Description
This report focuses on the vital role that Americas entrepreneurs and small business owners play in strengthening the U.S. economy.
n
National Economic Council
MAY 2011
Introduction
ThisreportfocusesonthevitalrolethatAmerica’sentrepreneursandsmallbusinessowners
playinstrengtheningtheU.S.economy. TheObamaAdministrationhasputnewinitiativesand
increasedincentivesinplacetosupportsmallbusinesses–includingseventeentaxcuts,
improvedaccesstocapitalandexpandedsupportforhighgrowthbusinesses–astheycontinue
toout?compete,andout?innovatetherestoftheworld.
Overthepasttwoandahalfyears,PresidentObamahasenactedsweepingchangestosupport,
reinvest,andrevitalizeAmerica’seconomyinthewakeofamajorrecession. Asaresult,large
U.S.firmsarenowmakingpowerfulnewinvestments,includingbuildingnewfacilitiesand
buyingnewequipment.
Withregardstojobcreation,however,weknowthatAmerica’ssmallbusinessespackthe
biggestpunch,creatingtwooutofeverythreenewjobsintheU.S.eachyear. Thesesmall
businessesarethecornerstoneofourcommunities. Theyarethesourceofprideforworking
families. And,everyday,weseeAmerica’sentrepreneurscontinuetostepoutandtakerisks
withnewideasinordertohelpuswinthefuture.
ThisreportdetailsthemanyinvestmentsthisAdministrationhasmadesinceJanuary2009to
supportsmallbusinesses,investmentsthatinclude:expandingaccesstocapital,supporting
startupsandhigh?growthfirms,trainingAmerica’sworkforce,reducingbarriersto
entrepreneurship,increasingsmallbusinessexports,andmuchmore.
Onthatnote,wewouldliketothankthefollowingagenciesfortheircontributionsinpreparing
thisreport: theU.S.DepartmentofAgriculture,theU.S.DepartmentofCommerce,theU.S.
DepartmentofDefense,theU.S.DepartmentofHealthandHumanServices,theU.S.
DepartmentofHomelandSecurity,theU.S.DepartmentofLabor,theU.S.Departmentofthe
Treasury,theU.S.DepartmentofVeteransAffairs,theExport?ImportBankoftheUnitedStates,
theGeneralServicesAdministration,theNationalAeronauticsandSpaceAdministration,the
NationalScienceFoundation,andtheU.S.SmallBusinessAdministration.
Morethanever,weareallcommittedtosupportingentrepreneursandsmallbusinessesas
theycreatejobsandstrengthenAmerica’seconomyinthe21
st
century.
GeneB.Sperling KarenG.Mills
TheNationalEconomicCouncil U.S.SmallBusinessAdministration
TableofContents
ExecutiveSummary.........................................................................................................................1
I.SmallBusinessTaxBreaks............................................................................................................3
LegislationCommittedtoSupportingSmallBusinesses.............................................................3
SimplifyingTaxCredits................................................................................................................3
II.ImprovedAccesstoCapital.........................................................................................................6
EnhancedLendingPractices........................................................................................................6
SupportforUnderservedandDisasterAfflictedCommunities..................................................9
IncreasedCapitalforRuralBusinesses.....................................................................................12
NewandStrengthenedDevelopmentPrograms .....................................................................14
ListeningtoSmallBusinessesandBuildingonSuccess............................................................16
III.AugmentedFederalContractingOpportunities......................................................................19
PresidentialInteragencyTaskforceonFederalContractingOpportunitiesforSmallBusiness
andTheSmallBusinessJobsActof2010..................................................................................19
FederalContractingOpportunitiesforMinorities ...................................................................20
IncreasedFederalContractingDollars .....................................................................................22
MoreEfficientGovernmentContractingProcedures ..............................................................25
ContractingPartnershipsforSmallBusinesses ........................................................................26
MeetingNationalSecurityNeedsthroughSmallBusiness ......................................................27
IV.IncreasedU.S.ExportsthroughtheNationalExportInitiative...............................................33
TheNationalExportInitiativePromotesExportsbySmallBusinesses....................................33
ImprovingAdvocacyandTradePromotion..............................................................................33
HelpingMinority?OwnedFirmsExport ....................................................................................37
IncreasingAccesstoExportFinancing .....................................................................................38
JointEfforts...............................................................................................................................40
InternationalSmallBusinessCollaboration .............................................................................40
ReduceBarrierstoTrade..........................................................................................................41
RobustEnforcementofTradeRules ........................................................................................42
MacroeconomicSupportforExpandedExporting...................................................................43
V.EnhancedDevelopmentandEducationOpportunitiesforEntrepreneurs..............................44
DevelopmentProgramsforEntrepreneurs..............................................................................44
ProgramsforTraditionallyDisadvantagedGroups ..................................................................46
EnhancedRegionalEconomicCompetitiveness ......................................................................49
ImprovingAmerica’sEntrepreneurialInfrastructure...............................................................51
EducatingAmericanswith21stCenturySkillsandCreateaWorld?ClassWorkforce .............52
EducatingEntrepreneursandSmallBusinessesaboutSecurityConcerns ..............................53
VI.HeightenedInnovationandHighGrowthSupport..................................................................56
TheStartupAmericaInitiativetoSupportAmerica’sEntrepreneurs ......................................56
TheStartupAmericaPartnership .............................................................................................58
ToolsforSmallBusinesseswithHigh?GrowthPotential ..........................................................59
TheUSDAAgriculturalResearchService..................................................................................65
InvestmentsinBroadbandTechnologyforSmallBusinesses ..................................................68
TheManufacturingExtensionPartnership ..............................................................................71
EntrepreneurshipProgramsforVeterans ................................................................................71
ScienceandTechnologyDirectorate........................................................................................72
VII.StrengthenedSmallBusinessProtection................................................................................75
TheDodd?FrankWallStreetReportandConsumerProtectionAct ........................................75
CreditCardAccountability,Responsibility,andDisclosureAct ...............................................75
TheAffordableCareAct ...........................................................................................................75
ImprovingRegulationsforSmallBusinesses............................................................................76
VIII.Conclusion..............................................................................................................................78
ExecutiveSummary
SmallbusinessesaretheengineoftheAmericaneconomy,havingcreated64percentofnew
Americanprivatesectorjobsgeneratedinthepast15years—that’s40millionnetnewjobs
accordingtotheCouncilofEconomicAdvisers. Recognizingthiscriticalrolethatsmall
businessesplayintheU.S.economy,PresidentObamaiscommittedtoensuringthatsmall
businessescontinuetoreceivethetoolsandresourcestheyneedtoaddressthechallenges
theyface.Theseinitiativesoffersupporttosmallbusinessessotheyareabletobringthepower
oftheirideastothemarketplaceinwaysthatcancatalyzeandtransformoureconomy,
creatingjobsthroughnewinnovationsinproductsandservices.
SincetakingofficeinJanuary2009,PresidentObamahasmadeenormousstridesinsupporting
U.S.smallbusinesses. Goingforward,theAdministrationcontinuestochampionournation’s
vitalsmallbusinessresources.TheAdministrationcontinuestoemphasizeservingallU.S.small
businesseswhileplacingadditionalfocusonhistoricallyunderservedcommunitiesincluding,
minorities,women,veterans,andbusinessesineconomicallydisadvantagedareas.
SmallbusinessesencompassawideswathofAmerica—from“momandpop”MainStreet
storestoyounginnovatorsdreamingofthenextnewGoogle. Atthecoreofeverysmall
businessistheentrepreneur. Theseentrepreneursneedthetoolstomaketheirdreamscome
truefortheyarethesourceofAmerica’scompetitiveadvantage—toinspireandempoweran
evergreaterdiversityofcommunitiesandindividualstobuildgreatAmericancompanies.
Overthepasttwoandahalfyears,thePresidentandagenciesacrosstheExecutiveBranch
haveworkedtoimplementpoliciesandprogramstohelpsmallbusinessesbridgethecapital
andmarketgapandencouragedpublic?privatepartnershipstosupportworkforcere?training
andentrepreneurshipby:
? Supportingmorethan$53billioninSBAloanguaranteestomorethan113,000small
businesses;
? Awardingmorethan$221billioninFederalcontractstosmallbusinesses(FY2009
throughApril30,2011);
? Providingcounseling,throughSBAresourcepartnersandotheragencies,tomorethan2
millionentrepreneursandsmallbusinessowners;
? Awardingmorethan$4.5billioninresearchfundingthroughtheSmallBusiness
InnovationandResearchProgramduringFY2009andFY2010;and
? StreamliningFederalprogramstohelpsmallbusinessessuchastheDepartmentof
Defense’srecentannouncementtoreducethetimetopayitssmallbusinessvendors
1
from30daysto20days—whichwillimpactmorethan$60billionofgoodsandservices
itpurchasesfromsmallbusinesses.
TheAdministration’ssmallbusinessinitiativeshavebeenaccomplishedthroughthetireless
effortsoftheExecutiveAgenciesoftheExecutiveBranch,aswellasthroughanambitious
legislativeagenda.ThecapstoneofthiscontinuingsupportwastheSmallBusinessJobsActof
2010signedinSeptember2010,whichisthemostsignificantpieceoflegislationtohelpsmall
businessesinoveradecade.
Overthepasttwoandahalfyears,theAdministrationhasaccomplishedmuchinsupportof
smallbusinessesassetforthinthisreport,including:
I. ExpandedSmallBusinessTaxBreaks
II. ImprovedAccesstoCapital
III. AugmentedFederalContractingOpportunities
IV. IncreasedU.S.ExportsthroughtheNationalExportInitiative
V. EnhancedEntrepreneurialDevelopmentandEducationOpportunities
VI. HeightenedInnovationandHighGrowthsupport
VII. StrengthenedSmallBusinessProtection
Thisisthefirsttimeanadministrationhaspreparedacomprehensivereportthatcoverssmall
businesseffortsacrosstheFederalGovernment. Thisreportwaspreparedwithinputfromthe
followingagencies:theU.S.DepartmentofAgriculture,theU.S.DepartmentofCommerce,the
U.S.DepartmentofDefense,theU.S.DepartmentofHealthandHumanServices,theU.S.
DepartmentofHomelandSecurity,theU.S.DepartmentofLabor,theU.S.Departmentofthe
Treasury,theU.S.DepartmentofVeteransAffairs,theExport?ImportBankoftheUnitedStates,
theGeneralServicesAdministration,theNationalAeronauticsandSpaceAdministration,the
NationalScienceFoundation,andtheSmallBusinessAdministration.
2
I.SmallBusinessTaxBreaks
LegislationCommittedtoSupportingSmallBusinesses.TheAdministrationiscommittedto
providingsmallbusinesseskeysupportthroughaseriesoftaxbreaksthatcombineincreased
capital,aswellasprovidingkeyincentivesforsmallbusinessinvestmentandgrowth.Todate,
theAdministrationhassupported17directtaxbreaksthatsupportsmallbusinessgrowth.For
furtherinformationontaxbreaksforsmallbusinesses,pleasevisitwww.sba.gov/content/fact?
sheet?tax?breaks?small?businesses.
? FromtheAmericanRecovery&ReinvestmentAct(ARRA)Act,theHiringIncentivesto
RestoreEmployment(HIRE)Acts,andtheAffordableCareAct:
1. ANewSmallBusinessHealthcareTaxCredit.StartingretroactivelytoJanuary1,2010,a
newsmallbusinesshealthcaretaxcreditisineffectthatcoversupto35percentof
healthcarepremiums,withthetoprateincreasingto50percentin2014.TheIRShas
notifiedover4millionsmallbusinesses
About 4millionsmallbusinesses couldbe
eligiblefor new healthcare taxcredits if
they provide healthinsurance. This
includes Niedlov’s Breadworks in
Chattanooga,Tenn. Niedlov’sowners,
JohnandAngelaSweethavealways
wantedtoprovidehealth insuranceto
theiremployees. “It’s something that I
feelwouldmakeus a betteremployer
andamorecompletebusiness,”John
said. When Congresspassedthe
AffordableCareAct,John tookalook at
hisoptions andstudiedthenewtax
credits.Hedecidedthatnow wasthe
timetoprovidehealth insurancetohis
full?timeemployees.“It won’tbe cost
free,butit won’tcosttoomuch,”John
said,addingthatevenif it’s onlyfor a
handfulof people,it’s importantthat, as
asmallbusinessowner,he’s ableto
providebenefitsforhisemployees.
couldbeeligibleforthistaxcredit,andsmall
businessownerscannowfindinformation
onhowtoapplyforataxcreditonthe
DepartmentofHealthandHumanServices’
(HSS)website;availablehere:
http://www.healthcare.gov/foryou/small/i
ndex.html.Altogether,theAffordableCare
Actinvests$40billionoverthenextdecade
intaxcreditsthatenablesmallbusinessesto
invest,compete,andhiremoreworkers.
2. ANewTaxCreditforHiringUnemployed
Workers.Thiscreditcouldprovideupto
$10.4billionintaxreliefforbusinessesthat
hiredrecentlyunemployedworkersby
providingataxcreditequalto$1,000for
eacheligibleemployeethrough2010who
wasretainedformorethanoneyear.
3. BonusDepreciationTaxIncentivestoSupportNewInvestment.In2008and2009,
smallbusinesseswereabletorecoverthecostsofcapitalexpendituresfasterthanthe
ordinaryschedule,bydepreciating50percentofthecostinthefirstyear.
4. 75percentExclusionofSmallBusinessCapitalGains.UndertheRecoveryAct,75
percentofcapitalgainsfromcertainsmallbusinessstock(upfrom50percent) canbe
3
excludedfromtaxesifthestockisacquiredafterFebruary17,2009andbeforeJanuary
2011,andheldformorethanfiveyears.
5. ExpansionofLimitsonSmallBusinessExpensing.TheSection179deductionenables
smallbusinessestodeductupto$250,000ofthecostofmachinery,equipment,
vehicles,furnitureandotherqualifyingpropertyplacedinserviceduring2009. Thelimit
wouldhavebeen$133,000withouttheextensionintheARRA.
6. Five?YearCarrybackofNetOperatingLosses.Smallbusinesseswithdeductions
exceedingtheirincomein2008wereabletouseanewnetoperatinglosstaxprovision
togetarefundoftaxespaidinprioryears.Thisprovisionenablessmallbusinesseswith
anetoperatingloss(NOL)in2008toelecttooffsetthislossagainstincomeearnedinup
tofiveprioryears.Typically,anNOLcanbecarriedbackforonlytwoyears.
7. ReductionoftheBuilt?InGainsHoldingPeriodforSmallBusinessesfrom10to7to
AllowSmallBusinessGreaterFlexibilityinTheirInvestments.
8. TemporarySmallBusinessEstimatedTaxPaymentRelieftoAllowSmall
BusinessestoKeepNeededCashonHand.
? FromtheSmallBusinessJobsAct:
9. ZeroTaxesonCapitalGainsfromKeySmallBusinessInvestments.UndertheRecovery
Act,75percentofcapitalgainsfromcertainsmallbusinessinvestmentswereexcluded
fromtaxesin2009and2010.TheJobsActtemporarilyeliminatedthesetaxes
altogetherin2010,providinganimmediateincentiveforincreasedinvestmentsinsmall
businesses.
10.TheHighestSmallBusinessExpensingLimitEver–Upto$500,000.Buildingon
provisionsintheRecoveryActandHIREAct,theSmallBusinessJobsActincreasedthe
amountofinvestmentssmallbusinessescouldimmediatelywriteoffin2010and2011
to$500,000forqualifyinginvestmentsandraisedthetotalphaseoutlimitto$2million,
providinganimmediatetaxincentiveforthemtoexpandandcreatenewjobs.
11.AnExtensionof50%BonusDepreciation.TheJobsActextended,asthePresident
proposedinhisFY2011Budget,a50percent“bonusdepreciation”provisionthat
encouragesbusinessestoinvestinplantsandequipmentbyacceleratingtherateat
whichtheycandeductcapitalexpenditures.
12.ANewDeductionforHealthcareExpensesfortheSelf?Employed.Buildingonthe
AffordableCareAct,thejobsbillallowsself?employedentrepreneurstodeductthecost
ofhealthinsurancein2010forthemselvesandtheirfamilymembersincalculatingtheir
4
self?employmenttaxes,providingasignificanttaxcutthisyearforentrepreneurs
purchasinghealthinsuranceforthemselvesandtheirfamilies.
13.TaxReliefandSimplificationforCellPhoneDeductions.TheSmallBusinessJobsAct
changedtaxrulestosimplifydeductionsforbusinesscellphones—makingiteasierfor
smallbusinessownerstoreceivedeductionsthattheyareentitledtowithout
burdensomedocumentation.
14.AnIncreaseintheDeductionforEntrepreneurs’Start?UpExpenses.TheSmallBusiness
JobsActtemporarilyincreasedtheamountofstart?upexpendituresentrepreneurscan
deductfromtheirtaxesfrom$5,000to$10,000,offeringanimmediateincentivefor
aspiringentrepreneurstoinvestinstartingupanewsmallbusiness.
15.AFive?YearCarrybackofGeneralBusinessCredits.BuildingontemporaryRecoveryAct
measures,theSmallBusinessJobsActallowedcertainsmallbusinessesto“carryback”
theirgeneralbusinesscreditstooffsetfiveyearsoftaxes—providingthemwithan
instanttaxbreak—whilealsoallowingthesecreditstooffsettheAlternativeMinimum
Tax,reducingtaxesforthesesmallbusinesses.
16.LimitationsonPenaltiesforErrorsinTaxReportingThatDisproportionatelyAffect
SmallBusiness.Thebillchanged,beginningin2010,thepenaltyforfailingtoreport
certaintaxtransactionsfromafixeddollaramount—whichwascriticizedforimposinga
disproportionatelylargepenaltyonsmallbusinessesincertaincircumstances—toa
percentageofthetaxbenefitsfromthetransaction.
? AndfromtheTaxRelief,UnemploymentInsuranceReauthorizationandJobCreationAct:
17.100PercentExpensing.TheagreementincludesthePresident’sproposal—made
effectiveSeptember8,2010—totemporarilyallowbusinessestoexpense100percent
oftheirinvestmentsinthelastquarterof2010andinallof2011,potentiallygenerating
morethan$50billioninadditionalinvestmentin2011,whichwillfueljobcreation.
SimplifyingTaxCredits.TheTreasuryDepartmentisworkingonasetofregulatoryreformsto
theexistingNewMarketsTaxCredit,whichtheAdministrationisproposingtoexpandfrom
$3.5billionfor2011to$5billionfor2012initsFY2012Budgetproposal.Thesereformswill
makeiteasierforcommunitydevelopmententitiestoattractprivatesectorfundsfor
investmentinstartupsandsmallbusinessesoperatinginlower?incomecommunities.The
reforms,whichareexpectedtogointoeffectlaterthisyear,willrelaxthereinvestment
requirementsforcommunitydevelopmententitiesinvestingincertainoperatingbusinesses.
5
II.ImprovedAccesstoCapital
EnhancedLendingPractices.America’spreeminenceingeneratinginnovativenewcompanies
dependsonopenandwell?functioningcreditandcapitalmarkets.Duringthefinancialcrisisand
recessionaccesstocapitaldriedup,particularlyforsmallfirms.Asoureconomyrecovers,some
smallbusinesseshavecontinuedtostruggletoaccesscapitaltomaintainoperationsorgrow.
TheAdministrationhasbeenfocusedonaddressingtheseshortfallsandbarrierssincetaking
office.Throughnewlegislationandinitiatives,theObamaAdministrationhasachieved
enhancedlendingpracticesforsmallbusinesses.Now,agenciesandprivatelenderscanmeet
smallbusinesses’needsbetterthanever,withimprovedloanturnaroundtimes,morepointsof
access,increasedloanvolumes,andincreasedloansizes.
? SignificantlyIncreasedSmallBusiness
TotalNumberofSBALoansMadetoMore
Administration(SBA)SmallBusinessLoan
than113,000SmallBusinesses
Volumes.
FromJanuary2009toApril2011,SBAhas
– RecoveryActLoans. TheRecoveryAct
supportedmorethan$55.6billioninlendingto
morethan113,000smallbusinesses,including
implementedreducedfeesforSBA’stwo
morethan$42billioninloanswithreduced
largestloanprograms,7(a)and504,and
feesandhigherguaranteesmadepossible
alsoraisedtheguaranteesonSBA’s7(a)
throughtheAmericanRecovery&
loanprogram.Theseloanenhancements ReinvestmentActandtheSmallBusinessJobs
engineeredasignificantturnaroundin
Act.
SBAlendingatacriticaltime.Asof
September30,2010SBAapproved$22.6billioninRecoveryActloanguarantees,which
supported$30.4billioninlendingtosmallbusinesses.FromFebruary17,2009to
September30,2010,weeklySBAloandollarvolumesrosemorethan90percentinthe
7(a)and504programs,comparedtotheweeksprecedingARRA’spassage. Overall,
morethan70,000smallbusinessesreceivedSBAloanswithRecoveryAct
enhancements.
– SmallBusinessJobsAct.FollowingthepassageoftheSmallBusinessJobsActof2010in
September,whichextended7(a)and504loanenhancements,weeklyloanvolumesrose
andreachedahighofapproximately$2.2billion.Thisrepresentsthehighestweekly
lendinglevelsincetheSBAbegantrackingweeklyloanvolumes. AsofDecember31,
2010SBAapprovedmorethan$10billioninJobsActloanguarantees,whichsupported
morethan$12billioninlendingtosmallbusinesses.SinceenactmentoftheJobsAct,
SBA7(a)and504programshaveassistedmorethan19,000smallbusinessesinFY2011.
– LoanstoMinorities,Veterans,andWomen.FromJanuary2009toApril2011,SBAhas
supportedapproximately28,000minority?ownedbusinesseswithmorethan$10.33
billioninlendingsupport,approximately10,000veteran?ownedbusinesseswithalmost
6
? Increased P
outreach to
partners acr
SBAhas hel
whichsmall
programs. I
financialins
percent incr
nearly1,30
SBAloan si
? Expanded S
fulfilledthe
increaseSB
smallbusin
expandand
maximum7
from$2 mil
manufactur
$50,000. Th
million. Int
over $2.6 bi
? Support for
into law ak
occupied co
RefinanceP
mortgagep
notreset th
face balloo
currentlyb
upto $15 bi
years. Allow
mortgager
businesses
open andsa
? ProvideSm
Credit. Inhi
proposes $
$15 billioni
$2.5billioninlendingsupport,andapproximately25,000women?ownedbusinesses
withmorethan$5.76billioninlendingsupport.
ointsofAccess.CentraltotheturnaroundinSBAlendinghasbeenincreased
,andparticipationby,lending
osstheUnitedStates. Asaresult,
In2002,RobHatchandhiswifeTara
pedincreasethepointsthrough foundedAnemometrySpecialistsin
businessescanaccessSBAloan Alta,Iowa,whichprovideswind
nFY2010,morethan3,000
resourcesassessmentforwindfarms.
Manylendershadnotyetrealizedthe
titutionsmadea7(a)loan,a27
economicpotentialofwindenergyin
easesinceFY2008,including
Iowa,soRobandTarafinancedthe
0lendersthathadnotmadean
companyontheircreditcards. In
nceFY2007.
2009a$70,000SBAloanmade
possiblebytheRecoveryActhelped
BALoanSizes.TheJobsAct
RobandTaracontinuetoexpandthe
President’spledgetopermanently
company.Theyexpecttheexpansion
Aloanlimits,helpingensurethat
toaddanadditionalfivejobsin2011.
essesthatareinapositionto
createjobshaveaccesstothecapitaltheyneed.TheJobsActincreasedthe
(a)loansizefrom$2millionto$5million,increasedthemaximum504loansize
lionto$5millionforregularprojectsandfrom$4millionto$5.5millionfor
ingprojects,andincreasedthemaximumMicroloansizefrom$35,000to
eJobsActalsotemporarilyincreasedworkingcapitalloansfrom$350,000to$1
hefirstthreemonths,theseexpansionssupportedover1,200loanstotaling
llioninloansthatpreviouslywouldn’thavebeenawarded.
SmallBusinessCommercialRealEstate. ThePresidentcalledforandsigned
eyprogramthatwillhelpsmallbusinessownersrefinancetheirexistingowner?
mmercialrealestateloansthroughSBA?guaranteedprograms(the504
rogram). Thisprogramwillhelpsmallbusinessownerswhoarecurrentontheir
aymentsbutwhosebanksmight
InCleveland,Ohio,MiceliDairy
etermsoftheirloansandwhothus
Productsplanstobreakgroundona
npayments.Thisprogramis
$16millionto$20millionexpansion
eingimplementedandwillprovide
ofitsoperationthatwilladd60
llioninlendingsupportovertwo
workerstoits138?employeework
ingaccesstoSBAguaranteed forcewithinfiveyears.
efinancingoptionswillhelp
Thoseplansbecamearealitywhen
avoidforeclosure,keeptheirdoors
thecompanywasapprovedfora
vehundredsofthousandsofjobs.
$5.49million504loan. Theloanis
oneofthelargestintheprogram's
allBusinesseswithAccessto history,andwasmadepossibleby
sFY2012budget,thePresident
newprovisionsintheSmallBusiness
JobsAct.
165milliontosupportmorethan
nadditional7(a)loanguarantees
7
thatwillhelpsmallbusinessesoperateandexpandinthecomingyear. ThePresident’s
Budgetalsosupportsmeasurestostrengthenfinancingprogramsforsmallbusinessowner?
occupiedcommercialrealestateandequipmentthroughCertifiedDevelopment
Companies;leveragesearly?stagemezzanineinvestmentfinancingthroughSmallBusiness
InvestmentCompanies;andprovidesMicroloanfundingtoemergingentrepreneurs
throughnon?profitintermediaries.
? ExportImportBankoftheUnitedStates(Ex?Im).Followingthecreditcrisisof2008,
substantialsegmentsofthesmallbusinessexportsectorwereabandonedbytheprivate
sector.Chiefcausescouldbefoundintheretreatfromtradecreditinsurancebymajor
insurers,therisingoperatingcostoflendingforbanks,andtheprospectsofhighercredit
losses.Inresponse,Ex?Imhascreatedanewprogramforthesmallbusinessexporter.
? Reinsurance.During2010,Ex?Im
negotiateda$75million
PlansonInternational(NewGloucester,ME)isa
reinsuranceagreementwitha woman?ownedsmallbusinessthatexportsDell
majorinsurerwhohad computers,software,andaccessoriesto
increasedtheminimumsizeof
developingcountriesunderUN,USAID,andNGO
contracts,specificallyforaid,humanitarianand
allowabletransactionsand
developmentprojects.Thecompanyusesa$1.5
exitedseveralforeignmarkets.
millionworkingcapitalguaranteedlineofcredit
Ex?Imisnegotiatingreinsurance
withBankofAmerica.
dealswiththreeadditional
insurerstomakesurethat
Plansonreceiveda$3millioncontractwiththe
futuremarketvolatilitydoesnot
UNDevelopmentProgramandSudantosupply
leaveU.Ssmallbusinesses
equipmentfortheJanuary2011referendum.
withoutcoverage.
However,astheexportsweredestinedfor
Sudan,Ex?ImBankwasprohibitedfromproviding
? CreatingaNewSmallBusinessLending
itsguaranteeforthefinancingduetosanctions
underSection908oftheTradeSanctionsReform
Fund(SBLF)toSupportCommunity
andExportEnhancementAct.Ex?ImBankstaff
BanksLendingtoSmallBusinesses.
workedwiththeStateDepartmentandtheWhite
ThePresidentrequestedanewSmall
HouseinobtainingaPresidentialWaiver,signed
BusinessLendingFundthatwas
byPresidentObamaonNovember19,2010,
enactedintheSmallBusinessJobsAct.
whichpermittedthetransactiontogoforward.
Thiscreateda$30billioninitiativethat
encourageslendingtosmallbusinesses
byprovidinglowcostcapitaltoqualifiedcommunitybankswithassetsoflessthan$10
billion.ThroughtheSBLF,communitybanksandsmallbusinessescanworktogethertohelp
createjobsandpromoteeconomicgrowthinlocalcommunitiesacrossthenation.The
programprovidescommunitybankswithanincentivetoexpandloanstosmallbusinesses.
Thelargestincentiveswillgotobanksthatdothemosttoincreasetheirlending—
rewardingperformance,notpromises.Treasuryrecentlybeganacceptingapplications,and
allSBLFinvestmentswillbecompletedbySeptember27,2011.Todate,Treasuryhas
receivedapplicationsfromover250institutionstotalingmorethan$6billioninfunds
8
requested.Treasuryexpectstocompleteinitialfundingundertheprograminthefirst
quarterofFY2012,andwillcontinuethereaftertofundinstitutionsonarollingbasis.
? StateSmallBusinessCreditInitiative(SSBCI). TheSSBCI,whichwasfundedwith$1.5
billionfromtheJobsAct,willsupportlendingtosmallbusinessesandsmallmanufacturers.
SSBCIisexpectedtohelpspuratleast$15billioninlendingtosmallbusinesses. Under
SSBCI,participatingstateswillusetheFederalfundsforprogramsthatleverageprivate
lendingtohelpfinancesmallbusinessesandmanufacturersthatarecreditworthy,butare
notgettingtheloanstheyneedtoexpandandcreatejobs. SSBCIwillallowstatestobuild
onsuccessfulmodelsforstatesmallbusinessprograms,includingcollateralsupport
programs,CapitalAccessPrograms(CAPs),loanparticipationprograms,loanguarantee
programs,andotherinnovativeprograms,suchasstate?sponsoredventurecapital
programs. ExistingandnewstateprogramsareeligibleforsupportundertheSSBCI.States
arecurrentlyapplyingforprogramfunds.TodatetheSSBCIhasapprovedallocationsto
NorthCarolina($46million),Michigan($79million),California($169million),Connecticut
($133million),Missouri($269million)andVermont($132million).Pleasevisit
www.treasury.gov/resource?center/sb?programs/Pages/ssbci.aspxformoreinformation.
SupportforUnderservedandDisaster?AfflictedCommunities.TheAdministrationis
committedtodevelopingeconomiesandspurringentrepreneursinallregionsacrosstheU.S.—
throughthegoodtimesandthebad.Theseprogramsaredesignedtoaidthoseregionsthat
needitmost.
? CommunityDevelopmentCapitalInitiative(CDCI). Treasury’sOfficeofFinancialStability
launchedCDCItoprovidelow?costcapitaltodepositoryCommunityDevelopmentFinancial
Institutions(CDFIs),includingbanks,thrifts,andcreditunions. CDFIsareanimportant
sourceofcreditforsmallbusinessesinunderservedcommunities. Theprogramwas
designedtorecognizeCDFIs’unique,mission?orientedfocusandtheirsuccessinreaching
underservedcommunities. CDCIinvestmentsweremadeatadividendrateof2percent.To
encouragerepayment,whilerecognizingtheuniquecircumstancesfacingCDFIs,the
dividendrateunderCDCIislowinitiallyandwillgraduallyincreaseto9percentaftereight
years. CDCIcompletedfundingonSeptember30,2010. $570millionwasdisbursedto84
financialinstitutionsin26states,theDistrictofColumbia,andGuam.
? CommunityDevelopmentFinancialInstitutions(CDFI)Fund. Throughmonetaryawards
andtheallocationoftaxcredits,theCDFIFundhelpspromoteaccesstocapitalandlocal
economicgrowthinurbanandrurallow?incomecommunitiesacrossthenation. Through
itsvariousprograms,theCDFIFundenableslocally?basedorganizationstofurthergoals
suchas:economicdevelopment(jobcreation,businessdevelopment,andcommercialreal
estatedevelopment);affordablehousing(housingdevelopmentandhomeownership);and
communitydevelopmentfinancialservices(provisionofbasicbankingservicesto
underservedcommunitiesandfinancialliteracytraining). InFY2010,theAdministration
requestedandsecuredenactmentofanincreaseinthebudgetoftheCDFIFundto
9
$246,750,000from$107milliontheprioryear. ManyoftheCDFIsareproviding
microenterpriseloans,smallbusinessloansandloanstonon?profitsworkinginsomeofthe
country'smostdistressedcommunities. Additionally,theCDFIFundmodifieditsapplication
andcompliancerequirementsundertheNewMarketsTaxCreditProgramtoencourage
moreinvestmentsofequityinbusinesses. Furthermore,throughthenewSBACommunity
Advantageprogram,CDFI’sarenowabletolendtosmallbusinessesthroughSBA’s7(a)
program.
? SupportforCapitalDirectlytoUnderservedCommunities.SBAiscommittedtoexpanding
accesstocapitalforsmallbusinessesandentrepreneursinunderservedcommunitiesso
thatitcandriveeconomicgrowthandjobcreation.SBAloansarethree?to?fivetimesmore
likelythanconventional,non?guaranteed,smallbusinessloanstogotowomen? and
minority?ownedsmallbusinesses,accordingtotheUrbanInstitute.Recentstudieshavealso
demonstratedthatsmallloanamountsareparticularlyimportanttothesebusinesses.
Moreover,underservedcommunitieshavebeenhitdisproportionatelyhardbythe
recession.InadditiontoSBA’salreadyexistingloanprograms,SBAaddedtwonew
initiativesthatareaimedatincreasingaccesstocapitalforbusinessesinthese
communities.TheUrbanInstitutereportisavailableat:
http://www.urban.org/UploadedPDF/411596_504_gap_analysis.pdf.
? SmallLoanAdvantage. SmallLoanAdvantageoffersmorethan600PreferredLenders,
includingmanyofthenation’slargestlenders,theopportunitytoput7(a)loansof
$250,000andlowerintothehandsofsmallbusinessesandentrepreneursthrougha
streamlinedapplicationprocess,whilealsohavingtheregular7(a)Government
guaranteeofupto85percent.Thiswillencourageincreasedavailabilityofvitalsmaller
dollarloansforsmallbusinessesinunderservedcommunities.
? CommunityAdvantage. WiththeCommunityAdvantagepilot,theagencywillexpand
thepointsofaccesssmallbusinessownershaveforgettingloansbyopeningthis
portionofSBA’s7(a)loanprogramto“mission?focused”financialinstitutions,including
CommunityDevelopmentFinancialInstitutions,CertifiedDevelopmentCompaniesand
non?profitmicrolendingintermediariesforsmalldollarloans.Thepilotoffersthesame
streamlinedapplicationprocessandregular7(a)guaranteesasSmallLoanAdvantage
andincreasesthenumberofavailableSBAguaranteedlendersfocusedonserving
entrepreneursinunderservedcommunities.
? SBACouncilonUnderservedCommunities.Theagency’snewAdvisoryCouncilon
UnderservedCommunities,establishedinDecember2010,consistsof20membersfrom
acrossthecountry.MemberswillprovideacriticallinkbetweenSBAandsmallbusinessesin
traditionallyunderservedcommunities.Memberswillreflectavarietyofkeysectors,
includingbusinessowners,bankingandfinance,communitydevelopment,nonprofitand
academia.
10
? SmallBusinessDataCollectionInitiative.Limitedcollectionoftimely,relevantdataon
smallbusinesslendinghasmadeitdifficulttoisolatetherecession’simpactonsmall
businessaccesstocreditandhasmadeitmorechallengingtodevelopsolutionstoaddress
problemsthatarise.AsaresulttheSBAhastakenatwoprongedapproachtoSmall
BusinessDataCollection:
? ImprovedDataAdvocacy.TheSBAhascontinuallyadvocatedforaugmenteddata
collectionpractices,muchofwhichhasbeenreflectedintheDodd?FrankBill.
? DataAnalysis.TheSBAcontinuallyaggregatesandanalyzesallavailablethird?party
smallbusinessdatatobestunderstandthemarketandkeyeffects.
? NationalAdvisoryCouncilforMinorityBusinessEnterprises.OnNovember3,2010,U.S.
SecretaryofCommerceGaryLockeannouncedthemembersoftheNationalAdvisory
CouncilforMinorityBusinessEnterprises(NACMBE). ThisisthefirstSecretarial?level
advisorycouncilforminority?ownedbusinessesinnearly40years. TheAdvisoryCouncilwill
provideadviceandrecommendationstotheCommerceSecretaryonabroadrangeof
policyissuesaffectingtheminoritybusinesscommunityaspartoftheObama
Administration’sfocusoncreatingnewjobsandstrengtheningtheU.S.economy. The
MinorityBusinessDevelopmentAgency(MBDA)hostedtheinauguralmeetingofthe
NACMBEonMarch11,2011.
? CapitalSupportforSmallBusinessinDeclaredDisasters.SBAprovidesdirectlending
supportinFederallydeclareddisastersintheformofEconomicInjuryDisasterLoansand
thedefermentofexistingloanbalances.AsofApril30,2011,forFY2010andFY2011there
hadbeen442declareddisastersandtheSBAhadprovided$274,323,100insupportto
2,808smallbusinesses.USDARuralDevelopment’sBusinessandIndustry(B&I)Guaranteed
LendingProgramprovided$57millioninlendingsupportforbusinesseslocatedindeclared
disasterareasinFY2010.
? SupportduringtheDeepwaterHorizonInitiativeontheBP/GulfCoastOilSpill.Following
theeconomicdevastationoftheBP/GulfCoastoilspill,numerousFederalagencies
leveragedtheirresourcetosupportsmallbusinesses.
? EconomicSolutionsTeam(EST).TheEconomicSolutionsTeam,coordinatedbyEDAled
over20assessmentteamsthroughtheaffectedregiontoidentifykeyissues.
Furthermore,SBAchairedthesmallbusinessworkinggroupoftheEST,whichprovided
keyshort?termandlong?termrecommendationsforsupport,whichultimatelyincluded
theroll?outofaFederalresourceroadshowthroughouttheregion
? MBDA.ThecommunitiesservedbytheMBDAweredisproportionatelyaffectedbythe
catastrophicGulfCoastoilspill. MBDAprovidedAfrican?American,Cambodian,
Hispanic,andVietnamesefishermenandshrimperswithtechnicalassistancein
11
rebuildingtheirbusinesses. MBDABusinessCenterslocatedintheGulfCoastregion
(Alabama,LouisianaandMississippi)successfullyhostedmultipletownhallslistening
sessionsthroughoutLouisianaandMississippi,engagedvariouschambersofcommerce
(African?American,AsianandHispanic),tradeassociations,andcommunityleadersin
additiontoprovidingbusinessdevelopmenttraininginanefforttosupporttheminority
businesses,entrepreneursandcommunitiesinallaspectsoftheirrecovery.
? DOCInitiativeonHaitiReconstruction.Sincethefirstmomentsofthedisaster,MBDAhas
assistedtheObamaAdministrationinrallyinginternationalsupportforHaiti’srecovery,
specificallywithtargetedoutreachtotheHaitiandiasporaandotherminority
entrepreneursandbusinessesthatcouldassistwiththemedium? tolong?term
reconstructioneffortsinHaiti.
? MBDAStrategy.InPartnershipwiththeDepartmentofState,MBDAdevelopedatrade
andinvestmentinitiativedesignedtosupporttherebuildingoftheHaitiansmall? and
medium?sizedbusinesscommunitywhilepromotingthecompetivenessofU.S.firmsin
Haitireconstructioninitiatives.
IncreasedCapitalforRuralBusinesses.TheObamaAdministrationiscommittedtorevitalizing
growthacrossallsectorsofAmerica.ThisincludesAmerica’sfarmersandranchers,a
nationwidenetworkofentrepreneursandavitalpartofthenationaleconomy.
? SmallBusinessAssistancetoFarmers. TheRecoveryActprovidedimmediateassistanceto
2,875producerswhoneededloansbutwereunabletoobtaincommercialcreditfrom
conventionallenders,includingmorethan600sociallydisadvantagedproducersandalmost
1,200beginningproducers.Theseloanswereusedtopurchaseland,livestock,equipment,
feed,seed,andsupplies,ortoconstructbuildingsormakefarmimprovements,allofwhich
spurgrowthinruralcommunities. Intotal,theDepartmentofAgriculture’sFarmService
Agency(FSA)issuednearly37,000loansinFY2010,providingmorethan$5billionin
assistance,including$2.2billionto20,000beginningorsocially?disadvantagedproducers
combined. TheRecoveryActalsoprovided$800milliontofarmersandrancherswhose
operationswereatriskduetolost
cropsasaresultofnaturaldisaster.
InLouisiana,a$2.5millionB&Iloanwasusedto
Inaddition,thesafetynetprovided restructureexistingdebt,purchaseequipment,and
provideworkingcapitalforasausageandfood
byFSAofferedfarmersarangeof
productscompany.
toolstohelpthemweather
unforeseenperiodsoffinancial
B&Iguaranteedloanfundshelptocreate42jobsand
difficulty,suchasafixedbaseof
save75jobs,andexpandedthisbusiness’marketfor
minimumfinancialassistancefor linkCajunsausage,dressingmix,roux,andotherCajun
cultureproductstoanationalmarket.
incomecertainty,emergencyand
disasterpayments,stabilization
assistanceduringseasonalcashflowslumps,andpaymentstotransitiontonewtypesof
cropsorreservelandforconservationpurposes. Morethan$11billionwasinvestedinFY
12
2010toprovideasafetynetforthiscriticalsmallbusinesssectorthatservesAmerican
households.
? TheDepartmentofAgriculture’s USDAprovidedAREAPloanguaranteetoacompanygrowing
RuralBusinessService(RBS). RBS
tomatoesyear?roundina25acregreenhouseinMaine. The
farmusesthermalblanketstoreduceheatlossduring
programsdirectlysupportthe
Maine’scoldwinters. USDAfundingassistedwiththe
financingofruralbusinesses,
purchaseofa6Megawattbiomassboilersystemthatreplace
creatingsustainablejobsand
90percentofthefossilfuelusedwiththeoldboilersystem.
advancingeconomicdevelopment Thecompanyalsowasabletoexpanditspermanentwork
forcefrom95to225jobs.
throughoutruralAmerica. USDA’s
BusinessandIndustryGuaranteed
InNorthPlatte,Nebraska,Gary’sSuperFoodswantedto
LendingProgramimprovesaccess
operateanewgrocerystorewithgreaterenergyefficiency.
tocapitalforAmerica’srural
WiththeREAPloanguarantee,RuralDevelopmentwasable
businessesthroughproviding toofferthelenderan85percentguaranteeon50percentof
lendingsupportinpartnership
thetotalprojectcostsaswellasa25percentgrant.Today,a
heatreclaimsystemcapturestheheatfromthestore’s
withbothnationalandlocal
refrigerationunitsandredistributestheheatthroughaduct
communitybanks. Nearly$3
worksystemtoheatthebuilding. Also,energyefficientT?12
billioninlendingsupportwas
lightingwasinstalled.Sincetheopeningofthestoreinearly
deliveredinFY2010.InFY2010, 2009,thebusinesshasrealizedasignificantenergysavings.
USDARuralDevelopment’s
BusinessprogramsincludedassistanceintheB&IProgram,whichfunded1,030projectsfor
$2.9billion.
? RuralEnergyforAmericaProgram
InAdamsCounty,Iowa,theRBEGprogramwasusedto
(REAP).TheREAPprogramprovides
helpcapitalizearuralrevolvingloanfund. Usingits
loanguaranteesandgrantsfora 2007awardof$89,004,thefundassisted3businesses,
numberofpurposesthatassistrural
created5jobsandsaved32jobs. In2008,asecond
grantof$95,000providedmorecapitalforthefund.
smallbusinessesandagricultural
Theplanincludedassistingasimilarnumberof
producerswiththecostofpurchasing
businessesandcreatingandretainingmorejobs. Ina
andinstallingrenewableenergy
countywithapopulationofabout4,000people,the
systemsandenergyefficiency 2007activityonthisfundingamountedtoincreasing
improvements. Theprogramcan
employmentby1quarterof1percent.
resultinthecreationofenough
InNewLebanon,Tennessee,anewculinarycenterwas
electricitytofuelanentirefarm
openedwithhelpfromtheUSDA.The2,400?square?
operationwithenoughleftovertosell
footcommercialkitchenandstoragespaceopened
backtothegrid? creatingincomein earlythisyear.BuiltfromRBEGgrantsfromtheUSDA
ruralareasandhelpingtocleanthe
andtheTennesseeAgricultureEnhancementProgram,
thecenterisdesignedtohelpareasmall?business
environment. InFY2010REAP
ownershaveasanitary,affordablevenueformass?
provided$83,926,976ingrantsthat
producingtheirproducts.Theculinarycenteris
savedorcreated1,996jobs,while
intendedtoalsoprovideaspotforlocalfarmerswitha
assisting2,417smallbusinesses. surpluswhowanttomakejamsorsauces,andfor
REAPalsoprovided$72,998,504in
studentstolearnaboutentrepreneurshipandthe
businessofculinaryarts.
loansthatassisted382small
businesses.
13
? RuralBusinessEnterpriseGrant(RBEG)Program.TheRBEGprogramfacilitates
developmentofsmallandemergingprivateruralbusinessenterprisesthroughflexibleloan
andgrantauthoritytoassistsmallbusinesseswiththeirspecificneeds.
? MemorandumofUnderstanding(MOU)betweenSBAandUSDA. Thetwoagencies
executedanMOUinApril2010toencouragesustainablegrowthanddevelopmentforrural
businesses. Keyelementsoftheagreementaimtoimprovecoordinationinthedeliveryand
developmentofprograms,improveopportunitiesforsmallbusinessestostartandgrow,
andincreasethevolumeofbusinessloansguaranteedbyUSDARuralDevelopmentand
SBA,alldirectlyhelpingtoincreasecapitaltoruralAmerica.
NewandStrengthenedDevelopmentPrograms. Inordertoprovidesmallbusinesseswith
accesstocapitalthattheyneedtothrive,theObamaAdministrationhasimplementednew
programswhichallowinnovativesmallbusinessestofurtherdevelop.Theseprogramsare
particularlyessentialforsmallbusinessesinemergingsectors.
? TheEconomicDevelopmentAdministration(EDA).EDAplaysaleadingroleintheFederal
economicdevelopmentagendabypromotingcompetitiveecosystemsforentrepreneurship
andinnovationthroughitsOfficeofInnovationandEntrepreneurship(OIE),andpreparing
Americanregionsforgrowthandsuccessintheglobaleconomy. ExamplesofEDA
programsincluderevolvingloanfunds,investmentfundsforinnovationinfrastructure,and
university?entrepreneurpartnerships.
? i6Challenge. OIE’si6Challengewasdesignedtoencourageandrewardinnovativeideas
thatacceleratetechnologycommercialization,newventureformation,jobcreation,and
economicgrowthacrosstheUnitedStates. In2010,sixi6winnerseachreceived$1million,
throughEconomicAdjustmentAssistanceFunds,andwereeligibleforuptoanadditional
$1millioninfunding. Visitwww.eda.gov/i6formoreinformation.
14
– i6Green.In2011,OIEwillimplementi6
GreeninpartnershipwiththeU.S.
DepartmentsofAgriculture,Energy,the
U.S.EnvironmentalProtectionAgency,
theNationalScienceFoundation,and
Commerce’sNationalInstituteof
StandardsandTechnologyandU.S.
PatentandTrademarkOffice.i6Green,
withanticipatedfundingofover$12
million,supportedwithGlobalClimate
ChangeMitigationIncentiveFunds,
buildsuponthesuccessoflastyear’s
inaugurali6Challenge.Itpromotes
commercializationoftechnology
through“ProofofConceptCenter”
methodology,whichsupportsall
aspectsoftheentrepreneurship
process,fromassistingwithtechnology
feasibilityandbusinessplan
development,toprovidingmentorship
andaccesstoearly?stagecapital.i6
Greenwinnerswilldemonstrateaclear,
specific,andrealisticapproachto
acceleratingthemovementofclean
economytechnologiestothe
marketplace,includingtechnologiesto
advancerenewableenergy,energy
efficiency,reuse&recycling,
restorationand/orgreenbuildings.
? RegionalInnovationAccelerationNetwork
(RIAN). Acceleratingthedevelopmentof
high?growth,innovation?basedfirmsisthe
hallmarkofa21
st
centuryeconomic
developmentstrategy.EDA’sOIEisworking
withtheStateScienceandTechnology
Institutetocreateanationalnetworkof
venturedevelopmentorganizationstobuild
capacityforsupportinginnovationand
entrepreneurshipindistressedregions.
Venturedevelopmentorganizations,such
asJumpStartinNortheastOhioandBen
FranklinTechnologyPartnersin
Pennsylvania,provideavarietyofservices
15
i6Challenge2010Winners
AtlantaRegion:TheGlobalCenterforMedical
Innovation,anot?for?profitcorporation,will
implementthreemajorinitiativestoacceleratethe
developmentandcommercializationofnext
generationmedicaldevicesandtechnology.
AustinRegion:NewMexicoTechnologyVentures
Corporationwilldevelopaninfrastructureforthe
successfulmaturationoftechnologiesdeveloped
undertheSmallBusinessInnovationResearch(SBIR)
programintocommerciallyviableenterprises.
ChicagoRegion:UniversityofAkronResearch
FoundationandAustenBioInnovationInstitutein
AkronpartneredtodevelopInnovativeSolutionsfor
InventionXceleration.Thisprojectwillincrease
innovationandminimizethetimefromideationto
commercializationofnewtechnologiesbybringing
togetherworld?classscientists,physicians,
engineers,researchers,andentrepreneursinthe
biomedicaldevice/productandpolymerscience
industriesofnortheastOhio.
DenverRegion:BioGenerator,Washington
UniversityinSt.Louis,SaintLouisUniversity,the
UniversityofMissouriatSt.Louis,DonaldDanforth
PlantScienceCenter,St.LouisCountyEconomic
Council,andtheSt.LouisDevelopmentCorporation
willadvancebiosciencetechnology
commercializationthroughcollaborativetargeted
pre?companytranslationalresearch,company
creation,andfirstfunding,andbuildan
entrepreneurialinfrastructurethatismarket?based
aroundtheneedsofexistingbiosciencefirmsand
investors.
PhiladelphiaRegion:InnovationWorks,Inc.and
CarnegieMellonUniversitywillcreatethe“Agile
InnovationSystem,”toacceleratethe
commercializationoftechnologiesbeingdeveloped
withintheregion’suniversitiesandsmallbusinesses.
SeattleRegion:TheOregonTranslationalResearch&
DrugDevelopmentInstitute,theOregon
Nanoscience&MicrotechnologiesInstitute,andthe
OregonBuiltEnvironment&Sustainable
TechnologiesCenterarejoiningforcestocreatethe
firstcomprehensive,innovationinfrastructure–the
OregonInnovationCluster–toaddressgapsinthe
commercializationcontinuumforthreebroad
industry/technologyclusters.
thatdirectlybenefitsmallbusinesses,includingaccesstocapital,expertbusinessassistance,
andnetworkdevelopment.In2011,RIANisidentifyingbestpractices,measuringeconomic
impacts,andprovidingassistancetoregionsinterestedinestablishingorestablishing
venturedevelopmentorganizationstosupportbusinessdevelopment.
? TheBroadbandTechnologyOpportunitiesProgram(BTOP)andtheBroadband
InfrastructureProgram(BIP).TheRecoveryActprovidedatotalofapproximately$7billion
ingrantandloanfundstotheDepartmentofCommerce’s(DOC)National
TelecommunicationsandInformationAdministration(NTIA)andtheDepartmentof
Agriculture’s(USDA)RuralUtilitiesService(RUS)forprojectsthatwillincreaseaccesstoand
adoptionofbroadbandserviceacrossAmerica. AllfundswereawardedbySeptember2010
forprojectsthatwillbebuiltby2013. Over$1.7billioninfundswereprovidedforsmall
businessprojects. Additionally,manysmallbusinessesareprojectpartnersorvendors,and
someoftheseprojectstargettraininginonlineresourcesforjobsearches,
entrepreneurship,andsmallbusinessesissues. Beyonddirectawards,smallbusinesseswill
benefitindirectlyfromtheseprojectsthroughincreasedbroadbandavailabilityfor
themselvesandtheircustomers.Thepotentialcommercialbenefitstosmallbusinessesare
clear,includingmoreaffordableaccesstoinformationandjobtrainingforemployees;
improvedaccesstopartners,vendors,andsuppliers;faster,morecost?efficientoutreachto
potentialandactualconsumersthroughwebsites,e?mails,ande?commerce;moreefficient
businessmanagementthroughcloudcomputingandotheronlinetools;andaccessto
regional,nationwide,orevenglobalmarkets.
ListeningtoSmallBusinessesandBuildingonSuccess.TheObamaAdministrationis
committedtoimprovingonitssmallbusinessinitiativesbycontinuingwhatworksandcutting
whatdoesnot.Inadditiontobuildingonsuccess,PresidentObamaandhisAdministrationwill
improvetheseeffortsbylisteningtothepeopletheprogramsaredesignedfor—smallbusiness
ownersandleaders.
? FederalReserveBankSmallBusinessLendingRoundtables.TheBoardofGovernorsofthe
FederalReserveSystemhostedaforuminJuly2010entitledAddressingtheFinancing
NeedsofSmallBusinessestoshareinformationandgatherperspectivesonhowtobest
addresstheimmediateandlonger?termcreditneedsofsmallbusinesses. Theforum
followedaseriesofmorethan40smallbusinessmeetingsorganizedbytheFederalReserve
System’sCommunityAffairsOfficesacrossthecountrytodeepenourunderstandingofthe
financingchallengesthatsmallbusinessescurrentlyface.
? TreasuryDepartmentSmallBusinessandEntrepreneursAccesstoCapitalConference.The
TreasuryDepartmenthostedaMarch2011conferencewhichexploredaccesstocapitalfor
smallbusinesses.Accesstocapitalisvitaltospurringinvestmentinsmallandinnovative
businesses,promotingjobcreation,andfuelingsustainableeconomicgrowth.Abroad
rangeofoptionstohelpsmallbusinessesaccessthecapitaltheyneedtoexpandandgrow
werediscussed.
16
? StartupAmericaRegulatoryRoadshow.StartupAmericaistheWhiteHouseinitiativeto
celebrate,inspire,andacceleratehigh?growthentrepreneurshipthroughouttheNation.
OnecoregoaloftheStartupAmericainitiativeistoreducebarriersthatarehampering
entrepreneurs’abilitytostartandscaletheirbusinesses.TheWhiteHouse,inpartnership
withtheSBA,decidedthebestwaytofigureoutwhichregulatorybarrierswerehindering
entrepreneurswastoaskthosewhoaredirectlyaffectedsothatentrepreneurscanhelp
identifysolutionsaswell.That’swhyduringMarchandApril2011SeniorAdministration
officialshavevisitedfourcitiesandheldroundtablediscussionstoaskentrepreneursfor
theirideasonwhichFederalregulationsandprocessescouldbechangedtofostergreater
entrepreneurship,innovation,andjobcreation.Attheendofthisseriesofroundtables,all
thefeedbackandonlinecommentswillbeusedtocreatealistofthetopsuggestions.
AdministrationofficialswillusethisinputtowriteareporttothePresidentonhowtobest
reducebarriersandcontinuetostrengthenAmerica’sentrepreneurialspirit. TheOfficeof
InformationandRegulatoryAffairsisalsocommittedtosharingthepublic’ssolutionswith
theagenciesasitcoordinatesimplementationofthePresident’sExecutiveOrderfor
regulatoryreview.Thegovernmenthasalsocreatedanonlinetoolwhereanyonecan
submit,comment,andvoteonthenewideasandproposedsolutionstheythinkaremost
important.Theonlinetoolcanbefoundat:http://reducingbarriers.ideascale.com/.
? SBAListeningTour.SBAhashostedaSmallBusinessJobsActListeningTourthatwillcover
13citiesandincludetribalconsultations.Allkeystakeholders—includingsmallbusiness
owners,primecontractors,lenders,congressionalstaffandtheprocurementworkforce—
wereinvitedtotheevents.TheobjectivesofthetouraretoprovideinformationonSBJA
provisions,receiveinputonkeySBJAprovisionsandensureSBJAimplementationisa
collaborativeprocesswithstakeholders.
? WinningtheFutureForumatClevelandStateUniversity.Therearedifferentkindsofsmall
businessesallacrossAmericabutatthecoreofeverysmallbusinessistheentrepreneur.
Theseentrepreneursneedthetoolstomaketheircompaniesgrowandtheirdreamscome
truebecausetheyareAmerica’scompetitiveadvantage.Thiscomparativeadvantageis
uniquebecausenotonlydoesitprovideinnovationbutalsoinspirationandempowerment
toanevergreaterdiversityofcommunitiesandindividualsdesiringtobuildgreatAmerican
companies.Inordersupportthis,thePresidentandseveralmembersofhiscabinettraveled
toClevelandStateUniversityinCleveland,Ohiotohearfromlocalsmallbusinessowners,
entrepreneurs,andnon?profitorganizationswhatexactlytheAdministrationcanimprove
upontowintheeconomicfuture.Conversationscenteredonthefivecentraltopicsof
accesstocapital,entrepreneurship,exports,workforcedevelopment,andcleanenergy.
