Baraga Counties--helping to expand and diversify the area's economic base in order to create family sustaining employment and to increase the economic well-being of the Keweenaw Peninsula region.

KEDA designs and implements proactive, sustainable programs that are focused on retaining and expanding existing firms, starting up new businesses, attracting entrepreneurs and companies to the Keweenaw and initiating projects that create the conditions for future economic growth.

Event: September 14th KEDA Member Meeting - Meet some interesting High-Tech entrepreneurs

Tuesday, September 14th from 7:30 am to 8:30 am

The date for the September KEDA meeting has been changed to September 14th and will be held at the Finnish American Heritage Center in Hancock.  The program will feature introduction of new members, member announcements and a discussion with three high-tech entrepreneurs whose companies are in growth mode.  Ellen Campbell of Nitrate Elimination, Steve Hillstrom of Xeratec and Jim Northey of LaSalle Technology Group will discuss their companies, their products, their growth and the factors that have helped and that have been obstacles to their growth.

As always, a continental breakfast will be available, sponsored this meeting by the Michigan Tech Enterprise Corporation SmartZone.  Members are invited to bring a guest.  For more information, contact Phil Musser, KEDA Executive Director, at 906-482-6817 or pmusser@kedabiz.com.

Event: MIOSHA Fundamentals of Safety & Health Workshop

September 14, 15 and 16 from 9 a.m. to 4 p.m.

 This 3-day workshop is designed for businesses who want to learn more about compliance with Michigan Occupational Safety and Health Administration (MIOSHA) safety regulations, and for companies wanting to ensure their safety systems are up to date. 

This course offers the basics of creating a safety and health management system and provides an introduction to the MIOSHA Act and standards.  Specifically, topics include:

inspections and citations

elements of a comprehensive safety and health system

recordkeeping

accident investigations

written programs

introduction to industrial hygiene

respiratory protection

hearing conservation

bloodborne infectious disease

eye wash requirements

hazard recognition

machine guarding, and

ergonomics

Cost of the workshop to be held at the Lakeshore Center in Houghton is $210 per attendee which includes course materials, and lunch each day. This workshop is part of the MIOSHA Training Institute and leads to certification through Macomb Community College.  To register or for more information, contact Phil Musser at 906-482-6817 or pmusser@kedabiz.com.  The registration deadline is September 3, 2010.

Event: Selling to the State of Michigan: Elements of a Quality Proposal

Monday, October 18, 2010, 1-2 p.m.

This one-hour video conference will assist companies wanting to do business with the State of Michigan to submit quality proposals and the expectations of state bid proposals.  There is no charge to attend.  The conference will be held at the Advanced Technology Development Complex (ATDC) on the Michigan Tech campus next to the football field (corner of Sharon and Garnet streets).  Contact Trisha DeGrand at 906-789-0558, ext. 231 or tdegrand@jobforce.org to register.  This conference is co-sponsored by KEDA, PTAC, SBTDC, US. Small Business Administration.

Event: FastTrac NewVenture Workshop

Monday, July 12th from 10 a.m. to noon

FastTrac NewVenture training jump starts the business planning provess and provides entrepreneurs with the knowledge and tools they need to bring their business ideas to market.  This is a three-workshop series.  The FastTrac Orientation and Fundamentals of Starting a Business workshop is a 2-hour workshop on July 12th from 10 am to noon.  This is followed at later dates by two additional workshops:

Business Planning Topics includes such topics as analyzing and reaching markets, building a sales team, and monitoring cash flow.

Concept Analysis Topics include such topics as exploring entrepreneurship, identifying and meeting market needs and setting financial goals.

For more information and to register, contact Jon Leinonen at the SmartZone at 906-487-7004 or jleinonen@mtecsz.com.

Event: No KEDA Member meetings scheduled for July and August

KEDA does not hold member meetings during the summer months, however the KEDA office is open for business year-around.  Monthly meetings will resume on Wednesday, September 8th at 7:30 am.  Place and presenters to be announced.  KEDA needs meeting sponsors for the Fall meetings.  Please contact Phil at 482-6817 if your company or organization is interested in sponsoring an upcoming meeting.  Sponsorship is $350-$400 depending on the number of members attending that particular meeting.

