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State cut to Small Business Development Center funding draws concern from local advisers
Summary
The governor's budget reduces state support for the statewide SBDC program, which SBDC leaders and some lawmakers warned would shrink advising capacity and risk losing business assistance at a time of high demand.
Lawmakers were told by the Small Business Development Center's associate director and agency officials that a proposed reduction in state support for the SBDC would sharply reduce advising capacity at a time when demand is rising.
"We would lose three full-time business advisers — about 30% of our advising capacity," Jason Cannon, associate state director for the SBDC, told the committee. Cannon said the SBDC received nearly $800,000 in federal funds this year that require a state match and that the agency relies on state dollars to match the federal grant. "Every dollar from the state goes right into paying for business advisers," he said.
Cannon said the program reaches roughly 2,000 businesses annually and estimated the SBDC's current economic impact at about $245 million in jobs saved, jobs created and capital infusion. He said the center's advisers provide one-on-one services for start-ups and existing businesses, including planning, marketing and cybersecurity guidance, and that demand for those services has risen "over 20% in five years." Cannon told lawmakers that individual counseling is free to clients and that the center uses certified, experienced advisers.
Several lawmakers said they had received significant outreach from business owners urging restoration of funding. Representative Ebel said the SBDC's reported return on investment made the reduction seem likely to "cut into the bone." Some lawmakers asked for more detailed federal funding lists and whether SBDC maintains a waitlist for services; Cannon said he was not aware of a waitlist but offered to return with further details.
Ending: Committee staff and agency officials agreed to follow up with more detailed breakdowns of SBDC funding sources, federal match requirements and the program's current advising capacity.
