UC Merced SBDC Regional Network
CY 2009 Annual Performance Report
Table of Contents
A. Overview ……………………..………………………...……………………..
B. Analysis and Narrative of Activity Impact………………………………………..................
C. Description of Resources……………………………………………………………………..
D. Economic Impact…………………………………………………………………………...….
200 Capital Formation……………………………………………………………………
300 Innovation and Technology Transfer.……………………………………………...
400 International Trade…….…………………………………………………………….
500 Minority Small Business Development….…………………………………………
600 Resource Development….………………………………………………………….
800 Special Emphasis Groups.………………………………………………………….
900 Faith-based Economic Development….…………………………………………..
1100 Other Activity……………….……………………………………………………….
1200 Success Stories…………….………………………………………………………
1500 Financial Reports…………….………………………………………………….…
1600 Women-Owned Businesses..…………………………………………………….
1700 Economic Impact…………….……………………………………...…………..…
1800 Veteran-Owned Businesses..…………………………………………..…………
2000 On-line Activity………………..…………………………………………..…………
Attachment A. Financial Reports
Attachment B. Annual Economic Impact Report
UC Merced SBDC Regional Network
CY 2009 Annual Performance Report
Overview: From the Regional Director
Amid tough times, the UC Merced SBDC Regional Network continues to strive forward. We
have faced a year where potential funding partners experienced huge budget deficits, layoffs,
and reduced services that greatly impacted our ability to garner additional cash match. Even
though this reality has been disheartening, it has not diminished the networks energy and drive
to identify new partners to become more collaborative and creative. This past year was one of
laying a new foundation for a stronger framework upon which to provide more innovative
I’ve just completed my first full year as the Regional Director leading a very dedicated network
of center directors and consultants. Because of their loyalty and our working together,
highlighted below are some of the advancements that were accomplished by the lead office in
1. Secured ASBDC Accreditation
2. Implemented a lead center advisory board
3. Managed additional contract consultants from the lead office in San Luis Obispo, Salinas
4. Completed and distributed a comprehensive consultant manual
5. Gained new sub center hosts with CSU at Monterey Bay and opened a new SBDC
center in Gonzales, CA
6. Conducted numerous meetings with potential stakeholders and have identified 2 new
partners to host sub-centers in 2010
7. Encouraged existing center directors to implement satellite offices and have four
additional satellite locations
8. Conducted a SBIR/STTR workshop at UC Merced with 94 attending
9. Updated and greatly improved the Lead Center’s website
10. Gained additional credibility with the academic leadership at UC Merced and have jointly
submitted a grant for an iHub to the state of California.
11. Gave a presentation about the SBDC program at the UC’s Office of the President’s
Research Directors semi- annual meeting in Oakland.
12. Submitted five grant proposal and two letters of inquiry.
As the leader of this SBDC network, one of my goals is to position this network for long term
sustainability which is accomplished by providing small business assistance not only to “main
street” but assisting innovation and the commercialization of technology transfer. It is this latter
group where we have the greatest opportunity to gain financial stability because of their ability to
attract additional resources and noteworthy success stories. This can be accomplished by
laying the groundwork for a SBTDC that compliments the mission of the UC Merced which is the
only research-designated university in Central California.
We are very appreciative for the support from SBA and OSBDC as we work together to help
strengthen the economy by serving the small business community in Central California.
Diane R. Howerton
The Central California Regional Network has experienced a year of challenge and positive
change. The challenges include a significant increase in the demands and the levels of need
from clients seeking SBDC assistance. Client performance measures, personnel and funding
are the three categories that summarize this network’s annual narrative.
A. Analysis of client performance measures.
For the region, we had an overall milestone performance rating of 75.63 % with capital infusion
being the lowest rating in FY08-09 at 39.5% or $6,390,405 whereas long term engagement
client’s performance results were 102% of goal. Extended engagement clients regional
performance was 90.5% of goal and new businesses started was 70.5% of goal at 62
businesses. Considering the loss of sub-center personnel and local funding, these results
indicate that the existing team is doing everything possible with limited resources to provide
assistance to the small business community.
The low capital infusion is directly related to the tightening of the financial community.
Numerous businesses have sought our assistance needing working capital along with high
potential startup businesses that were not been able to do so because of an inability to locate
and secure funding. This is a major factor for our low capital infusion and the reason for 62
business starts and not 88 as originally projected. It is also important to recognize that the shear
volume of service requests has led to a need to increase and expand the level and types of
consultant expertise. Many clients who in the past would have been assigned a SBDC
consultant are referred to basic training classes, community resources or to other assistance
such as SCORE.
Even though the SBDC personnel are working hard, we need to work smarter. Incentives for
meeting and exceeding goals along with benchmarks for analysis relative to performance
combined with friendly, constructive competition needs to be implemented. As director, I am
working with center directors on improving performance by establishing statistical benchmark
measures and standards. Examples of some of the measures for center directors are:
Cost of the consulting, Cost of business startup
Value/potential outcome of consulting hours relative to economic impact
Potential job creation& retained from grant dollars
Number of consulting hours required per center based on funds
Percentage of service centers performance to network performance
Meetings were held with each center director to review current performance, establish agreed
upon performance measures (with stretch goals) along with a calendar review of their 2010 CY
plans and activities to ensure strategies are in place relative to the 2010 SBDC proposal to
The network’s consulting hours are low and heavy emphasis is in place on the necessity
required to increase each center’s consulting hours in order to improve performance. Based on
the FY08-09 capital infusion divided by consulting hours, every consulting hour has the potential
to generate approximately $1,355 in economic impact. Therefore, in order to reach the
$12,609,000 goal, we need to have 9,306 in consulting hours. This has been divided per region
so each director understands their required hours for their center’s performance. In addition,
emphasis is being made on the need to capture jobs created and jobs retained. This is the story
as we recover from this recession.
