New York State Small Business Development Center

Transcription

1 New York State Small Business Development Center 2002 PROGRAM REPORT

2 Cover: Farmingdale SBDC Senior Business Adviser John Narciso (center), with Maureen and Mike Tarascio, owners of Air East Airways, Inc., on Long Island. When East Coast air traffic was grounded as a result of 9/11, Air East lost business and revenue. The SBDC helped the company get back on its feet with an emergency loan from the SBA. To learn more about SBDC business assistance, read Air East s success story on page 14, and the success stories throughout this report. THE NEW YORK STAT E SMALL BUSINESS DEVELOPMENT CENTER TH E STAT E UN I V E R S I TY o f NEW YO R K Written by D. Michael Ross Design by David Schillinger The State University of New York Office of Design & Printing This publication is based upon work supported by the US Small Business Administration (SBA) under cooperative agreement number Z The support given by the SBA through such funding does not constitute an express or implied endorsement of the participants opinions, products, or services. A Partnership Program with the SBA, administered by The State University of New York

3 Message from the Governor Governor George E. Pataki Dear Friends: Over a year has passed since the 9/11 tragedies occurred in Lower Manhattan. Although the terrorist attacks impacted all Americans, New York s cost in human terms was staggering. New Yorkers have demonstrated in these ensuing months our indomitable spirit, courage, and ingenuity. The rebuilding process is accelerating and we have emerged a stronger, more dedicated and determined people. The New York State Small Business Development Center (SBDC), funded by the U.S. Small Business Administration and the State of New York, and administered by the State University of New York, has played an important role in helping small businesses in New York City get back on their feet, and assisting small businesses across New York that indirectly suffered as a result of the disaster. Recently, in recognition of these disaster recovery efforts, the National Association of Management and Technical Assistance Centers honored the New York SBDC with their 2002 Outstanding Project of the Year Award. Small business is the backbone of New York s economy. New York small businesses invest in their communities, create jobs, hire local workers, and contribute to the fabric of our society. The SBDC helps leverage scarce venture resources with public and private funding to finance entrepreneurs and help them realize their dream of self-employment. The SBDC has helped over 192,000 New Yorkers with their small business dream. These entrepreneurs and small business owners have invested over $2 billion in New York s small business economy, and created or saved almost 92,000 jobs. As New York enters a challenging era, brought on in part by the terrorist attacks and a national recession, small businesses will be a critically important source of economic stability and growth. I join with the thousands of New Yorkers helped by the SBDC staff statewide in recognizing their award-winning program and ongoing efforts to build with all of us a better and stronger future for New York. Gove r n o r, New Yo rk St a t e SBDC 2002 PROGRAM REPORT 1

4 Chancellor Robert L. King Message from the Chancellor The State University of New York among the largest and finest systems of public higher education in the United States prides itself on its record of service to New York and its ability to respond quickly to the changing needs and priorities of this dynamic state. SUNY s mission is to provide the citizens of New York with outstanding educational opportunities, as well as world-class faculty research, and public service that allow our communities to prosper and grow. An important part of that public service mission is the Small Business Development Center, a network of 23 regional centers located on SUNY campuses, and the campuses of SUNY s educational partners, where New Yorkers can find the assistance and support they need to launch a business. Many thousands of New York s small businesses were impacted directly and indirectly by the terrible events of September 11, SBDC business advisers provided immediate assistance and continue to provide support for small business owners impacted by the attack. SBDC staff and volunteers, from SUNY, CUNY, and our partner higher education hosts, are committed to work with the thousands of small businesses that are so critically important to the economy of our state. By responding to the needs of our small business community, whether that means locating multiple sources of funding banks, local economic development agencies, private equity or marketing a new product domestically or worldwide, or just helping an existing small business survive these difficult times, SUNY and the SBDC are committed to contributing in a major way to the growth of the state and regional economies of New York. We are extremely proud of the work of the SBDC. Provost Peter D. Salins Message from the Provo s t The State University of New York is consistently working to strengthen its long-standing partnership with the business community of New York State. Our commitment is highlighted not only by academic programs designed to meet state labor needs and our commitment to serving the communities of New York, but through a challenging and invigorating academic environment that fuels cutting-edge research, and an ever-expanding outreach to business leaders and budding entrepreneurs. The NYS Small Business Development Center is a stellar example of this commitment. I am very proud to have the SBDC administratively housed within the Office of the Provost. Recognizing intellectual capital as a key driver for economic growth, the academic mission of the University and the work of the SBDC are importantly intertwined. The SBDC frequently calls on University faculty to help train small business owners to resolve especially complex or specialized business problems, and students gain practical experience in the workings of business and our complex economy. The professional business advisement staffs at SBDC Regional Centers enrich faculty research and the student experience when they develop technical ideas or processes into viable and successful businesses. This practical partnership between the SBDC, the small business community, and the University contributes to a brighter future for all of us. I want to commend the SBDC for its tremendous work over the past year, helping thousands of businesses deal with the aftermath of September 11th. The dedication of SBDC personnel throughout the state has been an inspiration to us all. C h a n c e l l o r, The State Un i versity of New Yo rk Provo s t, The State Un i versity of New Yo rk PROGRAM REPORT SBDC

5 Extraordinary People Turn Difficult Times into Opportunities ON THE FATEFUL MORNING OF SEPTEMBER 11, 2001, TERRORISTS DESTROYED THE WORLD TRADE CENTER COMPLEX IN LOWER MANHATTAN. IN THE RESULTING COLLAPSE OF THE TOWERS AND SURROUNDING BUILDINGS, THOUSANDS OF LIVES WERE LOST. THE COST IN HUMAN TERMS WAS IMMEASURABLE. The impact on New York businesses especially small businesses was enormous, and the economic toll has been staggering, with estimates of direct small business loss at $1.5 billion. An estimated 14,500 businesses in the direct impact area near the World Trade Center complex were destroyed, damaged, or significantly disrupted. Forty thousand businesses in the NYC metropolitan area sustained economic damage. The lives of all New Yorkers and all Americans were changed permanently. As shock gave way to numbness in the hours and days immediately following the attack, the New York State Small Business Development Center (SBDC) staff formulated a disaster response plan and engaged employees and volunteers throughout the state to provide special assistance for business owners impacted by the event. The catastrophe tested the disaster recovery response capability of the SBDC. Within days, the SBDC appointed a Disaster Response Coordinator, who had grown up in New York and had a thorough knowledge of the city, to facilitate the response efforts. Besides the 11 Downstate Regional SBDC Centers, four temporary centers were established in the metropolitan area to help accommodate the volume of disaster-affected clients in need of recovery services. Senior business advisers from across the State including every Regional Center, volunteered to accept temporary assignment in New York City to enhance staffing levels at existing centers, at temporary service centers, and at the start-up Regional Center at LaGuardia Community College, across the 59th Street Bridge, in Long Island City. Business advisers who spent time downstate providing business recovery assistance found it an emotional and immensely rewarding experience. Advisers worked tirelessly during very long days in the weeks and months following the attacks. At all these locations, experienced SBDC business advisers helped small businesses assess their financial losses and develop a recovery plan; they worked with businesses to evaluate various disaster recovery funding options city, state, and federal and helped them successfully complete required forms. In most instances, SBDC advisers continued to work with business owners after disaster recovery funds we re located. As with the SBDC s non-disaster assistance, there were no charges for these direct counseling services. The disaster response effort inspired several unprecedented events. The US Small Business Administration (SBA) trained SBDC staff to handle Disaster Loan applications the first time in history the SBA had entrusted any organization with this activity. The California SBDC committed $1 million in funds to bolster the SBDC s SBDC 2002 PROGRAM REPORT 3

6 From left, William Higgins, Business Adviser Joe Verbanic Albany Success Story Over the last four years, William Higgins, through hard work, vision, and determination, has developed a line of unique garlic products, including pickled garlic, garlic mayonnaise, garlic biscotti, and garlic relish. And he continues to research and develop new applications for his favorite plant. Higgins s company, Saratoga Garlic, has established a strong market niche, selling to high-end food specialty and health food stores. Four years ago, when he needed professional business assistance, Higgins worked with Joe Verbanic, business adviser at The University at Albany SBDC, to develop a business plan and financial projections, with marketing advice and sourcing of capital. Higgins located $145,625 in funding--$112,000 in bank loans, and $33,625 in owner s equity. Three jobs were created and three were saved, and Higgins continues to work with the SBDC. "I found them to be expert in every important area of business development," says Higgins. "They understand business, and they listen." disaster recovery efforts, and the SBA contributed $400,000 in supplemental funds. Because of federal guidelines, all 58 national programs had to approve the transfer of these special funds, and this was accomplished within three days of notification. The SBDC staff attended numerous meetings with federal, state, and local officials to develop an integrated response to the disaster. The SBDC also joined many consortia of banks and other service providers to ensure a coordinated response. SBDC advisers walked door to door in Chinatown, Little Italy, and other Lower Manhattan neighborhoods to bring services to clients in their place of business. In addition, the SBDC and the New York Business Development Corporation (NYBDC) partnered to promote the World Trade Center Small Business Recovery Fund, Inc. (WTCSBRF), a non-profit entity that has expeditiously provided small working capital loans to impacted small businesses to facilitate economic recovery and bridge the time lag before receipt of other disaster assistance. The WTCSBRF continues to target small businesses that do not qualify for other forms of emergency funding relief. Founding Sponsors of the fund include American Express, Deutsche Bank, and the Principal Financial Group; sponsors contributed at least $250,000 to the Fund. Many other key businesses and organizations joined these leading corporate founders to help New York small businesses rebuild. These included the California Small Business Association, Compaq Computer Corp., FedEx, Intuit Inc., Key Bank, Microsoft Corp., Rhondaworks, and hundreds of small business contributors across the nation. This list includes the Peabody Veterans Memorial High School students from Peabody, Massachusetts. Peabody students raised $2,500 for the loan fund in 2001 and presented the fund with an additional $2,500 from their fundraising efforts in These high school students have traveled to New York City and met individual business owners assisted by their efforts. The fund is being implemented in two phases. Phase I provided immediate access to directly impacted small businesses for up to $5,000 in funding. These funds were interest-free and principal-deferred for the first six months of the three-year term. Fixedrate interest of 3% is charged for the balance of the term and coordinated with other federal, state, and city rebuilding programs. As loan funds have been repaid, they have been made available to other small businesses. Phase I provided approximately 180 micro loans to small business owners affected by the disaster. Phase II of the Fund is being implemented to provide intermediate access for up to $50,000 in funding to directly and indirectly impacted small businesses. These funds are made available in partnership with financial institutions whenever possible, and receive fast track underwriting or credit scoring. The Phase II fund seeks to subsidize participating lenders or participate in loans to achieve a 3.5% interest rate on fund-sponsored loans for a term of up to 7 years. Phase II loans, funded with $2.5 million from Empire State Development Corporation and HUD, started in PROGRAM REPORT SBDC

