 Welcome to Adventures in Small Business, a collaboration between the United States Small Business Administration, Hawaii District Office, and its resource partners, where we showcase Hawaii's entrepreneurs and small business. Today, actually, we have Cindy Matsuki from the Hawaii Technology Development Corporation joining us today. And she's going to talk about a lot of cool things that's happening at HTDC. Welcome to the show, Cindy. Thank you. Thanks for having me. So before we get started and talk about the interesting programs as you guys have, maybe you can tell us a little for the viewers, you can explain what HTDC does and what the purpose is and what your mission is. So HTDC is an attached agency to Peabed, and we are charged in growing the tech economic sector. Oh, OK. And because tech is kind of getting into all industries, we're covering more and more. It's very diverse. I read somewhere that there's an initiative to have 80,000, I forgot what the figures were. 80,000 new jobs paying or earning $80,000 more by 2030. Yeah, by the year 2030. Yeah, that is a crazy, yeah, it's crazy. But I think if people start thinking that way, then we'll start doing different things to try and get that's the goal. That's a very, very good mission and to have. So for the viewers, basically we, the HTDC, their house actually at the Mono Innovation currently with the VBox and the SVDC, and they do a lot of great interesting work, but they have a new project called the Entrepreneurs' Sandbox. You want to tell the viewers what that is and how it's coming along? So that was a project that got federal, state and private funding, which is very awesome. We've got a grant from EDA and the state funded some of it, and we have some private interest, putting in money as well. And all together it was like 7.6 million for this building. It's basically a community center for innovation, creative, technology. It's going to be co-workspace and office space, small office space and collaborative events space. Similar to the Mono Innovation Center, but smaller and just more open, more open space. Okay. And are you guys going to actually move there too? That is yet to be determined. Okay. So you might be homeless, I guess maybe a couple months. We'll be not homeless, but... But the Sandbox is a very interesting space for those that haven't been there or haven't seen it. Where's it located? It's in Kakaako, right next to the medical school. Just Eva of the medical school. All right. And you said about 13,500 square feet. And there's meeting rooms and video conferencing room. And we just brought on the Box Jelly as a partner. Maybe you can explain what Box Jelly is for the... Box Jelly is... They opened up one of the first co-working spaces in Hawaii before it was even like a thing. And so now co-working is growing. And so we put under RFP a while ago, and Box Jelly won to manage our co-workspace. And so based on their experience, they're going to help us run the co-workspace at the Sandbox. And it's to help take people's ideas and grow them into companies to have all those resources there at the Sandbox. Maybe you can talk about the resources that are available to entrepreneurs that are looking to maybe grow or start their business in collaboration or at the Sandbox. So the original ideas for the Sandbox was there's going to be a makerspace where you can start prototyping your ideas. There's also going to be... We partnered with the Creative Industries Division of D-Bend that does the movies and the film industry. So they have a studio space for digital media. Similar, bigger than this, but similar, where they're going to check it out with lighting and sound. You can do your commercials or you can do films there. And there's classroom space. And so we're going to start bringing in programs to help grow businesses as well. OK. So what kind of, I guess, tenants are you looking for? We're looking for innovative startups. Manufacturing, yeah. And then the co-workspace, I think they're trying to focus on tech and creative also. But it's also just for people that are working from home but want a space outside of home to work. And there are other rates that are comparable to what's out there currently? Oh, so I think so. The Box Jelly kind of sets the rates. So co-working space starts at $85. And then the office spaces, which are small 200 square foot offices, private offices, they start at $800 for startups. OK, very cool. So Box Jelly, it's the, I'm sorry, not Box Jelly. The sandbox, it's been in construction for a while. And the construction happened really fast, actually. Really? They did the blessing, the groundbreaking in April last year. Oh, OK. And they turned over the keys to us in February. Oh, wow, OK. Yeah. So when are you expecting the grand opening? And I know you were telling me earlier that you guys had a soft opening yesterday. We did have a soft opening. We had a WhatWare Wednesday, which is our monthly software developer networking event. So we did a soft opening there. Our sponsors, our awesome sponsors were Servco and Unisys. But we don't have the permanent furniture there. Right now it's temporary furniture. And so the Box Jelly is working on, they're working with Fishcake to furnish the building. And then once that's in, I think that should be early summer. And so we're looking to do a grand opening early fall. And are you seeing an uptick in interest from entrepreneurs or tech businesses? Yeah, I mean, when we brought it to conferences to talk about, people were super interested. And at the soft opening, a lot of people were like, when can we do events here? Oh, wow. Yeah. So there's a lot of interest. The viewers that were looking at the space, I mean, it looks really, really nice. Very beautiful space. Yeah, it's a great space. Very modern, very cool. And once it gets finished up with all the furnishings, I think it's going to be really, really nice. So we got the