B. Personnel Issues
We have had an increase and a loss of personnel in the region. We are fortunate to have two
strong small business experts join the network, Rich Mostert at CCSBDC and Andrea Nield at
CSUMB. In a very short period of time both Rich and Andrea have made and are making a
positive contribution to the program. Andrea Nield has worked tirelessly and with outstanding
success to open a new office for CSUMB at Gonzales. Rich Mostert is making great inroads into
the financial community regarding additional cash match funding and program leadership.
On the administrative side, there were two individuals who left the program. At the lead office,
Katrina Roubedeaux resigned to assume a teaching job and her duties are being delegated
between the directors and UCM campus. In addition, Amber McRae, the administrative
assistant at the Visalia office resigned providing more funds allocated for consulting.
C. Financial Resources
The big story regarding the financial stability of the network is the new partners that are joining
our forces. With all the financial uncertainly and nervousness in California, we are pleased to
report new partners: CSU at Monterey Bay, the Cities of Gonzales, Los Banos, Mariposa and
Turlock; and the Counties of Tuolumne, Merced and Mariposa.
Another important financial resource are the additional funds the sub centers are receiving that
complement the existing program to improve the small business services in their respective
communities. In two regions, CSUMB and The Alliance, will be participating in a recently
awarded $450,000 Layoff Aversion Grant.
A. Analysis and Narrative of Activity Impact
What are the problem indicators in Central California?
Unemployment rates higher than the national average
Per capita income among the lowest in the Country
High foreclosure rates
Deficit of good jobs
Central Valley’s population expected to double in the next forty years and currently is the
fastest growing population in California
A continuing negative impact because of the 1995 closure of Castle Air Force Base in
Water shortage, poor air quality and medical services needed
The economy in California is in critical condition with the economic conditions in many areas
throughout Central California devastated by the housing bust along with reduced water supply
for the agricultural sector. In a survey during the week of June 15, 2009, the Brookings
Institution ranked two Central Valley cities – Fresno and Modesto among the weakest
metropolitan economies in the nation, with some of the highest rates of unemployment and
Recent studies by the California Partnership for the San Joaquin Valley identified a significant
lack of small business and entrepreneur infrastructure and services1. Prospective new business
The State of the Great Central Valley of California; Assessing the Region Via Indicators, October 2009, 3 edition.
start-ups therefore face higher hurdles to achieve success and the region is constrained from
facilitating economic diversification. Subsequently, new businesses need assistance on
identifying efficiencies and cost saving measures.
The State of California does not contribute to the SBDC program in Central California that has
resulted in a large economic and disparity gap regarding financial resources for an area that is
in desperate need. “Fewer Federal dollars are spent per capita in the Central Valley than in the
rest of California and the nation. Fewer dollars are spent per capita in California than in other
states. Federal spending per capita in the Central Valley is only 64% of the national average,
down from 69% in 2002. This is below California’s per capita Federal Spending of 89% of the
The Central Valley has unique resources for renewable energy such as natural energy
resources (solar, wind and biomass) and the agriculture and manufacturing industries. In 2003,
the Great Valley Center identified the development of the local workforce and building
infrastructure for services and support as action strategies to meet the needs of this emerging
industry. Future jobs identified in the study include mechanical and electrical technicians,
equipment operators, construction workers and engineering technicians. Innovation and
opportunity will come from businesses that develop and implement green business practices.
Unfortunately, unemployment remains high and the small business infrastructure is weak
because of the loss of some large businesses such as Gottschalks that filed for bankruptcy in
2009. The company still owes unsecured creditors between $75 to $105 million; many of these
are small businesses in Central California3
B. Description of Resources
With the need to secure additional financing due to limited to no State match funding for the
SBDC program, all Service Center Directors invest a significant amount of their time in financial
resource development. In total, the region received $377,629.93 in cash match in 2009.
C. Economic Data Report for FY 2009
Business Start-ups 62
Jobs Created 627.5
Jobs Retained 51
Change in Sales $512,043
SBA Loans, No of Loans 14
SBA Loans, $ Amount $2,142,040
Non-SBA Loans, No. of 23
Non-SBA Loans $ Amount $2,151,700
Equity Capital $2,121,665
The State of the Great Central Valley of California; Assessing the Region Via Indicators, October 2009, 3 edition, pg36.
“Gottschalks creditors may see some relief. Creditors of former Fresno-based retailer likely to get pennies on the dollar.” The
Fresno Bee. Tim Sheehan, January 2, 2010.
The network has a 96.26% customer satisfaction for the quality of consulting and overall
services being provided. This is a slight increase over the last Chrisman report (2006-2007) that
had a 95% rate for SBDC services.
D. Activities (Results / Impact)
The successful strategic planning meetings facilitated by Mike Young, Chair ASBDC
Accreditation Committee & Regional State Director, University of Houston SBDC Network
resulted in streamlining our goals to three with goal #1 being: Attain a high level of stakeholder
awareness & positive recognition for the UC Merced SBDC Regional network. All the existing
centers have developed newsletters utilizing Constant Contact with the newest locations
planning to do so in 2010. This is a targeted method for supporting small business interests not
only through newsletters but also articles on participation in community business events,
economic development organizations, participating on panels and speaking before community
groups. An honor for the network was Kurtis Clark, director at the Alliance SBDC was invited by
the Federal Reserve Bank of San Francisco to participate on a panel. The topic of the forum
was, “Supporting Small Business in Recessionary Times” held on November 16, 2009.