7 Strategic Partnerships The SBDC s Disaster Re c ove ry Pro g r a m is typical of its 18-year history of re s p o n s i ve business counseling, training, and research services directed at the changing needs and priorities of New York s small businesses. Since its inception in 1984, the expert advisement offered by the New York State SBDC has earned it a ranking as the premier business assistance program in the state. In these 18 years, the SBDC has worked directly with 191,777 businesses, helping them invest over $2 billion in the state s economy. These small businesses have, in turn, created or saved 91,606 jobs. In just the last five years, the SBDC has won 14 national awards for excellence. Key to this record of success are the strategic partnerships the SBDC has formed with the US Small Business Administration, the State of New York, The State University of New York, host campuses, Empire State Development Corporation, New York Small Business Development Corporation, US Department of Labor, the New York State Department of Correctional Services, New York State Department of Labor, the Governor s Office of Regulatory Reform, New York State Department of Taxation and Finance, the IRS, and many other agencies partnerships that help the SBDC consistently deliver the high-quality business counseling services that New York small business owners need. The State University of New York Office of the Provost and Vice Chancellor for Academic Affairs administers the New York State Small Business Development Center. The US Small Business Administration, the State of New York, and partnering Re t a i l Se rv. W h o l. Ma n u. C o n s t. Ag. Ot h e r Business Sectors Economic Impact Millions of Do l l a r s Thousands of Jo b s Program In c e p t i on to September 30, 2002 Total In vestment Im p a c t : $2,039,8 7 0,1 7 9 Total Number of Jo b s : 9 1,6 0 6 In vestment in niche m a rket and specialize d manufacturing continues to grow in New Yo rk. host campuses of the City University of New York as well as private institutions fund the SBDC. Since its inception, the SBDC has strategically grown from four Regional Centers to 23. These SBDC Regional Centers along with 31 networked full-time outreach offices are located around the state, on the campuses of the State University of New York and SUNY s educational partners, including the City University of New York and private universities. An SBDC office is near you (see map on the inside back cover, or on our website, at Wherever you live in New York, you are never more than an hour away from an SBDC office. SBDC Business Advisers tap into one of the most advanced and responsive business information resources in the country. The New York State SBDC Research Network is a statewide clearinghouse of business information and research. The Research Network s information specialists provide SBDC Business Advisers with the latest enterprise-specific information that can help you turn a great idea into a thriving business. SBDC 2002 PROGRAM REPORT 5

8 84 / / / / / / / / / / / / / / / / / / 02 Counseling Statistics Thousands of Clients Thousands of Ho u r s The SBDC focuses on entrepreneurship and small business, while emphasizing manufacturing businesses, technologyoriented firms, and companies in economically distressed areas. Incubator tenants, exporters, and individuals with projects that advance the state s job development and investment priorities are always welcome. The SBDC prioritizes the needs of minorities, women, veterans, and the disabled. The SBDC seeks to develop innovative programs that respond to New York s economic development needs and foster the development of small business in the state. For example, the SBDC, through its network of 23 regional offices, is working with various government agencies and technical assistance organizations to provide regulatory compliance assistance to New York small businesses. Beginning in 2000, the SBDC participated in a pilot program with the US Department of Labor to provide the latest information about federal labor relations issues and specifically small business workplace concerns. Beginning in 2003, the SBDC will work with the Small Business Compliance Alliance to offer IRS workshops to small business owners. Since 2000, the SBDC has been an active member of the NYS Environmental Assistance Network (NYSEAN), whose mission is to expedite small business success while complying with federal and state environmental regulations. The SBDC and the members of NYSEAN reciprocate with informed referrals to help small businesses obtain financial and technical assistance. In addition to these initiatives, the SBDC continues to investigate other ways in which compliance assistance can be provided PROGRAM REPORT SBDC

9 SBDC services and expertise are available to all New Yorkers. We prioritize underserved populations, but work to improve the economic viability of all small businesses. Statewide, of the 19,052 SBDC clients served last year, minority clients comprised 34 percent. Of this number, 52 percent were African-American, 18 percent Hispanic, 17 percent Asian, 5 percent Puerto Rican, 3 percent Native American, and 5 percent of varied minority status. In total, approximately half of SBDC clients were women. Increasingly, small business ownership reflects the diversity of New York s population. The SBDC conducts a post-counseling evaluation survey of clients to find out how it is doing and how it can improve services. Results from Year 2002 surveys indicate that almost all clients are very satisfied with services provided by the SBDC. 95 percent said their inquiries received prompt attention; 83 percent said they could not have afforded private counseling services; 94 percent said they would recommend SBDC services to other small businesses; and 85 percent said they received specific recommendations that improved the bottom line of their businesses. At the heart of every SBDC office are the talented, dedicated Business Advisers who have just one goal in mind: assisting you and your business. SBDC Business Advisers undergo a rigorous professional certification process to continually improve their expertise and sharpen their interactive skills. The ambitious SBDC Business Certification Program has just been augmented by a demanding Advanced Certification Program, which requires at least two years of additional training and experience. Representative of these highly motivated small business experts is Frank Guarino, Senior Business Adviser at City University s Baruch College Midtown Manhattan SBDC. In just the past three years, his dedicated work with clients has made him personally responsible for $18 million in economic impact and 650 jobs. He was a team leader in the special disaster relief effort set up by the Midtown Manhattan SBDC after the terrorist attack of In September of 2002, Guarino was named this year s New York State outstanding SBDC counselor receiving the Star Performer Award from the Association of Small Business Development Centers at its national convention in Nashville. Nationally Recognized Programs The quality of SBDC programs is recognized far beyond the borders of New York. This year, for example, the SBDC won a National Association of Manufacturing and Technical Assistance Center (NAMTAC) Projectof-the-Year Award one of only 13 awarded in the US in recognition of its post-9/11 small business disaster recovery efforts in New York City. NAMTAC is America s oldest small business advocacy organization. In another example, Mohawk Innovative Technology Incorporated (MiTi), a client of the SBDC Regional Center at The University at Albany and its Manufacturing and Defense Development Center, won a prestigious SBA Tibbetts Award one of only three Mike Roy North Country Success Story Mike and Kay Roy, of Heritage Woodworks, in Westville, design, produce, and market the highest-quality kitchen cabinetry. They launched their business in 1998, working out of their garage. Demand for Heritage products grew, and they soon needed to expand. When, in 2001, they had an opportunity to purchase the old Westville Fire Station, they contacted the SBDC at Plattsburgh State University for business assistance. SBDC business advisers helped them develop a business plan and evaluate the feasibility of the project. Earlier this year, Mike and Kay purchased the site with owner financing and a $25,000 micro enterprise loan. The Roys have made extensive renovations to the building to include both production and showroom areas. Committed to their community, they have donated cabinetry to the Make-a-Wish foundation and other charities. As a result of the expansion, the Roys have quadrupled gross revenues and extended their market into Western New York. Five new jobs have been created. They are now looking to double the size of their facility and will rely on the SBDC for business assistance. Says Mike Roy, "The SBDC understands business conditions: regional, statewide, and national. They help you acquire the tools you need to succeed." SBDC 2002 PROGRAM REPORT 7

