Economy & Economic Development  November 1, 2013

Region’s new SBA chief faced crises from Day 1

Matt Varilek was appointed director for Region VIII of the Small Business Administration in May. The region includes Colorado, Wyoming, South Dakota, North Dakota, Utah and Montana.

Varilek, 38, a marathon hopeful and father of two, moved his family to Colorado from South Dakota as a wave of epic flooding hit in mid-September. Within days, the federal government would shut down, and within weeks the federal health insurance exchanges were set to open.

Varilek previously served as economic development director for U.S. Sen. Tim Johnson, D-S.D., dealing with legislative issues related to small businesses, finances, investments and disaster response. In that job Varilek gained familiarity with the SBA, which he said made for a smooth transition to the SBA regional director role.

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The Business Report sat down with Varilek to see how the early, tumultuous days of his tenure have gone.

Question: You were appointed to regional director during a dynamic time in Colorado and the nation. How have you responded to events such as health-insurance reform, the flood and the government shutdown?

Answer: There area always challenges. It comes with the territory. I’m thrilled with the opportunity to work for the SBA.

Q: What makes Colorado unique from the other states in Region VIII?

A: Colorado is a growing niche in technology and technology-based business. There is a high growth potential. Colorado makes up about half the population of Region VIII and one-half of the businesses. It comes down to the market served and the market strategies that make a business successful. That’s why we have folks to help connect them.

Q: Why is the SBA important to businesses and entrepreneurs?

A: We work with entrepreneurs who pour their heart and soul into a business as well as with more established business owners. We work based on the three Cs: capital, counseling, and contracting. Capital reflects SBA loans. Counseling is services we provide such as webinars, in-person sessions and Small Business Development Center services. Contracting refers to connecting businesses with federal and state programs and businesses or helping businesses become suppliers.

Q: Are loan trends in Colorado up or down? What are the contributors?

A: Since 2011, we’ve had three very significant years of growth. I believe that is in part because our programs are being widely used by banks and businesses. We’re no longer in a recession; we’re in a recovery, so the economic impact plays a part as well. We also have very effective partnerships with banks, CDCs and credit unions. We need them and good businesses to succeed.

Q: How do loan amounts for the 2013 fiscal year compare with those of 2012?

A: SBA loans are up 11.5 percent from the 2012 fiscal year. We issued 1,364 loans in the 2013 fiscal year that totaled more than $495 million. We are past the worst of the recession and progress is reflected by economic indicators and our numbers. We will keep on pressing forward to accelerate growth.

Q: What has the SBA been doing to assist businesses in response to health-insurance reform?

A: Since it was initiated Oct. 1, there have been challenges in the marketplace. We are focused on the small-business side. We’ve been providing webinars and information so folks can make informed decisions. We’re aware of the controversial process and wide range of opinions. But it’s the law of the land now and people and businesses need to understand it regardless of opinion.

Q: Since the government shutdown, we understand there is a significant backlog in processing loan requests that were made during that time. Do you have a prediction as to when processing will be complete?

A: More than 700 startup loans were filed during the government shutdown totaling more than $140 million in loan requests. This is a top priority now that we’re allowed to be back and working. We know it’s had a big impact on people. As for a prediction of how long they will be backlogged, I can’t really touch on that. Making predictions is dangerous. We’re doing what we can.

Q: What’s one of your SBA goals for the future?

A: Since I came on board, I’ve found out there are a lot of people who didn’t know we exist or what we do. We try to get the word out to business owners who can benefit from business services, or other businesses. That’s one of the main areas I’m focusing on: reaching out to people so they know who we are.

Matt Varilek was appointed director for Region VIII of the Small Business Administration in May. The region includes Colorado, Wyoming, South Dakota, North Dakota, Utah and Montana.

Varilek, 38, a marathon hopeful and father of two, moved his family to Colorado from South Dakota as a wave of epic flooding hit in mid-September. Within days, the federal government would shut down, and within weeks the federal health insurance exchanges were set to open.

Varilek previously served as economic development director for U.S. Sen. Tim Johnson, D-S.D., dealing with legislative issues related to small businesses, finances, investments and disaster response. In that job…

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