? TheWhiteHouseBusinessCouncil.PresidentObamahasre?launchedtheWhiteHouse
BusinessCouncilaspartoftheAdministration’swaytoreachouttolocalsmallbusiness
ownersandentrepreneurs. Specifically,theAdministrationwillbeginaseriesofWinning
theFutureRoundtableswithAmericanbusinessthatwillsendseniorAdministration
officialstomoderatediscussionswithlocalbusinessleadersinatleast100communities
17
acrossall50statesbyyear?end2011.Thisinitiativealsoservesasacalltoactionbythe
Presidentontheimportanceofsupportinglocaljobgrowthandeconomicinvestment. This
initiativeiscoordinatedbytheWhiteHouseBusinessCouncil.TheCouncilencourages
seniorAdministrationofficialstogettingoutofWashingtontoheardirectlyfromAmerican
businessleadersandentrepreneurs,andthattheideastheyarehearingacrossthecountry
arebroughtbacktoWashington,furtheringtheAdministration’scommitmenttogrowjobs
andincreaseAmericaneconomiccompetitiveness. Over100seniorAdministrationofficials
arenowmembersoftheWhiteHouseBusinessCouncil.
18
III.AugmentedFederalContracting
Opportunities
PresidentialInteragencyTaskforceonFederalContractingOpportunitiesforSmallBusiness
andTheSmallBusinessJobsActof2010. InApril2010,PresidentObamasignedaPresidential
Memorandumin2010highlightingtheneedtoprovidesmallbusinessesopportunitiesin
FederalcontractingandestablishinganInteragencyTaskForceonFederalContracting
OpportunitiesforSmallBusinesses.InSeptember,thesamemonththeTaskForce
recommendationswerereleased,thePresidentsignedintolawtheSmallBusinessJobsAct.The
SBAisimplementingtherecommendationsaswellastheSmallBusinessJobsActprovisions.
TheTaskForceidentifiedthreekeypriorityobjectiveswithactionablerecommendations:
? StrongerRules.Insufficientguidanceandgapsincurrentpolicyhampertheuseoftoolsthat
providecontractingopportunitiesforsmallbusinesses.TheTaskForcerecommended
actionstostrengthenandupdatepolicieswheretheyareweakoroutdatedandtodevelop
themwheretheyarelacking:
– Set?Asides.Updateacquisitionpoliciesandregulationstoprovideclearguidanceon
smallbusinessset?asidesformultipleawardcontractsandrelatedtools.
– ContractBundling.Issueguidanceclarifyingpracticesandstrategiestomitigatethe
negativeeffectsofcontractbundlingonsmallbusinesses,whereworkthathasbeen
performedbysmallbusinessesisconsolidatedinamannerthatmakesitdifficultfor
smallbusinessestocompeteforFederalcontracts.
– Mentor?ProtégéPrograms.DevelopaGovernment?wideframeworkforsmallbusiness
Mentor?Protégéprograms,inwhichlargebusinessesarepairedwithsmallbusinessesto
providetechnicalandfinancialassistance,andclarifytherulesforsmallbusiness
teaming.
– Subcontracting.Strengthentherequirementsforsmallbusinesssubcontractingplans
andenhancetheelectronicsubcontractingreportingsystem(eSRS).TheeSRSisoneofa
numberofgovernment?widesystemsthattheGeneralServicesAdministration(GSA)
managesonbehalfofFederalagenciestosupportFederalacquisitionactivities.
– AgencyReview.Identifywherefocusedeffortswilllikelyhavethemostpositiveeffect
onincreasingsmallbusinessutilizationinprimecontracting.
– Insourcing.Clarifythepoliciesthataddresstherebalancingoftheworkforceand
evaluatetheimpactofinsourcingonFederalsmallbusinesscontractors.
19
– Suretybonds.ConductafullreviewoftheSBASuretyBondprogram,thefinancial
productsitoffers,anditscurrentfundingtodetermineifitismeetingtheneedsofsmall
businesses.
? Abetterequipped,moreinformed,andmoreaccountableacquisitionworkforce.Alack
ofknowledgeandagencyaccountabilityinhibitstheGovernment’sabilitytomeetand
exceedsmallbusinessprocurementgoalsonanongoingbasis.TheTaskForce
recommendedincreasingtheknowledgebaseandefficiencyleveloftheprocurement
workforceandprovidingappropriateincentivesandaccountabilityforagenciestomeet
smallbusinessgoals.
– MandatoryTraining.Strengthentheskillsoftheacquisitionworkforcebyrevising
existingcorecertification;requiringtrainingonsmallbusinesscontracting,procurement
policiesandregulations;andcreatingfocusedrefreshermaterialsforcontinuous
learning.
– AccountabilityandRecognition.Usemeaningful“carrotsandsticks”tocreateagreater
senseofagencyaccountabilityforreachingsmallbusinessFederalcontractinggoals.
– SharingBestPractices.Facilitatetheidentificationandrapidadoptionofbestpractices,
acrosstheagenciestomaximizesuccessfulstrategies.
? ImprovedOutreachandBetterUseofTechnologyandData.Thecurrentdatasystemsin
theFederalacquisitionenvironmentarecumbersomeandnotuserfriendlyformanysmall
businesses,especiallyforthosewhoarenewtothesystemsandtryingto“gettheirfootin
thedoor.”TheTaskForcerecommendedaone?stopshopforeasieraccesstoprocurement
information,aswellasgreaterfocusontheaccuracyofprocurementdata.
– Improved AccesstoBusiness and TrainingOpportunities. EnhanceFedBizOpps.gov,the
Government?widepointofentryonbusinessopportunities,to also serve as aone?stop
resource for annualrequirements forecasting agencies’ prime contracting opportunities
andforpostingsubcontractingopportunities.Thewebsitealsohoststheoutreach
calendarofallFederalagencymatchmakingandtrainingeventsandadirectoryof
onlineagencysmallbusinessresources.
– ImprovedAccesstoData.Improvetheaccessibilityandusabilityofsmallbusiness
procurementdataintheFederalProcurementDataSystem(FPDS).
– ImproveDataQuality.Improvedataqualityrelatedtosmallbusinesscontracting
throughuseofvalidationrulesandimprovedsystemsquality.
FederalContractingOpportunitiesforMinorities.AtatimewhenAmericansareenduringthe
challengesofaneconomicrecoveryandelevatedunemploymentrates,MBDAhasremained
diligentinenhancingthegrowthandglobalcompetitivenessofthefastestgrowingsegmentof
20
theU.S.businesscommunity–minority?ownedbusinesses.AlongwiththeSBAandtheOffice
ofManagementandBudget(OMB),MBDAwasnamedasoneoftheofficialco?chairsofthe
InteragencyTaskForce,designedtoassistFederalagenciesinreachingtheirFY2011small
businesscontractinggoalswhileexpandingminoritybusinesscontractingopportunities.
? AmericanRecoveryandReinvestmentAct.Sinceitsinception,MBDAhasplayedanintegral
roleinsupportingminority?ownedfirmsinAmericanRecoveryandReinvestmentAct
(ARRA)efforts. Theseeffortsincluderedirecting$900,000inprogramfundingin2009to
supportARRAeffortsonthestateandlocallevels. ARRAeffortsalsoincludedworkingwith
keyrepresentativesattheFederal,stateandlocalgovernmentlevelstoensureminority
businessesreceivetheir
fairandequitableshare
StarksContractingCompany,Inc.isaveteran?ownedsmallbusiness
contractingcompanyprimarilyengagedintheconstructionof
ofARRAcontract
commercialandinstitutionalbuildingsandappurtenances.
opportunities.
Thecompanywasoriginallyestablishedin1933asJ.P.Starks
Contractorandincorporatedin1967.TheBiloxi,Mississippi?based
? ContinuedSupport.
companyhasbeendoingbusinesswithNASA’sJohnC.StennisSpace
MBDAhascontinued
Centerformorethan30years.
tosupportcontract
InNovember2006,Starkswasawardeda$19millionconstruction
andfinancing
contracttobuildanewEmergencyOperationsCenter(EOC)atStennis.
opportunitiesas
Theapproximately80,000?square?footEOCconsolidatesthecenter’s
ARRAwindsdown. medicalclinic,firedepartment,securityservices,energymanagement
controlsystem,andincidentcommandpost.
MBDAledor
participatedin112 TheEOCisontracktobeStennis’sfirstLeadershipinEnergyand
ofthetotal300
EnvironmentalDesign(LEED)project.LEEDisathird?partycertification
programthatisthenationalbenchmarkforthedesign,construction,
Federallysponsored
andoperationofhigh?performancegreenbuildings.
ARRA?relatedevents
TheEOCshowcasesastate?of?the?artHazNetEmergencyManagement
andhelpedfacilitate
SystemdevelopedthroughNASA’sInnovativeResearchProgram.The
$150millionin
EOCisoneofonlynineFederalfacilitiescertifiedStormReady,a
additionalARRA?
designationgivenbytheUnitedStatesNationalWeatherServiceto
relatedcontractsfor
communitiesandsitesacrossthecountrythatdemonstratesevere
minority?owned weatherreadiness.
firmsonthestate
Starkswonthecontractovertwolargecontractorsinthefullandopen
andlocallevel. competitionwithabidthatwas$2millionless.ThisallowedStennisto
reinvestthecostsavingsinotherHurricaneKatrinaremediationwork.
? 10,000NewJobs.
Duringthefirsttwo
yearsoftheObamaAdministration,MBDAreportedthatitfacilitatednearly$7billionin
totalcontractsandfinancingsand,accordingtoMBDAstudies,thecreationofover10,000
newjobs
? FY2010Results.InFY2010,MBDAreportedthatitassistedminority?ownedfirmsin
securingnearly$4billionincontractsandfinancingopportunitieswhilehelpingminority?
ownedbusinessescreate6,397newjobs,thehighestlevelofperformanceinthehistoryof
theAgency
21
? FY2009Results.InFY2009,MBDAassistedminorityfirmsinsecuring$3billionincontracts
andfinancingopportunitieswhilehelpingminority?ownedbusinessescreate4,134newjobs
IncreasedFederalContractingDollars.TheAdministrationcontinuestofulfillitscommitment
tobeingagoodcustomertoournation’ssmallbusinessesandiscommittedtoensuringan
appropriateshareofitscontractingneedsgoestosmallbusinesses.
? Morethan$100billiontoSmallBusinessesthroughGovernmentContracts.Eachyear,the
FederalGovernmentspendsabouthalfatrilliondollarsongoodsandservicesandtheSBA
workstofacilitatethemaximumparticipationofsmallbusinessesintheseexpenditures,
includingthose theSBAparticularly
Likemanysmallbusinesses,HalHaysConstruction,Inc
targetsbusinessesownedbywomen,
(HHCI)reliesonFederalcontractsformuch?needed
certainsocioeconomicgroups,service?
revenue,andtheynoticedanuptickincontractsas
disabledveterans,andthoseinareas soonasRecoveryActspendingbecameavailable.The
companyusedRecoveryActcontracts,aswellasSBA’s
hardesthitbytheeconomicdecline. In
8(a)andHUBZoneprograms,toexpanditsreach,grow
2009,theGovernmentawardedsmall
thebusiness,andhirenewworkersdespitetough
businessesalmost$100billionin
economictimes.HHCIisworkingwithnewcustomers,
contracts—anincreaseinthedollarand
liketheDepartmentofTransportation,andinnew
percentageamountsover2008forthe sectorsoftheeconomy.Withcontractsavailable
throughoutthecountry,HalHaysConstructionhas
overallsmallbusinessgoalandevery
beenabletoexpanditsgeographicreach.
socio?economicgoal.Andtodate,
nearly$11billioninRecoveryAct
HHCIcompetedforandwonseveralRecoveryAct
contractshavegonetosmall
contracts,includingan$8.6millioncontracttoinstall
businesses.Thesedollarsprovided solarpanelsonAlcatrazIslandfortheNationalPark
Service,a$7.2millioncontractforworkatPearl
smallbusinessesamuch?neededboost
HarborfortheNavy,andacontracttobuildroadsin
tocreateandretainjobsandhelp
RedwoodNationalParkfortheFederalHighway
revitalizeoureconomy.
Administration.
? MeetingandExceedingFederal
LargercontractsimprovedHHCI’sportfolioandhelped
thecompanycompetewithlargerfirms. Most
ContractingGoals.TheAdministration
importantly,thecontractshavehelpedHHCIprevent
iscommittedtoensuringthat23
layoffsandcreatejobs.Withthenewbusinessthe
percentofFederalcontractingdollars
RecoveryActhasbroughtin,Hayshasretained35
gotosmallbusinesses.Additionalsub?
employees—andhired30more.
goalsseektoprovide5percentof
Federalcontractingdollarstosmalldisadvantagedbusinesses,5percenttowomen?owned
smallbusinesses,3percenttoservice?disabledveteran?ownedsmallbusinesses,and3
percenttosmallbusinessesinhistoricallyunderutilizedbusinesszones(HUBZones).Under
theRecoveryAct,32.62percentofallFederalcontractingdollarswenttosmallbusinesses,
andallsub?goalswereexceeded.
22
HUBZoneContractingInAction
AfterearningNASA’stopthreecorporatehonorsinlessthan2years,AppliedGeoTechnologies(AGT)has
distinguisheditselfasoneofthemostdetail?orientedcontractorsintheindustry.Infact,youmightevencall
ittheirbusinessstrategy.“Continuousimprovementisnotjustabuzzwordwithus,”saidMikeMiller,
InterimPresidentandCEOatAGT.“It’sanoperationalmissionthatdriveseverythingwedo—fromglobal
administrationandstrategicplanningrightdowntothepatternwemowinthegrass.”
Withacadreofoperationalservicesspanningcommercial,aerospace,anddefenseconcerns,maintaining
suchaconsistentlyhighlevelofsuccessisnoeasyfeat.“Asourcustomers’needsevolve,sodoesourlist
ofproducts,services,andevenlocations.Butwitheachnewventure,we’reproudtoupholdthevalues
thathavesustainedusthisfar.Putthecustomerfirst,doitonce,anddoitright.”
Inmanyways,AGT’sidealsarenodifferentthantheorganizationstheyserve.“NASAdidn’tbecomewhat
itistodaybyrestingonitsaccomplishments,”addedC.C.Fridlin,DirectorofBusinessDevelopmentat
AGT.“Witheachnewmilestonecamethemotivationtopushharder,learnmore,achievefaster,and
reachhigher.Weliketothinkwedothesame.”
Theirrecordagrees.Inthefirstquarterof2010alone,AGTearnedboththeprestigiousGeorgeM.Low
QualityAwardandtheJohnC.StennisSpaceCenterContractorExcellenceAward—twoofthehighest
commendationsforaspacecontractor.
TheGeorgeM.LowAwardisNASA’spremierqualityandperformancehonor,recognizingexcellence
andoutstandingtechnicalandmanagerialachievementsinqualityandperformanceonNASA?related
contractsorsubcontracts.Aspartofitstirelessdedicationtooperationalefficiency,AGTdevelopeda
qualitybuilt? inapproachtocontractwork.Theresultingchangesincludedimprovementsineverything
fromprocesscontroltomanagementoversight,asanattempttoreducetheriskofqualityand/or
performanceissuesatalllevels.Asaresult,AGTdeliveredreductionsinhumanerror,increasedscores
fortechnicalperformanceandtimeliness,zerocostoverruns,andanexcellentsafetyrecord.
TheLowAwardcomesontheheelsofthecovetedStennisContractorExcellenceAward,whichrecognizes
outstandingproductandserviceperformanceforworkrelatedtotheCenter’slaboratoryservices.Prior
tothat,AGTbecamethefirstresidentagencyatStennisSpaceCentertoreceivetheOccupationalSafety
andHealthAdministrationVoluntaryProtectionProgram“Star”statusforsafetyimplementations.AGT
wasalsonamedtheCenter’sSmallBusinessPrimeContractoroftheYearunderNASA’sSmallBusiness
IndustryAwardsprogram.
? IncreasingOpportunityforWomenOwnedBusinesses. TheWomen?OwnedSmall
BusinessContractingprogram,authorizedmorethantenyearsago,wasfinally
implementedbytheObamaAdministrationthisyear. TheruleispartoftheObama
Administration’soverallcommitmenttoexpandingopportunitiesforsmallbusinessesto
competeforFederalcontracts,inparticularthoseownedbywomen,sociallyand
economicallydisadvantagedpersonsandveterans. Thisruleidentifies83industriesin
whichwomenownedsmallbusinesses(WOSBs)areunder?representedorsubstantially
under?representedintheFederalcontractmarketplace. Inadditiontoopeningupmore
opportunitiesforWOSBs,theruleisalsoanothertooltohelpachievethestatutorygoal
that5percentofFederalcontractingdollarsgotowomen?ownedsmallbusinesses. SBA
releasedthefinalWomen?OwnedSmallBusinessRuleinOctober2010tocoverWOSBs
andeconomicallydisadvantagedWOSBs.InFebruary2011,SBApostedguidelinesfor
23
theprogramtowww.sba.gov/wosb.WOSBscanregistertobeeligibleforcontracts
underthenewrulebyvisitingonline.
? IncreasedAgencyAccountabilityforSmallBusinessesandUnderservedCommunities
throughUpdatedScorecard.Toholdagenciesaccountablefortheirindividualgoals,
SBAreleasedanewandmorecomprehensivecontractingscorecardformatinFY2010
thatimprovesthewaysmallbusinesscontractingperformanceismeasuredacrossthe
Government.Inaddition,SBAandtheOfficeofManagementandBudget(OMB)are
workingcloselywithallprocurementagenciestoensureaccuratedatacollection.
? NationalGrantAwardsforMBDABusinessCenters.OnApril1,2011,MBDAannounced
$7.8millioninfundingfor27MBDABusinessCenterslocatedacrossthecountryandPuerto
Ricotooperate30MBDABusinessCenters,includingnewlocationsopeningforthefirst?
timeinCleveland,Ohio;Denver,Colorado;andManhattan,NewYork. Thestrategic
businessconsultingservicesprovidedbytheMBDABusinessCenterswillgenerate
increasedfinancing,publicandprivatesectorcontractopportunitiesandrelatedawardsto
minoritybusinesses,inadditiontoassistingminority?ownedfirmsincreatingandretaining
jobs. TheawardsweremadeonApril6,2011.
– 2011MBDANationalTrainingConference.FromJune20–24,2011,inHouston,MBDA
willhostaconferenceforallofitsBusinessCentersandstafftoreviewObama
AdministrationprioritiesaswellasDepartmentofCommercestrategiesandinitiatives
tostrengthentheeconomy,createjobsandpromoteU.S.exports. Inaddition,the
Conferencewillprovideon?goingbusinessdevelopmenttrainingtoMBDA’sBusiness
CentersandtoMBDABusinessDevelopmentSpecialistsnationwide.
– 29
th
National MinorityEnterpriseDevelopment (MED) Week Conference.In
collaborationwiththeSBA, this nationalconference, scheduled forSeptember27?30 in
Washington,DC, willprovideminoritybusinessenterprises (MBEs)withaccess to the
policymakers, programmanagers, financiallenders andprocurement officers who are
vitaltotheirsuccess. TheMEDWeekConferencewillincludeaBusiness?to?Business
Expotoexpandprocurementopportunitiesandexpectstoexceedthe2010B2Blevels
of$30billioninprocurementopportunitiesand1,500conferenceattendees. MED
Weekwillalsoprovidegreaterfocusonexportingopportunitiesandimplement
targetednetworkingsessionstoenhancejointventuresandstrategicpartnerships.
? GSAMentor?ProtégéProgram. GSA’smentor?protégéprogramfosterslong?term
relationshipsbetweenGSAprimecontractorsandsmallbusinessestoenhanceprotégés’
capabilitytowinandperformsuccessfullyonGSAcontractsandsubcontracts. Thenew
mentor?protégéprogramhasalreadyhelpedboostsmallbusinessesacrossthecountrywith
55agreementsinplace,including31withservice?disabledveteranownedsmallbusinesses.
Inoneexample,aprotégéreceiveda$3.5millioncontractduetoassistancefromtheir
mentorandtheprogram. GSAislearningofmoresuccesseslikethisaswemeasureour
first?yearresults. GSAplanstoaugmentthisprograminFY2011withatailoredworkshop
24
series. Thisprogramwillbenefitbusinessesofallsizes,withprocurementbenefitsforboth
protégésandmentors.
? CommitmenttoTransportationInfrastructure.InhisFY2012BudgetPresidentObamalaid
outaboldnewplanforrebuildingandmodernizingAmerica'stransportation
infrastructure—combiningnewinvestmentstorenewandexpandournation'sroads,
railwaysandrunwayswithalong?termvisionforthefuture.Thisplanwillbringjobstoour
economynow,befullypaidforandnotaddtothedeficitovertime,andincreaseour
nation'sgrowthandproductivityoverthelong?term.Thiswillprovideincreasedcontracting
opportunitiesforU.S.SmallBusinesses.
MoreEfficientGovernmentContractingProcedures.InadditiontoofferingincreasedFederal
contractingopportunitiestosmallbusinesses,theObamaAdministrationiscommittedto
makingcontractingproceduresmoreefficient.Thismeanssmallbusinesseswillbeableto
spendmoretimeworkingontheprojectandlesstimeapplyingfortheproject.
? EliminationofProgrammaticInefficienciesforFederalContracting.
? HUBZone.TheHistoricallyUnderutilizedBusinessZones(HUBZone)programhelpssmall
businessesinurbanandruralcommunitiesgainpreferentialaccesstoFederal
procurementopportunities.Thesepreferencesgotosmallbusinessesthatobtain
HUBZonecertificationinpartbyemployingstaffwholiveinaHUBZone.Thecompany
mustalsomaintaina"principaloffice"inoneofthesespeciallydesignatedareas.The
HUBZoneProgramimplementednewprocessesinFY2009/FY2010tominimizewaste,
fraud,andabuseandtoreducethesubsequentcertificationbacklog.Thisnewapproach
minimizesthenumberofineligiblefirmsobtainingcertification,butresultedinan
increasedamountofworkrequiredtorevieweachapplication Asaresult,HUBZone
builtupalargebacklogofapplications,whichhassincebeenreduced. TheSBAalso
performedmorethan1,200sitevisitsofHUBZonefirmstoenhancetheprogram’s
integrityandensurethattheprogramservesthevitalneedsofeligiblesmallbusinesses.
? Revised8(a)Regulations.The8(a)BusinessDevelopmentProgramisanimportant
resourceforsmallbusinessesseekingbusiness?developmentassistance.Namedfor
Section8(a)oftheSmallBusinessAct,thisprogramwascreatedtohelpsmalland
disadvantagedbusinessescompeteinthemarketplace.Italsohelpsthesecompanies
gainaccesstoFederalandprivateprocurementmarkets.SBArecentlyconductedthe
firstmajorreviewofthe8(a)regulationsintenyears.Newregulations,whichwere
draftedaftergatheringover2,500commentsfromsmallbusinessesandstakeholders
werefinalizedandreleasedinFebruary2011.Thenew8(a)regulationsstrengthentools
suchasthementor?protégéprogramandensurethatbenefitsoftheprogramflowto
theintendedrecipients. Foradditionalinformationpleasevisit
www.sba.gov/content/revised?8a?regulations.
25
? StrongerOversightandEnforcement.WorkingwithitsFederalpartners,theSBAhastaken
multiplestepstostrengthenoversightandenforcementtobetterensurethebenefitsof
Federalsmallbusinesscontractingprogramsaregoingonlytoeligiblefirms.Significant
stepshavebeentakentostrengthencertificationprocesses,ongoingmonitoringand
oversight,andtimelyenforcement.Theseeffortsareaimedatreducingtheopportunities
forabuseofthesecriticalprogramsandaggressivelypursuingfraudulentactivityand
ineligiblefirms.
? EnhancedGeneralServicesAdministration(GSA)e?CommerceTools. GSAAdvantage!,
www.gsaadvantage.gov,aFederalonlineshoppingandorderingsystem,givesGovernment
agenciesaccesstoover18,000vendorcontracts,including15,000heldbysmallbusinesses,
andover28millionproducts,servicesandsolutions.Thewebsite,establishedin1996,has
beenrevampedwiththelatestandmostwidelyusedcommercialtechnologies,enhanced
search,andonlineorderingandpaymentfeatures.Vendorscannowpostmoredetailed
productandshippinginformation,videos,andhighresolutionpictures.Vendorsand
Governmentbuyerscanconductdirectonlinesales,streamliningandmodernizingtheway
theydobusiness.GSAAdvantage!providesawidearrayofsmallbusinesses,including
women?owned,minority?owned,veteran?owned,andHUBZonefirms,withnew?and?
improvedmarketingandsalescapabilitytoGovernmentbuyers.GSAAdvantage!makesit
easierforcustomerstocomparepricesfrommultiplevendorsandtofilterandfindsmall
businesses,enhancingtheirabilitytomakegoodpurchasingdecisionsandincreasesmall
businesssales.Thesitehascloseto800,000registeredusersandreceivesapproximately
500,000visitsperday.
ContractingPartnershipsforSmallBusinesses.EntrepreneursacrossAmericahavecitedhaving
amentorasanecessityforasuccessfulventure.Theseprogramsofferpartnershipstobuildthe
relationshipsthatwillallowsmallbusinessesandnewenterprisestocontinuetogrowand
createjobs.
? Public?PrivateSectorFederalContractingPartnerships.GovernmentContractingMentor?
Protégéprogramspairprivatesectorcompanieswithsmallbusinessestoprovidetechnical
and/ormanagementassistance,financialassistance,subcontractingopportunitiesand
opportunitiesforjointventures. AspartoftheSmallBusinessJobsAct,theMentor?Protégé
programwillnowbeextendedtoservice?disabledveteran?ownedsmallbusinesses,
women?ownedsmallbusinessesandHUBZonesmallbusinesses.
? NASAMentorProtégéAgreements.Therewere16Mentor?ProtégéAgreementsfrom
2008?2010.Theestimateddollarscreditedtothevariousmentors’subcontractingplansfor
allagreementsis$2,715,408.ThetotaldollarsthatMentorshavesubcontractedtoprotégés
duringtheiragreementsfrom2008?2010is$2,357,620.
26
? PartnershipswithNationalLaboratories.TheDepartmentofEnergy(DOE)National
Laboratorieshaverobustsubcontractingprogramswhichcreatenumerousopportunities
forsmallbusinesses. BasedonFY2009reporting(thelatestavailable),intotal,the
ManagementandOperating(M&O)contractorssubcontracted$9.446billion,ofwhich52.5
percentwenttosmallbusinesses($4.959billion).ForthetenOfficeofSciencelaboratories,
$1.957billionwassubcontracted,ofwhich$949million(or48.5percent)was
subcontractedtosmallbusinesses.Eachyear,theOfficeofSciencenegotiatessmall
businesssubcontractinggoalswitheachofitslaboratories.Thesegoalsincludesmall
businesssubcategoriessuchasveteran?ownedsmallbusinesses,service?disabledveteran?
ownedsmallbusinesses,HUBZonesmallbusinesses,small?disadvantagedbusinesses,and
women?ownedsmallbusinesses. DOE’sM&Ocontractorsusevarioussourcestolocate
qualifiedsmallbusinessestosatisfytheirsubcontractingneeds,includingSBADynamic
SmallBusinessSearch,CentralContractorRegistration,Sub?Net,emailsolicitationsfrom
smallbusinesses,andtheannualDOESmallBusinessConference. Inthelasttwoyears,the
DOEM&Ocontractorshaveexceededtheirsmallbusinesscontractinggoals,ensuringthat
morethan50percentoftheirsubcontracteddollarswenttosmallbusinesses.
? MOUwithDepartmentoftheNavy(DON). TheSBAandDONareworkingcollaboratively
tohelpreachtheAdministration?widegoalsofgreaterenergyefficiencyfromsustainable
energysourcesandreducingenergyconsumption. AsthefirstinitiativeundertheMOU,in
October2010theNavyunveiledacentralizedportalaggregatingcurrentgreen
procurementopportunities. Atlaunch,approximately25percentofthegreenprocurement
opportunitieswereset?asidesforsmallbusiness. Overthelongerterm,theSBAis
committedtocreatingadynamic,entrepreneur?friendly,greenprocurementportalthat
buildsupontheNavy’sworkandisanonlineplatformthatallowsentrepreneurstomore
easilynavigatetheFederalGovernment.
MeetingNationalSecurityNeedsthroughSmallBusiness. Overthepasttwofiscalyears,the
DepartmentofDefense(DOD)
hasawarded$127.9billionand
over2millioncontractactions
tosmallbusinesses,
representingmorethanhalfof
allFederalspendingwithsmall
businesses. Thenation’ssmall
businessesaddvitalitytothe
defenseindustrialbase,area
keydriverofinnovation,and
contributevitallytomeeting
thecontinuingandcomplex
needsoftheDOD.
DODInnovationinPaymentRegulations
Recently,incollaborationwiththeAdministration,theDODchangedits
promptpaymentregulationstoprovideforpayingallsmallbusinessesas
quicklyaspossible.Previously,theDefenseFederalAcquisition
RegulationSupplement(DFARS)extendedthisacceleratedpayment
policyonlytothosebusinessesthatwereconsideredsmalland
disadvantaged.DODchangedtheregulationssothatallsmallbusinesses
couldreceivepaymentsasquicklyas10daysaftersubmittinganinvoice,
ratherthanhavingtowaitfor30days. BecausetheDODpayment
systemsneedtobemodifiedtoaccommodatethischange,accelerated
paymentwillbeimplementedonaphasedbasisaspaymentsystemsare
updated.DODprocuresover$60billionayearofgoodsandservices
fromsmallbusinesses,sothisisasignificantwinforthesmallbusiness
community. Asaresultofthischange,thousandsofsmallbusinesses
acrossthecountrywillbeabletoleveragethisacceleratedcashflowto
meetpayroll,investinnewtechnologies,andcreatejobs.
27
? BetterBuyingPower.AsoutlinedinaSeptember14,2010memorandumfromUnder
SecretaryofDefenseforAcquisition,Technology&LogisticsAshtonCartertotheacquisition
workforce,entitled“BetterBuyingPower:GuidanceforObtainingGreaterEfficiencyand
ProductivityinDefenseSpending,”DODhasdirectedseveralrecentactionstoincrease
contractingopportunitiesforsmallbusinesses. Thefirstistoincreasetheroleofdynamic
smallbusinessindefensemarketplacecompetitionbyemphasizingsmallbusiness
utilizationinsubcontractsthroughweightingfactorsinpastperformanceandinfee
construct. Thesecondistoincreasesmallbusinessparticipationinprovidingservicesand
whenusingMultipleAward/IDIQcontracts.
? OfficeofSmallBusinessProgramsOversight.Themilitarydepartmentsanddefense
agenciesarealreadyimplementingtheoversightprogram,andtheDODOfficeofSmall
BusinessProgramsisdevelopingabestpracticesguideforprocurementofficials. All
acquisitionsforservicesexceeding$1billionarealsobeingreviewedbytheDODOfficeof
SmallBusinessProgramstoensurefullmaximumopportunitiesforsmallbusinesses.
? DefenseLogisticsAgency.TheDefenseLogisticsAgencyisminingitsbuyingdatatoincrease
contractingopportunitiesforService?DisabledVeteran?OwnedSmallBusinesses. The
Agency,throughitsanalysis,hasfoundmorethan4,400NationalStockNumbersofitemsit
buysthatcanbesetasideforsmallbusinessesownedandoperatedbyservice?disabled
veterans. Additionally,theAgencyhasworkedtoexpanditspoolofService?Disabled
Veteran?OwnedSmallBusinessesthatmightbeabletocontractwiththeDepartmentof
Defense. Onepartoftheorganizationidentifiedover300potentialbusinesspartnersby
studyingtheCentralContractorRegistrationandmatchinguppubliclyavailablecodeswith
thesesmallbusinesses. AnotherAgencyofficetelephonedover150potentialService?
DisabledVeteran?OwnedSmallBusinessestodiscusstheircapabilities. Ifthesmall
businesseswereunabletoparticipateinprocurementsunderthecognizanceoftheoffice
makingthecalls,theAgencyprovidedrelevantcontractinformationtootherpartsofthe
DefenseLogisticsAgencywherethebusinessesmightfindopportunities.
? CollaborationwithDepartmentofHomelandSecurity’s(DHS)OfficeofSmalland
DisadvantagedBusinessUtilization(OSDBU).FEMAroutinelyparticipatesinDHS’svendor
outreachsessionsanditsannualindustrydayconference. AspartofFEMA’soverall
mission,smallbusinessesreceiveexpertadvice,supportandcounselfromFEMA’sSmall
BusinessSpecialisttohelpthemunderstandFEMA’smissionanditsacquisitionprocess.
Moreover,FEMAparticipatesinnumeroussmallbusinessconferencesthroughoutthe
nation.
? FEMA’sIndustryLiaisonProgram.FEMA’sIndustryLiaisonProgramarrangesmeetings
betweensmallbusiness“sellers”andpotentialFEMA“buyers”aspartofFEMA’s
frequentlyheldindustrydaysatwhichsmallbusinesseslearnaboutupcoming
acquisitionsandhowtocompeteforthem.
28
? FEMA’SLocalBusinessTransitionTeam(LBTT).FEMAhasestablishedateam?based
approachforconvertinglargecontractstosmalllocalbusinessesinaPresidentially
declareddisasterarea. TheLBTTwaspilotedintheaftermathofHurricanesIkeand
GustavandisnowanestablishedprogramwithinFEMA. TheLBTTimplementsSection
307oftheRobertTStaffordActandPart26oftheFederalAcquisitionRegulation.
? VoluntaryPrivateSectorPreparednessAccreditationandCertificationProgram(PS?
PrepTM).ThisDHSprogram,coordinatedthroughFEMA,seekstoraisethelevelof
preparednessthroughouttheprivatesectorbyprovidingawayforprivatesectorentitiesto
voluntarilytakeimportantpreparednessactions.Theprogramgivesprivatesectorentities
theopportunitytocertifytheirconformancetoDHS?adopteddisasterpreparednessand/or
businesscontinuitystandard. Thesmallbusinessaspectoftheprogramwillestablish
separateclassificationsandmethodsofcertificationforsmallerentities,toprovidemore
affordableandaccessiblealternativesintheprocessofcertification.
? DHSisworkingwithpublicandprivateentitiesthatofferpreparednessprogramsand
activitiestodevelopanationwidenetworkoforganizationsthatwillprovideavarietyof
lowcosteducationaltoolsandtechnicalassistancetosupportsmallbusinessesin
improvingpreparednessandreachingconformancetoanadoptedstandard. FEMA’s
CitizenCorpsworkswithstate,territorial,tribalandlocalCitizenCorpsCouncilsto
promoteinclusionofsmallbusinessesincommunityplanningandpreparednessthrough
partnershipswithcommunitypreparednessorganizationsandprograms.
? USCoastGuard(USCG)Outreach.TheUSCGachievedunprecedentedsuccesswithawards
tosmallanddisadvantagedbusinessinFY2010,exceedingallsocioeconomicgoals. The
USCGoperates48contractingofficeslocatedthroughoutthecountry,includingHawaiiand
Alaska,andithasmaintaineda”grassroots”connectiontothesmallbusinesscommunities
thatsurrounditsoffices. Thisstrategyconsistentlydeliversresults,andFY2010wasthe
bestyearever. Morethan43percentofthedollarscontractedbytheUSCGwereawarded
tosmallbusinesses;morethan15percenttosmalldisadvantagedbusinesses;nearly7.5
percenttoSBA8(a)certifiedbusinesses;morethan6percenttowoman?ownedsmall
businesses;morethan5percenttoHUBZonebusinesses;morethan6percenttoveteran?
ownedsmallbusinesses;andmorethan3.5percenttoservicedisabledveteran?owned
smallbusinesses.
? VendorOutreachSessions.TheUSCGasacomponentofDHS,activelyparticipatesin
monthlyvendoroutreachsessionstoeducatesmallbusinessesoncontractingwiththe
USCG,andtoprovideinformationoncurrentandfutureopportunities. TheUSCG
attends10vendoroutreachsessionsperyearintheWashington,DCarea,andatleast
twoadditionalvenderoutreachsessionsinotherregionsofthecountry. Forexample,
inFY2010,theUSCGattendedavendoroutreachsessioninTexastosupportcompanies
intheGulfregion.InFY2011,theUSCGintendstoattendvenderoutreachsessionsin
Boston,MAandSanDiego,CA.
29
? InformationTechnologyOutreach.WiththeestablishmentoftheUSCGCommand,
Control,Communications,Computer,andInformationTechnology(C4IT)Directorate,
theC4ITChiefofContractingsponsoredanindustrydayinJuly2010tointroducethe
C4ITmissionandneedstothesmallbusinesscommunity. Over300companies
attendedandreceivedinformationontheC4ITstructure,pointsofcontact,and
upcomingopportunities.
? U.S.Citizenship&ImmigrationServices(USCIS)ContractingOffice.USCISContracting
Officeawarded$165milliontosmallbusinessesthroughgovernmentcontractawardsinFY
2010(approximately20percentofeligibledollars). Thisincludesapproximately$81million
tosmalldisadvantagedbusiness. TodateinFY2011USCIShasawarded$78millionand
25%oftotaldollarstosmallbusinessesandareontracktoexceedDHSSmallBusiness
goals.
? ParticipationinSBAMatchmakerEvents.TheUSCISContractingOfficeregularlysends
representativestoparticipateinSBAMatchmakereventsinVTandtheNortheastSBA
region. Themostrecentevent,heldinFebruary2011,wasattendedbytwoContract
Specialistsandover50SmallBusinessvendors.
? One?on?OneMeetings.TheUSCISSmallBusinessSpecialistandContractingOfficeteam
periodicallyscheduleface?to?facemeetingswithSmallBusinessvendorsasrequestedto
assistinmatchingSmallBusinesscapabilitieswithagencyneeds.
? DHSCompetitionandAcquisitionExcellenceAwardforFY2009.InFY2010,theUSCIS
ContractingOfficewashonoredwiththeFY2009DHSCompetitionandAcquisition
ExcellenceAward,“PromotingandAchievingCompetitionbyaTeam,”whichfocusedon
expandingcompetitionexclusivelyinthesmallbusinessareaof8(a)andService?
DisabledVeteran?OwnedSmallBusinesses(SDVOSB).
? U.S.ImmigrationandCustomsEnforcement’s(ICE),DHS,OfficeofAcquisition
Management.ICE’sOfficeofAcquisitionManagementdeliveredmorethan$470millionto
smallbusinessesthroughGovernmentcontractsinFY2010. Overall,37.4percentofall
eligibledollarswereawardedtosmallbusinessfirms. Thisincludedapproximately$177
milliontosmalldisadvantagebusinesses,approximately$63.6millionto8(a)firms,
approximately$88.8milliontoservicedisabledveteransownedsmallbusinesses,
approximately$143.5milliontowomen?ownedsmallbusinesses,andapproximately$14.7
milliontoHUBZonefirms. TheICEsmallbusinessspecialistisdirectlyinvolvedinthe
acquisitionstrategyforanyprocurementexceeding$10millionfortheanticipatedperiodof
performance.
? TheICESmallBusinessSpecialistconductsvendoroutreachsessionswiththesmall
businesscommunityonaweeklybasis. Programandacquisitionstaffmembers
30
participateinthemeetingsandprovidesmallfirmswithvitalinformationconcerningICE
contractopportunities.
? SmallBusinessHUBZoneConference.TheICEOfficeofAcquisitionManagement
recentlyhelditsfirstSmallBusinessHUBZoneConference. Atotalof52industry
representativesattendedtheevent,whichincludedparticipationbytheDHS
DirectorofSmallBusiness,CustomsandBorderProtectionSmallBusinessSpecialist,
andICEContractingProfessionals. Companieswhospecializedinprogram
managementsupportservicesandInformationTechnologysupportserviceswere
invited,asthemajorityofeligibleservicesprocuredbyICEareinthosecategories.
VendorshadanopportunitytomeetwithGovernmenttechnicalpanelsanddiscuss
theircapabilities. TheeventwaswellreceivedandwillassistICEinitseffortsto
increaseopportunitiestoHUBZonecompanies.
? Face?to?FaceSmallBusinessMeetings.TheICESmallBusinessSpecialistperiodically
schedulesface?to?facemeetingsbetweenSmallBusinessvendorsandICEPersonnel
whohaveexpertiseinthevendors'corecompetencies,inordertomatchSmall
Businesscapabilitieswithagencyneeds.
? USSecretService,DHS.TheSecretServiceawardsalargenumberofcontractstothesmall
businesscommunity. TheSecretServiceparticipatesinmonthlyvendoroutreachsessions
withDHSforsmallbusinessesprovidinginformationondoingbusinesswithDHSagencies,
andinformationoncurrentandfuturecontractingopportunitiesattheSecretService.
? CustomsandBorderProtection(CBP),DHS.In2010,CBP’sOfficeofTradeRelations
expandedCBP’stradeoutreachcapabilitiesthroughtheuseofnewmethods,including
webinarsandwebcasting,toreachouttosmallandmedium?sizedbusinesses. Thesefree
webinarsareawayforourstakeholderstogetinformationonkeyCBPissuesimpacting
trade.
? Webcasting.CBPhasalsostartedtouselivewebcastingtoallowmembersofthetrade
communitywithconstrainedbudgetstoparticipateinCBPoutreacheventssuchasthe
CBPTradeSymposium. [email protected].
? DHSNationalProtectionandProgramsDirectorate’sOfficeofInfrastructureProtection’s
ContingencyPlanningandIncidentManagementDivision(CPIMD).Over33percentofall
Readinesscontractsupportisprovidedbysmallbusiness. Smallbusinessesprovidethe
following:
? ContractSupporttoAssistBuildingaFormalInformationManagementTrainingand
ExerciseProgram.ThetargetaudiencefortrainingandexercisesincludesmultipleDHS
components,aswellsasFederal,state,andCriticalInfrastructureandKeyResources
(CIKR)privatesectorpartners. Theestimatedannualthroughputofparticipants
attendingInfrastructureProtectionreadinesseventsiswelloverseveralhundredeach
31
year. InfrastructureProtectionmusttrainandexercisealltheseCIKRpartnerstobetter
understandandexecutetheirincidentmanagementroleswhichincludemaintaining
situationalawareness,assessingandanalyzingCIKRdata,sharingpertinentinformation
internallyandexternally,andrespondingtorequestsforinformationandassistance.
WhileeachInfrastructureProtectionDivisionisresponsibleforexecutionoftrainingto
meettheday?to?dayfunctionalrequirementsofthedivision,theIPReadinessfillsthe
capabilitygapforincidentresponse.
? ContractSupporttoAssistinBuildingaFormalExerciseProgramwithInfrastructure
Protection’sPartnershipOutreachDivision’s(POD)ProgramsandInformationSharing
Office. POD’sProgramsandInformationSharingOfficehasdevelopedaspecific
requirementtodevelopandexerciseStandardOperatingProcedures(SOP)for
establishingsector?specificInformationSharingEnvironments(ISE). AsthefiveSOPsare
completedwithineachsector,theSOPswillbevalidatedthroughadiscussion?based,
tabletopexercise,withanafteractionreport/improvementplanbeingdevelopedto
identifystrengthsandareasforpotentialimprovement.
? DHSInfrastructureSecurityComplianceDivision(ISCD).WithintheChemicalFacilityAnti?
TerrorismStandardsregulatoryframework,ISCDfrequentlyinteractswitharangeof
businessesfromverylargetoquitesmall.ISCDdoesn’thaveaspecificprogramdedicatedto
thisinteraction,butwetailoroureverydayinteractionstoassistanystakeholderthatneeds
helpinachievingcompliance,whichfrequentlyincludestheownersofsmallbusinessesin
theregulatedcommunity.
? Results.TheInspectionsandEnforcementBranchhasutilizedsixdifferentsmall
businessesforover$900,000inprocurements.
? LevelingthePlayingField.InkeepingwithOfficeofProcurementguidance,ISDCsought
toaccesssmallbusinessesinareasonableportionofISCD’snormalprocurement
actions,includingconductingaSourcesSoughtNoticetoseeifsmallbusinessescould
respondtoaprocurementrequestfortechnicalchemicalengineeringsupport.
32
IV.IncreasedU.S.Exportsthroughthe
NationalExportInitiative
TheNationalExportInitiativePromotesExportsbySmallBusinesses.OnMarch11,2010,the
PresidentestablishedtheNationalExportInitiative(NEI)byExecutiveOrdertohelpmeethis
goalofdoublingU.S.exportsover5yearstocreatemillionsofjobs.Smallbusinessesface
particularresourcehurdles,limitingtheabilityofmanytoparticipateinglobaltrade. For
example,smallandmediumenterprises(SMEs)aremorelikelytoneedexternalfinancingto
undertakeanexporttransaction,aparticularlydauntingtaskwiththetighteningofcredit
markets. Inaddition,SMEsfaceinsufficientknowledgeofforeignmarkets,incontrastwith
largerfirms’accesstomarketintelligenceanddirectpresenceintargetedforeignmarkets.
Finally,SMEsfacehigherrealandperceivedrisksofexporting. Theyhavefewerresourcesto
addresstradebarriers,andtheyarelesslikelytohaveadiversifiedforeigncustomerbase.
TheNEIaddressesthesechallengesthroughfivekeypriorities:
? Improvingadvocacyandtradepromotion,
? Increasingaccesstoexportfinancing,
? Reducebarrierstotrade,
? Enforcementoftraderules,and
? Promotionofstrong,sustainable,andbalancedgrowth.
In2010,thefirstyearoftheNEI,exportscontributedsignificantlytotheUnitedStates’overall
economicrecovery.U.S.exportsofgoodsandservicestotaled$1.83trillion,supporting10.3
millionjobs.
ImprovingAdvocacyandTradePromotion.UndertheNationalExportInitiative,theExport
PromotionCabinetandTradePromotionCoordinatingCommitteeagencieshaveincreased
theireffortstohelpU.S.companiesexportaroundtheglobe. Forexample,theAdministration
developedanenhancedclientintakeregistrationformonwww.export.gov,theFederal
government’sexportassistancewebportal. Theformenablesagenciestomoreaccurately
identifynew?to?exportandnew?to?marketU.S.companiesandreferthemtothemost
appropriateFederalresourcesforpersonalizedservice. Onceregistered,companieswillalso
receiveafreethree?monthsubscriptiontotheU.S.CensusBureau’sUSATradeOnlineandbe
positionedtoreceivecustomizedmarketinginformationinthefuture.
In2010,theObamaAdministrationhelpedU.S.smallbusinessesexportforthefirsttimeor
expandintonewoverseasmarketsthroughanumberofprograms:
33
? DepartmentofCommerce(DOC)TradeMissionsandTradeSupport.In2010,the
DepartmentofCommercecoordinated35trademissionsto31countrieswith401
participantsand$2billioninanticipatedexportsuccesses. Smallbusinessesrepresented79
percentofalltrademissionparticipantsfrom2008to2010. TheInternationalTrade
Administration’sU.S.andForeignCommercialServiceledthiseffort,withsupporton
specifictrademissionsfromtheDepartment’sEconomicDevelopmentAdministrationand
MinorityBusinessDevelopmentAgency.
? EconomicDevelopmentAdministrationTradeEvents.EDA,theU.S.andForeign
CommercialService(USFCS)andtheInvestinAmericaprogram(IIA)partneredtopromote
theObamaAdministration’sNEI,aswellasForeignDirectInvestment(FDI)intheU.S.,
throughinternationaltradeandinvestmentevents.Byfacilitatingdelegationsdrawnfrom
regionalinnovationclusters,EDAisaidingU.S.communitiesinpromotingtheirregionsas
attractiveplacestodobusiness,whilealsohelpingU.S.companiesidentifynew
internationalexportpartners.ThefirsttradeeventwastoHannover,GermanyinApril2010
andtookadvantageofHannoverMesse,theworld’slargestindustrialautomation
tradeshow. Asecondevent,atrademission,wastoLyon,France(leveragingthePollutec
tradeshow)andtoBrussels,BelgiumfromNovember28?December4,2010.
– NewTradeEvents.AsthesemissionshavesucceededingeneratingexportandFDIleads
forparticipants,theDepartmentplanstocontinuethetradeeventprogram,withevents
beingplannedin2011forearlyApriltoHannoverMesseagainandtoMontreal,Canada
inMay. TheMontrealeventwillfocusontheaerospaceindustry.
? USDATradeShows.Tradeshowsareone
InterfaceAssociates,Inc.(Irvine,CA)isa
ofthemosteffectivetoolstosuccessfully manufacturerofballoonsusedforheartsurgeries
andtheequipmentusedtomaketheballoons.
linkU.S.smallbusinessestoforeign
Interfaceemploys124people,anditsannual
buyersofagriculturalproducts.U.S.
salesare$20million,60%ofwhichare
pavilionsatinternationaltradeshows
international.InterfacesoughtEx?ImBank’s
createnationalidentityandvisibilityfor
assistancein2010whenbothitsprivate?sector
allU.S.exhibitors.InCY2010,USDA insureranditsforeignreceivableslenderleftthe
exportfinancearena.Thesolutionwasa$2
supportedU.S.Pavilionsat27
millionEx?ImBankguaranteedworkingcapital
internationaltradeshowsin19countries.
lineofcreditthroughSiliconValleyBank.
Asaresult,nearly1,000exhibitors,most
ofwhicharesmallandmediumsizedbusinesses,reported$179millionofon?sitesales,and
over$1billionofestimated12?monthsales.U.S.companiesintroducedover6,000new?to?
marketproducts,andmadecloseto16,000seriousbusinesscontactsatthoseshows.On
average,70percentofthecompaniesparticipatingintheseshowsweresmallcompanies.
? USDAReverseTradeMissions.USDAmadeincreasingthenumberofreversetrademissions
amajorfocusin2010. Thiscampaignbroughtmorethan2,400foreignbuyerstogether
withU.S.smallbusinessesaspartofmorethan240suchtrademissions.
34
? TheExport?ImportBankoftheUnitedStates(Ex?Im).Developedlargelyinconcertwiththe
mostforwardthinkingcorporations,banks,andinsurancecompanies,Ex?Imhasintimate
knowledgeoflegalsystems,accountingstandards,bankprotocols,countryrisk,buyercredit
riskandmarketconditionsinallofthesecountries.Ex?Imbringsthatknowledgetosmall
businesses,manyofwhom,havenootherwayofobtainingit.Ex?Imalsobringstheability
tofinancetheexporteraswellastheexporter’sforeignbuyer. Inordertoexpandthe
accessibilityofthisvalue,Ex?Imhasinitiatedthefollowing:
? BankandBrokerTraining:Ex?Imhasquadrupleditstrainingteamandisexpandingits
bankandbrokertrainingoptionstoincludemonthlytrainingsaroundthecountry,
includingonsitewithbanks. InadditiontotheDC?basedmain3daysession,Ex?Imis
creatingaone?day,two?dayand1and2hoursessions.Theoptionsincludeasystemof
regularwebinars.
Q?LabCorporation(Cleveland,OH)manufactures
testchambersandsurfaces,andprovidestesting
? EstablishmentofVeteransOutreach:In
services.Itsweatheringproductsandservices
2010,Ex?Imcreatedthenewpositionof
areusedbymaterialscientistsandtechniciansin
VeteransOutreachCoordinator.The numerousindustries.Thecompanyhas60
purposeistoreachouttoallveterans
employees.Q?LabhasbeenanEx?ImBank
policyholdersince2000,withtotalshipmentsto
andveteransgroupsandtoconnect
datetotalingover$23million,$3.4millioninthe
exportfinanceopportunitieswiththeir
past7monthsalone.Exportsareconcentratedin
knowledgeofforeigncultures,peoples
Asia;HongKongisthetopmarket.
andbusinesses.
? DirectCallingonMinorityandWomen?OwnedExporters:Inordertoexpedite
communicationwithMinorityandWomen?OwnedBusinesses,Ex?Imhasestablisheda
“smartdata?base”program.Theprogram,whichincludesdatafromTPCCagencies,is
designedtosupportdirectoutreachtoMinorityandWomen?Ownedexportersthrough
systematiccoldcallingbyexperiencedEx?ImBankexportfinanceofficers.While
targetingtheuseofEx?Im’stradecreditinsurance,theofficersarealsoincentivizedto
refertheexporterstotheappropriateDOCandSBAfunctionsasreflectedbythe
exporter’sneeds.
? Website.InordertosimplifyanddirecttheinquiriestotheEx?Im800numberandemail
contacts,Ex?Imreviseditssmallbusinesswebsite.Insteadofdirectingtheinquirytoa
productoradepartment,thesitedirectstheclientthroughaquicktriagetogettothe
informationthatheorshewouldwantinthenormalconductofdevelopingaproductor
serviceforexport.Formoreinformationpleasevisit,
http://www.exim.gov/smallbusiness/.
? TheMarketDevelopmentCooperatorProgram(MDCP).ThisDOCprogramisdesignedto
expandU.S.exportsandsupportsthePresident’sNationalExportInitiative. TheMDCP
providesFederalfinancialandtechnicalassistancetotradeassociations,chambersof
commerce,andotherindustrygroupsthatareparticularlyeffectiveinreachingand
35
assistingSMEs. MDCPpartnershipshelptounderwritethestart?upcostsof
competitiveness?enhancementprojects,whichthesegroupsareoftenreluctantto
undertakewithoutFederalGovernmentsupport. SincetheprogrambeganinFY1993,
MDCPawardwinnershavegeneratedmorethan$3billioninexports. Whenallprojects
fundedbetween1993and2009arecompleted,theprivatesectorwillhaveinvestedmore
than$80.2milliontoincreaseglobalcompetitivenessasaresultoftheU.S.Government’s
$29.3millionexpenditure.
EvergreenBuildingProductsAssociation(EBPA)
? USDATechnicalAssistanceforSpecialty andVanportInternationalInc.
Crops(TASC)Program.Duetoan
EBPAconsistsofbuildingmaterials
extensiveoutreacheffortbyUSDAin
manufacturers,distributors,andservice
2010targetingtheU.S.horticultural
providersrepresentingwoodandnonwood
industry,theTASCprogramallocated
buildingmaterials.Theassociationisbasedin
morethan$7.3million(arecord)inFY
Tacoma,WAbuthasmembersthroughoutthe
2010to26organizationsrepresenting U.S.EBPAfocusesonenergyefficiencyand
earthquakeresistantbuildingtechnologies.
hundredsofsmallbusinesses.TASC
EBPAishelpingU.S.firmsfindcustomersin
workstoopen,retain,andexpand
China’ssecond? andthird?tierChinesecitesby
exportmarketsforU.S.specialtycrops.
leadingtechnicalseminarsandtrademissions.
EBPAorganizesanannualU.S.pavilionata
Chinagreenbuildingshow.Itidentifiespotential
? NationalOutreachCampaign. Inthe
buyersforU.S.products,influencesChina
2010NationalExportInitiativeReportto
buildingcodesandstandards,andprovides
thePresident,theExportPromotion
marketinformationtoU.S.firms.
Cabinetrecommendedanational
outreachcampaigntoinformand
ThroughEBPA’sawardandMDCP’smatchof
$297,000,VanportInternational,Inc.,developed
engagesmallbusinessesinexporting.
ninenewcustomersinChina.Thesenew
In2010and2011,federalagencieshave
customersregularlybuy$500,000to$700,000
embarkedonanumberofcoordinated
inwoodproductseachmonth.TheOregon?
outreacheventstoachievethisgoal: basedcompanyhascreatedormaintainedat
least48jobsduetosalestothesenew
customersinChina.
– USDASMELinkstoCanada.In
September,USDAhostedamajor
eventforU.S.smallandmediumsizedbusinessesinCanada. USDAstaffhighlightedthe
centralrolethatCanadaandsmallbusinessesplayinNEIsuccess,encouraging
expandedsmallbusinessoutreachinthatmarket.InToronto,FASpresentedan
overviewofNEIatthe“CanadaConcepts,”anannualstrategicplanningseminarforU.S.
agriculturaltradegroups,includingStateDepartmentsofAgriculture.
– GlobalAccessforSmallBusiness. OnJanuary13,2011,Ex?ImBanklaunchedSmall
BusinessGlobalAccessinpartnershipwiththeNationalAssociationofManufacturers,
theU.S.ChamberofCommerce,andseveralfinancialinstitutionsEx?Imissponsoring
morethan20GlobalAccessforumsforsmallbusinessesaroundthecountryin2011.
Theybringexporterstogetherwithbanklenders,insurancebrokers,otherTPCC
agenciesandEx?Imexportfinancespecialistsforone?on?onetraininginEx?ImBank
36
financeandinsuranceproducts. MembersofCongressareengagedinco?sponsoring
manyoftheseevents.Over2,000smallbusinessesaretargetedtoattendduringin
2011. Inaddition,tohelpmeettheambitiousgoalsofGlobalAccess,Ex?Imisalso
holdingseveralwebinarsthroughouttheyearandhasdevelopedanewsmallbusiness
portalontheBank'swebsite.