sandbox. What else is going on at ACC that you'd like to talk about? So ACC has a lot of state resources for small companies and small businesses. The two that I wanted to mention were the MAP grant, the Manufacturing Assistance Program grant, which is a reimbursable grant for equipment, training, I think feasibility studies to expand your business. And that's a reimbursable of 20% of the purchases with receipts up to $100,000. Yeah, and I'm sorry. But I had a client a while ago who was a recipient of that grant. And he said it was such a nice thing that the state does. I mean, the ACC does. The program is not ongoing. I mean, every year, what does the process look like for? Let's say a manufacturer that is looking to kind of recoup some of those expenses or costs that they incurred. How do they go about it? It was in the bigger scheme of things. We get our funding through the ledge. And so it needs to be appropriated to us every year. And so this year, we did get some funding. And we put out an application. And so companies need to have their receipts. They need to document their purchases. And they submit the application. And they submit all the receipts. And all the qualifying receipts will be considered a reimbursement. And those receipts has to be in the calendar year that they apply? I think this might have been the last year that we were kind of back. We're looking back for at least, I think it was five years. But moving forward, I think next year, it'll just be the calendar year, the previous calendar year. Have you seen an uptick in people's interests in that time? Definitely. I mean, we haven't had any trouble getting an application. And giving out the whole thing. And ACC is one of the few programs that actually have grants. And it's a very wonderful thing. It's exciting, yeah. It's exciting. And it's a very big boon for small businesses, especially the ones that are starting out or in the industry that you guys are promoting with technology. And like you said, it spans all kinds of industries now. The grant we have for R&D is the SBIR, the HSBR. So the state matches SBIR as a federal R&D grant program. It's a three-phase program. And the state provides a matching grant. So if you receive one of those grants that's been technically vetted, HTDC, you can apply for the grant and will match up to half the grant. So the phase one, I believe, is up to $150,000. So we'll match up to $75,000. And the phase two goes up to $1.5 million. It's around $1 million. And we'll match up to $500,000. So it's after the fact that they rewarded the federal funds? After the fact. So you've got to qualify. And it's a super competitive process. It is, yeah. We've had your clients that actually applied for it, phase two, up to phase two. I think Hawaii companies actually do relatively well, considering how competitive it is. And what industries would you say dominate for the SBIR grant? So all the agencies have to set aside the grant funding. But I think for Hawaii, it's a lot of defense. Because we have all the harbor. We have all the agencies here. And then also, so USDA. I think those are the two big ones, right? And that grant is, when is that application due? Or has it been set in advance? That one passed. So yes, I want to let you know the manufacturing assistance program grant and the SBIR grant. Both recently just closed. But I did want to mention a new program that is opening this Friday. Our applications are opening this Friday. It's the R&D state tax grant. The R&D state tax grant, R&D meaning Research and Development. And tell us a little bit about that, this new grant that's coming out and what that looks like. So this is similar to the SBIR, where it matches federal funding. So if you took advantage of the federal R&D tax credit, if you can show us the past three years of your federal R&D tax credit that you received, the state will match up to the average of those three past years in a state R&D tax grant. So it's like a bonus for these companies. Definitely, definitely. To help them take their technology. And is this the first year that you guys are doing this grant? This is the first year. But one qualifier is you can't apply. You can't have applied for the state R&D tax credit. OK. And if they did then they can't. Then you shouldn't apply. Or they're going to ask for your money back. Yeah, you don't want to give money back yet. Yeah, so that's one active grant you guys have right now. And hopefully next year you'll have the MAP grant again. And the MAP grant, we were just talking before that it's been going on for a few years, although it has to get renewed. And it is a process. I don't know if that's the next session. Yes. But our companies are awesome. They submit a testimony. They speak on their behalf for the grants. That's wonderful. Yeah. That's wonderful. The SBIR grant, I think we are the longest running, matching state grant in the country. Wow, that is amazing. Yeah, so it's a really great program. Yeah, it really is. It really goes to show that the state's initiative to really boost up technology and manufacturing. All these industries, to give them an advantage to keep up. Talking about the MAP grant, ACDC also has that manufacturer's extension program, which Wayne Inouye was to be here and talk a little bit about that. He declined my invitation. But maybe you can just let people know that there are resources for manufacturers out there through the MAP. So the MAP program, the partnership is held within HDDC. And we support manufacturing in Hawaii. And so we're able to reach out to the other 40 or so MAPs to bring in training to Hawaii. So we do all kinds of, like the FISMA, I think that's the biggest one. FISMA, could you explain one for us? No, I can't. OK, you don't have to. It's a thing about food safety. OK, whose side do you have? We'll bring in trainers for Hawaii manufacturers. And so Wayne and the MAP group will go out and talk to clients to