New legislative relationships are being established at the State and Federal levels. During the
Spring 2009 ASBDC meetings, the Regional Director met with two Congressmen;
Representative Sam Farr and Representative Dennis Cardoza and seven legislative assistants
from other Congressional offices. In addition, the Lead Office Advisory Board has state and
Featured are some of the highlighted activity that clearly demonstrates our networks efforts.
The Alliance SBDC:
The Alliance hosted a Small Business Roundtable on June 30, 2009 for U.S. Rep.
Dennis Cardoza at the SBDC office in Modesto. About 20 entrepreneurs attended to
discuss small business issues with the congressman and his staff.
Kurtis Clark, the director attended a “listening” sessions hosted by NFIB in Modesto for
CA State Senators Tom and Mike Berryhill, brothers serving adjacent districts in Ca
Central Valley. Presented to the Turlock City council on SBDC programs in Nov ‘09
Small Bus week event held on May 22 with 42 attendees. Topics covered included
Doing Business w/Cal-trans, Marketing to Federal Government, Responding to RFP’s
and Funding sources in the Stimulus Package.
Bryan Moe, Director was a participant with Tulare County Enterprise Zone successful
Bryan Moe and Gil Jaramillo, Director of the Visalia office met with Nicole Parra,
Governor Schwarzenegger’s regional development director of regional initiatives for the
Business, Transportation, and Housing Agency.
Gil Jaramillo, Center Director Tulare Kings SBDC was elected “Man of the Year” by the
Tulare Kings Hispanic Chamber of Commerce.
Mr. Jaramillo also is the editor of the Hispanic Times, a monthly newsletter where he
often provides articles about the services of the SBDC.
On Friday, Nov. 13, The Associate Director participated in a Monterey County “Eggs & Issues”
conference where Bruce McPherson, former California Secretary of State and Fred Keeley,
Treasurer of Santa Cruz County. The former Assemblyman presented on “California Forward,”
an initiative with the mission to improve the quality of life for all Californians by creating more
responsive, representative and cost-effective government. In August, the 15-member panel
issued recommendations for budget reform, with a plea to lower the two-thirds voting threshold
for passing a budget while advocating more accountability over state spending. The group hails
the proposal, which is often complex but with a simple, singular aim, as a bipartisan way to get
the state's fiscal house in order. The event was attended by persons from business, industry
groups, government, and not-for-profits that are concerned about key issues affecting the
economic health of Monterey County and are looking for solutions
0200 Capital Formation
This was a difficult year for the small business owner seeking capital as evidenced nationwide.
The center directors and lead office are continuing to identify additional sources of capital. At
the Alliance SBDC several meetings were held with local leaders interested in developing a
Stanislaus County Angel funding group. Discussions are ongoing but it was decided by potential
investors to postpone launching until economy improves.
Our relationship with the CDCs has not been strong throughout the network. We are working to
improve this dynamic by discussing ways to do so at director meetings. We do have a former
CDC employee working at the CCSBDC, Rich Mostert who is very helpful in identifying ways to
improve the working relationships between the CDC and the SBDC.
Kurt Clark met on two occasions with Susan Martin President of Success Capital, a CDC in
Modesto to discuss her organization becoming a CDFI. She went to her board and they
decided not to pursue at this time. Susan cited their concerns about the time commitment of
CDC staff and risk. In addition, Kurtis Clark was invited by the Federal Reserve Board in San
Francisco to serve on a panel of Small Business Technical Service Providers November 16th,
’09 to discuss “Access to Capital” issues in the economy.
The Central California SBDC continues to maintain close ties with the Community Banks,
Fresno County EDC and WIB, Tulare County EDC, WIB, Valley Small Business Development
Corporation, Fresno Community Development Institution and the California Partnership for the
San Joaquin Valley. A new relationship was developed with the Fresno CDFI and loans are
being issued to SBDC clients, the first was a $105,000 loan for business expansion of an SBDC
client’s auto repair facility. Wells Fargo has begun to work with the Visalia office and
successfully put together an $850,000 loan for an SBDC client to start a franchise.
At the CSUMB SBDC, the lending environment continues to be constricted. The SBDC plans
to host a lender roundtable as well as conduct individual outreach to the SBA lenders in the
area in the hopes of facilitating the connections with small businesses needed capital and
subsequent loan approvals. The SBDC is outreaching to several local lenders to build access
paths for capital sources.
0300 Innovation and Technology Transfer
A goal in the semi-annual report was to conduct a SBIR/STTR workshop in the Fall of 2009. We
successful accomplished this goal with a partnership arrangement with Kristin Johnson,
Regional Director at Humboldt who sponsored Charles Eason director at the Sonora College
SBDC to be one of the key speakers. This was a very successful event with 94 in attendance.
The participants were entrepreneurs both locally and from other cities, students, faculty the
SBDC center directors, SCORE and SBA officials. Our regional economy needs more
innovation and the commercialization of technology transfer. New business relationships are
being established to address this need particularly at UC Merced in order to increase a
partnership arrangement between the University and the SBDC program.
The Regional Director, CCSBDC and the Alliance all partnered on different iHub (i=innovation)
designation grants that were submitted to the state in November 2009.
Bryan Moe, center director at the CCSBDC has worked diligently on the Rural Technology &
Communication Initiative, to offer consulting services to remote areas of the center’s region via
web 2.0 technology with video conferencing equipment has begun with the establishment of
Memorandums of Understanding with various resource partners. Equipment for this initiative
was delivered in late 2009. Unfortunately, funding for this project has not materialized but 2010
looks promising. The Center Director developed a “green” program called Sustainability: A
Guide to Green Business Practices for distribution to the Network.