– NewMarkets,NewJobs:NEISmallBusinessNationalTour: TheExportPromotion
Cabinethasembarkedonamulti?cityexportoutreachcampaignorganizedbythe
DepartmentofCommerce,intendedtoreachover3,500smallandmid?sizecompanies
topromotetheNEI. ParticipatingagenciesincludetheDepartmentsofCommerceand
Agriculture,SBA,USTDA,Ex?ImandUSTR.
? ExporTechProgram.Forthepast4years,theDepartmentofCommerce’sManufacturing
ExtensionProgram(MEP),housedwithintheNationalInstituteofStandardsand
Technology,andU.S.ExportAssistanceCenters(USEACs),housedwithintheInternational
TradeAdministration,havehelpedmanufacturersincreasetheirexportswiththeExporTech
program. Theprogramassistsmanufacturersindevelopinganinternationalgrowthplan,
andprovidesexpertswhovetcompanyplansandconnectthecompanieswithFederal,
stateandlocalorganizationsthatcanhelpthemmovequicklybeyondplanningtoactual
exportsales. ExporTechisdeployednationallyasacollaborationbetweenMEP,USEACs
andotherpartners,includingDistrictExportCouncils,StateTradeandEconomic
Developmentagencies,Export?ImportBank,SBAandtheAppalachianRegionalCommission.
HelpingMinority?OwnedFirmsExport.InsupportofthePresident'sNationalExportInitiative
todoubleU.S.exports,MBDAisfocusedonhelpingminority?ownedfirmstoexport. Minority?
ownedfirmsarealreadytwiceaslikelytoexportcomparedtonon?minority?ownedbusinesses.
Helpingoureconomygrowrequiresaccesstoforeignmarketsandimprovingtheabilityand
competitivenessofminority?ownedcompaniestoselltothesemarkets.
? TradeEvents.MBDAhasincreasedpromotionoftradeeventsandinternationaltradefairs
withminoritybusinesses,suchastheCommerceSecretary’sTradeMissiontoIndiaandthe
HannoverMesseInternationalTradeFairinHannover,Germany. Inaddition,MBDAis
partneringwiththeInternationalTradeAdministration(ITA)totrainBusinessDevelopment
Centerstaffoncounselingminoritybusinessenterprisesonexporting,developingreferral
relationshipswithITA’sU.S.ExportAssistanceCenters,andpartneringwiththeOverseas
PrivateInvestmentCorporation(OPIC),Export?ImportBankandtheU.S.Tradeand
DevelopmentAgency(USTDA)toopentheglobalmarketplaceforproductsandservices
fromtheminoritybusinesscommunity.
? ContinuedSupport.MBDAwillcontinuetoencourageitsdatabaseofminority
entrepreneurstoparticipateintheglobalmarketplacebydevelopingaglobalstrategy
37
forbusinessdevelopmentandbyleveragingthenaturaladvantagesofMBEsonthe
internationalstage.
? DOCTaskForceonChina.MBDAhasplayedaleadershiproleintheCommerce
Department’seffortstoengagethePeople’sRepublicofChina. MBDAunderstandsthe
importanceofexportstoAmerica’seconomicrecoveryandjobcreationandtheneedto
connectsmallandmedium?sizedbusinesseswithforeignbuyersinordertoassistthemin
sellingmoreoftheirproductsoverseasandhiringmoreworkersinAmerica.
? CommerceConnect.CommerceConnectisaU.S.DepartmentofCommerceinitiative
launchedbySecretaryofCommerceGaryLockeinOctober2009tomakebusinessesmore
competitiveandcreatejobsbybetterintegratingtheCommerceDepartment’sbusiness
services. MBDAhasaggressivelysupportedthisinitiativebyprovidingseniorstaffmembers
toassistwiththedevelopmentandrolloutofthisinitiativeinthefield.
? NewPilotLocations.MBDAwillcontinuetosupportCommerceConnect’smissionof
assistingbusinessesateverypointoftheirlifecyclebytrainingallMBDABusiness
CenterstobeCommerceConnectserviceproviders.Thisactionwilladd30additional
sitestotheCommerceConnectnetwork.
IncreasingAccesstoExportFinancing.Accesstocreditremainsamajorissueforexporters,
especiallysmallbusinesses. Thetradefinanceagencies–SBA,Ex?ImBank,andUSDA–have
takenstepstoexpandormaximizetheuseoftheirexportcreditprograms.
? IncreasedTradeSupportthroughtheSmallBusinessJobsAct.TheSmallBusinessJobsAct
providesforincreasedSBAsupportforsmallbusinessexports.Selectprovisionsinclude:
– APermanentExportExpressLoanProgram.TheExportExpresspilotloanprogram
becameapermanentprogramwith90percentguaranteesforloansupto$350,000and
75percentforloansupto$500,000.
– PermanentHigherLoanLimitsforExportWorkingCapitalProgram(EWCP)and
InternationalTradeLoans.TheActsignificantlyincreasesthemaximumloansizesfor
EWCPandInternationalTradeLoansto$5million.
– StateTradeandExportPromotion(STEP)GrantsPilot.Thelawauthorized$30million
peryearforthenextthreeyearsincompetitivegrantsforstatestoassistbusiness
ownerstoexpandtheirexporting.
? AWinningTrackRecord.SinceFY2005SBAhassupportedmorethan15,000international
trade?relatedloansworthover$4billionandhastrainedandcounseledinexcessof30,000
smallbusinessesoninternationaltradetopics.
38
? NewServicesfromtheExport?ImportBankoftheUnitedStates.In2010,theEx?ImBank
generated$5.0billioninauthorizationsforsmallbusinessesupfromthe$3.2billionin
2008.Theserepresentover20percentoftotalEx?Imauthorizations.Smallbusiness
approvalshavenumberedover85percentofallauthorizations,risingfromatotalof2328
in2008to3091in2010. In2011theBankisontrackfora20percentincreaseto$6billion.
InadditiontoitstraditionalShort,Medium,andLongTermLoan,GuaranteeandInsurance
productsforexportersandtheirbuyers,Ex?Imhasinitiatedthefollowingprograms:
– SupplyChainFinance.Devisedasanewproductin2010,theSupplyChainFinance
facilityenablessmallbusinesssupplierstolargeexporterstoborrowatreducedrates,
minimizetheirneedforborrowing,maximizecashflow,andmorepreciselymanage
theirrisk.Ex?Imhasalreadyapprovedabout$500millioninthesefacilitiesforsuppliers
totwolargeU.S.exporterswhichwill
makecreditavailabletoover1,000of
Dan’sFish,Inc.(SturgeonBay,WI)hasgrown
theirsmallbusinesssuppliers. tobeWisconsin'slargestexporterofGreat
Lakesfishandcaviar,sellingprimarilyto
SwedenFinland,andEstonia.Foundedin
– ExpressInsurance.Designedin2010
1994,this15?personcompanyutilizesa
specificallyforsmallbusinesses,Express
$500,000Ex?ImBankinsurancepolicy
Insurancereducesthetimeframeandthe
togetherwitha$500,000SBAExportWorking
complexityofinsurancethatsmall Capitalloantofunditsworkingcapitalneeds.
Inpolicyyear2010,theyreportedexportsof
businessesobtaintoprotecttheirexport
$3.3millionascomparedto$2.2millionin
receivablesfromforeignbuyerand
exportsthepreviousyear.
countryrisk. Theapplicationisreducedby
half,theproductissimplifiedandthetargetturnaroundtimeforaquoteis5days.The
productishasalreadybeenfinalizedandisexpectedtogenerateover$250millionin
authorizationsayearoncefullydeployed.
? USDASupportforSMEs.USDAmarketdevelopmentprogramssupporttheeffortsofU.S.
companies,includingsmallbusinesses,tobuildandmaintaincommercialmarketsoverseas
forhundredsoffoodandagriculturalproducts.USDA’spartnersindevelopingtradeatthe
statelevelspecificallyfocusonsupportingsmallandmediumsizedbusinessexportefforts.
InCY2010,throughitspartnershipswithStateDepartmentsofAgriculture,USDAallocated
$29.1millionto802smallU.S.agriculturalcompaniestocarryoutpromotionsoftheir
brandedproductsaroundtheworld. Theseprogramsaresomeoftheinitiativesandtools
designedforU.S.smallbusinessestoincreasetheirpresenceoverseas.
39
– USDATradeFacilitationDesk.InresponsetoconcernsofU.S.agribusinesses,including
smallbusinesses,USDAlaunchedaTradeFacilitationDesk(TFD)tohelpclarifyand
identifythedocumentationrequiredtosuccessfullyexportfoodandagricultural
products.TheTFDservesasan“ombudsman”andkeypointofcontactforexporters,
smallandlarge,seekingassistanceandguidanceonourtradingpartners’import
requirements.TheTFDalsoprovidesassistancewithshipmentsthataredetainedat
portofentry,includingexpeditiousoutreachtoforeigngovernmentsandU.S.
regulatoryagenciestominimizethecostsassociatedwithdetentionoftheshipment.
– USDAExportCreditGuarantee(GSM?102)Program.TheGSM?102Programprovides
creditguaranteestoencouragefinancingofcommercialexportsofU.S.agricultural
products. InCY2010,theGSM?102Programfacilitatedtheexportofapproximately
$3.2billioninagriculturalproducts.Incontinuedeffortstoexpandknowledgeanduse
oftheGSM?102Program,USDAimplementeda“contacttheexporter”procedure
benefittingsmall,new?to?exportfirms. Thisprocedureoffersassistanceinusingthe
programandintroducesfirmstoacontactperson,whocanprovidenecessary
informationforsuccessfulprogramusage.
JointEfforts.USDAalsoincreaseditseffortstoreachsmall,new?to?exportbusinessesin
collaborationwithotherU.S.Governmentexportfinancepartners.USDAstaffparticipatedin
jointseminarsandconferenceswiththeEx?ImBank,theSBA,andtheDOC.Thesejointefforts
haveenhancedinteragencycoordinationonexportfinanceandensuredthatconference
participants(includingexportersandfinancialinstitutions)aremadeawareofthefullgamutof
U.S.Governmentexportfinanceopportunities.
InternationalSmallBusinessCollaboration.TheObamaAdministrationunderstandsthatitis
difficultforsmallbusinessestomakeconnectionsoverseas.Theseprogramshelptoremedy
thatproblem.
• MiddleEastPartnershipInitiative.SBAOfficeofInternationalTradereceiveda2008Middle
EastPartnershipInitiative(MEPI)grantfromtheStateDepartmenttoassistwomenowned
smallbusinessesintheMiddleEast.TheSBAhascurrentlysignedMOU’sforcollaboration
withOman,Bahrain,andTunisia.SBAismovingforwardandhelpingbuildprogramsinthe
threecountriesthatsupportsmallbusinessthroughcounselingandcapitalinitiative
modeledonSBA’ssuccessfulprograms.
• SBAInternationalVisitorsCenter.TheSBAInternationalVisitorsCenterworkscloselywith
foreigndignitariesandbusinessleaderstoprovidekeyinformationontheU.S.economy
andSBA’suniquesupportstructureforsmallbusinesses.InFY2010theofficemetwithover
1,000visitorsfrom115countries,452ofthevisitorsfromChina.Additionally,theofficehas
metwithover900visitorsfrom42countriesthusfarinFY2011(asof4/30).
40
• RussianFederationMOU.SBAsignedanMOUwiththeRussianFederationMinistryof
EconomicDevelopmentinMarch2010forbilateralcooperationonissuesrelatedtoSmall
andMediumEnterprises.
ReduceBarrierstoTrade.UndertheNationalExportInitiative,theAdministrationhasmadea
renewedefforttoreducebarrierstooverseasmarkets,particularlyoverseas. Tariffbarriers,
burdensomecustomsprocedures,discriminatoryorarbitrarystandards,andlackof
transparencyrelatingtorelevantregulationsinforeignmarketspresentparticularchallenges
forourSMEssellingabroad.
? NewAssistantU.S.TradeRepresentativeforSmallBusiness. OnJanuary21,2010,
AmbassadorKirkdesignatedanAssistantU.S.TradeRepresentativeforSmallBusiness,
MarketAccessandIndustrialCompetitiveness. Thisnewattentiontosmallbusinessissues
willenhanceworkonmarketaccessandindustrialcompetitivenessissues.
? PendingFreeTradeAgreements. TheAdministrationhasresolvedoutstandingissueswith
thependingtradeagreementswithKorea,PanamaandColombia,andisworkingin
cooperationwithCongresstosecureapprovaloftheselandmarkagreementsassoonas
possible. TheseagreementswillopentheseimportantmarketstoU.S.exportersby
loweringdutiesonmanyU.S.exports,andaddressingnon?tariffbarriersthatimpactmany
smallbusinesses.
? Trans?PacificPartnership. TheTrans?PacificPartnership(TPP)isakeyinitiativethrough
whichtheAdministrationseekstoadvancetheUnitedStates’multi?facetedtradeand
investmentinterestsintheAsia?Pacificregion,bynegotiatinganambitious,21stregional
tradeagreement. Inadditiontothehigh?standard,marketopeningelementsofcurrent
U.S.tradeagreements,theTPPwillfeaturecross?cuttingissuesnottackledinprevious
tradeagreementsincludingstrengtheningsmallandmedium?sizedenterprisesthrough
greaterparticipationininternationaltrade.
? Commerce’sTradeAgreementsComplianceProgram.SincethestartoftheNEI,the
DepartmentofCommerce’sTradeAgreementsComplianceProgramhasinitiated91
investigationsofforeigntradebarriersaffectingsmallbusiness,andsuccessfullyresolved
53. Examplesincluderemovingtheburdensomeandnon?transparentChinesecertification
requirementsaffectingaYork,Pennsylvania,specialtyrefrigeratorcompany,andensuring
thatChileprovidesproceduresforallU.S.companiestoobtainadvancerulingsoncustoms
matters,increasingpredictabilitywhichisparticularlyusefultoresource?constrainedsmall
businesses.
? ProtectingIntellectualPropertyRights(IPR).TheDOChasundertakennumerousactivities
toassistSMEstoprotectandenforcetheirIPR,bothintheUnitedStatesandabroad.The
DOClaunchedwww.stopfakes.govtoenablebusinessestofilecomplaints,concerns,and
41
questionsaboutIPR?relatedtradeproblems,whichareansweredwithintendaysbyatrade
specialistfromtheOfficeofIntellectualPropertyRights. TheDOCalsoestablishedthe1?
866?999?HALThotlineansweredbyU.S.PatentandTrademarkOffice(PTO)IPRexperts,
whoworkwiththeOfficeofIntellectualPropertyRightstohelpbusinessessecureand
enforcetheirIPRthroughinternationaltreaties.
? RussianFederation/NewStrategicArmsReduction(START)Treaty. NewSTARTTreaty
representsthemostsignificantarmscontrolagreementinnearlytwodecadeswas
passedinabipartisanfashion.Indoingso,theGovernmenthasstrengthenedAmerican
leadershiponnon?proliferationissues,reinforcedourrelationshipwithavitalally,and
madeourcountrysafer.Asapartofthisrelationship“reboot”,SBAsignedanMOUwiththe
RussianFederationonSMEcollaboration
RobustEnforcementofTradeRules.TheObamaAdministrationisfullyawarethateffortsto
enhanceU.S.commercialcompetitivenessandtomaximizethepotentialofU.S.exporterscan
bethwartedbymarketdistortingunfairtradepracticesofforeigngovernmentsandfirms.
EnsuringthatU.S.companiesandworkershavetheopportunitytocompeteonalevelplaying
fieldisthuscriticaltoadvancingbusinesscompetitivenessintheU.S.andabroad,andisakey
componentoftheNEI.
TheAdministrationactivelymonitorsforeigngovernmentcompliancewithtradeagreementsto
whichtheUnitedStatesisapartyandpursuesenforcementactions,usingdisputesettlement
proceduresandapplyingthefullrangeofU.S.tradelawswhennecessary.
? AntidumpingandCountervailingDutyLaws: Attheendof2010,Commerce’sImport
Administration(IA)maintainedapproximately300antidumping(AD)andcountervailing
duty(CVD),coveringover120productsfrom40countries. Roughly36percentofthese
ordersareonproductsfromChina.
? CounselingSMEsaboutRecoursefromUnfairTradeLaws:Smallandmediumsize
enterprises(SMEs)andtheirworkersareacriticaldriverofgrowthandinnovationinthe
U.S.economy. Becausesuchfirmsareoftenunawareoftherangeofreliefthatthe
AD/CVDlawscanprovidetoremedytradedistortingpractices,IA’sPetitionCounseling
andAnalysisUnitregularlyadvisesSMEsabouttherecoursethattheunfairtradelaws
canprovide.InFY2010,IAconductedover100ofthesetypesofcounselingsessions
withU.S.companies,overtwo?thirdsofwhichwerewithSMEs. Inaddition,IAprovided
assistancetonearly100exportersfacingforeigntraderemedyactions. These
companiesincludemajorU.S.manufacturers,small? andmedium?sizedexporters,and
producersofkeyagriculturalexports. Together,thesefirmsemploymorethan1.6
millionAmericansandhavesubstantialoperationsinmorethan35states.
42
MacroeconomicSupportforExpandedExporting.InadditiontoU.S.productivitygrowthand
exportcompetitiveness,themostsignificantdeterminantofU.S.exportgrowthoverthenext
fewyearswillbetheeconomicgrowthofitstradingpartners.Intheshortterm,workingto
sustainastrongglobaleconomicrecoveryislikelytodeliverthebiggestcontributiontoU.S.
exportgrowth.ButthiswillrequireconcertedandcontinuedeffortsbytheUnitedStatesand
itsG?20partnerstoensurethattheglobaleconomyshiftssmoothlytomorediversifiedsources
ofeconomicgrowth.Overthemediumandlongerterm,thecompositionofeconomicgrowth
intheUnitedStates’tradingpartnerswillalsobecrucialtoU.S.exportgrowth.Abroadrangeof
countriesneedtotakepolicyactionsthatreducetheirsurplusesbystimulatingdomestic
demand(especiallyconsumption),therebyincreasingtheirdemandforimports.Strong,
sustainable,andmorebalancedglobalgrowthiscrucialtoU.S.exportgrowth.
43
V.EnhancedDevelopmentandEducation
OpportunitiesforEntrepreneurs
DevelopmentProgramsforEntrepreneurs.IndiscussionswithentrepreneursacrosstheU.S.,
theObamaAdministrationhaslearnedthatmanytimessmallbusinessesandentrepreneurs
needmentorsandpartnershipsinordertocontinuetogrow.Buildingoffthoseconversations,
thePresidenthasimplementedtheseprogramstoconnectentrepreneurswithexperienced
individualsandorganizationssotheycanfurtherdeveloptheirbusinessandcreatejobs.
PaulineLewisofOovooDesigndidn’tfullyrealizehowlife?
changingoneintroductoryclassattheWomen’sBusiness
? SBAnetworkofover14,000
andSmallBusinessDevelopmentCenterinSpringfield,
CounselorsProvide
Virginiacouldbewhenshesignedupfouryearsago.Within
CounselingandTrainingto
weeksoftakingtheclass,shequitherdayjobasasuccessful
U.S.SmallBusinesses.Over
internationalmarketresearcherandheadedeastona
1.5millionentrepreneursand backpackingtripthroughVietnam.DuringhertripPauline
wasinvitedtoobserveawomen’scooperative.“Fromthe
smallbusinessownerswere
momentIsteppedintothesmallhousewhereeightwomen
counseledortrainedinFY
weresittinginanembroiderycircle,IknewthatIwantedto
2010throughSBAsvast
workwiththem.IknewrightthenandtherethatIwould
network.
haveacompanythatincorporatedembroidery,forwomen
bywomen.”TheseedsofwhatshelearnedbackinVirginia
duringherclassattheWomen’sBusinessCenterstartedto
– SCORE,Counselorsto
takerootinVietnamandOovooDesignwasborn.
America’sSmallBusiness.
SCOREhasover11,000
Now,Paulinehassuccessfullyco?designed,marketed,and
volunteersthatbring
soldheruniquehandbagsforsevenseasons.Shesellstoover
practicalexperienceto 500boutiques,galleries,andmuseumstores.Inadditionto
creatinganichemarketofhand?craftedartisanbags,Oovoo
smallbusinessesandto
Designisasociallyresponsiblecompanythatcontinuesto
entrepreneursthinking
workwithwomen’scooperativesinVietnam.Paulineplans
aboutstartinganewsmall
toexpandOovooDesignintootherproductcategoriesand
business.
workwithwomen’scooperativesinCambodiaandLaos.
– SmallBusinessDevelopmentCenters(SBDCs).SBDCsprovidefreeorlow?cost
assistancetosmallbusinessesusingprogramscustomizedtolocalconditions. SBDCs
offercounselinginmarketingandbusinessstrategy,finance,technologytransfer,
Governmentcontracting,management,manufacturing,engineering,sales,accounting,
exporting,andothertopics. SBDCsarefundedbygrantsfromtheSBAandmatching
funds.Therearemorethan900SBDCswithatleastoneineverystateandterritory.
– Women’sBusinessCenters(WBCs).WBCisalargenetworkthroughouttheUnited
States,offeringwomenentrepreneurs,especiallythosethataresociallyoreconomically
disadvantaged,comprehensivetrainingandcounselingtohelpthemstartandgrow
theirownbusiness.InFY2010,fournewWBCswerelaunched,bringingthetotalto110
44
centersnationwidethatoffertrainingtechnicalassistance,andadvicethatwomen
entrepreneursneed.
– SupportforVeterans.SBAprovidesextensivesupportforveteransthrough
collaborationwithVeteransAffairsforcross?trainingonveteranprograms;Allofthisis
throughtheVeteransTaskForce.
? ProjectGATE.ProjectGATE(GrowingAmericaThroughEntrepreneurship)wasinitiatedin
2002toemergingentrepreneurscreate,sustain,and/orexpandtheirexistingsmall
business. Approximately4,200individualsinMaine,Pennsylvania,andMinnesotareceived
GATEProgramservicesinanexperimentalresearchproject(importantly,theoriginal
projectGATEwasnotlimitedtounemploymentinsurancerecipientsoreventothe
unemployed). ProjectGATEwasfoundtoincreasethespeedofbusinessopeningamong
participants,andtoincreasethelongevityoftheirbusinesses,althoughitdidnotincrease
overallearningswhenconsideringearningsfrombothselfemploymentandwageandsalary
work. Theprogram’sevaluationalsoconcludedthatitssalutaryeffectswereparticularly
strongamongworkersreceivingunemploymentinsurancebenefits,andsuggestedthatthe
programcouldbereplicatedonawiderandcost?effectivescale.Howevertheprogram
evaluationalsonotedtailoringtheoutreachtoassessspecificcommunityinterestand
needs,andidentifyingexistingcommunity?basedorganizationswithwhichtopartner,
wouldneedtobeapriority
– ProjectGATEII.ProjectGATEIIbeganinJuly2008,withgrantawardstofourstates–
Alabama($1milliontoserve600participantsstatewide),NorthCarolina($1.6millionto
serve720participantsin9ruralcounties),Virginia($1.9milliontoserve225participants
inNorthernVA),andMinnesota($2milliontoserve500participantsstatewide). Unlike
ProjectGATEdemonstrations(availabletoallapplicantsintheoriginaldemonstration
sites),servicesunderthenewprogramweretargetedtowardsdislocatedworkers. Two
states(ALandNC)wereselectedtotargetservicestoruraldislocatedworkerswhiletwo
other(VAandMN)targeteddislocatedworkers50yearsandolder.
– Minnesota.MinnesotaparticipatedinbothProjectGATEandGATEII. Duringboth
iterations,SmallBusinessDevelopmentCenters(SBDCs)inbothMinneapolisandDuluth
connectedGATEparticipantswithSCOREcounselorstoserveasmentorstowardsthe
endofthetraining. Oneofthelessonslearnedwasthattheseconnectionsweremore
successfulwhenparticipantswereintroducedtoSCOREcounselorsearlierinthe
process. Mentoringismosteffectiveatthepointofbusinesscreationandinitialstart?
up,whenbusinessownershavethegreatestnumberofquestionsaboutbookkeeping,
marketing,andotherissues. EarlierintegrationofSCOREmentoringhasbeenafocusin
MinnesotaduringGATEII.
– Maine. ThelocationsservedundertheoriginalProjectGATEincludedthreeruralareas
inMaine. Attheselocations,trainingwasfrequentlydeliveredusingdistance?education
techniques,includingclassesconductedviawebinarandconferencecall. Theseservices
45
werehighlysoughtafterandwell?regarded,andcouldprovideamodelforproviding
traininginremoteareas,especiallyastheAdministrationpressesforwardwitheffortsto
expandaccesstobroadbandinternetinruralareas.
– Virginia. InVirginia,ProjectGATEIIservicesarebeingofferedaspartofthefullmenuof
resourcesavailabletodislocatedworkers(inthiscase,onlythoseover50). Virginiais
alsohosting“entrepreneurclub”sessionsforGATEIIparticipants. Thesesessionsallow
participantstomeetweeklytodiscusstheirstartups,buildingasenseofcommunityand
camaraderie. Theyhavealsoinvitedlocalbusinessownerstomakepresentationson
topicssuchastaxes,insurance,marketing,etc. Attendancehasbeenexcellenttodate.
– NorthCarolina.NorthCarolinaisusinglocalcommunitycollegesasthemainservice
providertodeliverGATEIIservicestoruraldislocatedworkers. Thelocalworkforce
investmentboard(LWIB)refersdislocatedworkersinterestedinGATEIItothe
communitycollegeforclasses. NorthCarolinahasestablishedanentrepreneurship
trainingnetworkwithinthestatethatleveragesinexpensivecommunitycollegetraining
asthemainfocalpointoftheprogram. Enrollmentinthisprogramhasfarexceeded
expectations.
ProgramsforTraditionallyDisadvantagedGroups.Theseprogramsandinitiativesoffer
traditionallydisadvantagedsocioeconomicgroupsresourcestostartordeveloptheirown
business.
JenniferLynch,ThePortlandSmoothieCompany
? StrengtheningProgramsthatReach
“AssoonasIshoweduptoMCNW(MercyCorps
WomenBusinessOwners. InOctober
Northwest)andenrolledinthefoundations
2010,theSBA,NationalWomen’s
businessclasswith25otherpeopleandbegan
BusinessCouncil,andtheWhiteHouse
talkingaboutmyidea,allofasuddenitbecame
morethanjustanidea.Itbecamesomethingthat
CouncilofWomen&Girlsco?hostedthe
Icouldactuallydo.
WhiteHouseWomen’sEntrepreneur
Conference.Sincethen,SBAhas
IwaslivinginNewYorkandIhadacareerthere
continuedregionaleventsacrossthe
until,justlikeeveryoneelse,Igotlaidoff. I
neededahugechangeinmylife,soIleftallthat
countrytoheardirectlyfromwomen
behindandcameheretoOregon.Ijustdecided
whoarebuildingandgrowing
thatthelittleideaIhadinmyheadforsolong
companiesinmanyindustrysectors. In
wasmaybeanideaIshouldacton. Myhighest
2010,afterreceivingextensivepublic
salesdaywasonareallyhotdayinsummerwhen
comment,SBApublishedafinal
IprovedthatIcanhandleitallonmyown.
comprehensiveruleimplementingthe
Intheshortterm,Idefinitelywanttogrowthe
statutorily?authorizedprogramtocreate
businessandhireemployees.Inthelongterm,my
additionalopportunitiesforwomen?
largergoalisaBedandBreakfastwithafarmto
ownedsmallbusinessestoparticipatein
tableorganicvegetarianrestaurant.”
Federalprocurement.In2009,women?
46
ownedsmallbusinesseswon$16billioninFederalprojectsandthisnewprogramwill
enablegreaternumbersofwomen?ledcompaniestocompeteforpotentiallybillionsof
Federalcontractingdollars.
? DOCReportonWomen?OwnedBusinessesinthe21
st
CenturyfortheWhiteHouse
CouncilonWomenandGirls.Thisreport,issuedOctober2010, documentsthechangesin
women?ownedbusinessesovertime,exploresdisparitiesinthecharacteristicsof
businessesownedbywomenascomparedtothoseownedbymen,anddiscussespotential
reasonsforthesedisparitiesandthedifferentoutcomesthatareassociatedwiththem.The
focusisonproprietorships,partnerships,oranytypeofprivately?heldcorporationwithone
ormoreownersandpubliclyheldcompaniesarenotincluded.Thisreportisavailablefor
downloadatwww.esa.doc.gov/sites/default/files/reports/documents/women?owned?
businesses.pdf.
? GrowthRates.Thenumberofwomen?ownedbusinesseshasgrownovertime.Between
1997and2007,thenumberofwomen?ownedbusinessesgrewby44percent,twiceas
fastasmen?ownedfirms,and,asfoundinWomen?OwnedBusinessesinthe21
st
Century,theyaddedroughly500,000jobswhileotherprivately?heldfirmslostjobs.In
part,thisisbecausewomen?ownedfirmsweremorelikelytobelocatedinindustry
sectorsthatexperiencedemploymentgrowth,suchashealthcareandeducation
services.
? MinorityWomen?OwnedBusinesses.Betweentheyears1997and2002,thenumberof
businessesownedbyminoritywomenincreasedfasterthanthoseownedbynon?
minoritywomen,withminoritywomen?ownedfirmsaccountingformorethanhalfof
theincreaseinwomen?ownedbusinesses.
? Size.Women?ownedbusinessesaretypicallysmallerthanmen?ownedbusinesses.
Althoughwomenown30percentofprivately?heldbusinesses,thesebusinessesaccount
foronly11percentofsalesand13percentofemploymentamongprivately?held
companies.Averagesales/receiptsforwomen?ownedbusinessesareonly25percentof
averagesales/receiptsformen?ownedbusinesses.However,women?ownedbusinesses
areconcentratedinindustrysectorswherefirmsaretypicallysmaller.
? MethodsofFinancing.Therearesubstantialdifferencesinthefinancingutilizedby
women?ownedversusmen?ownedbusinesses.Womenstartwithlesscapitalthanmen
andarelesslikelytotakeonadditionaldebttoexpandtheirbusinesses.Theyaremore
likelythanmentoindicatethattheydonotneedanyfinancingtostarttheirbusiness.It
isdifficulttodistinguishpreferencesfromconstraintsinthesedata.Forinstance,
womenmayencounterlessfavorableloanconditionsthanmen.Theymaybeless
willingtotakeonriskbyseekingoutsidecapital.
47
? PortraitsofWomenBusinessOwners.Thecharacteristicsofself?employedwomenare
similartothoseofself?employedmen.Comparedtothenon?self?employed,self?
employedwomenandmenareolder,morelikelytobemarried,andlesslikelytohave
childrenathome.However,womenwhoareself?employedworkfewerhourson
averageintheirbusinessthanself?employedmen.
? IncreasingSupportforVeteranSmallBusinessOwnership. SBAlaunchedanInteragency
TaskForceonVeteransSmallBusinessdevelopment,includingmembersfromOMB,the
DepartmentofLabor(DOL),GSA,DOD,VAandTreasury,aswellasfourpublicmembers.
SBAalsolaunched,inpartnershipwithSyracuseUniversity,andin?depthsmallbusiness
counselingandtrainingprogramforveteransandtheirfamilies.
? SupporteffortstoincreaseYouthEntrepreneurship. SBAhaslaunchedeffortin
conjunctionwiththeWhiteHousetofocusontheneedsoftheyoungentrepreneursto
createabetterenvironmentforyoungbusinessleaders. Specifically,theSBAisfocusedon
learningtheirneeds,andconnectingthemwithourresources.
– EmpoweringYoungEntrepreneursNYCEvent.InconjunctionwiththeWhiteHouse
OfficeofPublicEngagementandRussellSimmons,SBAwillhostaneventinNewYork
City,tocelebrateandpromotethelaunchofabroadernationwideinitiativefocusedon
youngentrepreneurs. Theproposedagendaprovidesforarobustconversationof
currentresources,additionalneedsofthiscommunity,andanexcitinglaunchofa
broaderinitiative.
? EmergingLeadersProgram(formerlyEmerging200ore200).TheEmergingLeaders
ProgramidentifiesSMEsthatshowahighpotentialforgrowth.Througheightmonthsof
specializedtraining,theEmergingLeadersProgramprovidesSMEswiththenetworkand
resourcesrequiredtobuilda
LexDominey,owneroftheconstructionfirm
sustainablebusinessandpromote
Rocket,Inc,participatedinSBA’s2008Emerging
economicdevelopmentwithin
200TrainingInitiative(e200),whichhecredits
communitiesacrossthecountry.The
with,“Rocket’ssurvivalduringtheworsteconomy
majorityofthesebusinessesaredrawn fortheconstructionindustrysincetheystarted
keepingtrack.”
fromunderservedcommunities.
Approximately680smallbusinessesin
“Thisclasshappenedatatimewhenmyindustry
urbanandNativeAmerican
wascrashing—aseriouscontractionin
communitieshaveparticipatedinthis
constructionvolumeoccurringineverysegment,”
trainingsincetheinitiative’sinceptionin Lexsaid.“E200reallygavemearoadmapto
expansion,understandingandlearning.The
2008.TheresultsoftheEmerging
feedbackfromtheotherCEOsaddedadifferent
Leadersinitiativeshownearly60
outlook.Thefinancialsectionoftheclassgaveme
percenthavehirednewworkers,with
afinancialdashboardthatwillallowustomanage
over500newfull?timeemployees
withconfidenceourexistingbusinessandto
createdin2009alone.Inaddition, understandwhatweneedforexpansion.”
participantsreportedincreased
revenuesoverthepastyear,haveleveragednearly$10millioninnewfinancing,and58
48
percentofparticipatingbusinesseshaveobtainedGovernmentcontracts. The2010
EmergingLeaderstrainingcycleincludedover300smallbusinessesenrolledin22cities
acrossthecountry.Thedataresultsdemonstratingtheimpactandoutcomesofthe2010
graduateswillbeavailablein2011.
? DisabilityEmploymentInitiative.TheDepartmentofLabor’sEmploymentandTraining
AdministrationandOfficeofDisabilityEmploymentPolicyarecollaboratingtoimplement
theDisabilityEmploymentInitiativewithinthepublicworkforcesystemanditspartners.
Grantsareawardedtostatestobuildcapacityforservingpeoplewithdisabilities. Self?
employmentandentrepreneurshiptrainingwasoneofseveralstrategiesonwhichstates
couldfocustheirefforts.
EnhancedRegionalEconomicCompetitiveness.Competitive,high?performingregional
economiesarethebuildingblocksofnationalgrowth.Regionshavecoordinatedandfocused
theirresourcestoaccelerateInnovation,economicdevelopment,businessdevelopmentand
workforcedevelopmentaroundpromisingindustryareas. Thisyear,underleadershipfromthe
WhiteHouse,Federalagenciesareworkingtogethertosupporttheseregionalpartnerships,
including theDOC’sEconomicDevelopmentAdministration(EDA),ManufacturingExtension
Partnershipprogram,andInternationalTradeAdministration,theDepartmentofEducation,
theDOLandSBA. Theseinitiativesweredesignedtodevelopandsupportregionalinnovation
clusterprogramsacrosstheGovernment:
? TheJobsandInnovationAcceleratorChallenge.TheObamaAdministrationhasannounced
theJobsandInnovationAcceleratorChallenge(AcceleratorChallenge),aninitiativeof16
Federalagenciesandbureaustoaccelerateinnovation?fueledjobcreationandeconomic
prosperitythroughpublic?privatepartnerships. TheAcceleratorChallengewilloffer,subject
totheavailabilityoffunds,acombinationof$33millioninfundingfromthreeagenciesand
technicalassistanceresourcesfrom13additionalagenciesandbureaustosupport
customizedsolutionsforapproximately20competitivelyselectedindustryclustersinurban
andruralregionsacrossthenationandacrossallsectors. Acompetitivesolicitationis
expectedtobeannouncedinlateMay2011.Formoreinformationpleasevisit
www.eda.gov/InvestmentsGrants/jobsandinnovationchallenge.
? LeveragingPrivateInvestment.EachAcceleratorChallengeinvestmentwillserveasa
catalystforleveragingprivatecapitalintheregionsfromanarrayofsourcessuchas
foundations,financialinstitutions,corporationsandotherprivatesectorpartners.
Throughitsunprecedentedlinking,aligningandleveragingofFederalresourcesandby
buildingstrategicpublic?privatepartnerships,theAcceleratorChallengewillfoster
broadregionalinnovation,jobcreation,andglobalcompetitiveness.
? Outcomes.Fundsawardedtothewinningapplicantscanbeusedtosupportand
acceleratearangeofmeasurableoutcomes,includinginnovation,commercialization,
businessformationandexpansion,developmentofaskilledworkforce,jobcreation,
49
exports,sustainableeconomicdevelopmentandglobalcompetitivenessin
approximately20industryclustersthatexhibithigh?growthdevelopmentpotential.
Thesesuccessfulclusterswillpromotegrowththatisinclusiveoftheregion’s
population.
? FocusingonPriorities.Thisinitiativerepresentstheimplementationofanumberof
ObamaAdministrationpolicyprioritiesincluding:
? Accelerationofbottom?upinnovationstrategiesencompassingurbanandrural
geographies,asopposedtoimposing“onesizefitsall”solutionsfromWashington.
? ReductionofFederalprogramssilosandpromotionofmorecoordinatedFederal
fundingopportunitiesthatofferamoreefficientsystemforcustomerstoaccess
Federalresources.
? EnergyRegionalInnovationCluster(E?RIC).DOEworkedwithsixagenciestoensureits
$125millionHubinvestmentinGreenBuildingresearchwouldsupporteconomic,business
andworkforcedevelopmentinthewinningregion. Together,theagenciesinvolvedinthis
effortareawardingnearly$130millionover5yearsfortheGreaterPhiladelphiaInnovation
Cluster,whichwasselectedforthisproject.TheSBAprovidedover$150,000toitspartner
SmallBusinessDevelopmentCenter,whichisworkingtoincluderegionalsmallbusinesses
inenergyefficientbuildingprojects.
? SBAInnovativeEconomiesInitiative. SBAprovidednearly$6millioninfundingto10
regionaleconomiesacrossthecountrytohelpdevelopandgrowsmallbusinessesinkey
industrysupplychains.TheseRegionalInnovationClustersareworking infocusareasthat
include,butarenotlimitedto,smartgrid,nucleartechnology,hydrogenfuelcell
technology,agriculturetechnology,flexibleelectronicsandgeospatialtechnology;and
threeofthemfocusparticularlyontechnologieswithdefenseapplications,including
aerospaceandcybersecurity.
? Clusteringfor21
st
CenturyProsperity:ASymposium.HostedbytheNationalAcademies
andtheAssociationofUniversityResearchParks,thissymposiumdiscussedthebest
practicesforpublic?private,cluster?basedeconomicdevelopment. Presentersincluded
GingerLewoftheNationalEconomicCouncilandJohnFernandezoftheEDA.Alinktothe
proceedingsisavailableat:http://sites.nationalacademies.org/PGA/step/PGA_056081.
? Governor’sGuidetoCluster?BasedEconomicDevelopment.TheEDA,theDOL,anda
varietyoffoundationsfundedastudybytheNationalGovernorsAssociationtodevelop
regionalinnovativestrategiestoacceleratetheUSeconomyinthefaceofglobal
competition.Thereportisavailableat:http://www.eda.gov/PDF/NGA_CLUSTERS.pdf.
50
? UnlockingRuralCompetitivenessthroughClusters. InapartnershipwithIndiana
UniversityandPurdueUniversity,theEDAfundedresearchtodevelopamodelthatcanbe
usedbyAmerica'sruralcommunities.IndianaUniversityandPurdueUniversityusedthis
fundingtoassessandmaximizeIndiana’sregionaleconomicadvantages.Theirworkis
availableat:http://www.ibrc.indiana.edu/innovation/.
? EnhancedOutreachthroughWebsite. SBAhasdevelopedanewSBAwebsite,whichserves
asa“one?stop?shop”forallSBAhastoofferforsmallbusinesssupport.Findthenewand
improvedSBAwebsiteat:http://www.sba.gov/.
ImprovingAmerica’sEntrepreneurialInfrastructure.PresidentObamaunderstandsthatthe
keytotheU.S.’shistoricandfutureeconomicsuccessisAmerica’suniquecultureof
entrepreneurship.TheU.S.hasalwaysbeenaplaceofgreatopportunityandofferedgreat
rewardforthosethattookariskandbegantheirownenterprise.ThisiswhyPresidentObama
iscommittedtomakingsuretheU.S.Governmentdoesallitcantomakestartingbusinesses
easierandremovebarrierstogrowth.
? NationalAdvisoryCouncilonInnovationandEntrepreneurship(NACIE). Convenedbythe
DOCtosupportPresidentObama’sinnovationstrategy,NACIEdevelopspolicy
recommendationsthatfosterentrepreneurshipandidentifynewwaysdriveeconomic
growthandcreatejobs. ManagedbyEDA’sOIE,NACIEstrivestoensurethattheUnited
Statesremainsthesourceofparadigmchanginginnovationsandthecompaniesthatdeploy
them.Membersoftheactivecouncilincludesuccessfulentrepreneurs,investors,and
universityandnon?profitleaders.Formoreinformation,pleasevisitNACIE’swebsiteat:
www.eda.gov/nacie.
? ImprovingthePatentProcess. TheU.S.PatentandTradeOffice(USPTO)providesa50
percentfeereduction,amongotherthings,tosmallentityinventorsandhasanarrayof
servicesdesignedforthem.Inaddition,several“accelerationinitiatives”,forpatentsrelated
tosectorslikegreentech,havebenefitedsmallbusinessesbysignificantlyshorteningthe
amountoftimeithastakentoreceiveapatent.
? DepartmentofLaborSupportsStartups.Currently,eightstates—Delaware,Maine,
Maryland,NewJersey,NewYork,Oregon,Pennsylvania,andWashington—havean
unemploymentinsurance(UI)provisionknownasSEA,whichwaivesregularworksearch
requirementsforclaimantswhoareworkingfulltimetoestablishtheirownsmallbusiness,
insteadprovidingthemwithaweeklySEAallowance. Theprogramisavailabletoworkers
whoareeligibleforUIandprofiledasbeinglikelytoexhausttheirUIbenefits.Benefits
equaltothosetheywouldhavereceivedunderUIarepaidoutover26weeksusingfunds
fromthestate’sunemploymenttrustfund.Duringthistime,theindividualsareexempt
fromworksearchandavailabilityrequirements,butarerequiredtoparticipateinactivities
likeentrepreneurialtrainingandbusinesscounseling.
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EducatingAmericanswith21stCenturySkillsandCreateaWorld?ClassWorkforce. Onlywith
strongeducationalfoundationswillAmericanscreatetheleadingideasofthe21stcenturyand
ensurethattheseideasdiffusethroughouttheAmericanworkforce.Onmanymetrics,
however,includingcollegegraduationrates,Americahasslippedbehindothercountries.The
U.S.mustreformitseducationandworkforcetrainingsystemstoensureAmericansare
qualifiedforthejobsoftomorrow.ThisimperativeunderpinstheObamaAdministration’sfocus
oneducationreformingeneralandinscience,technology,engineering,andmath(STEM)
educationinparticular.ItisalsoimperativetoextendSTEMeducationalandcareer
opportunitiestowomenandminoritygroupsthatareunderrepresentedintheseareas,sothat
allAmericanscanfindqualityjobsandleadourinnovativeeconomyinthedecadesahead.
Whenitcomestoentrepreneurship,empiricaldatasuggeststhelinkisclear:thegreaterthe
amountofschooling,thegreaterthelikelihoodofformingasmallbusiness.Headsof
householdswithsomecollegeare3.3percentmorelikelythanthosewithoutcollegetobeself?
employed,whilethosewithabachelor’sdegreeare4.4percentmorelikelytobeself?
employed,andthosewithsomegraduateleveloftrainingare8.3percentmorelikelytobeself?
employed.
? TheAmericaCreatingOpportunitiestoMeaningfullyPromoteExcellenceinTechnology,
Education,andScience(COMPETES)ReauthorizationActof2010.ThisActauthorizedbasic
research,programsaimedatboostingscience,technology,engineeringandmatheducation
andothermeasuresaimedatpromotingU.S.innovation.Additionally,theActisdesignedto
leverageexistingagencyprogramsandpromoteinter?agencycooperation.
? RacetotheTop.TheAdministrationlaunched“RacetotheTop,”aprogramdesignedto
spursystemicreformandembraceinnovativeapproachestoteachingandlearningin
America’sschools.ImprovementtoU.S.schoolsisvitaltosmallbusinesses,since,asof
2009,lessthan30percentoftheworkforcehadattainedabachelorsdegreeorhigher.
? Post?9/11G.I.Bill.TheObamaAdministrationiscommittedtofundingandimplementing
thePost?9/11G.I.Bill—abilltogiveveteransandtheirfamiliesanopportunitytoearna
collegeeducation.
? SkillsforAmerica’sFutureProgram.Thispublic?privatepartnershipbringstogether
businesses,nonprofits,andschoolstotrainAmericansforthejobsofanewcentury
throughtheSkillsforAmerica’sFutureprogram,aninitiativedesignedtohavebusinesses
andcommunitycollegesworktogethertomatchtheworkintheclassroomwiththeneeds
oftheboardroom.Thisisessential,giventhat47percentoftheworkforce’seducationlevel
isbetweenhighschoolcompletionandsomecollegeorassociate’sdegrees.
? ImprovedAccesstoHigherEducation.TheObamaAdministrationhasinvestedinour
communitycolleges,andreformedourstudentloansystembylimitingpaymenttoupto10
percentofincome,sothatloanpaymentneveroverburdensstudentsearningacollege
education
52
EducatingEntrepreneursandSmallBusinessesaboutSecurityConcerns.Although
entrepreneursarefamiliarwithrisks,theymaynotbefamiliarwiththeseparticulartypesof
risks.Theseprogramsaredesignedtoensurethatentrepreneursandsmallbusinessowners
knowhowtobestprepareandprotecttheircolleaguesandbusinessesintheeventofan
emergency.
? DHSOfficeofInfrastructureProtection’sProtectiveSecurityCoordinationDivision(PSCD).
TosupportInfrastructureProtection’smission,PSCDdeployed94ProtectiveSecurityAdvisors
(PSAs),including87fieldpersonneldeployedto74Districtsin50StatesandoneTerritoryto
serveascriticalinfrastructuresecurityspecialistsinlocalcommunitiesacrossthecountry.
PSAsareliaisonsbetweenFederal,state,local,tribal,andterritorialgovernmentsandthe
privatesector,providingaccesstoDHSinfrastructureresourcessuchasfacilitysecurityand
vulnerabilityassessments,threatinformation,training,andincidentresponsesupport.PSAs
conductdedicatedoutreachtoprivatesectorbusinesses,largeandsmall,topromote
public?privatesectorrelationshipsandinformationsharing.
? DHSBomb?MakingMaterialsAwarenessProgram(BMAP).DHS,incooperationwiththe
FederalBureauofInvestigation,developedBMAPtoincreasepublicandprivatesector
awarenessofhomemadeexplosives(HME),acommonterroristimprovisedexplosivedevice
(IED)tactic.BMAPassistslocallawenforcementagenciesthroughtrainingtoengageawide
spectrumofprivatesectorestablishmentswithintheirjurisdictionsthatmanufacture,
distribute,orsellproductsthatcontainHMEprecursorchemicals.
? BMAPOutreachMaterials.BMAPOutreachMaterialsareprovidedbylawenforcement
tolocalbusinesses,manyofwhomaresmallorindependentlyowned,helpemployees
moreeasilyidentifyrelevantHMEprecursorchemicalsandothercriticalIED
componentsofconcern,suchaselectronics,andrecognizesuspiciouspurchasing
behaviorthatcouldindicatebomb?makingactivity. BMAPsimultaneouslyencourages
strongerrelationshipsbetweenbusinessesandlocallawenforcementandreinforces
thefoundationofeffectivecommunitysafetyandsecurity.
? BMAPProducts.BMAPproductsconsistofreferencematerials,hand?outs,andposters
thatspecificallyaddresspre?cursormaterialsandsuspiciousbehavior,anddetailedand
industry?specificawarenessandindicatorguides.Also,IPmaintainsacatalogoftraining
programstodevelopawarenessofterroristthreatstocriticalinfrastructureamong
State,local,andprivatesectorentitiesandeducateparticipantsonstrategiesfor
detectingandmitigatingthesethreats.Sinceitsinception,IPhasprovidedtrainingto
over32,200state,local,tribal,territorialagenciesandcriticalinfrastructureownersand
operators.
? DHSCybersecurityEducation.ThroughtheInformationTechnologysectortrade
associationsthatareSectorCoordinatingCouncilmembers,DHShashelpedsmall
53
businesseslearnmoreaboutnationalcybersecurityandinfrastructureprotectionefforts
andtoexamineriskfromasectorperspective.
? OfficeofCybersecurityandCommunications’NationalCyberSecurityDivision.The
UnitedStatesComputerEmergencyReadinessTeam(US?CERT)publicwebsite,www.us?
cert.gov,providesanumberofdifferenttypesofinformationthatcanbeveryusefulto
thesmallbusinesscommunity. Forexample:
? TheNational Cyber Alert System (NCAS) provides Technical Cyber SecurityAlerts
(securityissues,vulnerabilities,andexploitsfortechnicalusers), CyberSecurity
Alerts (securityissues,vulnerabilities,andexploitsfornon?technicalusers,Security
Bulletins(weekly summaries ofnew vulnerabilities),andCyber SecurityTips(advice
aboutcommonsecurityissues forthe general public).
? CurrentActivity. This section provides frequentlyupdatedsummaries ofhigh?impact
securityissues such as notificationsofsecurityupdatesbysoftwarevendors.
? SecurityPublications. Thesepublicationsofferboth technicalandnon?technical
papers onsuch topics as securing web browsers, avoidingemail scams,cyberthreats
to mobiledevices, andcomputer forensics.
– SwA Forumsand WorkingGroup Sessions. Fourtimes per year, undertheco?
sponsorshipoforganizationswithinthe DHS,theDepartment ofDefense(DOD), andthe
NationalInstituteofStandardsandTechnology(NIST),theSwAForumandWorking
GroupSessionsprovidea“no?cost”publicvenueforparticipantsto sharetheir
knowledgeandexpertisein softwaresecuritywhileinteractingandnetworking withkey
leaders in industry, government, and academia. Thegatheringsareuniquein focus by
bringingtogether astakeholdercommunityto protect theNation’s key information
technologies,mostofwhich areenabled andcontrolledbysoftware. TheSwAForum
andWorking GroupSessionsaremeans forfulfillingtheOpen Government Initiative,
reflecting thethreeprinciples oftransparency, participation,andcollaboration. The
schedulefor theupcomingSwAevents andpresentations frompastSwA Forums are
located at:https://buildsecurityin.us?cert.gov.
– SwA “Build SecurityIn”Web Siteand SwA CommunityResourcesand Information
Clearinghouse(CRIC). TheSoftware AssuranceProgram prepares ad hocanalyses,
briefings,reports,articles,briefings,web pages,whitepapers andsupporting
documentation. All ofthese resources areavailableforfree onthe“BuildSecurityIn”
website, www.buildsecurityin.us?cert.gov/bsi/home.html,andSwACommunity
Resources andInformationClearinghouse(CRIC)website, www.buildsecurityin.us?
cert.gov/swa/. Manyadvances aredescribed in theSwALandscape,theSwA
Ecosystem, andtheSwAMarket Place. SoftwareSecurityAssurance:AState?of?the?Art
Report (SOAR)represents an outputofcollaborativeefforts oforganizationsand
54
individualsintheSwAForumandworkinggroups.Moreover,SwAdrafts,reviews,and
SwAPocketGuideswhichareavailableforfreeviathissite.
? DHSUSCISVerificationDivision.U.S.CitizenshipandImmigrationServices(USCIS)
VerificationDivisionconductsextensiveoutreachtosmallbusinessesthroughbusiness
associationsandotherentitiestoprovideeducationabouttheuseofE?VerifyandtheForm
I?9. SofarinFY2011,theVerificationDivision’sOutreachBranchhasparticipatedin64
eventsheldin24statesandD.C.todeliverlivepresentations,sitonpanels,andstaff
exhibitsaboutE?Verify. Mostoftheseeventshaveincludedsmallbusinesses.
– Webinars.Inaddition,theVerificationDivisionalsoreachessmallbusinessesthrough
webinars.SofarinFY2011,162webinarshavebeendeliveredtomorethan4,800
participants.Fourofthesewebinarswereconductedinpartnershipwithsmallbusiness
associationsfortheirmembers. Verificationalsopartnerswithassociationsandother
Federalagenciestoreachouttosmallbusinessesthroughtheirchannels—e.g.,
websites,newsletters,andmailinglists.
55
VI.HeightenedInnovationandHigh
GrowthSupport
TheStartupAmericaInitiativetoSupportAmerica’sEntrepreneurs. TheWhiteHouseand
severalFederalagenciesarecoordinatingonaprojecttogiveAmerica’sentrepreneursthe
toolstheyneedtostartmorebusinesses. Startupsandhigh?growthfirmsareasmallpartof
thesmall?businesscommunity,buttheycreatethelion’sshareofnewjobseachyearanddrive
innovationandcompetitiveness. StartupAmericawillstrengthenaccessforentrepreneursand
firmswithhigh?growthpotentialthrougharangeofGovernmentandprivatesectorsupport.
? $1BillionImpactInvestmentFund. SBAwillprovideguaranteesofupto$1billionoverfive
years to those funds that invest growth capital in companies located in underserved
communities.
? MakinganImpact.The$1billionwillincludeinvestingineconomicallydistressedareasas
well as those companies in emerging sectors such as clean energy. SBA will provide a
matchtoprivatecapitalraisedbythesefunds,partneringwithprivateinvestorstotarget
“impact”investments.
? $1 Billion Early?Stage Innovation Fund. Early?stage companies face difficult challenges
accessingcapital,particularlythosewithoutthenecessaryassetsorcashflowfortraditional
bank funding. For high?growth companies, the gap is particularly acute in the so called
“ValleyofDeath,”anindustrytermforfinancingroundsbetween$1millionto$4million.
? LevelingthePlayingField.Overthepast4yearsonly6percentofallventurecapitalhas
beendeployedinthatstage,with70percentofthefinancingsgoingtoonlythreestates,
California, Massachusetts and New York. The Innovation Fund will target this gap and
providea1:1matchtoprivatecapitalraisedbyearlystageseedfunds.
? Built on Success. Both of these funds will be built on SBA’s successful, market?based
SmallBusinessInvestmentCorporation(SBIC)program,whichoperatesonazero?subsidy
basiswithnoaddedcostfortaxpayers.
? SBA/DOEEntrepreneurialMentorshipCorps. SBA,inpartnershipwiththeDOEandthe
AdvancedResearchProjectsAgency?Energy(ARPA?E),isfundingfourprivatebusiness
acceleratorstoimplementanationwideentrepreneurialmentorshipprogramtoassistupto
100smallbusinessesdevelopingcleanenergytechnologies.
? DoingWhatWorks.Thesefourprogramstobefundedwillbeselectedbasedupona
trackrecordofsuccessinprovidingmentorshipassistance.Thefundswillbeusedto
supportatotalof100cleanenergystartupsacrossthecountry.
56
? SeasonedEntrepreneurs.Theseacceleratorswillprovideintensivementorshipfrom
seasonedentrepreneurstoaselectionofthemostpromisingnewcompaniespreviously
fundedbyDOEandARPA?E.
? BuildingonMomentum.Thispilotprogramisthefirststepinthedevelopmentofa
large,distributednetworkofentrepreneurs,mentors,andstartupaccelerators.
? MentorshipIncubatorsforVeterans. TheDepartmentofVeteransAffairs(VA),in
partnershipwithSBAandtheDepartmentofLabor,willestablishtwoofthefirstintegrated
businessacceleratorsfocusedsolelyonhelpingourVeteranslaunchandsustaintheirown
businesses.
? InteractiveWebsite.Thefirstacceleratorprogramoffersaninteractivewebsitethat
providesacomprehensiveroadmapforstartingasmallbusinessandprovidesassistance
inutilizingthediversesetofresourcesavailabletosupportVeteranentrepreneurs.
? ExperiencedEntrepreneurs.Thesecondprogramincludesabusinessincubatorfacility,
locatedinWaukesha,Wisconsin,whereearly?stageVeteran?ownedbusinessesare
mentoredbyexperiencedentrepreneursandtrainedtodeveloptheskillsneededto
buildasuccessfulbusiness.
? ImprovedAbilitytoCommercializeFederallyFundedR&D. TheDepartmentofCommerce,
throughtheEconomicDevelopmentAdministration(EDA),theNationalInstitutefor
StandardsandTechnology(NIST),andU.S.PatentandTrademarkOffice(USPTO)is
implementingseveralinitiativestoimprovethenation’sabilitytocommercializeFederally
fundedresearchanddevelopment.
? UniversityCommitments.TheNationalAdvisoryCouncilonInnovationand
Entrepreneurshiphasprovidedpolicyrecommendationsandspurredgreatereffortsby
universityleaderstoimprovetechnologycommercialization.
