[Congressional Record Volume 147, Number 52 (Tuesday, April 24, 2001)]
[Extensions of Remarks]
[Page E595]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E595]]
                   SMALL BUSINESS DEVELOPMENT CENTERS

                                 ______
                                 

                          HON. ASA HUTCHINSON

                              of arkansas

                    in the house of representatives

                        Tuesday, April 24, 2001

  Mr. HUTCHINSON. Mr. Speaker, I rise today to recognize the great 
contributions which Small Business Development Centers (SBDCs) make to 
our communities. SBDCs have provided counseling and training programs 
to small businesses and potential entrepreneurs for over 20 years. 
SBDCs have a large return on investment as they create jobs, increase 
business revenue and generated tax revenue.
  In my home State of Arkansas, an economic impact study conducted in 
2000 revealed that more than $44 million in increased sales and more 
than $3.5 million in tax revenues were generated as a result of 
services provided by the Arkansas Small Business Development Center 
(ASBDC). Last year, clients served by the ASBDC created 541 new jobs! 
Those are staggering numbers which show that this is a program which 
deserves full funding.
  Small businesses account for 87 percent of all businesses in 
Arkansas. There are over 45,000 businesses with 20 employees or fewer. 
These numbers demonstrate the great need for the support services 
provided by the SBDCs. Businesses turn to the SBDCs for counseling, 
training, assistance with loan applications, and more. Simply put, 
SBDCs are vital to the health of the small business community.
  Mr. Speaker, I urge my colleagues to support funding of Small 
Business Development Centers at the highest level possible. In 
addition, I would like to insert an excerpt from an article 
``Successful Business Strategies'' written by USA Today columnist 
Rhonda Abrams as she speaks to the merits of this program.

                     Successful Business Strategies

                         (By Rhonda M. Abrams)

       One of the best, least-known services the government helps 
     fund--and I emphasize the word ``help,'' since the federal 
     government only provides matching funds--is a national 
     network of Small Business Development Centers (SBDCs). There 
     are over 1,000 SBDCs, located primarily at community colleges 
     or in Main Street storefronts across the country.
       They've provided one-on-one counseling and training 
     programs--free or at very low cost--to small businesses and 
     start-up entrepreneurs for over 20 years. If you haven't 
     heard of them, it's because they don't spend money 
     advertising. They just do their job.
       SBDCs serve over 600,000 small businesses a year in face-
     to-face counseling sessions, and another 750,000 businesses 
     turn to them for information, resources, and call-in 
     assistance. They provide business plan guidance, computer 
     training, and help small companies regroup rather than fold 
     up when an industry is phased out in a region.
       The result is a remarkable track record. SBDC clients 
     generated 67,800 new jobs in 1998. Small businesses helped by 
     SBDCs have a higher survival rate than other small companies. 
     And while the entire SBDC network received a paltry $83 
     million in 2000, SBDC clients generated additional tax 
     revenues of over $468 million. This is one federal program 
     that actually makes money for the government!

     

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