0400 International Trade
All the centers are working with the Center for International Trade Development, CITD,
We have cooperative agreements with international trade organizations to provide assistance
for small businesses. There were 24 import/ export workshops conducted, 11 in Bakersfield, 11
in Fresno and 2 in Visalia.
At the new SBDC at Gonzales, the Associate Director mentions international trade in community
presentations intended to acquaint people with available SBDC expertise & services. Michael
Adams, one of CSUMB SBDCs business counselors, has extensive experience in the wine
industry and is a specialist in wine exporting. They anticipate much activity in this area as
outreach and awareness increases in the coming year.
0500 Minority Small Business Development
The UCM-SBDC network has an excellent track record on serving the minority community. In
2009, we served 372 or 29% of the clients who are Hispanic, American Indian/Alaskan Native,
Asian, African American, and Native Hawaiian/Pacific Islander entrepreneurs. Center Directors
partner with organizations that assist minority small business segment such as: Valley Hispanic
Alliance, the Central California Hispanic Chamber of Commerce, the Kern County Black
Chamber of Commerce and the Hmong American Community’s Small Farm Resource Center,
the Tulare/Kings Hispanic Chamber of Commerce, Stanislaus County Hispanic Chamber and
the Kings County African American Women’s Business Network. Some programs of note are
The Alliance SBDC has a robust program of services and outreach efforts to serve Spanish-
speaking persons throughout their 4-county service area. NxLevel classes were offered entirely
in Spanish (sponsored by Citibank) and new 8 week series of business management seminars
were developed in Spanish (sponsored by Wells Fargo). There are several Spanish speaking
consultants who are only available on a limited basis. They continue to seek one or more
Spanish-speaking consultants to work with the SBDC on a more frequent schedule. In 2010 the
Merced SBDC office will be working with the City of Merced to expand the services into the
Southeast Asian and Hmong business communities on a new grant from the City.
The CCSBDC received a grant from AT&T to assist Women of Color in Central California in
business start-up, expansion, and obtaining Disadvantaged Business Enterprise (DBE) status.
Additionally, they received a grant from the Kern County Black Chamber of Commerce to offer
NxLeveL classes to their members and the Black community in Bakersfield. Over the last
eighteen months, the Center has facilitated the State Certification of 100 DBEs from the Central
Valley. The Kings/Tulare Office continues to reach out to military personnel at the Lemoore
Naval Air Station, through workshops designed to introduce “how to start a business” for
enlisted and senior military personnel exiting the service.
At the CSUMB SBDC it is interesting to note that as they were setting up the new SBDC office
in Gonzales, the landlady became one of their first clients. Ms. Yeo K. Kim, owner of the
property at 425 Belden St., in Gonzales where the SBDC is located, requested SBDC
Counseling assistance to help her access a loan for business expansion. Ms. Kim owns the
commercial building that includes a small market, as well as two commercial spaces for rent;
one of which is rented to CSUMB SBDC. Ms. Kim had never heard of SBDC services prior to
her introduction to the CSUMB SBDC. Additionally, the physical location of the CSUMB SBDC
in Gonzales, CA is proving to be an excellent site for connecting with the local Hispanic
0600 Resource Development
As stated in the semi-annual report, “A key challenge in rebuilding a network is rebuilding
relationships.” We are pleased to report that 2009 was a most successful year in developing
new resources and collaborative relationships with community partners. This is true throughout
the region. For the Lead Center, this is evidenced with a new sub-center host with CSU MB with
an ongoing meetings being held in Atascadero, San Luis Obispo and Kern County for new
partners. We anticipate having at least two more sub-center and satellite hosts in 2010.
At the Alliance SBDC, The Stanislaus Business Forum, a program the SBDC has operated
since May ’05 has grown to 14 sponsors. Each sponsor contributes $1,500 to fund the program
and all contribute professional people resources for the purposes of guest speakers and
program material development. Through the relationships with the SBF sponsors, the SBDC
has benefited by having a very high quality pool of professionals. They used this pool in 2009
for NxLevel speakers, training instructors, and special events like speakers of Small Business
Week, many donating their time. Highlighted are some of these key partnerships below
o Stanislaus Business Forum- three ½ day professional forums each year.
o Citibank –NxLevel: Two courses in English and 2 in Spanish each year
o Wells Fargo-Two 8 session Spanish language Management Training series
o Tuolumne County partnership for SBDC services-began in August ‘09
o Mariposa County partnership for SBDC services-began in May ‘09
o MCEDCO-Merced County EDC- two funding agreements to provide SBDC
services to City of Los Banos and the unincorporated communities of Merced
County- Began in Sept ’09 ($16,000 in CDBG funding)
o City of Turlock-CDBG-r ARRA funding to provide SBDC services in the
downtown and surrounding business areas negatively impacted by the recession
(began in Nov ’09, provides $30,000 in CDBG funding)
Alliance (Host and WIB) – ARRA funded Stanislaus County Lay-off Aversion Program
administered by SBDC Director with assistance from SBDC AdMin. ($450,000 program)
The CCSBDC continues working with Fresno Adult School (FAS) with their Manchester Center
school to allow CCSBDC clients to enroll in classes at no charge. The CCSBDC participates
with Workforce Investment Boards to advance the services in the four county areas. The
CCSBDC actively participates in Fresno EDC’s BEAR Action Network program. The CCSBDC
recorded over 500 hours in consulting through their referrals. The Director attended annual
conference with the Partnership for the San Joaquin Valley, working with organizations within
the Partnership to obtain Stimulus Funding for the San Joaquin Valley. Four of five grants
submitted to California Partnership for the San Joaquin Valley with CCSBDC, Alliance SBDC
and San Joaquin Delta SBDC made the final submission to Secretary Bonner, BTH, for
Stimulus Bill funding for all eight San Joaquin Valley Counties.
