TNTRADE Market Access Program: 

Incentives to help TN businesses grow their exports

The Tennessee Department of Economic & Community Development is excited to be able to offer a new program to Tennessee's small and mid-sized businesses that are seeking to go into new foreign markets with their products and services. 

WHAT IS IT?   

The TNTRADE Market Access Program (MAP) is a reimbursement program designed to enhance export readiness, promotion and sales activities in foreign markets for Tennessee's small to mid-sized businesses.  MAP provides a 50 percent reimbursement for up to $5,000 per year for qualified and approved export activities.  This program is funded through a grant from the U.S. Small Business Administration (SBA) and is managed through the Tennessee Department of Economic & Community Development (ECD).

HOW CAN FUNDS BE USED?

The TNTRADE Market Access Program (MAP) is a very flexible program, and while a business must apply and be approved before they can expend funds used toward reimbursement, the options are broad.  The projects/activities that have surprised some are:

• Translate marketing materials and websites,
• Fund sales trips and trade missions,
• Fund training for export activities,
• Achieve required international trade certifications, and 
• many others.

Currently, the funds have to be deployed quickly - on or before September 30, 2012.

WHO DO I CONTACT TO APPLY?

Don't hesitate to contact anyone on the TNTRADE Team for assistance in your application.  

• Online Application: www.tn.gov/ecd/tntrade.MAP.html
• Main Phone: 615-532-1938
• Email: ecd.tntrade@tn.gov

Efficient Energy Is Cheap Energy

Unlike Thomas Edison, the name Samuel Insull may not immediately ring a bell. But, together these men made electricity available and affordable to the masses. They combined a new industry structure and an ingenious business model that enabled electricity and the economy to embark on an unbroken century of growth. The principals of Insull and Edison still apply today – creative thinking that optimizes equipment and systems plus the right capital can lead to tremendous growth opportunities.

In the late 1800s, electricity was only available to the wealthy that were willing to pay high dollar, flat usage fees. Although everyone knew the appeal of electricity, the economics of bringing it to market were difficult. Thomas Edison had the vision to change this, saying “We will make electric light so cheap that only the rich will burn candles.” Yet, it was truly his former colleague, Samuel Insull, who helped turn this vision into a reality.

While others in the industry forecasted profits based on the amount of electricity sold, Insull recognized demand was the true profit driver. Two key pieces of information drove the development of his unique business model: First, electricity had to be generated and used simultaneously. Second, turbines were not being used to capacity at off-peak times. This resulted in Insull developing a new demand-based billing system while expanding his client base to maximize the productivity of his equipment. He began to offer to wire houses at no cost. Electricity rates quickly declined with a diversity of customers using electricity at different times.

There are a few key lessons that we can learn from the story of Insull. The first is that efficiency, whether in electric use or systems operation, decreases operating costs and increases profits. Insull’s electric grid delivered cheap electricity to businesses by maximizing his output. Prior to that, electricity was unnecessarily costly and, therefore did not achieve its true economic potential. The same can be said for any business model; even if energy is cheap, if you’re not operating efficiently in terms of equipment and systems your business is losing money.

When considering energy efficiency improvements we often think of equipment upgrades but neglect process modifications and control systems that can allow you use your current equipment at maximum capacity. For example, variable frequency drives are control devices that increase efficiency by adjusting a motor’s speed to match required output. Recent improvements in the technology of these VFDs allow them to be applied to an array of motor driven systems.

The second lesson is to never underestimate the value of smart capital, and those who can provide it. Samuel Insull was brought to the U.S. by Thomas Edison because of his business savvy and his ability to secure European financing for the world’s first central power station in New York after American investors declined the opportunity. This illustrates that the capital intensive nature of many energy projects have been a deterrent to progress since the industry began in the 1800s. Financial expertise was as much a necessary complement to operational ingenuity then as it is today.

When combined operational ingenuity and financial expertise lead to great things. But, this may be difficult for many Tennessee businesses to achieve. Alone, a business owner typically does not have access to all the technology, best practices, and financial solutions they need to make their business completely efficient. Like Edison and Insull, Pathway Lending can partner with your business to turn its vision of efficiency into a reality. We provide our clients with the financial capacity to make projects happen and the support they need to identify opportunities for efficiency in their business.

 Ingenuity, financial capacity, and the passion to help Tennessee’s businesses grow: It’s what Pathway Lending brings to all of its client relationships. Let us help you unlock energy savings that exist in your business.

