U.S. Government Aid to Business: Federal Government Programs That Provide
Management and Technical Assistance (Fact Sheet, 10/14/94,
GAO/GGD-95-3FS).

This fact sheet provides information on federal government programs that
give management and technical assistance to businesses. GAO (1)
identifies, given the limited time constraints of the assignment, as
many federal government programs that provide such help as was possible;
(2) briefly describes these programs and identified the target customers
that these programs were designed to serve; and (3) reports the current
funding levels for these programs.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GGD-95-3FS
     TITLE:  U.S. Government Aid to Business: Federal Government 
             Programs That Provide Management and Technical Assistance
      DATE:  10/14/94
   SUBJECT:  Minority business assistance
             Small business assistance
             Disadvantaged persons
             Federal aid programs
             Business development loans
             Technical assistance
             Government procurement
             Aid for training or employment
             Set-asides
IDENTIFIER:  Microenterprise Grant
             
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Cover
================================================================ COVER


Fact Sheet for the Honorable
Joseph I.  Lieberman
and the Honorable
Donald W.  Riegle, Jr. 

October 1994

U.S.  GOVERNMENT AID TO BUSINESS -
FEDERAL PROGRAMS THAT PROVIDE
MANAGEMENT AND TECHNICAL
ASSISTANCE

GAO/GGD-95-3FS

Business Aid


Abbreviations
=============================================================== ABBREV

  DOC - Department of Commerce
  DOD - Department of Defense
  DOE - Department of Energy
  FIRREA - Financial Institution Reform, Recovery, and Enforcement
     Act of 1989
  OSDBU - Office and Small and Disadvantaged Business Utilization
  SCORE - Service Corps of Retired Executives
  SBA - Small Business Administration
  SDB - Small Disadvanted Business

Letter
=============================================================== LETTER


B-258607

October 14, 1994

The Honorable Joseph I.  Lieberman
United States Senate

The Honorable Donald W.  Riegle, Jr.
United States Senate

As you requested, this fact sheet provides information on federal
government programs that give management and technical assistance to
business.  As agreed with you, we have attempted to (1) identify as
many federal government programs that provide management and or
technical assistance to business as possible, within the limited time
constraints of this assignment; (2) provide a brief description of
these programs and identify the target customers that these programs
were designed to serve; and (3) report the current funding levels for
these programs. 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

We found no particular federal office that tracks or coordinates all
the various management and technical assistance programs at the
different government agencies.  We identified 24 federally sponsored
government programs that primarily provide management and technical
assistance to business.  They are listed in the appendix.  These
programs offer a variety of services to business, including
assistance in areas such as accounting; developing business plans;
proposal and bid preparation; marketing; worker training; and
assistance in implementing improved manufacturing technology. 

The Small Business Administration (SBA) and the Department of
Commerce (DOC) had the largest number of management and technical
assistance programs that we identified for fiscal year 1994.  Other
programs were in the Departments of Defense, Energy, Labor (DOL),
Transportation, and the Treasury.  In addition, government agencies
that have procurement authority generally have an Office of Small and
Disadvantaged Business Utilization (OSDBU) that, in conjunction with
SBA, is designed to assist in the development of small businesses
owned and controlled by socially and economically disadvantaged
individuals.  OSDBUs primarily focus on helping companies procure
contracts with the federal government through various outreach
efforts including conferences, procurement fairs, and business
strategy sessions. 

The majority of the programs that we identified were targeted to
small business. 

Proposed fiscal year 1994 funding levels for the programs varied
widely, ranging from a high of $71 million for SBA's Small Business
Development Centers to a low of $1.5 million for DOL's
Micro-enterprise Grant Program. 


   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :2

To determine which government agencies had management and technical
assistance programs, we interviewed officials at SBA and at DOC's
Economic Development Administration and its Minority Business
Development Agency.  These particular agencies were identified in the
request that we conduct this review.  In order to identify additional
programs, we also searched government publications, such as the
Federal Register and the Catalog of Federal Domestic Assistance. 

We obtained documentation describing these programs from respective
program officials, notifications in the Federal Register, and prior
GAO studies. 

When possible, we obtained proposed fiscal year 1994 program funding
levels from the federal budget; however, because not all programs
were explicitly identified in the federal budget, we also consulted
program officials for this information. 

We did our work between July 1994 and September 1994 in accordance
with generally accepted government auditing standards. 


---------------------------------------------------------- Letter :2.1

We are providing copies of this fact sheet to the agencies we
identified in the appendix that have programs and to interested
congressional committees.  We will also make copies available to
others upon request. 

Please contact me on (202) 512-4812 if you have any questions
concerning this fact sheet.  The information for this fact sheet was
developed by John R.  Schultz, Assistant Director; Barbara Keller,
Assignment Manager; Jean-Paul Reveyoso, Evaluator-in-Charge; and
Robert Shields, Evaluator. 