News: The LaSalle Technology Group Receives Expansion Loan from Houghton County

The LaSalle Technology Group has just received a working capital loan from the Houghton County Revolving Loan Fund to allow the company to complete development of proprietary software products for the financial services industry.  LaSalle's clients include trading firms, banks, exchanges and clearinghouses, including some of the largest financial companies in the world.  LaSalle was founded in 2006 by James and Jacob Northey and is presently located in the SmartZone's Portage incubator.  The company has three employees, and will be adding 3 additional employees as a result of the expansion.  KEDA and the SmartZone are assisting the company to develop its expansion plans.

News: Keweenaw Automation Inc. Receives Start-up Loan from KEDA

Jeff Erickson and Sam Newman had been working for Wisconsin and Minnesota companies such as Environmental Systems Inc., Honeywell and Johnson Controls designing HVAC systems for institutions and businesses in the Upper Peninsula and elsewhere.  In fact, Jeff and Sam designed some of the HVAC systems for Michigan Tech's Lakeshore Center building where KEDA offices are located.  Wanting to be self-employed, they decided to spin off a new business that would contract with their former employers, while also saving their clients money and creating a local business that will bring new dollars into the Keweenaw community.  Keweenaw Automation Inc. (KAI) offers programming, project management and sales support in building automation for the Western UP.  By offering their services to out-of-area HVAC system providers, KAI cuts their clients'overhead and maintains relationships without incurring travel expenses as in the past.  KAI will also design and sell smaller projects that the bigger companies don't have an interest in bidding.

As a new business and not yet bankable, KAI needed working capital to sustain them until the business could generate adequate cash flow, and KEDA quickly stepped up with a working capital loan from its revolving loan fund.  We congratulate Jeff and Sam on their entrepreneurial spirit and on starting a new job-creating business in the Keweenaw community.  For more information on loans from KEDA and other financing sources, contact Phil Musser, KEDA Executive Director, at 906-482-6817 or at pmusser@kedabiz.com.

News: Baraga & Houghton Companies form Superior Suppliers Network

Ten local metal fabrication, machining, painting and engineering companies are coming together to jointly market their production and design capabilities to customers throughout the U.S. and Canada.  The companies expect to form a limited liability company and hire a business development manager to identify potential customers and go after contracts using a competitive bidding process among the members.  Individually, the companies would have a difficult time marketing their limited production capability to customers but, together, they include 250,000 sq. ft. of production space and over 200 fabricators, machinests and engineers.  In additin to designing and building new equipment and components, the Network will also do repair and rebuild work.  The Network will soon be recruiting the business development manager.  The position has been listed on www.keweenawprofessionaljobs.com, KEDA's professional job listing site. 

The Village of Baraga has provided the initial start-up funds; WUPPDR, the SmartZone and KEDA are providing start-up assistance; Matt Monte of Monte Consulting has created the website, www.superiorsuppliers.net; and Roger Woods of Homer Productivity has crafted an organizational plan. 

News: Sawmill Starts Up in Kenton with Help from Houghton County & KEDA

Garritt Willey had sawmill management experience, most of the necessary equipment, committed customers, his eye on a former sawmill site in southern Houghton County and a strong entrepreneurial spirit.  But he lacked the capital to start up a new sawmill.  KEDA arranged for Houghton County to provide the working capital and another local lender provided a loan to purchase the facility.  KEDA also assisted Garritt to hook up with local suppliers, with employee recruitment, with contractors and with legal advice in order to start up the business.  With the funds in hand and the other assistance, Garritt has now renovated the building, installed equipment and hired workers.  The sawmill has been up and running since early January.  The project will create 3-5 jobs in the first year.