 For more information, visit www.PathwayLending.org

Now is the time to buy commercial real estate in middle Tennessee, if you can.

Guest Blogger: Rob Lowe, Senior Managing Director and Principal at Cassidy Turley.

Most observers of the middle Tennessee commercial real estate market acknowledge that the dire predictions for mass tenant and borrower defaults never materialized, certainly not in our region. There is no question that middle Tennessee felt the national loss of consumer confidence as well as the lack of liquidity in the financial and lending markets but most of this stress in our region was concentrated in land and non-income producing real estate.

As the broad, national economy eases from the recession, middle Tennessee is well positioned. The overall office, industrial and retail commercial real estate markets showed strong gains in 2011 as vacancy rates have fallen and rents stabilized even increased in some markets. Site Selection magazine ranked Tennessee a “Top Ten Business Climate in the U.S.” based upon several factors including a pro-business state, ease of doing business and workforce availability, to name a few.

The result of this improving local economy is that available, quality commercial real estate is beginning to become harder to find. If a company identifies a property that supports its core business now is the time to act. It is likely that the same property, and properties similar to it, will be more expensive a year from now and fewer alternatives will be available.

I believe Pathway Lending shares this understanding of our region and will assist qualified owner-occupants to purchase the real estate that supports their core business. Their loan programs offer owner-occupants an attractive combination of historically low interest rates, competitive amortization and favorable loan to value terms. Now is the time to buy commercial real estate in middle Tennessee, Pathway Lending can help.

At A Glance: Rob Lowe is a Principal and Member of the Board of Directors of Cassidy Turley. Rob specializes in property investment, development, leasing and sales, primarily in the office segment. Rob has participated in $251 million in investment sales, as well as over $437 million of lease transactions while representing tenants and over 3,000,000 square feet of Class A office space.

Contact Rob at:
Web Page
Senior Managing Director, Principal
5250 Virginia Way, Suite 100
Brentwood, TN 37027
T: 615-301-2910
F: 615-301-2958
Rob.Lowe@cassidyturley.com

Tennessee's Self-Employment Numbers Surge

The Washington, D.C.-based Office of Advocacy released its annual Small Business Profiles for the States and Territories Thursday, with the study showing Tennessee’s self-employment numbers having surged during the past decade.

Following are highlights from the Office of Advocacy small business profile of Tennessee:

• There were approximately 545,000 small businesses in Tennessee in 2009. Of these, about 96,000 were employers and they accounted for 44.8 percent of private sector jobs in the state. Small firms comprised 97 percent of the state’s employers.

• Throughout 2010, the number of establishments that opened was lower than those that closed, but the net employment change from this turnover was positive.

• Tennessee’s real gross state product decreased 1.6 percent and private-sector employment decreased 0.5 percent percent in 2010. By comparison, real GDP in the United States decreased 1.3 percent and private sector employment declined by 0.8 percent.

• Self-employment in Tennessee surged over the last decade. Male self-employment fared better than female self-employment during the decade.

Brown said the self-employment findings show Tennessee is an entrepreneurial state.

“But our members believe we have opportunities to make it better,” he said. “We think the governor and his team are zero-ing in on those areas of opportunity, for which we are certainly grateful.”

Full article from the Nashville Post is available here.

Branding Chattanooga: Creating a Font to Tell Your Story

How does a city successfully build a name for itself and make a lasting impact on the public's perceptions?

Successful branding can turn a city into a place where people want to live, work and visit. A strong identity is vital if you are vying with other places for attention in tourism and business or relaunching an area after a regeneration initiative.

The re-branding efforts of one Tennessee city, Chattanooga, have been receiving some press recently. Two Chattanooga-based professionals, D.J. Trischler, a brand consultant and typeface designer Jeremy Dooley, have embarked on an ambitious project to distill the city's artistic and entrepreneurial spirit into a font called Chatype. The goal is to help the city and its businesses forge a distinct and cohesive identity through custom typeface, sending a visual message to the world that Chattanooga—a rapidly growing city in the midst of a creative renaissance—is “more than just your average Southern town.”

They pulled from a diverse set of local visual references including the Cherokee writing system, Coca-Cola's first bottling plant, and, of course, that city's "choo choo," immortalized by the 1940s big band song. Dooley calls the final style a "geometric slab serif." The "slabs are inspired by the industrial past. The geometric aspect is to add a sense of futurism," playing to the city's aspirations of becoming the "Silicon Valley of the East Coast" with an economy fueled by technology and startups.