10 Michael Arnold Binghamton Success Story In November 1998, Michael Arnold first visited the SBDC at Binghamton University, with a dream of opening a quality hardware store in Cortland. Arnold had 27 years experience as general manager for a local housing manufacturer, and he understood the industry. He qualified for the New York State Department of Labor Self- Employment Assistance Program (SEAP) and had begun developing his business plan with the SEAP adviser at the Onondaga SBDC. Using SBA 504 lending programs and SBA 7(a) guarantees, the Binghamton SBDC helped Arnold locate funding to put up a building and stock his business. Near the end of January 2000, Arnold opened his 14,000-square-foot hardware store. Final funding amounted to almost $1.5 million, through programs sponsored by the SBA, New York Business Development Corporation, local banks, and the Cortland Industrial Development Agency. Says Mike Arnold, "Through 15 months of hard work, the SBDC helped me with business planning, locating funding sources, and resolving personnel issues. They provided the long-term assistance I needed to get my business started." companies in New York State to receive the award. SBA presents the Tibbetts Award to outstanding small research and development businesses that are models of excellence in high technology. MiTi is one of the world s leading developers of high-efficiency, oil-free, compliant foil, magnetic hybrid, and auxiliary bearings. A Dynamic Relationship with Host Campuses The New York State SBDC values its dynamic and mutually supportive relationship with host higher education campuses. Each SBDC Regional Center is a symbol of campus commitment to regional economic development and job creation. Regional SBDC Centers work closely with their campus administrations to enhance institutional missions. For example, in situations requiring specialized knowledge, SBDC Business Advisers can call on campus business or technical faculty expertise, student interns, and graduate students to assist clients. At the SUNY Canton College of Technology, for instance, the SBDC has developed a SUNY-accredited, three-credit-hour internship program, as well as an advanced internship program both business electives. The intern assigned to the SBDC obtains valuable practical experience in business start-up that will help him or her compete for a job. The SBDC at SUNY Institute of Technology at Utica/Rome awards prizes to outstanding business students at graduation. These students represent the future innovators and small business owners who will help fuel the economic growth of New York State. The SBDC at Baruch College in midtown Manhattan is located within the college s Field Center for Entrepreneurship and Small Business. MBA students, referred to as Field Fellows, provide technical assistance to the SBDC, read business plans, and conduct small business research. More experienced Field Fellows assist SBDC clients with the development of cash flow and other financial projections. Faculty members, referred to as Field Mentors, conduct training, provide counseling, read business plans, and provide expert business assistance that complements and supplements the assistance provided by SBDC Business Advisers. Incubating New Businesses Campus-based business incubators providing entrepreneurs with a supportive infrastructure and business services at reasonable cost are a proven method for jump-starting new enterprises. Often, ideas generated in research laboratories by faculty and students find practical development in incubators on or near the campus. Many incubator tenants draw on the facilities and brainpower in university research labs. Campuses with both an incubator and an SBDC SUNY Stony Brook, Ulster, and Albany, to name just three can offer incubator tenants the SBDC s unique business consulting expertise. Here are two specific examples. The Town of Riverhead has deeded 50 acres to SUNY Stony Brook for the construction of a new incubator, which specializes in aquaculture, agriculture and environmental industries. The Stony Brook SBDC worked with the Riverhead Industrial Development Agency during the planning stages of the new incubator. Groundbreaking PROGRAM REPORT SBDC

11 occurred in September The new incubator includes an outreach office for an SBDC Business Adviser who provides business counseling to Incubator clients. Business Sectors Economic Impact This newest facility means there are three SUNY Stony Brook incubators that utilize the SBDC: the Long Island High Technology Incubator, the Stony Brook Software Incubator, and the new Riverhead Incubator. Mi l l i o n s of Do l l a r s Hu n d re d s of Jo b s 7 0 The University at Albany s East Campus former site of Sterling- Winthrop pharmaceutical company includes a business incubator that focuses on biotechnology research and development and creating jobs for the region. The Albany SBDC supports the East Campus incubator with a full-time outreach office located in the incubator. The office provides business counseling to tenants, increasing their chances for success. The Mid-Hudson SBDC at Ulster Community College hosts an incubator with a dozen resident businesses. The SBDC occupies offices adjacent to the incubator; SBDC Business Advisers provide counseling to incubator tenants. The Mid-Hudson SBDC has also organized and filled business incubators in the cities of Poughkeepsie and Port Jervis. These municipal incubators have been privatized and are functioning as tax-paying enterprises in their respective communities Fu n d i n g Jo b s Re t a i l Se rv i c e W h o l e. Ma n u f. C o n s t. A g. Ot h e r October 1, September 30, 2002 Total In vestment Im p a c t : $ 282, 15 2, 05 5 Total Number of Jo b s : 1 3, Strategies for the 21st Century SBDC Business Advisers confirm to their clients that planning is key to success. Strategic planning is also critical for the statewide SBDC program. In 1998, the SBDC launched an intense effort to overhaul the structure of its existing Strategic Plan and implement In just the past twe l ve months, SBDC clients invested a l m o s t $300 million to impact over 1 3,000 jobs. SBDC 2002 PROGRAM REPORT 9

12 Joseph Guido Midtown Manhattan Success Story The Foro Marble Company located in Brooklyn and headed by Joseph Guido, a 1950s Army veteran was negatively impacted by the 9/11 terrorist attack on lower Manhattan. With many companies putting plans on hold, Foro s business dropped by one-third. The company needed capital to continue operations and meet payroll for its 22 employees. Guido sought the help of the SBDC at Baruch College, in Midtown Manhattan. SBDC Business Advisers counseled him on application requirements for an SBA Economic Injury Disaster Loan (EIDL), and helped him document his economic injury, quantify the amount of the loan, and complete the SBA loan package. As a direct result, Foro Marble received a $140,100 EIDL, supplemented by a $5,000 World Trade Center Small Business Recovery Fund loan. Twenty-two jobs were saved. If it had not been for this emergency financing, I might have had to declare bankruptcy, says Joseph Guido. The SBDC and SBA helped me save my business. The SBA honored Guido with a Phoenix Award in Washington, D.C. last May. a new planning process. The ongoing process, which involves every constituency SBDC staff, stakeholders, sponsors and partners, clients, and the SBDC Advisory Board focuses on the near future (three years from the present), and is constantly evolving. The Strategic Plan outlines issues relating to program priorities, including one-on-one counseling, training, and small business research. It corresponds to the SBDC s mission to provide the best business advisement and information to small business owners and entrepreneurs in New York. The plan, which translates into action items for creating prosperity for all New York, is a dynamic document designed to respond to economic changes around the State and the nation. The SBDC s Strategic Planning Committee is responsible for maintaining the momentum of the planning process. The committee s goals for the next twelve months are to reorganize and streamline the plan s current structure, and to incorporate new issues identified throughout the state. Shrinking the World, One Small Business at a Time Exporting goods and services to markets overseas represents a major growth opportunity for small businesses in the 21st-century economy. The SBDC s International Business Program focusing on business opportunities for New York companies in China has strategically positioned New York s small- and medium-sized businesses to take advantage of trade opportunities in this largest consumers market in the world. The SBDC has nurtured contacts within government and business circles in China. Today, the NYS/SBDC can provide New York s businesses with: Counseling and assistance with international trade and business project cooperation; Identifying distributors and evaluation of market potential; Advising on changes in relevant policies, tariffs, taxes, and regulations; Coordinating trade shows, shipping services, and financial transactions; Training and education on international trade practices; Organizing and leading trade missions and business delegations to China; Developing exhibition spaces and coordinating trade shows; Coordinating activities of international business delegations to the US. The passage of the TPA (Trade Promotion Authority) by the Congress, and China s accession to the World Trade Organization (WTO), has widened business opportunities for small- and medium-sized businesses. WTO membership helps eliminate many non-tariff barriers to trade and other hurdles that have restricted access to China s markets for many companies. The program is working accordingly on revising existing partnerships and developing new cooperative arrangements with the Chinese to reflect the changes in status and business environment in China so that optimal service will be provided to SBDC clients who are interested or active in international business and trade PROGRAM REPORT SBDC

13 The SBDC has assumed a leading role in opening trade opportunities for New York s small- and medium-sized businesses. By entering into cooperative agreements with the Ministry of Science and Technology of China, and Chinese industrial parks, the SBDC has helped create trade and investment opportunities for more than 50 New York small businesses. In the past seven years, the SBDC has participated in more than 30 delegations that have traveled and conducted business with China. The SBDC International Program, together with regional centers, organized many different types of training, breakfast meetings, and seminars on international practices in doing business and trade. Many SBDC clients involved in international trade or business were invited to attend, gave presentations, and shared their experience with participants. In past years, the program successfully organized at least seven such training exercises involving a great number of clients and participants from different economic sectors. Topics included: international trade and business practices, market analysis, relevant policies, tariffs, taxation, regulations, transportation service, issues of financial transactions, translation services, etc. With the assistance of the program, Hydro-Air Components, Inc., located in Hamburg, New York, has entered into a trade and production agreement in the Tianjin Economic Development Zone. Hydro-Air is developing and manufacturing hydro-heating equipment and products targeted to major Chinese markets, including the market for the 2008 Olympics. This will help Hydro-Air substantially in expanding its domestic manufacturing in Ha m b u r g and grow its New York-based business. On another front, with the US government s efforts for a free trade agreement with countries in Central America, the SBDC s International Business Program is prepared to explore the South and Central American markets starting in This is an important next step in efforts to expand trade and create jobs for New York s small businesses. For more information, consult the SBDC web site, at At the web site, information about the International Business Program can be found under Need help? with information about SBDC s other Specialty Programs. The SBDC/US Department of Labor Crosscut Program For the past two years, the NYS/SBDC and the US Department of Labor (DOL), through the Office of Small Business Programs, have implemented a program to provide information to new and existing small businesses on laws affecting the workplace. Known as the Coordinated Compliance Assistance for Business Pilot, or simply Crosscut, this important alliance helps small businesses comply with laws and regulations administered by US DOL. Crosscut is the result of recommendations by the1995 White House Conference on Small Business, made up of delegates from government and private industry from across the country. Responding to the recommendations, Congress enacted the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA) to improve the regulatory enforcement and compliance environment for small business. Hillary Pyke (right) with Business Adviser Dale Rice Canton Success Story When Hillary Pyke, O.D., a member of the Mohawk Nation, was studying for a degree in optometry, she researched the health care services available in the Mohawk Territory of Akwesasne, in St. Lawrence County. She found that the majority of residents did not have private health insurance, though they were eligible through the Indian Health Service. And quality optical services were not available. She wanted to do something about this. The Akwesasne Office of Economic Development directed her to the SBDC at SUNY Canton, which has a satellite office in the Tribal Building. The SBDC helped Pyke complete a detailed business plan, which became her financing proposal. The business plan was circulated to local banks. When the banks showed no interest, the SBDC contacted New York Business Development Corporation (NYBDC), a private corporation made up of member banks committed to small business. NYBDC partnered with the SBA to secure a $50,000 loan, to which Pyke added $30,000 in personal equity. Mohawk Visions opened in September SBDC Business Adviser Dale Rice provided outstanding business experience and knowledge, says Pyke. SBDC 2002 PROGRAM REPORT 1 1