see what kind of training that they need to stay up to date with their regulations. And they can bring in. And they can also help source equipment. They can reach out to this network and help source equipment. And we also have providers that we can help manage for the client. So say they want to overhaul their energy efficiency. We can help find them a vendor and we'll manage the project with them. Very cool. I'm going to take a short break and we'll be back in a minute. Thanks. Aloha and Mabuhay. My name is Amy Ortega Anderson, inviting you to join us every Tuesday here on Pinoy Power Hawaii. With Think Tech Hawaii, we come to your home at 12 noon every Tuesday. We invite you to listen, watch for our mission of empowerment. We aim to enrich, enlighten, educate, entertain, and we hope to empower. Again, maraming, salamat po, Mabuhay, and aloha. Aloha. I'm Gwen Harris, the host here at Think Tech Hawaii, a digital media company serving the people of Hawaii. We provide a video platform for citizen journalists to raise public awareness in Hawaii. We are a Hawaii nonprofit that depends on the generosity of the supporters to keep on going. We'd be grateful if you go to ThinkTechHawaii.com and make a donation to support us now. Thanks so much. Welcome back to Adventures of Small Business. My name is Dennis Kwok. I'm here with Cindy Matsuki from the ACDC. We're talking before we broke into commercial about the different kinds of programs you had. But I actually want to go back and talk a little bit more about the grant, the R&D tax credit grant. Maybe you can explain to the audience what R&D is. And a lot of people get kind of, you know, they get kind of, I guess, pretty much about that word. And does that apply to me, you know? So maybe you can explain how encompassing that industry is. So in regards to the federal R&D tax credit that you can receive as a company, they actually consider R&D, including manufacturing and product development. So if you're doing anything new, if you're exploring going into a new product or a new design of something or a new process and you're doing prototyping and testing, that could qualify for a R&D tax credit. You're talking about a new product for your company, but not a new product like you're developing a whole new product for the industry. No. Oh, okay. So if you do crackers and you want to go into Moji, that qualifies. Wow, very cool. So you're like testing equipment and you're seeing if it works and you're customer testing. You can qualify for the R&D tax credit. And that's because you got to apply for that tax credit at the end of the year. And then it's at the aftermath after you get that tax credit that you guys will do matching up with the future tax credit or up to? The average of the past three years. Average of the past three years, very cool. So I think that means that you have to have received it for the past three years at least. Okay, all right. And if you haven't then you got to look. But at least you can, right? Yeah, of course. And then for the next three years and if this program gets refunded. Yeah, okay. Well, there was also a few requirements for companies that are applying for the state grant. R&D tax grant. They have to have at least 15 employees who are residents of Hawaii. They have to be headquartered in Hawaii. And they have to have been doing business for five years or more. So 15 employees, they got to be based out of Hawaii and they got to have at least five years of tax. And there's a bunch of other requirements. Okay. Those are the big ones. Okay, very cool. And when is this application going to be, I mean, when does it do? When does it open? Is it open? It opens Friday. Oh, tomorrow. It opens tomorrow. So check out our site, www.hddc.org. We'll have the applications there. So that's www.hddc.org. Sorry. Opens tomorrow and they'll be due in two weeks. Okay. So you got to jump on it. All right, you got about 14 days to see. Cause you got a lot of paperwork to pull together. Okay, very cool. So that's a warning. Okay. And how do you, I mean, when you guys put out these grants, do you guys expect a certain, I mean, like, do you guys understand? Like, okay, we have these many businesses that fall into this demographic. I mean, are we, you know, what's the percentage of market share you guys capture? Or do you want to capture? How many companies do you want to take on? Is there like a threshold? No, I think the biggest thing is we want to be able to disperse all the funds. Okay. But we do look for it. So I know for the manufacturing assistance program and for the SBIR program, we give priority to first-time applicants. Okay. The new businesses to the program. Oh, so you can apply more than once. I mean, well, this is the first year you're doing it. This is the first year we're doing this one. So I'm not sure. Yeah. I mean, there's no priority because you haven't applied before. But for the other grants. Okay, for the other grants. But like for the math grant, you can apply every year. Oh wow, okay. But we will get priority to the new people. Okay. Okay. That's the point. And it's always exciting to see new companies apply, especially for SBIR too. Yeah, you gotta spread the wealth. Yes. For sure. But there are a set of companies that know about all these programs that know how to take advantage. Yeah. And they always come back. But they're also a big revenue generator. Yeah. And they have a big impact on the state. Right. And so. Yeah. So it's a win-win. Yeah, for sure. It's great that they take advantage of it. I was looking at your website earlier today and it says for every dollar that takes to run the program, there's like $14 in return of investment for the state. For the state. Which is a great return. Yeah, definitely. And do you see HDDC expanding or what else is gonna be in the fold for 2019, maybe 2020? I think we are in the process of rethinking what HDDC's mission is because one of the things