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 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.)