Small Business Development Centers
The Small Business Administration maintains and strengthens the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.
Program Accomplishments
In Fiscal Year 2004, SBDCs reported that they counseled 279,905 individuals and provided 27,371 training sessions to 445,894 people.
Uses and Use Restrictions
Funds restricted to the use of assisting small businesses.
Eligibility Requirements
Applicant Eligibility
SBA is authorized to make grants (including contracts and cooperative agreements) to any public or private institution of higher education, including but not limited to any land- grant college or university, any college or school of business, engineering, commerce, or agriculture, community college or junior college.
SBA is also authorized to renew the funding of other entities currently funded as SBDCs providing SBA affirmatively determines that such applicants have their own budget and will primarily utilize institutions of higher education to provide the services to the small business community.
Beneficiary Eligibility
Current and potential Small business persons.
Credentials/Documentation
Documentation must include approval and support of the proposal from the State government for state hosted SBDCs. Documentation should also include, but not be limited to: (a) Endorsement of the proposal by State officials; (b) endorsement of the proposal by the university hierarchy; and (c) a statement of commitment by the agencies and organizations listed as resources in the proposal.
Aplication and Award Process
Preapplication Coordination
Submission of proposal (including State endorsement) to the Central Office of SBA through www.grants.gov.
The standard application forms as furnished by the Small Business Administration and required by the Code of Federal Regulations Chapter 13, Part 143 (13 CFR 143) must be used for this program.
This program is eligible for coverage under E.O.
12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.
Application Procedures
All eligible entities within a State interested in establishing an SBDC should coordinate with each other in order to develop a proposal for a statewide SBDC service plan. This program is subject to the provisions of 13 CFR 143 (for State and local governments) and A-110 for institutions of higher education and nonprofit organizations. The proposal should be submitted to the local SBA District Office, listed in Appendix IV of the Catalog.
Award Procedures
Central Office of SBA executes cooperative agreements to approved applicants.
Deadlines
Refer to the SBDC Program Announcement located at www.sba.gov/sbdc.
Authorization
Small Business Act of 1953, Section 21, as amended, Public Laws 96-302, 98-395 and 105-135.
Range of Approval/Disapproval Time
Varies with individual proposals.
Appeals
Varies with individual proposals.
Renewals
This program is on-going and is renewed annually subject to availability of funds. SBDCs are required to update their proposal and submit a current year budget.
Assistance Considerations
Formula and Matching Requirements
The SBA will provide funds, the amount being determined on a pro-rata share of of approximately $89,000,000 based on the population to be served by the SBDC as compared to the total population in the United States, with no State receiving less than $500,000, or whichever is greater. The entity generally is required to provide nonfederal funds of at least a 1:1 match, although additional funds may also be contributed by nonfederal sources. At least 50 percent of matching funds must be in cash; the balance may be made up of in-kind contributions and indirect costs. Occasionally legislation will not require matching funds.
Length and Time Phasing of Assistance
Cooperative agreements are usually limited to 1 year. Payments are made by cost reimbursement or in advance as specified in the Notice of Award.
Post Assistance Requirements
Reports
Quarterly or semi-annual reports to the local SBA office no later than 30 days following the end of the required time period.
A final report is due 90 days after the end of the cooperative agreement year.
Audits
In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Nonprofit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in OMB Circular No. A-133.
Records
The SBDC shall maintain detailed, complete, and accurate client activity records of a sufficiency to reflect clearly the nature and variety of the SBDC service provided. Financial records must be maintained until 3 years after the completion of the grant project or submission of the final report, whichever is later.
Financial Information
Account Identification
73-0100-0-1-376.
Obigations
Grants: FY 07 $88,973,000; FY 08 $97,120,000; and FY 09 $87,120,000. Administration: FY 07 $12,268,000; FY 08 $13,348,000; and FY 09 $14,480,000.
Range and Average of Financial Assistance
From $500,000 to $5,927,231. Average: $1,298,246.
Regulations, Guidelines, and Literature
SBDC Program Announcement, SBDC Policy Guidelines, SBDC Handbook for SBA Project Officers.
Information Contacts
Regional or Local Office
For addresses of the field offices, see Appendix IV of the Catalog under the Small Business Administration.
Headquarters Office
Small Business Administration, Office of Small Business Development Center, 409 Third Street, S.W., 6th Floor, Washington, DC 20416. Telephone: (202) 205-6766 Fax: (202) 205-7727.
Criteria for Selecting Proposals
(1) Ability to match funds (2) Ability to provide technical assistance, training, counseling, and specialized services to the small business community, and (3) State approval.
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Spotlight
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