Resource Development is a critical component on establishing a new sub-center and the
leadership at CSUMB has hit the ground leaping with excellent results. In collaboration with the
Monterey County Business Council and the Central Coast SBDC, the CSUMB SBDC submitted
a proposal to the Monterey County Workforce Investment Board to provide "Layoff Aversion"
services to our service region. The proposed project brings together the three primary partners
(MCBC, CCSBDC & CSUMB SBDC) in conjunction with the region's chambers, business
organizations, trade associations, industry cluster groups, local government and civic
organizations to identify and serve at-risk businesses. It is expected that the partnership will
make contact with over 1,000 businesses increasing business owner awareness of the valuable
programs and services offered by the SBDC. It is expected that the two SBDCs will provide up
to 10 - 15 hours of one-to-one counseling and assistance to no less than 100 businesses
through this grant. Also throughout November, conversations continued between the Central
Coast SBDC, the CSUMB SBDC and the Monterey County Business Council to further develop
the “Layoff Aversion” program using $250,000 of investment from the Monterey County
Workforce Investment Board (WIB). The program was successfully approved by the WIB in late
December. The proposal will be presented to the county Board of Supervisors in January of
2010 for final approval. Work is expected to begin in January as well.
In the Fall of 2009, key presentations and meetings were held by the Associate Director Andrea
Nield at the Gonzales Chamber of Commerce, ALBA On Thursday, November 12, Associate
Director Andrea Nield made a presentation to the Gonzales Chamber of Commerce to introduce
the new SBDC programs and services being located in their community. The presentation
resulted in six local business owners seeking the services of the SBDC in the subsequent
On Monday, Nov. 16, Associate Director Andrea Nield and SBDC Consultant Michael Adams
met with staff the Agricultural Land Based Training Association (ALBA) to discuss their farm
incubator program and how the SBDC programs and services might add value. It was
recognized that ALBA is not equipped to teach the financial aspects of farming business as well
as the SBDC. Preliminary conversations were held to explore the possibility of a joint program
between the two organizations where farmers that graduate from ALBA’s incubator are
channeled into SBDC consulting services.
SBDC Director Marylou Shockley and Andrea Nield attended the Monterey County
Hispanic Chamber of Commerce holiday luncheon in Watsonville on Dec. 2. SBA Fresno
Region District Director Carlos Mendoza presented to the group. This was another opportunity
to reach out and network with stakeholders as well as potential clientele. During this Quarter,
the Associate Director met with representatives of the City of Soledad, the Chamber and Rotary
Club in King City, the Chamber of Commerce, Tourism Board and the Economic Development
Corporation in Gilroy and with the Chamber of Commerce in Salinas to introduce the programs
and services of the SBDC, discuss how the local agencies might support the work of the SBDC,
and explore how we might jointly work to support economic growth in the region. All
stakeholders expressed interest in providing, at a minimum, facilities for the establishment of
regular presence of SBDC counseling services in their community.
Progress is being made in building community partnerships that will add to the resources of the
CSUMB SBDC. Sanjay Lanka and Marylou Shockley established a successful relationship with
the City of Gonzales which led to the City's granting of $5,000 CDBG funding to provide for the
SBDC office rent. It is expected that the City will continue to donate resources, both cash and
in-kind, to support the growth of the CSUMB SBDC.
Sanjay Lanka and Andrea Nield met with representatives from the City of Soledad who have
suggested they would provide a $50,000 CDBG grant to the CSUMB SBDC for service delivery
in the City of Soledad. Conversations are under way to identify and prioritize the City's
economic/business community needs in order to design a service program that will achieve
mutually agreed upon economic goals. And lastly, Andrea Nield has initiated conversations with
Bank of America and Citigroup to bring additional cash match resources to the SBDC in
calendar year 2010.
Procurement assistance workshops are being conducted in the network and we are fortunate to
have an expert that is a contract consultant based at the CCSBDC.
As new programs are developed in Bakersfield, San Luis and at the Gonzales SBDC, we plan to
implement procurement assistance.
The Alliance SBDC works with the local P-TAC in Sacramento, the Federal Technology Center
(FTC) to co-host 5-6 procurement workshops annually at the Modesto and Merced SBDC. The
Alliance Business Resource Center offers assistance to SBDC clients on CCR, 8(a), SDB, and
State of California DGS procurement procedures and opportunities. There is a cross referral
relationship by working with the FTC. New program are being developed to be launched in 2010
with local Government Procurement Specialists to train and counsel local small businesses on
successful Government Contracting
The Central California SBDC hosted five workshops in Fresno conducted by Caltrans and
California Construction Contractor’s Program (CCCP) representatives to assist DBEs and
DVBEs in learning how to do business and win contracts from the State of California. Nascent
and existing business owners from around the Central Valley attended these workshops. The
CCCP provided workshops in government contracting with the State of California and
instructions on how to complete an application in response to an RFP. The Center participated
with the Center for International Trade Development of the State Center Community College
District in thirteen valley wide workshops devoted to international trade. Additionally, we have
worked with Caltrans to increase the number of disadvantaged and small business owners
winning Caltrans contracts and currently rank 1st on awards won by SBDC clients in California.
0800 Special Emphasis Groups
Throughout the region, SBDCs work with a wide variety of “Special Emphasis” groups in order
to reach the broadest range of entrepreneurs. Often these clients represent those with limited
access to assistance and a high percentage is in LMI and minority groups.
