expanding rural mission

By Philip S. Moore, Inside Tucson Business

Four months after assuming the top job at the U.S. Small Business Administration, Administrator Steven Preston is touring the country, promoting SBA’s achievements in business development and employment.

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He’s also drawing attention to a new focus for the administration: he wants more support for economic development in rural and border regions across the country.

By bringing greater attention to the unique needs of these communities, Preston said, “We’re working to be more responsive, to join with emerging populations to help them to take advantage of the opportunities that exist for them in today’s economy.”

Visiting Tucson and Phoenix as part of his national tour, Preston said the Small Business Administration has been a major contributor in the creation of 92,000 jobs in Arizona during the previous 12 months, which has cut the state’s unemployment to its lowest level in five years. “We’re very excited about that, both because of the robust growth these numbers demonstrate and because of the indications that, because of this growth, wages are going up.”

Calling it proof that the economy is moving in the right direction, he said Arizona is doing especially well. “We’re seeing that the right policies mean an increase in productivity, which translate into better incomes that benefit everyone.”

With a total of $1.1 billion in SBA-guaranteed lending to Arizona companies during fiscal 2006, as well as ongoing support for individual business counseling provided by SCORE (Service Corps of Retired Executives) and the state’s network of Small Business Development Centers, Preston said the Small Business Administration is “providing opportunities for small business to benefit from what we have to offer them.”

Looking to do more, there’s a new, expanded website with business education courses and counseling services available online, and greater emphasis on moving staff into the field, “to give us feet on the street.”

Preston said everything the SBA does is designed around the goals of training and counseling, assistance in finding a lender and support in selling to the government. Now, with so many services available, he said the Small Business Administration can provide all the tools necessary for an entrepreneur to succeed. “That’s why anyone thinking about starting a business should contact us first.”

One of those attempting to make that process easier is Stephen Hart, who is now serving as SBA’s senior area manager for Southern Arizona. He said a total of $200 million was loaned to Southern Arizona companies during the last 12 months, accounting for 27 percent of the companies and 20 percent of the value, provided by SBA guaranteed lenders.

From his office in the DeConcini Federal Courthouse in downtown Tucson, Hart said his job is to make that number even larger and to encourage even more business owners to take advantage of the counseling and support available.

He said, “My priority is get the word out into rural areas” of what the Small Business Administration has to offer them. “We want to be working with the Phoenix office and our local resource partners to extend their reach.”

As one of those Small Business Administration partner, Director Susan Kifer, of the Small Business Development Center at Pima Community College, said SBA support for the Tucson-based program continues to focus on “working with minority and women-owned and veteran-owned business,” tracking their progress as they grow.

“We hope to have some new programs coming up that will help us better reach outlying areas,” she said, “but that’s not much of a difference from what we’re already doing. We’ve always tried to do a lot for start-ups, and we really try to make a difference. That’s not going to change.”

Nor is it likely to change for Cochise County, said Mignonne Hollis, director of the Cochise Community College affiliated Small Business Development Center in Sierra Vista, but she said, “Without the college and the SBA, we wouldn’t be able to do our job.”

Providing support for workshops and counseling, Hollis said the center counts on the SBA and entrepreneurs count on the center to help them. “We work to be flexible and the SBA works with us.”

Hollis said local business needs are different, because companies need to plan for what might happen on both sides of the border, but, “We’re able to work with them on business plans that take that into account.”

Hollis said, “The Small Business Administration does a wonderful job in assisting us. I can’t think of a better partner.”

E-mail comments for publication to editor@azbiz.com. Contact Philip S. Moore by e-mail at pmoore@azbiz.com or call (520) 295-4238.