SBDC funding uncertain

BOULDER — The controversy over the appointment of the state’s director of the Small Business Development Center program might be much ado about nothing.

Gov. Bill Owens named Mary Madison as associate director of the state SBDC program in January. But Madison’s appointment worried some development-center heads because of a national requirement stating that the director of the development centers should be a career nonpolitical employee.

“That’s to maintain some consistency of leadership in the operation of the SBDCs,” explained Johnnie Albertson, associate administrator of the U.S. Small Business Administration in Washington, D.C. The SBA oversees the SBDCs and helps fund the state’s centers. Colorado has about 20 development centers that serve different areas of the state.

Earlier this year, Albertson said she would not fully fund Colorado’s SBDC program until the state and the SBA could agree on whether the director could be a political appointee. But now Albertson is reconsidering that rule.

“We generally left it up to the state as to who they wanted to operate the program,” Albertson says. “It is in our federal regulations that it should be a career employee, but I haven’t insisted that this job description is implemented on a hard-and-fast basis.”

One who eagerly awaits word about funding is Mary Fischer, director of Larimer County’s SBDC. “It’s up in the air. We have no idea,” Fischer said. “Some directors are probably worried, some aren’t. As far as I understand, the decision will be made in June when we come up for recertification. It all depends on whether we meet their criteria.”

Ron Anderson, director of the SBDC for Weld County, said, “It’s my understanding that with the funding issue, we’re still waiting for continuation of funding beyond June 30. I think as far as SBDC directors are concerned, we don’t have much input into this process right now. We’ve given our lead center the information they need from individual centers for the most part. I think it’s something where all we can do is wait and see what happens.”

Still, Madison maintains her appointment is a nonissue. The requirement that the director be a career employee has been on the books since the early 1980s, and that didn’t stop former Gov. Roy Romer from appointing other people to the same job, she said. Madison also has the backing of the district SBA office in Denver, which approved of her appointment.

Albertson said she would decide funding based on the recommendation of the district office, and so far, Madison says that Colorado will get funding. Her boss, Pierre Jimenez, deputy director of the state Office of Economic Development, said that the state already has received the check to cover the state development centers for the rest of the year.

But what the SBA gives, it can take away.

Marsha Summerlin, project manager for the Small Business Development Center program, said it’s too early to say whether the state’s SBDCs will be funded for the rest of the year.

“That decision will be made in June,” she said. Madison is more optimistic.

“There’s no such thing as a grant without any authority or control for changing it,” she conceded. “But I have no expectation that that’s going to happen. We have a fully executed notice of award, and we are moving forward with the programs as we have been all months previous to this.”

The Larimer and Weld county SBDC offices offer classes in business planning and how to start a business. The center and its volunteers also provide information and counseling for business owners who need help getting loans or are deciding whether they should close their doors.

“I believe in entrepreneurship,” Anderson said. “It’s small businesses that actually provide fuel for growth in this community. Most people are employed by small businesses.”

“I’ve been a small-business owner. I feel that if I’d taken advantage of these services — or if I’d known they were available — it would have saved a lot of pain and heartache,” added Fischer, who hopes to help small-business owners avoid the hardships she encountered throughout her career as a business owner and entrepreneur. “I think it’s a wonderful service. I have a training education background — it’s a perfect fit for me. I want to help people have a better time than I did.”

As far as the future of the SBDC program is concerned, Fischer remains hopeful: “I’ve got my fingers crossed,” she said. “I think it’s a wonderful service. I would hate to see it go away. I’m not updating my resume.”

Claudia HibbertBedan is a staff writer for The Boulder County Business Report, a sister publication. Dan Feiveson contributed to this report.

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