While the designers still have more work to do to finalize the typeface, if all goes according to plan Chattanoogans will soon begin to see Chatype popping up on signage, business cards, emails, and websites published by the city government. The new font helps give the city an updated image, one that better tells the story of their environmental, economic, and artistic growth over the past few decades.

More at GOOD Magazine.

Making the Commonplace Special

In every city and town there is at least one barbershop or salon. These businesses are commonplace, often compete for clients, and often have short lifespans. But, those that stand out can offer interesting insights for your business.

How do you make the commonplace special?

Is it a focus on personal services? Is it unique product offerings that highlight local specialties? Or is it some else, something that is completely unexpected and outside of the box?

Unfortunately, there is no simple answer to this question. But, the following video provides an interesting look into four barbershops and salons from around the globe and how they have managed to stand out from the pack. Take note, as there are certainly lessons that can apply to your business - wherever you are and whatever you do - that can be gained.

WATCH THE VIDEO NOW

Infographic: Looking Ahead In 2012

by Column Five Media via

Innovation and Entrepreneurship: The Popuphood

POPUPHOOD from Eva Kolenko on Vimeo.

Oakland, California is using an innovative strategy to revitalize its Old Town business district. Sometimes a fresh idea, a little support from the community, and a willing landlord can make the difference in filling storefronts and attracting shoppers. Now, this idea may not work everywhere. But, it is important to consider how thinking outside the box can support entrepreneurs and invigorate a community. I encourage you to read the excerpts below and watch the video, then think about what attributes your community has, and what opportunities exist for you to rethink how business is done.

"Many cities in America are facing the slow decline of their main streets and shopping areas. But a new program in Oakland might be the key to reviving vibrant, local commercial centers. All it takes is a little free rent and some entrepreneurial spirit.

In September 2011, local entrepreneur Alfonso Dominguez and his friend Sarah Filley, an urban planner, teamed up to create PopuphoodOakland, a project that is giving five new retail shops the opportunity to get six months of free rent at previously vacant storefronts on one block in the neighborhood. Dominguez and Filley didn't have to work too hard to convince the landlord that owns the storefronts to get on board. The spaces had been unoccupied for at least a year, and successful storefronts might stay out past the six month mark. The Oakland Redevelopment Agency, ever hopeful to revitalize downtown, pitched in with a $30,000 grant. And the pair have plenty of creative-minded contacts in the city, so finding tenants wasn't too difficult.

"The concept of simultaneously curated retailers that open all at once removes several of the barriers to entry right away," explains Filley. "One is being the lone pioneer in a transitional neighborhood. Another is the initial capital of buildout, rent, and staffing. The third barrier is, doing it on your own,you don't necessarily have a retail community. You can't control who comes in next to you. In this case the retailers have neighbors that they know will complement their business."

It was least to see how the strength of five new storefronts could invigorate a newborn old that as sporadically populated before. All of the retailers were enthusiastic about the potential to stay longer than the six month free rent period. A lot of people showed up during the December 9th launch making it look like the strategy of combining retail and entertainment with a no-risk lease seems to work here."

The Status of Women In Tennessee

There have been great advances in the economic status of women over the last 50 years. Women have gained greater access to education, career, earnings, and political participation. Women are pursuing goals that generations of women before could never have realized, such as business ownership, leadership roles in their careers, and election to state and federal political offices. However, obstacles still exist in the climb toward equality. Despite the great strides that women have made in the last 50 years, women have yet to achieve true equality with men. Women continue to earn less, to be less educated, to have higher rates of poverty, and to be less represented in political office than men.


Overall, women’s economic status is highest in metropolitan counties surrounding Nashville. Cheatham County ranks in the top ten in six of the thirteen indicators and never appears in the bottom half of any indicator. Women in Wilson and Sumner Counties also fared well, both ranking in the top twenty of ten indicators. 11 of the 13 counties within the Greater Nashville Development District rank in the top third of women’s economic status.

Women’s economic status is lowest in Grundy County, which ranks in the bottom ten in eight of thirteen indicators and only appears in the top half of indicators three times. Hardin County never appears in the top third of any indicator. In the Memphis Area Development District, Lauderdale County women rank 91st while their female counterparts in Shelby, Tipton and Fayette Counties never rank below the top half.

