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Business Block Party
Getting Creative with Capital Funding
Getting Creative with Capital Funding

Jim Carr (left) of CAAR Machine & Tool tells EGVbizhub's Jim Merritello (right) how he made
the most of the Trade Adjustment Assistance for Firms (TAAF) program.


HOW IT WORKS

  • A domestic manufacturer or service firm may apply, at no cost, to see if they are eligible for assistance. ASI reviews basic company financial and employment information, looking for a decline in sales or production and employment due, directly or in part, to foreign competition.
  • Following approval, ASI then helps the manufacturer identify specific projects that will improve its competitive position in areas of marketing, general and financial management, information technology, and manufacturing processes. There is a one-time fee for this assistance.
  • For the projects, TAAF typically covers half the cost of any intangibles — such as consulting, training and technical support. The total amount covered can be set at a $75,000 threshold or as high as $150,000.
  • To execute the projects, ASI then can connect the company with appropriate consultants and outside service providers — or the company may choose to use its own consultants.
  • Invoices get submitted directly to ASI, which in turn pays half to the outside service provider; the company then pays the remaining 50%. (There is also an option of a 75/25 cost share, up to a total of $30,000 for consultant expenses.)



FIRST-HAND EXPERIENCE
CARR Machine and Tool, Inc. in Elk Grove Village is in its fourth year of participating in TAAF. Jim Carr, President and Owner, initially applied for a $75,000 funding cap with cost sharing at 75 percent. He later converted to a $150,000 cap with 50 percent cost-sharing. Thanks to the program, Carr has been able to cover the costs of creating a new website, trade show booth and other marketing tools, plus installing new software and equipment, as well as hiring and training new employees.

Click here to get your Eligibility Checklist and learn more about the TAAF program.