14 Khalida Khan (left), Rolando Kenny Pace (Manhattan) Success Story For years, Khalida Khan, Rolando Kenny, and Ellen Klapper teamed up in architectural planning and design projects in Manhattan. When it came time to form their own company, and they needed a business plan, they attended a Business Planning Workshop conducted by the SBDC at Pace University. Then they asked Pace SBDC Business Adviser Ruth Wang for help in completing a loan package. The SBDC provided technical assistance in preparing the business proposal, as well as compiling and fine-tuning financial assumptions and projections, and determining capital needs. As a result, the partners were able to obtain a $150,000 SBA-guaranteed loan for working capital from a commercial banking institution, which they combined with $50,000 in personal equity. Group K Associates, Inc., opened its midtown offices in September Services include architectural planning and exterior and interior design, in part for Manhattan s extensive primary and secondary school infrastructure. As it grows, Group K will continue to work with the SBDC. Ruth Wang and the SBDC understand what it takes to get a business started in New York City, say the partners. They have a wealth of experience and knowledge, and they put it to work for you. To implement Crosscut, a full-time US DOL professional was located at the SBDC Central Office to answer questions from the field and conduct training. Crosscut provides direct consultation to small businesses (under 500 employees) on regulatory aspects of the Labor Department, including OSHA, wages and hours, pensions, and benefits. Turning Unemployment Insurance Recipients into Employers The New York State Department of Labor, working in partnership with the SBDC and other state and federal agencies, sponsored the Self-Employment Assistance Program (SEAP), an innovative initiative that responds to the needs of New Yorkers who have lost their jobs as a result of downsizing or competition and are viewed as unlikely to secure comparable employment. SEAP encourages dislocated New Yorkers to re-enter the workforce by helping them start their own businesses, while they are collecting unemployment insurance benefits. The program targets those people most likely to exhaust unemployment insurance before finding comparable employment. They attend workshops that detail the challenges and opportunities of starting a business, and participate in at least 20 hours of entrepreneurial training and one-to-one business advisement to develop their business plan and launch their enterprise. Since the inception of SEAP, over 6,000 enrollees have come to the SBDC for business services. SBDC advisers have successfully helped 77 percent create their own jobs by developing selfemployment opportunities. Program records show that SEAP participants have a far greater likelihood of ending up self-employed than do those collecting unemployment insurance and not participating in the program. SEAP enrollees who have started enterprises further leverage their success by creating, on average, 1.7 new jobs per venture, resulting in a total of over 3,800 new jobs created and saved. It is conservatively estimated that these new employees generate close to $20 million in state tax revenues each year. Finally, an estimated 31 percent of enrollees who start their own businesses earn income exceeding their pre-layoff salaries. Information = Profits The New York SBDC is one of a handful of programs in the national SBDC network to provide business research services for its advisers. The SBDC Research Network, as it is known, is available to staff and members of the statewide Advisory Board or partners. The Research Network was created in 1991 and is staffed by knowledgeable business librarians. Research Network staff utilize an extensive collection of general and business-specific publications, directories, periodicals, government documents, CD ROMs, and Internet-based resources, to help facilitate the exchange of information and ideas among SBDCs, regional SBA offices, and entrepreneurs receiving SBDC services. In the past fiscal year, the Research Network answered just over 2,000 requests for entrepreneur or small business-specific information. Requests are made on behalf of a wide number of business types about one or more of the following: demographic data, sample business plans, trade association or PROGRAM REPORT SBDC

15 publication listings, industry profiles/forecasts, patent or trademark searches, market share analyses, franchise opportunities, financial norms and ratios, government contracts, procurement/bid opportunities, legislative/regulatory information, permit/licensing contacts, trade show listings, company background checks, sources of financing, literature searches, company lists, and others. Here is a sampling: February 28, 2002 In response to a research request from the NYS Legislature, the SBDC Research Network located and provided information about small business in New York State. The request involved statistics on the number of small businesses, minority- and women-owned businesses, and employment trends in the state. March 8, 2002 In response to a request by the Binghamton SBDC on behalf of its local Broome County Public Library, the SBDC Research Network compiled a list of business-related books and publications. The public library had received a grant to create a business reference department, and sought the expertise of a library already in the field. March 19, 2002 In response to a research request from Congress, the SBDC Research Network located and provided information about small business in an individual Congressional District. The Congressperson s staff specifically requested information about the number and types of small businesses in the counties. Pu b l i c $7 4,5 8 2, 90 3 Ot h e r $ 26,7 6 1, 30 7 Pr i va t e $ 18 0, 80 7,845 For centuries, good information has been equated with success. That truth is more pertinent today than ever, and helps explain why business research is a key component of SBDC services. Visit the NYS/SBDC on the Web Advisement for New York s small business owners begins on our web site, at Our site can point you in the right direction to get the help you need for your business. F u n d i n g / I n v e s t m e n t October 1, September 30, 2002 Total In ve s t m e n t : $ 282, 15 2,0 5 5 Ot h e r $1 0,2 2 8,2 0 3 Pr i vate In ve s t o r $ 15,7 8 5,2 5 5 Equity Collateral $1 7, 64 2,515 Equity Cash $ 48, 66 8,0 9 9 C o m m e rcial L e n d e r $8 7,7 4 6,0 9 9 Ve n t u re Capital $7 3 7, S c a rce owner equity is leve raged by public and private funding to bring e n t re p re n e u r s dreams to life. Need to make an appointment? Fill out the Request for Counseling Form. Looking for the SBDC nearest you? Link to the one in your region from our Locations map. Read about successful clients in our Client Gallery. Locate and sign up for training events on topics from business plans to taxes. Continued on page 20 SBDC 2002 PROGRAM REPORT 1 3

16 Senior Business Adviser John Narciso (center), Maureen and Mike Tarascio Farmingdale Success Story Air East Airways, Inc., in Farmingdale owned since 1982 by Mike and Maureen Tarascio is a small, family-run business that operates seven days a week, 365 days a year. Air East specializes in flight train- Senior Business Adviser Bill Everts, Anita Harris ing, airplane chartering, and maintenance from its base at Republic Airport, on Long Island. The Tarascios own two twin-engine aircraft and three Lear jets, as well as 18 flight school aircraft. Through hard Jamestown Success Story work, the company thrived, and in July 2000 moved into a modern Anita Harris wanted to become part of the rebirth of downtown 17,000-square-foot facility, thanks to a $1.3 million SBA 504 loan Jamestown. She worked closely with the SBDC at Jamestown through the Long Island Development Corporation. Community College to make her wish to open a gift and flower shop Then disaster struck. The 9/11 terrorist attack put flight restrictions on all East Coast airports and effectively shut down operations at Republic Airport. Air East began to lose over $50,000 a month in revenue, jeopardizing repayment of the SBA loan and survival of the business. With help from the SBDC at Farmingdale State University, the Tarascios applied for the first SBA Economic Injury Disaster Loan on Long Island, for $300,000 to cover six months lost working capital. When Air East received the first increment of the loan, seven jobs were saved. Meanwhile, the Tarascios and the SBDC worked to raise awareness of the economic impact on small businesses of the flight restrictions. According to Mike and Maureen Tarascio, I m not sure we would have been able to survive without the help of SBDC Regional Director Lucille Wesnofske and Business Adviser John a reality. Unable to purchase an established florist business, she identified a unique building with great potential a few blocks from the new ice arena. Senior SBDC Business Adviser Bill Everts helped her through a number of revisions to her business plan. The plan and related financial projections enabled Harris to obtain a $60,000 line of credit from a local bank. With SBDC help, she leased space in the building for her flower and gift shop, and the owner remodeled the interior and restored the exterior. The new shop had its grand opening in November. To date, Harris has invested a total of $68,700 in the development of the business, and has hired three full-time and four part-time staff. Bill Everts and the Jamestown SBDC are extremely helpful and knowledgeable, says Harris, and they are deeply committed to the economic development of the area. Narciso. They are always ready to go the extra mile PROGRAM REPORT SBDC

17 Michael Garvey, founder of License Monitor, Inc. (center front); with Jerry Kobre, Assistant Director, Lower Hudson SBDC (center rear); with the officers of License Monitor, Inc. Lower Hudson Success Story Business Adviser Jack Chung and Tim Ho La Guardia-Queens Success Story On January 14, 2002, the Sing Tao Daily, a Chinese language newspaper in New York City, ran a story on Tim Ho, owner of Win Hop restaurant, and his difficulties after the 9/11 disaster. His business, like many in Chinatown, had lost clientele after the attack. There s nothing I can do for you, was the response he heard time and again. His application for a $25,000 SBA Economic Injury Disaster Loan (EIDL) was turned down. Bills were piling up. The SBDC at LaGuardia Community College read the story, and asked to meet Ho. By the first week in February, the SBDC had helped him obtain a $5,000 loan from the World Trade Center Small Business Recovery Loan Fund, and file an appeal with the SBA on the EIDL. On March 7, the SBDC received news that the SBA was granting the restaurant s application for a larger loan $70,500. On May 15, Ming Pao, another Chinese language newspaper, carried a story on the loan and how it had saved the restaurant and the jobs of 11 employees. I owe a debt of gratitude to the SBDC, says Ho. They came to my aid when no one else would. In many businesses, conscientious, skillful drivers are necessary to transport and deliver products and services. Michael Garvey, founder of License Monitor Inc. (LMI), has developed a patented software application that provides employers with real-time records of employee driver license activity. Statistics show that drivers with numerous moving violations are three times more likely to get involved in accidents that lead to fatalities or serious injury. Also, close to 75 percent of drivers who have a license suspended or revoked continue to drive. Garvey s license monitor application gives companies a way to mitigate this risk. When Garvey needed help developing a business plan, he went to the Lower Hudson SBDC, at Mercy College, in Dobbs Ferry. The plan identified market potential, set clear strategies for reaching the marketplace, and identified resources needed for implementation. Working with the plan, Garvey raised $500,000 in venture capital and has begun operations. The SBDC has been a great help to my company, says Garvey. I have returned to the SBDC for assistance with expansion strategies and plans for a second round of capital. SBDC 2002 PROGRAM REPORT 1 5

