Letter to Deficit Committee
As you know, SBDCs
were created as a temporary measure in the recessionary mid 80s to assist in
starting businesses for the significant number of Americans who would not find employment.
For instance, in the 1994 report, 61% of
SBDC clients were not startups, but established businesses, with about 82% having sales of
up to $1M, 14.5% having sales of $lM-$5M and 3.5% having sales greater than $5M. The
percentage of non-startups serviced by SBDCs has increased in subsequent reports.
Further, SBDCs were purposefully chartered to not operate in areas where there were SCORE chapters or private sector small business consultants. However, SBDCs derive their greatest statistical return from just such geographic areas.
Further, SBDC funding was to be matched, dollar for dollar, by a
host establishment, typically a college or university. However, and again by lack of
oversight, the host establishments provide only office space, making the hosting of an
SBDC a lucrative profit center for the host.
I served on one of the White House Conference for Small Business committees that helped write the guidelines for the SBDCs.
I started my business with a SCORE counselor and a direct SBA loan in the late 70s.
I founded a small business development group in the early 80s as a not for profit cooperative association, again, with no outside funding. More than 44,000 people have attended the various events hosted by this co-op.
I can provide you with whatever level of documentation you require. However, Im very confident you have superior resources to accomplish same giving you a much higher level of trust in the difficult decisions to be made.
If you wish, you may learn more about me here: http://www.servicesca.org/C-Dean-Kring-bio.htm.
The business incubator here: http://www.servicesca.org/entrepreneurial-development-center.htm
The Co-Op here: http://www.servicesca.org/notact.htm
Please eliminate SBDC funding. It is pork. It competes with the SCORE chapters and the numerous attorneys, CPAs and small business consultants, advisors and mentors in your state.
C. Dean Kring
Director of Research
Chris Van Hollen (Maryland) House Democrat
Xavier Becerra (California) House Democrat
Fred Upton (Michigan) House Republican
Dave Camp (Michigan) House Republican
Jeb Hensarling (Texas) House Republican Co-Chair
Jon Kyl (Arizona) Senate Republican
Rob Portman (Ohio) Senate Republican
Pat Toomey (Pennsylvania) Senate Republican
Max Baucus (Montana) Senate Democrat
John Kerry (Massachusetts) Senate Democrat
Patty Murray (Washington) Senate Democrat Co-Chair
Editorial by C. Dean Kring, who bears sole
responsibility for content.
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