The Alliance SBDC hosts the Stanislaus Business Forum program which delivers three ½
forums with National level guests speakers and local successful business
owners/Entrepreneurs. The program raises about $20,000 for the SBDC each year from
sponsorships and attendees. Average attendance at each forum is about 120-150 persons. The
program has been in operation since May 2005.
The Central California SBDC Director continues to work with local minority Chamber of
Commerce groups. Center Director gave presentation to State Department of Rehabilitation to
discuss business start-up. The Central California SBDC works closely with Community
Colleges and Adult Schools to provide business consulting, and workshops to older start-up and
existing business people. The Kings/Tulare Office continues to reach out to military personnel
at the Lemoore Naval Air Station, through workshops designed to introduce “How to Start a
Business” for enlisted and senior military personnel exiting the service. Kings/Tulare SBDC
Director attended a Business Expo Extreme Entrepreneurship, a nationally recognized youth
training program, at Porterville College, preparing to participate next year at a higher level.
0900 Economic Development, Faith-based and Community Initiatives
As with all priority service areas, the UC Merced SBDC Regional Network strives to reach out
and serve the business development needs of all persons regardless of race, color, age,
gender, ethnicity, disability, religion, or sexual orientation
As mentioned earlier in this report, there are two regions, Modesto and the Salinas/Monterey
area that were awarded Lay-off Aversion grants. In addition, the Alliance SBDC received a
CDBG grant from the City of Turlock to provide training and counseling to local businesses
through a new Down Town Incubator that started in November 2009. These programs have
resulted in SBDC services being expanded with satellite locations in Tuolumne, Mariposa and
Stanislaus counties (rural areas).
The Central California SBDC Director participates in the Tulare County Business Resource
Team, a collaborative of the EDC, city managers, and the Workforce Connection. The Central
California SBDC is working with the Fresno County Workforce Connection to identify and assist
businesses with negative or flat growth. Additionally, they participate with the WIB’s federally
funded 80/20 program that assists employees and employers in job creation.
The UC Merced SBDC Regional Network conducts numerous collaborative research projects
throughout the year. Most are based on determining current business climate and
entrepreneurial/client needs. All the SBDCs in the network maintains and updates its business
library, partners with local entities to disseminate demographic data to clients, utilizes the
University of Texas, San Antonio’s SBDCNet for clients, participates in all ASBDC and ED
surveys, and runs a region-wide small business needs assessment survey.
The Alliance SBDC is fortunate to have a professional research department available as a
service from their host, the Stanislaus County EDC/WIB. This professional staff provides free
research, demographic information, data-bases, customer search assistance, and other
resource development services for small business in the 4-county SBDC service area at no
Bryan Moe, Center Director at CCSBDC researched Green Business Practices and developed a
comprehensive training program for Sustainability: A Guide to Green Business Practices with an
assessment tool to assist small business owners with establishing in-house recycling and
environmentally friendly business practices. Working with UC Merced, the Lead Center, non-
profit and for-profit entities, a network is being developed to offer these services in the most
efficient and effective manner throughout or fifteen county Regional Network. This will be a
valuable tool that will be implemented in the network. The Lead Center is applying for a
Portability Grant and this Sustainability Guide is being proposed as a resource.
1100 Other Activity
In November 2009, the CSUMB SBDC Counseling Team began a "Smile & Dial" campaign to
make phone calls to former clients of the Hartnell SBDC in order to introduce the new CSUMB
SBDC and to assist any potential clients with their needs. 326 former contacts are recorded in
the Hartnell SBDC webCATS list. The interim director was able to bring back in a few clients for
consulting services, but not as many as we had hoped. Plans are to revisit this idea in 2010
and to focus on actual client lists in WebCATS.
1200 Success Stories
Bishops, Merced, CA
Marshall Bishop, a native of the Merced area lived in San Francisco and received a Culinary
Arts Degree from Le Cordon Bleu California Culinary Academy. After thirteen years of
experience, he returned to Merced to open his own fine dining establishment. It was during this
venture that Marshall realized that cooking in San Francisco is quite different from cooking for
customers in the Central Valley.
Marshall relocated his business from the more upscale north side of Merced to the downtown
area because of the high rent and difficult traffic pattern of his previous location. In addition, the
downtown location provided more space for expansion. Six months after relocating there were
unexpected delays and demands of the building department, plus a fire at the restaurant that
caused additional expenses and delays. Marshall has been meeting with the SBDC Director,
William Andersen, since 2008 on an ongoing basis to discuss business issues and specifically
how to increase revenue.
Marshall has invested over $300,000 in the business to include equipment, furniture, fixtures
and remodeling work as well as many dollars training new employees. In less than two years,
Bishop’s on the Square has increased sales to a monthly gross earnings averaging $40,000.
Marshall has also trained over 50 employees, from dish washers to sous chefs. He currently
employs 15 people on a part time and full time basis. Marshall has developed without a doubt
one of the best restaurants in the central valley and is a real treasure to the community.
Mariposa Brewery, Mariposa , CA
Steve Lach has over 30 years of entrepreneurial history some of which includes working with
the redevelopment team for the reopening of the Seagram Rum Company on the Island of Maui
Hawaii from 1980 to l983. In addition, Steve and his wife Susan developed and distributed their
own line of salad dressings from the Islands.
Steve returned to the mainland in 2007 where Steve and his wife Susan found property in the
gold country in Mariposa, CA and decided to purchase the land to build an upscale rental
property. It wasn’t long before Steve decided to open a new business in Mariposa. Because of
Steve’s history and experience in the distilled beverage business, and the presence of mountain
spring water and locally grown hops, Steve and Susan set out to create the finest brewery in
California’s gold country.
Steve opened Mariposa Brewery in December of 2008 with a small loan guaranteed by the
SBA, some family and friend investors and a lot of sweat equity in addition to help from the local
community. The business was an instant success so much so that Steve has been barely able
to keep up with the request for his barley products.