18 SBDC Ph o e 2002 En t re p re n The New Yo rk State SBDC s 2002 Staff Training and Pro f e s s included a special Aw a rds Luncheon at which the 2002 En t re p SBDC Mi n o rity En t r SBDC High Tech Company of the Ye a r From left, NY Assemblywoman Susan John, Entrepreneur of the Year Kim Phillips, Sarah Anderson (from Senator Clinton s office) From left, Mid-Hudson Regional Director Fred Hard Jasmine Felder, Assemblywoman Susan John, Entr of the Year Shirley Felder, SBDC Advisory Board M Loretta Kaminsky From left, Veterans Business Adviser (Buffalo) Joe Giambra, Entrepreneur of the Year Bill Levine, Veterans Business Adviser (Farmingdale) John Narciso, Farmingdale Regional Director Lucille Wesnofske, Veterans Business Adviser Howard Wildove (Albany), Mike Ross, Veterans Program Officer Veteran En t re p reneur of the Ye a r From left, Sonica Chaudhr with son, Willie and Stev SBDC SEAP Client of the Ye a r Canton Regional Director Bert Corey congratulates Entrepreneur of the Year Fred White PROGRAM REPORT SBDC

19 eurs of the Ye a r ional De velopment Conference, held May 8-10 in Ro c h e s t e r, reneurs of the Year we re honored. He re are the award-winners. e p reneur of the Ye a r Please see page 29 for detailed descriptions of award re c i p i e n t s. SBDC Woman En t re p reneur of the Ye a r ing, epreneur ember From left, Regional Director Dave Mallen, Entrepreneur of the Year Susann Everett, Business Adviser Sam Russo nix Aw a rd SBDC Ma n u f a c t u rer of the Ye a r Midtown Manhattan Regional Director y; Phoenix Award Winner Steve Mosto ; SBA District Director Frank Sciortino; e s wife, Anne McGrath, holding Henry From left, Entrepreneur of the Year Patrick Dewey, Business Adviser Cedric Carter, Entrepreneur of the Year Steve Dewey, SBDC Advisory Board Chair Ray Nowicki, SBA Branch Manager Peter Flihan Hispanic En t re p reneur of the Ye a r From left, SBA Project Officer Dan O Connell, SBA District Director Frank Sciortino, Entrepreneur of the Year Hector Guevera, the SBDC s Judy McEvoy SBDC 2002 PROGRAM REPORT 1 7

20 From left, SBDC Business Adviser Cedric Carter, MiTi CEO Hooshang Heshmat, NY Senator Hillary Clinton, CFO Melissa Heshmat MDDC Success Story Mohawk Innovative Technologies (MiTi), in Albany, is one of the world s leading developers of high-efficiency, oil-free, compliant foil, magnetic, hybrid, and auxiliary bearings. Dr. Hooshang Heshmat founded the company in 1994 with four employees; today the firm employs 34, has revenues in excess of $5 million, and contracts with Pratt & Whitney, Boeing, and NASA, among others. The 9/11 terrorist attack interrupted business travel and negatively impacted MiTi. With help from the SBDC s Manufacturing and Defense Development Center (MDDC), MiTi applied for, and received, an SBA Economic Injury Disaster Loan (EIDL) for $275,000. If it hadn t been for the MDDC and the EIDL, says Heshmat, our company would be experiencing major difficulties. In October, MiTi was the recipient of a national SBA Tibbetts Award in Washington, D.C one of only three NY firms honored. Tibbetts Award winners are recognized as models of excellence in high technology research and development. Senior Business Adviser Allyn Hirsch (left) with Robert Savage Stony Brook Success Story Robert Savage, of Jamesport, Long Island, an experienced equestrian and teacher, first came to the SBDC at SUNY Stony Brook in June He had been operating an equestrian training business for around five years, using facilities owned by others. His dream was to build his own equestrian training center. Savage was under contract to purchase an 11.5-acre plot of land on which he planned to erect a barn, house, and a boarding and training facility. He needed a business loan of approximately $300,000 to make his dream a reality. The SBDC at SUNY Stony Brook helped Savage develop his business plan, including financial projections. The SBDC helped the client in his negotiations with a number of local banks. In July 2002, Savage closed on a $350,000 SBA-guaranteed loan from a commercial lender, to which he added $70,000 in owner equity. He contracted with the Amish to build a barn. Winning Ways Farm opened for business early in December. Seventeen horses are being boarded at the facility. The SBDC is expert and experienced in many aspects of business, says Savage. They are committed to your success, and to New York s economic development PROGRAM REPORT SBDC

21 From left, John and Laureen Yackich, Niagara SBDC Associate Director Tom Bruss, and Bob and Bonnie Sanderson. Candlelight Cabinetry received the SBDC Apex Award during the Niagara USA Chamber s Small Business Day Niagara Success Story The SBDC s Bernadette Mroz and Tom Moore (extreme left and extreme right) with Rick Cincotta and Gary McEuen of Midway Metal Forming Onondaga Success Story Rick Cincotta, of Homer, NY, is a client of the Onondaga SBDC and the Department of Labor Self-Employment Assistance Program (SEAP). SEAP allows qualified individuals to start a business while collecting unemployment insurance. Cincotta, who has metalworking experience, wanted to open a machine stamping company producing specialized tooling for other manufacturers. The SBDC assisted him with basic startup information, including recommendations on ownership configuration, insurance, and business plan development. And in addition to working with him to draw up financial projections and cash flows, the SBDC helped develop marketing brochures and other materials. These efforts paid off. Cincotta was successful in locating $100,000 in funding: $68,000 in an SBA-guaranteed loan, $17,000 in direct bank financing, and $15,000 in owner equity. The Midway Metal Forming Company opened in April, generating at least 10 high-paying jobs in the Cortland area, hard hit by layoffs in recent years. SBDC Business Advisers Tom Moore and Bernadette Mroz worked together to get my company launched, said Cincotta. They are dedicated to small business success and economic development in Central New York. Back in 1990, Robert Sanderson, Jr., opened a kitchen and bath cabinet distributorship in Lockport, with the help of the Niagara SBDC. In 1996, the showroom grew from 27,000 square feet to 34,000 square feet. Another 10,000 square feet was added in Sanderson knew that adding a manufacturing capability would increase profits, so he and John Yakich formed Candlelight Cabinetry, Inc. Sanderson provided the financial and distribution expertise; Yakich had manufacturing and operations experience. They also knew that the SBDC was the place to go for assistance. Niagara SBDC Associate Director Tom Bruss who had helped earlier worked with them to prepare a detailed business plan, as well as IDA applications, which were then submitted to local agencies and banks. The result was $2.4 million in new investment, including owner equity, which the partners used to purchase a 107,000-square-foot manufacturing facility. Over 100 jobs will be created over the next three years. Annual sales are approaching $10 million. In May 2002, the Niagara SBDC presented its APEX award to Candlelight Cabinetry for its contribution to the local economy. The SBDC is expert not only in business startup, but in helping grow a mature business to the next level, says John Yakich. SBDC 2002 PROGRAM REPORT 1 9

22 Business Adviser Don Dods with Cindy Fracasse Mid Hudson Success Story While raising four children, Cindy Fracasse of Parksville earned national certification as a health and fitness program provider. She decided she wanted to own and operate a health club. When the Liberty Fitness Center became available, membership at the center was down to 65; maintenance had been deferred. Encouraged by her family, Fracasse was determined to purchase Liberty Fitness Center and turn it into a successful business. With help from the Mid-Hudson SBDC affiliated with Ulster Community College she assembled a successful business plan which in less than six months, garnered $214,500 in funding from The Catskill Watershed Corporation, the Sullivan County Partnership, the Village of Liberty, and owner equity. Today, as a result of aggressive marketing and good management, a refurbished Liberty Fitness Center has 335 memberships, and the number continues to grow. The SBDC has the expertise and knowledge to help you turn a plan into an actuality, says Fracasse. I couldn t have done it without them. Since September 11, we ve devoted pages to Small Business Disaster Assistance with information on federal, state, and commercial help. This section is not only for small businesses below 14th Street in Manhattan; small businesses outside the disaster area may also be eligible for assistance. What else are you looking for? How to secure a loan? Register a corporation? Obtain low-cost health insurance? Our web site answers these questions and more. We invite you to visit us often as we rebuild our site to make the information small business owners need more easily accessible. A recent report predicts that revenues from business-to-business e-commerce in the US will rise from $336 billion to $6.3 trillion by For New York small businesses to be a part of this growth, they must become proficient in e-commerce. The Internet technology that supports e-commerce also helps the SBDC do a better job in serving small business. For instance, the SBDC web site, directs New Yorkers to SBDC services. The SBDC web address links the home pages for SBDC regional centers across the state by hosting all web sites on a single server. This facilitates the speedy exchange of services and information and helps SBDC advisers serve small business clients more efficiently. More specifically, if a Spanish-speaking client seeks assistance at a Regional Center that has no resident Spanish-speaking Business Advisers, the SBDC can link the client electronically with a Spanish-speaking Business Adviser elsew h e re in the system. Transitioning Defense Industries to Commercial Enterprises The Defense Economic Transition Assistance (DETA) program was authorized by the US Small Business Administration in 1995 to enable SBDCs to assist small businesses impacted by reductions in defense spending and the closing of military bases. The New York State DETA program provides an array of no-cost business services to help reposition these defense-impacted businesses to commercial markets. Four SBDC DETA centers have been strategically positioned throughout New York State in Plattsburgh, Utica, Farmingdale, and Stony Brook to provide assistance to heavily impacted areas. In FY 2003, the SBA awarded the NYS/SBDC a new contract to provide DETA services. The new contract will enable the SBDC to continue its services in existing areas and to expand its services to Rochester and Watertown. The Manufacturing and Defense Development Center (MDDC), located in Rensselaer, supports DETA Business Advisers at Regional Centers. The MDDC and DETA centers have created strategic partnerships with organizations statewide, including Empire State Development, to address issues impacting businesses adversely affected by reductions in defense spending. They are developing new programs, seminars, and strategies to assist companies in increasing productivity, efficiency, and competitiveness in order to compete in commercial markets. The MDDC applies new technologies (including technology-based inventory control), identifies new domestic and foreign markets for products, and reengineers manufacturing processes. The MDDC and its regional DETA centers help companies: Focus on critical issues affecting their future success; PROGRAM REPORT SBDC