View the entire report, including a county by county break down here.

Despite Opportunities, Tennessee Lags in Combined Heat & Power Implementation

Washington, D.C. (September 28, 2011): The combined heat and power (CHP) market is growing unevenly in different states, and will require more efforts than just supportive policies to achieve greater deployment, according to a new report released today by the American Council for an Energy-Efficient Economy (ACEEE). The report, Challenges Facing Combined Heat and Power Today: A State-by-State Assessment, profiles CHP markets in each state and identifies which elements of the market are encouraging or discouraging CHP developers today.

CHP, sometimes known as cogeneration, is an important energy resource that produces electricity and thermal energy at the same time from a single fuel input and provides highly efficient energy by maximizing the energy value of a variety of fuels. CHP can produce energy twice as efficiently as standard centralized energy generation. The Department of Energy reports that CHP has been cleanly and quietly providing over 12% of U.S. electricity generation. Since 2005, over 1700 MW of capacity has been added due to new CHP system deployment, but that deployment has been unevenly distributed around the country.

"CHP markets differ considerably among states," said Anna Chittum, ACEEE Senior Policy Analyst and lead author. "This report shows that building a favorable CHP market requires more than just good policies, such as interconnection standards and tax incentives. The current economic recession and missing access to retail power markets continue to negatively impact CHP markets in many states, and prevent CHP from reaching its full potential around the country."

TENNESSEE: While there are many opportunities for successful CHP applications in Tennessee's industrial sector, the state has seen relatively little traction in this area, with zero new CHP installations occuring between 2005-2010. Tennessee ranks 45th in terms of New CHP Sites and CHP Capacity. However, with funding from the Pathway Lending Energy Efficiency Loan Program and federal and state incentives, the barriers to these programs are lowered. Co-generation projects typically have the quickest repayment periods and will benefit businesses for many years following implementation.

"CHP represents an important energy resource that could meet a significant portion of projected needs for new electricity generation investments over the coming decade," said Dr. Neal Elliott, ACEEE Associate Director for Research and author of the recent white paper Avoiding a Train Wreck: Replacing Old Coal Plants with Energy Efficiency. "This report identifies areas that each state and the country as a whole must work on to better encourage CHP so that we can realize the full benefits of this resource."

To learn more about CHP and your business, contact Pathway Lending @ info@pathwaylending.org or 615-425-7171.

The Kraft Advantage - The U.S. Government’s ‘Limited Time Offer’

From the Kraft Advantage Newsletter. [Sign Up]

Government Grants Make 2011 the Right Time To Invest In Alternative Energy Sources - Kevin Dostaler

...The United States government wants Americans to embrace alternative/renewable energy sources. To encourage us to do that, the government is temporarily subsidizing investments in projects that will help decrease our country's dependency on non-renewable energy sources.

Under Section 1603 of the American Recovery and Reinvestment Act of 2009, the United States Department of Treasury makes payments to eligible taxpayers who place in service specified energy property and apply for such payments.

...Generally, the qualified property must be placed in service between January 1, 2009 and December 31, 2011, to receive Section 1603 payments (grants). The amount of teh grants ranges from 10 percent to 30 percent of the cost basis of the property, depending on the type of property.

For example, if you put solar panels on your roof, you could be eligible to receive a grant amounting to 30 percent of the cost of the solar panels.

Participating in this program can be good for the environment, our country, your civic image (Go Green!) and your bottom line.

Please contact Kevin Dostaler at Kraft CPAs for more information: kdostaler@kraftcpas.com

Or visit the Database of State Incentives for Renewables & Efficiency

A Greener & Brighter Future With Energy Efficient Lighting

Manufacturers Industrial Group, LLC now operates a little greener — and brighter — with the aid of a Pathway Lending Energy-Efficiency Loan. The Lexington, TN based manufacturer has enjoyed more than just the energy cost saving benefits of the energy efficient lighting retrofit, and is considering similar upgrades for its other Tennessee facilities.

The process began with a study by the University of Tennessee Center for Industrial Services that recommended lighting improvements as the best proposal with the quickest payback. The loan will pay for itself in slightly more than two years through reduced energy costs.

While the quick ROI and long-term savings is a serious benefit, other benefits to this type of project should also be considered.

Employee Morale & Productivity: New lighting also provides a better environment for employees and MIG representatives report seeing a boost in morale. With improved light quality and improved worker morale, it is common to see corresponding increases in productivity.

