1. Presentation to CSU Chancellor’s Office March 15, 2010 The California SBDC Program, An Economic Development Engine within CSU

2. Impetus for this Meeting  Growing number of SBDCs hosted by individual CSU campuses  Increases in Federal funding  Decreases in State funding  SBDCs in the place to make strategic investments into statewide partnerships

3. Meeting Objectives  Provide an overview of CA SBDC Program, including current CSU/SBDC relationships  Present the concept and benefits of a statewide SBDC/CSU partnership  Identify appropriate next steps

4. What is the SBDC?  Small Business Development Center  Free consulting and training to emerging and existing small businesses.  The primary business education program funded by the Small Business Administration  In California, assistance to over 57,000 business owners and entrepreneurs annually.

5. CA SBDC Structure  6 Lead Centers Including  Humboldt State, Chico State, Cal State Fullerton  30 Service Centers Including  CSU Monterey Bay, CSU Bakersfield, Fresno State  Services in over 100 CA Communities  Statewide Leadership Council, Rotating Chair

6. Primary Services  In-depth business consulting/coaching  Non-credit educational workshops  Major training events  Business Topics Commercialization and intellectual property Equity finance and loan packaging Writing/reviewing business plans International sourcing/sales Technology Adoption Green and energy efficient business practices Government Procurement

7. Primary Clients  Business owners with 1-200 employees  Any stage of business: startup to succession planning  Wide variety of industries  Over 55% ethnic minorities  Over 12% veterans / service-disabled veterans  Approx 40% (guess) have not completed their 4-year undergraduate degree

8. Economic Impact of the CA SBDC  2009 Statewide Results: $118 million in incremental sales 2,756 new jobs 2,398 retained jobs $125 million in equity capital infusion 639 new enterprises started  Return on Investment: $1.77 in annual tax revenue for every $1.00 in program funding $4.10 in capital raised from external sources for every $1.00 in program funding

9. CA SBDC Funding  Total Cash Funding:$21 million Federal funding: $12 million Cash Match funding: $ 9 million  In-Kind Match:$ 3 million  Annual Budget:$24 million  Current opportunity: As much as $5 million in unmatched Federal funding

10. SBDC Benefits to an Individual Campus  Many opportunities for student internships  Class projects, guest lecturers  Faculty research projects, curriculum development  Online and extended education opportunities  Connection to local business community  Commercialization assistance

11. Benefits to an Individual Campus  Increased competitiveness for economic development grants; access to SBDCs-only grants  Student business plan competitions  New donors and corporate partners  Broad community exposure  Continual “good news” for Administration

12. Benefits of a CSU/SBDC Partnership  Preference for local SBDC hosting as territories come open (see benefits to a local campus)  Exposure in variety of high-profile events, speaking opportunities; platform and vehicle to enhance CSU’s connections to California economic development activities  Sharing in the concrete economic impact “good news” produced by the SBDC– helpful for Administration, in assorted grant writing endeavors, etc.

13. Benefits of a CSU/SBDC Partnership (continued)  Ability to leverage the SBDC infrastructure and outreach engine: easy transfer of information to/from 100+ communities and a database of several hundred thousand small businesses  Inclusion of CSU in other SBDC partnerships California Innovation-Hubs Efficient Building Systems Regional Innovation Cluster Initiative  CSU-Exclusive SBDC Grants to existing CSU business development programs

14. Benefits of a CSU/SBDC Partnership (continued)  Encourage collaboration across campuses between business and economic development focused programs, institutes and centers  Partner with the CSU on industry-specific programs and projects: provide a non-credit element in coordination with for-credit workforce development  Increase federal and state economic development focused funding flowing to the CSU

15. What SBDC is asking for…  A signed MOU that speaks to the statewide collaboration we would be engaging in.  A point of contact for the SBDC at the Chancellor’s Office who could help make connections at local campuses.  Quarterly meetings with individuals from the Chancellor’s Office to highlight accomplishments and discuss additional opportunities.  An ability to state that the CA SBDC and the CSU Chancellor’s Office are engaged in a partnership.

16. Questions?