23 Think about their businesses from various perspectives, including those of their customers and their competitors; Help differentiate them from the competition. NYS DETA has helped these businesses impacted by defense cutbacks to access over $55 million in capital since This translates to over 2,300 jobs saved or created. In just the last year, the economic impact of the DETA Program in New York State has increased more than $14.5 million, and almost 700 jobs were saved or created. See additional information about DETA at Saluting All Veterans Three years ago, the SBDC was one of four organizations in the country selected by the US Small Business Administration for the Veterans Business Outreach Program (VBOP) a pilot entrepreneurial assistance program directed at veterans and especially service-disabled veterans. VBOP provides outreach in the form of targeted business training, counseling, and mentoring for eligible veterans. The program focuses on veterans who want to start their own businesses or who own businesses and want to improve profitability. As part of VBOP, special Veterans Business Outreach Centers were established at the Farmingdale, Buffalo, and Albany SBDCs, each with a veterans business adviser. In June 2002, Congressman James Walsh (R-Syracuse) made possible a Special Appropriation to enable VBOP to increase businesscounseling services to veterans in Central New York. An additional VBOP Business Counselor was hired in October to staff a Veteran s Business Outreach Center at Onondaga Community College, in Syracuse. The SBDC web site includes pages that contain useful information about VBOP and an easyto-fill-out electronic application for business counseling. At the web site, information about the Veterans Business Outreach Program can be found under Need help? with information about the SBDC s other Specialty Programs. An important ancillary program for VBOP is the Veterans Behind Bars initiative, which has been operating for over two years, in partnership with the New York State Department of Correctional Services, and is directed at veterans who are within three years of release or parole. The program started on a pilot basis at two medium-security facilities Arthur Kill on Staten Island, and Groveland near Rochester. At both facilities, SBDC Business Advisers from nearby Regional Centers provide free business planning seminars and business plan preparation workshops to veterans who sign up for the voluntary program. The goal is to equip veterans who are interested and committed to entrepreneurship with the tools they need to start their own business once they have left the facility. Arthur Kill has graduated three classes of 25 veteran inmates from the basic program, and started them on an advanced course. At Groveland, close to 100 veterans have completed the basic program and received graduation certificates. The SBDC donated a basic business reference library to each facility for use by the veterans. Plans are in the works to seek funding to expand the Veterans Behind Bars program to two additional correctional facilities. B.J. Dildine Corning Success Story Dawn and B.J. Dildine, of Elmira, wanted to own and operate a taxi service. B.J. had extensive experience working for local cab companies, but the couple didn t know how to get a business started. For that, the Dildines went to the Small Business Development Center at Corning Community College. SBDC Business Adviser Scott Bloor worked with the Dildines to prepare a financing package. Together, they developed cash flow projections and other paperwork required by banks. B.J. s practical experience in the business was invaluable, says Bloor. He knew the average monthly repair bills and drivers pay scales. Despite several bank rejections, the Dildines persevered and finally received $80,000 in funding, consisting of an SBAguaranteed bank loan and owner equity. This enabled BJ s Taxi Service, serving the Corning-Elmira area, to purchase a fleet of eight cars and provide working capital to lease a building. Five jobs were created. Scott Bloor helped us every step of the way, from business plan to marketing plan, say Dawn and B.J. The SBDC helped us turn a dream into reality. SBDC 2002 PROGRAM REPORT 2 1

24 Doreen Zayre (left) with the SBDC s Rosemary Sleap Staten Island Success Story Since 1998, Doreen Zayer has operated Relax on Cloud Nine, a massage therapy practice, out of her own home on Staten Island. The business has grown steadily, and when she needed to consider extensive renovations to her home to expand and modernize her business space, she consulted the SBDC at the College of Staten Island. SBDC Business Advisers helped her put together a business plan that attracted $125,000 in funding from a local bank, combined with $160,000 in personal equity. Besides giving Zayer a much more professional and flexible space for herself and her customers, the funding has enabled her to open a second massage and health improvement facility in the new Hilton Hotel that recently opened on Staten Island. As my business expands, I will continue to consult with the SBDC, says Zayer. They have the technical knowledge and experience to help you succeed. In its three years of existence, New York s VBOP has provided counseling to more than 4,000 veterans, trained more than 3,000 veterans, and located over $64 million in funding for ve t e r a n s businesses. Efforts are under way to promote a dedicated, statewide Veterans Micro Loan Fund, the seed capital of which would be provided by private funding and made available to otherwise ineligible veterans. An Activist Advisory Board The SBDC Advisory Board consists of individuals from small business, banking, government, and industry who have a commitment to the future of small business in New York. Most of these people own and operate their own small businesses or provide services to the small business sector. The Chairperson, Raymond Nowicki, is Managing Partner of Nowicki and Company, CPA, in Buffalo, NY. The mission of the statewide Advisory Board is to advise, counsel, and confer with the State Director of the Small Business Development Center in working to constructively advance and improve the New York State Small Business Development Center program. Advisory Board members provide input on program goals and objectives, review program performance, inform the State Director about the economic conditions in their home regions, and advocate for the program. In addition, the Advisory Board has standing committees that provide important feedback to the Lead Office on programmatic, advocacy, and operational activities. The Advisory Board also forms ad hoc committees to come to grips with issues as they occur. One example is an ad hoc committee that was formed to study and formulate recommendations to alleviate adverse economic conditions in Upstate New York. The New York board has made its impact felt nationally. Loretta Kaminsky, owner of Lou-Retta s Chocolates in Buffalo, and member of the Advisory Board, served as chair of the US Small Business Administration s SBDC Ad v i s o ry Board. Kaminsky is a fre q u e n t spokesperson for small business nationally. In July, Kaminsky received the New York State 2002 Small Business Advocate of the Year Award from Lieutenant Governor Mary Donohue. New Initiatives The SBDC constantly seeks funding for new initiatives in order to broaden and deepen its services to New York s small businesses. Two recent examples of new programs are NY Bizlink and the Drug-Free Workplace Programs. Bizlink, launched in partnership with Em p i re State De velopment, the Bu s i n e s s Council of New York, and the National Federation of Independent Businesses (NFIB), encourages business-to-business commerce in New York: large businesses working with small businesses throughout the state, enhancing beneficial business-to-businesses linkages. Bizlink takes the form of a database of companies that will facilitate information exchange between New York contractors and subcontractors, suppliers and purchasers. NY Bizlink is part of the BusinessLINC program established by the Small Business Administration to help small business by promoting commercial and mentoring opportunities between small and large businesses. Each year, alcohol and drug abuse cost American businesses $276 billion in lost productivity. Small businesses are especially vulnerable. In 2002, the PROGRAM REPORT SBDC