Sincerely yours,

Allan I.  Mendelowitz, Managing Director
International Trade, Finance,
 and Competitiveness


FEDERALLY SPONSORED PROGRAMS
OFFERING MANAGEMENT AND TECHNICAL
ASSISTANCE TO BUSINESS
=========================================================== Appendix I

                                                                     Proposed FY
                                                                    1994 funding
                                Program                                    ($ in
Agency          Program         description     Customer               millions)
==============  --------------  --------------  ----------------  --------------
U.S. Small      8(a)            Provides        Socially and                 N/A
Business        Minority Small  development     economically
Administration  Business        assistance to   disadvantaged
(SBA)           Contract Set-   small           individuals.
                Aside           businesses
                                that are owned
                                by minorities
                                and other
                                socially and
                                economically
                                disadvantaged
                                individuals.

                7(j)            Provides        Small                       $7.5
                Management and  management and  disadvantaged
                Technical       technical       businesses
                Assistance      training in     (SDB)\a low-
                                accounting,     income
                                marketing,      individuals,
                                proposal and    firms in either
                                bid             labor-surplus
                                preparation,    areas or areas
                                and industry-   with a high
                                specific        proportion of
                                technical       low-income
                                assistance.     individuals.
                                                Most
                                                participants in
                                                this program are
                                                8(a) firms.

                Business        Provide         Small business               N/A
                Information     technical       entrepreneurs.
                Centers         assistance in
                                high-tech
                                hardware,
                                software, and
                                communications
                                .

                International   Provides        Small businesses             N/A
                Trade           financial and   in developing
                Assistance      business        export markets.
                                development
                                assistance.
                                The assistance
                                includes trade
                                counseling,
                                training, and
                                legal aid.

                Pilot           Provides        Small                        N/A
                Technology      computerized    businesses.
                Access          databases
                                containing
                                technical and
                                business
                                information
                                and experts
                                knowledgeable
                                in various
                                technical
                                fields.

                Service Corps   Uses a network  Small                        3.5
                of Retired      of about        businesses,
                Executives      13,000          entrepreneurs,
                (SCORE)         volunteer       start-ups and
                                retired         prebusiness
                                executives to   start-ups.
                                provide
                                development,
                                management,
                                and technical
                                assistance,
                                which includes
                                counseling and
                                training.

                Small Business  Provide         Small                       71.0
                Development     management and  businesses,
                Centers (56     technical       entrepreneurs,
                centers, 900    assistance,     small business
                service         which includes  start-ups.
                locations)      counseling,
                                training, and
                                other
                                activities.

                Small Business  Provides        Small                        3.0
                Institute       management      businesses.
                                assistance in
                                marketing,
                                accounting,
                                and other
                                areas.

                Demonstration   Provides        Women-owned                  2.0
                Project for     management and  small
                Women Business  technical       businesses.
                Owners          assistance,
                                which includes
                                long-term
                                training and
                                counseling in
                                all aspects of
                                ownership and
                                operation.

                Women's         Provides        Women-owned                  N/A
                Network for     development,    small
                Entrepreneuria  management,     businesses.
                l Training      and technical
                                assistance by
                                matching
                                successful
                                women
                                entrepreneurs
                                with women
                                seeking to
                                expand their
                                businesses.

Department of   Trade           Provide         Trade-injured\b             10.0
Commerce        Adjustment      technical       manufacturing
(DOC)           Assistance      assistance,     firms.
Economic        Centers         which includes
Development     (12 centers)    an assessment
Administration                  of a firm's
                                strengths and
                                weaknesses and
                                possible
                                recovery
                                strategies, if
                                recovery
                                appears
                                viable.

                University      Provide         Small and                    7.5
                Centers (64     technical       medium-sized
                centers)        assistance in   businesses.
                                engineering,
                                feasibility
                                studies, and
                                marketing, as
                                well as
                                management
                                assistance.

DOC             Minority        Provide         Minority                    38.0
Minority        Business        development,    businesses.
Business        Development     management,
Development     Centers (108    and technical
Agency          centers)        assistance.

DOC             Manufacturing   Provide a       Small and                 36.5\d
National        Extension       range of        medium-sized
Institute       Centers (28     technical       manufacturing
of Standards    centers)        assistance.     firms.
and                             The assistance
Technology                      includes the
(NIST)                          following:
Manufacturing                   assessing
Extension                       current
Partnership\c                   technology
                                needs and
                                competitive
                                position,
                                understanding
                                and
                                undertaking
                                fundamental
                                company
                                changes, and
                                defining and
                                implementing
                                company-
                                specific
                                technology
                                projects.

                Manufacturing   Provide         Small and                   16.8
                Technology      technical       medium-sized
                Centers (7      assistance to   manufacturing
                centers)        enhance the     firms.
                                productivity
                                and
                                technological
                                performance of
                                U.S.
                                manufacturing.