Ease of Installation: While lighting projects typically have the quickest payback, they are also typically the quickest to install. The lighting retrofit at MIG, which has about 234,000 square feet of facilities in Lexington, began about a month ago and took three to four weeks to complete. This was completed during off-shifts and weekends, leaving the company's production unaffected.

Full Scope Audits Identify a Wide Range of Energy Efficiency Projects: The University of Tennessee Center for Industrial Services, as well as other audit providers such as the U.S. DOE Industrial Technology Program, look at more than just lights. They looked at wiring, air hoses, pumps, motors, power outlets and other areas that may yield significant energy cost savings.

Getting Ahead of Escalating Energy Costs: "You're going to get your best return in lighting," said Al Campbell, client manager for Pathway Lending. "There's a lot of folks doing it," Campbell said. "There's also going to be a lot of folks that will be doing it as energy prices rise. That's the long-term trend."

Learn more about the Pathway Lending Energy Efficiency Loan Program at www.PathwayLending.Org

DOE design guide aims to halve commercial building energy consumption

May 16, 2011—The U.S. Department of Energy has released the first in a series of design guides that aim to cut the energy consumption of commercial buildings in half.

The first of the 50% Advanced Energy Design Guides focuses on small and medium-sized office buildings, and is available for free download.

The DOE says the guides provide a practical approach to help architects and engineers design buildings that achieve 50 percent energy savings compared to the commercial building energy code used in many areas of the country.

The guidance also supports President Obama's goal to reduce energy use in commercial buildings 20 percent by 2020, and will help drive demand for energy-saving products made in the United States, the department says.

Remember - Reducing energy consumption by 20% is like boosting sales by 5%.

The guides recommend ways designers can choose energy efficient designs for daylighting, building envelope assemblies, and heating and cooling systems, among other technologies. They also recommend commonly available equipment.

The design guides provide recommendations for energy savings.
DOE says the guides are designed to reduce the time and money that designers would otherwise spend to individually model energy use for high performance buildings. The guides will also inform the development of future commercial building energy codes, the department said.

The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), American Institute of Architects (AIA), U.S. Green Building Council (USGBC), and Illuminating Engineering Society of North America (IESNA) are all helping to develop the booklets.

The guide is now available for FREE DOWNLOAD HERE.

Three more guides, on large hospitals, medium to big-box retail buildings and K-12 schools, will be released in coming months.

EnergyStar Challenge Saves Over 2 Trillion BTU in Last Year

One year ago, the U.S. Environmental Protection Agency (EPA) challenged the manufacturing industry to improve the energy efficiency of their facilities by 10 percent or more within five years. Since that time, 240 manufacturing sites have responded to the Energy Star Challenge for Industry, and 34 sites have improved their energy efficiency by 10 percent or more, reports EPA.

Both small and large manufacturing facilities have met the milestone and have prevented nearly 119,000 metric tons of carbon dioxide equivalent, demonstrating that efficiency opportunities exist across all sectors of industry including aerospace, food processing, pharmaceuticals, and motor vehicle manufacturing. Many of these sites also report that savings were achieved at low cost by strengthening energy management practices and improving operations with help from EPA's Energy Star program.

Under the challenge, manufacturing sites establish an energy intensity baseline, set a 10 percent energy efficiency improvement goal, implement energy efficiency projects, track energy use, and verify their savings. Hundreds of industrial companies across nearly a dozen manufacturing industries are working with EPA's Energy Star program to develop strong energy management programs, earn the Energy Star for their facilities, and achieve breakthrough improvements in energy efficiency.

The U.S. manufacturing industry is reportedly responsible for nearly 30 percent of greenhouse gas emissions in the United States and spends nearly $100 billion annually on energy. If the energy efficiency of industrial facilities improved by 10 percent, EPA estimates businesses would save nearly $10 billion and prevent greenhouse gases emissions equal to the annual emissions of approximately 12 million vehicles.

Article Link - FM Link May 2011

Pathways To Sustainability, a UNEP Report

The United Nations Environment Programme (UNEP) has released a new ground-breaking report titled "Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication". Chapters pertaining to the Building and Manfuacturing sectors seek to make an economic case for investing in “greening” efforts and aim to provide policymakers with guidance on how to mobilize such investments. The report demonstrates how green investments in these sectors can create jobs and contribute to economic growth, while addressing environmental issues, in a pro-poor and equitable manner.

