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 ************************************************************************** * This file contains an ASCII representation of the text of a GAO * * report. 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We are unable to accept electronic orders * * for printed documents at this time. * ************************************************************************** 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 Prot�g� 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 Prot�g�- 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.)