California SBDC builds small business tenacity through recession

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Press Release • For Immediate Release • April 12, 2010

Press Contacts:

Michael Kraft

Director, North Coast Small Business Development Center

(707) 445-1163, kraft@northcoastsbdc.org

Ann Johnson-Stromberg

Communications, Northern CA SBDC Lead Center

(707) 599-6146, acj1@humboldt.edu

California SBDC builds small business tenacity through recession

EUREKA

—Despite enduring lulls in the national and state economy, the

California Small Business Development Centers continue to leave an indelible impact on statewide economic development —retaining 2,400 jobs and building

3,000 new ones in 2009.

The California SBDC, with 35 Small Business Development Centers throughout the state, provides free consulting to over 17,000 entrepreneurs and low-cost training to approximately 40,000 of California’s 1.3 million business owners every year.

According to the annual report compiled by the California SBDC, the Northern

California region had the largest concentration of new job development and retention throughout the California SBDC. The NorCal region assisted small businesses in creating 1,158 new jobs and helped to retain 2,419 existing jobs.

The region encompasses 10 north-western California Small Business

Development Centers, stretching from Crescent City to Santa Cruz. Collectively, regional SBDC’s held more than 1,100 business trainings and reported assisting small businesses increase sales by nearly $41 million in 2009.

“I am very proud of the jobs and the businesses that the North Coast SBDC helped our clients save

—particularly clients in businesses like dairies, fishing vessels, auto maintenance shops, construction companies, retail stores and many others,” said North Coast SBDC Director Michael Kraft. “The first three quarters of 2009 was largely about that, but by the fourth quarter, many of our clients had returned to writing business plans to start new businesses and expand existing ones, providing our local economy with new forward momentum.”

One key growth area statewide included a 7 percent increase in business consulting volume. Individual centers reported spending more than 82,000 hours assisting small businesses with business plans, loan applications cash-flow management, government contracting and other needs.

Press Release • For Immediate Release • April 12, 2010

“The level of service provided to California’s small businesses by the SBDC in

2009 is particularly noteworthy in light of significantly decreased state funding for our program over the same period,” said Kristin Johnson, state chair of the

California SBDC and di rector of the NorCal region. “The past two years have been incredibly tough for businesses and the SBDC’s ability to assist struggling entrepreneurs at an even higher level during this time is a reflection on the dedicated business advisors of this program and a commitment of the SBDC to really be part of California’s economic recovery.”

As a result of 2009 California SBDC services, small business clients increased sales by nearly $118 million, and generated $1.77 in annual tax revenue for every $1 spent on the program —up 34 percent over tax revenue generated in

2008. Equity capital invested in SBDC clients’ businesses totaled just under $60 million, and loans to these businesses total more than $66 million. Further, clients attributed 640 new business starts to the assistance they received by the

California SBDC in 2009.

Businesses assisted by the California SBDC ranged from one-person microenterprises up through employers with as many as 200 employees. Of the total population of counseling clients served, more than 55 percent were of an ethnic minority. In 2009, veteran-owned and disabled veteran-owned businesses served by the SBDC comprised more than 12 percent of all clients —doubling the prior year’s statistic.

For more information about the North Coast SBDC and its services, go to www.northcoastsbdc.org

or call 445-1163. Information on the California SBDC can be found at www.californiasbdc.org

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