Buildings: Investing in Energy and Resource Efficiency (Key Messages)

- The Buildings sector of today has an oversized footprint. The buildings sector is the single largest contributor to global greenhouse gas emissions (GHG), with approximately one-third of global energy end use taking place within buildings. Further, the construction sector is responsible for more than a third of global resource consumption, including 12% of all fresh water use, and significantly contributes to the generation of solid waste, estimated at 40% of total volume.

- Constructing new green buildings and retrofitting existing energy- and resource-intensive buildings stock can achieve significant savings. Various projections indicate that investments ranging from $300B-$1T (depending on assumptions used) per year to 2050 can achieve savings of about one-third in energy consumption in buildings world-wide and significantly contribute to the reduction of CO2 emissions needed to attain the “benchmark” 450 ppm concentration of GHGs. To reduce 3.5 gigatons (Gt) of emissions through increased energy efficiency, the average abatement cost would be negative at -$35 per ton, reflecting energy cost savings, compared to -$10 per ton in the transport sector or positive abatement cost in the power sector of $20 per ton.

- Greening buildings also brings significant health and productivity benefits. Greening buildings can also contribute significantly to health, livability and productivity improvements. The increased productivity of workers in green buildings can yield savings higher than those achieved from energy efficiency, which are themselves considerable.

- Greening the building sector can lead to an increase in jobs. Investments in improved energy efficiency in buildings could generate an additional 3.5 million green jobs in Europe and the USA alone. Various studies point to job creation through different types of activities, for example new construction and retrofitting, production of resource efficient materials and appliances, the expansion of renewable energy sources and services such as recycling and waste management.

Manufacturing: Investing in Energy and Resource Efficiency (Key Messages)

- As currently configured, manufacturing has a large impact on the economy and the environment. Manufacturing is responsible for around 35% of global electricity use, over 20% of CO2 emissions and over a quarter of primary resource extraction. Manufacturing currently accounts for 23% of global employment.

- Key resource scarcities – including limited recoverable oil reserves, metal ores, and water – will challenge the sector. As industries resort to lower-grade ores, more energy is required to extract useful metal content. Improved recovery and recycling will increasingly become a decisive factor for both economic performance and environmental sustainability. The same applies to water use, which is expected to grow to over 20% of total global demand by 2030.

- Key components of a supply-side strategy include remanufacturing and the recycling of heat waste through combined heat and power installations. Closed-cycle manufacturing extends the lifespan of manufactured goods and reduces the need for virgin materials. Repair, reconditioning, remanufacturing and recycling are fairly labor-intensive activities, requiring relatively little capital investment. Remanufacturing operations worldwide save about 10.7 million barrels of oil each year, or an amount of electricity equal to that generated by five nuclear power plants.

- While direct job effects of greening manufacturing may be neutral or small, the indirect effects are significantly higher. Manufacturing has become increasingly automated and efficient, which has been accompanied by job losses. This can be countered by life-cycle approaches and secondary production, for example in the form of recycling, to secure jobs, for which safe and decent working conditions are paramount.

- Green-investment-scenario modeling for manufacturing suggests considerable improvements in energy efficiency can be achieved. By 2050, projections indicate that industry can practically “decouple” energy use from economic growth, particularly in the most energy-intensive industries. Green investment will also increase employment in the sector.

http://hqweb.unep.org/greeneconomy/GreenEconomyReport/tabid/29846/Default.aspx

The Benefits of Greeing Healthcare Facilities

On March 21, 2011 assisted living facilities became eligible to receive the Environmental Protection Agency’s ENERGY STAR recognition, allowing facilities to be among the top 25 percent of the most energy efficient buildings in the US. In addition to the possibility of receiving ENERGY STAR designation, providers will have access to the tools and information necessary to reduce their energy usage. Having access to these tools will help Facilities Managers understand how their buildings use energy and where opportunities for savings exist.

To learn more about the program visit: www.energystar.gov

Energy Efficiency among assisted and senior care facilities has been on the EPA’s agenda since 2008. These facilities, which operate on a 24/7 basis, have high energy needs and high energy bills. Given the profitability of senior care facilities, a dollar saved in energy can go a long way toward the bottom line. For assisted living facilities with a 10% profit margin, every dollar saved in energy is $10 the organization doesn’t have to make in revenue. Moreover, every dollar invested in an energy efficient upgrade can produce between $2 and $3 dollars in increased asset value.