Federal Procurement Represents a Huge Potential Market for Local Companies

Federal procurement represents a huge potential market for local company products.  Some Keweenaw companies have had success in selling their goods and services to federal agencies, including the U.S. military, but many local companies have not yet entered this market due to the difficulty and complexity of the process and to the lack of personnel to devote to procurement.  There is now help!  KEDA is providing Elizabeth Tolsdorf, who has expertise in federal procurement, with the resources to start up a consulting business, Superior Research Services, that can work with your business to:

• Determine if state or federal government are buying your products and services
• Register with those state and federal agencies procuring your goods and services
• Monitor daily solicitations and notifying you of possible bids
• Interpret solicitation documents
• Help to submit bids, quotes and proposals
• Set up payment procedures, and
• Conduct market research to identify non-government markets, potential customers and competitors

Elizabeth can work with your business on an hourly, per job or retainer basis.  To explore the possibility of getting into government procurement, contact her at etolsdorf@charter.net or 906-337-0365.  SRS is a KEDA-affiliated company; KEDA members receive a discount.

You are also encouraged to attend government procurement workshops sponsored by the Procurement and Technical Assistance Center (PTAC) serving the Upper Peninsula, and to arrnange a visit by the UP PTAC representative, Don Makowski.  Contact Don at 906-789-0558 x 244 or via e-mail at dmakowski@jobforce.org.  The next procurement workshop is:

 Federal government Contracting 101, Thursday, January 14th, Video Conference at the Lakeshore Center conference room, 600 E. Lakeshore Drive, Houghton, 9 am - noon.  This seminar will teach you how to classify your product, getting registered, small business programs, how to find procurement opportunities and information on PTAC services.  The seminar is free and is also being held in Escanaba at the Michigan Works Job Force Board at 2950 College Avenue. To register, contact Trisha DeGrand at 906.789.0558  x231 or tdegrand@jobforce.org.

For a complete listing of PTAC seminars, go to www.nwm.org/ptac.asp.  For more information on federal contracting, contact Don Makowski at 906-789-0558 or at dmakowski@jobforce.org. 

News: Xeratec Receives Business Expansion Loan from KEDA

KEDA issued a press release on July 17th announcing a $35,000 business expansion loan to Xeratec Corporation, one of the region's fast growing technology companies.  Xeratec is a custom software development company providing database applications, virtualization technology, software system conversions and multi-system integration for corporate and military clients across the U.S.  Xeratec's clients include BHP Billiton, R.W. Baird Investment Corporation, GE Medical, Baxter/Cardinal Healthcare, the U.S. Department of Defense and others. 

The loan will allow Xeratec to take on more clients and to hire seven additional software engineeris over the next two years, almost doubling its staff from it's current 8 employees.  Annual payroll is expected to more than triple to almost $1 million within two years. The company is located in the SmartZone's Portage building business incubator in Hancock.

For information on small business financing, contact Phil Musser, KEDA Executive Director, at 906-482-6817.

News: Federal Recovery Act Assistance for Small Businesses

The Michigan Economic Development Corporation (MEDC) has created a new web site to provide information on the Federal Recovery Act.  to find the provisions that apply to small businesses, go to www.MichiganAdvantage.org/Recovery and click on "ARRA Program Information And Updates," then click on ""ARRA Information for Businesses."  You will find information on:

• 5-Year carryback provision to increase tax refunds for small businesses
• Write off up to $250,000 of investment
• Reduced Estimated tax payments
• Extension of bonus depreciation deductions
• Incentives for investors to put money in small businesses

For more information, call the MEDC Assistance Center at 517-373-9808.

News: KEDA approves equipment loan to ThermoAnalytics, Inc.

The KEDA Board has approved a $44,000 loan to ThermoAnalytics which, together with $10,800 of equity, will be used to purchase a key piece of equipment that will allow the company to keep work in-house rather than contracting it out, increase revenues and hire additional staff.  A portion of KEDA loan funds will be the recently approved USDA grant discussed below.  ThermoAnalytics, Inc. is a global leader in heat transfer physics, thermal management, infrared signature modeling and computational methods, and is one of the largest technology companies in the Keweenaw.

