Start-up costs for small business is everything that the business requires to open for the first day of operations. Start-up costs include such expenditure categories and specifics as:
I. Facilities including: rent, deposits (security, utility, water, electricity and other hook-ups), fixtures and signs,
II. Equipment including: furniture, production machines and equipment, computers and software, cash registers, telephones, vehicles.
III. Materials/Supplies including: starting inventory, production materials and components, stationery/office and packing supplies, brochures pamphlets and other descriptive material.
IV. Fees and Other Costs including: licenses/Permits, trade or professional memberships, accounting, legal, insurance, marketing and management consultants, advertising and promotional activities.
V. Cash Reserves including cash for salaries, initial operating expenses, unanticipated costs
RSB may fund start-up costs in categories I through IV with the exception of vehicles. RSB may cover the cost to purchase necessary adaptations to accommodate a disability related functional limitation to safely operate a vehicle.
Each business plan should contain a document titled Source and Use of Funds that should contain the itemized list of all start-up costs and the specific source of the funding for each item. Funding sources include such resources as: client’s resources to document the minimum 25% of total necessary to open the first day of business, small loan from any type of investor, Rehabilitation Services for the Blind, or State or City grants particularly for job creation in economically stressed areas may be available.
Signatory approval of small business plans begins with the counselor’s signature and progresses to the local District Supervisor’s signature and concludes with the signature of the lead Administrative person on the small business review committee. The small business review committee includes the local District Supervisor, RSB’s fiscal manager, and Assistant Deputy Director or designee.
When a business plan is reviewed and approved the approval signature will be located on the cover sheet or executive summary and on the Source and Use of Funds document. This will serve the purpose of a signed agreement on what RSB will fund and that the client has the minimum of 25% of total start-up costs to open for business on the first day of business.
When submitting the initial authorization for purchase of any itemized start-up expense that has RSB as the listed source on the Source and Use of Funds Document, please include the approved small business plan cover sheet/executive summary and the Source and Use of Funds document.
Any additional authorization(s) for itemized start-up expenses that have RSB as the listed source on the Source and Use of Funds document should reference the item’s location on the Source and Use of Funds document by number.
ALL authorizations for small business start-up costs should include the statement "Small Business Start-Up Costs" in the section titled "Services Authorized for the above named individual" .