                State           Provides        Small and                    2.3
                Technology      grants to help  medium-sized
                Extension       states develop  manufacturing
                Program         and implement   firms.
                                their own
                                technology
                                assistance
                                programs.

Department of   Procurement     Provides        Large and small             15.8
Defense         Technical       assistance to   business.
                Assistance      businesses
Defense                         seeking to
Logistics                       market their
Agency                          products and
                                services to
                                DOD. The
                                assistance
                                includes
                                marketing,
                                pre-award
                                survey
                                assistance,
                                contract
                                administration
                                , and other
                                special
                                assistance.

DOD             Pilot Mentor-   Provides        SDB                         45.0
Office of       Protï¿½gï¿½         management and  subcontractors.
Small and                       technical
Disadvantaged                   assistance in
Business                        the following
Utilization                     areas:
(OSDBU)                         financial and
                                personnel
                                management,
                                marketing,
                                proposal
                                development,
                                loans, and
                                capital
                                investment.
                                Successful
                                defense
                                contractors
                                are matched
                                with SDB
                                subcontractors
                                seeking to
                                expand their
                                contracting
                                opportunities.

Department of   Small Business  Provides        Small                        8.0
Energy (DOE)    Initiative      technical       manufacturing
                                information,    businesses.
                                up to 80 hours
                                of
                                consultation
                                services, or
                                access to
                                unique,
                                specialized
                                facilities for
                                the evaluation
                                of new
                                processes or
                                equipment.

DOE             Management and  Provides        Minority                    0.38
OSDBU           Technical       advisory        businesses
                Assistance for  services and    seeking to
                Minority        counseling in   obtain DOE
                Business        financial       contracts.
                Enterprises     proposal and
                                bid
                                preparation.

Department of   Micro-          Provide funds   Owners and                   1.5
Labor           enterprise      to states, on   potential owners
                Grants          a competitive   of micro-
                                basis, for      enterprises.\e
                                business-
                                related
                                training,
                                technical
                                assistance,
                                and support.

Department of   Disadvantaged   Provides        Socially and                0.23
Transportation  Business        training and    economically
Federal         Enterprise      other           disadvantaged
Highway                         assistance to   businesses in
Administration                  help            the highway
                                businesses      construction
                                achieve         industry and
                                proficiency to  related
                                compete on      industries.
                                equal basis
                                for contracts.

Department of   Section 308     Provides        Minority-owned               N/A
the Treasury    FIRREA\f        training,       institutions and
                                technical       minority
                                assistance,     investors
                                and             acquiring failed
                                educational     financial
                                programs to     institutions.
                                preserve
                                minority
                                ownership of
                                financial
                                institutions.

National        Pilot Protï¿½gï¿½-  Provides        SDB                          N/A
Aeronautics     Mentor          management and  subcontractors.
and Space                       technical
Administration                  assistance in
(OSDBU)                         the following
                                areas:
                                financial and
                                organizational
                                management,
                                business
                                development
                                and planning,
                                and
                                engineering.
                                Successful
                                contractors
                                are matched
                                with SDB
                                subcontractors
                                seeking to
                                expand their
                                contracting
                                opportunities.
--------------------------------------------------------------------------------
Legend

FY = fiscal year

N/A = not available

\a SDBs cannot exceed the Small Business Administration's (SBA)
industry-based standards for number of employees or amount of annual
sales and must be independently owned (at least 51 percent) and
operated by socially and economically disadvantaged individuals. 

\b Trade-injured firms must demonstrate that (1) sales or production
has declined, (2) a significant portion of its workers have been
separated or are threatened with separation, and (3) an increase in
imports of articles like or directly competitive with those produced
by the firm contributed importantly to the sale or production
declines and worker cutbacks. 

\c The Manufacturing Extension Partnership is a nationwide system of
federally sponsored technology services, including Manufacturing
Extension Centers, Manufacturing Technology Centers, and State
Technology Extension Program. 

\d These funds are provided through the Department of Defense's (DOD)
Technology Reinvestment Project, as part of the government's efforts
to assist manufacturing firms in becoming less dependent on the
defense market and better able to compete in commercial markets. 

\e A micro-enterprise is a company with five or fewer employees, one
or more of whom owns the enterprise.  Each of the owners must be
economically disadvantaged. 

\f Financial Institution Reform, Recovery, and Enforcement Act of
1989 (P.L.  101-73) and section 403 of the Resolution Trust
Corporation Refinancing, Restructuring, and Improvement Act of 1991
(P.L.  101-233).  These acts also apply to the Federal Deposit
Insurance Corporation, the Office of Thrift Supervision, and the
Resolution Trust Corporation. 

Sources:  U.S.  Departments of Agriculture and Commerce, and SBA. 


=========================================================== Appendix 0



   (See figure in printed
   edition.)

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