KEDA owns and operates the Keweenaw Revolving Loan Fund which provides loans to local manufacturing, technology and service companies that can be used for machinery and equipment purchases, building construction and renovation, and working capital.  KEDA can also provide access to other revolving loan funds and to state and Federal financing programs.  Contact Phil Musser at 906-482-6817 or pmusser@kedabiz.com for more information.

News: KEDA Welcomes New 2010 KEDA members

Advenovation Inc.                         Mine Shaft & RockHouse Grill                     EdVantage

Pavia-Marting & Co.                     Copper Ridge Bakery & Breads                  Mayflower Consulting                                     

Peterson's Fish Market                 Kathy's Originals & Alterations                    Synsor Energy

Gateway Auto Sales & Service      Priceless Rent-A-Car                                 The Java Shop

Lawrence Company                     Keweenaw Consignment                             Ramada Inn

Distant Drum                               Young Manufacturing/Central Vac               Halonen Landscaping

Wakeham Equipment                   Canteen Bar & Grill                                    Keweenaw Natural Wellness

Thimbleberry Press                      Lawrence Chopp, Sales Consultant             Phimation

Gitzen Company                          Abe Supply                                               Julien Properties LLC

Mayflower Consulting LLC            Gitzen Company                                        Crampton Surveying

Cook Sign Service                       Cabin au bord du lac                                 Northwestern Mutual Financial Network

Great Lakes Accounting               Perkins Restaurant                                     All Seasons Recreation

Travelodge of Houghton               The Waterfront Restaurant                          North Wind Real Estate

Cedar Ridge Rustic Furniture       Johnson Glass Cleaning                             Superior Tool & Fabricating, LLC

Precision Automotive                   Koski Signs                                               Monticello's Grocery

Loads of Fun Laundry                 Bookworm                                                 MTU Auxiliary Services

The Lunch Bag                           Massie Automotive                                     Blue Terra Energy, LLC

Keweenaw Automation Inc.

News: New Website Lists Professional Jobs Available in the Keweenaw

KEDA and local businesses have partnered to create a new website, the Keweenaw Professional Job Board, that lists professional jobs available in Houghton, Keweenaw, Baraga and Ontonagon counties.  Professional jobs are defined as those requiring at least a bachelor's degree or equivalent experience.  The web site address is www.KeweenawProfessionalJobs.com. 

Glen Simula, President of GS Engineering and President of KEDA, stated the idea for the web site came from discussions among Chief Executive Officers of local companies who have been experiencing difficulty in recruiting professional level employees both locally and from outside the Keweenaw.  According to Simula, "The number of Keweenaw companies needing to recruit professional talent has increased dramatically during the past few years because of the growth of manufacturing, technology and service companies."

"Many local people, including Michigan Tech and Finlandia University students, who have left the area to find employment, would return if they could find a professional level job in the Keweenaw," stated Simula.  "Other professionals who may not be familiar with the Keweenaw but who are searching for a great job in a place offering exceptional outdoor recreation will find this web site of interest.  The Keweenaw Professional Job Board will be a one-stop web site for local employers to list professional jobs and for professional level employees to find them." added Simula.

The Keweenaw Professional Job Board web site will allow employers in the 4-county area to list professional jobs, accept resumes and manage the employee recruitment process.  Professionals seeking jobs can easily search available jobs, view recently filled positions and register to automatically receive job listing updates. The Keweenaw Professional Job Board is sponsored by GS Engineering, Monte Consulting, Peninsula Copper Industries, pettibone/Traverse Lift, Somero Enterprises, Terex Handlers, ThermoAnalytics, Up and Running and KEDA.  For more information, contact Phil Musser, KEDA Executive Director, at 482-6817.

News: USDA Announces Renewable Energy Grants and Loans for Small Rural Businesses

The U.S. Department of Agriculture has recently announced the availability of Renewable Energy and Energy Efficiency grants and guaranteed loans for small business in rural areas.  The grants and loans can be used to conduct energy audits, feasibility studies and to purchase energy efficient equipment or construct energy efficient facilities.  For more information, go to www.rurdev.usda.gov/rbs and click on Farm Bill 9006 resources.  Or, contact KEDA for a summary sheet describing eligibility and types of projects.