? FederalLabEfforts.EDA,incollaborationwiththeNISTandaninteragencyworking
group,hasconductedamajorstudyofFederallabcommercializationpractices,which
willbeusedtoevaluateanddisseminatebestpracticesandimproveresults.
? i6CompetitiveGrants. EDA’sOfficeofInnovationandEntrepreneurship,through
widespreadinteragencypartnerships,expandeditssuccessfuli6competitivegrants
programwithi6Green. i6competitionsaredesignedtoencourageandreward
innovativeideasthatacceleratetechnologycommercialization,newventureformation,
jobcreation,andeconomicgrowthacrosstheUnitedStates.
57
? ReducingBarriersRoundtables.Aseriesofeight“EmpoweringEntrepreneurs:Reducing
Barriers”roundtablesarebeingconducted–Durham,NC,Austin,TX,Boston,MA,Minneapolis,
MN,SantaClara,CA,Pittsburgh,PA,Atlanta,GAandBoulder,CO–tosolicitdirectfeedback
fromhighgrowthentrepreneurstoidentifythemostchallengingregulatoryhurdlestheyface.
? BetterCommunication.AnumberofAdministrationofficialswillparticipateinthese
roundtablesandmeetwithentrepreneurstoheardirectlyfromthemaboutwhatwe
needtofixtobuildamoresupportiveenvironmentforentrepreneurship.Entrepreneurs
whoareunabletoparticipateinoneoftheroundtableswillhaveaccesstoanonline
platformtosubmitideas.Thatcanbefoundat:http://reducingbarriers.ideascale.com/.
? RemovingtheBarriers.Usingtheinputfromtheseevents,theonlinesubmissions,and
Governmentemployees,theAdministrationwillputtogetheralistofthebestideasto
streamlineandsimplifyunnecessarybarrierstoAmerica’sentrepreneursand
innovators.
TheStartupAmericaPartnership.InresponsetothePresident’scalltoactiontopromotehigh?
growthentrepreneurshipacrossthecountry,leadersintheprivatesectoraremaking
commitmentstoeducatethenextgenerationofentrepreneurs,connectmoreentrepreneurs
withhigh?qualitymentors,fostermorecollaborationsbetweenstartupsandlargecompanies,
andaccelerateresearchbreakthroughsfromthelabtothemarketplace.TheStartupAmerica
Partnershipisanindependentallianceoftopentrepreneurs,investors,corporations,
universities,foundations,andotherleaders,joiningtogethertogrowtheentrepreneurial
ecosystemsthatsupportinnovative,high?growthU.S.startups.Long?termcommitmentswill
include:
? $400millioninPrivate?SectorCommitments.PresidentObamaannouncedthisnewwave
ofcommitmentssecuredfrommorethan15companiesandorganizationsatFacebook
headquarters.Thesecommitmentswilldeliverstrategicandsubstantiveresourcesthat
accelerateentrepreneursstartingandscalingcompanies.Thesenewprivate?sector
partnershipsdelivermorethan$400millioninvaluetoU.S.entrepreneurs,buildingupon
over20commitmentsalreadysecuredbytheStartupAmericaPartnershipfromcompanies
likeIntelandIBM.
? Education. TheStartupAmericapartnershipwillofferhigh?impactentrepreneurship
educationprogramstomorehighschools,communitycolleges,anduniversities,reaching
thousandsofadditionalstudents.
? Commercialization. Thepartnershipwillworktoclearthepathtomarketforprimary
researchinmoreuniversities,throughacombinationofregionalecosystemdevelopment,
facultyengagement,andstreamlinedtechnologylicensing.
58
? Acceleration. ThePartnershipaimstogetresults—fast—byreplicatingsuccessful
entrepreneurshipacceleratorprogramsinmorecitiesanduniversities,byrecruitingmore
experiencedmentorstosupportmorestartups.
ToolsforSmallBusinesseswithHigh?GrowthPotential.In2010,agenciesacrosstheFederal
Governmentworkedtogethertoidentifytoolsforhigh?growthandhigh?impactfirmsandmade
recommendationsforincreasingthefocusofinnovationandresearcheffortstosupport
commercializationofnewtechnology. Thisincreaseincommercializationwillgiverisetonew
industriesandthesubsequentneedforaskilledworkforce,thuscreatingjobs.
ConstantContact(Waltham,MA)
? RecordYearforSBIC
Forsmallbusinessownersthatmaylackthetimeorexpertise
Program. Atatimewhen
tomanagetheirownmarketingcampaign,ConstantContact
capitalwasscarceforsmall
offerse?mailmarketingsolutionsthatofferaneasy?to?useand
business,financingfromthe affordablewaytokeepintouchwithclientele. Launchedin
SBICgrowthcapitalprogram
1998,ConstantContacthashelpedalltypesofsmallbusinesses
createprofessional?lookingemailnewslettersandonline
increased23percentinFY
surveys.
2010,providingarecord$1.59
billiontohelpsmall
In2002,SBICHudsonVenturePartnerssawthepotentialof
businessesgrowandcreate ConstantContact’smodelwhenitinvested$2.3millioninthe
jobs. TheFY2010investment
companyandjoineditsboard. WithHudson’sassistance,the
companygrewfromjust27employeestoover300and
volumeisthehighestsingle?
eventuallywentpublicatavalueof$300million.
yearvolumeinthe50?year
historyoftheSBICdebentureprogram,achievedthroughanincreasednumberofnewSBIC
licenses,decreasedlicenseprocessingtimes,andadramaticriseininitialcapitaltonew
funds. Twenty?one(21)newSBIClicenseeswereissuedinFY2010,a130percentincrease
overthepreviousfour?yearaverageof10licenseesperyear.SBIClicenseprocessingtime
improvedtojust5.8monthsinFY2010,anearly60percentdecreasefromanaverageof
14.6monthsin2009.
? SmallBusinessInnovationResearch
(SBIR)2.0.TheSBIRprogramisaset
asidefromtheextramuralresearch
budgetsofelevenparticipating
agencieswithover$100millionin
annualextramuralresearchbudgets.
Theprogramhasprovidedearly
fundingtechnologycompaniessuchas
Qualcomm,Semantech,and
Genentech.SBIRrepresentsthesingle
largestearlystageinvestmenttoolin
theGovernment,providing
approximately$2.5billionannuallyto
FirstRFCorporation&DODSBIR
FirstRFCorporation(Boulder,CO)developedasmall
multi?decadecommunications&electronicwarfare
antennaforhighspeed,highpowerelectronics.This
antennaallowsforasingleinstallationonvehiclesto
covermultiplebandsandfunctions.TheFirstRF
antennacanbeusedinmilitaryapplicationsfor
communication,sensorsandcountermeasures
systems.Onthecommercialside,theantennahas
applicationsinradiocommunicationsandsensors.
ThistechnologyspearheadedthegrowthofFirstRF
highvolumeproductionwhichnowhasoverthree
dozencommercialproductsavailableandover
150,000antennassoldtodate.Thecommercialization
forthistechnologyhasbeenover$200millionin
sales.
smallbusinesses.TheSBAiscurrently
59
SenTech Inc.& DOD SBIR
SenTechInc.,under theleadershipofCEODr.
GervasioPradoand supportedbytheDARPASBIR
Program,developeda small,lowcost, five?inch?
diameter acoustic?seismicsensor array for detecting,
identifyingand trackinggroundvehicles. Itcanbe
placed easilybyhand orair?dropped byhelicopter.
Thechallenge was todevelopadvancedseismic
processing techniquesthatwouldeliminate noise,use
seismicsignatures to identifypassingvehicles, and
alsodetermine vehicle bearing,velocityandrange.
Thisworkwas successful,andthese acoustic?seismic
capabilitieswere extendedandincorporatedinto
variousmilitaryplatforms andapplications. This
project builtuponanearliersuccess, fundedby
Sandia NationalLaboratories,whichdemonstrated
thatunattendedacoustic?seismicgroundsensors
wereeffective for covertsurveillanceofmilitary
vehicles.The solutionsto this challengeincluded
electronics that significantly reduced power
consumption,improvedalgorithmsfordetecting,
identifying, andtrackingmultiplevehiclesin convoys,
andmethods forsummarizinginformationfor
satellitetransmission.TheDARPAfundingextended
theseachievements.
implementingSBIR2.0toreinvigorate
theprograminawaythatmakesthe
SBIRprogrammoreentrepreneur?
friendlyby:
? LeveragingBestPractices.SBIR2.0
coordinatesandraisesawarenessof
bestpracticesamongagenciesto
improvethecommercializationrates
ofSBIRawardees.
? StrengtheningMetrics.SBIR2.0will
strengthenperformance
measurementtoensureeffective
operationoftheprogram.
? Streamlining.ThenewSBIRwillbe
moreuserfriendlyforentrepreneurs
throughnewinitiativestostreamline
andsimplifytheprogram.
? MorePublic?PrivatePartnerships.SBIR2.0willincreasealignmentwiththeprivate
sectorandfosteringcross?agencypartnerships.
? IncreasedFundingforSBIRandSmallBusinessTechnologyTransferPrograms(STTR).
– DepartmentofEnergySBIR. NationalInstitutesofHealthSBIR
WiththehelpofARRAfunds,
NIHcommittedapproximately$690millioninappropriated
DOEincreaseditsfundingof
fundseachyearinFY2009toFY2010toitsSBIRandSTTR
SBIRandSTTRPhaseIand
programs. NIHdevelopedtwoARRAprogramsspecificallyfor
PhaseIIawardsby$91million
smallbusinesses,onetohelpearlystagecompaniescatalyze
to$235millioninFY2010.
researchinnewareasandtheothertohelpmoreadvanced
Thesefundspermitteda
companiesbridgethecommercializationgap.
supplementalsolicitationthat
Additionally,smallbusinessescompetedwellandreceived
emphasizedhighly
awardsfromotherNIHARRAprogramsthatdidnottarget
commercializable
smallbusinesses.Overall,NIHawardedanadditional$317
technologies. Examplesof
millioninARRAfundstosmallbusinessesthroughallthese
cleanenergytechnologies
programsoverFY2009toFY2010.
fundedincludeaninnovative
waveenergyconverter(ResoluteMarineEnergy)andabio?basedintelligentroof
coatingtechnologytoreduceheatingandcoolingloadsofbuildings(United
EnvironmentandEnergy).
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? AdvancedResearchProjectsAgency?Energy(ARPA?E).AnewDOEagencysetupto
promoteandfundhigh?risk,applied,advancedenergytechnologieswithbreakthrough
potential.Start?upcompaniesandsmallbusinessareoftenbeststructuredtopursuesuch
projects—largecompaniesmayfindthehigh?riskprojectsunattractive,whileuniversities
maybemorefocusedonbasicresearch.Intermsoffundingtodate,$132million,roughly
37percentofARPA?Efunds,hasbeenallocatedtosmallbusinesses.ARPA?Eremains
engagedtohelpsmallbusinessessucceedaftertheawardismadebyofferingresources
designedtohelpcompaniesovercomebothtechnicalandcommercialchallenges.
ARPA?EinAction
Inalittleoveroneyear,sixprojectsthatreceivedatotalof$23.6millioninseedfundingfromtheDepartmentof
Energy’sAdvancedResearchProjectAgency–Energy(ARPA?E)havegeneratedmorethan$100millioninoutside
privatecapitalinvestment.Thesixprojects,whichreceivedbetween$750,000and$9millioneachinARPA?E
funding,focusonimprovingsolarandwindenergytechnologiesandadvancedbatterystorage:
1366Technologies,Lexington,MA.1366Technologiesisasmallstartupdevelopinganewwaytomakesilicon
wafers–akeycomponentofsolarpanels–for80percentlessthanthecurrentcost.Thecompanyreceived$4
millioninvestmentfromARPA?Eandsincethenhassecuredanadditional$33.4millionfrominvestorsand
interestedcustomers.
Envia,Hayward,CA.EnviaSystems,inpartnershipwithArgonneNationalLaboratory,received$4millionfrom
ARPA?EinDecember2009todeveloplithium?ionbatterieswiththehighestenergydensityintheworld.They
recentlyreceivedanadditional$17millioninprivateinvestmentledbyGeneralMotors.
FloDesign,Wilbraham,MA.FloDesignWindTurbinereceived$8.3millionfromARPA?Etoacceleratethe
developmentofanewwindturbineinspiredbyairplanejetengines.ARPA?EfundinghelpedFloDesigndevelop
theirnewtechnology,recruitastellarexecutiveteam,morethandoubleitsstafffrom20to50employees,and
ultimatelyraiseanadditional$27millionfromprivateinvestors.
SunCatalytix,Cambridge,MA. SunCatalytix,astart?upspunoutofMIT,received$4millionfromARPA?Eto
developtheirtechnologyforusingsunlighttosplitwatertoprovideaffordable,highlydistributedenergy.They
havesincereceivedanadditional$9.5millioninventurecapitalfunds.
GeneralCompression,Newton,MA. GeneralCompressionisdevelopingfuel?freecompressedairenergystorage
technologytoenablelow?costgridstorageandtohelpmakeintermittentrenewablepower(suchasfromsolarand
wind)fullydispatchable.ThecompanyreceivedasmallARPA?Egrantof$750,000totestanimprovedversionof
theirtechnologywithsignificantlyhigherefficiencyandlowercost,whichhasbeenbuiltandisnowintesting.That
allowedGeneralCompressiontosecureover$12millioninadditionalfundingfromexistingandnewinvestors.
24M,Cambridge,MA. SoonafterreceivinganARPA?Eawardof$2.55million,scientistsatMITandA123Systems
spunoutthetechnologytoformastart?up,24M,whichreceived$10millioninventurecapitalfunds.Thecompany
isdevelopinganewbatteryarchitecturethatcouldtakebatteriesforelectricvehicleswellbeyondtheperformance
andbelowthecostoflithiumioncells.
? GovernmentReformforCompetivenessandInnovation.Thisisagovernment?widereview
ofrulesandregulationsannouncedbythePresidentearlierthisyearinaPresidential
Memorandum.TheideaisthattheUnitedStatescannotwinthefuturewithagovernment
livinginthepast.Americansalreadydobusinessintheinformationage,butthe
organizationoftheFederalGovernmenthasnotkeptpace.ThatiswhythePresidenthas
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assignedtheNation’sfirstChiefPerformanceOfficerwhoisresponsiblefortheeffortto
createaplanfortherestructuringandstreamliningoftheexecutivebranchoftheFederal
government. Thefirstfocusofthiseffortwillbeontheexecutivedepartmentsand
agenciesandthefunctionsthatsupportoneofourmostimportantprioritiesincreasing
trade,exports,andouroverallcompetitiveness.ThisreformaimstomaketheFederal
governmentmoreefficient,whichinturn,willstreamlinethewayssmallbusinessesinteract
withgovernment.
? DC?to?VCSummitsonInvestinginHealthcareTechnology.DC?to?VCeventsaretargeted
engagementsbetweenFederalleadershipandventurecapitalists,innovators,and
entrepreneurs,focusingonhowtoaddressemergingopportunitieswhilesimultaneously
improvingourcountry’shealththroughbetter,moreefficientcaredelivery.LedbytheChief
TechnologyOfficeroftheDepartmentofHealthandHumanServices,incooperationwith
theWhiteHouse,theOfficeoftheNationalCoordinatorforHealthInformationTechnology,
andtheCentersforMedicareandMedicaidServices(CMS)InnovationCenter,anexpanded
seriesofworkgroupsanddiscussionroundtableshavebeenlaunchedduring2011thatbuild
uponsignificantprevioussuccesses.
? USDA’sRuralBusinessServices’BiorefineryAssistanceProgram(Section9003). Section
9003isadministeredthroughUSDARuralDevelopmentanddirectlysupportsthe
commercializationofnewtechnology. Theprogramprovidesloanguaranteesofupto$250
milliontoprojectsthatdevelopnewandemergingtechnologiesforadvancedbiofuels.
Ingeneral,theseprojectsincludetechnologythatisbeingadoptedinaviable,commercial?
scaleoperationofanadvancedbiorefinery.Projectsalsoincludetechnologythathasbeen
demonstratedtohavetechnicalandeconomicpotentialforcommercialapplicationinan
advancedbiorefinery.
? DHSandtheUSArmyMedicalResearchandMaterialCommand(USAMRMC).These
agenciesareworkingtofacilitatetransferoftechnologywiththeMarylandTechnology
DevelopmentCorporation(MD?TEDCO). MD?TEDCOwillassistcompanieswithtechnology
developmentprojectsthatmeettheneedsofDHSand/orUSAMRMC. Typicalawardsof
$75,000insupportoftechnologydevelopmentwillbeprovidedtoeligiblecompanies.
? GSAGreenProvingGroundProgram. ThegoalofGSA’sGreenProvingGroundProgramis
tohelpinnovativeAmericanbusinessescompeteandexcel. GSAisharnessingthepotential
ofinnovativebuildingstechnologiesandpracticesthataccelerateenvironmentalefficiency.
Byevaluatingandadoptingnewideasandtechnologies,GSAwilldriveinnovationin
environmentalperformanceacrossFederalGovernmentbuildingsandhelpbuildtheclean
energyeconomyofthefuture.Inoneexample,GSApilottestedtheeffectivenessof
digitallycontrolled,workstation?specificlightingtechnology("SmartLighting")from
Newark,California?basedstart?upLumenergi,ina30,000squarefootspaceinGSA’sSan
FranciscoPhillipBurtonBuilding.TheSmartLightingtechnologydelivereda40percent
lightingenergysavingsandthemarketpotentialdemonstratedbythepilotengaged
ventureinvestmentcompanyGoodEnergiestosupportLumenergi.Inordertocontinue
62
identifyinginnovativetechnologiestotestandadopt,GSAhasissuedanofficialRequestfor
Informationandiscreatingaregistryoftechnologiesandpracticesthatoptimizeenergy
performance,protectandconservewater,enhanceindoorenvironmentalquality,reduce
wasteandenvironmentalimpactofmaterials,reducegreenhousegasemissionsassociated
withbuildingoperations,andpromoteintegrateddesign.
? NationalScienceFoundation(NSF).CreatedbyCongressin1950,theNSFwasdesignedto
promotetheprogressofscience;toadvancethenationalhealth,prosperityandwelfare;
andtosecureNationaldefense.ForoverfiftyyearstheNSFhasdonejustthat,funding
approximately20percentofallFederallysupportedbasicresearchconductedbyAmerica’s
collegesanduniversities.Today,theNSFcontinuestofundinnovativeresearchthatwill
leadtothedevelopmentofbreakthroughtechnologies,whichcreatejobsandgiveAmerica
amorecompetitiveeconomy.
Virent’sGreenGasolinehasreceivedmorethan
? EngineeringResearchCenters $60millionininvestorfinancing. Virentreceived
SBIRfundingfromNSFtodevelopgreengasoline
(ERCs).Aprimarydriverforthe
(notethanol)fromplantsugars.Scalingup,they
establishmentoftheERCprogram
havesincereceivedtensofmillionsfrommajor
bytheNationalScienceFoundation
partnersincludingShell,HondaandCargill.
in1984wastofacilitatethetransfer
Seethepressreleaseat:
ofknowledgeandtechnology www.gigaom.com/cleantech/shell?cargill?fuel?up?
virent?with?46m/announcing$46millionin
developedoutoftheERCs’research
supportofthisWisconsin?basedstartup.
onnext?generationengineered
systemstoU.S.industry.Thisfocus
Moreonthetechnologyisavailableat:
oninnovationwasandstillisatthe
www.nsf.gov/news/news_summ.jsp?cntn_id=112
heartoftheERC–industry 256
partnership.Thatpartnershiphas
yieldedrichdividends.From1985through2010,ERCshaveproduced1,796invention
disclosures,had642patentsawarded,granted2,105patentandsoftwarelicenses,and
spunoff151firmswith(asoflate2010)acumulativetotalof1,464employees.Overthe
past25years,48ERCshavereceivedroughly$1billioninfundingfromtheERC
program.SuccessfulERCsaresupportedbyNSFfor10years;whenthey“graduate”
fromNSFsupporttheyareexpectedtoattainself?sufficiencywithfundsfromindustry,
academia,andothersources.BeginningwiththenewestgenerationofERCsin
particular(Gen?3),in2008,thereisaveryspecificfocusonbuildingandsustaininga
culturethatlinksdiscoverytoinnovation.Thisinnovationculture,calledthe“ERC
innovationecosystem,”includespartnershipswithERCmemberfirmstostrengthenthe
ERCandstreamlinetechnologytransfer.SmallfirmsthatjoinERCsthroughcashandin?
kindcontributionsbenefitfrommembershipinERCsthroughaccesstonewideas,
accesstostudents,andaccesstotheERC'sequipmentforspecialprojects.Aparticular
emphasisisonformingtranslationalresearchpartnershipswithsmallfirmsandSBIR
PhaseIIawardeestoacceleratethecommercializationofhigh?riskERCadvancements;
thisactivityisenabledbycollaborationbetweentheERCprogramandNSF’sIndustrial
InnovationandPartnershipsDivision.Finally,“innovationpartnerships”areformedby
ERCswithstateandlocal?levelorganizationstostimulateentrepreneurshipandjob
63
creationandenabletechnologicalinnovation.Thisemphasisonpartnershipsbetween
ERCsandsmallbusinesseshasbeenextremelyeffective.Between2006and2010,the
percentageofERCmembercompaniesthataresmallcompaniesnearlydoubled,from
23%to44%.
? ERCresearchisdividedintofourbroadtechnologyareas,orclusters.
? Biotechnology and Healthcare.
? Manufacturingand Processing.
? Energy,Sustainability, and Infrastructure.
? Micro/Optoelectronics, Sensing, and Information Technology.
? AcceleratingInnovationResearch(AIR). Toacceleratetheprocessofinnovation,NSFis
undertakingtworelated,newactivities. Thefirstwillencouragethetranslationofthe
numerous,technologically?promising,fundamentaldiscoveriesmadebyNSF
researchers,whiledrawinguponandbuildingtheentrepreneurialspiritofthe
researchersandstudents. Thesecondactivitywillfosterconnectionsbetweenan
existingNSFinnovationresearchalliance(includingconsortiasuchasEngineering
ResearchCenters(ERC),IndustryUniversityCooperativeResearchCenters(I/UCRC),
PartnershipsforInnovation(PFI),
Ajointteamofphysicistsandophthalmologistsfrom
ScienceandTechnologyCenters
theNSF?supportedCenterforUltrafastOptical
(STC),NanoscaleScienceand ScienceattheUniversityofMichiganandthe
EngineeringCenters(NSEC),
university’sKelloggEyeCenterdevelopeda
procedurethatsignificantlyimprovedLASIKsurgery
MaterialsResearchScienceand
procedures.Theimprovementinvolvesusingan
EngineeringCenters(MRSEC)
ultrafastlasertomakeclean,high?precisionsurgical
grantees)andotherinstitutions,
cutsinthehumancornea.Usingtheultrafastlaser
whosecomplementaryfocuswill insteadofamechanicalbladeenablessurgeonsto
spurthedevelopmentof
createaprecisecornealflap.Thefemtosecondlaser
“scalpel”providessurgeonsmuchhigherprecision
discoveriesintoinnovative
andaccuracy.TheMichigancenterwasanNSF
technologiesthroughcollaboration.
ScienceandTechnologyCenter(STC)from1990?
BothcomponentsofAIRaimto
2001;today,it’saninterdisciplinaryresearchcenter
launchdiscoveriesfrombasic intheuniversity’sCollegeofEngineering.The
researchtowards
researchers’workhasalreadybenefitedhundredsof
thousandsofpeoplewhohaveundergonevision
commercializationbypreparing
correctionproceduressince2001.Twomembersof
themtobedevelopedbyasmall
theMichiganresearchteamfoundedtheIntraLase
business. Thetwocomponentsof
Corporationtocommercializethefemtosecondlaser
AIRoperateatdifferentscales: the technology.AdvancedMedicalOptics,Inc.agreedto
TechnologyTranslationPlan
acquireIntraLaseforabout$808millionin2007.
Competitioninvolvessingle
researchersorsmallteams(wholatercouldstarttheirowncompany),whilethe
ResearchAllianceCompetitioninvolvesNSFcentersandmultiplebusinesspartners.
64
? Technology Translation Plan Competition. TechnologyTranslationPlan
Competitionis an opportunityforPrincipalInvestigators fromacademic
institutionsto supportinnovativeideas bytranslatingfundamentalscience
andengineering discoveries into commercial reality. Theeffort is meant to
benefitthesinglefaculty members, however,asmallbusinessmay
collaboratewiththeacademicinstitutionto augment theresearch
capabilitiesofthat institution.
? Research AllianceCompetition. As far as thebenefits to smallbusinesses are
concerned,thegrant fromthis competitionmaybeused to fund
translationalresearch necessaryto bring aparticulartechnologyfromthe
smallbusiness(orbusinesses)to market, orto fundinfrastructure, such as a
rapidprototypefacility,that wouldenabletechnologies tobemorerapidly
commercialized. Withsuch projects,theresearchalliancecannotpartner
withjustonesmallbusiness;it has to bemorethan one.
TheUSDAAgriculturalResearchService(ARS).ARSisUSDA’sprincipalintramuralscientific
researchagency. ARSobtainspatentsandlicensestechnologyresultingfromintramural
researchconductedbyUSDA.BypolicyofARS,IPrelatedtoresearchtoolsisnotprotectedso
astoencouragescientificresearch.Further,patentprotectionissoughtprimarilytofacilitate
technologytransfer(adoptionofresearchoutcomes)byU.S.businessesthatmustcompetein
globalmarkets;typically,somedegreeofexclusivityisneededtoprotectfurtherR&D
investmentsbytheprivatesector. Otherwise,alternativemeansoftechnologytransferare
employedtoreducetransactioncoststhatmustbeabsorbedbytheprivatesectorandpassed
totheconsumer.AnnualReportsonUSDATechnologyTransfertypicallyillustratethatnearly
halfofthe“downstreamoutcomes”relatedtoadoptionofresearchdonotinvolvepatentsor
licenses;readmoreat:http://www.ars.usda.gov/Business/Business.htm.
? ARSOfficeofTechnologyTransfer(ARS?OTT).ARS?OTTisassignedtheresponsibilityfor
protectingintellectualproperty,developingstrategicpartnershipswithoutside
organizations,andperformingotheractivitiesthateffectivelytransferARSresearch
outcomesandtechnologiestothemarketplace.ARS?OTTiscentralizedinpolicyand
approvalprocedures,butmaintainseightfieldofficestoprovideone?on?onecustomer
servicetoARSresearchers.Consistingofabout45personneldedicatedtofacilitating
technologytransfer,OTTisorganizedintofivesections:
? AdministrativeandHeadquarters.Thisbranchoverseesday?to?dayoperations,
coordinatestechnologytransferpolicydevelopment,andexecuteslicensesand
CooperativeResearchandDevelopmentAgreements(CRADAs).
? Patents.ThePatentsectionconsistsofeightin?houseregisteredpatentagents.These
agentsprovidestrategicguidancetoscientistsinprotectingIP,coordinateinvention
reportsandInventionDisclosureReviewCommittees,prepareandprosecutepatent
65
applications,andoverseeanypatentapplicationspreparedbycontractlawfirmsfor
foreignpatentrights.
? Licensing.TheLicensingsectionismadeupoffourspecialists. Specialistsnegotiate
licensesforIPdevelopedbyUSDAscientistsandmonitorlicenseperformance.
? Marketing.TheMarketingsectiondevelops,implements,andcoordinatesmarketing
strategiestofacilitateavailableinformationtosupporttechnologytransfer.
? TechnologyTransferCoordinators(TTCs).ARShassevenTTCsstrategicallystationed
acrosstheUnitedStateswhoareresponsibleforfacilitatingthedevelopmentand
transferofUSDAtechnologies.Theyserveasliaisonswithscientists,ARSmanagers,
universitypartners,andtheprivatesector.TheyalsonegotiateCRADAsandother
technologytransferagreements.
? ARSSuccessDemonstratedbytheNatureofTechnologyTransferOutcomesandMetrics
withSmallBusinesses.TheARSbudgetrepresents1percentofFederalR&Dexpenditures,
yetroutinely,ARSscientistsreceiveatleast15?25percentoftheNationalExcellencein
TechnologyTransferAwardspresentedbytheFederalLaboratoryConsortiumfor
TechnologyTransfer,attestingtothestronglong?standingUSDAcultureofensuringthat
researchoutcomesaredeliveredtoendusersintheagriculturesector. MetricsfromFY
2010showastrongfocusonsmallbusinesses:
? 115of197(58%)activecommercializationlicensesarewithsmallbusinesses;
? 125otherlicensesarewithuniversitiesandinstitutionsofco?inventorsofUSDA
innovations,consolidatingrightsforsubsequentlicensingforcommercialization;
many—if notamajority(exactfiguresnotavailable)—oftheresultingsublicense
agreementsarealsowithsmallbusinessesenterprises;
? 246of323(76%)activelicensesareexclusiveorpartiallyexclusive;
? 125of323activelicenseshaveatleast1productinthemarketplace.
? Inadditiontolicenses,260CRADAsrepresentformalresearchpartnerships,
predominantlywithU.S.smallbusiness(approx.65%),tofindsolutionstohigh
nationalprioritiesforagriculturalindustriesandtofacilitateadoptionofinnovation?
basedresearchoutcomesforprivatesectorcommercialization.CRADAsconveythe
righttonegotiateexclusivelicensesbythepartnerswithoutFederalRegisternotice.
66
? AgriculturalTechnologyInnovationPartnership(ATIP)Program.ARSestablishedtheATIP
programinlate2007tofurtherenhanceopportunitiesandlikelihoodthatresearch
outcomesarisingfromthe2,100scientistsat100U.S.locationswillbeadoptedbythe
privatesectorforcommercializationbybusinessesthatmayexistanywhereinthenation.
TheprogramwasbornfromtherecognitionthatFederalintramuralR&Dagencieswere
limitedbymissionandresourcesinthe
CrispTekisanexampleofthecommercialviability
servicestheycanprovidetoU.S.
ofARS?conceivedfoodinnovations.CrispTek’s
businesses.Consequently,ATIPwas
ChoiceBatterlinebuildsfromARSinnovationsto
establishedtostrategicallyform
offerricebatterthatabsorbslessoilwhenfried
geographicpartnershipswithaselect
andstillmaintainsacrispytexture.Thecompany
few,well?establishedeconomic
wasformedin2007,enteredintoalicensing
agreementwiththeARSTechTransferOfficein
developmententitiesthatexcelin
2008,andenteredintoaCRADAwithARSin2009.
providingthecomplementaryassets
Itsignedanagreementin2008withafacilityin
thatARScannot.
Iowatomanufactureitsproducts,andsolditsfirst
productin2009.ByAugust2010,ChoiceBatterwas
? TheATIPProgramiscomprisedof
beingsoldinover400storesacrosstheUS,
includingfourmajorgrocerystorechains,andYear
TenEconomicDevelopment
5salesareanticipatedtobe$4.7million.
Members.Eightoftheseentities
eachserveasaportalanchoredto
EconsultestimatesthattheARS?Crisptek
anARSArea,anda9thPartner partnershipwouldpotentiallyyield,onanannual
representinganational
basis,asignificanttotalimpactinthecountiesin
whicheconomicactivityistakingplace.Withinthe
organization,theNational
fivecountieswherethereissignificantCrispTek
AssociationofSeedandVenture
economicactivity,totalannualpotentialeconomic
Funds.ATIP“Associates”workin
impactreachesabout$8millioninoutput(i.e.
conjunctionwithaproximal expenditures),includingabout$4millioninvalue?
Partner.Currently,thereisoneATIP
added(i.e.contributiontoGrossDomestic
Product),supportingabout100jobsandabout$4
Associate.PartnersandAssociates
millioninearnings(i.e.compensation).In
becomemembersofATIPthrougha
CrispTek’shomecounty,HowardCountyinthe
PartnershipIntermediary
StateofMaryland,totalannualpotentialeconomic
Agreement(PIA)executedwiththe impactreachesabout$3millioninoutput,
OfficeofTechnologyTransfer;
includingabout$2millioninvalue?added,
supportingabout15jobsandabout$1millionin
sevenoftheseentitiesbecameATIP
earnings.Importantly,theseannualpotential
membersin2009?2010.
economicimpactsoccurwithinawiderangeof
industriesandarenotnarrowlydistributedtojust
? MembersofATIP.Membersinclude oneortwosectors.
theMarylandTechnology
DevelopmentCorporation(TEDCO),MississippiTechnologyAlliance(MTA),Wisconsin
SecurityResearchConsortium(WSRC),NationalAssociationofSeedandVentureFunds
(NASVF),GeorgiaResearchAlliance(GRA),BenFranklinTechnologyDevelopment
Authority(BFTDA),KansasBioscienceAuthority(KBA),TechCommattheCenterfor
Innovation, Arlington,TX,CaliforniaAssociationforLocalEconomicDevelopment
(CALED),andtheCenterforInnovativeFoodTechnologies,Toledo,OH(CIFT;anATIP
AssociatewithWSRC).
67
? Promotionofentrepreneurshipandsmallbusinessdevelopment.ATIPactivitiesare
directedtowardinnovation?basedeconomicdevelopmentwithsmallbusinesses. In
2007,ARSprovidedafewissuedpatentstoanentrepreneurshipclassatHoward
CommunityCollege(MD);twooftheseresultedinexclusivelicensingin2009,following
requisiteFederalRegisterNotice. Currently,mostATIPmembershaveformallinkswith
entrepreneurshipschoolsadministeredbyuniversitiesandcommunitycolleges.In2010,
USDAbeganroutinelyprovidingissuedpatentsandpatentapplicationstotheseschools
throughATIPmembers.
InvestmentsinBroadbandTechnologyforSmallBusinesses.Broadbandtechnologyisa
necessarypieceofAmericaninfrastructure.However,manyareasoftheNationarenotableto
accessthiscriticaltechnology.Theseinvestmentswillhelptoremedythatproblemandallow
ruralandsmallbusinessesbetteraccesstobroadbandinordertomaketheirenterprisesmore
efficient.
? NationalTelecommunicationsandInformationAdministration’s(NTIA)Broadband
TechnologyOpportunitiesProgram(BTOP).NTIAinvestedapproximately$4billionin232
BTOPprojectsbenefittingeverystate,territory,andtheDistrictofColumbia.ThisBTOP
portfolioofprojectsinclude:
? 123InfrastructureProjects.
TrillionCommunications,Inc.anditsseveralsmall
123infrastructureprojects
disadvantagedbusinesspartnersreceiveda$59
totaling$3.5billioninFederal
millionBTOPgranttoconstructover2,200milesof
grantfundstoconstruct
newfibertocomplementanexistingfibernetworkin
broadbandnetworks; an8?countyregionincentralAlabama. Since
Trillion’sfoundingin2001,thisAfrican?American
ownedcompanyhasgrowntoolargetobe
? 65PublicComputerCenter
consideredasmallbusiness,butiscommittedto
Projects.65publiccomputer
ensuringopportunitiesforsmallminoritybusinesses.
center(PCC)projectstotaling
Trillionexpectstocontractwithatleast30small
$201millioninFederalgrant minorityfirmsinthefirstroundofproject
procurementsandmanymoreastheproject
fundstoprovideaccessto
progresses. Inaddition,theproject’sresulting
broadband,computer
infrastructurewillprovideneworimproved
equipment,computertraining,
broadbandservicetonearly3,000businesses,72,000
jobtraining,andeducational
households,and400anchorinstitutions,including
resourcestothepublicand governmentfacilities,schoolsandlibraries,public
safetyentities,twoHistoricallyBlackCollegesand
specificvulnerablepopulations;
Universities,andhealthcarefacilities.
and
? 44SustainableBroadbandAdoptionProjects.44sustainablebroadbandadoption
(SBA)projectstotaling$250.7millioninFederalgrantfundstosupportinnovative
projectsthatpromotebroadbandadoption,especiallyamongvulnerablepopulation
groupswherebroadbandtechnologytraditionallyhasbeenunderutilized.
68
? SmallBusinessesBenefit.AmongBTOP’smanybeneficiaries,smallbusinesseswill
benefitnotonlythroughimprovedbroadbandservicesfromBTOP?fundedprojectsbut
alsoasBTOPawardees. Twenty?sevenBTOPgrantrecipientsaresmallbusinesses,of
whichthreearesociallyandeconomicallydisadvantagedsmallbusinessconcerns
(SDBs).
? USDA’sRuralUtilityServices(RUS).RUSfundsprojectstoincreaseaccesstobroadband
serviceinruralareas. Theseinvestmentspromoteeconomicdevelopment,increaseaccess
tohealthcareandeducationalopportunities,helpcreatejobs,andincreaseruralviability.
TelecommunicationinvestmentsduringFY2010include:
? $2.5BillionInvestedinBroadbandInfrastructure.Byusing$2.5billioninRecoveryAct
fundingauthorizedbyCongress,USDAleveragedtoprovideloansandgrantsof
approximately$3.6billiontoconstruct320broadbandinfrastructureandsatellite
projectsin46statesandoneterritory.
? $690MillionInvestedinCommunicationsTechnology.$690millionininfrastructure
loanstodeliverimprovedcommunicationstechnology,includingbroadbandservice,to
meettheneedsofhomesandbusinessinruralAmerica
69
RuralBusinessesandBroadbandTechnology
TheGreatLakesBayRegionandThumbAreainMichiganwereinneedofbroadbandinfrastructureto
allowthecommunitytocompeteintheglobalmarketplace. Inadditiontolackofbroadbandservices
necessaryforlocalbusinessestooperate,schoolsneededaninternetconnectionfortheirstudentsinthe
classroomandattheirhomes.Seeingthesecriticalneedsmissinginthecommunity,Zimco,afamily?
ownedcorporation,foundedAirAdvantageinJune,2002toofferabroadbandsolution.
Initially,USDARuralDevelopmentmadetwoCommunityConnectGrantstoAirAdvantage:$219,176for
PortHope,Michiganand$214,532forUnionville,Michigan. Thegrantsprovidedfundingforawireless
infrastructureandcommunitycenterwith10computersinbothcommunitieswhereresidentscould
accesstheInternetusinghigh?speedbroadbandservice.
Asthebusinessgrew,AirAdvantageappliedtoUSDARuralDevelopment’sBroadbandLoanProgram. In
2004,theyreceivedalowinterestloanof$1,500,000toreachseveralMichigancommunitiesfollowedby
anotherloaninlate2005for$1,028,000foradditionalBroadbandexpansionintheruralcommunityof
Frankenmuth,Michigan.
In2009,USDAprovidedanadditionalloanfor$908,000,soAirAdvantagecouldupgradeandexpandits
services.
In2010,AirAdvantagewasselectedforaRuralDevelopmentBroadbandInitiativesProgram(BIP)award
undertheAmericanRecoveryandReinvestmentAct;a$32.3millionloananda$31.9milliongrant. These
fundswillbeusedtoextendbroadbandservicestolast?mileconsumersin13countiesthatmakeupan
areaknownastheGreatLakesBayRegionandThumbArea.
OnNovember30,2010,AirAdvantagereporteddeliveringbroadbandservicesto4,943customersinits
3,500squaremileserviceareausing350milesofwirelessnetworkbackbone.The65towerstransmit
informationthatreachesouttohouseholds,sixhospitals,and18schooldistrictswherestudentshaveat
least17distancelearningcoursesatanygiventime. Inaddition,AirAdvantagealsoprovidesserviceto21
hospitalsandmedicalfacilities,7policeservice,4firefacilities,4ambulanceservicesand59government
officelocationsthroughout75municipalities.
Studentscandoresearchandtakedistancelearningcourseswithouthavingtotravelgreatdistances. And,
fiftyormorestudentsarenowtakingadvantageofdualenrollmentclassestotakecollegeandhighschool
levelcoursesatthesametime. Theprogramispossiblebecauseofbroadband.
Businessesarealsorealizingthebenefitsthatbroadbandoffers. Atleast20AirAdvantagecustomersliving
inremoteNorthernMichiganhaveeliminatedlongcommutingtimesandenjoythebenefitsofworking
fromhome3?5daysaweek.
BroadbandthroughouttheregionwillimprovebecauseoftheBIPloanandgrant.TheBIPawardwillfund
additionalbroadbandinfrastructurewhichwillpass279,200households,approximately21,000businesses,and
4,000communityinstitutionsthatincludehospitals,libraries,universities,schoolsandgovernmententities.
Theprojectwillcreateorsaveanestimated142jobsandmayaddmanymoreasusersareconnectedtothe
systemandlocalbusinessesexpand. AirAdvantageisaproudrecipientoftheUSChamberofCommerceBlue
RibbonSmallBusinessAward. Thisawardisgiventocompaniesthathaveshownexcellenceinbusinesshistory
andcommitmenttocustomers,employees,andthecommunity.
? BroadbandInitiative.IncollaborationwiththeFederalCommunicationsCommission,SBA
engagedSCORE(CounselorstoAmerica’sSmallBusiness),Women’sBusinessCentersand
70
SmallBusinessDevelopmentCenterstodeveloptrainingcontentformaterialstoassistand
advisesmallbusinessentrepreneursonimprovingbusinessaccessandproductivitythrough
technology. TheseprofessionalcounselorswithintheSBApartnernetworkalsoeducate
companiesonthesmallbusinessopportunitiesarisingfromdevelopingandexpanding
broadbandtechnologies.Smallbusinessopportunitiesexistindiscoveringanddelivering
thenextgenerationofproductsandservices.
? TheSCOREBroadbandConsortium.ThisgroupprovidesInternetande?commerce
mentoring,trainingandservicestoensuresuccessforentrepreneursandsmall
businessowners.ConsortiumfoundersincludedAT&T,BestBuy,Cisco,Constant
Contact,Google,HP,Intuit,Microsoft,SkypeandTimeWarnerCableBusinessClass.
SCOREisdistributingthebroadbandtrainingcurriculumtotheirpartnersinallofthe
110Women’sBusinessCenters.
TheManufacturingExtensionPartnership(MEP).Acceleratingopportunitiestoleverageand
adopttechnologyisthekeytolong?termbusinessgrowthandproductivityforU.S.
manufacturers. MEPservesastheconnectionbetweenmanufacturersandtechnology
opportunitiesandsolutionsforgrowthintheglobalmarketplace.
? LeveragingTechnologytoStimulateBusinessGrowth. Inpartnershipwithotheragencies,
organizations,universitiesandFederallabs,MEPprovidesawiderangeofproduct
developmentandcommercializationassistanceservicestohelpmanufacturersrapidly
movenewproductopportunitiesandinnovationsintoproductionandoutintothemarket.
? NationalInnovationMarketplaceBuildsTechnology?BasedSupplierNetworks.MEPalsois
connectingmanufacturerstotechnologyandbusinessopportunitiesresultinginnew
marketsandnewinnovativeproductsnecessaryforhighgrowth. Inpartnershipwithother
organizations,theMEPprogramcontinuestopilottesttheNationalInnovationMarketplace
(NIM),whichfacilitatesconnectionsbetweentechnologyrequestors(OEMs),andpotential
suppliers,encouragingtechnologytranslationandadoption. Additionally,agroupof
partnersisfacilitatingthebuildingofhigh?growthtechnology?basedsuppliernetworks.
EntrepreneurshipProgramsforVeterans. TheSBAhaspartneredwithSyracuseUniversityon
threenewtrainingprogramsforAmerica’sveteransandtheirfamilies.
? TheEntrepreneurshipBootCampforVeterans(EBV)withDisabilities.EBVisdesignedto
openthedoortobusinessownershipforourveterans. Theprogramdelivers
entrepreneurshiptrainingthroughaone?year"bootcamp"forservice?disabledveteransof
thewarsinIraqandAfghanistanwhowanttostartorgrowsmallbusinesses.Thisyear,the
EBVprogramisexpandingtoatotalofsevenbusinessschoolsatuniversitiesaroundthe
country.
71
? WomenVeteransIgnitingtheSpiritofEntrepreneurship(V?WISE).V?WISEwillbeopento
womenveteransbeginninginMay2011.Theprogramconsistsofathreedayoff?site
trainingprogram,onlinetraining,andnetworksupportstructures.Classeswillbeheldinsix
cities,startingwithSanAntonioandBaltimorein2011.
? OperationEndureandGrow.OperationEndureandGrowprovidesonlineandin?person
businesscounseling,training,andmentoringtosmallbusinessownersandentrepreneurs
servingintheNationalGuardandReserve.Thisprogramalsoextendstomembersoftheir
immediatefamilies.
ScienceandTechnologyDirectorate(S&T).TheDHSScienceandTechnology(S&T)Research&
Development(R&D)PartnershipsGroupconductsextensiveoutreacheffortswithmembersof
theHomelandSecurityEnterprise(HSE)basedonthestrategicandprogrammaticneedsofthe
DepartmentandS&T.
? S&T’sSmallBusinessInnovationResearch(SBIR)ProgramOfficewithintheOfficeof
Public?PrivatePartnerships. DHSisoneof11FederalagenciesthatparticipateintheSBIR
Program.Since2004,theDHSSBIRProgramOfficehasadministeredtheFederally
mandatedSBIRProgramtostrengthentheroleofinnovativesmallbusinessconcerns(SBCs)
inFederallyfundedresearchorresearchanddevelopment. Specificprogrampurposesare
to:
? Stimulatetechnologicalinnovation
? UsesmallbusinessestomeetFederalR&Dneeds
? Fosterandencourageparticipationbysociallyandeconomicallydisadvantaged
SBCs,andbySBCsthatare51percentownedandcontrolledbywomen,in
technologicalinnovation
? IncreaseprivatesectorcommercializationofinnovationsderivedfromFederal
R&D,therebyincreasingcompetition,productivityandeconomicgrowth
? S&TSBIRSolicitations.Twosolicitationsarereleasedeachyearforwhichsmallbusinesses
cansubmitproposalsandcompeteforapproximately$15millionperyear. More
informationcanbefoundat:https://sbir2.st.dhs.gov.
? SBIROutreach. TheSBIRProgramOfficeparticipatesintwonationalSBIRconferenceseach
year,approximatelysixregionalandlocalconferencesandworkshops,andmonthlyvendor
outreachsessionstoprovidethesmallbusinesscommunityanopportunitytodiscusstheir
capabilitiesandlearnofpotentialprocurementopportunities.
72
? S&T’sOfficeofPublic?PrivatePartnerships.TheCommercializationOfficewithintheOffice
ofPublic?PrivatePartnershipsactivelyreachesouttosmallbusinessesthroughconferences,
workshops,panelparticipation,publicationsandpamphlets,andthe“FullResponse
Package.” TheFullResponsePackagecontainsacompanyoverviewtemplate,whichisa
vehicleinwhichcompaniescandescribetheirproducts,technologies,andservicesandhow
theyaligntotheknowncapabilitygapsofDHSanditsstakeholders.Companiesmayrequest
aFullResponsePackageatSandT_RDPartnerships@dhs.gov.Theseoverviewsareputinto
arepositoryavailabletoProgramManagerswithinS&Ttoidentifyrelevanttechnologies
thatmaybeapplicabletocurrentorfutureprojects.
? CompanyOverviews.Currently54percentofthecompanyoverviewsreceivedand70
percentofthebusinesscontactsmaintainedarefromsmallbusinesses. The
CommercializationOfficealsoprovidesdetailedinformationforsmallbusinesseson
variousopportunitiesforengagementwithinS&T,establishingopencommunications
betweenthepublicandprivatesectors.
? Public?PrivatePartnerships.DHSS&Tofferspublic?privatepartnershipprogramsthat
provideopportunitiestoevaluateandcertifyproductsandservicesrelatedto
stakeholderneeds.Theseclearinghouseprogramscreatemarketdifferentiatorsfor
smallbusinessinnovatorsandcreateotheropportunitiesforstrategicpartnerships
betweenprivatesectorentities.Thisfostersentrepreneurshipamongstsmallbusinesses
andprovidesvehiclesforindependentreviewofproductsandservicesdesignedtomeet
statedrequirementsandidentifiedpotentialavailablemarketsinthehomelandsecurity
enterprise. Moreinformationcanbefoundonlineat:
www.dhs.gov/xabout/structure/gc_1234194479267.shtm.
? OfficeofNationalLabs,TechnologyTransferOffice
? S&TandtheCenterforInnovation(CFI),Arlington,TX,recentlyenteredintoaMOUto
worktowardsfurtheringresearch,productdevelopment,commercialization,and
facilitatingeconomicopportunities.
? OneStopCareerCenters’SmallBusinessServices. One?stopsareadministeredatthelocal
levelwithinparameterssetbyETAandstatute.PreviousDOLreportsonincorporating
entrepreneurshipservicesintothoseprovidedatOne?Stopshavediscussedchangingthe
cultureoftheworkforceinvestmentsystemandencouragingLocalWorkforceInvestment
Boards(LWIBs)tobuildpartnershipsandprovideresourcesnecessarytohelpjob?seekers
becomeentrepreneurs.InNovember2010,ETAissuedTEGL12?10toencouragesupportfor
entrepreneurshipbystatesandLWIBs,toprovideinformationaboutthepublicworkforce
system’sroleinpromotingentrepreneurship,andtodescribeinnovativeentrepreneurship
programsinstatesandatDOL. TheTEGLencouragesthem“toestablishparametersfor
fundingentrepreneurialandself?employmenttraining”. Evidencehassuggestedthatsome
DOLprograms,includingthosethatpromoteentrepreneurship,aremoreeffectivewhen
73
One?Stopsareco?locatedwithservicecentersforagencieslikeHHSorSBA. Smallbusiness
assistancecenterscanmoreeffectivelyservicetheunemployedandminoritycommunities
byco?locatingwithDOLone?stops.TofindaOne?StopCareerCenter,visit
http://www.servicelocator.org.
74
VII.StrengthenedSmallBusiness
Protection
TheDodd?FrankWallStreetReportandConsumerProtectionAct(Dodd?Frank).Dodd?Frank
signedinJuly2010,providedseveralkeyreformstoaidthefinancialsystemandhelpsupport
U.S.smallbusinesses.
? ProvidingtheStabilityandFairnessSmallBusinessOwnersNeed.Thislegislationprovides
thestabilityandfairnesssmallbusinessownersneedinU.S.financialmarkets,ensuring
themaccesstocreditandopportunitiestogrowtheirbusinessandcreatejobs.Itprovides
clearrulesoftheroadforfinancialproductsandservicesandconsolidatesthenow
fragmentedFederalregulatoryauthoritiesrelatedtoconsumerfinancialprotectionintoone
agencytoensurefair,transparentandconsistentenforcementofconsumerfinanciallaws
andregulations. Lastly,itclosestheloopholesthatwereexploitedbycompetitorsof
communitybanks.Communitybanksaresomeofthestrongestpartnersofsmallbusinesses
andprovidekeypointsofaccessforcapitalneededtogrowsmallbusinessandcreatejobs.
? CreationoftheConsumerFinancialProtectionBureau(CFPB).TheActcreatesthe
CFPB,whichisdedicatedtoprotectingconsumerrights.AnindependentBureauof
ConsumerFinancialProtectionwillsetandenforceclear,consistentrulesforthe
financialmarketplace.Asingleconsumerbureauwillsetclearrulesoftheroadand
ensurethatfinancialfirmsareheldtohighstandards.(Smallbusinessesoutsidethe
financialsectorwillnotberegulatedbythenewconsumerprotectionagency).
? DebitCardReform.Newrulescappingdebitcard“swipe”feesattheactualcostof
processingthetransactionwillsavesmallbusinessesmillionsofdollarsannually.
CreditCardAccountability,Responsibility,andDisclosure(CARD)Act.ThePresidentsigned
theCARDActinMay2009toprotectAmericans,includingU.S.smallbusinesses,fromunfair
anddeceptivecreditcardpractices.
TheAffordableCareAct.TheAffordableCareAct,signedinMarch2010,providesmore
affordableandmoreaccessiblehealthcarecoverageforfamiliesandsmallbusinesses.
? HelpingProvideAccessandReduceCostsforSmallBusinessHealthcare. TheAffordable
CareActaddressedoneofthetopconcernsofsmallbusiness:accesstoaffordable,quality
healthcare.
75
? TaxCredits.Smallbusinessesarealreadybenefittingfromtargetedtaxcreditsthat
madeinsuranceaffordableforthem.Morethan4millionsmallbusinessesmayqualify
fortaxcreditstohelpthemaffordinsurance.
? Forthesmallestbusinesses,with10orfeweremployeesandaverageannual
wageslessthan$25,000,taxcreditscover35percentofemployercontributions
forpremiums. Thetaxcreditsareonaslidingscale,phasingoutatafirmsizeof
25employeesandaveragewagesof$50,000.
? IncreasedAccountabilityforRateHikes.Insurancecompaniesfrequentlychargehigher
premiumstosmallbusinessesandtheyhaveincreasedthesepremiumsathighratesin
recentyears. InSeptember,manystatesreceived$1milliongrantstostrengthentheir
premiumratereviewprocess.Somestateshavealreadyusedthesefundstomore
widelypublicizerateincreasesanddemandmoreactuarialjustificationforthem.
Beginningthisyear,statesandtheDepartmentofHealthandHumanServiceswillbe
publiclypostinginformationrelatingtomanyproposedrateincreasesthatare10
percentorhigher.
? BetterInformation.Rightnowsmallbusinessescancomparelocalinsurancecoverage
informationonwww.healthcare.gov.Smallbusinessownerscanlogontoseewhat
plansareavailableintheirarea.Userscandeterminetheireligibilityfordifferentprivate
andpubliccoverageoptions.
? InsuranceExchanges.Startingin2014,smallbusinessescanshopforinsuranceinan
exchangethatwillgivethemsimilarpurchasingpoweraslargebusinesses. Exchanges
willoffermorechoicesofhigh?qualitycoverageandlowerprices.Smallbusinesseswill
benefitfrominsurancewithloweradministrativecostscomparedtothechoices
availableinthesmallbusinessmarkettodaybecausetheywillbeabletopooltogether.
Thenon?partisanCongressionalBudgetOfficehasfoundthatexchangeswilllowerthe
costofhealthinsurancebyasmuchas4percent.
ImprovingRegulationsforSmallBusinesses.PresidentObamaiscommittedtolisteningtoand
workingwithsmallbusinessinordertobetterunderstandwheretheAdministrationcan
improveregulations.InadditiontotheStartupAmericaInitiative:
? RegulatoryFlexibilityforSmallBusinesses.TheOfficeofAdvocacy(Advocacy),atSBAis
responsibleforoverseeingFederalagencycompliancewiththeRegulatoryFlexibilityAct
(RFA).Aspartofthisoversight,Advocacyworkscloselywithregulatoryagenciestoensure
theyconsidertheimpactoftheirregulationsonsmallbusinessbeforearulebecomesfinal.
Aspartofthisprocess,Advocacyisabletohelptheagencycraftregulatoryalternativesthat
accomplishtheagency’sobjectivewhilereducingtheeconomicburdenonsmallbusiness.
InFY2010,Advocacy’sinvolvementwithagencyrulemakinghelpedsavesmallbusinesses
nearly$15billioninforegoneregulatorycosts.FormoreinformationonAdvocacy’swork
76
andcostsavingsfigures,pleasevisit:
http://www.sba.gov/sites/default/files/files/10regflx.pdf.
77
VIII.Conclusion
TheUnitedStatesofAmericawasbuiltthroughhardworkandinnovation.Buteachgreatidea,
beforeitgrowsandbecomesreal,needstohaveahome.OurNation’ssmallbusinessesare
thathome.Fromthe“momandpop”storesthatjustkeepscalingup,tothetwofriendsina
garagethatinventthenextbigthing,theUnitedStateshasbeen—andundertheObama
Administrationwillcontinuetobe—thepremierenvironmentforsmallbusinessesofallsectors
andsizestostartup,grow,andsucceed.
Overthepasttwoyears,thePresidentandagenciesacrosstheAdministrationhaveworkedto
implementpoliciesandprogramstohelpsmallbusinessestostartandgrowandhave
encouragedpublic?privatepartnershipstosupportworkforcere?trainingandentrepreneurship.
Thesehaveincludedprovidingtaxcutstohelpsmallbusinessesgrowandcreatejobs,
expandingaccesstocapitalforsmallfirms,expandingentrepreneurshipeducationand
mentorshipprograms,strengtheningandeducatingourworkforce,identifyingandremoving
unnecessaryexportbarrierstohelpsmallbusinessesexpandoverseas,andinvestingin
promisingnewcleanenergytechnologiestosupporthigh?growthstart?upcompanies.
Overthenexttwoyears,thePresidentandhisAdministrationwilldoevenmoretoenactthe
legislationandbuildthebestpoliciespossibletohelpourinnovators,entrepreneurs,andsmall
businessownersrevitalizetheeconomy.Todothis,theAdministrationwillcometoyou—the
Americansalloverthecountrythatarebuildingthebusinessestohousethenextgeneration’s
greatideas. TheAdministrationunderstandsthatcomingtogetherisjustthebeginningbut
thatworkingtogetherensuressuccess.