25 SBDC conducted 18 special Drug-Free Workplace workshops across the state to alert small- and medium-sized businesses to the dangers of alcohol and drug abuse in the workplace. Professional Drug Recognition Experts from Prince and Page Consulting, a national leader in alcohol and substance abuse education, conduct the workshops. The material is fully compliant with alcohol and drug rules mandated by US Department of Transportation s Drug Evaluation and Classification Program regarding employees who drive motor vehicles requiring a commercial driver s license. The SBDC was awarded a second year of funding for the program, and will be sponsoring another round of workshops throughout New York State in Office of Entrepreneurial Education The Office for Entrepreneurial Education (OE2) was developed as a new unit of the SBDC this year. OE2 s primary objective is to facilitate, sponsor and develop tools, aids, and models of entrepreneurial instruction. The instructional tools can be combined with the direct services of the SBDC to provide entrepreneurs with learning opportunities that facilitate their success. The SBDC envisions OE2, which was placed under the umbrella of the SBDC by The State University of New York, as a key component of outreach to an important clientele young and budding entrepreneurs in New York. The OE2 has launched two projects: Appalachian Regional Commission (ARC): The ARC, a federally authorized agency overseen by the New York Department of State, advances economic improvement within the Appalachian Mountain region. ARC sponsors entrepreneurial training for high schools in New York s Southern Tier. This program has been very well received in delivering an entrepreneurial instruction tool to students within this community. The program also includes student internships and a business plan competition to encourage the students to fulfill their dreams. EntreSkills: This web-based educational product is scheduled to be released for the 2003 school year. This new EntreSkills product contains 12 instructional modules that lead the student through the development of a standard business plan. The modules present lessons that include exercises, key vocabulary and terms, web links, and lists of resources for further reading. SBDC OE2 staff are working with several teachers and consultants to develop the content and web site. Acknowledging Dynamic Alliances The success of SBDC clients can be attributed to the hard work of SBDC staff across New York State and to the active support of key SBDC economic development partners on numerous projects and initiatives. The SBDC s most important partners are the US Small Business Administration, the State of New York, the State University of New York, and host higher education campuses. Key partnerships include, but are not limited to: Empire State Development (ESD): The state economic development agency that provides assistance and service to businesses to foster economic investment and prosperity in New York State. ESD works closely with busi- Continued on page 26 Robert Swigonski Utica/Rome Success Story Robert Swigonski, a US Air Force Gulf War veteran, first stopped at the SBDC Regional Office at SUNY Institute of Technology at Utica/Rome in He was working at a local engineering firm and interested in the restaurant business and being his own boss. With SBDC help, Swigonski identified financial partners and opened a Denny s restaurant in Rome in 1995 with $200,000 in investor equity and a $653,000 loan from a lending institution. That formula worked so well that Swigonski and partners again with SBDC help opened additional Denny s franchises in Oneida and Oneonta in 1999, and in Utica in When Swigonski learned that an organization in Texas was selling its franchises in Amherst and Syracuse, New York, and there was interest in a new location in Rochester, the successful collaboration between Swigonski and the SBDC resulted in the financing and opening of three Bennigan s Restaurants between 2000 and Total economic impact for these seven upstate restaurants three of them in New York State Empire Zones is $5,137,000; the creation of over 700 jobs; and an annual payroll in excess of $5.5 million. Plans include opening five additional restaurants. The SBDC understands franchising and what it takes to succeed, says Swigonski. They have hands-on experience and expertise. SBDC 2002 PROGRAM REPORT 2 3

26 From left, Regional Director Angel Roman, Business Adviser Tony Presti, Entrepreneurs Jody Lochak, Jack Schwartz Brooklyn Success Story Jack Schwartz was born into retail trade (his father s flooring store has been in the same Brooklyn location for 47 years). Six years ago, after a decade of working for others, Schwartz launched GEMTEC, a tile manufacturing company located in a 20,000-square-foot plant. With steadily increasing sales, when Schwartz needed to grow his company, he contacted the Brooklyn SBDC, at Boricua College. He wanted to expand his marketing and sales to the tri-state area and beyond. The SBDC helped him write a winning business plan, in which he articulated his vision for the company and developed realistic sales projections. Schwartz was able to secure a $500,000 loan from a local community lender, backed by the SBA s 7a program. As a result, GEMTEC is about to hire three additional sales representatives, produce over 1,000 display racks, and expand its marketing and promotional efforts to medical facilities, hospitals, and nursing homes. If you want to grow your business, says Schwartz, see the SBDC. They have an understanding of how business survives and thrives. And they enjoy an excellent reputation among lending institutions. Tracy Hurilla Watertown Success Story Besides running a successful construction business, Tracy and Michael Hurilla rented out cabins on Brantingham Lake, in the Adirondacks. In 1999, Tracy decided she wanted to open a hotel there. She attended a Business Plan Course at the Watertown SBDC, located at Jefferson Community College, and then became a client. SBDC Business Advisers helped her prepare a business plan with financial projections. They answered questions about debt load and the volume of sales necessary to cover the debt. The business plan determined that the business was feasible and that $1.3 million in funding was required. Hurilla was successful in obtaining backing: a $750,000 loan from a local bank, a $250,000 loan from New York Business Development Corporation, and $350,000 in owner equity. The Edge Hotel opened 25 of its 51 rooms in February 2002; the rest were opened in August, creating 20 jobs. According to Tracy Hurilla, A lot of research and planning go into any new business. The business plan course and counseling at the SBDC was very helpful, and I have recommended it to others. Thanks for helping me get started. From left, Regional Director Al Titone, Business Adviser Brian Jeung, Eve Yang Queens Success Story In 1998, Eve Yang opened Elim of New York, a beauty school in Flushing that offers courses in beauty, skin, and nail care. After the 9/11 terrorist attack, her business fell off. With no income for a number of weeks, Yang needed working capital to keep her business open. She sought the help of the SBDC at Yo r k College. SBDC business advisers there helped her qualify for a $5,000 loan from the Wo r l d Trade Center Small Business Recovery Fund, and an SBA Economic Injury Disaster Loan (EIDL) of $155,400. The EIDL has a two-year deferment on principal and interest, and an interest rate capped at 4 percent. "The SBDC gave me the assistance I needed," says Ya n g, "and helped me keep my business open." PROGRAM REPORT SBDC

27 Dale Formaniak (left) and John Wilder Buffalo Success Story Between them, machinists Dale Formaniak and John Wilder had 26 years of experience at Buerk Tool and Machine, one of the oldest machine shops in Buffalo. Hans Buerk, a German immigrant, founded Buerk Tool in When Dick Buerk, the founder s grandson, decided to sell the business, Formaniak and Wilder expressed an interest. They had a wealth of practical technical experience, but no knowledge of running a business. Dick Buerk, who is Chairperson Emeritus of the New York State Small Business Advisory Board, suggested that they consult the SBDC at Buffalo State College. The SBDC helped the partners write a business plan and marketing plan and assemble financial projections to help them obtain financing. The SBDC Research Network collected market research data for machine shops in Western New York. Three banks were interested in providing funding, and the SBDC helped them analyze the offers. In September, the partners purchased the venerable business for $688,000, with an 80 percent SBA guarantee. The company is now operating at full capacity. The SBDC helped us through every stage of the process, says Formaniak. They are pros. Stephanie Barrus Watertown-Oswego Success Story Stephanie Barrus, a native of Fulton, received a degree in hotel/restaurant management from Paul Smith s College, then rose steadily in the management of national restaurant chains on the West Coast. When she decided she wanted to open a restaurant in her hometown, she discovered the SUNY Oswego SBDC Outreach office. The SBDC helped Barrus analyze two restaurants that were on the market. She decided she wanted to obtain the lease for the restaurant at the Battle Island State Park Golf Course. Because this was a lease situation, there would be little collateral for the bank. According to Barrus, SBDC Business Adviser Larry Perras helped me prepare the business plan and put me in touch with two banks that he thought would be most interested in my project. I obtained the $40,000 I needed to open the restaurant. This would not have been possible without the help of the SBDC. The Battle Island Clubhouse Café opened late last year. Laurie Joslin Brockport Success Story When Laurie Joslin was downsized from a large manufacturing firm, she saw it as an opportunity to start her own business as a corporate coach and training professional. She went though the Self Employment Assistance Program (SEAP), found an income stream from her unemployment insurance checks, and sought professional business assistance at the SUNY Brockport SBDC. The SBDC helped her develop a business plan, financial projections, a comprehensive loan package, a marketing plan, and networking strategies. The SBDC Research Network provided essential demographic information. After investing over $47,000 (including a bank loan of $15,000), Joslin launched her business, Unlimited Coaching Solutions, in Pittsford, near Rochester. The business has grown steadily and has acquired major clients, including Savings Bank of the Finger Lakes, Erdman Anthony Engineering, and the U.S. Navy in San Diego. "SBDC assistance, combined with SEAP, was a key to my success," says Joslin. "I will use the SBDC as a resource in the future, and I ll refer others as well." SBDC 2002 PROGRAM REPORT 2 5

28 From left, Business Adviser Ana Rodriguez, Sally Sola, Student Intern Jenny Tejada Bronx Success Story Sally Sola, of the Bronx, wanted to open her own beauty salon. Sola had management experience in her background and had worked as a licensed cosmetologist. She was prepared to take on the challenges involved in owning her own business. But she lacked the capital to make her dream a reality. With help from Bronx SBDC Business Adviser Ana Rodriguez, assisted by Student Intern Jenny Tejada at Lehman College, Sola developed a winning business plan that enabled her to obtain a $27,100 bank loan. The loan, along with her equity capital, and the creative restructuring of renovation and equipment needs, totaled $127,000. Sola Salon Systems, Inc., opened in the fall, creating five jobs. "The SBDC looks for innovative approaches to make starting a business easier," says Sola. "I would recommend their services to everyone." Continued from page 23 nesses to identify creative solutions to challenging problems, generate enhanced opportunities for growth, and help businesses achieve their uniquely important short- and longterm goals. The Director of ESD s Division of Small Business serves on the SBDC Advisory Board. New York Business Development Corporation (NYBDC): A private corporation that works in conjunction with leading New York banks and thrift institutions to provide creative and innovative financing to small businesses across New York. NYBDC promotes, with the SBDC, the World Trade Center Small Business Recovery Fund, a revolving micro loan fund for small businesses in NYC affected by the September 11 terrorist attack. The President of NYBDC serves on the SBDC Advisory Board. New York State Environmental Assistance Network (NYSEAN): A coalition of government agencies and organizations developed to promote pollution prevention and environmental compliance among New York State businesses. The SBDC works with representatives from federal, state, municipal, and other agencies and organizations to ensure that New York businesses receive the best access to environmental assistance resources. Business Council of New York State (BCNYS): A primary advocacy group for business in New York State, supported by some 4,000 member companies and chambers of commerce from around the state. The BCNYS partners with the SBDC on the NY Bizlink initiative. National Federation of Independent Business (NFIB): The largest small business advocacy organization, representing small and independent businesses in New York. NFIB provides timely informational resources to help business owners succeed. NFIB partners with the SBDC in outreach and selected projects. US Department of Energy (DOE): DOE is in charge of Brookhaven National Laboratory on Long Island. The Stony Brook SBDC maintains an outreach office at Brookhaven to provide business counseling to companies developing technologies that evolve from research at Brookhaven. This is the first SBDC office on site at a national laboratory. It also represents the first joint venture between the SBA, the SBDC, and DOE. The Governor s Office of Regulatory Reform (GORR): GORR has as its goal improving the state s economic climate through a common-sense regulatory policy and improved permitting processes. GORR works to provide innovative solutions to business regulatory problems, making the state a better place in which to live and do business. New York State Department of Labor (NYS/DOL): NYS/DOL is New York s primary advocate for job creation and economic growth through workforce development. The department administers New York s unemployment insurance system, labor exchange system, and Welfare-to-Work programs. It has partnered with the SBDC in recent years in the Self-Employment Assistance Program. US Internal Revenue Service (IRS): Part of the Department of the Treasury, the IRS is the nation s tax collection agency and administers the Internal Revenue Code enacted by Congress. The SBDC, in partnership with the Small Business Compliance Alliance, provides IRS workshops to small business owners to help them understand and comply with business tax requirements PROGRAM REPORT SBDC