we used to write, a lot of people used to know us for running the Mino Innovation Center. Sure. And last year, the university took control of the Mino Innovation Center. And so I think we're gonna rethink about how we can support businesses that are startups and tech startups through the Sandbox and through other outreach programs. Very cool. And so I mean, I think there's a lot of things happening. Push out the Sandbox. Yeah. One of the things I did wanna mention. Please. As part of the manufacturing program, Wayne is gonna bring in these robotic arms used for manufacturing. Wow. Like you know how you see those, how it's made, TV shows. Yeah, like a manufacturing line and then like the car, they're making cars and all these robot hands. Yes. Terminated too. No, not terminated, sorry, I'm just joking. Go on. Not that far. He's bringing in robot arms. Yeah. So we're gonna do some demos of the robot. Oh, okay, very cool. We're doing a demo specifically for some clients at first. And they're gonna show how the robot arms handle their product. Oh, wow. And what they can do with it. And that's gonna happen on the 22nd. So on the 22nd of May, we're gonna have our wetwear event at the Sandbox. Okay. Could you explain what the wetwear event is? Sure. Yeah, because you know, you speak very fast, so maybe let people know what wetwear is. For those that don't know. What we're Wednesday is a monthly networking event. Okay. It started off originally for software developers. Okay. And universities. So the goal was to bring professors and students and faculty together with industry to make sure that the university is providing what industry needs. And to also have students be aware of, you know, the kind of jobs, the kind of work that they could look forward to. It's a great resource too. Once they graduate. And it's just all about networking, right? Because even before you need to start networking, you should be networking. Like, as soon as you start college, you should be networking. Because you can't start after you graduate. Right. Yeah. And so that's the biggest thing. And I think this is our eighth year. Oh, wow. We're having wetwear Wednesdays. Wow. So it's usually sponsored by somebody that wants to support the tech industry. Very cool. Yeah. It's a networking event. It changes locations every month. OK. Usually it's a bar. It's free per boost. Usually it's a bar. No whole strings. Usually it's a bar. It was nightclubs before. Oh, wow. But there's not so many nightclubs anymore. Oh, no. Nobody really goes to nightclubs. I don't know. Why is that? I have no idea. I think that discussion is probably a- I've seen it already, but- Not appropriate for this one. But yeah. But this industry 4.0, collaborative robots, is happening on May 22nd. So anybody can show. So we're having our wetwear event, which is open to the public. OK. But it is focused on software division. OK. So on the 22nd, it's going to be at the sandbox. OK. So if you missed our event last night, which was our soft opening at the sandbox, we're going to do another one on May 22nd, which is the 4th Wednesday, I believe. And we're going to be showcasing the robot. Oh, that's cool. Yeah. So you can come check out the robots. The visuals will be just fun for a lot of people to check out. Yeah, it should be fun. And then the following day, Thursday, May 23rd, open to the public is workshops. So if you want to learn more about how you can potentially take advantage of the robots, then we'll have two workshops on the 23rd at the sandbox. Sure. 22nd and 23rd give you a great chance to actually meet with software developers, as well as check out some robots, and see the new facilities. Yes. Yeah. A lot of positive things there. Yeah. And so the 23rd, the workshops, we really want to reach out to companies that we don't necessarily know are out there. So that's one of the things, like we know who our clients are, but it's always exciting to see new clients come in. For sure. It's like, where do they come from? I mean, there's so many companies out there. Of course. So many small companies. There are. And do you guys have an approach to actively pursue companies that might need your services? Or is it just people find out about you and they just walk in? What is the process for you guys? Because there are a lot of smart people. That are trying to grow their business. Yeah. And a lot of times, they don't think the Hawaii's market for them or whatnot. They maybe go between the pastures or whatever. So I think in the fall, after we know what our funding was for our programs, we did a round of info sessions on all the islands, Oahu and the neighbor islands. And we do press releases. We try and get the word out as much as possible to invite all the companies that could possibly take advantage of our programs. Nice. Yeah. And you guys are very, very, you're not just here on Oahu, but you guys have facilities in Maui and the neighbor other. So we do have an incubator and co-works based on Maui at the Maui Research and Tech Center. And we also have consultants that help small businesses on Kaua'i and the Big Island. And they will plug people into our programs. That's awesome. And you know, just the close proximity of our programs that be about the Pacific and the ACC, it's been a real pleasure. And I know we share a lot of information together. We can feed each other clients. Feed each other clients. I steal your chocolates once in a while, but it's been fun. And I really want to thank you for coming on the show and talking about the wonderful things you guys are doing at the Hawaii Development Corporation. Yeah, no, I hope the show reaches far and wide. Yeah, and congratulations, once again, with the sandbox. And I hope that it's a very big success. You think you can buy a business? We will. We definitely will. Thank you for joining us at Adventures in Small Business. And thank you, Cindy, for coming. We'll see you next week.