[Congressional Record (Bound Edition), Volume 148 (2002), Part 1]
[Senate]
[Pages 831-832]
[From the U.S. Government Publishing Office, www.gpo.gov]




   10TH ANNIVERSARY OF THE VERMONT SMALL BUSINESS DEVELOPMENT CENTER

   Mr. LEAHY. Mr. President, I rise today to commend the 
Vermont Small Business Development Center, commonly known as the 
Vermont SBDC, for its impressive first ten years of operation.
  In 1992, this new partnership of government, education, and business 
was established in Vermont to help spur the state's economy. The 
parties involved were the U.S. Small Business Administration, the 
Vermont Agency of Commerce and Community Development, the Vermont State 
Colleges, and Vermont's twelve Regional Development Corporations.
  With a staff of five and a lean budget, the SBDC set out to 
accomplish its statewide mission: to help Vermont small businesses 
succeed. In its first year of operation, nearly 3,000 hours of free 
business counseling were provided to 736 clients. The positive impact 
of SBDC activities in just its first three years of existence is 
attested to by the attendance of nearly 1,400 people at its small 
business seminars held around the state in 1995.
  Over the past 10 years, the SBDC has provided more than 44,000 hours 
of counseling to 11,000 clients. Over half were women, and half were 
new business startups. In addition, over 15,000

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Vermonters have attended SBDC business seminars.
  Evaluation is a critical component to the SBDC. The annual impact 
assessment implemented in 1996 measured the economic impact that SBDC 
clients were having in Vermont. It found that SBDC clients created jobs 
at twice the rate of other Vermont businesses. It is not surprising 
that client satisfaction was rated at 97 percent.
  In 1998, the Vermont SBDC was recognized by the U.S. Small Business 
Administration, SBA, as the Outstanding National SBDC; a wonderful feat 
for an organization that accomplishes so much with so little. In fact, 
last year's economic impact assessment revealed that SBDC clients have 
led to the addition of over $3.2 million in incremental tax revenues to 
the Vermont treasury. Considering the current state match contribution 
of about $300,000, that equates to more than 9 to 1 return on the 
state's investment.
  The impressive achievements of SBDC must be viewed in light of the 
active role of the various partners that support it. Since its 
inception, SBDC has been housed at Vermont Technical College, which 
also provides facilities for workshops and seminars. The SBA provided 
the initial seed funding and by validating SBCD's effectiveness 
continues to provide federal funding. The Vermont Agency for Commerce 
and Community Development provides matching state funds and is an 
integral partner in the SBDC network. The Agency considers SBDC a 
primary component of their economic development strategy. The Vermont 
Regional Development Corporations (RDC) are the local partners which 
ensure that services are provided uniformly throughout the state. SBDC 
counselors are housed at the twelve RDC centers around the state.
  Leveraging resources and working with other organizations has been 
the hallmark of the SBDC over the years. Private sector and other 
external network partners have been absolutely essential for service 
delivery. The SBDC works with countless external organizations on a 
daily basis to form a broad delivery and support network. For example, 
approximately 60 percent of referrals for SBDC counseling and business 
planning assistance come from the banking community and other lenders.
  In the face of potential reduction of funding, clients and friends of 
the SBDC are coming together to emphasize the benefit and economic 
contributions of the SBDC. Together, they are sending the message that 
now is not the time to cut SBDC resources. Rather, a challenging 
economy is the time to invest in partnerships like the SBDC. At return 
rates of 9 to 1 it is difficult to justify not providing the funding 
necessary to maintain the resources needed to meet market need.
  Once again, I am proud of the initiative and hard work SBDC has 
contributed to making our state a national leader among small business 
development organizations. Small business is truly the backbone of 
Vermont's business community. And Vermont is an example of how small 
states can leverage their limited resources for the maximum benefit of 
their citizens. Over the years, SBDC has found ways to partner with the 
federal government, the private sector, and higher education to double 
its available funding, provide free quality services to businesses, 
help develop businesses and economic independence, and at the same time 
provide a return on investment that more than pays for the program. I 
congratulate them on their tenth anniversary.

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