78
doc_953709695.pdf
This report focuses on the vital role that Americas entrepreneurs and small business owners play in strengthening the U.S. economy.
n
National Economic Council
MAY 2011
Introduction
ThisreportfocusesonthevitalrolethatAmerica’sentrepreneursandsmallbusinessowners
playinstrengtheningtheU.S.economy. TheObamaAdministrationhasputnewinitiativesand
increasedincentivesinplacetosupportsmallbusinesses–includingseventeentaxcuts,
improvedaccesstocapitalandexpandedsupportforhighgrowthbusinesses–astheycontinue
toout?compete,andout?innovatetherestoftheworld.
Overthepasttwoandahalfyears,PresidentObamahasenactedsweepingchangestosupport,
reinvest,andrevitalizeAmerica’seconomyinthewakeofamajorrecession. Asaresult,large
U.S.firmsarenowmakingpowerfulnewinvestments,includingbuildingnewfacilitiesand
buyingnewequipment.
Withregardstojobcreation,however,weknowthatAmerica’ssmallbusinessespackthe
biggestpunch,creatingtwooutofeverythreenewjobsintheU.S.eachyear. Thesesmall
businessesarethecornerstoneofourcommunities. Theyarethesourceofprideforworking
families. And,everyday,weseeAmerica’sentrepreneurscontinuetostepoutandtakerisks
withnewideasinordertohelpuswinthefuture.
ThisreportdetailsthemanyinvestmentsthisAdministrationhasmadesinceJanuary2009to
supportsmallbusinesses,investmentsthatinclude:expandingaccesstocapital,supporting
startupsandhigh?growthfirms,trainingAmerica’sworkforce,reducingbarriersto
entrepreneurship,increasingsmallbusinessexports,andmuchmore.
Onthatnote,wewouldliketothankthefollowingagenciesfortheircontributionsinpreparing
thisreport: theU.S.DepartmentofAgriculture,theU.S.DepartmentofCommerce,theU.S.
DepartmentofDefense,theU.S.DepartmentofHealthandHumanServices,theU.S.
DepartmentofHomelandSecurity,theU.S.DepartmentofLabor,theU.S.Departmentofthe
Treasury,theU.S.DepartmentofVeteransAffairs,theExport?ImportBankoftheUnitedStates,
theGeneralServicesAdministration,theNationalAeronauticsandSpaceAdministration,the
NationalScienceFoundation,andtheU.S.SmallBusinessAdministration.
Morethanever,weareallcommittedtosupportingentrepreneursandsmallbusinessesas
theycreatejobsandstrengthenAmerica’seconomyinthe21
st
century.
GeneB.Sperling KarenG.Mills
TheNationalEconomicCouncil U.S.SmallBusinessAdministration
TableofContents
ExecutiveSummary.........................................................................................................................1
I.SmallBusinessTaxBreaks............................................................................................................3
LegislationCommittedtoSupportingSmallBusinesses.............................................................3
SimplifyingTaxCredits................................................................................................................3
II.ImprovedAccesstoCapital.........................................................................................................6
EnhancedLendingPractices........................................................................................................6
SupportforUnderservedandDisasterAfflictedCommunities..................................................9
IncreasedCapitalforRuralBusinesses.....................................................................................12
NewandStrengthenedDevelopmentPrograms .....................................................................14
ListeningtoSmallBusinessesandBuildingonSuccess............................................................16
III.AugmentedFederalContractingOpportunities......................................................................19
PresidentialInteragencyTaskforceonFederalContractingOpportunitiesforSmallBusiness
andTheSmallBusinessJobsActof2010..................................................................................19
FederalContractingOpportunitiesforMinorities ...................................................................20
IncreasedFederalContractingDollars .....................................................................................22
MoreEfficientGovernmentContractingProcedures ..............................................................25
ContractingPartnershipsforSmallBusinesses ........................................................................26
MeetingNationalSecurityNeedsthroughSmallBusiness ......................................................27
IV.IncreasedU.S.ExportsthroughtheNationalExportInitiative...............................................33
TheNationalExportInitiativePromotesExportsbySmallBusinesses....................................33
ImprovingAdvocacyandTradePromotion..............................................................................33
HelpingMinority?OwnedFirmsExport ....................................................................................37
IncreasingAccesstoExportFinancing .....................................................................................38
JointEfforts...............................................................................................................................40
InternationalSmallBusinessCollaboration .............................................................................40
ReduceBarrierstoTrade..........................................................................................................41
RobustEnforcementofTradeRules ........................................................................................42
MacroeconomicSupportforExpandedExporting...................................................................43
V.EnhancedDevelopmentandEducationOpportunitiesforEntrepreneurs..............................44
DevelopmentProgramsforEntrepreneurs..............................................................................44
ProgramsforTraditionallyDisadvantagedGroups ..................................................................46
EnhancedRegionalEconomicCompetitiveness ......................................................................49
ImprovingAmerica’sEntrepreneurialInfrastructure...............................................................51
EducatingAmericanswith21stCenturySkillsandCreateaWorld?ClassWorkforce .............52
EducatingEntrepreneursandSmallBusinessesaboutSecurityConcerns ..............................53
VI.HeightenedInnovationandHighGrowthSupport..................................................................56
TheStartupAmericaInitiativetoSupportAmerica’sEntrepreneurs ......................................56
TheStartupAmericaPartnership .............................................................................................58
ToolsforSmallBusinesseswithHigh?GrowthPotential ..........................................................59
TheUSDAAgriculturalResearchService..................................................................................65
InvestmentsinBroadbandTechnologyforSmallBusinesses ..................................................68
TheManufacturingExtensionPartnership ..............................................................................71
EntrepreneurshipProgramsforVeterans ................................................................................71
ScienceandTechnologyDirectorate........................................................................................72
VII.StrengthenedSmallBusinessProtection................................................................................75
TheDodd?FrankWallStreetReportandConsumerProtectionAct ........................................75
CreditCardAccountability,Responsibility,andDisclosureAct ...............................................75
TheAffordableCareAct ...........................................................................................................75
ImprovingRegulationsforSmallBusinesses............................................................................76
VIII.Conclusion..............................................................................................................................78
ExecutiveSummary
SmallbusinessesaretheengineoftheAmericaneconomy,havingcreated64percentofnew
Americanprivatesectorjobsgeneratedinthepast15years—that’s40millionnetnewjobs
accordingtotheCouncilofEconomicAdvisers. Recognizingthiscriticalrolethatsmall
businessesplayintheU.S.economy,PresidentObamaiscommittedtoensuringthatsmall
businessescontinuetoreceivethetoolsandresourcestheyneedtoaddressthechallenges
theyface.Theseinitiativesoffersupporttosmallbusinessessotheyareabletobringthepower
oftheirideastothemarketplaceinwaysthatcancatalyzeandtransformoureconomy,
creatingjobsthroughnewinnovationsinproductsandservices.
SincetakingofficeinJanuary2009,PresidentObamahasmadeenormousstridesinsupporting
U.S.smallbusinesses. Goingforward,theAdministrationcontinuestochampionournation’s
vitalsmallbusinessresources.TheAdministrationcontinuestoemphasizeservingallU.S.small
businesseswhileplacingadditionalfocusonhistoricallyunderservedcommunitiesincluding,
minorities,women,veterans,andbusinessesineconomicallydisadvantagedareas.
SmallbusinessesencompassawideswathofAmerica—from“momandpop”MainStreet
storestoyounginnovatorsdreamingofthenextnewGoogle. Atthecoreofeverysmall
businessistheentrepreneur. Theseentrepreneursneedthetoolstomaketheirdreamscome
truefortheyarethesourceofAmerica’scompetitiveadvantage—toinspireandempoweran
evergreaterdiversityofcommunitiesandindividualstobuildgreatAmericancompanies.
Overthepasttwoandahalfyears,thePresidentandagenciesacrosstheExecutiveBranch
haveworkedtoimplementpoliciesandprogramstohelpsmallbusinessesbridgethecapital
andmarketgapandencouragedpublic?privatepartnershipstosupportworkforcere?training
andentrepreneurshipby:
? Supportingmorethan$53billioninSBAloanguaranteestomorethan113,000small
businesses;
? Awardingmorethan$221billioninFederalcontractstosmallbusinesses(FY2009
throughApril30,2011);
? Providingcounseling,throughSBAresourcepartnersandotheragencies,tomorethan2
millionentrepreneursandsmallbusinessowners;
? Awardingmorethan$4.5billioninresearchfundingthroughtheSmallBusiness
InnovationandResearchProgramduringFY2009andFY2010;and
? StreamliningFederalprogramstohelpsmallbusinessessuchastheDepartmentof
Defense’srecentannouncementtoreducethetimetopayitssmallbusinessvendors
1
from30daysto20days—whichwillimpactmorethan$60billionofgoodsandservices
itpurchasesfromsmallbusinesses.
TheAdministration’ssmallbusinessinitiativeshavebeenaccomplishedthroughthetireless
effortsoftheExecutiveAgenciesoftheExecutiveBranch,aswellasthroughanambitious
legislativeagenda.ThecapstoneofthiscontinuingsupportwastheSmallBusinessJobsActof
2010signedinSeptember2010,whichisthemostsignificantpieceoflegislationtohelpsmall
businessesinoveradecade.
Overthepasttwoandahalfyears,theAdministrationhasaccomplishedmuchinsupportof
smallbusinessesassetforthinthisreport,including:
I. ExpandedSmallBusinessTaxBreaks
II. ImprovedAccesstoCapital
III. AugmentedFederalContractingOpportunities
IV. IncreasedU.S.ExportsthroughtheNationalExportInitiative
V. EnhancedEntrepreneurialDevelopmentandEducationOpportunities
VI. HeightenedInnovationandHighGrowthsupport
VII. StrengthenedSmallBusinessProtection
Thisisthefirsttimeanadministrationhaspreparedacomprehensivereportthatcoverssmall
businesseffortsacrosstheFederalGovernment. Thisreportwaspreparedwithinputfromthe
followingagencies:theU.S.DepartmentofAgriculture,theU.S.DepartmentofCommerce,the
U.S.DepartmentofDefense,theU.S.DepartmentofHealthandHumanServices,theU.S.
DepartmentofHomelandSecurity,theU.S.DepartmentofLabor,theU.S.Departmentofthe
Treasury,theU.S.DepartmentofVeteransAffairs,theExport?ImportBankoftheUnitedStates,
theGeneralServicesAdministration,theNationalAeronauticsandSpaceAdministration,the
NationalScienceFoundation,andtheSmallBusinessAdministration.
2
I.SmallBusinessTaxBreaks
LegislationCommittedtoSupportingSmallBusinesses.TheAdministrationiscommittedto
providingsmallbusinesseskeysupportthroughaseriesoftaxbreaksthatcombineincreased
capital,aswellasprovidingkeyincentivesforsmallbusinessinvestmentandgrowth.Todate,
theAdministrationhassupported17directtaxbreaksthatsupportsmallbusinessgrowth.For
furtherinformationontaxbreaksforsmallbusinesses,pleasevisitwww.sba.gov/content/fact?
sheet?tax?breaks?small?businesses.
? FromtheAmericanRecovery&ReinvestmentAct(ARRA)Act,theHiringIncentivesto
RestoreEmployment(HIRE)Acts,andtheAffordableCareAct:
1. ANewSmallBusinessHealthcareTaxCredit.StartingretroactivelytoJanuary1,2010,a
newsmallbusinesshealthcaretaxcreditisineffectthatcoversupto35percentof
healthcarepremiums,withthetoprateincreasingto50percentin2014.TheIRShas
notifiedover4millionsmallbusinesses
About 4millionsmallbusinesses couldbe
eligiblefor new healthcare taxcredits if
they provide healthinsurance. This
includes Niedlov’s Breadworks in
Chattanooga,Tenn. Niedlov’sowners,
JohnandAngelaSweethavealways
wantedtoprovidehealth insuranceto
theiremployees. “It’s something that I
feelwouldmakeus a betteremployer
andamorecompletebusiness,”John
said. When Congresspassedthe
AffordableCareAct,John tookalook at
hisoptions andstudiedthenewtax
credits.Hedecidedthatnow wasthe
timetoprovidehealth insurancetohis
full?timeemployees.“It won’tbe cost
free,butit won’tcosttoomuch,”John
said,addingthatevenif it’s onlyfor a
handfulof people,it’s importantthat, as
asmallbusinessowner,he’s ableto
providebenefitsforhisemployees.
couldbeeligibleforthistaxcredit,andsmall
businessownerscannowfindinformation
onhowtoapplyforataxcreditonthe
DepartmentofHealthandHumanServices’
(HSS)website;availablehere:
http://www.healthcare.gov/foryou/small/i
ndex.html.Altogether,theAffordableCare
Actinvests$40billionoverthenextdecade
intaxcreditsthatenablesmallbusinessesto
invest,compete,andhiremoreworkers.
2. ANewTaxCreditforHiringUnemployed
Workers.Thiscreditcouldprovideupto
$10.4billionintaxreliefforbusinessesthat
hiredrecentlyunemployedworkersby
providingataxcreditequalto$1,000for
eacheligibleemployeethrough2010who
wasretainedformorethanoneyear.
3. BonusDepreciationTaxIncentivestoSupportNewInvestment.In2008and2009,
smallbusinesseswereabletorecoverthecostsofcapitalexpendituresfasterthanthe
ordinaryschedule,bydepreciating50percentofthecostinthefirstyear.
4. 75percentExclusionofSmallBusinessCapitalGains.UndertheRecoveryAct,75
percentofcapitalgainsfromcertainsmallbusinessstock(upfrom50percent) canbe
3
excludedfromtaxesifthestockisacquiredafterFebruary17,2009andbeforeJanuary
2011,andheldformorethanfiveyears.
5. ExpansionofLimitsonSmallBusinessExpensing.TheSection179deductionenables
smallbusinessestodeductupto$250,000ofthecostofmachinery,equipment,
vehicles,furnitureandotherqualifyingpropertyplacedinserviceduring2009. Thelimit
wouldhavebeen$133,000withouttheextensionintheARRA.
6. Five?YearCarrybackofNetOperatingLosses.Smallbusinesseswithdeductions
exceedingtheirincomein2008wereabletouseanewnetoperatinglosstaxprovision
togetarefundoftaxespaidinprioryears.Thisprovisionenablessmallbusinesseswith
anetoperatingloss(NOL)in2008toelecttooffsetthislossagainstincomeearnedinup
tofiveprioryears.Typically,anNOLcanbecarriedbackforonlytwoyears.
7. ReductionoftheBuilt?InGainsHoldingPeriodforSmallBusinessesfrom10to7to
AllowSmallBusinessGreaterFlexibilityinTheirInvestments.
8. TemporarySmallBusinessEstimatedTaxPaymentRelieftoAllowSmall
BusinessestoKeepNeededCashonHand.
? FromtheSmallBusinessJobsAct:
9. ZeroTaxesonCapitalGainsfromKeySmallBusinessInvestments.UndertheRecovery
Act,75percentofcapitalgainsfromcertainsmallbusinessinvestmentswereexcluded
fromtaxesin2009and2010.TheJobsActtemporarilyeliminatedthesetaxes
altogetherin2010,providinganimmediateincentiveforincreasedinvestmentsinsmall
businesses.
10.TheHighestSmallBusinessExpensingLimitEver–Upto$500,000.Buildingon
provisionsintheRecoveryActandHIREAct,theSmallBusinessJobsActincreasedthe
amountofinvestmentssmallbusinessescouldimmediatelywriteoffin2010and2011
to$500,000forqualifyinginvestmentsandraisedthetotalphaseoutlimitto$2million,
providinganimmediatetaxincentiveforthemtoexpandandcreatenewjobs.
11.AnExtensionof50%BonusDepreciation.TheJobsActextended,asthePresident
proposedinhisFY2011Budget,a50percent“bonusdepreciation”provisionthat
encouragesbusinessestoinvestinplantsandequipmentbyacceleratingtherateat
whichtheycandeductcapitalexpenditures.
12.ANewDeductionforHealthcareExpensesfortheSelf?Employed.Buildingonthe
AffordableCareAct,thejobsbillallowsself?employedentrepreneurstodeductthecost
ofhealthinsurancein2010forthemselvesandtheirfamilymembersincalculatingtheir
4
self?employmenttaxes,providingasignificanttaxcutthisyearforentrepreneurs
purchasinghealthinsuranceforthemselvesandtheirfamilies.
13.TaxReliefandSimplificationforCellPhoneDeductions.TheSmallBusinessJobsAct
changedtaxrulestosimplifydeductionsforbusinesscellphones—makingiteasierfor
smallbusinessownerstoreceivedeductionsthattheyareentitledtowithout
burdensomedocumentation.
14.AnIncreaseintheDeductionforEntrepreneurs’Start?UpExpenses.TheSmallBusiness
JobsActtemporarilyincreasedtheamountofstart?upexpendituresentrepreneurscan
deductfromtheirtaxesfrom$5,000to$10,000,offeringanimmediateincentivefor
aspiringentrepreneurstoinvestinstartingupanewsmallbusiness.
15.AFive?YearCarrybackofGeneralBusinessCredits.BuildingontemporaryRecoveryAct
measures,theSmallBusinessJobsActallowedcertainsmallbusinessesto“carryback”
theirgeneralbusinesscreditstooffsetfiveyearsoftaxes—providingthemwithan
instanttaxbreak—whilealsoallowingthesecreditstooffsettheAlternativeMinimum
Tax,reducingtaxesforthesesmallbusinesses.
16.LimitationsonPenaltiesforErrorsinTaxReportingThatDisproportionatelyAffect
SmallBusiness.Thebillchanged,beginningin2010,thepenaltyforfailingtoreport
certaintaxtransactionsfromafixeddollaramount—whichwascriticizedforimposinga
disproportionatelylargepenaltyonsmallbusinessesincertaincircumstances—toa
percentageofthetaxbenefitsfromthetransaction.
? AndfromtheTaxRelief,UnemploymentInsuranceReauthorizationandJobCreationAct:
17.100PercentExpensing.TheagreementincludesthePresident’sproposal—made
effectiveSeptember8,2010—totemporarilyallowbusinessestoexpense100percent
oftheirinvestmentsinthelastquarterof2010andinallof2011,potentiallygenerating
morethan$50billioninadditionalinvestmentin2011,whichwillfueljobcreation.
SimplifyingTaxCredits.TheTreasuryDepartmentisworkingonasetofregulatoryreformsto
theexistingNewMarketsTaxCredit,whichtheAdministrationisproposingtoexpandfrom
$3.5billionfor2011to$5billionfor2012initsFY2012Budgetproposal.Thesereformswill
makeiteasierforcommunitydevelopmententitiestoattractprivatesectorfundsfor
investmentinstartupsandsmallbusinessesoperatinginlower?incomecommunities.The
reforms,whichareexpectedtogointoeffectlaterthisyear,willrelaxthereinvestment
requirementsforcommunitydevelopmententitiesinvestingincertainoperatingbusinesses.
5
II.ImprovedAccesstoCapital
EnhancedLendingPractices.America’spreeminenceingeneratinginnovativenewcompanies
dependsonopenandwell?functioningcreditandcapitalmarkets.Duringthefinancialcrisisand
recessionaccesstocapitaldriedup,particularlyforsmallfirms.Asoureconomyrecovers,some
smallbusinesseshavecontinuedtostruggletoaccesscapitaltomaintainoperationsorgrow.
TheAdministrationhasbeenfocusedonaddressingtheseshortfallsandbarrierssincetaking
office.Throughnewlegislationandinitiatives,theObamaAdministrationhasachieved
enhancedlendingpracticesforsmallbusinesses.Now,agenciesandprivatelenderscanmeet
smallbusinesses’needsbetterthanever,withimprovedloanturnaroundtimes,morepointsof
access,increasedloanvolumes,andincreasedloansizes.
? SignificantlyIncreasedSmallBusiness
TotalNumberofSBALoansMadetoMore
Administration(SBA)SmallBusinessLoan
than113,000SmallBusinesses
Volumes.
FromJanuary2009toApril2011,SBAhas
– RecoveryActLoans. TheRecoveryAct
supportedmorethan$55.6billioninlendingto
morethan113,000smallbusinesses,including
implementedreducedfeesforSBA’stwo
morethan$42billioninloanswithreduced
largestloanprograms,7(a)and504,and
feesandhigherguaranteesmadepossible
alsoraisedtheguaranteesonSBA’s7(a)
throughtheAmericanRecovery&
loanprogram.Theseloanenhancements ReinvestmentActandtheSmallBusinessJobs
engineeredasignificantturnaroundin
Act.
SBAlendingatacriticaltime.Asof
September30,2010SBAapproved$22.6billioninRecoveryActloanguarantees,which
supported$30.4billioninlendingtosmallbusinesses.FromFebruary17,2009to
September30,2010,weeklySBAloandollarvolumesrosemorethan90percentinthe
7(a)and504programs,comparedtotheweeksprecedingARRA’spassage. Overall,
morethan70,000smallbusinessesreceivedSBAloanswithRecoveryAct
enhancements.
– SmallBusinessJobsAct.FollowingthepassageoftheSmallBusinessJobsActof2010in
September,whichextended7(a)and504loanenhancements,weeklyloanvolumesrose
andreachedahighofapproximately$2.2billion.Thisrepresentsthehighestweekly
lendinglevelsincetheSBAbegantrackingweeklyloanvolumes. AsofDecember31,
2010SBAapprovedmorethan$10billioninJobsActloanguarantees,whichsupported
morethan$12billioninlendingtosmallbusinesses.SinceenactmentoftheJobsAct,
SBA7(a)and504programshaveassistedmorethan19,000smallbusinessesinFY2011.
– LoanstoMinorities,Veterans,andWomen.FromJanuary2009toApril2011,SBAhas
supportedapproximately28,000minority?ownedbusinesseswithmorethan$10.33
billioninlendingsupport,approximately10,000veteran?ownedbusinesseswithalmost
6
? Increased P
outreach to
partners acr
SBAhas hel
whichsmall
programs. I
financialins
percent incr
nearly1,30
SBAloan si
? Expanded S
fulfilledthe
increaseSB
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expandand
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from$2 mil
manufactur
$50,000. Th
million. Int
over $2.6 bi
? Support for
into law ak
occupied co
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open andsa
? ProvideSm
Credit. Inhi
proposes $
$15 billioni
$2.5billioninlendingsupport,andapproximately25,000women?ownedbusinesses
withmorethan$5.76billioninlendingsupport.
ointsofAccess.CentraltotheturnaroundinSBAlendinghasbeenincreased
,andparticipationby,lending
osstheUnitedStates. Asaresult,
In2002,RobHatchandhiswifeTara
pedincreasethepointsthrough foundedAnemometrySpecialistsin
businessescanaccessSBAloan Alta,Iowa,whichprovideswind
nFY2010,morethan3,000
resourcesassessmentforwindfarms.
Manylendershadnotyetrealizedthe
titutionsmadea7(a)loan,a27
economicpotentialofwindenergyin
easesinceFY2008,including
Iowa,soRobandTarafinancedthe
0lendersthathadnotmadean
companyontheircreditcards. In
nceFY2007.
2009a$70,000SBAloanmade
possiblebytheRecoveryActhelped
BALoanSizes.TheJobsAct
RobandTaracontinuetoexpandthe
President’spledgetopermanently
company.Theyexpecttheexpansion
Aloanlimits,helpingensurethat
toaddanadditionalfivejobsin2011.
essesthatareinapositionto
createjobshaveaccesstothecapitaltheyneed.TheJobsActincreasedthe
(a)loansizefrom$2millionto$5million,increasedthemaximum504loansize
lionto$5millionforregularprojectsandfrom$4millionto$5.5millionfor
ingprojects,andincreasedthemaximumMicroloansizefrom$35,000to
eJobsActalsotemporarilyincreasedworkingcapitalloansfrom$350,000to$1
hefirstthreemonths,theseexpansionssupportedover1,200loanstotaling
llioninloansthatpreviouslywouldn’thavebeenawarded.
SmallBusinessCommercialRealEstate. ThePresidentcalledforandsigned
eyprogramthatwillhelpsmallbusinessownersrefinancetheirexistingowner?
mmercialrealestateloansthroughSBA?guaranteedprograms(the504
rogram). Thisprogramwillhelpsmallbusinessownerswhoarecurrentontheir
aymentsbutwhosebanksmight
InCleveland,Ohio,MiceliDairy
etermsoftheirloansandwhothus
Productsplanstobreakgroundona
npayments.Thisprogramis
$16millionto$20millionexpansion
eingimplementedandwillprovide
ofitsoperationthatwilladd60
llioninlendingsupportovertwo
workerstoits138?employeework
ingaccesstoSBAguaranteed forcewithinfiveyears.
efinancingoptionswillhelp
Thoseplansbecamearealitywhen
avoidforeclosure,keeptheirdoors
thecompanywasapprovedfora
vehundredsofthousandsofjobs.
$5.49million504loan. Theloanis
oneofthelargestintheprogram's
allBusinesseswithAccessto history,andwasmadepossibleby
sFY2012budget,thePresident
newprovisionsintheSmallBusiness
JobsAct.
165milliontosupportmorethan
nadditional7(a)loanguarantees
7
thatwillhelpsmallbusinessesoperateandexpandinthecomingyear. ThePresident’s
Budgetalsosupportsmeasurestostrengthenfinancingprogramsforsmallbusinessowner?
occupiedcommercialrealestateandequipmentthroughCertifiedDevelopment
Companies;leveragesearly?stagemezzanineinvestmentfinancingthroughSmallBusiness
InvestmentCompanies;andprovidesMicroloanfundingtoemergingentrepreneurs
throughnon?profitintermediaries.
? ExportImportBankoftheUnitedStates(Ex?Im).Followingthecreditcrisisof2008,
substantialsegmentsofthesmallbusinessexportsectorwereabandonedbytheprivate
sector.Chiefcausescouldbefoundintheretreatfromtradecreditinsurancebymajor
insurers,therisingoperatingcostoflendingforbanks,andtheprospectsofhighercredit
losses.Inresponse,Ex?Imhascreatedanewprogramforthesmallbusinessexporter.
? Reinsurance.During2010,Ex?Im
negotiateda$75million
PlansonInternational(NewGloucester,ME)isa
reinsuranceagreementwitha woman?ownedsmallbusinessthatexportsDell
majorinsurerwhohad computers,software,andaccessoriesto
increasedtheminimumsizeof
developingcountriesunderUN,USAID,andNGO
contracts,specificallyforaid,humanitarianand
allowabletransactionsand
developmentprojects.Thecompanyusesa$1.5
exitedseveralforeignmarkets.
millionworkingcapitalguaranteedlineofcredit
Ex?Imisnegotiatingreinsurance
withBankofAmerica.
dealswiththreeadditional
insurerstomakesurethat
Plansonreceiveda$3millioncontractwiththe
futuremarketvolatilitydoesnot
UNDevelopmentProgramandSudantosupply
leaveU.Ssmallbusinesses
equipmentfortheJanuary2011referendum.
withoutcoverage.
However,astheexportsweredestinedfor
Sudan,Ex?ImBankwasprohibitedfromproviding
? CreatingaNewSmallBusinessLending
itsguaranteeforthefinancingduetosanctions
underSection908oftheTradeSanctionsReform
Fund(SBLF)toSupportCommunity
andExportEnhancementAct.Ex?ImBankstaff
BanksLendingtoSmallBusinesses.
workedwiththeStateDepartmentandtheWhite
ThePresidentrequestedanewSmall
HouseinobtainingaPresidentialWaiver,signed
BusinessLendingFundthatwas
byPresidentObamaonNovember19,2010,
enactedintheSmallBusinessJobsAct.
whichpermittedthetransactiontogoforward.
Thiscreateda$30billioninitiativethat
encourageslendingtosmallbusinesses
byprovidinglowcostcapitaltoqualifiedcommunitybankswithassetsoflessthan$10
billion.ThroughtheSBLF,communitybanksandsmallbusinessescanworktogethertohelp
createjobsandpromoteeconomicgrowthinlocalcommunitiesacrossthenation.The
programprovidescommunitybankswithanincentivetoexpandloanstosmallbusinesses.
Thelargestincentiveswillgotobanksthatdothemosttoincreasetheirlending—
rewardingperformance,notpromises.Treasuryrecentlybeganacceptingapplications,and
allSBLFinvestmentswillbecompletedbySeptember27,2011.Todate,Treasuryhas
receivedapplicationsfromover250institutionstotalingmorethan$6billioninfunds
8
requested.Treasuryexpectstocompleteinitialfundingundertheprograminthefirst
quarterofFY2012,andwillcontinuethereaftertofundinstitutionsonarollingbasis.
? StateSmallBusinessCreditInitiative(SSBCI). TheSSBCI,whichwasfundedwith$1.5
billionfromtheJobsAct,willsupportlendingtosmallbusinessesandsmallmanufacturers.
SSBCIisexpectedtohelpspuratleast$15billioninlendingtosmallbusinesses. Under
SSBCI,participatingstateswillusetheFederalfundsforprogramsthatleverageprivate
lendingtohelpfinancesmallbusinessesandmanufacturersthatarecreditworthy,butare
notgettingtheloanstheyneedtoexpandandcreatejobs. SSBCIwillallowstatestobuild
onsuccessfulmodelsforstatesmallbusinessprograms,includingcollateralsupport
programs,CapitalAccessPrograms(CAPs),loanparticipationprograms,loanguarantee
programs,andotherinnovativeprograms,suchasstate?sponsoredventurecapital
programs. ExistingandnewstateprogramsareeligibleforsupportundertheSSBCI.States
arecurrentlyapplyingforprogramfunds.TodatetheSSBCIhasapprovedallocationsto
NorthCarolina($46million),Michigan($79million),California($169million),Connecticut
($133million),Missouri($269million)andVermont($132million).Pleasevisit
www.treasury.gov/resource?center/sb?programs/Pages/ssbci.aspxformoreinformation.
SupportforUnderservedandDisaster?AfflictedCommunities.TheAdministrationis
committedtodevelopingeconomiesandspurringentrepreneursinallregionsacrosstheU.S.—
throughthegoodtimesandthebad.Theseprogramsaredesignedtoaidthoseregionsthat
needitmost.
? CommunityDevelopmentCapitalInitiative(CDCI). Treasury’sOfficeofFinancialStability
launchedCDCItoprovidelow?costcapitaltodepositoryCommunityDevelopmentFinancial
Institutions(CDFIs),includingbanks,thrifts,andcreditunions. CDFIsareanimportant
sourceofcreditforsmallbusinessesinunderservedcommunities. Theprogramwas
designedtorecognizeCDFIs’unique,mission?orientedfocusandtheirsuccessinreaching
underservedcommunities. CDCIinvestmentsweremadeatadividendrateof2percent.To
encouragerepayment,whilerecognizingtheuniquecircumstancesfacingCDFIs,the
dividendrateunderCDCIislowinitiallyandwillgraduallyincreaseto9percentaftereight
years. CDCIcompletedfundingonSeptember30,2010. $570millionwasdisbursedto84
financialinstitutionsin26states,theDistrictofColumbia,andGuam.
? CommunityDevelopmentFinancialInstitutions(CDFI)Fund. Throughmonetaryawards
andtheallocationoftaxcredits,theCDFIFundhelpspromoteaccesstocapitalandlocal
economicgrowthinurbanandrurallow?incomecommunitiesacrossthenation. Through
itsvariousprograms,theCDFIFundenableslocally?basedorganizationstofurthergoals
suchas:economicdevelopment(jobcreation,businessdevelopment,andcommercialreal
estatedevelopment);affordablehousing(housingdevelopmentandhomeownership);and
communitydevelopmentfinancialservices(provisionofbasicbankingservicesto
underservedcommunitiesandfinancialliteracytraining). InFY2010,theAdministration
requestedandsecuredenactmentofanincreaseinthebudgetoftheCDFIFundto
9
$246,750,000from$107milliontheprioryear. ManyoftheCDFIsareproviding
microenterpriseloans,smallbusinessloansandloanstonon?profitsworkinginsomeofthe
country'smostdistressedcommunities. Additionally,theCDFIFundmodifieditsapplication
andcompliancerequirementsundertheNewMarketsTaxCreditProgramtoencourage
moreinvestmentsofequityinbusinesses. Furthermore,throughthenewSBACommunity
Advantageprogram,CDFI’sarenowabletolendtosmallbusinessesthroughSBA’s7(a)
program.
? SupportforCapitalDirectlytoUnderservedCommunities.SBAiscommittedtoexpanding
accesstocapitalforsmallbusinessesandentrepreneursinunderservedcommunitiesso
thatitcandriveeconomicgrowthandjobcreation.SBAloansarethree?to?fivetimesmore
likelythanconventional,non?guaranteed,smallbusinessloanstogotowomen? and
minority?ownedsmallbusinesses,accordingtotheUrbanInstitute.Recentstudieshavealso
demonstratedthatsmallloanamountsareparticularlyimportanttothesebusinesses.
Moreover,underservedcommunitieshavebeenhitdisproportionatelyhardbythe
recession.InadditiontoSBA’salreadyexistingloanprograms,SBAaddedtwonew
initiativesthatareaimedatincreasingaccesstocapitalforbusinessesinthese
communities.TheUrbanInstitutereportisavailableat:
http://www.urban.org/UploadedPDF/411596_504_gap_analysis.pdf.
? SmallLoanAdvantage. SmallLoanAdvantageoffersmorethan600PreferredLenders,
includingmanyofthenation’slargestlenders,theopportunitytoput7(a)loansof
$250,000andlowerintothehandsofsmallbusinessesandentrepreneursthrougha
streamlinedapplicationprocess,whilealsohavingtheregular7(a)Government
guaranteeofupto85percent.Thiswillencourageincreasedavailabilityofvitalsmaller
dollarloansforsmallbusinessesinunderservedcommunities.
? CommunityAdvantage. WiththeCommunityAdvantagepilot,theagencywillexpand
thepointsofaccesssmallbusinessownershaveforgettingloansbyopeningthis
portionofSBA’s7(a)loanprogramto“mission?focused”financialinstitutions,including
CommunityDevelopmentFinancialInstitutions,CertifiedDevelopmentCompaniesand
non?profitmicrolendingintermediariesforsmalldollarloans.Thepilotoffersthesame
streamlinedapplicationprocessandregular7(a)guaranteesasSmallLoanAdvantage
andincreasesthenumberofavailableSBAguaranteedlendersfocusedonserving
entrepreneursinunderservedcommunities.
? SBACouncilonUnderservedCommunities.Theagency’snewAdvisoryCouncilon
UnderservedCommunities,establishedinDecember2010,consistsof20membersfrom
acrossthecountry.MemberswillprovideacriticallinkbetweenSBAandsmallbusinessesin
traditionallyunderservedcommunities.Memberswillreflectavarietyofkeysectors,
includingbusinessowners,bankingandfinance,communitydevelopment,nonprofitand
academia.
10
? SmallBusinessDataCollectionInitiative.Limitedcollectionoftimely,relevantdataon
smallbusinesslendinghasmadeitdifficulttoisolatetherecession’simpactonsmall
businessaccesstocreditandhasmadeitmorechallengingtodevelopsolutionstoaddress
problemsthatarise.AsaresulttheSBAhastakenatwoprongedapproachtoSmall
BusinessDataCollection:
? ImprovedDataAdvocacy.TheSBAhascontinuallyadvocatedforaugmenteddata
collectionpractices,muchofwhichhasbeenreflectedintheDodd?FrankBill.
? DataAnalysis.TheSBAcontinuallyaggregatesandanalyzesallavailablethird?party
smallbusinessdatatobestunderstandthemarketandkeyeffects.
? NationalAdvisoryCouncilforMinorityBusinessEnterprises.OnNovember3,2010,U.S.
SecretaryofCommerceGaryLockeannouncedthemembersoftheNationalAdvisory
CouncilforMinorityBusinessEnterprises(NACMBE). ThisisthefirstSecretarial?level
advisorycouncilforminority?ownedbusinessesinnearly40years. TheAdvisoryCouncilwill
provideadviceandrecommendationstotheCommerceSecretaryonabroadrangeof
policyissuesaffectingtheminoritybusinesscommunityaspartoftheObama
Administration’sfocusoncreatingnewjobsandstrengtheningtheU.S.economy. The
MinorityBusinessDevelopmentAgency(MBDA)hostedtheinauguralmeetingofthe
NACMBEonMarch11,2011.
? CapitalSupportforSmallBusinessinDeclaredDisasters.SBAprovidesdirectlending
supportinFederallydeclareddisastersintheformofEconomicInjuryDisasterLoansand
thedefermentofexistingloanbalances.AsofApril30,2011,forFY2010andFY2011there
hadbeen442declareddisastersandtheSBAhadprovided$274,323,100insupportto
2,808smallbusinesses.USDARuralDevelopment’sBusinessandIndustry(B&I)Guaranteed
LendingProgramprovided$57millioninlendingsupportforbusinesseslocatedindeclared
disasterareasinFY2010.
? SupportduringtheDeepwaterHorizonInitiativeontheBP/GulfCoastOilSpill.Following
theeconomicdevastationoftheBP/GulfCoastoilspill,numerousFederalagencies
leveragedtheirresourcetosupportsmallbusinesses.
? EconomicSolutionsTeam(EST).TheEconomicSolutionsTeam,coordinatedbyEDAled
over20assessmentteamsthroughtheaffectedregiontoidentifykeyissues.
Furthermore,SBAchairedthesmallbusinessworkinggroupoftheEST,whichprovided
keyshort?termandlong?termrecommendationsforsupport,whichultimatelyincluded
theroll?outofaFederalresourceroadshowthroughouttheregion
? MBDA.ThecommunitiesservedbytheMBDAweredisproportionatelyaffectedbythe
catastrophicGulfCoastoilspill. MBDAprovidedAfrican?American,Cambodian,
Hispanic,andVietnamesefishermenandshrimperswithtechnicalassistancein
11
rebuildingtheirbusinesses. MBDABusinessCenterslocatedintheGulfCoastregion
(Alabama,LouisianaandMississippi)successfullyhostedmultipletownhallslistening
sessionsthroughoutLouisianaandMississippi,engagedvariouschambersofcommerce
(African?American,AsianandHispanic),tradeassociations,andcommunityleadersin
additiontoprovidingbusinessdevelopmenttraininginanefforttosupporttheminority
businesses,entrepreneursandcommunitiesinallaspectsoftheirrecovery.
? DOCInitiativeonHaitiReconstruction.Sincethefirstmomentsofthedisaster,MBDAhas
assistedtheObamaAdministrationinrallyinginternationalsupportforHaiti’srecovery,
specificallywithtargetedoutreachtotheHaitiandiasporaandotherminority
entrepreneursandbusinessesthatcouldassistwiththemedium? tolong?term
reconstructioneffortsinHaiti.
? MBDAStrategy.InPartnershipwiththeDepartmentofState,MBDAdevelopedatrade
andinvestmentinitiativedesignedtosupporttherebuildingoftheHaitiansmall? and
medium?sizedbusinesscommunitywhilepromotingthecompetivenessofU.S.firmsin
Haitireconstructioninitiatives.
IncreasedCapitalforRuralBusinesses.TheObamaAdministrationiscommittedtorevitalizing
growthacrossallsectorsofAmerica.ThisincludesAmerica’sfarmersandranchers,a
nationwidenetworkofentrepreneursandavitalpartofthenationaleconomy.
? SmallBusinessAssistancetoFarmers. TheRecoveryActprovidedimmediateassistanceto
2,875producerswhoneededloansbutwereunabletoobtaincommercialcreditfrom
conventionallenders,includingmorethan600sociallydisadvantagedproducersandalmost
1,200beginningproducers.Theseloanswereusedtopurchaseland,livestock,equipment,
feed,seed,andsupplies,ortoconstructbuildingsormakefarmimprovements,allofwhich
spurgrowthinruralcommunities. Intotal,theDepartmentofAgriculture’sFarmService
Agency(FSA)issuednearly37,000loansinFY2010,providingmorethan$5billionin
assistance,including$2.2billionto20,000beginningorsocially?disadvantagedproducers
combined. TheRecoveryActalsoprovided$800milliontofarmersandrancherswhose
operationswereatriskduetolost
cropsasaresultofnaturaldisaster.
InLouisiana,a$2.5millionB&Iloanwasusedto
Inaddition,thesafetynetprovided restructureexistingdebt,purchaseequipment,and
provideworkingcapitalforasausageandfood
byFSAofferedfarmersarangeof
productscompany.
toolstohelpthemweather
unforeseenperiodsoffinancial
B&Iguaranteedloanfundshelptocreate42jobsand
difficulty,suchasafixedbaseof
save75jobs,andexpandedthisbusiness’marketfor
minimumfinancialassistancefor linkCajunsausage,dressingmix,roux,andotherCajun
cultureproductstoanationalmarket.
incomecertainty,emergencyand
disasterpayments,stabilization
assistanceduringseasonalcashflowslumps,andpaymentstotransitiontonewtypesof
cropsorreservelandforconservationpurposes. Morethan$11billionwasinvestedinFY
12
2010toprovideasafetynetforthiscriticalsmallbusinesssectorthatservesAmerican
households.
? TheDepartmentofAgriculture’s USDAprovidedAREAPloanguaranteetoacompanygrowing
RuralBusinessService(RBS). RBS
tomatoesyear?roundina25acregreenhouseinMaine. The
farmusesthermalblanketstoreduceheatlossduring
programsdirectlysupportthe
Maine’scoldwinters. USDAfundingassistedwiththe
financingofruralbusinesses,
purchaseofa6Megawattbiomassboilersystemthatreplace
creatingsustainablejobsand
90percentofthefossilfuelusedwiththeoldboilersystem.
advancingeconomicdevelopment Thecompanyalsowasabletoexpanditspermanentwork
forcefrom95to225jobs.
throughoutruralAmerica. USDA’s
BusinessandIndustryGuaranteed
InNorthPlatte,Nebraska,Gary’sSuperFoodswantedto
LendingProgramimprovesaccess
operateanewgrocerystorewithgreaterenergyefficiency.
tocapitalforAmerica’srural
WiththeREAPloanguarantee,RuralDevelopmentwasable
businessesthroughproviding toofferthelenderan85percentguaranteeon50percentof
lendingsupportinpartnership
thetotalprojectcostsaswellasa25percentgrant.Today,a
heatreclaimsystemcapturestheheatfromthestore’s
withbothnationalandlocal
refrigerationunitsandredistributestheheatthroughaduct
communitybanks. Nearly$3
worksystemtoheatthebuilding. Also,energyefficientT?12
billioninlendingsupportwas
lightingwasinstalled.Sincetheopeningofthestoreinearly
deliveredinFY2010.InFY2010, 2009,thebusinesshasrealizedasignificantenergysavings.
USDARuralDevelopment’s
BusinessprogramsincludedassistanceintheB&IProgram,whichfunded1,030projectsfor
$2.9billion.
? RuralEnergyforAmericaProgram
InAdamsCounty,Iowa,theRBEGprogramwasusedto
(REAP).TheREAPprogramprovides
helpcapitalizearuralrevolvingloanfund. Usingits
loanguaranteesandgrantsfora 2007awardof$89,004,thefundassisted3businesses,
numberofpurposesthatassistrural
created5jobsandsaved32jobs. In2008,asecond
grantof$95,000providedmorecapitalforthefund.
smallbusinessesandagricultural
Theplanincludedassistingasimilarnumberof
producerswiththecostofpurchasing
businessesandcreatingandretainingmorejobs. Ina
andinstallingrenewableenergy
countywithapopulationofabout4,000people,the
systemsandenergyefficiency 2007activityonthisfundingamountedtoincreasing
improvements. Theprogramcan
employmentby1quarterof1percent.
resultinthecreationofenough
InNewLebanon,Tennessee,anewculinarycenterwas
electricitytofuelanentirefarm
openedwithhelpfromtheUSDA.The2,400?square?
operationwithenoughleftovertosell
footcommercialkitchenandstoragespaceopened
backtothegrid? creatingincomein earlythisyear.BuiltfromRBEGgrantsfromtheUSDA
ruralareasandhelpingtocleanthe
andtheTennesseeAgricultureEnhancementProgram,
thecenterisdesignedtohelpareasmall?business
environment. InFY2010REAP
ownershaveasanitary,affordablevenueformass?
provided$83,926,976ingrantsthat
producingtheirproducts.Theculinarycenteris
savedorcreated1,996jobs,while
intendedtoalsoprovideaspotforlocalfarmerswitha
assisting2,417smallbusinesses. surpluswhowanttomakejamsorsauces,andfor
REAPalsoprovided$72,998,504in
studentstolearnaboutentrepreneurshipandthe
businessofculinaryarts.
loansthatassisted382small
businesses.
13
? RuralBusinessEnterpriseGrant(RBEG)Program.TheRBEGprogramfacilitates
developmentofsmallandemergingprivateruralbusinessenterprisesthroughflexibleloan
andgrantauthoritytoassistsmallbusinesseswiththeirspecificneeds.
? MemorandumofUnderstanding(MOU)betweenSBAandUSDA. Thetwoagencies
executedanMOUinApril2010toencouragesustainablegrowthanddevelopmentforrural
businesses. Keyelementsoftheagreementaimtoimprovecoordinationinthedeliveryand
developmentofprograms,improveopportunitiesforsmallbusinessestostartandgrow,
andincreasethevolumeofbusinessloansguaranteedbyUSDARuralDevelopmentand
SBA,alldirectlyhelpingtoincreasecapitaltoruralAmerica.
NewandStrengthenedDevelopmentPrograms. Inordertoprovidesmallbusinesseswith
accesstocapitalthattheyneedtothrive,theObamaAdministrationhasimplementednew
programswhichallowinnovativesmallbusinessestofurtherdevelop.Theseprogramsare
particularlyessentialforsmallbusinessesinemergingsectors.
? TheEconomicDevelopmentAdministration(EDA).EDAplaysaleadingroleintheFederal
economicdevelopmentagendabypromotingcompetitiveecosystemsforentrepreneurship
andinnovationthroughitsOfficeofInnovationandEntrepreneurship(OIE),andpreparing
Americanregionsforgrowthandsuccessintheglobaleconomy. ExamplesofEDA
programsincluderevolvingloanfunds,investmentfundsforinnovationinfrastructure,and
university?entrepreneurpartnerships.
? i6Challenge. OIE’si6Challengewasdesignedtoencourageandrewardinnovativeideas
thatacceleratetechnologycommercialization,newventureformation,jobcreation,and
economicgrowthacrosstheUnitedStates. In2010,sixi6winnerseachreceived$1million,
throughEconomicAdjustmentAssistanceFunds,andwereeligibleforuptoanadditional
$1millioninfunding. Visitwww.eda.gov/i6formoreinformation.
14
– i6Green.In2011,OIEwillimplementi6
GreeninpartnershipwiththeU.S.
DepartmentsofAgriculture,Energy,the
U.S.EnvironmentalProtectionAgency,
theNationalScienceFoundation,and
Commerce’sNationalInstituteof
StandardsandTechnologyandU.S.
PatentandTrademarkOffice.i6Green,
withanticipatedfundingofover$12
million,supportedwithGlobalClimate
ChangeMitigationIncentiveFunds,
buildsuponthesuccessoflastyear’s
inaugurali6Challenge.Itpromotes
commercializationoftechnology
through“ProofofConceptCenter”
methodology,whichsupportsall
aspectsoftheentrepreneurship
process,fromassistingwithtechnology
feasibilityandbusinessplan
development,toprovidingmentorship
andaccesstoearly?stagecapital.i6
Greenwinnerswilldemonstrateaclear,
specific,andrealisticapproachto
acceleratingthemovementofclean
economytechnologiestothe
marketplace,includingtechnologiesto
advancerenewableenergy,energy
efficiency,reuse&recycling,
restorationand/orgreenbuildings.
? RegionalInnovationAccelerationNetwork
(RIAN). Acceleratingthedevelopmentof
high?growth,innovation?basedfirmsisthe
hallmarkofa21
st
centuryeconomic
developmentstrategy.EDA’sOIEisworking
withtheStateScienceandTechnology
Institutetocreateanationalnetworkof
venturedevelopmentorganizationstobuild
capacityforsupportinginnovationand
entrepreneurshipindistressedregions.
Venturedevelopmentorganizations,such
asJumpStartinNortheastOhioandBen
FranklinTechnologyPartnersin
Pennsylvania,provideavarietyofservices
15
i6Challenge2010Winners
AtlantaRegion:TheGlobalCenterforMedical
Innovation,anot?for?profitcorporation,will
implementthreemajorinitiativestoacceleratethe
developmentandcommercializationofnext
generationmedicaldevicesandtechnology.
AustinRegion:NewMexicoTechnologyVentures
Corporationwilldevelopaninfrastructureforthe
successfulmaturationoftechnologiesdeveloped
undertheSmallBusinessInnovationResearch(SBIR)
programintocommerciallyviableenterprises.
ChicagoRegion:UniversityofAkronResearch
FoundationandAustenBioInnovationInstitutein
AkronpartneredtodevelopInnovativeSolutionsfor
InventionXceleration.Thisprojectwillincrease
innovationandminimizethetimefromideationto
commercializationofnewtechnologiesbybringing
togetherworld?classscientists,physicians,
engineers,researchers,andentrepreneursinthe
biomedicaldevice/productandpolymerscience
industriesofnortheastOhio.
DenverRegion:BioGenerator,Washington
UniversityinSt.Louis,SaintLouisUniversity,the
UniversityofMissouriatSt.Louis,DonaldDanforth
PlantScienceCenter,St.LouisCountyEconomic
Council,andtheSt.LouisDevelopmentCorporation
willadvancebiosciencetechnology
commercializationthroughcollaborativetargeted
pre?companytranslationalresearch,company
creation,andfirstfunding,andbuildan
entrepreneurialinfrastructurethatismarket?based
aroundtheneedsofexistingbiosciencefirmsand
investors.
PhiladelphiaRegion:InnovationWorks,Inc.and
CarnegieMellonUniversitywillcreatethe“Agile
InnovationSystem,”toacceleratethe
commercializationoftechnologiesbeingdeveloped
withintheregion’suniversitiesandsmallbusinesses.
SeattleRegion:TheOregonTranslationalResearch&
DrugDevelopmentInstitute,theOregon
Nanoscience&MicrotechnologiesInstitute,andthe
OregonBuiltEnvironment&Sustainable
TechnologiesCenterarejoiningforcestocreatethe
firstcomprehensive,innovationinfrastructure–the
OregonInnovationCluster–toaddressgapsinthe
commercializationcontinuumforthreebroad
industry/technologyclusters.
thatdirectlybenefitsmallbusinesses,includingaccesstocapital,expertbusinessassistance,
andnetworkdevelopment.In2011,RIANisidentifyingbestpractices,measuringeconomic
impacts,andprovidingassistancetoregionsinterestedinestablishingorestablishing
venturedevelopmentorganizationstosupportbusinessdevelopment.
? TheBroadbandTechnologyOpportunitiesProgram(BTOP)andtheBroadband
InfrastructureProgram(BIP).TheRecoveryActprovidedatotalofapproximately$7billion
ingrantandloanfundstotheDepartmentofCommerce’s(DOC)National
TelecommunicationsandInformationAdministration(NTIA)andtheDepartmentof
Agriculture’s(USDA)RuralUtilitiesService(RUS)forprojectsthatwillincreaseaccesstoand
adoptionofbroadbandserviceacrossAmerica. AllfundswereawardedbySeptember2010
forprojectsthatwillbebuiltby2013. Over$1.7billioninfundswereprovidedforsmall
businessprojects. Additionally,manysmallbusinessesareprojectpartnersorvendors,and
someoftheseprojectstargettraininginonlineresourcesforjobsearches,
entrepreneurship,andsmallbusinessesissues. Beyonddirectawards,smallbusinesseswill
benefitindirectlyfromtheseprojectsthroughincreasedbroadbandavailabilityfor
themselvesandtheircustomers.Thepotentialcommercialbenefitstosmallbusinessesare
clear,includingmoreaffordableaccesstoinformationandjobtrainingforemployees;
improvedaccesstopartners,vendors,andsuppliers;faster,morecost?efficientoutreachto
potentialandactualconsumersthroughwebsites,e?mails,ande?commerce;moreefficient
businessmanagementthroughcloudcomputingandotheronlinetools;andaccessto
regional,nationwide,orevenglobalmarkets.
ListeningtoSmallBusinessesandBuildingonSuccess.TheObamaAdministrationis
committedtoimprovingonitssmallbusinessinitiativesbycontinuingwhatworksandcutting
whatdoesnot.Inadditiontobuildingonsuccess,PresidentObamaandhisAdministrationwill
improvetheseeffortsbylisteningtothepeopletheprogramsaredesignedfor—smallbusiness
ownersandleaders.
? FederalReserveBankSmallBusinessLendingRoundtables.TheBoardofGovernorsofthe
FederalReserveSystemhostedaforuminJuly2010entitledAddressingtheFinancing
NeedsofSmallBusinessestoshareinformationandgatherperspectivesonhowtobest
addresstheimmediateandlonger?termcreditneedsofsmallbusinesses. Theforum
followedaseriesofmorethan40smallbusinessmeetingsorganizedbytheFederalReserve
System’sCommunityAffairsOfficesacrossthecountrytodeepenourunderstandingofthe
financingchallengesthatsmallbusinessescurrentlyface.
? TreasuryDepartmentSmallBusinessandEntrepreneursAccesstoCapitalConference.The
TreasuryDepartmenthostedaMarch2011conferencewhichexploredaccesstocapitalfor
smallbusinesses.Accesstocapitalisvitaltospurringinvestmentinsmallandinnovative
businesses,promotingjobcreation,andfuelingsustainableeconomicgrowth.Abroad
rangeofoptionstohelpsmallbusinessesaccessthecapitaltheyneedtoexpandandgrow
werediscussed.
16
? StartupAmericaRegulatoryRoadshow.StartupAmericaistheWhiteHouseinitiativeto
celebrate,inspire,andacceleratehigh?growthentrepreneurshipthroughouttheNation.
OnecoregoaloftheStartupAmericainitiativeistoreducebarriersthatarehampering
entrepreneurs’abilitytostartandscaletheirbusinesses.TheWhiteHouse,inpartnership
withtheSBA,decidedthebestwaytofigureoutwhichregulatorybarrierswerehindering
entrepreneurswastoaskthosewhoaredirectlyaffectedsothatentrepreneurscanhelp
identifysolutionsaswell.That’swhyduringMarchandApril2011SeniorAdministration
officialshavevisitedfourcitiesandheldroundtablediscussionstoaskentrepreneursfor
theirideasonwhichFederalregulationsandprocessescouldbechangedtofostergreater
entrepreneurship,innovation,andjobcreation.Attheendofthisseriesofroundtables,all
thefeedbackandonlinecommentswillbeusedtocreatealistofthetopsuggestions.
AdministrationofficialswillusethisinputtowriteareporttothePresidentonhowtobest
reducebarriersandcontinuetostrengthenAmerica’sentrepreneurialspirit. TheOfficeof
InformationandRegulatoryAffairsisalsocommittedtosharingthepublic’ssolutionswith
theagenciesasitcoordinatesimplementationofthePresident’sExecutiveOrderfor
regulatoryreview.Thegovernmenthasalsocreatedanonlinetoolwhereanyonecan
submit,comment,andvoteonthenewideasandproposedsolutionstheythinkaremost
important.Theonlinetoolcanbefoundat:http://reducingbarriers.ideascale.com/.
? SBAListeningTour.SBAhashostedaSmallBusinessJobsActListeningTourthatwillcover
13citiesandincludetribalconsultations.Allkeystakeholders—includingsmallbusiness
owners,primecontractors,lenders,congressionalstaffandtheprocurementworkforce—
wereinvitedtotheevents.TheobjectivesofthetouraretoprovideinformationonSBJA
provisions,receiveinputonkeySBJAprovisionsandensureSBJAimplementationisa
collaborativeprocesswithstakeholders.
? WinningtheFutureForumatClevelandStateUniversity.Therearedifferentkindsofsmall
businessesallacrossAmericabutatthecoreofeverysmallbusinessistheentrepreneur.
Theseentrepreneursneedthetoolstomaketheircompaniesgrowandtheirdreamscome
truebecausetheyareAmerica’scompetitiveadvantage.Thiscomparativeadvantageis
uniquebecausenotonlydoesitprovideinnovationbutalsoinspirationandempowerment
toanevergreaterdiversityofcommunitiesandindividualsdesiringtobuildgreatAmerican
companies.Inordersupportthis,thePresidentandseveralmembersofhiscabinettraveled
toClevelandStateUniversityinCleveland,Ohiotohearfromlocalsmallbusinessowners,
entrepreneurs,andnon?profitorganizationswhatexactlytheAdministrationcanimprove
upontowintheeconomicfuture.Conversationscenteredonthefivecentraltopicsof
accesstocapital,entrepreneurship,exports,workforcedevelopment,andcleanenergy.
