2007 Joint State
Biennial Budget Decision Package
Taking Care of
Business:
WSU’s
Small Business Development Centers
Expansion and Enhancement
A $707,000 state budget
request to expand small business counseling services with a first-time
legislative appropriation of critical core funding. The request establishes
three new offices in Southeastern Washington, Kelso-Longview and the
Aberdeen-Shelton Area . The core support will also add one position at each
of the existing centers operated by Highline Community College in Des Moines
and Olympic Community College in Bremerton. WSU Masters of Business
Administration internships with SBDC offices are also created.
Twenty-five SBDC offices operate in
Washington, either directly by WSU or under a WSU “sub-contract” with a
community college or economic development organization.
The federal Small Business Administration
matches funding from WSU and WSU subcontractors with federal dollars that
helps operate 23 of the 25 offices statewide. Fourteen of the contractors
are community and technical colleges.
Washington State’s SBDCs currently receive
no direct state legislative appropriations.
There are 63 Small Business
Development programs nationwide, including the one serving all of this state
through Washington State University. Fifty-eight of the 63 are receiving
direct state support, according to the Association of Small Business
Development Centers.
WSU client satisfaction
has been high. Ninety-eight percent regarded the counseling services at the
highest level, “good to very good.” A similar percentage said they would
recommend SBDC to others
Washington State University, as the prime
contractor for 25 Small Business Development Centers state-wide, is
requesting $707,000 to enhance the state’s SBDC system by:
1.
Establishing three new Small Business
Development Center offices operated directly by WSU ($463,800) that will
each serve 100 to 140 business owners and prospective business owners per
year. WSU exclusively
operates seven Small Business Development Centers staffed by faculty in the
College of Business. This proposal would expand WSU direct-managed offices
from seven to ten. These are at locations where there currently are no
centers, either operated by WSU, an economic development organization, or a
community college. Last year, 802 small businesses were helped by six WSU
SBDC counselors, which acquired $38.5 million in additional funding and
created 677 jobs. The proposed new centers will:
·
Serve Grays Harbor, Mason
and Pacific Counties, probably with an office Aberdeen-Hoquiam or
Shelton.
·
Serve Cowlitz, Wahkiakum
Counties in Kelso-Longview. This location has never had a SBDC.
·
Serve Whitman, Asotin, Garfield Counties.
Probably in Pullman or
Clarkston.
2.
Provide critical core operating funding
($200,000) to newer community college-operated centers in Des Moines and
Bremerton that have contractual relationships with WSU for some services.
All but these two newer centers in the state receive some federal matching
monies from the U.S. Small Business Administration. Because of limited
federal funding at the time they were created,
these two newer centers operate exclusively
with local funds under an agreement with WSU. WSU requests state funding
that will enable hiring a business counselor at the Des Moines office,
operated by Highline Community College. It will lead to a business counselor
for Bremerton’s office, operated by Olympic College.
·
Highline Community College
has offered the Des Moines SBDC training classes under a subcontract with
WSU for the past 12 years. It began offering limited SBDC one-on-one
counseling services without an appropriation in March of 2003. The counselor
was originally funded through a grant, and is currently made possible by
contributions from a number of partners in the Southwest King County
Economic Development Initiative (SKCEDI), as well as foundations and banks
who are approached yearly to cover a funding gap.
·
Olympic College,
in partnership with the city of Bremerton, and WSU Extension opened the
Kitsap Business Assistance Center (KBAC) in early 2004. Funding for a full
time counselor is provided by the KBAC partners. WSU’s requested funding
will now fund the counselor, allowing the college to use its local funds to
add a training officer or other essential staff to complete the SBDC center.
3.
Provide $43,200 funding for WSU College of
Business summer internships for students in a Masters of Business
Administration program.
Successful internships have been completed with SBDC, usually funded by
private sources. Internships provide valuable real-life experience to
students and leverage significant resources for SBDC clients. Five
internships will be made available in fall, 2007, with seven internships in
2008
More information is
available by contacting:
Larry Ganders, Assistant
to the WSU President
360-280-6320,
ganders@wsu.edu
Brett Rogers, State Director
Small Business
Development Centers
509-358-7767,
brogers@wsu.edu