Steve has had an increase in sales in the last 90 days of over $12,000 per month and is now
looking to increase sales even more by packaging his products in an environmentally friendly
aluminum cans. This will require additional investment to be able to purchase the added
equipment needed for the production and distribution of the new packaging. With new
production in place, Steve expects to increase his annual sales to over $2.0 million.
For the last 7 months the SBDC has been working very closely with Steve to realign his
company and departmentalize the operation. This has proven to be most beneficial in that Steve
now can more closely monitor the profits generated by product lines. This also provides a clear
vision of the expectation of one line over the other and allows him to raise venture capital
At this time, with the help of the Alliance SBDC in Merced, Steve is almost ready to launch the
second phase of the business development strategy. We are assisting in the upgrading of the
business plan as well as cash flow projections and developing a new investor opportunity
package. The SBDC has been working closely with Steve to raise the necessary capital. With
guidance and direction from the SBDC and his excellent product Steve is well on the way to
continued growth and success.
Central California SBDC
The BookLady, Visalia, CA
In 2008 Donna Webb was laid off from a national bookstore and decided she wanted to start her
own home based online business selling books. And the result was The BookLady. As a sales
account manager at a major national bookstore, Donna managed a territory of nine California
stores. These years of experience provided her with the knowledge and skills to become a
small business owner and an independent book sales consultant.
Donna came to our center seeking start up assistance and pursuing small business certification
from the State of California. This move would allow her to target state and local government
agencies, providing a high potential for rapid business expansion. After careful planning and
with support from the SBDC, Donna successfully launched her new business, The BookLady in
Donna received her State of California small business certification in October 2008. Her first
two sales were to Modesto City School and Tulare County Office of Education. Since then, her
sales have risen steadily and she has procured contracts from the Tulare, Visalia, Lindsay, and
Modesto Unified School Districts, ten State prisons, the State Water Quality Control Board, and
many more. Most recently, Donna obtained her federal contractor certification and she recently
obtained a $10,000 contract with the Oklahoma National Guard providing library service for
Guard members and families dealing with the stress and anxiety of families in the military.
Throughout the process of starting her business, Donna frequently visited the SBDC for advice
and guidance on various other topics, such as financing, marketing assistance, and networking
opportunities. In July 2009, The BookLady was able to report remarkable sales and a healthy
net profit for the first year in business.
On a recent follow-up conversation with Donna, she stated, “The help I received from [SBDC
business counselor] Gil [Jaramillo] and the SBDC has been invaluable in building my business.
No question or concern was left unaddressed. I would highly recommend to anyone who is
interested in starting their own business to start with SBDC first.”
Budget constraints limited the number of personnel attending the ASBDC conference in
September. There were five attending conference along with the Lead Center Director. The
Lead Center Director had three out of state business meetings: San Francisco, Sacramento and
LA. These meetings were in conjunction with the other 5 CA Regional Directors to discuss
improving and aligning the CA SBDC Regional programs. The LA meetings were with the
Regional’s, key stakeholders and SBA.
Gil Jaramillo, Center Director for the Tulare Kings SBDC Office in Visalia attended the Hispanic
Convention in San Diego. The Finance and Thrift Company sponsored this trip.
Where there are problems, there are opportunities but those opportunities are going to take
longer in this economy. In a February 2, 2010 Wall Street Journal article titled, California
Growth Zigs, Zags, the reporter indicated that the San Francisco Bay area and the coastal
regions are beginning to rally with inland areas continuing to sink. “But in the state’s Central
Valley region… where the downturn struck earlier and harder, unemployment rates are still
rising and the battered construction industry keeps shedding workers.” “California has become
increasingly divided between coastal and inland areas,” said Hans Johnson, associate director
at the Public Policy Institute of California, a San Francisco think tank.”i
The problem: a lack of state funds in Central California. The Regional Directors are working
hard to secure State funding for the SBDC program. The opportunity is a renewed and stronger
effort to work with California legislators and key staffers regarding the how the SBDC program
can help improve the California economy. It is very unfortunate that previous leadership at the
Community College Chancellor’s office has positioned the SBDC program in a negative vein.
We are working hard to overcome these false assumptions with the goal of eventually gaining
more state funding through other state agencies to service all of California and not just a few
centers. Central California does not receive any state funding and we are the only region that is
in this situation. Until this occurs, the Center Directors are spending an inordinate amount of
time securing funds that reduces program and client work.
A problem has been identifying new hosts in three sections in Central California. The reasons
for the delay: (1) the drastic condition in the California economy; (2) continuous political games
in three regions; (3) establishing new relationships with new leadership at the Lead Office.
Fortunately, we are overcoming these issues and establishing new centers but the whole
process is taking longer than anticipated.
Where we do have a new center at CSUMB, there were unexpected facility expenditures and
logistical issues that surfaced. Necessary and unplanned facility improvements included carpet
installation; electrical outlet modifications and heating system plus the movers failed to bring
proper tools and were not able to assemble the three desks. Nevertheless, the SBDC was able
to hire a local “handyman” to assemble the furniture, unpack and sort all the equipment, boxes
and supplies and arranged everything for convenient layout just in time for the Center’s
successful grand opening on November 30, 2009. By year end, the office was fully functioning
with phones and DSL capabilities.
The Regional office does not currently have adequate financial and people resources to provide
additional high levels of professional development training, WebCats training, or program
marketing to support the SBDC’s operating in the 15 county service area. Grants were written
and continue to be sent to acquire funding to provide Spanish speaking consultants to serve the
rapidly expanding Hispanic business population in Central California.