? TheWhiteHouseBusinessCouncil.PresidentObamahasre?launchedtheWhiteHouse
BusinessCouncilaspartoftheAdministration’swaytoreachouttolocalsmallbusiness
ownersandentrepreneurs. Specifically,theAdministrationwillbeginaseriesofWinning
theFutureRoundtableswithAmericanbusinessthatwillsendseniorAdministration
officialstomoderatediscussionswithlocalbusinessleadersinatleast100communities
17
acrossall50statesbyyear?end2011.Thisinitiativealsoservesasacalltoactionbythe
Presidentontheimportanceofsupportinglocaljobgrowthandeconomicinvestment. This
initiativeiscoordinatedbytheWhiteHouseBusinessCouncil.TheCouncilencourages
seniorAdministrationofficialstogettingoutofWashingtontoheardirectlyfromAmerican
businessleadersandentrepreneurs,andthattheideastheyarehearingacrossthecountry
arebroughtbacktoWashington,furtheringtheAdministration’scommitmenttogrowjobs
andincreaseAmericaneconomiccompetitiveness. Over100seniorAdministrationofficials
arenowmembersoftheWhiteHouseBusinessCouncil.
18
III.AugmentedFederalContracting
Opportunities
PresidentialInteragencyTaskforceonFederalContractingOpportunitiesforSmallBusiness
andTheSmallBusinessJobsActof2010. InApril2010,PresidentObamasignedaPresidential
Memorandumin2010highlightingtheneedtoprovidesmallbusinessesopportunitiesin
FederalcontractingandestablishinganInteragencyTaskForceonFederalContracting
OpportunitiesforSmallBusinesses.InSeptember,thesamemonththeTaskForce
recommendationswerereleased,thePresidentsignedintolawtheSmallBusinessJobsAct.The
SBAisimplementingtherecommendationsaswellastheSmallBusinessJobsActprovisions.
TheTaskForceidentifiedthreekeypriorityobjectiveswithactionablerecommendations:
? StrongerRules.Insufficientguidanceandgapsincurrentpolicyhampertheuseoftoolsthat
providecontractingopportunitiesforsmallbusinesses.TheTaskForcerecommended
actionstostrengthenandupdatepolicieswheretheyareweakoroutdatedandtodevelop
themwheretheyarelacking:
– Set?Asides.Updateacquisitionpoliciesandregulationstoprovideclearguidanceon
smallbusinessset?asidesformultipleawardcontractsandrelatedtools.
– ContractBundling.Issueguidanceclarifyingpracticesandstrategiestomitigatethe
negativeeffectsofcontractbundlingonsmallbusinesses,whereworkthathasbeen
performedbysmallbusinessesisconsolidatedinamannerthatmakesitdifficultfor
smallbusinessestocompeteforFederalcontracts.
– Mentor?ProtégéPrograms.DevelopaGovernment?wideframeworkforsmallbusiness
Mentor?Protégéprograms,inwhichlargebusinessesarepairedwithsmallbusinessesto
providetechnicalandfinancialassistance,andclarifytherulesforsmallbusiness
teaming.
– Subcontracting.Strengthentherequirementsforsmallbusinesssubcontractingplans
andenhancetheelectronicsubcontractingreportingsystem(eSRS).TheeSRSisoneofa
numberofgovernment?widesystemsthattheGeneralServicesAdministration(GSA)
managesonbehalfofFederalagenciestosupportFederalacquisitionactivities.
– AgencyReview.Identifywherefocusedeffortswilllikelyhavethemostpositiveeffect
onincreasingsmallbusinessutilizationinprimecontracting.
– Insourcing.Clarifythepoliciesthataddresstherebalancingoftheworkforceand
evaluatetheimpactofinsourcingonFederalsmallbusinesscontractors.
19
– Suretybonds.ConductafullreviewoftheSBASuretyBondprogram,thefinancial
productsitoffers,anditscurrentfundingtodetermineifitismeetingtheneedsofsmall
businesses.
? Abetterequipped,moreinformed,andmoreaccountableacquisitionworkforce.Alack
ofknowledgeandagencyaccountabilityinhibitstheGovernment’sabilitytomeetand
exceedsmallbusinessprocurementgoalsonanongoingbasis.TheTaskForce
recommendedincreasingtheknowledgebaseandefficiencyleveloftheprocurement
workforceandprovidingappropriateincentivesandaccountabilityforagenciestomeet
smallbusinessgoals.
– MandatoryTraining.Strengthentheskillsoftheacquisitionworkforcebyrevising
existingcorecertification;requiringtrainingonsmallbusinesscontracting,procurement
policiesandregulations;andcreatingfocusedrefreshermaterialsforcontinuous
learning.
– AccountabilityandRecognition.Usemeaningful“carrotsandsticks”tocreateagreater
senseofagencyaccountabilityforreachingsmallbusinessFederalcontractinggoals.
– SharingBestPractices.Facilitatetheidentificationandrapidadoptionofbestpractices,
acrosstheagenciestomaximizesuccessfulstrategies.
? ImprovedOutreachandBetterUseofTechnologyandData.Thecurrentdatasystemsin
theFederalacquisitionenvironmentarecumbersomeandnotuserfriendlyformanysmall
businesses,especiallyforthosewhoarenewtothesystemsandtryingto“gettheirfootin
thedoor.”TheTaskForcerecommendedaone?stopshopforeasieraccesstoprocurement
information,aswellasgreaterfocusontheaccuracyofprocurementdata.
– Improved AccesstoBusiness and TrainingOpportunities. EnhanceFedBizOpps.gov,the
Government?widepointofentryonbusinessopportunities,to also serve as aone?stop
resource for annualrequirements forecasting agencies’ prime contracting opportunities
andforpostingsubcontractingopportunities.Thewebsitealsohoststheoutreach
calendarofallFederalagencymatchmakingandtrainingeventsandadirectoryof
onlineagencysmallbusinessresources.
– ImprovedAccesstoData.Improvetheaccessibilityandusabilityofsmallbusiness
procurementdataintheFederalProcurementDataSystem(FPDS).
– ImproveDataQuality.Improvedataqualityrelatedtosmallbusinesscontracting
throughuseofvalidationrulesandimprovedsystemsquality.
FederalContractingOpportunitiesforMinorities.AtatimewhenAmericansareenduringthe
challengesofaneconomicrecoveryandelevatedunemploymentrates,MBDAhasremained
diligentinenhancingthegrowthandglobalcompetitivenessofthefastestgrowingsegmentof
20
theU.S.businesscommunity–minority?ownedbusinesses.AlongwiththeSBAandtheOffice
ofManagementandBudget(OMB),MBDAwasnamedasoneoftheofficialco?chairsofthe
InteragencyTaskForce,designedtoassistFederalagenciesinreachingtheirFY2011small
businesscontractinggoalswhileexpandingminoritybusinesscontractingopportunities.
? AmericanRecoveryandReinvestmentAct.Sinceitsinception,MBDAhasplayedanintegral
roleinsupportingminority?ownedfirmsinAmericanRecoveryandReinvestmentAct
(ARRA)efforts. Theseeffortsincluderedirecting$900,000inprogramfundingin2009to
supportARRAeffortsonthestateandlocallevels. ARRAeffortsalsoincludedworkingwith
keyrepresentativesattheFederal,stateandlocalgovernmentlevelstoensureminority
businessesreceivetheir
fairandequitableshare
StarksContractingCompany,Inc.isaveteran?ownedsmallbusiness
contractingcompanyprimarilyengagedintheconstructionof
ofARRAcontract
commercialandinstitutionalbuildingsandappurtenances.
opportunities.
Thecompanywasoriginallyestablishedin1933asJ.P.Starks
Contractorandincorporatedin1967.TheBiloxi,Mississippi?based
? ContinuedSupport.
companyhasbeendoingbusinesswithNASA’sJohnC.StennisSpace
MBDAhascontinued
Centerformorethan30years.
tosupportcontract
InNovember2006,Starkswasawardeda$19millionconstruction
andfinancing
contracttobuildanewEmergencyOperationsCenter(EOC)atStennis.
opportunitiesas
Theapproximately80,000?square?footEOCconsolidatesthecenter’s
ARRAwindsdown. medicalclinic,firedepartment,securityservices,energymanagement
controlsystem,andincidentcommandpost.
MBDAledor
participatedin112 TheEOCisontracktobeStennis’sfirstLeadershipinEnergyand
ofthetotal300
EnvironmentalDesign(LEED)project.LEEDisathird?partycertification
programthatisthenationalbenchmarkforthedesign,construction,
Federallysponsored
andoperationofhigh?performancegreenbuildings.
ARRA?relatedevents
TheEOCshowcasesastate?of?the?artHazNetEmergencyManagement
andhelpedfacilitate
SystemdevelopedthroughNASA’sInnovativeResearchProgram.The
$150millionin
EOCisoneofonlynineFederalfacilitiescertifiedStormReady,a
additionalARRA?
designationgivenbytheUnitedStatesNationalWeatherServiceto
relatedcontractsfor
communitiesandsitesacrossthecountrythatdemonstratesevere
minority?owned weatherreadiness.
firmsonthestate
Starkswonthecontractovertwolargecontractorsinthefullandopen
andlocallevel. competitionwithabidthatwas$2millionless.ThisallowedStennisto
reinvestthecostsavingsinotherHurricaneKatrinaremediationwork.
? 10,000NewJobs.
Duringthefirsttwo
yearsoftheObamaAdministration,MBDAreportedthatitfacilitatednearly$7billionin
totalcontractsandfinancingsand,accordingtoMBDAstudies,thecreationofover10,000
newjobs
? FY2010Results.InFY2010,MBDAreportedthatitassistedminority?ownedfirmsin
securingnearly$4billionincontractsandfinancingopportunitieswhilehelpingminority?
ownedbusinessescreate6,397newjobs,thehighestlevelofperformanceinthehistoryof
theAgency
21
? FY2009Results.InFY2009,MBDAassistedminorityfirmsinsecuring$3billionincontracts
andfinancingopportunitieswhilehelpingminority?ownedbusinessescreate4,134newjobs
IncreasedFederalContractingDollars.TheAdministrationcontinuestofulfillitscommitment
tobeingagoodcustomertoournation’ssmallbusinessesandiscommittedtoensuringan
appropriateshareofitscontractingneedsgoestosmallbusinesses.
? Morethan$100billiontoSmallBusinessesthroughGovernmentContracts.Eachyear,the
FederalGovernmentspendsabouthalfatrilliondollarsongoodsandservicesandtheSBA
workstofacilitatethemaximumparticipationofsmallbusinessesintheseexpenditures,
includingthose theSBAparticularly
Likemanysmallbusinesses,HalHaysConstruction,Inc
targetsbusinessesownedbywomen,
(HHCI)reliesonFederalcontractsformuch?needed
certainsocioeconomicgroups,service?
revenue,andtheynoticedanuptickincontractsas
disabledveterans,andthoseinareas soonasRecoveryActspendingbecameavailable.The
companyusedRecoveryActcontracts,aswellasSBA’s
hardesthitbytheeconomicdecline. In
8(a)andHUBZoneprograms,toexpanditsreach,grow
2009,theGovernmentawardedsmall
thebusiness,andhirenewworkersdespitetough
businessesalmost$100billionin
economictimes.HHCIisworkingwithnewcustomers,
contracts—anincreaseinthedollarand
liketheDepartmentofTransportation,andinnew
percentageamountsover2008forthe sectorsoftheeconomy.Withcontractsavailable
throughoutthecountry,HalHaysConstructionhas
overallsmallbusinessgoalandevery
beenabletoexpanditsgeographicreach.
socio?economicgoal.Andtodate,
nearly$11billioninRecoveryAct
HHCIcompetedforandwonseveralRecoveryAct
contractshavegonetosmall
contracts,includingan$8.6millioncontracttoinstall
businesses.Thesedollarsprovided solarpanelsonAlcatrazIslandfortheNationalPark
Service,a$7.2millioncontractforworkatPearl
smallbusinessesamuch?neededboost
HarborfortheNavy,andacontracttobuildroadsin
tocreateandretainjobsandhelp
RedwoodNationalParkfortheFederalHighway
revitalizeoureconomy.
Administration.
? MeetingandExceedingFederal
LargercontractsimprovedHHCI’sportfolioandhelped
thecompanycompetewithlargerfirms. Most
ContractingGoals.TheAdministration
importantly,thecontractshavehelpedHHCIprevent
iscommittedtoensuringthat23
layoffsandcreatejobs.Withthenewbusinessthe
percentofFederalcontractingdollars
RecoveryActhasbroughtin,Hayshasretained35
gotosmallbusinesses.Additionalsub?
employees—andhired30more.
goalsseektoprovide5percentof
Federalcontractingdollarstosmalldisadvantagedbusinesses,5percenttowomen?owned
smallbusinesses,3percenttoservice?disabledveteran?ownedsmallbusinesses,and3
percenttosmallbusinessesinhistoricallyunderutilizedbusinesszones(HUBZones).Under
theRecoveryAct,32.62percentofallFederalcontractingdollarswenttosmallbusinesses,
andallsub?goalswereexceeded.
22
HUBZoneContractingInAction
AfterearningNASA’stopthreecorporatehonorsinlessthan2years,AppliedGeoTechnologies(AGT)has
distinguisheditselfasoneofthemostdetail?orientedcontractorsintheindustry.Infact,youmightevencall
ittheirbusinessstrategy.“Continuousimprovementisnotjustabuzzwordwithus,”saidMikeMiller,
InterimPresidentandCEOatAGT.“It’sanoperationalmissionthatdriveseverythingwedo—fromglobal
administrationandstrategicplanningrightdowntothepatternwemowinthegrass.”
Withacadreofoperationalservicesspanningcommercial,aerospace,anddefenseconcerns,maintaining
suchaconsistentlyhighlevelofsuccessisnoeasyfeat.“Asourcustomers’needsevolve,sodoesourlist
ofproducts,services,andevenlocations.Butwitheachnewventure,we’reproudtoupholdthevalues
thathavesustainedusthisfar.Putthecustomerfirst,doitonce,anddoitright.”
Inmanyways,AGT’sidealsarenodifferentthantheorganizationstheyserve.“NASAdidn’tbecomewhat
itistodaybyrestingonitsaccomplishments,”addedC.C.Fridlin,DirectorofBusinessDevelopmentat
AGT.“Witheachnewmilestonecamethemotivationtopushharder,learnmore,achievefaster,and
reachhigher.Weliketothinkwedothesame.”
Theirrecordagrees.Inthefirstquarterof2010alone,AGTearnedboththeprestigiousGeorgeM.Low
QualityAwardandtheJohnC.StennisSpaceCenterContractorExcellenceAward—twoofthehighest
commendationsforaspacecontractor.
TheGeorgeM.LowAwardisNASA’spremierqualityandperformancehonor,recognizingexcellence
andoutstandingtechnicalandmanagerialachievementsinqualityandperformanceonNASA?related
contractsorsubcontracts.Aspartofitstirelessdedicationtooperationalefficiency,AGTdevelopeda
qualitybuilt? inapproachtocontractwork.Theresultingchangesincludedimprovementsineverything
fromprocesscontroltomanagementoversight,asanattempttoreducetheriskofqualityand/or
performanceissuesatalllevels.Asaresult,AGTdeliveredreductionsinhumanerror,increasedscores
fortechnicalperformanceandtimeliness,zerocostoverruns,andanexcellentsafetyrecord.
TheLowAwardcomesontheheelsofthecovetedStennisContractorExcellenceAward,whichrecognizes
outstandingproductandserviceperformanceforworkrelatedtotheCenter’slaboratoryservices.Prior
tothat,AGTbecamethefirstresidentagencyatStennisSpaceCentertoreceivetheOccupationalSafety
andHealthAdministrationVoluntaryProtectionProgram“Star”statusforsafetyimplementations.AGT
wasalsonamedtheCenter’sSmallBusinessPrimeContractoroftheYearunderNASA’sSmallBusiness
IndustryAwardsprogram.
? IncreasingOpportunityforWomenOwnedBusinesses. TheWomen?OwnedSmall
BusinessContractingprogram,authorizedmorethantenyearsago,wasfinally
implementedbytheObamaAdministrationthisyear. TheruleispartoftheObama
Administration’soverallcommitmenttoexpandingopportunitiesforsmallbusinessesto
competeforFederalcontracts,inparticularthoseownedbywomen,sociallyand
economicallydisadvantagedpersonsandveterans. Thisruleidentifies83industriesin
whichwomenownedsmallbusinesses(WOSBs)areunder?representedorsubstantially
under?representedintheFederalcontractmarketplace. Inadditiontoopeningupmore
opportunitiesforWOSBs,theruleisalsoanothertooltohelpachievethestatutorygoal
that5percentofFederalcontractingdollarsgotowomen?ownedsmallbusinesses. SBA
releasedthefinalWomen?OwnedSmallBusinessRuleinOctober2010tocoverWOSBs
andeconomicallydisadvantagedWOSBs.InFebruary2011,SBApostedguidelinesfor
23
theprogramtowww.sba.gov/wosb.WOSBscanregistertobeeligibleforcontracts
underthenewrulebyvisitingonline.
? IncreasedAgencyAccountabilityforSmallBusinessesandUnderservedCommunities
throughUpdatedScorecard.Toholdagenciesaccountablefortheirindividualgoals,
SBAreleasedanewandmorecomprehensivecontractingscorecardformatinFY2010
thatimprovesthewaysmallbusinesscontractingperformanceismeasuredacrossthe
Government.Inaddition,SBAandtheOfficeofManagementandBudget(OMB)are
workingcloselywithallprocurementagenciestoensureaccuratedatacollection.
? NationalGrantAwardsforMBDABusinessCenters.OnApril1,2011,MBDAannounced
$7.8millioninfundingfor27MBDABusinessCenterslocatedacrossthecountryandPuerto
Ricotooperate30MBDABusinessCenters,includingnewlocationsopeningforthefirst?
timeinCleveland,Ohio;Denver,Colorado;andManhattan,NewYork. Thestrategic
businessconsultingservicesprovidedbytheMBDABusinessCenterswillgenerate
increasedfinancing,publicandprivatesectorcontractopportunitiesandrelatedawardsto
minoritybusinesses,inadditiontoassistingminority?ownedfirmsincreatingandretaining
jobs. TheawardsweremadeonApril6,2011.
– 2011MBDANationalTrainingConference.FromJune20–24,2011,inHouston,MBDA
willhostaconferenceforallofitsBusinessCentersandstafftoreviewObama
AdministrationprioritiesaswellasDepartmentofCommercestrategiesandinitiatives
tostrengthentheeconomy,createjobsandpromoteU.S.exports. Inaddition,the
Conferencewillprovideon?goingbusinessdevelopmenttrainingtoMBDA’sBusiness
CentersandtoMBDABusinessDevelopmentSpecialistsnationwide.
– 29
th
National MinorityEnterpriseDevelopment (MED) Week Conference.In
collaborationwiththeSBA, this nationalconference, scheduled forSeptember27?30 in
Washington,DC, willprovideminoritybusinessenterprises (MBEs)withaccess to the
policymakers, programmanagers, financiallenders andprocurement officers who are
vitaltotheirsuccess. TheMEDWeekConferencewillincludeaBusiness?to?Business
Expotoexpandprocurementopportunitiesandexpectstoexceedthe2010B2Blevels
of$30billioninprocurementopportunitiesand1,500conferenceattendees. MED
Weekwillalsoprovidegreaterfocusonexportingopportunitiesandimplement
targetednetworkingsessionstoenhancejointventuresandstrategicpartnerships.
? GSAMentor?ProtégéProgram. GSA’smentor?protégéprogramfosterslong?term
relationshipsbetweenGSAprimecontractorsandsmallbusinessestoenhanceprotégés’
capabilitytowinandperformsuccessfullyonGSAcontractsandsubcontracts. Thenew
mentor?protégéprogramhasalreadyhelpedboostsmallbusinessesacrossthecountrywith
55agreementsinplace,including31withservice?disabledveteranownedsmallbusinesses.
Inoneexample,aprotégéreceiveda$3.5millioncontractduetoassistancefromtheir
mentorandtheprogram. GSAislearningofmoresuccesseslikethisaswemeasureour
first?yearresults. GSAplanstoaugmentthisprograminFY2011withatailoredworkshop
24
series. Thisprogramwillbenefitbusinessesofallsizes,withprocurementbenefitsforboth
protégésandmentors.
? CommitmenttoTransportationInfrastructure.InhisFY2012BudgetPresidentObamalaid
outaboldnewplanforrebuildingandmodernizingAmerica'stransportation
infrastructure—combiningnewinvestmentstorenewandexpandournation'sroads,
railwaysandrunwayswithalong?termvisionforthefuture.Thisplanwillbringjobstoour
economynow,befullypaidforandnotaddtothedeficitovertime,andincreaseour
nation'sgrowthandproductivityoverthelong?term.Thiswillprovideincreasedcontracting
opportunitiesforU.S.SmallBusinesses.
MoreEfficientGovernmentContractingProcedures.InadditiontoofferingincreasedFederal
contractingopportunitiestosmallbusinesses,theObamaAdministrationiscommittedto
makingcontractingproceduresmoreefficient.Thismeanssmallbusinesseswillbeableto
spendmoretimeworkingontheprojectandlesstimeapplyingfortheproject.
? EliminationofProgrammaticInefficienciesforFederalContracting.
? HUBZone.TheHistoricallyUnderutilizedBusinessZones(HUBZone)programhelpssmall
businessesinurbanandruralcommunitiesgainpreferentialaccesstoFederal
procurementopportunities.Thesepreferencesgotosmallbusinessesthatobtain
HUBZonecertificationinpartbyemployingstaffwholiveinaHUBZone.Thecompany
mustalsomaintaina"principaloffice"inoneofthesespeciallydesignatedareas.The
HUBZoneProgramimplementednewprocessesinFY2009/FY2010tominimizewaste,
fraud,andabuseandtoreducethesubsequentcertificationbacklog.Thisnewapproach
minimizesthenumberofineligiblefirmsobtainingcertification,butresultedinan
increasedamountofworkrequiredtorevieweachapplication Asaresult,HUBZone
builtupalargebacklogofapplications,whichhassincebeenreduced. TheSBAalso
performedmorethan1,200sitevisitsofHUBZonefirmstoenhancetheprogram’s
integrityandensurethattheprogramservesthevitalneedsofeligiblesmallbusinesses.
? Revised8(a)Regulations.The8(a)BusinessDevelopmentProgramisanimportant
resourceforsmallbusinessesseekingbusiness?developmentassistance.Namedfor
Section8(a)oftheSmallBusinessAct,thisprogramwascreatedtohelpsmalland
disadvantagedbusinessescompeteinthemarketplace.Italsohelpsthesecompanies
gainaccesstoFederalandprivateprocurementmarkets.SBArecentlyconductedthe
firstmajorreviewofthe8(a)regulationsintenyears.Newregulations,whichwere
draftedaftergatheringover2,500commentsfromsmallbusinessesandstakeholders
werefinalizedandreleasedinFebruary2011.Thenew8(a)regulationsstrengthentools
suchasthementor?protégéprogramandensurethatbenefitsoftheprogramflowto
theintendedrecipients. Foradditionalinformationpleasevisit
www.sba.gov/content/revised?8a?regulations.
25
? StrongerOversightandEnforcement.WorkingwithitsFederalpartners,theSBAhastaken
multiplestepstostrengthenoversightandenforcementtobetterensurethebenefitsof
Federalsmallbusinesscontractingprogramsaregoingonlytoeligiblefirms.Significant
stepshavebeentakentostrengthencertificationprocesses,ongoingmonitoringand
oversight,andtimelyenforcement.Theseeffortsareaimedatreducingtheopportunities
forabuseofthesecriticalprogramsandaggressivelypursuingfraudulentactivityand
ineligiblefirms.
? EnhancedGeneralServicesAdministration(GSA)e?CommerceTools. GSAAdvantage!,
www.gsaadvantage.gov,aFederalonlineshoppingandorderingsystem,givesGovernment
agenciesaccesstoover18,000vendorcontracts,including15,000heldbysmallbusinesses,
andover28millionproducts,servicesandsolutions.Thewebsite,establishedin1996,has
beenrevampedwiththelatestandmostwidelyusedcommercialtechnologies,enhanced
search,andonlineorderingandpaymentfeatures.Vendorscannowpostmoredetailed
productandshippinginformation,videos,andhighresolutionpictures.Vendorsand
Governmentbuyerscanconductdirectonlinesales,streamliningandmodernizingtheway
theydobusiness.GSAAdvantage!providesawidearrayofsmallbusinesses,including
women?owned,minority?owned,veteran?owned,andHUBZonefirms,withnew?and?
improvedmarketingandsalescapabilitytoGovernmentbuyers.GSAAdvantage!makesit
easierforcustomerstocomparepricesfrommultiplevendorsandtofilterandfindsmall
businesses,enhancingtheirabilitytomakegoodpurchasingdecisionsandincreasesmall
businesssales.Thesitehascloseto800,000registeredusersandreceivesapproximately
500,000visitsperday.
ContractingPartnershipsforSmallBusinesses.EntrepreneursacrossAmericahavecitedhaving
amentorasanecessityforasuccessfulventure.Theseprogramsofferpartnershipstobuildthe
relationshipsthatwillallowsmallbusinessesandnewenterprisestocontinuetogrowand
createjobs.
? Public?PrivateSectorFederalContractingPartnerships.GovernmentContractingMentor?
Protégéprogramspairprivatesectorcompanieswithsmallbusinessestoprovidetechnical
and/ormanagementassistance,financialassistance,subcontractingopportunitiesand
opportunitiesforjointventures. AspartoftheSmallBusinessJobsAct,theMentor?Protégé
programwillnowbeextendedtoservice?disabledveteran?ownedsmallbusinesses,
women?ownedsmallbusinessesandHUBZonesmallbusinesses.
? NASAMentorProtégéAgreements.Therewere16Mentor?ProtégéAgreementsfrom
2008?2010.Theestimateddollarscreditedtothevariousmentors’subcontractingplansfor
allagreementsis$2,715,408.ThetotaldollarsthatMentorshavesubcontractedtoprotégés
duringtheiragreementsfrom2008?2010is$2,357,620.
26
? PartnershipswithNationalLaboratories.TheDepartmentofEnergy(DOE)National
Laboratorieshaverobustsubcontractingprogramswhichcreatenumerousopportunities
forsmallbusinesses. BasedonFY2009reporting(thelatestavailable),intotal,the
ManagementandOperating(M&O)contractorssubcontracted$9.446billion,ofwhich52.5
percentwenttosmallbusinesses($4.959billion).ForthetenOfficeofSciencelaboratories,
$1.957billionwassubcontracted,ofwhich$949million(or48.5percent)was
subcontractedtosmallbusinesses.Eachyear,theOfficeofSciencenegotiatessmall
businesssubcontractinggoalswitheachofitslaboratories.Thesegoalsincludesmall
businesssubcategoriessuchasveteran?ownedsmallbusinesses,service?disabledveteran?
ownedsmallbusinesses,HUBZonesmallbusinesses,small?disadvantagedbusinesses,and
women?ownedsmallbusinesses. DOE’sM&Ocontractorsusevarioussourcestolocate
qualifiedsmallbusinessestosatisfytheirsubcontractingneeds,includingSBADynamic
SmallBusinessSearch,CentralContractorRegistration,Sub?Net,emailsolicitationsfrom
smallbusinesses,andtheannualDOESmallBusinessConference. Inthelasttwoyears,the
DOEM&Ocontractorshaveexceededtheirsmallbusinesscontractinggoals,ensuringthat
morethan50percentoftheirsubcontracteddollarswenttosmallbusinesses.
? MOUwithDepartmentoftheNavy(DON). TheSBAandDONareworkingcollaboratively
tohelpreachtheAdministration?widegoalsofgreaterenergyefficiencyfromsustainable
energysourcesandreducingenergyconsumption. AsthefirstinitiativeundertheMOU,in
October2010theNavyunveiledacentralizedportalaggregatingcurrentgreen
procurementopportunities. Atlaunch,approximately25percentofthegreenprocurement
opportunitieswereset?asidesforsmallbusiness. Overthelongerterm,theSBAis
committedtocreatingadynamic,entrepreneur?friendly,greenprocurementportalthat
buildsupontheNavy’sworkandisanonlineplatformthatallowsentrepreneurstomore
easilynavigatetheFederalGovernment.
MeetingNationalSecurityNeedsthroughSmallBusiness. Overthepasttwofiscalyears,the
DepartmentofDefense(DOD)
hasawarded$127.9billionand
over2millioncontractactions
tosmallbusinesses,
representingmorethanhalfof
allFederalspendingwithsmall
businesses. Thenation’ssmall
businessesaddvitalitytothe
defenseindustrialbase,area
keydriverofinnovation,and
contributevitallytomeeting
thecontinuingandcomplex
needsoftheDOD.
DODInnovationinPaymentRegulations
Recently,incollaborationwiththeAdministration,theDODchangedits
promptpaymentregulationstoprovideforpayingallsmallbusinessesas
quicklyaspossible.Previously,theDefenseFederalAcquisition
RegulationSupplement(DFARS)extendedthisacceleratedpayment
policyonlytothosebusinessesthatwereconsideredsmalland
disadvantaged.DODchangedtheregulationssothatallsmallbusinesses
couldreceivepaymentsasquicklyas10daysaftersubmittinganinvoice,
ratherthanhavingtowaitfor30days. BecausetheDODpayment
systemsneedtobemodifiedtoaccommodatethischange,accelerated
paymentwillbeimplementedonaphasedbasisaspaymentsystemsare
updated.DODprocuresover$60billionayearofgoodsandservices
fromsmallbusinesses,sothisisasignificantwinforthesmallbusiness
community. Asaresultofthischange,thousandsofsmallbusinesses
acrossthecountrywillbeabletoleveragethisacceleratedcashflowto
meetpayroll,investinnewtechnologies,andcreatejobs.
27
? BetterBuyingPower.AsoutlinedinaSeptember14,2010memorandumfromUnder
SecretaryofDefenseforAcquisition,Technology&LogisticsAshtonCartertotheacquisition
workforce,entitled“BetterBuyingPower:GuidanceforObtainingGreaterEfficiencyand
ProductivityinDefenseSpending,”DODhasdirectedseveralrecentactionstoincrease
contractingopportunitiesforsmallbusinesses. Thefirstistoincreasetheroleofdynamic
smallbusinessindefensemarketplacecompetitionbyemphasizingsmallbusiness
utilizationinsubcontractsthroughweightingfactorsinpastperformanceandinfee
construct. Thesecondistoincreasesmallbusinessparticipationinprovidingservicesand
whenusingMultipleAward/IDIQcontracts.
? OfficeofSmallBusinessProgramsOversight.Themilitarydepartmentsanddefense
agenciesarealreadyimplementingtheoversightprogram,andtheDODOfficeofSmall
BusinessProgramsisdevelopingabestpracticesguideforprocurementofficials. All
acquisitionsforservicesexceeding$1billionarealsobeingreviewedbytheDODOfficeof
SmallBusinessProgramstoensurefullmaximumopportunitiesforsmallbusinesses.
? DefenseLogisticsAgency.TheDefenseLogisticsAgencyisminingitsbuyingdatatoincrease
contractingopportunitiesforService?DisabledVeteran?OwnedSmallBusinesses. The
Agency,throughitsanalysis,hasfoundmorethan4,400NationalStockNumbersofitemsit
buysthatcanbesetasideforsmallbusinessesownedandoperatedbyservice?disabled
veterans. Additionally,theAgencyhasworkedtoexpanditspoolofService?Disabled
Veteran?OwnedSmallBusinessesthatmightbeabletocontractwiththeDepartmentof
Defense. Onepartoftheorganizationidentifiedover300potentialbusinesspartnersby
studyingtheCentralContractorRegistrationandmatchinguppubliclyavailablecodeswith
thesesmallbusinesses. AnotherAgencyofficetelephonedover150potentialService?
DisabledVeteran?OwnedSmallBusinessestodiscusstheircapabilities. Ifthesmall
businesseswereunabletoparticipateinprocurementsunderthecognizanceoftheoffice
makingthecalls,theAgencyprovidedrelevantcontractinformationtootherpartsofthe
DefenseLogisticsAgencywherethebusinessesmightfindopportunities.
? CollaborationwithDepartmentofHomelandSecurity’s(DHS)OfficeofSmalland
DisadvantagedBusinessUtilization(OSDBU).FEMAroutinelyparticipatesinDHS’svendor
outreachsessionsanditsannualindustrydayconference. AspartofFEMA’soverall
mission,smallbusinessesreceiveexpertadvice,supportandcounselfromFEMA’sSmall
BusinessSpecialisttohelpthemunderstandFEMA’smissionanditsacquisitionprocess.
Moreover,FEMAparticipatesinnumeroussmallbusinessconferencesthroughoutthe
nation.
? FEMA’sIndustryLiaisonProgram.FEMA’sIndustryLiaisonProgramarrangesmeetings
betweensmallbusiness“sellers”andpotentialFEMA“buyers”aspartofFEMA’s
frequentlyheldindustrydaysatwhichsmallbusinesseslearnaboutupcoming
acquisitionsandhowtocompeteforthem.
28
? FEMA’SLocalBusinessTransitionTeam(LBTT).FEMAhasestablishedateam?based
approachforconvertinglargecontractstosmalllocalbusinessesinaPresidentially
declareddisasterarea. TheLBTTwaspilotedintheaftermathofHurricanesIkeand
GustavandisnowanestablishedprogramwithinFEMA. TheLBTTimplementsSection
307oftheRobertTStaffordActandPart26oftheFederalAcquisitionRegulation.
? VoluntaryPrivateSectorPreparednessAccreditationandCertificationProgram(PS?
PrepTM).ThisDHSprogram,coordinatedthroughFEMA,seekstoraisethelevelof
preparednessthroughouttheprivatesectorbyprovidingawayforprivatesectorentitiesto
voluntarilytakeimportantpreparednessactions.Theprogramgivesprivatesectorentities
theopportunitytocertifytheirconformancetoDHS?adopteddisasterpreparednessand/or
businesscontinuitystandard. Thesmallbusinessaspectoftheprogramwillestablish
separateclassificationsandmethodsofcertificationforsmallerentities,toprovidemore
affordableandaccessiblealternativesintheprocessofcertification.
? DHSisworkingwithpublicandprivateentitiesthatofferpreparednessprogramsand
activitiestodevelopanationwidenetworkoforganizationsthatwillprovideavarietyof
lowcosteducationaltoolsandtechnicalassistancetosupportsmallbusinessesin
improvingpreparednessandreachingconformancetoanadoptedstandard. FEMA’s
CitizenCorpsworkswithstate,territorial,tribalandlocalCitizenCorpsCouncilsto
promoteinclusionofsmallbusinessesincommunityplanningandpreparednessthrough
partnershipswithcommunitypreparednessorganizationsandprograms.
? USCoastGuard(USCG)Outreach.TheUSCGachievedunprecedentedsuccesswithawards
tosmallanddisadvantagedbusinessinFY2010,exceedingallsocioeconomicgoals. The
USCGoperates48contractingofficeslocatedthroughoutthecountry,includingHawaiiand
Alaska,andithasmaintaineda”grassroots”connectiontothesmallbusinesscommunities
thatsurrounditsoffices. Thisstrategyconsistentlydeliversresults,andFY2010wasthe
bestyearever. Morethan43percentofthedollarscontractedbytheUSCGwereawarded
tosmallbusinesses;morethan15percenttosmalldisadvantagedbusinesses;nearly7.5
percenttoSBA8(a)certifiedbusinesses;morethan6percenttowoman?ownedsmall
businesses;morethan5percenttoHUBZonebusinesses;morethan6percenttoveteran?
ownedsmallbusinesses;andmorethan3.5percenttoservicedisabledveteran?owned
smallbusinesses.
? VendorOutreachSessions.TheUSCGasacomponentofDHS,activelyparticipatesin
monthlyvendoroutreachsessionstoeducatesmallbusinessesoncontractingwiththe
USCG,andtoprovideinformationoncurrentandfutureopportunities. TheUSCG
attends10vendoroutreachsessionsperyearintheWashington,DCarea,andatleast
twoadditionalvenderoutreachsessionsinotherregionsofthecountry. Forexample,
inFY2010,theUSCGattendedavendoroutreachsessioninTexastosupportcompanies
intheGulfregion.InFY2011,theUSCGintendstoattendvenderoutreachsessionsin
Boston,MAandSanDiego,CA.
29
? InformationTechnologyOutreach.WiththeestablishmentoftheUSCGCommand,
Control,Communications,Computer,andInformationTechnology(C4IT)Directorate,
theC4ITChiefofContractingsponsoredanindustrydayinJuly2010tointroducethe
C4ITmissionandneedstothesmallbusinesscommunity. Over300companies
attendedandreceivedinformationontheC4ITstructure,pointsofcontact,and
upcomingopportunities.
? U.S.Citizenship&ImmigrationServices(USCIS)ContractingOffice.USCISContracting
Officeawarded$165milliontosmallbusinessesthroughgovernmentcontractawardsinFY
2010(approximately20percentofeligibledollars). Thisincludesapproximately$81million
tosmalldisadvantagedbusiness. TodateinFY2011USCIShasawarded$78millionand
25%oftotaldollarstosmallbusinessesandareontracktoexceedDHSSmallBusiness
goals.
? ParticipationinSBAMatchmakerEvents.TheUSCISContractingOfficeregularlysends
representativestoparticipateinSBAMatchmakereventsinVTandtheNortheastSBA
region. Themostrecentevent,heldinFebruary2011,wasattendedbytwoContract
Specialistsandover50SmallBusinessvendors.
? One?on?OneMeetings.TheUSCISSmallBusinessSpecialistandContractingOfficeteam
periodicallyscheduleface?to?facemeetingswithSmallBusinessvendorsasrequestedto
assistinmatchingSmallBusinesscapabilitieswithagencyneeds.
? DHSCompetitionandAcquisitionExcellenceAwardforFY2009.InFY2010,theUSCIS
ContractingOfficewashonoredwiththeFY2009DHSCompetitionandAcquisition
ExcellenceAward,“PromotingandAchievingCompetitionbyaTeam,”whichfocusedon
expandingcompetitionexclusivelyinthesmallbusinessareaof8(a)andService?
DisabledVeteran?OwnedSmallBusinesses(SDVOSB).
? U.S.ImmigrationandCustomsEnforcement’s(ICE),DHS,OfficeofAcquisition
Management.ICE’sOfficeofAcquisitionManagementdeliveredmorethan$470millionto
smallbusinessesthroughGovernmentcontractsinFY2010. Overall,37.4percentofall
eligibledollarswereawardedtosmallbusinessfirms. Thisincludedapproximately$177
milliontosmalldisadvantagebusinesses,approximately$63.6millionto8(a)firms,
approximately$88.8milliontoservicedisabledveteransownedsmallbusinesses,
approximately$143.5milliontowomen?ownedsmallbusinesses,andapproximately$14.7
milliontoHUBZonefirms. TheICEsmallbusinessspecialistisdirectlyinvolvedinthe
acquisitionstrategyforanyprocurementexceeding$10millionfortheanticipatedperiodof
performance.
? TheICESmallBusinessSpecialistconductsvendoroutreachsessionswiththesmall
businesscommunityonaweeklybasis. Programandacquisitionstaffmembers
30
participateinthemeetingsandprovidesmallfirmswithvitalinformationconcerningICE
contractopportunities.
? SmallBusinessHUBZoneConference.TheICEOfficeofAcquisitionManagement
recentlyhelditsfirstSmallBusinessHUBZoneConference. Atotalof52industry
representativesattendedtheevent,whichincludedparticipationbytheDHS
DirectorofSmallBusiness,CustomsandBorderProtectionSmallBusinessSpecialist,
andICEContractingProfessionals. Companieswhospecializedinprogram
managementsupportservicesandInformationTechnologysupportserviceswere
invited,asthemajorityofeligibleservicesprocuredbyICEareinthosecategories.
VendorshadanopportunitytomeetwithGovernmenttechnicalpanelsanddiscuss
theircapabilities. TheeventwaswellreceivedandwillassistICEinitseffortsto
increaseopportunitiestoHUBZonecompanies.
? Face?to?FaceSmallBusinessMeetings.TheICESmallBusinessSpecialistperiodically
schedulesface?to?facemeetingsbetweenSmallBusinessvendorsandICEPersonnel
whohaveexpertiseinthevendors'corecompetencies,inordertomatchSmall
Businesscapabilitieswithagencyneeds.
? USSecretService,DHS.TheSecretServiceawardsalargenumberofcontractstothesmall
businesscommunity. TheSecretServiceparticipatesinmonthlyvendoroutreachsessions
withDHSforsmallbusinessesprovidinginformationondoingbusinesswithDHSagencies,
andinformationoncurrentandfuturecontractingopportunitiesattheSecretService.
? CustomsandBorderProtection(CBP),DHS.In2010,CBP’sOfficeofTradeRelations
expandedCBP’stradeoutreachcapabilitiesthroughtheuseofnewmethods,including
webinarsandwebcasting,toreachouttosmallandmedium?sizedbusinesses. Thesefree
webinarsareawayforourstakeholderstogetinformationonkeyCBPissuesimpacting
trade.
? Webcasting.CBPhasalsostartedtouselivewebcastingtoallowmembersofthetrade
communitywithconstrainedbudgetstoparticipateinCBPoutreacheventssuchasthe
CBPTradeSymposium. [email protected].
? DHSNationalProtectionandProgramsDirectorate’sOfficeofInfrastructureProtection’s
ContingencyPlanningandIncidentManagementDivision(CPIMD).Over33percentofall
Readinesscontractsupportisprovidedbysmallbusiness. Smallbusinessesprovidethe
following:
? ContractSupporttoAssistBuildingaFormalInformationManagementTrainingand
ExerciseProgram.ThetargetaudiencefortrainingandexercisesincludesmultipleDHS
components,aswellsasFederal,state,andCriticalInfrastructureandKeyResources
(CIKR)privatesectorpartners. Theestimatedannualthroughputofparticipants
attendingInfrastructureProtectionreadinesseventsiswelloverseveralhundredeach
31
year. InfrastructureProtectionmusttrainandexercisealltheseCIKRpartnerstobetter
understandandexecutetheirincidentmanagementroleswhichincludemaintaining
situationalawareness,assessingandanalyzingCIKRdata,sharingpertinentinformation
internallyandexternally,andrespondingtorequestsforinformationandassistance.
WhileeachInfrastructureProtectionDivisionisresponsibleforexecutionoftrainingto
meettheday?to?dayfunctionalrequirementsofthedivision,theIPReadinessfillsthe
capabilitygapforincidentresponse.
? ContractSupporttoAssistinBuildingaFormalExerciseProgramwithInfrastructure
Protection’sPartnershipOutreachDivision’s(POD)ProgramsandInformationSharing
Office. POD’sProgramsandInformationSharingOfficehasdevelopedaspecific
requirementtodevelopandexerciseStandardOperatingProcedures(SOP)for
establishingsector?specificInformationSharingEnvironments(ISE). AsthefiveSOPsare
completedwithineachsector,theSOPswillbevalidatedthroughadiscussion?based,
tabletopexercise,withanafteractionreport/improvementplanbeingdevelopedto
identifystrengthsandareasforpotentialimprovement.
? DHSInfrastructureSecurityComplianceDivision(ISCD).WithintheChemicalFacilityAnti?
TerrorismStandardsregulatoryframework,ISCDfrequentlyinteractswitharangeof
businessesfromverylargetoquitesmall.ISCDdoesn’thaveaspecificprogramdedicatedto
thisinteraction,butwetailoroureverydayinteractionstoassistanystakeholderthatneeds
helpinachievingcompliance,whichfrequentlyincludestheownersofsmallbusinessesin
theregulatedcommunity.
? Results.TheInspectionsandEnforcementBranchhasutilizedsixdifferentsmall
businessesforover$900,000inprocurements.
? LevelingthePlayingField.InkeepingwithOfficeofProcurementguidance,ISDCsought
toaccesssmallbusinessesinareasonableportionofISCD’snormalprocurement
actions,includingconductingaSourcesSoughtNoticetoseeifsmallbusinessescould
respondtoaprocurementrequestfortechnicalchemicalengineeringsupport.
32
IV.IncreasedU.S.Exportsthroughthe
NationalExportInitiative
TheNationalExportInitiativePromotesExportsbySmallBusinesses.OnMarch11,2010,the
PresidentestablishedtheNationalExportInitiative(NEI)byExecutiveOrdertohelpmeethis
goalofdoublingU.S.exportsover5yearstocreatemillionsofjobs.Smallbusinessesface
particularresourcehurdles,limitingtheabilityofmanytoparticipateinglobaltrade. For
example,smallandmediumenterprises(SMEs)aremorelikelytoneedexternalfinancingto
undertakeanexporttransaction,aparticularlydauntingtaskwiththetighteningofcredit
markets. Inaddition,SMEsfaceinsufficientknowledgeofforeignmarkets,incontrastwith
largerfirms’accesstomarketintelligenceanddirectpresenceintargetedforeignmarkets.
Finally,SMEsfacehigherrealandperceivedrisksofexporting. Theyhavefewerresourcesto
addresstradebarriers,andtheyarelesslikelytohaveadiversifiedforeigncustomerbase.
TheNEIaddressesthesechallengesthroughfivekeypriorities:
? Improvingadvocacyandtradepromotion,
? Increasingaccesstoexportfinancing,
? Reducebarrierstotrade,
? Enforcementoftraderules,and
? Promotionofstrong,sustainable,andbalancedgrowth.
In2010,thefirstyearoftheNEI,exportscontributedsignificantlytotheUnitedStates’overall
economicrecovery.U.S.exportsofgoodsandservicestotaled$1.83trillion,supporting10.3
millionjobs.
ImprovingAdvocacyandTradePromotion.UndertheNationalExportInitiative,theExport
PromotionCabinetandTradePromotionCoordinatingCommitteeagencieshaveincreased
theireffortstohelpU.S.companiesexportaroundtheglobe. Forexample,theAdministration
developedanenhancedclientintakeregistrationformonwww.export.gov,theFederal
government’sexportassistancewebportal. Theformenablesagenciestomoreaccurately
identifynew?to?exportandnew?to?marketU.S.companiesandreferthemtothemost
appropriateFederalresourcesforpersonalizedservice. Onceregistered,companieswillalso
receiveafreethree?monthsubscriptiontotheU.S.CensusBureau’sUSATradeOnlineandbe
positionedtoreceivecustomizedmarketinginformationinthefuture.
In2010,theObamaAdministrationhelpedU.S.smallbusinessesexportforthefirsttimeor
expandintonewoverseasmarketsthroughanumberofprograms:
33
? DepartmentofCommerce(DOC)TradeMissionsandTradeSupport.In2010,the
DepartmentofCommercecoordinated35trademissionsto31countrieswith401
participantsand$2billioninanticipatedexportsuccesses. Smallbusinessesrepresented79
percentofalltrademissionparticipantsfrom2008to2010. TheInternationalTrade
Administration’sU.S.andForeignCommercialServiceledthiseffort,withsupporton
specifictrademissionsfromtheDepartment’sEconomicDevelopmentAdministrationand
MinorityBusinessDevelopmentAgency.
? EconomicDevelopmentAdministrationTradeEvents.EDA,theU.S.andForeign
CommercialService(USFCS)andtheInvestinAmericaprogram(IIA)partneredtopromote
theObamaAdministration’sNEI,aswellasForeignDirectInvestment(FDI)intheU.S.,
throughinternationaltradeandinvestmentevents.Byfacilitatingdelegationsdrawnfrom
regionalinnovationclusters,EDAisaidingU.S.communitiesinpromotingtheirregionsas
attractiveplacestodobusiness,whilealsohelpingU.S.companiesidentifynew
internationalexportpartners.ThefirsttradeeventwastoHannover,GermanyinApril2010
andtookadvantageofHannoverMesse,theworld’slargestindustrialautomation
tradeshow. Asecondevent,atrademission,wastoLyon,France(leveragingthePollutec
tradeshow)andtoBrussels,BelgiumfromNovember28?December4,2010.
– NewTradeEvents.AsthesemissionshavesucceededingeneratingexportandFDIleads
forparticipants,theDepartmentplanstocontinuethetradeeventprogram,withevents
beingplannedin2011forearlyApriltoHannoverMesseagainandtoMontreal,Canada
inMay. TheMontrealeventwillfocusontheaerospaceindustry.
? USDATradeShows.Tradeshowsareone
InterfaceAssociates,Inc.(Irvine,CA)isa
ofthemosteffectivetoolstosuccessfully manufacturerofballoonsusedforheartsurgeries
andtheequipmentusedtomaketheballoons.
linkU.S.smallbusinessestoforeign
Interfaceemploys124people,anditsannual
buyersofagriculturalproducts.U.S.
salesare$20million,60%ofwhichare
pavilionsatinternationaltradeshows
international.InterfacesoughtEx?ImBank’s
createnationalidentityandvisibilityfor
assistancein2010whenbothitsprivate?sector
allU.S.exhibitors.InCY2010,USDA insureranditsforeignreceivableslenderleftthe
exportfinancearena.Thesolutionwasa$2
supportedU.S.Pavilionsat27
millionEx?ImBankguaranteedworkingcapital
internationaltradeshowsin19countries.
lineofcreditthroughSiliconValleyBank.
Asaresult,nearly1,000exhibitors,most
ofwhicharesmallandmediumsizedbusinesses,reported$179millionofon?sitesales,and
over$1billionofestimated12?monthsales.U.S.companiesintroducedover6,000new?to?
marketproducts,andmadecloseto16,000seriousbusinesscontactsatthoseshows.On
average,70percentofthecompaniesparticipatingintheseshowsweresmallcompanies.
? USDAReverseTradeMissions.USDAmadeincreasingthenumberofreversetrademissions
amajorfocusin2010. Thiscampaignbroughtmorethan2,400foreignbuyerstogether
withU.S.smallbusinessesaspartofmorethan240suchtrademissions.
34
? TheExport?ImportBankoftheUnitedStates(Ex?Im).Developedlargelyinconcertwiththe
mostforwardthinkingcorporations,banks,andinsurancecompanies,Ex?Imhasintimate
knowledgeoflegalsystems,accountingstandards,bankprotocols,countryrisk,buyercredit
riskandmarketconditionsinallofthesecountries.Ex?Imbringsthatknowledgetosmall
businesses,manyofwhom,havenootherwayofobtainingit.Ex?Imalsobringstheability
tofinancetheexporteraswellastheexporter’sforeignbuyer. Inordertoexpandthe
accessibilityofthisvalue,Ex?Imhasinitiatedthefollowing:
? BankandBrokerTraining:Ex?Imhasquadrupleditstrainingteamandisexpandingits
bankandbrokertrainingoptionstoincludemonthlytrainingsaroundthecountry,
includingonsitewithbanks. InadditiontotheDC?basedmain3daysession,Ex?Imis
creatingaone?day,two?dayand1and2hoursessions.Theoptionsincludeasystemof
regularwebinars.
Q?LabCorporation(Cleveland,OH)manufactures
testchambersandsurfaces,andprovidestesting
? EstablishmentofVeteransOutreach:In
services.Itsweatheringproductsandservices
2010,Ex?Imcreatedthenewpositionof
areusedbymaterialscientistsandtechniciansin
VeteransOutreachCoordinator.The numerousindustries.Thecompanyhas60
purposeistoreachouttoallveterans
employees.Q?LabhasbeenanEx?ImBank
policyholdersince2000,withtotalshipmentsto
andveteransgroupsandtoconnect
datetotalingover$23million,$3.4millioninthe
exportfinanceopportunitieswiththeir
past7monthsalone.Exportsareconcentratedin
knowledgeofforeigncultures,peoples
Asia;HongKongisthetopmarket.
andbusinesses.
? DirectCallingonMinorityandWomen?OwnedExporters:Inordertoexpedite
communicationwithMinorityandWomen?OwnedBusinesses,Ex?Imhasestablisheda
“smartdata?base”program.Theprogram,whichincludesdatafromTPCCagencies,is
designedtosupportdirectoutreachtoMinorityandWomen?Ownedexportersthrough
systematiccoldcallingbyexperiencedEx?ImBankexportfinanceofficers.While
targetingtheuseofEx?Im’stradecreditinsurance,theofficersarealsoincentivizedto
refertheexporterstotheappropriateDOCandSBAfunctionsasreflectedbythe
exporter’sneeds.
? Website.InordertosimplifyanddirecttheinquiriestotheEx?Im800numberandemail
contacts,Ex?Imreviseditssmallbusinesswebsite.Insteadofdirectingtheinquirytoa
productoradepartment,thesitedirectstheclientthroughaquicktriagetogettothe
informationthatheorshewouldwantinthenormalconductofdevelopingaproductor
serviceforexport.Formoreinformationpleasevisit,
http://www.exim.gov/smallbusiness/.
? TheMarketDevelopmentCooperatorProgram(MDCP).ThisDOCprogramisdesignedto
expandU.S.exportsandsupportsthePresident’sNationalExportInitiative. TheMDCP
providesFederalfinancialandtechnicalassistancetotradeassociations,chambersof
commerce,andotherindustrygroupsthatareparticularlyeffectiveinreachingand
35
assistingSMEs. MDCPpartnershipshelptounderwritethestart?upcostsof
competitiveness?enhancementprojects,whichthesegroupsareoftenreluctantto
undertakewithoutFederalGovernmentsupport. SincetheprogrambeganinFY1993,
MDCPawardwinnershavegeneratedmorethan$3billioninexports. Whenallprojects
fundedbetween1993and2009arecompleted,theprivatesectorwillhaveinvestedmore
than$80.2milliontoincreaseglobalcompetitivenessasaresultoftheU.S.Government’s
$29.3millionexpenditure.
EvergreenBuildingProductsAssociation(EBPA)
? USDATechnicalAssistanceforSpecialty andVanportInternationalInc.
Crops(TASC)Program.Duetoan
EBPAconsistsofbuildingmaterials
extensiveoutreacheffortbyUSDAin
manufacturers,distributors,andservice
2010targetingtheU.S.horticultural
providersrepresentingwoodandnonwood
industry,theTASCprogramallocated
buildingmaterials.Theassociationisbasedin
morethan$7.3million(arecord)inFY
Tacoma,WAbuthasmembersthroughoutthe
2010to26organizationsrepresenting U.S.EBPAfocusesonenergyefficiencyand
earthquakeresistantbuildingtechnologies.
hundredsofsmallbusinesses.TASC
EBPAishelpingU.S.firmsfindcustomersin
workstoopen,retain,andexpand
China’ssecond? andthird?tierChinesecitesby
exportmarketsforU.S.specialtycrops.
leadingtechnicalseminarsandtrademissions.
EBPAorganizesanannualU.S.pavilionata
Chinagreenbuildingshow.Itidentifiespotential
? NationalOutreachCampaign. Inthe
buyersforU.S.products,influencesChina
2010NationalExportInitiativeReportto
buildingcodesandstandards,andprovides
thePresident,theExportPromotion
marketinformationtoU.S.firms.
Cabinetrecommendedanational
outreachcampaigntoinformand
ThroughEBPA’sawardandMDCP’smatchof
$297,000,VanportInternational,Inc.,developed
engagesmallbusinessesinexporting.
ninenewcustomersinChina.Thesenew
In2010and2011,federalagencieshave
customersregularlybuy$500,000to$700,000
embarkedonanumberofcoordinated
inwoodproductseachmonth.TheOregon?
outreacheventstoachievethisgoal: basedcompanyhascreatedormaintainedat
least48jobsduetosalestothesenew
customersinChina.
– USDASMELinkstoCanada.In
September,USDAhostedamajor
eventforU.S.smallandmediumsizedbusinessesinCanada. USDAstaffhighlightedthe
centralrolethatCanadaandsmallbusinessesplayinNEIsuccess,encouraging
expandedsmallbusinessoutreachinthatmarket.InToronto,FASpresentedan
overviewofNEIatthe“CanadaConcepts,”anannualstrategicplanningseminarforU.S.
agriculturaltradegroups,includingStateDepartmentsofAgriculture.
– GlobalAccessforSmallBusiness. OnJanuary13,2011,Ex?ImBanklaunchedSmall
BusinessGlobalAccessinpartnershipwiththeNationalAssociationofManufacturers,
theU.S.ChamberofCommerce,andseveralfinancialinstitutionsEx?Imissponsoring
morethan20GlobalAccessforumsforsmallbusinessesaroundthecountryin2011.
Theybringexporterstogetherwithbanklenders,insurancebrokers,otherTPCC
agenciesandEx?Imexportfinancespecialistsforone?on?onetraininginEx?ImBank
36
financeandinsuranceproducts. MembersofCongressareengagedinco?sponsoring
manyoftheseevents.Over2,000smallbusinessesaretargetedtoattendduringin
2011. Inaddition,tohelpmeettheambitiousgoalsofGlobalAccess,Ex?Imisalso
holdingseveralwebinarsthroughouttheyearandhasdevelopedanewsmallbusiness
portalontheBank'swebsite.