One of the most effective activities that providers can do is retro-commission their facilities to ensure that all systems are functioning as they were intended when the buildings were originally designed. The Lawrence Berkeley National Lab found that proper maintenance can translate into energy savings of 5% to 15%.

Lighting is typically a large percentage of a building’s electrical load, so replacing incandescent lights with complex fluorescent lights, such as T-8 lamps with electronic ballasts, is a good strategy that often has a simple payback of less than three years.

Heating and cooling equipment tends to have longer payback periods. But when these measures are bundled with lighting or with other ENERGY STAR rated products, which cover more than 50 different product categories and produce 25% to 50% savings, organizations find that the bundled items often fall within a company’s hurdle rate.

Bundling projects to reduce overall project payback rates is strongly recommended by Pathway Lending. Our Energy Efficiency Loan Program uses total project energy savings to set monthly payments and amortize the loan. Combining projects with shorter and longer paybacks allows companies to do more projects at one time. And with Pathway Lending’s recently increased loan limit, which is now above $1 million dollars, companies can set their sights on the largest and most energy intensive projects at their facilities. There has never been a better time to start saving green by going green – contact Pathway Lending today at 1.888.5EE.PATH (1.888.533.7284) or at EEInfo@PathwayLending.Org.

The Greening of Tennessee's Economy

Tennessee's economy stands to benefit from a new emphasis on green technology - particularly Electric Vehicles. Leading the way is Nissan North America, which will bring Nissan Leaf production to its Smyrna plant in 2012.

The construction process advances every day and the foundation is already laid, structure being erected and roof being installed. The battery plant will roll out 200,000 batteries per year while the adjacent vehicle assembly plant is scheduled to produce 150,000 electric cars per year. Nissan will invest up to $1.7 billion in the local facility, with $1.4 billion coming in the form of a loan from the US Department of Energy.

This project and the development of a local supply chain, can have tremendous impact on the state's economy and make Tennessee a leader in the green economy.

Check out this interview with Carlos Ghosn, CEO of Nissan.

New Stats About the Average American Small Business

With the New Year, let's look at some new data on what constitutes the average American Business. The online journal, Small Business Trends, analyzed the results of the 2007 Survey of Business Owners. While their findings were not what I had expected this is interesting and certainly worth sharing with all you Small Business Owners out there. [Emphasis in the below article is mine, not the author's.]

What Does the Average American Business Look Like?
Posted By Scott Shane On January 3, 2011 @ 10:58

The Census Bureau recently released the results of the 2007 Survey of Business Owners, the government’s effort to examine American businesses every five years. The survey paints an interesting picture of what the average American business looks like.

The largest share of American companies is in the professional, scientific, and technical services sector, which accounts for 14.0 percent of U.S. companies. Construction accounts for the next highest portion at 12.6 percent. Manufacturing and agriculture, once the mainstays of American business, now account for 2.3 and 1.0 percent of U.S. companies, respectively.

The vast majority (78.8 percent) of U.S. businesses have no employees. And the share of businesses without employees now exceeds 90 percent in agriculture and arts, entertainment and recreation. The only sector of the economy where the majority of businesses has employees is accommodation and food services, in which 61.5 percent of businesses still have workers.

The average business generates over $1.1 million in sales, has more than 4 employees and pays an average compensation of over $41,000. However, when firms without employees, which have an average of only a little more $45,000 in sales and no employees (by definition) are excluded, average sales per firm rises to over $5 million, and average number of employees per business exceeds 20.

Wide industry variation exists in average sales and average employment. Average sales range from a little more than $96,000 in other services to over $25.1 million in utilities. Average employment varies from 0.7 employees per business in agriculture to over 107 in the management of companies.

One final point about the data is worth noting. The difference in economic impact of employer and non-employer firms is extraordinary. The 78.8 percent of businesses without employees only account for 3.2 percent of sales and none of the employment of U.S. companies. Employer firms are clearly much more economically important than non-employer firms.

For more data from this survey, click here.

Upcoming Pathway Lending Events - Chattanooga

Pathway Lending will be hosting two events to promote its new Energy Efficiency Loan Program in Chattanooga next week.

