Study Finds That $220M SBA Program Can End Without Impact on Business


July 7, 2013

Charles Blankenship

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A recent study from the Applied Government Studies Center found that the Small Business Administration’s Small Business Development Center program could be terminated without impact on the economy and save federal and state tax payers more than $220,000,000 annually.

According to the report the SBDC program provides government funded subsidies to colleges and universities to supply free counseling to small business owners.

Charles Blankenship, the report’s author, said “the SBDC program duplicates other sources of free small business counseling that receive no federal subsidy such as SCORE, local economic development agencies and chambers of commerce”. “Also an almost uncountable list of other government funded business assistance will still be available if the SBDC programs ends”, Blankenship added.

The report recommends changing the grant payment structure to be based on meaningful economic impact, such as job creation, rather than the current emphasis on counseling hours if the program is not terminated.

A copy of the report “U.S. Small Business Development Center Program: A Critical Critique” can be found at the Applied Government Studies Center web site