– NewMarkets,NewJobs:NEISmallBusinessNationalTour: TheExportPromotion
Cabinethasembarkedonamulti?cityexportoutreachcampaignorganizedbythe
DepartmentofCommerce,intendedtoreachover3,500smallandmid?sizecompanies
topromotetheNEI. ParticipatingagenciesincludetheDepartmentsofCommerceand
Agriculture,SBA,USTDA,Ex?ImandUSTR.
? ExporTechProgram.Forthepast4years,theDepartmentofCommerce’sManufacturing
ExtensionProgram(MEP),housedwithintheNationalInstituteofStandardsand
Technology,andU.S.ExportAssistanceCenters(USEACs),housedwithintheInternational
TradeAdministration,havehelpedmanufacturersincreasetheirexportswiththeExporTech
program. Theprogramassistsmanufacturersindevelopinganinternationalgrowthplan,
andprovidesexpertswhovetcompanyplansandconnectthecompanieswithFederal,
stateandlocalorganizationsthatcanhelpthemmovequicklybeyondplanningtoactual
exportsales. ExporTechisdeployednationallyasacollaborationbetweenMEP,USEACs
andotherpartners,includingDistrictExportCouncils,StateTradeandEconomic
Developmentagencies,Export?ImportBank,SBAandtheAppalachianRegionalCommission.
HelpingMinority?OwnedFirmsExport.InsupportofthePresident'sNationalExportInitiative
todoubleU.S.exports,MBDAisfocusedonhelpingminority?ownedfirmstoexport. Minority?
ownedfirmsarealreadytwiceaslikelytoexportcomparedtonon?minority?ownedbusinesses.
Helpingoureconomygrowrequiresaccesstoforeignmarketsandimprovingtheabilityand
competitivenessofminority?ownedcompaniestoselltothesemarkets.
? TradeEvents.MBDAhasincreasedpromotionoftradeeventsandinternationaltradefairs
withminoritybusinesses,suchastheCommerceSecretary’sTradeMissiontoIndiaandthe
HannoverMesseInternationalTradeFairinHannover,Germany. Inaddition,MBDAis
partneringwiththeInternationalTradeAdministration(ITA)totrainBusinessDevelopment
Centerstaffoncounselingminoritybusinessenterprisesonexporting,developingreferral
relationshipswithITA’sU.S.ExportAssistanceCenters,andpartneringwiththeOverseas
PrivateInvestmentCorporation(OPIC),Export?ImportBankandtheU.S.Tradeand
DevelopmentAgency(USTDA)toopentheglobalmarketplaceforproductsandservices
fromtheminoritybusinesscommunity.
? ContinuedSupport.MBDAwillcontinuetoencourageitsdatabaseofminority
entrepreneurstoparticipateintheglobalmarketplacebydevelopingaglobalstrategy
37
forbusinessdevelopmentandbyleveragingthenaturaladvantagesofMBEsonthe
internationalstage.
? DOCTaskForceonChina.MBDAhasplayedaleadershiproleintheCommerce
Department’seffortstoengagethePeople’sRepublicofChina. MBDAunderstandsthe
importanceofexportstoAmerica’seconomicrecoveryandjobcreationandtheneedto
connectsmallandmedium?sizedbusinesseswithforeignbuyersinordertoassistthemin
sellingmoreoftheirproductsoverseasandhiringmoreworkersinAmerica.
? CommerceConnect.CommerceConnectisaU.S.DepartmentofCommerceinitiative
launchedbySecretaryofCommerceGaryLockeinOctober2009tomakebusinessesmore
competitiveandcreatejobsbybetterintegratingtheCommerceDepartment’sbusiness
services. MBDAhasaggressivelysupportedthisinitiativebyprovidingseniorstaffmembers
toassistwiththedevelopmentandrolloutofthisinitiativeinthefield.
? NewPilotLocations.MBDAwillcontinuetosupportCommerceConnect’smissionof
assistingbusinessesateverypointoftheirlifecyclebytrainingallMBDABusiness
CenterstobeCommerceConnectserviceproviders.Thisactionwilladd30additional
sitestotheCommerceConnectnetwork.
IncreasingAccesstoExportFinancing.Accesstocreditremainsamajorissueforexporters,
especiallysmallbusinesses. Thetradefinanceagencies–SBA,Ex?ImBank,andUSDA–have
takenstepstoexpandormaximizetheuseoftheirexportcreditprograms.
? IncreasedTradeSupportthroughtheSmallBusinessJobsAct.TheSmallBusinessJobsAct
providesforincreasedSBAsupportforsmallbusinessexports.Selectprovisionsinclude:
– APermanentExportExpressLoanProgram.TheExportExpresspilotloanprogram
becameapermanentprogramwith90percentguaranteesforloansupto$350,000and
75percentforloansupto$500,000.
– PermanentHigherLoanLimitsforExportWorkingCapitalProgram(EWCP)and
InternationalTradeLoans.TheActsignificantlyincreasesthemaximumloansizesfor
EWCPandInternationalTradeLoansto$5million.
– StateTradeandExportPromotion(STEP)GrantsPilot.Thelawauthorized$30million
peryearforthenextthreeyearsincompetitivegrantsforstatestoassistbusiness
ownerstoexpandtheirexporting.
? AWinningTrackRecord.SinceFY2005SBAhassupportedmorethan15,000international
trade?relatedloansworthover$4billionandhastrainedandcounseledinexcessof30,000
smallbusinessesoninternationaltradetopics.
38
? NewServicesfromtheExport?ImportBankoftheUnitedStates.In2010,theEx?ImBank
generated$5.0billioninauthorizationsforsmallbusinessesupfromthe$3.2billionin
2008.Theserepresentover20percentoftotalEx?Imauthorizations.Smallbusiness
approvalshavenumberedover85percentofallauthorizations,risingfromatotalof2328
in2008to3091in2010. In2011theBankisontrackfora20percentincreaseto$6billion.
InadditiontoitstraditionalShort,Medium,andLongTermLoan,GuaranteeandInsurance
productsforexportersandtheirbuyers,Ex?Imhasinitiatedthefollowingprograms:
– SupplyChainFinance.Devisedasanewproductin2010,theSupplyChainFinance
facilityenablessmallbusinesssupplierstolargeexporterstoborrowatreducedrates,
minimizetheirneedforborrowing,maximizecashflow,andmorepreciselymanage
theirrisk.Ex?Imhasalreadyapprovedabout$500millioninthesefacilitiesforsuppliers
totwolargeU.S.exporterswhichwill
makecreditavailabletoover1,000of
Dan’sFish,Inc.(SturgeonBay,WI)hasgrown
theirsmallbusinesssuppliers. tobeWisconsin'slargestexporterofGreat
Lakesfishandcaviar,sellingprimarilyto
SwedenFinland,andEstonia.Foundedin
– ExpressInsurance.Designedin2010
1994,this15?personcompanyutilizesa
specificallyforsmallbusinesses,Express
$500,000Ex?ImBankinsurancepolicy
Insurancereducesthetimeframeandthe
togetherwitha$500,000SBAExportWorking
complexityofinsurancethatsmall Capitalloantofunditsworkingcapitalneeds.
Inpolicyyear2010,theyreportedexportsof
businessesobtaintoprotecttheirexport
$3.3millionascomparedto$2.2millionin
receivablesfromforeignbuyerand
exportsthepreviousyear.
countryrisk. Theapplicationisreducedby
half,theproductissimplifiedandthetargetturnaroundtimeforaquoteis5days.The
productishasalreadybeenfinalizedandisexpectedtogenerateover$250millionin
authorizationsayearoncefullydeployed.
? USDASupportforSMEs.USDAmarketdevelopmentprogramssupporttheeffortsofU.S.
companies,includingsmallbusinesses,tobuildandmaintaincommercialmarketsoverseas
forhundredsoffoodandagriculturalproducts.USDA’spartnersindevelopingtradeatthe
statelevelspecificallyfocusonsupportingsmallandmediumsizedbusinessexportefforts.
InCY2010,throughitspartnershipswithStateDepartmentsofAgriculture,USDAallocated
$29.1millionto802smallU.S.agriculturalcompaniestocarryoutpromotionsoftheir
brandedproductsaroundtheworld. Theseprogramsaresomeoftheinitiativesandtools
designedforU.S.smallbusinessestoincreasetheirpresenceoverseas.
39
– USDATradeFacilitationDesk.InresponsetoconcernsofU.S.agribusinesses,including
smallbusinesses,USDAlaunchedaTradeFacilitationDesk(TFD)tohelpclarifyand
identifythedocumentationrequiredtosuccessfullyexportfoodandagricultural
products.TheTFDservesasan“ombudsman”andkeypointofcontactforexporters,
smallandlarge,seekingassistanceandguidanceonourtradingpartners’import
requirements.TheTFDalsoprovidesassistancewithshipmentsthataredetainedat
portofentry,includingexpeditiousoutreachtoforeigngovernmentsandU.S.
regulatoryagenciestominimizethecostsassociatedwithdetentionoftheshipment.
– USDAExportCreditGuarantee(GSM?102)Program.TheGSM?102Programprovides
creditguaranteestoencouragefinancingofcommercialexportsofU.S.agricultural
products. InCY2010,theGSM?102Programfacilitatedtheexportofapproximately
$3.2billioninagriculturalproducts.Incontinuedeffortstoexpandknowledgeanduse
oftheGSM?102Program,USDAimplementeda“contacttheexporter”procedure
benefittingsmall,new?to?exportfirms. Thisprocedureoffersassistanceinusingthe
programandintroducesfirmstoacontactperson,whocanprovidenecessary
informationforsuccessfulprogramusage.
JointEfforts.USDAalsoincreaseditseffortstoreachsmall,new?to?exportbusinessesin
collaborationwithotherU.S.Governmentexportfinancepartners.USDAstaffparticipatedin
jointseminarsandconferenceswiththeEx?ImBank,theSBA,andtheDOC.Thesejointefforts
haveenhancedinteragencycoordinationonexportfinanceandensuredthatconference
participants(includingexportersandfinancialinstitutions)aremadeawareofthefullgamutof
U.S.Governmentexportfinanceopportunities.
InternationalSmallBusinessCollaboration.TheObamaAdministrationunderstandsthatitis
difficultforsmallbusinessestomakeconnectionsoverseas.Theseprogramshelptoremedy
thatproblem.
• MiddleEastPartnershipInitiative.SBAOfficeofInternationalTradereceiveda2008Middle
EastPartnershipInitiative(MEPI)grantfromtheStateDepartmenttoassistwomenowned
smallbusinessesintheMiddleEast.TheSBAhascurrentlysignedMOU’sforcollaboration
withOman,Bahrain,andTunisia.SBAismovingforwardandhelpingbuildprogramsinthe
threecountriesthatsupportsmallbusinessthroughcounselingandcapitalinitiative
modeledonSBA’ssuccessfulprograms.
• SBAInternationalVisitorsCenter.TheSBAInternationalVisitorsCenterworkscloselywith
foreigndignitariesandbusinessleaderstoprovidekeyinformationontheU.S.economy
andSBA’suniquesupportstructureforsmallbusinesses.InFY2010theofficemetwithover
1,000visitorsfrom115countries,452ofthevisitorsfromChina.Additionally,theofficehas
metwithover900visitorsfrom42countriesthusfarinFY2011(asof4/30).
40
• RussianFederationMOU.SBAsignedanMOUwiththeRussianFederationMinistryof
EconomicDevelopmentinMarch2010forbilateralcooperationonissuesrelatedtoSmall
andMediumEnterprises.
ReduceBarrierstoTrade.UndertheNationalExportInitiative,theAdministrationhasmadea
renewedefforttoreducebarrierstooverseasmarkets,particularlyoverseas. Tariffbarriers,
burdensomecustomsprocedures,discriminatoryorarbitrarystandards,andlackof
transparencyrelatingtorelevantregulationsinforeignmarketspresentparticularchallenges
forourSMEssellingabroad.
? NewAssistantU.S.TradeRepresentativeforSmallBusiness. OnJanuary21,2010,
AmbassadorKirkdesignatedanAssistantU.S.TradeRepresentativeforSmallBusiness,
MarketAccessandIndustrialCompetitiveness. Thisnewattentiontosmallbusinessissues
willenhanceworkonmarketaccessandindustrialcompetitivenessissues.
? PendingFreeTradeAgreements. TheAdministrationhasresolvedoutstandingissueswith
thependingtradeagreementswithKorea,PanamaandColombia,andisworkingin
cooperationwithCongresstosecureapprovaloftheselandmarkagreementsassoonas
possible. TheseagreementswillopentheseimportantmarketstoU.S.exportersby
loweringdutiesonmanyU.S.exports,andaddressingnon?tariffbarriersthatimpactmany
smallbusinesses.
? Trans?PacificPartnership. TheTrans?PacificPartnership(TPP)isakeyinitiativethrough
whichtheAdministrationseekstoadvancetheUnitedStates’multi?facetedtradeand
investmentinterestsintheAsia?Pacificregion,bynegotiatinganambitious,21stregional
tradeagreement. Inadditiontothehigh?standard,marketopeningelementsofcurrent
U.S.tradeagreements,theTPPwillfeaturecross?cuttingissuesnottackledinprevious
tradeagreementsincludingstrengtheningsmallandmedium?sizedenterprisesthrough
greaterparticipationininternationaltrade.
? Commerce’sTradeAgreementsComplianceProgram.SincethestartoftheNEI,the
DepartmentofCommerce’sTradeAgreementsComplianceProgramhasinitiated91
investigationsofforeigntradebarriersaffectingsmallbusiness,andsuccessfullyresolved
53. Examplesincluderemovingtheburdensomeandnon?transparentChinesecertification
requirementsaffectingaYork,Pennsylvania,specialtyrefrigeratorcompany,andensuring
thatChileprovidesproceduresforallU.S.companiestoobtainadvancerulingsoncustoms
matters,increasingpredictabilitywhichisparticularlyusefultoresource?constrainedsmall
businesses.
? ProtectingIntellectualPropertyRights(IPR).TheDOChasundertakennumerousactivities
toassistSMEstoprotectandenforcetheirIPR,bothintheUnitedStatesandabroad.The
DOClaunchedwww.stopfakes.govtoenablebusinessestofilecomplaints,concerns,and
41
questionsaboutIPR?relatedtradeproblems,whichareansweredwithintendaysbyatrade
specialistfromtheOfficeofIntellectualPropertyRights. TheDOCalsoestablishedthe1?
866?999?HALThotlineansweredbyU.S.PatentandTrademarkOffice(PTO)IPRexperts,
whoworkwiththeOfficeofIntellectualPropertyRightstohelpbusinessessecureand
enforcetheirIPRthroughinternationaltreaties.
? RussianFederation/NewStrategicArmsReduction(START)Treaty. NewSTARTTreaty
representsthemostsignificantarmscontrolagreementinnearlytwodecadeswas
passedinabipartisanfashion.Indoingso,theGovernmenthasstrengthenedAmerican
leadershiponnon?proliferationissues,reinforcedourrelationshipwithavitalally,and
madeourcountrysafer.Asapartofthisrelationship“reboot”,SBAsignedanMOUwiththe
RussianFederationonSMEcollaboration
RobustEnforcementofTradeRules.TheObamaAdministrationisfullyawarethateffortsto
enhanceU.S.commercialcompetitivenessandtomaximizethepotentialofU.S.exporterscan
bethwartedbymarketdistortingunfairtradepracticesofforeigngovernmentsandfirms.
EnsuringthatU.S.companiesandworkershavetheopportunitytocompeteonalevelplaying
fieldisthuscriticaltoadvancingbusinesscompetitivenessintheU.S.andabroad,andisakey
componentoftheNEI.
TheAdministrationactivelymonitorsforeigngovernmentcompliancewithtradeagreementsto
whichtheUnitedStatesisapartyandpursuesenforcementactions,usingdisputesettlement
proceduresandapplyingthefullrangeofU.S.tradelawswhennecessary.
? AntidumpingandCountervailingDutyLaws: Attheendof2010,Commerce’sImport
Administration(IA)maintainedapproximately300antidumping(AD)andcountervailing
duty(CVD),coveringover120productsfrom40countries. Roughly36percentofthese
ordersareonproductsfromChina.
? CounselingSMEsaboutRecoursefromUnfairTradeLaws:Smallandmediumsize
enterprises(SMEs)andtheirworkersareacriticaldriverofgrowthandinnovationinthe
U.S.economy. Becausesuchfirmsareoftenunawareoftherangeofreliefthatthe
AD/CVDlawscanprovidetoremedytradedistortingpractices,IA’sPetitionCounseling
andAnalysisUnitregularlyadvisesSMEsabouttherecoursethattheunfairtradelaws
canprovide.InFY2010,IAconductedover100ofthesetypesofcounselingsessions
withU.S.companies,overtwo?thirdsofwhichwerewithSMEs. Inaddition,IAprovided
assistancetonearly100exportersfacingforeigntraderemedyactions. These
companiesincludemajorU.S.manufacturers,small? andmedium?sizedexporters,and
producersofkeyagriculturalexports. Together,thesefirmsemploymorethan1.6
millionAmericansandhavesubstantialoperationsinmorethan35states.
42
MacroeconomicSupportforExpandedExporting.InadditiontoU.S.productivitygrowthand
exportcompetitiveness,themostsignificantdeterminantofU.S.exportgrowthoverthenext
fewyearswillbetheeconomicgrowthofitstradingpartners.Intheshortterm,workingto
sustainastrongglobaleconomicrecoveryislikelytodeliverthebiggestcontributiontoU.S.
exportgrowth.ButthiswillrequireconcertedandcontinuedeffortsbytheUnitedStatesand
itsG?20partnerstoensurethattheglobaleconomyshiftssmoothlytomorediversifiedsources
ofeconomicgrowth.Overthemediumandlongerterm,thecompositionofeconomicgrowth
intheUnitedStates’tradingpartnerswillalsobecrucialtoU.S.exportgrowth.Abroadrangeof
countriesneedtotakepolicyactionsthatreducetheirsurplusesbystimulatingdomestic
demand(especiallyconsumption),therebyincreasingtheirdemandforimports.Strong,
sustainable,andmorebalancedglobalgrowthiscrucialtoU.S.exportgrowth.
43
V.EnhancedDevelopmentandEducation
OpportunitiesforEntrepreneurs
DevelopmentProgramsforEntrepreneurs.IndiscussionswithentrepreneursacrosstheU.S.,
theObamaAdministrationhaslearnedthatmanytimessmallbusinessesandentrepreneurs
needmentorsandpartnershipsinordertocontinuetogrow.Buildingoffthoseconversations,
thePresidenthasimplementedtheseprogramstoconnectentrepreneurswithexperienced
individualsandorganizationssotheycanfurtherdeveloptheirbusinessandcreatejobs.
PaulineLewisofOovooDesigndidn’tfullyrealizehowlife?
changingoneintroductoryclassattheWomen’sBusiness
? SBAnetworkofover14,000
andSmallBusinessDevelopmentCenterinSpringfield,
CounselorsProvide
Virginiacouldbewhenshesignedupfouryearsago.Within
CounselingandTrainingto
weeksoftakingtheclass,shequitherdayjobasasuccessful
U.S.SmallBusinesses.Over
internationalmarketresearcherandheadedeastona
1.5millionentrepreneursand backpackingtripthroughVietnam.DuringhertripPauline
wasinvitedtoobserveawomen’scooperative.“Fromthe
smallbusinessownerswere
momentIsteppedintothesmallhousewhereeightwomen
counseledortrainedinFY
weresittinginanembroiderycircle,IknewthatIwantedto
2010throughSBAsvast
workwiththem.IknewrightthenandtherethatIwould
network.
haveacompanythatincorporatedembroidery,forwomen
bywomen.”TheseedsofwhatshelearnedbackinVirginia
duringherclassattheWomen’sBusinessCenterstartedto
– SCORE,Counselorsto
takerootinVietnamandOovooDesignwasborn.
America’sSmallBusiness.
SCOREhasover11,000
Now,Paulinehassuccessfullyco?designed,marketed,and
volunteersthatbring
soldheruniquehandbagsforsevenseasons.Shesellstoover
practicalexperienceto 500boutiques,galleries,andmuseumstores.Inadditionto
creatinganichemarketofhand?craftedartisanbags,Oovoo
smallbusinessesandto
Designisasociallyresponsiblecompanythatcontinuesto
entrepreneursthinking
workwithwomen’scooperativesinVietnam.Paulineplans
aboutstartinganewsmall
toexpandOovooDesignintootherproductcategoriesand
business.
workwithwomen’scooperativesinCambodiaandLaos.
– SmallBusinessDevelopmentCenters(SBDCs).SBDCsprovidefreeorlow?cost
assistancetosmallbusinessesusingprogramscustomizedtolocalconditions. SBDCs
offercounselinginmarketingandbusinessstrategy,finance,technologytransfer,
Governmentcontracting,management,manufacturing,engineering,sales,accounting,
exporting,andothertopics. SBDCsarefundedbygrantsfromtheSBAandmatching
funds.Therearemorethan900SBDCswithatleastoneineverystateandterritory.
– Women’sBusinessCenters(WBCs).WBCisalargenetworkthroughouttheUnited
States,offeringwomenentrepreneurs,especiallythosethataresociallyoreconomically
disadvantaged,comprehensivetrainingandcounselingtohelpthemstartandgrow
theirownbusiness.InFY2010,fournewWBCswerelaunched,bringingthetotalto110
44
centersnationwidethatoffertrainingtechnicalassistance,andadvicethatwomen
entrepreneursneed.
– SupportforVeterans.SBAprovidesextensivesupportforveteransthrough
collaborationwithVeteransAffairsforcross?trainingonveteranprograms;Allofthisis
throughtheVeteransTaskForce.
? ProjectGATE.ProjectGATE(GrowingAmericaThroughEntrepreneurship)wasinitiatedin
2002toemergingentrepreneurscreate,sustain,and/orexpandtheirexistingsmall
business. Approximately4,200individualsinMaine,Pennsylvania,andMinnesotareceived
GATEProgramservicesinanexperimentalresearchproject(importantly,theoriginal
projectGATEwasnotlimitedtounemploymentinsurancerecipientsoreventothe
unemployed). ProjectGATEwasfoundtoincreasethespeedofbusinessopeningamong
participants,andtoincreasethelongevityoftheirbusinesses,althoughitdidnotincrease
overallearningswhenconsideringearningsfrombothselfemploymentandwageandsalary
work. Theprogram’sevaluationalsoconcludedthatitssalutaryeffectswereparticularly
strongamongworkersreceivingunemploymentinsurancebenefits,andsuggestedthatthe
programcouldbereplicatedonawiderandcost?effectivescale.Howevertheprogram
evaluationalsonotedtailoringtheoutreachtoassessspecificcommunityinterestand
needs,andidentifyingexistingcommunity?basedorganizationswithwhichtopartner,
wouldneedtobeapriority
– ProjectGATEII.ProjectGATEIIbeganinJuly2008,withgrantawardstofourstates–
Alabama($1milliontoserve600participantsstatewide),NorthCarolina($1.6millionto
serve720participantsin9ruralcounties),Virginia($1.9milliontoserve225participants
inNorthernVA),andMinnesota($2milliontoserve500participantsstatewide). Unlike
ProjectGATEdemonstrations(availabletoallapplicantsintheoriginaldemonstration
sites),servicesunderthenewprogramweretargetedtowardsdislocatedworkers. Two
states(ALandNC)wereselectedtotargetservicestoruraldislocatedworkerswhiletwo
other(VAandMN)targeteddislocatedworkers50yearsandolder.
– Minnesota.MinnesotaparticipatedinbothProjectGATEandGATEII. Duringboth
iterations,SmallBusinessDevelopmentCenters(SBDCs)inbothMinneapolisandDuluth
connectedGATEparticipantswithSCOREcounselorstoserveasmentorstowardsthe
endofthetraining. Oneofthelessonslearnedwasthattheseconnectionsweremore
successfulwhenparticipantswereintroducedtoSCOREcounselorsearlierinthe
process. Mentoringismosteffectiveatthepointofbusinesscreationandinitialstart?
up,whenbusinessownershavethegreatestnumberofquestionsaboutbookkeeping,
marketing,andotherissues. EarlierintegrationofSCOREmentoringhasbeenafocusin
MinnesotaduringGATEII.
– Maine. ThelocationsservedundertheoriginalProjectGATEincludedthreeruralareas
inMaine. Attheselocations,trainingwasfrequentlydeliveredusingdistance?education
techniques,includingclassesconductedviawebinarandconferencecall. Theseservices
45
werehighlysoughtafterandwell?regarded,andcouldprovideamodelforproviding
traininginremoteareas,especiallyastheAdministrationpressesforwardwitheffortsto
expandaccesstobroadbandinternetinruralareas.
– Virginia. InVirginia,ProjectGATEIIservicesarebeingofferedaspartofthefullmenuof
resourcesavailabletodislocatedworkers(inthiscase,onlythoseover50). Virginiais
alsohosting“entrepreneurclub”sessionsforGATEIIparticipants. Thesesessionsallow
participantstomeetweeklytodiscusstheirstartups,buildingasenseofcommunityand
camaraderie. Theyhavealsoinvitedlocalbusinessownerstomakepresentationson
topicssuchastaxes,insurance,marketing,etc. Attendancehasbeenexcellenttodate.
– NorthCarolina.NorthCarolinaisusinglocalcommunitycollegesasthemainservice
providertodeliverGATEIIservicestoruraldislocatedworkers. Thelocalworkforce
investmentboard(LWIB)refersdislocatedworkersinterestedinGATEIItothe
communitycollegeforclasses. NorthCarolinahasestablishedanentrepreneurship
trainingnetworkwithinthestatethatleveragesinexpensivecommunitycollegetraining
asthemainfocalpointoftheprogram. Enrollmentinthisprogramhasfarexceeded
expectations.
ProgramsforTraditionallyDisadvantagedGroups.Theseprogramsandinitiativesoffer
traditionallydisadvantagedsocioeconomicgroupsresourcestostartordeveloptheirown
business.
JenniferLynch,ThePortlandSmoothieCompany
? StrengtheningProgramsthatReach
“AssoonasIshoweduptoMCNW(MercyCorps
WomenBusinessOwners. InOctober
Northwest)andenrolledinthefoundations
2010,theSBA,NationalWomen’s
businessclasswith25otherpeopleandbegan
BusinessCouncil,andtheWhiteHouse
talkingaboutmyidea,allofasuddenitbecame
morethanjustanidea.Itbecamesomethingthat
CouncilofWomen&Girlsco?hostedthe
Icouldactuallydo.
WhiteHouseWomen’sEntrepreneur
Conference.Sincethen,SBAhas
IwaslivinginNewYorkandIhadacareerthere
continuedregionaleventsacrossthe
until,justlikeeveryoneelse,Igotlaidoff. I
neededahugechangeinmylife,soIleftallthat
countrytoheardirectlyfromwomen
behindandcameheretoOregon.Ijustdecided
whoarebuildingandgrowing
thatthelittleideaIhadinmyheadforsolong
companiesinmanyindustrysectors. In
wasmaybeanideaIshouldacton. Myhighest
2010,afterreceivingextensivepublic
salesdaywasonareallyhotdayinsummerwhen
comment,SBApublishedafinal
IprovedthatIcanhandleitallonmyown.
comprehensiveruleimplementingthe
Intheshortterm,Idefinitelywanttogrowthe
statutorily?authorizedprogramtocreate
businessandhireemployees.Inthelongterm,my
additionalopportunitiesforwomen?
largergoalisaBedandBreakfastwithafarmto
ownedsmallbusinessestoparticipatein
tableorganicvegetarianrestaurant.”
Federalprocurement.In2009,women?
46
ownedsmallbusinesseswon$16billioninFederalprojectsandthisnewprogramwill
enablegreaternumbersofwomen?ledcompaniestocompeteforpotentiallybillionsof
Federalcontractingdollars.
? DOCReportonWomen?OwnedBusinessesinthe21
st
CenturyfortheWhiteHouse
CouncilonWomenandGirls.Thisreport,issuedOctober2010, documentsthechangesin
women?ownedbusinessesovertime,exploresdisparitiesinthecharacteristicsof
businessesownedbywomenascomparedtothoseownedbymen,anddiscussespotential
reasonsforthesedisparitiesandthedifferentoutcomesthatareassociatedwiththem.The
focusisonproprietorships,partnerships,oranytypeofprivately?heldcorporationwithone
ormoreownersandpubliclyheldcompaniesarenotincluded.Thisreportisavailablefor
downloadatwww.esa.doc.gov/sites/default/files/reports/documents/women?owned?
businesses.pdf.
? GrowthRates.Thenumberofwomen?ownedbusinesseshasgrownovertime.Between
1997and2007,thenumberofwomen?ownedbusinessesgrewby44percent,twiceas
fastasmen?ownedfirms,and,asfoundinWomen?OwnedBusinessesinthe21
st
Century,theyaddedroughly500,000jobswhileotherprivately?heldfirmslostjobs.In
part,thisisbecausewomen?ownedfirmsweremorelikelytobelocatedinindustry
sectorsthatexperiencedemploymentgrowth,suchashealthcareandeducation
services.
? MinorityWomen?OwnedBusinesses.Betweentheyears1997and2002,thenumberof
businessesownedbyminoritywomenincreasedfasterthanthoseownedbynon?
minoritywomen,withminoritywomen?ownedfirmsaccountingformorethanhalfof
theincreaseinwomen?ownedbusinesses.
? Size.Women?ownedbusinessesaretypicallysmallerthanmen?ownedbusinesses.
Althoughwomenown30percentofprivately?heldbusinesses,thesebusinessesaccount
foronly11percentofsalesand13percentofemploymentamongprivately?held
companies.Averagesales/receiptsforwomen?ownedbusinessesareonly25percentof
averagesales/receiptsformen?ownedbusinesses.However,women?ownedbusinesses
areconcentratedinindustrysectorswherefirmsaretypicallysmaller.
? MethodsofFinancing.Therearesubstantialdifferencesinthefinancingutilizedby
women?ownedversusmen?ownedbusinesses.Womenstartwithlesscapitalthanmen
andarelesslikelytotakeonadditionaldebttoexpandtheirbusinesses.Theyaremore
likelythanmentoindicatethattheydonotneedanyfinancingtostarttheirbusiness.It
isdifficulttodistinguishpreferencesfromconstraintsinthesedata.Forinstance,
womenmayencounterlessfavorableloanconditionsthanmen.Theymaybeless
willingtotakeonriskbyseekingoutsidecapital.
47
? PortraitsofWomenBusinessOwners.Thecharacteristicsofself?employedwomenare
similartothoseofself?employedmen.Comparedtothenon?self?employed,self?
employedwomenandmenareolder,morelikelytobemarried,andlesslikelytohave
childrenathome.However,womenwhoareself?employedworkfewerhourson
averageintheirbusinessthanself?employedmen.
? IncreasingSupportforVeteranSmallBusinessOwnership. SBAlaunchedanInteragency
TaskForceonVeteransSmallBusinessdevelopment,includingmembersfromOMB,the
DepartmentofLabor(DOL),GSA,DOD,VAandTreasury,aswellasfourpublicmembers.
SBAalsolaunched,inpartnershipwithSyracuseUniversity,andin?depthsmallbusiness
counselingandtrainingprogramforveteransandtheirfamilies.
? SupporteffortstoincreaseYouthEntrepreneurship. SBAhaslaunchedeffortin
conjunctionwiththeWhiteHousetofocusontheneedsoftheyoungentrepreneursto
createabetterenvironmentforyoungbusinessleaders. Specifically,theSBAisfocusedon
learningtheirneeds,andconnectingthemwithourresources.
– EmpoweringYoungEntrepreneursNYCEvent.InconjunctionwiththeWhiteHouse
OfficeofPublicEngagementandRussellSimmons,SBAwillhostaneventinNewYork
City,tocelebrateandpromotethelaunchofabroadernationwideinitiativefocusedon
youngentrepreneurs. Theproposedagendaprovidesforarobustconversationof
currentresources,additionalneedsofthiscommunity,andanexcitinglaunchofa
broaderinitiative.
? EmergingLeadersProgram(formerlyEmerging200ore200).TheEmergingLeaders
ProgramidentifiesSMEsthatshowahighpotentialforgrowth.Througheightmonthsof
specializedtraining,theEmergingLeadersProgramprovidesSMEswiththenetworkand
resourcesrequiredtobuilda
LexDominey,owneroftheconstructionfirm
sustainablebusinessandpromote
Rocket,Inc,participatedinSBA’s2008Emerging
economicdevelopmentwithin
200TrainingInitiative(e200),whichhecredits
communitiesacrossthecountry.The
with,“Rocket’ssurvivalduringtheworsteconomy
majorityofthesebusinessesaredrawn fortheconstructionindustrysincetheystarted
keepingtrack.”
fromunderservedcommunities.
Approximately680smallbusinessesin
“Thisclasshappenedatatimewhenmyindustry
urbanandNativeAmerican
wascrashing—aseriouscontractionin
communitieshaveparticipatedinthis
constructionvolumeoccurringineverysegment,”
trainingsincetheinitiative’sinceptionin Lexsaid.“E200reallygavemearoadmapto
expansion,understandingandlearning.The
2008.TheresultsoftheEmerging
feedbackfromtheotherCEOsaddedadifferent
Leadersinitiativeshownearly60
outlook.Thefinancialsectionoftheclassgaveme
percenthavehirednewworkers,with
afinancialdashboardthatwillallowustomanage
over500newfull?timeemployees
withconfidenceourexistingbusinessandto
createdin2009alone.Inaddition, understandwhatweneedforexpansion.”
participantsreportedincreased
revenuesoverthepastyear,haveleveragednearly$10millioninnewfinancing,and58
48
percentofparticipatingbusinesseshaveobtainedGovernmentcontracts. The2010
EmergingLeaderstrainingcycleincludedover300smallbusinessesenrolledin22cities
acrossthecountry.Thedataresultsdemonstratingtheimpactandoutcomesofthe2010
graduateswillbeavailablein2011.
? DisabilityEmploymentInitiative.TheDepartmentofLabor’sEmploymentandTraining
AdministrationandOfficeofDisabilityEmploymentPolicyarecollaboratingtoimplement
theDisabilityEmploymentInitiativewithinthepublicworkforcesystemanditspartners.
Grantsareawardedtostatestobuildcapacityforservingpeoplewithdisabilities. Self?
employmentandentrepreneurshiptrainingwasoneofseveralstrategiesonwhichstates
couldfocustheirefforts.
EnhancedRegionalEconomicCompetitiveness.Competitive,high?performingregional
economiesarethebuildingblocksofnationalgrowth.Regionshavecoordinatedandfocused
theirresourcestoaccelerateInnovation,economicdevelopment,businessdevelopmentand
workforcedevelopmentaroundpromisingindustryareas. Thisyear,underleadershipfromthe
WhiteHouse,Federalagenciesareworkingtogethertosupporttheseregionalpartnerships,
including theDOC’sEconomicDevelopmentAdministration(EDA),ManufacturingExtension
Partnershipprogram,andInternationalTradeAdministration,theDepartmentofEducation,
theDOLandSBA. Theseinitiativesweredesignedtodevelopandsupportregionalinnovation
clusterprogramsacrosstheGovernment:
? TheJobsandInnovationAcceleratorChallenge.TheObamaAdministrationhasannounced
theJobsandInnovationAcceleratorChallenge(AcceleratorChallenge),aninitiativeof16
Federalagenciesandbureaustoaccelerateinnovation?fueledjobcreationandeconomic
prosperitythroughpublic?privatepartnerships. TheAcceleratorChallengewilloffer,subject
totheavailabilityoffunds,acombinationof$33millioninfundingfromthreeagenciesand
technicalassistanceresourcesfrom13additionalagenciesandbureaustosupport
customizedsolutionsforapproximately20competitivelyselectedindustryclustersinurban
andruralregionsacrossthenationandacrossallsectors. Acompetitivesolicitationis
expectedtobeannouncedinlateMay2011.Formoreinformationpleasevisit
www.eda.gov/InvestmentsGrants/jobsandinnovationchallenge.
? LeveragingPrivateInvestment.EachAcceleratorChallengeinvestmentwillserveasa
catalystforleveragingprivatecapitalintheregionsfromanarrayofsourcessuchas
foundations,financialinstitutions,corporationsandotherprivatesectorpartners.
Throughitsunprecedentedlinking,aligningandleveragingofFederalresourcesandby
buildingstrategicpublic?privatepartnerships,theAcceleratorChallengewillfoster
broadregionalinnovation,jobcreation,andglobalcompetitiveness.
? Outcomes.Fundsawardedtothewinningapplicantscanbeusedtosupportand
acceleratearangeofmeasurableoutcomes,includinginnovation,commercialization,
businessformationandexpansion,developmentofaskilledworkforce,jobcreation,
49
exports,sustainableeconomicdevelopmentandglobalcompetitivenessin
approximately20industryclustersthatexhibithigh?growthdevelopmentpotential.
Thesesuccessfulclusterswillpromotegrowththatisinclusiveoftheregion’s
population.
? FocusingonPriorities.Thisinitiativerepresentstheimplementationofanumberof
ObamaAdministrationpolicyprioritiesincluding:
? Accelerationofbottom?upinnovationstrategiesencompassingurbanandrural
geographies,asopposedtoimposing“onesizefitsall”solutionsfromWashington.
? ReductionofFederalprogramssilosandpromotionofmorecoordinatedFederal
fundingopportunitiesthatofferamoreefficientsystemforcustomerstoaccess
Federalresources.
? EnergyRegionalInnovationCluster(E?RIC).DOEworkedwithsixagenciestoensureits
$125millionHubinvestmentinGreenBuildingresearchwouldsupporteconomic,business
andworkforcedevelopmentinthewinningregion. Together,theagenciesinvolvedinthis
effortareawardingnearly$130millionover5yearsfortheGreaterPhiladelphiaInnovation
Cluster,whichwasselectedforthisproject.TheSBAprovidedover$150,000toitspartner
SmallBusinessDevelopmentCenter,whichisworkingtoincluderegionalsmallbusinesses
inenergyefficientbuildingprojects.
? SBAInnovativeEconomiesInitiative. SBAprovidednearly$6millioninfundingto10
regionaleconomiesacrossthecountrytohelpdevelopandgrowsmallbusinessesinkey
industrysupplychains.TheseRegionalInnovationClustersareworking infocusareasthat
include,butarenotlimitedto,smartgrid,nucleartechnology,hydrogenfuelcell
technology,agriculturetechnology,flexibleelectronicsandgeospatialtechnology;and
threeofthemfocusparticularlyontechnologieswithdefenseapplications,including
aerospaceandcybersecurity.
? Clusteringfor21
st
CenturyProsperity:ASymposium.HostedbytheNationalAcademies
andtheAssociationofUniversityResearchParks,thissymposiumdiscussedthebest
practicesforpublic?private,cluster?basedeconomicdevelopment. Presentersincluded
GingerLewoftheNationalEconomicCouncilandJohnFernandezoftheEDA.Alinktothe
proceedingsisavailableat:http://sites.nationalacademies.org/PGA/step/PGA_056081.
? Governor’sGuidetoCluster?BasedEconomicDevelopment.TheEDA,theDOL,anda
varietyoffoundationsfundedastudybytheNationalGovernorsAssociationtodevelop
regionalinnovativestrategiestoacceleratetheUSeconomyinthefaceofglobal
competition.Thereportisavailableat:http://www.eda.gov/PDF/NGA_CLUSTERS.pdf.
50
? UnlockingRuralCompetitivenessthroughClusters. InapartnershipwithIndiana
UniversityandPurdueUniversity,theEDAfundedresearchtodevelopamodelthatcanbe
usedbyAmerica'sruralcommunities.IndianaUniversityandPurdueUniversityusedthis
fundingtoassessandmaximizeIndiana’sregionaleconomicadvantages.Theirworkis
availableat:http://www.ibrc.indiana.edu/innovation/.
? EnhancedOutreachthroughWebsite. SBAhasdevelopedanewSBAwebsite,whichserves
asa“one?stop?shop”forallSBAhastoofferforsmallbusinesssupport.Findthenewand
improvedSBAwebsiteat:http://www.sba.gov/.
ImprovingAmerica’sEntrepreneurialInfrastructure.PresidentObamaunderstandsthatthe
keytotheU.S.’shistoricandfutureeconomicsuccessisAmerica’suniquecultureof
entrepreneurship.TheU.S.hasalwaysbeenaplaceofgreatopportunityandofferedgreat
rewardforthosethattookariskandbegantheirownenterprise.ThisiswhyPresidentObama
iscommittedtomakingsuretheU.S.Governmentdoesallitcantomakestartingbusinesses
easierandremovebarrierstogrowth.
? NationalAdvisoryCouncilonInnovationandEntrepreneurship(NACIE). Convenedbythe
DOCtosupportPresidentObama’sinnovationstrategy,NACIEdevelopspolicy
recommendationsthatfosterentrepreneurshipandidentifynewwaysdriveeconomic
growthandcreatejobs. ManagedbyEDA’sOIE,NACIEstrivestoensurethattheUnited
Statesremainsthesourceofparadigmchanginginnovationsandthecompaniesthatdeploy
them.Membersoftheactivecouncilincludesuccessfulentrepreneurs,investors,and
universityandnon?profitleaders.Formoreinformation,pleasevisitNACIE’swebsiteat:
www.eda.gov/nacie.
? ImprovingthePatentProcess. TheU.S.PatentandTradeOffice(USPTO)providesa50
percentfeereduction,amongotherthings,tosmallentityinventorsandhasanarrayof
servicesdesignedforthem.Inaddition,several“accelerationinitiatives”,forpatentsrelated
tosectorslikegreentech,havebenefitedsmallbusinessesbysignificantlyshorteningthe
amountoftimeithastakentoreceiveapatent.
? DepartmentofLaborSupportsStartups.Currently,eightstates—Delaware,Maine,
Maryland,NewJersey,NewYork,Oregon,Pennsylvania,andWashington—havean
unemploymentinsurance(UI)provisionknownasSEA,whichwaivesregularworksearch
requirementsforclaimantswhoareworkingfulltimetoestablishtheirownsmallbusiness,
insteadprovidingthemwithaweeklySEAallowance. Theprogramisavailabletoworkers
whoareeligibleforUIandprofiledasbeinglikelytoexhausttheirUIbenefits.Benefits
equaltothosetheywouldhavereceivedunderUIarepaidoutover26weeksusingfunds
fromthestate’sunemploymenttrustfund.Duringthistime,theindividualsareexempt
fromworksearchandavailabilityrequirements,butarerequiredtoparticipateinactivities
likeentrepreneurialtrainingandbusinesscounseling.
51
EducatingAmericanswith21stCenturySkillsandCreateaWorld?ClassWorkforce. Onlywith
strongeducationalfoundationswillAmericanscreatetheleadingideasofthe21stcenturyand
ensurethattheseideasdiffusethroughouttheAmericanworkforce.Onmanymetrics,
however,includingcollegegraduationrates,Americahasslippedbehindothercountries.The
U.S.mustreformitseducationandworkforcetrainingsystemstoensureAmericansare
qualifiedforthejobsoftomorrow.ThisimperativeunderpinstheObamaAdministration’sfocus
oneducationreformingeneralandinscience,technology,engineering,andmath(STEM)
educationinparticular.ItisalsoimperativetoextendSTEMeducationalandcareer
opportunitiestowomenandminoritygroupsthatareunderrepresentedintheseareas,sothat
allAmericanscanfindqualityjobsandleadourinnovativeeconomyinthedecadesahead.
Whenitcomestoentrepreneurship,empiricaldatasuggeststhelinkisclear:thegreaterthe
amountofschooling,thegreaterthelikelihoodofformingasmallbusiness.Headsof
householdswithsomecollegeare3.3percentmorelikelythanthosewithoutcollegetobeself?
employed,whilethosewithabachelor’sdegreeare4.4percentmorelikelytobeself?
employed,andthosewithsomegraduateleveloftrainingare8.3percentmorelikelytobeself?
employed.
? TheAmericaCreatingOpportunitiestoMeaningfullyPromoteExcellenceinTechnology,
Education,andScience(COMPETES)ReauthorizationActof2010.ThisActauthorizedbasic
research,programsaimedatboostingscience,technology,engineeringandmatheducation
andothermeasuresaimedatpromotingU.S.innovation.Additionally,theActisdesignedto
leverageexistingagencyprogramsandpromoteinter?agencycooperation.
? RacetotheTop.TheAdministrationlaunched“RacetotheTop,”aprogramdesignedto
spursystemicreformandembraceinnovativeapproachestoteachingandlearningin
America’sschools.ImprovementtoU.S.schoolsisvitaltosmallbusinesses,since,asof
2009,lessthan30percentoftheworkforcehadattainedabachelorsdegreeorhigher.
? Post?9/11G.I.Bill.TheObamaAdministrationiscommittedtofundingandimplementing
thePost?9/11G.I.Bill—abilltogiveveteransandtheirfamiliesanopportunitytoearna
collegeeducation.
? SkillsforAmerica’sFutureProgram.Thispublic?privatepartnershipbringstogether
businesses,nonprofits,andschoolstotrainAmericansforthejobsofanewcentury
throughtheSkillsforAmerica’sFutureprogram,aninitiativedesignedtohavebusinesses
andcommunitycollegesworktogethertomatchtheworkintheclassroomwiththeneeds
oftheboardroom.Thisisessential,giventhat47percentoftheworkforce’seducationlevel
isbetweenhighschoolcompletionandsomecollegeorassociate’sdegrees.
? ImprovedAccesstoHigherEducation.TheObamaAdministrationhasinvestedinour
communitycolleges,andreformedourstudentloansystembylimitingpaymenttoupto10
percentofincome,sothatloanpaymentneveroverburdensstudentsearningacollege
education
52
EducatingEntrepreneursandSmallBusinessesaboutSecurityConcerns.Although
entrepreneursarefamiliarwithrisks,theymaynotbefamiliarwiththeseparticulartypesof
risks.Theseprogramsaredesignedtoensurethatentrepreneursandsmallbusinessowners
knowhowtobestprepareandprotecttheircolleaguesandbusinessesintheeventofan
emergency.
? DHSOfficeofInfrastructureProtection’sProtectiveSecurityCoordinationDivision(PSCD).
TosupportInfrastructureProtection’smission,PSCDdeployed94ProtectiveSecurityAdvisors
(PSAs),including87fieldpersonneldeployedto74Districtsin50StatesandoneTerritoryto
serveascriticalinfrastructuresecurityspecialistsinlocalcommunitiesacrossthecountry.
PSAsareliaisonsbetweenFederal,state,local,tribal,andterritorialgovernmentsandthe
privatesector,providingaccesstoDHSinfrastructureresourcessuchasfacilitysecurityand
vulnerabilityassessments,threatinformation,training,andincidentresponsesupport.PSAs
conductdedicatedoutreachtoprivatesectorbusinesses,largeandsmall,topromote
public?privatesectorrelationshipsandinformationsharing.
? DHSBomb?MakingMaterialsAwarenessProgram(BMAP).DHS,incooperationwiththe
FederalBureauofInvestigation,developedBMAPtoincreasepublicandprivatesector
awarenessofhomemadeexplosives(HME),acommonterroristimprovisedexplosivedevice
(IED)tactic.BMAPassistslocallawenforcementagenciesthroughtrainingtoengageawide
spectrumofprivatesectorestablishmentswithintheirjurisdictionsthatmanufacture,
distribute,orsellproductsthatcontainHMEprecursorchemicals.
? BMAPOutreachMaterials.BMAPOutreachMaterialsareprovidedbylawenforcement
tolocalbusinesses,manyofwhomaresmallorindependentlyowned,helpemployees
moreeasilyidentifyrelevantHMEprecursorchemicalsandothercriticalIED
componentsofconcern,suchaselectronics,andrecognizesuspiciouspurchasing
behaviorthatcouldindicatebomb?makingactivity. BMAPsimultaneouslyencourages
strongerrelationshipsbetweenbusinessesandlocallawenforcementandreinforces
thefoundationofeffectivecommunitysafetyandsecurity.
? BMAPProducts.BMAPproductsconsistofreferencematerials,hand?outs,andposters
thatspecificallyaddresspre?cursormaterialsandsuspiciousbehavior,anddetailedand
industry?specificawarenessandindicatorguides.Also,IPmaintainsacatalogoftraining
programstodevelopawarenessofterroristthreatstocriticalinfrastructureamong
State,local,andprivatesectorentitiesandeducateparticipantsonstrategiesfor
detectingandmitigatingthesethreats.Sinceitsinception,IPhasprovidedtrainingto
over32,200state,local,tribal,territorialagenciesandcriticalinfrastructureownersand
operators.
? DHSCybersecurityEducation.ThroughtheInformationTechnologysectortrade
associationsthatareSectorCoordinatingCouncilmembers,DHShashelpedsmall
53
businesseslearnmoreaboutnationalcybersecurityandinfrastructureprotectionefforts
andtoexamineriskfromasectorperspective.
? OfficeofCybersecurityandCommunications’NationalCyberSecurityDivision.The
UnitedStatesComputerEmergencyReadinessTeam(US?CERT)publicwebsite,www.us?
cert.gov,providesanumberofdifferenttypesofinformationthatcanbeveryusefulto
thesmallbusinesscommunity. Forexample:
? TheNational Cyber Alert System (NCAS) provides Technical Cyber SecurityAlerts
(securityissues,vulnerabilities,andexploitsfortechnicalusers), CyberSecurity
Alerts (securityissues,vulnerabilities,andexploitsfornon?technicalusers,Security
Bulletins(weekly summaries ofnew vulnerabilities),andCyber SecurityTips(advice
aboutcommonsecurityissues forthe general public).
? CurrentActivity. This section provides frequentlyupdatedsummaries ofhigh?impact
securityissues such as notificationsofsecurityupdatesbysoftwarevendors.
? SecurityPublications. Thesepublicationsofferboth technicalandnon?technical
papers onsuch topics as securing web browsers, avoidingemail scams,cyberthreats
to mobiledevices, andcomputer forensics.
– SwA Forumsand WorkingGroup Sessions. Fourtimes per year, undertheco?
sponsorshipoforganizationswithinthe DHS,theDepartment ofDefense(DOD), andthe
NationalInstituteofStandardsandTechnology(NIST),theSwAForumandWorking
GroupSessionsprovidea“no?cost”publicvenueforparticipantsto sharetheir
knowledgeandexpertisein softwaresecuritywhileinteractingandnetworking withkey
leaders in industry, government, and academia. Thegatheringsareuniquein focus by
bringingtogether astakeholdercommunityto protect theNation’s key information
technologies,mostofwhich areenabled andcontrolledbysoftware. TheSwAForum
andWorking GroupSessionsaremeans forfulfillingtheOpen Government Initiative,
reflecting thethreeprinciples oftransparency, participation,andcollaboration. The
schedulefor theupcomingSwAevents andpresentations frompastSwA Forums are
located at:https://buildsecurityin.us?cert.gov.
– SwA “Build SecurityIn”Web Siteand SwA CommunityResourcesand Information
Clearinghouse(CRIC). TheSoftware AssuranceProgram prepares ad hocanalyses,
briefings,reports,articles,briefings,web pages,whitepapers andsupporting
documentation. All ofthese resources areavailableforfree onthe“BuildSecurityIn”
website, www.buildsecurityin.us?cert.gov/bsi/home.html,andSwACommunity
Resources andInformationClearinghouse(CRIC)website, www.buildsecurityin.us?
cert.gov/swa/. Manyadvances aredescribed in theSwALandscape,theSwA
Ecosystem, andtheSwAMarket Place. SoftwareSecurityAssurance:AState?of?the?Art
Report (SOAR)represents an outputofcollaborativeefforts oforganizationsand
54
individualsintheSwAForumandworkinggroups.Moreover,SwAdrafts,reviews,and
SwAPocketGuideswhichareavailableforfreeviathissite.
? DHSUSCISVerificationDivision.U.S.CitizenshipandImmigrationServices(USCIS)
VerificationDivisionconductsextensiveoutreachtosmallbusinessesthroughbusiness
associationsandotherentitiestoprovideeducationabouttheuseofE?VerifyandtheForm
I?9. SofarinFY2011,theVerificationDivision’sOutreachBranchhasparticipatedin64
eventsheldin24statesandD.C.todeliverlivepresentations,sitonpanels,andstaff
exhibitsaboutE?Verify. Mostoftheseeventshaveincludedsmallbusinesses.
– Webinars.Inaddition,theVerificationDivisionalsoreachessmallbusinessesthrough
webinars.SofarinFY2011,162webinarshavebeendeliveredtomorethan4,800
participants.Fourofthesewebinarswereconductedinpartnershipwithsmallbusiness
associationsfortheirmembers. Verificationalsopartnerswithassociationsandother
Federalagenciestoreachouttosmallbusinessesthroughtheirchannels—e.g.,
websites,newsletters,andmailinglists.
55
VI.HeightenedInnovationandHigh
GrowthSupport
TheStartupAmericaInitiativetoSupportAmerica’sEntrepreneurs. TheWhiteHouseand
severalFederalagenciesarecoordinatingonaprojecttogiveAmerica’sentrepreneursthe
toolstheyneedtostartmorebusinesses. Startupsandhigh?growthfirmsareasmallpartof
thesmall?businesscommunity,buttheycreatethelion’sshareofnewjobseachyearanddrive
innovationandcompetitiveness. StartupAmericawillstrengthenaccessforentrepreneursand
firmswithhigh?growthpotentialthrougharangeofGovernmentandprivatesectorsupport.
? $1BillionImpactInvestmentFund. SBAwillprovideguaranteesofupto$1billionoverfive
years to those funds that invest growth capital in companies located in underserved
communities.
? MakinganImpact.The$1billionwillincludeinvestingineconomicallydistressedareasas
well as those companies in emerging sectors such as clean energy. SBA will provide a
matchtoprivatecapitalraisedbythesefunds,partneringwithprivateinvestorstotarget
“impact”investments.
? $1 Billion Early?Stage Innovation Fund. Early?stage companies face difficult challenges
accessingcapital,particularlythosewithoutthenecessaryassetsorcashflowfortraditional
bank funding. For high?growth companies, the gap is particularly acute in the so called
“ValleyofDeath,”anindustrytermforfinancingroundsbetween$1millionto$4million.
? LevelingthePlayingField.Overthepast4yearsonly6percentofallventurecapitalhas
beendeployedinthatstage,with70percentofthefinancingsgoingtoonlythreestates,
California, Massachusetts and New York. The Innovation Fund will target this gap and
providea1:1matchtoprivatecapitalraisedbyearlystageseedfunds.
? Built on Success. Both of these funds will be built on SBA’s successful, market?based
SmallBusinessInvestmentCorporation(SBIC)program,whichoperatesonazero?subsidy
basiswithnoaddedcostfortaxpayers.
? SBA/DOEEntrepreneurialMentorshipCorps. SBA,inpartnershipwiththeDOEandthe
AdvancedResearchProjectsAgency?Energy(ARPA?E),isfundingfourprivatebusiness
acceleratorstoimplementanationwideentrepreneurialmentorshipprogramtoassistupto
100smallbusinessesdevelopingcleanenergytechnologies.
? DoingWhatWorks.Thesefourprogramstobefundedwillbeselectedbasedupona
trackrecordofsuccessinprovidingmentorshipassistance.Thefundswillbeusedto
supportatotalof100cleanenergystartupsacrossthecountry.
56
? SeasonedEntrepreneurs.Theseacceleratorswillprovideintensivementorshipfrom
seasonedentrepreneurstoaselectionofthemostpromisingnewcompaniespreviously
fundedbyDOEandARPA?E.
? BuildingonMomentum.Thispilotprogramisthefirststepinthedevelopmentofa
large,distributednetworkofentrepreneurs,mentors,andstartupaccelerators.
? MentorshipIncubatorsforVeterans. TheDepartmentofVeteransAffairs(VA),in
partnershipwithSBAandtheDepartmentofLabor,willestablishtwoofthefirstintegrated
businessacceleratorsfocusedsolelyonhelpingourVeteranslaunchandsustaintheirown
businesses.
? InteractiveWebsite.Thefirstacceleratorprogramoffersaninteractivewebsitethat
providesacomprehensiveroadmapforstartingasmallbusinessandprovidesassistance
inutilizingthediversesetofresourcesavailabletosupportVeteranentrepreneurs.
? ExperiencedEntrepreneurs.Thesecondprogramincludesabusinessincubatorfacility,
locatedinWaukesha,Wisconsin,whereearly?stageVeteran?ownedbusinessesare
mentoredbyexperiencedentrepreneursandtrainedtodeveloptheskillsneededto
buildasuccessfulbusiness.
? ImprovedAbilitytoCommercializeFederallyFundedR&D. TheDepartmentofCommerce,
throughtheEconomicDevelopmentAdministration(EDA),theNationalInstitutefor
StandardsandTechnology(NIST),andU.S.PatentandTrademarkOffice(USPTO)is
implementingseveralinitiativestoimprovethenation’sabilitytocommercializeFederally
fundedresearchanddevelopment.
? UniversityCommitments.TheNationalAdvisoryCouncilonInnovationand
Entrepreneurshiphasprovidedpolicyrecommendationsandspurredgreatereffortsby
universityleaderstoimprovetechnologycommercialization.