1500 Financial Reports
See Attachment A for financial reports.
1600 Women-owned Businesses
Every sub-center either partners and/or works with women-based chambers and organizations.
In 2009, we consulted 296 or 23% women-owned businesses. It is interesting to recognize a
continuing increase in the male/female business owner partnership representing 42% or 533
The Alliance SBDC has a booth, speaker, and promotes the local Women’s Business Expo held
in Oct each year in Stanislaus County. The CCSBDC began a partnership with Fresno County
Women’s Chamber of Commerce to offer women focused business trainings.
In December, Dr. Marylou Shockley and Andrea Nield met with Tobi Marcus, Director, Women's
Fund of Monterey County and their Board member Wendy Elliott to explore ways the CSUMB
SBDC and the Women's Fund might work together towards improving the economic status of
Monterey County women. In addition to offering technical assistance services to support their
microenterprise loan program, the SBDC and the Women's Fund felt it important to begin a
dialogue in the community about ways service providers can better leverage resources and
achieve better results in helping women entrepreneurs.
1700 Economic Impact
See Section C for FY2009 Economic Impact reported by the UCM SBDC Regional
1800 Veterans, Service Connected-Disabled Veteran-Owned Businesses Reservists on
Active Duty and Other Component Members of the US Military
The region continues to proudly serve our nation’s veterans and provide the same high quality
assistance as other clients. During CY2009, the Network served 118 veterans which is a steady
9% of our client base in the last two years for one-on-one consulting.
A new Procurement Assistance Program is in the development stage at The Alliance to be
launched in early 2010 that will dramatically improve the level of expertise and assistance
provided to Veterans clients in the area of securing State and Federal government contracts.
At the CCSBDC Visalia Satellite staff continues to offer business seminars and individual
consulting to active military personnel and those stationed at the Lemoore Naval Air Station
planning to exit the military. The CCSBDC actively works with Caltrans to assist disabled
veterans in receiving Caltrans Awards.
The CSUMB SBDC has made several attempts to connect with the military community through
press releases and Twitter postings. This is an area of high potential development in SBDC
services as the region has a wealth of veteran and military organizations and resources. The
CSUMB campus itself is a national example of successful defense transition activity resulting
from the closure of Ft. Ord military base.
The central Valley manufacturing clusters center around agriculture, food processing and
transportation. The Alliance received a $450,000 grant in WIA funding to offer a Stanislaus
County-wide “Lay-off Aversion” program in 2010. The Alliance SBDC Director and Admin will be
overseeing the operations of that program by dedicating 10% of their time in 2010. Much of the
focus of this program will be to assist manufacturing companies with 5-50 employees.
CCSBDC continues to develop relationships with local manufacturing organizations and
companies. Research manufacturers’ needs and develop appropriate assistance programs with
partners. We continue to work with EDC-based clusters on manufacturing through the BEAR
Action Network with over 25 referrals per month.
2000 On-line Activity
All of the center locations along with the lead center are actively improving an on-line presence.
Centers are upgrading their websites along with keeping the content current. In addition, all
center locations are effectively registering about 98%of all training participants, plus on-line
activity for needs assessment and client satisfaction surveys. All consultants are encouraged to
use e-mail with their clients to exchange work-in-progress such as financial projections,
business plans, and marketing strategies in order to save clients time and fuel costs.
The Lead Center website was upgraded working with the Lead Office staff and UC Merced web
designers. We are now able to edit and provide content information from our office rather than
out-sourcing this work which saves us time and money. In addition, the Regional SBDC website
has an online workshop pay capability that was first used for the SBIR/STTR training.
At the Alliance SBDC, four high-level 2-hr seminars were video-taped and are currently being
edited down to 45-60 minute length for production of DVD’s and use on the SBDC website.
If the quality of the taped 2009 seminars proves adequate, they will continue in 2010 to record
3-4 different seminars for distribution as DVD’s to rural business owners and shortened versions
will be streamed from the SBDC website.
Our region has an excellent working relationship with Constant Contact with CSUMB SBDC and
the Oct. 20 Constant Contact workshops; "Getting Started with Constant Contact" and "The
Power of Email Marketing." The most of the Centers use the Constant Contact software system
in addition to WebCATS to keep its clientele informed and engaged.
All of the center locations have current websites and at CSUMB work is in progress to take the
previously developed SBDC website (by Cuesta SBDC) and tailor it to publish information
specific to the CSUMB SBDC.
It is interesting to observe the Twitter activity at the CSUMB SBDC which regularly posts to a
Twitter account, EyeOnBusiness which has about 890 followers at year end 2009. These posts
expand awareness of the SBDC services and resulted in over 200 hits to the “Request for
Service” application website – see http://bit.ly/SBDCadvice. Social media, a fairly new
phenomenon, is increasingly used by small business community to connect with customers,
gather market feedback and information as well as to promote and market products and
services. The CSUMB SBDC is building a stable following and endeavors to measure the
successes with actual increase in client activity that is expected to result over time.
The CSUMB Foundation issued a job bulletin on its website for the CSUMB SBDC Associate
Director position mid December of 2009 with applications due January 8, 2010. It is anticipated
that the permanent selection process will be completed by February of 2010.
The new website at CCSBD includes interactive tools and information about the SBDC services
and programs. Additionally, all workshops and seminars are listed on the web site. Clients can
access Request for Services forms via the webpage. The new web site is considerably more
interactive with on-line consulting, instant messaging and the beginnings of a knowledge based
systems for developing business related resources.
WSJ, Cari Tuna. “California Growth Zigs, Zags. Economy is Starting to Recover on the Coast, but Inland Areas Remain in a
Rut,” February 2, 2010.