Friday, April 12, 2013

Small Business Development Centers AB 837

The Small Business Development Centers are unquestionably the premier technical assistance provider for small businesses in California. Some statistics.

In 2012 SBDCs assisted small companies that created 6962 jobs

3855 jobs which were slated for elimination were saved attributed to assistance from SBDCs

929 new businesses were started with the help of SBDC

$285 million in new revenue was generated by SBDC clients

62000 small business owners sought out and chose California SBDC consultants and trainers. Over 50% of those served were woman,48% were minorities and 12% were veterans and service disabled veterans

Over 90% of those served would recommend the services to a colleague.

This without one dime of money from the state of California.

This is a travesty. Almost all the states in the country contribute to their SBDC program. What makes it even worse is that the SBA funds the California SBDCs on a matching basis and California SBDCs have had to return money to the SBA. That money goes to other States SBDC program.

To try and obtain money it has been recommended that first the California SBDC program be codified. AB 837 has been introduced by Assemblywoman Campos to do just that. The bill introduces accountability standards and reporting requirements if and when California appropriations are made to support the California SBDC.

According to the Fact sheet on the bill this bill would require the California SBDCState Chair[ an existing nonstate position], in any year that state appropriations are made to support the California SBDC ,to submit a report to the director of the Governors Office of Business and Economic Development, and to the legislature, with detailed information on the programs activities and performance.

AB 837 would create zero cost to the state. Any appropriations the California SBDC would be under a separate budgetary action.

Small Business California is sponsoring this bill along with the California Hispanic Chamber. We are in the process of getting associations and individuals to also support this. The NFIB is a supporter. Will you help us? Have you used an SBDC to help your business?

Scott Hauge


Small Business California

2311 Taraval Street

San Francisco, CA 94116


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