Business Incentive Program

Policy and Procedures

The Retail and Service Business Committee (hereinafter “Committee”) of the Montevideo Area Chamber of Commerce (hereinafter “Chamber”) has partnered with local businesses to offer an incentive program to assist new retail and service businesses in Montevideo.  The purpose of the Business Incentive Program is to encourage the development of new businesses in vacant commercial locations or in newly constructed facilities.

1.         ELIGIBILITY

Eligible applicants may be start-ups in Montevideo, or relocations from another community.  Business acquisitions and major expansions may be eligible, and they will be considered on a case-by-case basis.

Eligible applicants may be either retail or service businesses.  Multiple sector businesses may be eligible if at least 50% of the actual or projected revenues are from retail or service components.

Home-based businesses may be eligible, and they will be considered on a case-by-case basis.

Normal maintenance projects/expenditures are not eligible for the determination of a major expansion.

2.         BUSINESS PLAN

A business plan must be submitted.  In lieu of a business plan, the applicant may complete a written essay (alternative to a formal business plan) covering the material included in Exhibit “A”.

If business plan assistance is desired, the Chamber Executive Director will assist you in seeking technical assistance through the Small Business Development Center and/or the Entrepreneur’s Assistance Network.

  Additional information and/or officer resumes may be requested to assist in the
  analysis of the application.

3.         PROCEDURE

Fully completed applications, with all required submittals and attachments, are to be submitted to the Chamber Executive Director.

  Applications and submittals/attachments will be reviewed for eligibility by the
  Committee. 

If a fully completed application (with all required submittals and attachments) is submitted within 14 days prior to a regularly scheduled meeting of the Committee, then the application will be reviewed at that meeting.  If there will be over 14 days between the submission of a fully completed application (with all required submittals and attachments) and the next regularly scheduled meeting of the Committee, then an application may be approved if three members of the Committee review the materials (in the interim) and vote to approve the application.

If an application is approved, the applicant will receive a letter of approval from the Chamber.  The Chamber will then mail notification to the businesses which the applicant selected on his/her application form.  THE FINAL DECISION TO GRANT AN INCENTIVE remains with the business who is requested to grant the incentive.  The Chamber and the Committee DO NOT guarantee that any of the requested incentives will be received by the applicant.

4.         OTHER

  The business is under no obligation to request or accept all of the specific
  incentives if certain ones are not desired or necessary.

Approval of the application must take place within 30 days of the commencement of the business operation.

The businesses providing the incentives are under no obligation to provide “credit” toward purchases or expenditures made prior to the receipt of a letter of approval.

  The Committee, by a majority vote of those present and voting at a regularly
  scheduled or special Committee meeting, may make exceptions to any of the
  provisions of this policy if special circumstances warrant.

Passed and adopted this 23rd day of March, 2005.

Exhibit A

Alternative to a Formal Business Plan

In lieu of a formal business plan, you may write an essay covering the items below.  Although there is no specific essay length required, your response should adequately and appropriately address these 7 items.

1)         Name and Address of Business

2)         Name(s), Address(es), and Phone Number(s) of each person(s) who own(s) 20% or more interest in the business

3)         Name, Address, and Phone Number of the person who is completing this essay

4)         What goods and/or services do you plan to sell?  What special customer services will you offer?  THIS IS VERY IMPORTANT.  Be specific.

5)         How many employees will you have?  Full or part time? 

6)         Describe your days and hours of operation.  Any seasonality?  Special appointments?

7)         Describe how you are qualified to own and operate this business.  Tell us about your relevant experience, professional training, technical advisors, etc.

In addition to the 7 items above which should be covered in your essay, a response to the items below may assist the Committee with the application review process.

A)         Industry Outlook.  What are the recent trends in your business?  What resources did
            you use to obtain industry information?

B)         Did you receive assistance from an accountant, loan officer, or small business counselor in the preparation of your financial projections?

C)         Have you determined that your location is zoned appropriately for your type of business?  Zoning information is available by contacting City Hall at 269-6575.

D)         If you plan to do any building renovations, have you contacted City Building Official Earl Knutson at 269-6575?

E)         Are you aware of the necessary local/state/federal licenses, permits, registrations, and/or identification numbers for your type of business?

F)         What is your target market?  Who will buy your goods and/or services?

G)         Describe your competition.  Any that apply to you - local, regional, national,
            worldwide, internet, etc.   How are they different from you?

H)         What is your marketing strategy?