American Recovery & Reinvestment Act of 2009 Broadband Initiative Public Meeting March 24, 2009 Washington, DC Public Meeting March 24, 2009 Washington, DC

Community Economic Development

BROADBAND STIMULUS AND ECONOMIC DEVELOPMENT: AN ENABLING ROLE FOR SOCIALLY AND ECONOMICALLY DISADVANTAGED SMALL BUSINESS CONCERNS (SDBs) Ronald Johnson, MMTC Policy Committee Member, Managing Partner, Solutions4change LLC The BTOP Statutory Requirements for SDB: 8(a) Consideration - see ARRA-Sec.6001(h)(3) Purposes of SBA 8(a) Program: develop small disadvantaged businesses, create jobs, economic growth Benefits of 8(a) Program for Broadband Deployment and Economic Growth: A key enabler –Encourages partnerships and teaming arrangements with large entities –Firms have access to underserved and unserved communities and supporting entities –Narrows the digital divide among telecom companies and assists with removing “barriers to entry” –Expands the capacity of the telecom industry to meet its growing capital expenditure requirements Advantages of 8(a) Companies to Grant and Loan Applicants –Already certified by the SBA as to business status, experience, finances, eligibility for government contracts –Experienced with federal procurement regulations, with a history of meeting stringent federal guidelines –Provide a logical link to target communities of applicants, and augment existing local relationships –Support network of agencies including OSDBU and DOC’s Minority Business Development Agency (MBDA) Impact on Job Creation in Unserved and Underserved Areas –Promote the hiring of minority groups which have a higher unemployment rate in these areas –Stimulate the creation of job training programs to raise employment and job sustainability levels –Create a sense of community ownership as build-out occurs; increase use of broadband products/services

NATIONAL ASSOCIATION OF DEVELOPMENT ORGANIZATIONS USDA-NTIA Broadband Event  Broadband is an essential building block for regional economic competitiveness in small urban and rural areas  NADO supports the ARRA provision targeting projects to distressed areas, including regions served by multi-county EDA Economic Development Districts  Programs should fund diverse group of stakeholders, including public entities

NATIONAL ASSOCIATION OF DEVELOPMENT ORGANIZATIONS

American Recovery & Reinvestment Act of 2009 Broadband Initiative Public Meeting March 24, 2009 Washington, DC Public Meeting March 24, 2009 Washington, DC