News: KEDA Creates Micro Loan Fund to Finance Business Start-ups

Entrepreneurship has always been strong in the Keweenaw, and small businesses started by local entrepreneurs have created the majority of new jobs in the region.  While KEDA's regular Revolving Loan Fund  provides loans of $15,000 - $80,000 to more established businesses to allow them to expand, beginning entrepreneurs and single-person businesses often have difficulty accessing smaller loans through lending instututions or traditional revolving loan funds due to the cost and effort of providing smaller loans.   

To meet this need, KEDA has created a Micro Loan fund to provide loans of $1,000 to $15,000 to beginning entrepreneurs and small companies that have the potential to provide living wages to the owners and that may also have the potential to create new jobs for Keweenaw residents.  Virtually any type of business is eligible to apply for the loans, and applicants will be provided business counseling as necessary to ensure the business idea is financially feasible and that the entrepreneur has the skills and support system to be successful.  Loans can be used for purchasing equipment or inventory, and for working capital and other needs. Contact Phil Musser, KEDA Executive Director, at 906-482-6817 or at pmusser@kedabiz.com for more information or to apply.

News: Great Lakes Angels Offers Online Capital Application

Great Lakes Angels (GLA), a consortium of private, high wealth investors (known as angels) who help fund early stage companies, has announced an online system to encourage private investments into start-up companies, including companies in the Keweenaw.  The group's new Angelsoft platform makes it easy for entrepreneurs to apply for funding, and gives accredited investors a comprehensive set of tools for analyzing new opportunities.  Angelsoft offers enterpreneurs the tools to develop streamlined, one-page descriptions of their businesses for submission to GLA investors, and then delivers that information plus an Executive Summary and Business Plan over the internet directly into the group's deal management system.  Every angel member of GLA has a special computer program that is automatically updated as business plans arrive, making every plan visible to every investor for 90 days.  The system is already in use by more than 60 other angel groups around the country.  GLA is a non-profit organization that fosters private, early stage investment int he states of Michigan, Ohio and Indiana, as well as the Canadian province of Ontario. The GLA Director, David Weaver, is a member of the SmartZone Board of Directors, and periodically offers workshops on angel investing to both entrepreneurs and investors.  More information is available at www.glangels.org or www.angelsoft.net.

News: Doing Business With Michigan

In order to do business with the State of Michigan, visit the state's procurement website: www.michigan.gov/doingbusiness.  It takes about 10 minutes to register and you will need your tax ID number and contact information.  Your company can find an opportunity either through Acquisition Services (contracts valued at $25,000 or more) or through Agency Buyers (contracts valued at less than $25,000). For more information, call the Michigan Department of Management and Budget, Acquisition Services, at 517-335-0230, or the Procurement Technical Assistance Center of Michigan (PTAC), a non-profit organization whose mission is to assist Michigan businesses to obtain and perform on federal, state and local government contracts. Contact PTAX by calling 1-800-692-7774.

News: Long-Term, Fixed Asset Financing Available Through SBA 504 Program

The U.S. Small Business Administration offers up to 40% of project costs at below market rates for fixed assets (real estate, buildings, equipment).  Total project costs must be at least $200,000 up to $10 million, and the borrower must be a small business with a net worth less than $7.5 million and average net profit less than$2.5 million for the past two years.  The Michigan Certified Development Corporation packages these funds in the form of debentures that are sold in the market place.  A bank loans 50% of project costs and the borrower provides 10% equity which does not necessarily need be cash.  The 504 funds are provided at a fixed rate for 20 years for real estate and 10 years for equipment.  Read a longer description of this financing program by clicking on "finmechs" in the pull down menu in the upper left corner of this page, then scroll down to "Federal Financial Assistance."  Contact Phil Musser for more information.