? FederalLabEfforts.EDA,incollaborationwiththeNISTandaninteragencyworking
group,hasconductedamajorstudyofFederallabcommercializationpractices,which
willbeusedtoevaluateanddisseminatebestpracticesandimproveresults.
? i6CompetitiveGrants. EDA’sOfficeofInnovationandEntrepreneurship,through
widespreadinteragencypartnerships,expandeditssuccessfuli6competitivegrants
programwithi6Green. i6competitionsaredesignedtoencourageandreward
innovativeideasthatacceleratetechnologycommercialization,newventureformation,
jobcreation,andeconomicgrowthacrosstheUnitedStates.
57
? ReducingBarriersRoundtables.Aseriesofeight“EmpoweringEntrepreneurs:Reducing
Barriers”roundtablesarebeingconducted–Durham,NC,Austin,TX,Boston,MA,Minneapolis,
MN,SantaClara,CA,Pittsburgh,PA,Atlanta,GAandBoulder,CO–tosolicitdirectfeedback
fromhighgrowthentrepreneurstoidentifythemostchallengingregulatoryhurdlestheyface.
? BetterCommunication.AnumberofAdministrationofficialswillparticipateinthese
roundtablesandmeetwithentrepreneurstoheardirectlyfromthemaboutwhatwe
needtofixtobuildamoresupportiveenvironmentforentrepreneurship.Entrepreneurs
whoareunabletoparticipateinoneoftheroundtableswillhaveaccesstoanonline
platformtosubmitideas.Thatcanbefoundat:http://reducingbarriers.ideascale.com/.
? RemovingtheBarriers.Usingtheinputfromtheseevents,theonlinesubmissions,and
Governmentemployees,theAdministrationwillputtogetheralistofthebestideasto
streamlineandsimplifyunnecessarybarrierstoAmerica’sentrepreneursand
innovators.
TheStartupAmericaPartnership.InresponsetothePresident’scalltoactiontopromotehigh?
growthentrepreneurshipacrossthecountry,leadersintheprivatesectoraremaking
commitmentstoeducatethenextgenerationofentrepreneurs,connectmoreentrepreneurs
withhigh?qualitymentors,fostermorecollaborationsbetweenstartupsandlargecompanies,
andaccelerateresearchbreakthroughsfromthelabtothemarketplace.TheStartupAmerica
Partnershipisanindependentallianceoftopentrepreneurs,investors,corporations,
universities,foundations,andotherleaders,joiningtogethertogrowtheentrepreneurial
ecosystemsthatsupportinnovative,high?growthU.S.startups.Long?termcommitmentswill
include:
? $400millioninPrivate?SectorCommitments.PresidentObamaannouncedthisnewwave
ofcommitmentssecuredfrommorethan15companiesandorganizationsatFacebook
headquarters.Thesecommitmentswilldeliverstrategicandsubstantiveresourcesthat
accelerateentrepreneursstartingandscalingcompanies.Thesenewprivate?sector
partnershipsdelivermorethan$400millioninvaluetoU.S.entrepreneurs,buildingupon
over20commitmentsalreadysecuredbytheStartupAmericaPartnershipfromcompanies
likeIntelandIBM.
? Education. TheStartupAmericapartnershipwillofferhigh?impactentrepreneurship
educationprogramstomorehighschools,communitycolleges,anduniversities,reaching
thousandsofadditionalstudents.
? Commercialization. Thepartnershipwillworktoclearthepathtomarketforprimary
researchinmoreuniversities,throughacombinationofregionalecosystemdevelopment,
facultyengagement,andstreamlinedtechnologylicensing.
58
? Acceleration. ThePartnershipaimstogetresults—fast—byreplicatingsuccessful
entrepreneurshipacceleratorprogramsinmorecitiesanduniversities,byrecruitingmore
experiencedmentorstosupportmorestartups.
ToolsforSmallBusinesseswithHigh?GrowthPotential.In2010,agenciesacrosstheFederal
Governmentworkedtogethertoidentifytoolsforhigh?growthandhigh?impactfirmsandmade
recommendationsforincreasingthefocusofinnovationandresearcheffortstosupport
commercializationofnewtechnology. Thisincreaseincommercializationwillgiverisetonew
industriesandthesubsequentneedforaskilledworkforce,thuscreatingjobs.
ConstantContact(Waltham,MA)
? RecordYearforSBIC
Forsmallbusinessownersthatmaylackthetimeorexpertise
Program. Atatimewhen
tomanagetheirownmarketingcampaign,ConstantContact
capitalwasscarceforsmall
offerse?mailmarketingsolutionsthatofferaneasy?to?useand
business,financingfromthe affordablewaytokeepintouchwithclientele. Launchedin
SBICgrowthcapitalprogram
1998,ConstantContacthashelpedalltypesofsmallbusinesses
createprofessional?lookingemailnewslettersandonline
increased23percentinFY
surveys.
2010,providingarecord$1.59
billiontohelpsmall
In2002,SBICHudsonVenturePartnerssawthepotentialof
businessesgrowandcreate ConstantContact’smodelwhenitinvested$2.3millioninthe
jobs. TheFY2010investment
companyandjoineditsboard. WithHudson’sassistance,the
companygrewfromjust27employeestoover300and
volumeisthehighestsingle?
eventuallywentpublicatavalueof$300million.
yearvolumeinthe50?year
historyoftheSBICdebentureprogram,achievedthroughanincreasednumberofnewSBIC
licenses,decreasedlicenseprocessingtimes,andadramaticriseininitialcapitaltonew
funds. Twenty?one(21)newSBIClicenseeswereissuedinFY2010,a130percentincrease
overthepreviousfour?yearaverageof10licenseesperyear.SBIClicenseprocessingtime
improvedtojust5.8monthsinFY2010,anearly60percentdecreasefromanaverageof
14.6monthsin2009.
? SmallBusinessInnovationResearch
(SBIR)2.0.TheSBIRprogramisaset
asidefromtheextramuralresearch
budgetsofelevenparticipating
agencieswithover$100millionin
annualextramuralresearchbudgets.
Theprogramhasprovidedearly
fundingtechnologycompaniessuchas
Qualcomm,Semantech,and
Genentech.SBIRrepresentsthesingle
largestearlystageinvestmenttoolin
theGovernment,providing
approximately$2.5billionannuallyto
FirstRFCorporation&DODSBIR
FirstRFCorporation(Boulder,CO)developedasmall
multi?decadecommunications&electronicwarfare
antennaforhighspeed,highpowerelectronics.This
antennaallowsforasingleinstallationonvehiclesto
covermultiplebandsandfunctions.TheFirstRF
antennacanbeusedinmilitaryapplicationsfor
communication,sensorsandcountermeasures
systems.Onthecommercialside,theantennahas
applicationsinradiocommunicationsandsensors.
ThistechnologyspearheadedthegrowthofFirstRF
highvolumeproductionwhichnowhasoverthree
dozencommercialproductsavailableandover
150,000antennassoldtodate.Thecommercialization
forthistechnologyhasbeenover$200millionin
sales.
smallbusinesses.TheSBAiscurrently
59
SenTech Inc.& DOD SBIR
SenTechInc.,under theleadershipofCEODr.
GervasioPradoand supportedbytheDARPASBIR
Program,developeda small,lowcost, five?inch?
diameter acoustic?seismicsensor array for detecting,
identifyingand trackinggroundvehicles. Itcanbe
placed easilybyhand orair?dropped byhelicopter.
Thechallenge was todevelopadvancedseismic
processing techniquesthatwouldeliminate noise,use
seismicsignatures to identifypassingvehicles, and
alsodetermine vehicle bearing,velocityandrange.
Thisworkwas successful,andthese acoustic?seismic
capabilitieswere extendedandincorporatedinto
variousmilitaryplatforms andapplications. This
project builtuponanearliersuccess, fundedby
Sandia NationalLaboratories,whichdemonstrated
thatunattendedacoustic?seismicgroundsensors
wereeffective for covertsurveillanceofmilitary
vehicles.The solutionsto this challengeincluded
electronics that significantly reduced power
consumption,improvedalgorithmsfordetecting,
identifying, andtrackingmultiplevehiclesin convoys,
andmethods forsummarizinginformationfor
satellitetransmission.TheDARPAfundingextended
theseachievements.
implementingSBIR2.0toreinvigorate
theprograminawaythatmakesthe
SBIRprogrammoreentrepreneur?
friendlyby:
? LeveragingBestPractices.SBIR2.0
coordinatesandraisesawarenessof
bestpracticesamongagenciesto
improvethecommercializationrates
ofSBIRawardees.
? StrengtheningMetrics.SBIR2.0will
strengthenperformance
measurementtoensureeffective
operationoftheprogram.
? Streamlining.ThenewSBIRwillbe
moreuserfriendlyforentrepreneurs
throughnewinitiativestostreamline
andsimplifytheprogram.
? MorePublic?PrivatePartnerships.SBIR2.0willincreasealignmentwiththeprivate
sectorandfosteringcross?agencypartnerships.
? IncreasedFundingforSBIRandSmallBusinessTechnologyTransferPrograms(STTR).
– DepartmentofEnergySBIR. NationalInstitutesofHealthSBIR
WiththehelpofARRAfunds,
NIHcommittedapproximately$690millioninappropriated
DOEincreaseditsfundingof
fundseachyearinFY2009toFY2010toitsSBIRandSTTR
SBIRandSTTRPhaseIand
programs. NIHdevelopedtwoARRAprogramsspecificallyfor
PhaseIIawardsby$91million
smallbusinesses,onetohelpearlystagecompaniescatalyze
to$235millioninFY2010.
researchinnewareasandtheothertohelpmoreadvanced
Thesefundspermitteda
companiesbridgethecommercializationgap.
supplementalsolicitationthat
Additionally,smallbusinessescompetedwellandreceived
emphasizedhighly
awardsfromotherNIHARRAprogramsthatdidnottarget
commercializable
smallbusinesses.Overall,NIHawardedanadditional$317
technologies. Examplesof
millioninARRAfundstosmallbusinessesthroughallthese
cleanenergytechnologies
programsoverFY2009toFY2010.
fundedincludeaninnovative
waveenergyconverter(ResoluteMarineEnergy)andabio?basedintelligentroof
coatingtechnologytoreduceheatingandcoolingloadsofbuildings(United
EnvironmentandEnergy).
60
? AdvancedResearchProjectsAgency?Energy(ARPA?E).AnewDOEagencysetupto
promoteandfundhigh?risk,applied,advancedenergytechnologieswithbreakthrough
potential.Start?upcompaniesandsmallbusinessareoftenbeststructuredtopursuesuch
projects—largecompaniesmayfindthehigh?riskprojectsunattractive,whileuniversities
maybemorefocusedonbasicresearch.Intermsoffundingtodate,$132million,roughly
37percentofARPA?Efunds,hasbeenallocatedtosmallbusinesses.ARPA?Eremains
engagedtohelpsmallbusinessessucceedaftertheawardismadebyofferingresources
designedtohelpcompaniesovercomebothtechnicalandcommercialchallenges.
ARPA?EinAction
Inalittleoveroneyear,sixprojectsthatreceivedatotalof$23.6millioninseedfundingfromtheDepartmentof
Energy’sAdvancedResearchProjectAgency–Energy(ARPA?E)havegeneratedmorethan$100millioninoutside
privatecapitalinvestment.Thesixprojects,whichreceivedbetween$750,000and$9millioneachinARPA?E
funding,focusonimprovingsolarandwindenergytechnologiesandadvancedbatterystorage:
1366Technologies,Lexington,MA.1366Technologiesisasmallstartupdevelopinganewwaytomakesilicon
wafers–akeycomponentofsolarpanels–for80percentlessthanthecurrentcost.Thecompanyreceived$4
millioninvestmentfromARPA?Eandsincethenhassecuredanadditional$33.4millionfrominvestorsand
interestedcustomers.
Envia,Hayward,CA.EnviaSystems,inpartnershipwithArgonneNationalLaboratory,received$4millionfrom
ARPA?EinDecember2009todeveloplithium?ionbatterieswiththehighestenergydensityintheworld.They
recentlyreceivedanadditional$17millioninprivateinvestmentledbyGeneralMotors.
FloDesign,Wilbraham,MA.FloDesignWindTurbinereceived$8.3millionfromARPA?Etoacceleratethe
developmentofanewwindturbineinspiredbyairplanejetengines.ARPA?EfundinghelpedFloDesigndevelop
theirnewtechnology,recruitastellarexecutiveteam,morethandoubleitsstafffrom20to50employees,and
ultimatelyraiseanadditional$27millionfromprivateinvestors.
SunCatalytix,Cambridge,MA. SunCatalytix,astart?upspunoutofMIT,received$4millionfromARPA?Eto
developtheirtechnologyforusingsunlighttosplitwatertoprovideaffordable,highlydistributedenergy.They
havesincereceivedanadditional$9.5millioninventurecapitalfunds.
GeneralCompression,Newton,MA. GeneralCompressionisdevelopingfuel?freecompressedairenergystorage
technologytoenablelow?costgridstorageandtohelpmakeintermittentrenewablepower(suchasfromsolarand
wind)fullydispatchable.ThecompanyreceivedasmallARPA?Egrantof$750,000totestanimprovedversionof
theirtechnologywithsignificantlyhigherefficiencyandlowercost,whichhasbeenbuiltandisnowintesting.That
allowedGeneralCompressiontosecureover$12millioninadditionalfundingfromexistingandnewinvestors.
24M,Cambridge,MA. SoonafterreceivinganARPA?Eawardof$2.55million,scientistsatMITandA123Systems
spunoutthetechnologytoformastart?up,24M,whichreceived$10millioninventurecapitalfunds.Thecompany
isdevelopinganewbatteryarchitecturethatcouldtakebatteriesforelectricvehicleswellbeyondtheperformance
andbelowthecostoflithiumioncells.
? GovernmentReformforCompetivenessandInnovation.Thisisagovernment?widereview
ofrulesandregulationsannouncedbythePresidentearlierthisyearinaPresidential
Memorandum.TheideaisthattheUnitedStatescannotwinthefuturewithagovernment
livinginthepast.Americansalreadydobusinessintheinformationage,butthe
organizationoftheFederalGovernmenthasnotkeptpace.ThatiswhythePresidenthas
61
assignedtheNation’sfirstChiefPerformanceOfficerwhoisresponsiblefortheeffortto
createaplanfortherestructuringandstreamliningoftheexecutivebranchoftheFederal
government. Thefirstfocusofthiseffortwillbeontheexecutivedepartmentsand
agenciesandthefunctionsthatsupportoneofourmostimportantprioritiesincreasing
trade,exports,andouroverallcompetitiveness.ThisreformaimstomaketheFederal
governmentmoreefficient,whichinturn,willstreamlinethewayssmallbusinessesinteract
withgovernment.
? DC?to?VCSummitsonInvestinginHealthcareTechnology.DC?to?VCeventsaretargeted
engagementsbetweenFederalleadershipandventurecapitalists,innovators,and
entrepreneurs,focusingonhowtoaddressemergingopportunitieswhilesimultaneously
improvingourcountry’shealththroughbetter,moreefficientcaredelivery.LedbytheChief
TechnologyOfficeroftheDepartmentofHealthandHumanServices,incooperationwith
theWhiteHouse,theOfficeoftheNationalCoordinatorforHealthInformationTechnology,
andtheCentersforMedicareandMedicaidServices(CMS)InnovationCenter,anexpanded
seriesofworkgroupsanddiscussionroundtableshavebeenlaunchedduring2011thatbuild
uponsignificantprevioussuccesses.
? USDA’sRuralBusinessServices’BiorefineryAssistanceProgram(Section9003). Section
9003isadministeredthroughUSDARuralDevelopmentanddirectlysupportsthe
commercializationofnewtechnology. Theprogramprovidesloanguaranteesofupto$250
milliontoprojectsthatdevelopnewandemergingtechnologiesforadvancedbiofuels.
Ingeneral,theseprojectsincludetechnologythatisbeingadoptedinaviable,commercial?
scaleoperationofanadvancedbiorefinery.Projectsalsoincludetechnologythathasbeen
demonstratedtohavetechnicalandeconomicpotentialforcommercialapplicationinan
advancedbiorefinery.
? DHSandtheUSArmyMedicalResearchandMaterialCommand(USAMRMC).These
agenciesareworkingtofacilitatetransferoftechnologywiththeMarylandTechnology
DevelopmentCorporation(MD?TEDCO). MD?TEDCOwillassistcompanieswithtechnology
developmentprojectsthatmeettheneedsofDHSand/orUSAMRMC. Typicalawardsof
$75,000insupportoftechnologydevelopmentwillbeprovidedtoeligiblecompanies.
? GSAGreenProvingGroundProgram. ThegoalofGSA’sGreenProvingGroundProgramis
tohelpinnovativeAmericanbusinessescompeteandexcel. GSAisharnessingthepotential
ofinnovativebuildingstechnologiesandpracticesthataccelerateenvironmentalefficiency.
Byevaluatingandadoptingnewideasandtechnologies,GSAwilldriveinnovationin
environmentalperformanceacrossFederalGovernmentbuildingsandhelpbuildtheclean
energyeconomyofthefuture.Inoneexample,GSApilottestedtheeffectivenessof
digitallycontrolled,workstation?specificlightingtechnology("SmartLighting")from
Newark,California?basedstart?upLumenergi,ina30,000squarefootspaceinGSA’sSan
FranciscoPhillipBurtonBuilding.TheSmartLightingtechnologydelivereda40percent
lightingenergysavingsandthemarketpotentialdemonstratedbythepilotengaged
ventureinvestmentcompanyGoodEnergiestosupportLumenergi.Inordertocontinue
62
identifyinginnovativetechnologiestotestandadopt,GSAhasissuedanofficialRequestfor
Informationandiscreatingaregistryoftechnologiesandpracticesthatoptimizeenergy
performance,protectandconservewater,enhanceindoorenvironmentalquality,reduce
wasteandenvironmentalimpactofmaterials,reducegreenhousegasemissionsassociated
withbuildingoperations,andpromoteintegrateddesign.
? NationalScienceFoundation(NSF).CreatedbyCongressin1950,theNSFwasdesignedto
promotetheprogressofscience;toadvancethenationalhealth,prosperityandwelfare;
andtosecureNationaldefense.ForoverfiftyyearstheNSFhasdonejustthat,funding
approximately20percentofallFederallysupportedbasicresearchconductedbyAmerica’s
collegesanduniversities.Today,theNSFcontinuestofundinnovativeresearchthatwill
leadtothedevelopmentofbreakthroughtechnologies,whichcreatejobsandgiveAmerica
amorecompetitiveeconomy.
Virent’sGreenGasolinehasreceivedmorethan
? EngineeringResearchCenters $60millionininvestorfinancing. Virentreceived
SBIRfundingfromNSFtodevelopgreengasoline
(ERCs).Aprimarydriverforthe
(notethanol)fromplantsugars.Scalingup,they
establishmentoftheERCprogram
havesincereceivedtensofmillionsfrommajor
bytheNationalScienceFoundation
partnersincludingShell,HondaandCargill.
in1984wastofacilitatethetransfer
Seethepressreleaseat:
ofknowledgeandtechnology www.gigaom.com/cleantech/shell?cargill?fuel?up?
virent?with?46m/announcing$46millionin
developedoutoftheERCs’research
supportofthisWisconsin?basedstartup.
onnext?generationengineered
systemstoU.S.industry.Thisfocus
Moreonthetechnologyisavailableat:
oninnovationwasandstillisatthe
www.nsf.gov/news/news_summ.jsp?cntn_id=112
heartoftheERC–industry 256
partnership.Thatpartnershiphas
yieldedrichdividends.From1985through2010,ERCshaveproduced1,796invention
disclosures,had642patentsawarded,granted2,105patentandsoftwarelicenses,and
spunoff151firmswith(asoflate2010)acumulativetotalof1,464employees.Overthe
past25years,48ERCshavereceivedroughly$1billioninfundingfromtheERC
program.SuccessfulERCsaresupportedbyNSFfor10years;whenthey“graduate”
fromNSFsupporttheyareexpectedtoattainself?sufficiencywithfundsfromindustry,
academia,andothersources.BeginningwiththenewestgenerationofERCsin
particular(Gen?3),in2008,thereisaveryspecificfocusonbuildingandsustaininga
culturethatlinksdiscoverytoinnovation.Thisinnovationculture,calledthe“ERC
innovationecosystem,”includespartnershipswithERCmemberfirmstostrengthenthe
ERCandstreamlinetechnologytransfer.SmallfirmsthatjoinERCsthroughcashandin?
kindcontributionsbenefitfrommembershipinERCsthroughaccesstonewideas,
accesstostudents,andaccesstotheERC'sequipmentforspecialprojects.Aparticular
emphasisisonformingtranslationalresearchpartnershipswithsmallfirmsandSBIR
PhaseIIawardeestoacceleratethecommercializationofhigh?riskERCadvancements;
thisactivityisenabledbycollaborationbetweentheERCprogramandNSF’sIndustrial
InnovationandPartnershipsDivision.Finally,“innovationpartnerships”areformedby
ERCswithstateandlocal?levelorganizationstostimulateentrepreneurshipandjob
63
creationandenabletechnologicalinnovation.Thisemphasisonpartnershipsbetween
ERCsandsmallbusinesseshasbeenextremelyeffective.Between2006and2010,the
percentageofERCmembercompaniesthataresmallcompaniesnearlydoubled,from
23%to44%.
? ERCresearchisdividedintofourbroadtechnologyareas,orclusters.
? Biotechnology and Healthcare.
? Manufacturingand Processing.
? Energy,Sustainability, and Infrastructure.
? Micro/Optoelectronics, Sensing, and Information Technology.
? AcceleratingInnovationResearch(AIR). Toacceleratetheprocessofinnovation,NSFis
undertakingtworelated,newactivities. Thefirstwillencouragethetranslationofthe
numerous,technologically?promising,fundamentaldiscoveriesmadebyNSF
researchers,whiledrawinguponandbuildingtheentrepreneurialspiritofthe
researchersandstudents. Thesecondactivitywillfosterconnectionsbetweenan
existingNSFinnovationresearchalliance(includingconsortiasuchasEngineering
ResearchCenters(ERC),IndustryUniversityCooperativeResearchCenters(I/UCRC),
PartnershipsforInnovation(PFI),
Ajointteamofphysicistsandophthalmologistsfrom
ScienceandTechnologyCenters
theNSF?supportedCenterforUltrafastOptical
(STC),NanoscaleScienceand ScienceattheUniversityofMichiganandthe
EngineeringCenters(NSEC),
university’sKelloggEyeCenterdevelopeda
procedurethatsignificantlyimprovedLASIKsurgery
MaterialsResearchScienceand
procedures.Theimprovementinvolvesusingan
EngineeringCenters(MRSEC)
ultrafastlasertomakeclean,high?precisionsurgical
grantees)andotherinstitutions,
cutsinthehumancornea.Usingtheultrafastlaser
whosecomplementaryfocuswill insteadofamechanicalbladeenablessurgeonsto
spurthedevelopmentof
createaprecisecornealflap.Thefemtosecondlaser
“scalpel”providessurgeonsmuchhigherprecision
discoveriesintoinnovative
andaccuracy.TheMichigancenterwasanNSF
technologiesthroughcollaboration.
ScienceandTechnologyCenter(STC)from1990?
BothcomponentsofAIRaimto
2001;today,it’saninterdisciplinaryresearchcenter
launchdiscoveriesfrombasic intheuniversity’sCollegeofEngineering.The
researchtowards
researchers’workhasalreadybenefitedhundredsof
thousandsofpeoplewhohaveundergonevision
commercializationbypreparing
correctionproceduressince2001.Twomembersof
themtobedevelopedbyasmall
theMichiganresearchteamfoundedtheIntraLase
business. Thetwocomponentsof
Corporationtocommercializethefemtosecondlaser
AIRoperateatdifferentscales: the technology.AdvancedMedicalOptics,Inc.agreedto
TechnologyTranslationPlan
acquireIntraLaseforabout$808millionin2007.
Competitioninvolvessingle
researchersorsmallteams(wholatercouldstarttheirowncompany),whilethe
ResearchAllianceCompetitioninvolvesNSFcentersandmultiplebusinesspartners.
64
? Technology Translation Plan Competition. TechnologyTranslationPlan
Competitionis an opportunityforPrincipalInvestigators fromacademic
institutionsto supportinnovativeideas bytranslatingfundamentalscience
andengineering discoveries into commercial reality. Theeffort is meant to
benefitthesinglefaculty members, however,asmallbusinessmay
collaboratewiththeacademicinstitutionto augment theresearch
capabilitiesofthat institution.
? Research AllianceCompetition. As far as thebenefits to smallbusinesses are
concerned,thegrant fromthis competitionmaybeused to fund
translationalresearch necessaryto bring aparticulartechnologyfromthe
smallbusiness(orbusinesses)to market, orto fundinfrastructure, such as a
rapidprototypefacility,that wouldenabletechnologies tobemorerapidly
commercialized. Withsuch projects,theresearchalliancecannotpartner
withjustonesmallbusiness;it has to bemorethan one.
TheUSDAAgriculturalResearchService(ARS).ARSisUSDA’sprincipalintramuralscientific
researchagency. ARSobtainspatentsandlicensestechnologyresultingfromintramural
researchconductedbyUSDA.BypolicyofARS,IPrelatedtoresearchtoolsisnotprotectedso
astoencouragescientificresearch.Further,patentprotectionissoughtprimarilytofacilitate
technologytransfer(adoptionofresearchoutcomes)byU.S.businessesthatmustcompetein
globalmarkets;typically,somedegreeofexclusivityisneededtoprotectfurtherR&D
investmentsbytheprivatesector. Otherwise,alternativemeansoftechnologytransferare
employedtoreducetransactioncoststhatmustbeabsorbedbytheprivatesectorandpassed
totheconsumer.AnnualReportsonUSDATechnologyTransfertypicallyillustratethatnearly
halfofthe“downstreamoutcomes”relatedtoadoptionofresearchdonotinvolvepatentsor
licenses;readmoreat:http://www.ars.usda.gov/Business/Business.htm.
? ARSOfficeofTechnologyTransfer(ARS?OTT).ARS?OTTisassignedtheresponsibilityfor
protectingintellectualproperty,developingstrategicpartnershipswithoutside
organizations,andperformingotheractivitiesthateffectivelytransferARSresearch
outcomesandtechnologiestothemarketplace.ARS?OTTiscentralizedinpolicyand
approvalprocedures,butmaintainseightfieldofficestoprovideone?on?onecustomer
servicetoARSresearchers.Consistingofabout45personneldedicatedtofacilitating
technologytransfer,OTTisorganizedintofivesections:
? AdministrativeandHeadquarters.Thisbranchoverseesday?to?dayoperations,
coordinatestechnologytransferpolicydevelopment,andexecuteslicensesand
CooperativeResearchandDevelopmentAgreements(CRADAs).
? Patents.ThePatentsectionconsistsofeightin?houseregisteredpatentagents.These
agentsprovidestrategicguidancetoscientistsinprotectingIP,coordinateinvention
reportsandInventionDisclosureReviewCommittees,prepareandprosecutepatent
65
applications,andoverseeanypatentapplicationspreparedbycontractlawfirmsfor
foreignpatentrights.
? Licensing.TheLicensingsectionismadeupoffourspecialists. Specialistsnegotiate
licensesforIPdevelopedbyUSDAscientistsandmonitorlicenseperformance.
? Marketing.TheMarketingsectiondevelops,implements,andcoordinatesmarketing
strategiestofacilitateavailableinformationtosupporttechnologytransfer.
? TechnologyTransferCoordinators(TTCs).ARShassevenTTCsstrategicallystationed
acrosstheUnitedStateswhoareresponsibleforfacilitatingthedevelopmentand
transferofUSDAtechnologies.Theyserveasliaisonswithscientists,ARSmanagers,
universitypartners,andtheprivatesector.TheyalsonegotiateCRADAsandother
technologytransferagreements.
? ARSSuccessDemonstratedbytheNatureofTechnologyTransferOutcomesandMetrics
withSmallBusinesses.TheARSbudgetrepresents1percentofFederalR&Dexpenditures,
yetroutinely,ARSscientistsreceiveatleast15?25percentoftheNationalExcellencein
TechnologyTransferAwardspresentedbytheFederalLaboratoryConsortiumfor
TechnologyTransfer,attestingtothestronglong?standingUSDAcultureofensuringthat
researchoutcomesaredeliveredtoendusersintheagriculturesector. MetricsfromFY
2010showastrongfocusonsmallbusinesses:
? 115of197(58%)activecommercializationlicensesarewithsmallbusinesses;
? 125otherlicensesarewithuniversitiesandinstitutionsofco?inventorsofUSDA
innovations,consolidatingrightsforsubsequentlicensingforcommercialization;
many—if notamajority(exactfiguresnotavailable)—oftheresultingsublicense
agreementsarealsowithsmallbusinessesenterprises;
? 246of323(76%)activelicensesareexclusiveorpartiallyexclusive;
? 125of323activelicenseshaveatleast1productinthemarketplace.
? Inadditiontolicenses,260CRADAsrepresentformalresearchpartnerships,
predominantlywithU.S.smallbusiness(approx.65%),tofindsolutionstohigh
nationalprioritiesforagriculturalindustriesandtofacilitateadoptionofinnovation?
basedresearchoutcomesforprivatesectorcommercialization.CRADAsconveythe
righttonegotiateexclusivelicensesbythepartnerswithoutFederalRegisternotice.
66
? AgriculturalTechnologyInnovationPartnership(ATIP)Program.ARSestablishedtheATIP
programinlate2007tofurtherenhanceopportunitiesandlikelihoodthatresearch
outcomesarisingfromthe2,100scientistsat100U.S.locationswillbeadoptedbythe
privatesectorforcommercializationbybusinessesthatmayexistanywhereinthenation.
TheprogramwasbornfromtherecognitionthatFederalintramuralR&Dagencieswere
limitedbymissionandresourcesinthe
CrispTekisanexampleofthecommercialviability
servicestheycanprovidetoU.S.
ofARS?conceivedfoodinnovations.CrispTek’s
businesses.Consequently,ATIPwas
ChoiceBatterlinebuildsfromARSinnovationsto
establishedtostrategicallyform
offerricebatterthatabsorbslessoilwhenfried
geographicpartnershipswithaselect
andstillmaintainsacrispytexture.Thecompany
few,well?establishedeconomic
wasformedin2007,enteredintoalicensing
agreementwiththeARSTechTransferOfficein
developmententitiesthatexcelin
2008,andenteredintoaCRADAwithARSin2009.
providingthecomplementaryassets
Itsignedanagreementin2008withafacilityin
thatARScannot.
Iowatomanufactureitsproducts,andsolditsfirst
productin2009.ByAugust2010,ChoiceBatterwas
? TheATIPProgramiscomprisedof
beingsoldinover400storesacrosstheUS,
includingfourmajorgrocerystorechains,andYear
TenEconomicDevelopment
5salesareanticipatedtobe$4.7million.
Members.Eightoftheseentities
eachserveasaportalanchoredto
EconsultestimatesthattheARS?Crisptek
anARSArea,anda9thPartner partnershipwouldpotentiallyyield,onanannual
representinganational
basis,asignificanttotalimpactinthecountiesin
whicheconomicactivityistakingplace.Withinthe
organization,theNational
fivecountieswherethereissignificantCrispTek
AssociationofSeedandVenture
economicactivity,totalannualpotentialeconomic
Funds.ATIP“Associates”workin
impactreachesabout$8millioninoutput(i.e.
conjunctionwithaproximal expenditures),includingabout$4millioninvalue?
Partner.Currently,thereisoneATIP
added(i.e.contributiontoGrossDomestic
Product),supportingabout100jobsandabout$4
Associate.PartnersandAssociates
millioninearnings(i.e.compensation).In
becomemembersofATIPthrougha
CrispTek’shomecounty,HowardCountyinthe
PartnershipIntermediary
StateofMaryland,totalannualpotentialeconomic
Agreement(PIA)executedwiththe impactreachesabout$3millioninoutput,
OfficeofTechnologyTransfer;
includingabout$2millioninvalue?added,
supportingabout15jobsandabout$1millionin
sevenoftheseentitiesbecameATIP
earnings.Importantly,theseannualpotential
membersin2009?2010.
economicimpactsoccurwithinawiderangeof
industriesandarenotnarrowlydistributedtojust
? MembersofATIP.Membersinclude oneortwosectors.
theMarylandTechnology
DevelopmentCorporation(TEDCO),MississippiTechnologyAlliance(MTA),Wisconsin
SecurityResearchConsortium(WSRC),NationalAssociationofSeedandVentureFunds
(NASVF),GeorgiaResearchAlliance(GRA),BenFranklinTechnologyDevelopment
Authority(BFTDA),KansasBioscienceAuthority(KBA),TechCommattheCenterfor
Innovation, Arlington,TX,CaliforniaAssociationforLocalEconomicDevelopment
(CALED),andtheCenterforInnovativeFoodTechnologies,Toledo,OH(CIFT;anATIP
AssociatewithWSRC).
67
? Promotionofentrepreneurshipandsmallbusinessdevelopment.ATIPactivitiesare
directedtowardinnovation?basedeconomicdevelopmentwithsmallbusinesses. In
2007,ARSprovidedafewissuedpatentstoanentrepreneurshipclassatHoward
CommunityCollege(MD);twooftheseresultedinexclusivelicensingin2009,following
requisiteFederalRegisterNotice. Currently,mostATIPmembershaveformallinkswith
entrepreneurshipschoolsadministeredbyuniversitiesandcommunitycolleges.In2010,
USDAbeganroutinelyprovidingissuedpatentsandpatentapplicationstotheseschools
throughATIPmembers.
InvestmentsinBroadbandTechnologyforSmallBusinesses.Broadbandtechnologyisa
necessarypieceofAmericaninfrastructure.However,manyareasoftheNationarenotableto
accessthiscriticaltechnology.Theseinvestmentswillhelptoremedythatproblemandallow
ruralandsmallbusinessesbetteraccesstobroadbandinordertomaketheirenterprisesmore
efficient.
? NationalTelecommunicationsandInformationAdministration’s(NTIA)Broadband
TechnologyOpportunitiesProgram(BTOP).NTIAinvestedapproximately$4billionin232
BTOPprojectsbenefittingeverystate,territory,andtheDistrictofColumbia.ThisBTOP
portfolioofprojectsinclude:
? 123InfrastructureProjects.
TrillionCommunications,Inc.anditsseveralsmall
123infrastructureprojects
disadvantagedbusinesspartnersreceiveda$59
totaling$3.5billioninFederal
millionBTOPgranttoconstructover2,200milesof
grantfundstoconstruct
newfibertocomplementanexistingfibernetworkin
broadbandnetworks; an8?countyregionincentralAlabama. Since
Trillion’sfoundingin2001,thisAfrican?American
ownedcompanyhasgrowntoolargetobe
? 65PublicComputerCenter
consideredasmallbusiness,butiscommittedto
Projects.65publiccomputer
ensuringopportunitiesforsmallminoritybusinesses.
center(PCC)projectstotaling
Trillionexpectstocontractwithatleast30small
$201millioninFederalgrant minorityfirmsinthefirstroundofproject
procurementsandmanymoreastheproject
fundstoprovideaccessto
progresses. Inaddition,theproject’sresulting
broadband,computer
infrastructurewillprovideneworimproved
equipment,computertraining,
broadbandservicetonearly3,000businesses,72,000
jobtraining,andeducational
households,and400anchorinstitutions,including
resourcestothepublicand governmentfacilities,schoolsandlibraries,public
safetyentities,twoHistoricallyBlackCollegesand
specificvulnerablepopulations;
Universities,andhealthcarefacilities.
and
? 44SustainableBroadbandAdoptionProjects.44sustainablebroadbandadoption
(SBA)projectstotaling$250.7millioninFederalgrantfundstosupportinnovative
projectsthatpromotebroadbandadoption,especiallyamongvulnerablepopulation
groupswherebroadbandtechnologytraditionallyhasbeenunderutilized.
68
? SmallBusinessesBenefit.AmongBTOP’smanybeneficiaries,smallbusinesseswill
benefitnotonlythroughimprovedbroadbandservicesfromBTOP?fundedprojectsbut
alsoasBTOPawardees. Twenty?sevenBTOPgrantrecipientsaresmallbusinesses,of
whichthreearesociallyandeconomicallydisadvantagedsmallbusinessconcerns
(SDBs).
? USDA’sRuralUtilityServices(RUS).RUSfundsprojectstoincreaseaccesstobroadband
serviceinruralareas. Theseinvestmentspromoteeconomicdevelopment,increaseaccess
tohealthcareandeducationalopportunities,helpcreatejobs,andincreaseruralviability.
TelecommunicationinvestmentsduringFY2010include:
? $2.5BillionInvestedinBroadbandInfrastructure.Byusing$2.5billioninRecoveryAct
fundingauthorizedbyCongress,USDAleveragedtoprovideloansandgrantsof
approximately$3.6billiontoconstruct320broadbandinfrastructureandsatellite
projectsin46statesandoneterritory.
? $690MillionInvestedinCommunicationsTechnology.$690millionininfrastructure
loanstodeliverimprovedcommunicationstechnology,includingbroadbandservice,to
meettheneedsofhomesandbusinessinruralAmerica
69
RuralBusinessesandBroadbandTechnology
TheGreatLakesBayRegionandThumbAreainMichiganwereinneedofbroadbandinfrastructureto
allowthecommunitytocompeteintheglobalmarketplace. Inadditiontolackofbroadbandservices
necessaryforlocalbusinessestooperate,schoolsneededaninternetconnectionfortheirstudentsinthe
classroomandattheirhomes.Seeingthesecriticalneedsmissinginthecommunity,Zimco,afamily?
ownedcorporation,foundedAirAdvantageinJune,2002toofferabroadbandsolution.
Initially,USDARuralDevelopmentmadetwoCommunityConnectGrantstoAirAdvantage:$219,176for
PortHope,Michiganand$214,532forUnionville,Michigan. Thegrantsprovidedfundingforawireless
infrastructureandcommunitycenterwith10computersinbothcommunitieswhereresidentscould
accesstheInternetusinghigh?speedbroadbandservice.
Asthebusinessgrew,AirAdvantageappliedtoUSDARuralDevelopment’sBroadbandLoanProgram. In
2004,theyreceivedalowinterestloanof$1,500,000toreachseveralMichigancommunitiesfollowedby
anotherloaninlate2005for$1,028,000foradditionalBroadbandexpansionintheruralcommunityof
Frankenmuth,Michigan.
In2009,USDAprovidedanadditionalloanfor$908,000,soAirAdvantagecouldupgradeandexpandits
services.
In2010,AirAdvantagewasselectedforaRuralDevelopmentBroadbandInitiativesProgram(BIP)award
undertheAmericanRecoveryandReinvestmentAct;a$32.3millionloananda$31.9milliongrant. These
fundswillbeusedtoextendbroadbandservicestolast?mileconsumersin13countiesthatmakeupan
areaknownastheGreatLakesBayRegionandThumbArea.
OnNovember30,2010,AirAdvantagereporteddeliveringbroadbandservicesto4,943customersinits
3,500squaremileserviceareausing350milesofwirelessnetworkbackbone.The65towerstransmit
informationthatreachesouttohouseholds,sixhospitals,and18schooldistrictswherestudentshaveat
least17distancelearningcoursesatanygiventime. Inaddition,AirAdvantagealsoprovidesserviceto21
hospitalsandmedicalfacilities,7policeservice,4firefacilities,4ambulanceservicesand59government
officelocationsthroughout75municipalities.
Studentscandoresearchandtakedistancelearningcourseswithouthavingtotravelgreatdistances. And,
fiftyormorestudentsarenowtakingadvantageofdualenrollmentclassestotakecollegeandhighschool
levelcoursesatthesametime. Theprogramispossiblebecauseofbroadband.
Businessesarealsorealizingthebenefitsthatbroadbandoffers. Atleast20AirAdvantagecustomersliving
inremoteNorthernMichiganhaveeliminatedlongcommutingtimesandenjoythebenefitsofworking
fromhome3?5daysaweek.
BroadbandthroughouttheregionwillimprovebecauseoftheBIPloanandgrant.TheBIPawardwillfund
additionalbroadbandinfrastructurewhichwillpass279,200households,approximately21,000businesses,and
4,000communityinstitutionsthatincludehospitals,libraries,universities,schoolsandgovernmententities.
Theprojectwillcreateorsaveanestimated142jobsandmayaddmanymoreasusersareconnectedtothe
systemandlocalbusinessesexpand. AirAdvantageisaproudrecipientoftheUSChamberofCommerceBlue
RibbonSmallBusinessAward. Thisawardisgiventocompaniesthathaveshownexcellenceinbusinesshistory
andcommitmenttocustomers,employees,andthecommunity.
? BroadbandInitiative.IncollaborationwiththeFederalCommunicationsCommission,SBA
engagedSCORE(CounselorstoAmerica’sSmallBusiness),Women’sBusinessCentersand
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SmallBusinessDevelopmentCenterstodeveloptrainingcontentformaterialstoassistand
advisesmallbusinessentrepreneursonimprovingbusinessaccessandproductivitythrough
technology. TheseprofessionalcounselorswithintheSBApartnernetworkalsoeducate
companiesonthesmallbusinessopportunitiesarisingfromdevelopingandexpanding
broadbandtechnologies.Smallbusinessopportunitiesexistindiscoveringanddelivering
thenextgenerationofproductsandservices.
? TheSCOREBroadbandConsortium.ThisgroupprovidesInternetande?commerce
mentoring,trainingandservicestoensuresuccessforentrepreneursandsmall
businessowners.ConsortiumfoundersincludedAT&T,BestBuy,Cisco,Constant
Contact,Google,HP,Intuit,Microsoft,SkypeandTimeWarnerCableBusinessClass.
SCOREisdistributingthebroadbandtrainingcurriculumtotheirpartnersinallofthe
110Women’sBusinessCenters.
TheManufacturingExtensionPartnership(MEP).Acceleratingopportunitiestoleverageand
adopttechnologyisthekeytolong?termbusinessgrowthandproductivityforU.S.
manufacturers. MEPservesastheconnectionbetweenmanufacturersandtechnology
opportunitiesandsolutionsforgrowthintheglobalmarketplace.
? LeveragingTechnologytoStimulateBusinessGrowth. Inpartnershipwithotheragencies,
organizations,universitiesandFederallabs,MEPprovidesawiderangeofproduct
developmentandcommercializationassistanceservicestohelpmanufacturersrapidly
movenewproductopportunitiesandinnovationsintoproductionandoutintothemarket.
? NationalInnovationMarketplaceBuildsTechnology?BasedSupplierNetworks.MEPalsois
connectingmanufacturerstotechnologyandbusinessopportunitiesresultinginnew
marketsandnewinnovativeproductsnecessaryforhighgrowth. Inpartnershipwithother
organizations,theMEPprogramcontinuestopilottesttheNationalInnovationMarketplace
(NIM),whichfacilitatesconnectionsbetweentechnologyrequestors(OEMs),andpotential
suppliers,encouragingtechnologytranslationandadoption. Additionally,agroupof
partnersisfacilitatingthebuildingofhigh?growthtechnology?basedsuppliernetworks.
EntrepreneurshipProgramsforVeterans. TheSBAhaspartneredwithSyracuseUniversityon
threenewtrainingprogramsforAmerica’sveteransandtheirfamilies.
? TheEntrepreneurshipBootCampforVeterans(EBV)withDisabilities.EBVisdesignedto
openthedoortobusinessownershipforourveterans. Theprogramdelivers
entrepreneurshiptrainingthroughaone?year"bootcamp"forservice?disabledveteransof
thewarsinIraqandAfghanistanwhowanttostartorgrowsmallbusinesses.Thisyear,the
EBVprogramisexpandingtoatotalofsevenbusinessschoolsatuniversitiesaroundthe
country.
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? WomenVeteransIgnitingtheSpiritofEntrepreneurship(V?WISE).V?WISEwillbeopento
womenveteransbeginninginMay2011.Theprogramconsistsofathreedayoff?site
trainingprogram,onlinetraining,andnetworksupportstructures.Classeswillbeheldinsix
cities,startingwithSanAntonioandBaltimorein2011.
? OperationEndureandGrow.OperationEndureandGrowprovidesonlineandin?person
businesscounseling,training,andmentoringtosmallbusinessownersandentrepreneurs
servingintheNationalGuardandReserve.Thisprogramalsoextendstomembersoftheir
immediatefamilies.
ScienceandTechnologyDirectorate(S&T).TheDHSScienceandTechnology(S&T)Research&
Development(R&D)PartnershipsGroupconductsextensiveoutreacheffortswithmembersof
theHomelandSecurityEnterprise(HSE)basedonthestrategicandprogrammaticneedsofthe
DepartmentandS&T.
? S&T’sSmallBusinessInnovationResearch(SBIR)ProgramOfficewithintheOfficeof
Public?PrivatePartnerships. DHSisoneof11FederalagenciesthatparticipateintheSBIR
Program.Since2004,theDHSSBIRProgramOfficehasadministeredtheFederally
mandatedSBIRProgramtostrengthentheroleofinnovativesmallbusinessconcerns(SBCs)
inFederallyfundedresearchorresearchanddevelopment. Specificprogrampurposesare
to:
? Stimulatetechnologicalinnovation
? UsesmallbusinessestomeetFederalR&Dneeds
? Fosterandencourageparticipationbysociallyandeconomicallydisadvantaged
SBCs,andbySBCsthatare51percentownedandcontrolledbywomen,in
technologicalinnovation
? IncreaseprivatesectorcommercializationofinnovationsderivedfromFederal
R&D,therebyincreasingcompetition,productivityandeconomicgrowth
? S&TSBIRSolicitations.Twosolicitationsarereleasedeachyearforwhichsmallbusinesses
cansubmitproposalsandcompeteforapproximately$15millionperyear. More
informationcanbefoundat:https://sbir2.st.dhs.gov.
? SBIROutreach. TheSBIRProgramOfficeparticipatesintwonationalSBIRconferenceseach
year,approximatelysixregionalandlocalconferencesandworkshops,andmonthlyvendor
outreachsessionstoprovidethesmallbusinesscommunityanopportunitytodiscusstheir
capabilitiesandlearnofpotentialprocurementopportunities.
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? S&T’sOfficeofPublic?PrivatePartnerships.TheCommercializationOfficewithintheOffice
ofPublic?PrivatePartnershipsactivelyreachesouttosmallbusinessesthroughconferences,
workshops,panelparticipation,publicationsandpamphlets,andthe“FullResponse
Package.” TheFullResponsePackagecontainsacompanyoverviewtemplate,whichisa
vehicleinwhichcompaniescandescribetheirproducts,technologies,andservicesandhow
theyaligntotheknowncapabilitygapsofDHSanditsstakeholders.Companiesmayrequest
aFullResponsePackageatSandT_RDPartnerships@dhs.gov.Theseoverviewsareputinto
arepositoryavailabletoProgramManagerswithinS&Ttoidentifyrelevanttechnologies
thatmaybeapplicabletocurrentorfutureprojects.
? CompanyOverviews.Currently54percentofthecompanyoverviewsreceivedand70
percentofthebusinesscontactsmaintainedarefromsmallbusinesses. The
CommercializationOfficealsoprovidesdetailedinformationforsmallbusinesseson
variousopportunitiesforengagementwithinS&T,establishingopencommunications
betweenthepublicandprivatesectors.
? Public?PrivatePartnerships.DHSS&Tofferspublic?privatepartnershipprogramsthat
provideopportunitiestoevaluateandcertifyproductsandservicesrelatedto
stakeholderneeds.Theseclearinghouseprogramscreatemarketdifferentiatorsfor
smallbusinessinnovatorsandcreateotheropportunitiesforstrategicpartnerships
betweenprivatesectorentities.Thisfostersentrepreneurshipamongstsmallbusinesses
andprovidesvehiclesforindependentreviewofproductsandservicesdesignedtomeet
statedrequirementsandidentifiedpotentialavailablemarketsinthehomelandsecurity
enterprise. Moreinformationcanbefoundonlineat:
www.dhs.gov/xabout/structure/gc_1234194479267.shtm.
? OfficeofNationalLabs,TechnologyTransferOffice
? S&TandtheCenterforInnovation(CFI),Arlington,TX,recentlyenteredintoaMOUto
worktowardsfurtheringresearch,productdevelopment,commercialization,and
facilitatingeconomicopportunities.
? OneStopCareerCenters’SmallBusinessServices. One?stopsareadministeredatthelocal
levelwithinparameterssetbyETAandstatute.PreviousDOLreportsonincorporating
entrepreneurshipservicesintothoseprovidedatOne?Stopshavediscussedchangingthe
cultureoftheworkforceinvestmentsystemandencouragingLocalWorkforceInvestment
Boards(LWIBs)tobuildpartnershipsandprovideresourcesnecessarytohelpjob?seekers
becomeentrepreneurs.InNovember2010,ETAissuedTEGL12?10toencouragesupportfor
entrepreneurshipbystatesandLWIBs,toprovideinformationaboutthepublicworkforce
system’sroleinpromotingentrepreneurship,andtodescribeinnovativeentrepreneurship
programsinstatesandatDOL. TheTEGLencouragesthem“toestablishparametersfor
fundingentrepreneurialandself?employmenttraining”. Evidencehassuggestedthatsome
DOLprograms,includingthosethatpromoteentrepreneurship,aremoreeffectivewhen
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One?Stopsareco?locatedwithservicecentersforagencieslikeHHSorSBA. Smallbusiness
assistancecenterscanmoreeffectivelyservicetheunemployedandminoritycommunities
byco?locatingwithDOLone?stops.TofindaOne?StopCareerCenter,visit
http://www.servicelocator.org.
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VII.StrengthenedSmallBusiness
Protection
TheDodd?FrankWallStreetReportandConsumerProtectionAct(Dodd?Frank).Dodd?Frank
signedinJuly2010,providedseveralkeyreformstoaidthefinancialsystemandhelpsupport
U.S.smallbusinesses.
? ProvidingtheStabilityandFairnessSmallBusinessOwnersNeed.Thislegislationprovides
thestabilityandfairnesssmallbusinessownersneedinU.S.financialmarkets,ensuring
themaccesstocreditandopportunitiestogrowtheirbusinessandcreatejobs.Itprovides
clearrulesoftheroadforfinancialproductsandservicesandconsolidatesthenow
fragmentedFederalregulatoryauthoritiesrelatedtoconsumerfinancialprotectionintoone
agencytoensurefair,transparentandconsistentenforcementofconsumerfinanciallaws
andregulations. Lastly,itclosestheloopholesthatwereexploitedbycompetitorsof
communitybanks.Communitybanksaresomeofthestrongestpartnersofsmallbusinesses
andprovidekeypointsofaccessforcapitalneededtogrowsmallbusinessandcreatejobs.
? CreationoftheConsumerFinancialProtectionBureau(CFPB).TheActcreatesthe
CFPB,whichisdedicatedtoprotectingconsumerrights.AnindependentBureauof
ConsumerFinancialProtectionwillsetandenforceclear,consistentrulesforthe
financialmarketplace.Asingleconsumerbureauwillsetclearrulesoftheroadand
ensurethatfinancialfirmsareheldtohighstandards.(Smallbusinessesoutsidethe
financialsectorwillnotberegulatedbythenewconsumerprotectionagency).
? DebitCardReform.Newrulescappingdebitcard“swipe”feesattheactualcostof
processingthetransactionwillsavesmallbusinessesmillionsofdollarsannually.
CreditCardAccountability,Responsibility,andDisclosure(CARD)Act.ThePresidentsigned
theCARDActinMay2009toprotectAmericans,includingU.S.smallbusinesses,fromunfair
anddeceptivecreditcardpractices.
TheAffordableCareAct.TheAffordableCareAct,signedinMarch2010,providesmore
affordableandmoreaccessiblehealthcarecoverageforfamiliesandsmallbusinesses.
? HelpingProvideAccessandReduceCostsforSmallBusinessHealthcare. TheAffordable
CareActaddressedoneofthetopconcernsofsmallbusiness:accesstoaffordable,quality
healthcare.
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? TaxCredits.Smallbusinessesarealreadybenefittingfromtargetedtaxcreditsthat
madeinsuranceaffordableforthem.Morethan4millionsmallbusinessesmayqualify
fortaxcreditstohelpthemaffordinsurance.
? Forthesmallestbusinesses,with10orfeweremployeesandaverageannual
wageslessthan$25,000,taxcreditscover35percentofemployercontributions
forpremiums. Thetaxcreditsareonaslidingscale,phasingoutatafirmsizeof
25employeesandaveragewagesof$50,000.
? IncreasedAccountabilityforRateHikes.Insurancecompaniesfrequentlychargehigher
premiumstosmallbusinessesandtheyhaveincreasedthesepremiumsathighratesin
recentyears. InSeptember,manystatesreceived$1milliongrantstostrengthentheir
premiumratereviewprocess.Somestateshavealreadyusedthesefundstomore
widelypublicizerateincreasesanddemandmoreactuarialjustificationforthem.
Beginningthisyear,statesandtheDepartmentofHealthandHumanServiceswillbe
publiclypostinginformationrelatingtomanyproposedrateincreasesthatare10
percentorhigher.
? BetterInformation.Rightnowsmallbusinessescancomparelocalinsurancecoverage
informationonwww.healthcare.gov.Smallbusinessownerscanlogontoseewhat
plansareavailableintheirarea.Userscandeterminetheireligibilityfordifferentprivate
andpubliccoverageoptions.
? InsuranceExchanges.Startingin2014,smallbusinessescanshopforinsuranceinan
exchangethatwillgivethemsimilarpurchasingpoweraslargebusinesses. Exchanges
willoffermorechoicesofhigh?qualitycoverageandlowerprices.Smallbusinesseswill
benefitfrominsurancewithloweradministrativecostscomparedtothechoices
availableinthesmallbusinessmarkettodaybecausetheywillbeabletopooltogether.
Thenon?partisanCongressionalBudgetOfficehasfoundthatexchangeswilllowerthe
costofhealthinsurancebyasmuchas4percent.
ImprovingRegulationsforSmallBusinesses.PresidentObamaiscommittedtolisteningtoand
workingwithsmallbusinessinordertobetterunderstandwheretheAdministrationcan
improveregulations.InadditiontotheStartupAmericaInitiative:
? RegulatoryFlexibilityforSmallBusinesses.TheOfficeofAdvocacy(Advocacy),atSBAis
responsibleforoverseeingFederalagencycompliancewiththeRegulatoryFlexibilityAct
(RFA).Aspartofthisoversight,Advocacyworkscloselywithregulatoryagenciestoensure
theyconsidertheimpactoftheirregulationsonsmallbusinessbeforearulebecomesfinal.
Aspartofthisprocess,Advocacyisabletohelptheagencycraftregulatoryalternativesthat
accomplishtheagency’sobjectivewhilereducingtheeconomicburdenonsmallbusiness.
InFY2010,Advocacy’sinvolvementwithagencyrulemakinghelpedsavesmallbusinesses
nearly$15billioninforegoneregulatorycosts.FormoreinformationonAdvocacy’swork
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andcostsavingsfigures,pleasevisit:
http://www.sba.gov/sites/default/files/files/10regflx.pdf.
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VIII.Conclusion
TheUnitedStatesofAmericawasbuiltthroughhardworkandinnovation.Buteachgreatidea,
beforeitgrowsandbecomesreal,needstohaveahome.OurNation’ssmallbusinessesare
thathome.Fromthe“momandpop”storesthatjustkeepscalingup,tothetwofriendsina
garagethatinventthenextbigthing,theUnitedStateshasbeen—andundertheObama
Administrationwillcontinuetobe—thepremierenvironmentforsmallbusinessesofallsectors
andsizestostartup,grow,andsucceed.
Overthepasttwoyears,thePresidentandagenciesacrosstheAdministrationhaveworkedto
implementpoliciesandprogramstohelpsmallbusinessestostartandgrowandhave
encouragedpublic?privatepartnershipstosupportworkforcere?trainingandentrepreneurship.
Thesehaveincludedprovidingtaxcutstohelpsmallbusinessesgrowandcreatejobs,
expandingaccesstocapitalforsmallfirms,expandingentrepreneurshipeducationand
mentorshipprograms,strengtheningandeducatingourworkforce,identifyingandremoving
unnecessaryexportbarrierstohelpsmallbusinessesexpandoverseas,andinvestingin
promisingnewcleanenergytechnologiestosupporthigh?growthstart?upcompanies.
Overthenexttwoyears,thePresidentandhisAdministrationwilldoevenmoretoenactthe
legislationandbuildthebestpoliciespossibletohelpourinnovators,entrepreneurs,andsmall
businessownersrevitalizetheeconomy.Todothis,theAdministrationwillcometoyou—the
Americansalloverthecountrythatarebuildingthebusinessestohousethenextgeneration’s
greatideas. TheAdministrationunderstandsthatcomingtogetherisjustthebeginningbut
thatworkingtogetherensuressuccess.
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