Wednesday September 8th, 2010: Free Lunch & Learn Event. 11am-1pm at Sticky Fingers BBQ, 2031 Hamilton Place Blvd. RSVP: jen.mclachlan@pathwaylending.org or 615.425.7171

Friday September 10th, 2010: Free Breakfast Event with the Chattanooga Chamber of Commerce. 8am-10am. 811 Broad Street. RSVP: 423.756.2121

Energy Efficiency Loan Fund Workshop Offered To Chattanooga Businesses
posted September 2, 2010

Pathway Lending will host a workshop in Chattanooga to inform and educate local businesses about how to access a new $50 million Energy Efficiency Loan Program announced on Aug. 25 by Governor Phil Bredesen.

The workshop, with Clint Gwin, president of Pathway Lending speaking, will be on Wednesday, from 11 a.m.–1 p.m. at Sticky Fingers BBQ, 2031 Hamilton Place Blvd.

Utilizing a unique model, Pathway Lending’s Energy Efficiency Loan Program enables businesses to achieve significant, long-term energy savings while increasing their productivity and profitability. The program offers below-market rate loans with terms extending to ten years.

Loans can finance up to 100% of costs on projects including building retrofits, equipment replacements or upgrades, lighting and renewable generation projects. The loans may be repaid with the energy costs savings derived from each project.

Presenters will explain how organizations can apply for loans and answer any questions people local businesses might have. With first round applications due by Nov. 1, the program is available to any business seeking to reduce energy consumption in their Tennessee facilities through building retrofits and upgrades, equipment replacement purchases or other energy efficiency or renewable energy projects.

The state of Tennessee, Pinnacle National Bank, TVA, the US Department of Energy, the US Economic Development Administration and Pathway Lending joined together to create this unprecedented program.

Founded in 1999, Pathway Lending is a Community Development Financial Institution that provides loans to businesses lacking access to traditional financing options throughout Tennessee.

Energy-efficiency loans will help businesses and state

In case you missed it...here's Clint's Op-Ed piece from the Tennessean.

Thanks to the leadership of Gov. Phil Bredesen and the state legislature, Tennessee businesses will now have access to energy-efficiency financing at an unprecedented level.

Through this leadership, the state is creating a unique public-private collaboration to develop a model for the rest of the nation to follow. This first-of-its-kind collaboration is leveraging state funds with capital from the Tennessee Valley Authority, Pinnacle National Bank and Pathway Lending to create a targeted loan program for financing energy-efficiency improvements. This program is receiving additional support from the U.S. Economic Development Administration and the U.S.
Department of Energy as a possible blueprint for other states.

Why is this important now? As many businesses understand, energy costs are rising and corporate budgets for capital projects are shrinking, and, as the Pew Foundation recently reported, lack of financing is the No. 1 barrier to implementing energy-efficiency projects.

This program will bring businesses in our state what is now unattainable — access to loan capital to finance energy-efficiency and renewable energy projects. The program will provide below-market-rate loans for improvements ranging from $20,000 to $1 million. Whether it's building retrofits, equipment upgrades or adding renewable energy generation, businesses can now take the next step in achieving the significant, long-term energy savings they've been demanding, all the while
becoming more competitive and reducing impacts on the environment.

Long-term savings are huge
The study "Energy Efficiency in the South," released in April, says that by reducing the growth of electricity consumption, Tennesseans could save $1.6 billion a year by 2020 and $3.1 billion a year by 2030. More importantly, energy-efficiency projects create and retain jobs in Tennessee. These economic impacts are felt locally where trained contractors, consultants and installers are needed for projects. Over the next 10 years, it is expected that this loan program will generate more than $100
million in loans and will create and retain more than 3,500 jobs while decreasing demand for electric power generation and reducing environmental impacts.

Tennessee has made significant strides to become a national leader in sustainability and green business over the past few years. Major corporations specializing in solar energy are moving to our state. Organizations like the Southeastern Energy Efficiency Alliance are educating businesses on the value of energy efficiency. Oak Ridge National Laboratory is using commercially available and lab-developed technology for energy-efficiency efforts such as the Net-Zero Energy Building and
Sustainable Campus Initiative, all of which have been recognized as potential national models.

When you add up the opportunities, energy efficiency is a smart decision for business and the state economy and an even better decision for the environment.

At Pathway Lending, we have been committed to bringing access to capital to Tennessee businesses since 1999, and this program is no different. We are
launching an online application process and look forward to working with businesses from sole proprietors to corporations and everyone in between in their efforts to become more energy efficient, environmentally friendly and globally competitive.