29 NYS/SBDC National Awards 2002 OUTSTANDING PROJECT OF THE YEAR AWARD from the National Association of Management and Technical Assistance Centers (NAMTAC) NYS SBDC for Small Business Disaster Recovery Efforts in New York City 2002 SBA TIBBETTS AWARD Mohawk Innovation Technologies, Inc. (MDDC - Albany SBDC) NEW YORK STATE 2002 SMALL BUSINESS ADVOCATE OF THE YEAR AWARD LoRetta Kaminsky (SBDC Advisory Board) 2001 OUTSTANDING PROJECT OF THE YEAR AWARD from the National Association of Management and Technical Assistance Centers (NAMTAC) Square One Taxi Company (Albany SBDC) 2001 SBA TIBBETTS AWARD Integrated Sensors, Inc. (Onondaga SBDC) 2000 OUTSTANDING PROJECTS OF THE YEAR AWARDS from the National Association of Management and Technical Assistance Centers (NAMTAC) Aurora Project (Binghampton SBDC) APACE, Inc. (Stony Brook SBDC) Kosnal Floating Derrick Co. (Staten Island SBDC) 1999 OUTSTANDING PROJECT OF THE YEAR AWARD from the National Association of Management and Technical Assistance Centers (NAMTAC) American Rock Salt (SUNY Geneseo SBDC) 1999 SBA VISION 2000 MODEL OF EXCELLENCE AWARD Women s Business Roundtable (Corning Community College SBDC) 1999 SBA VISION 2000 MODEL OF EXCELLENCE AWARD KidBiz (SUNY Buffalo State College SBDC) 1998 SBA VISION 2000 MODEL OF EXCELLENCE AWARD Native American Initiative (Jamestown Community College SBDC) 1998 SBA VISION 2000 MODEL OF EXCELLENCE AWARD Self-Employment Assistance Program (In partnership with the NYS Dept. of Labor) 1998 CHAIRMAN S AWARD National Association of Small Business Development Centers Outstanding Achievement and Excellence 1997 GOVERNOR S AWARD as the Small Business Not-for-Profit Organization of the Year SBDC 2002 PROGRAM REPORT 2 7

30 NYS/SBDC Corporate Partners American Express Business Council of New York State CitiBank Chase Bank Foundation Compaq Computer Group Deutsche Bank FedEx Fidelity National Solutions, Inc. Fleet Bank HSBC Intuit, Inc Key Bank Lou-retta s Custom Chocolates, Inc. Microsoft Corp. National Federation of Independent Businesses New York Business Development Corp. Nowicki and Company, CPAs LLP Principal Financial Group NYS/SBDC Public Partners Association of Small Business Development Centers Defense Economic Transition Assistance (DETA) Program Empire State Development New York Office of Science, Technology and Academic Research New York State Department of Education New York State Department of Labor New York State Department of Taxation New York State Environmental Assistance Network Office of Veterans Affairs SCORE Small Bussiness Compliance Alliance SSTCC of China U.S. Department of Energy U.S. Department of Labor U.S. Internal Revenue Service U.S. Small Business Administration (SBA) SBA Officers Hector Barreto SBA Administrator Washington, D.C. Michael Pappas Regional Administrator New York, NY Herb Austin Interim District Director New York, NY Franklin Sciortino District Director Buffalo, NY B.J. Paprocki District Director Syracuse, NY Dan O Connell SBA Project Officer Albany, NY PROGRAM REPORT SBDC

31 2002 Entrepreneurs of the Year SBDC High Tech Company of the Ye a r Kim Phillips, president of Solid Imaging in Rochester, uses advanced software to provide rapid prototyping services for the automotive and racing industries. When Phillips was ready to launch her company, the Brockport/Rochester SBDC worked with her to produce a business plan, which was submitted to venture capitalists. Phillips obtained $250,000 in working capital, to which she added $50,000 in equity cash. Hispanic Entrepreneur of the Ye a r Hector Guevara, president of Hytech Industries on Long Island, develops technology that reduces power costs through renewable energy sources. On 9/11, Hytech was working on a project to supply multiplex fiber optic converters for New York City s subway system. The project had to be put on hold. Guevara looked for help at the Stony Brook SBDC. The SBDC helped Hytech qualify for a loan of $150,000 at four percent over 15 years. SBDC Woman Entrepreneur of the Ye a r Susann Everett s company, Beowulf Natural Feeds, Inc., produces premium dog and cat food. When the company wanted to establish a company identify and redesign its packaging, the SBDC at SUNY Institute of Technology at Utica/Rome helped her put together a winning business plan. The result was $167,000 in funding that allowed a new corporate identity. SBDC Minority Entrepreneur of the Ye a r In 1997, Shirley Felder launched Sullivan County First Recycling and Refuse, Inc., with two old trucks, 400 well-used containers, and a small customer base. In the first year, sales went from $0 to $200,000. To d a y, she has 12 trucks on the road, over 800 containers in use, and a customer base in the thousands. The Mid-Hudson SBDC reviewed the company s business procedures, financial projections, and documents required for a loan application. The result was a $308,000 financial package. SBDC Phoenix Award Stephen Mosto runs Mosto Technologies, a heating, ventilation, and air conditioning business with many clients located in the World Trade Center. After the terrorist attack on September 11, Mosto Technologies needed funds for operating capital. Midtown Manhattan SBDC business advisers helped him determine and document the extent of his economic injury, and assisted him in filing the loan application. As a result, Mosto closed on a direct EIDL loan from the SBA in the amount of $122,800. Veteran Entrepreneur of the Year Bill Levine is a U.S. Navy veteran with a 10 percent serv i c e - r e l a t e d d i s a b i l i t y. He is also a talented and motivated graphic design and product branding professional. In July 2000, Levine started working with business advisers at the Farmingdale SBDC. W. L. Concepts & Production grew quickly, winning contracts worth over $1 million. W.L. Concepts grew so quickly in the first 15 months, Levine needed a larger building. In December, W. L. Concepts moved into 5,000 square feet of new office space. Three jobs were created. SBDC Manufacturer of the Ye a r Steve and Patrick Dewey run All-Lifts, specializing in industrial lifting equipment. When All-Lifts found its business negatively impacted by a decline in military procurement, the Deweys contacted the SBDC s Manufacturing and Defense Development Center (MDDC). The brothers needed funding to expand their manufacturing facility, as well as help in developing marketing strategies. With the MDDC, the Deweys developed an effective business plan, including cash flow projections. They invested $90,000 to expand their plant, and incorporated new robotic technology. Since working with the MDDC, the Deweys have reported an increase in sales of $900,000. SBDC SEAP Client of the Ye a r In 2000, Fred White was one of many long-time employees laid off from a paper mill in Newton Falls. White saw the chance to turn his lumber hauling skills into a full-fledged business. He found help at the Canton SBDC. White qualified for the Department of L a b o r s Self-Employment Assistance Program (SEAP). He worked with the SBDC to develop a winning business plan and financing proposal that secured $37,000 in start-up funding for sawmill and gravel hauling equipment, to which he added $24,000 in personal cash and collateral. SBDC 2002 PROGRAM REPORT 2 9

32 2002 SBDC Business Advisers of the Year: from left, Eric Constance (Watertown), 2nd Runner-up; Mike Cipriani (Farmingdale), 2nd Runner-up; Al Griggs (Mid- Hudson), Business Adviser of the Year; Frank Guarino (Midtown Manhattan), 1st Runner-up; Pat Karlak (Stony Brook), 4th Runnerup; Gloria Glowacki (Stony Brook), 4th Runner-up; Ralph Toscano (Brockport/Rochester), 4th Runner-up; Bill Grieshober (Buffalo), 3rd Runner-up Frank Guarino, Midtown Manhattan SBDC, 2002 ASBDC Star Performer SBA Administrator Hector Barreto (left) and SBA Regional Administrator Mike Pappas, with Buffalo Regional Director Sue McCartney From left, Utica Regional Director Dave Mallen, U.S. Congressman Sherwood Boehlert (R-23 Dist.), Phyllis Niemi, Jill Andrews, and Gale Stovall of Valley Gymnastics, SBA District Director B.J. Paprocki. Valley Gymnastics was honored as SBA Small Business of the Year PROGRAM REPORT SBDC

33 From left, Jinshui Zhang, SBDC International Program Manager; Clark Zacaroli, VP Marketing, Hydro-Air Components, Inc.; Rick Gorko, SBDC Niagara Regional Director; Jiabin Zhou, Deputy Mayor, Qingdao City; Walter Zurowski, President, Hyro-Air. The Hamburg, NY company has entered into a trade and production agreement in China s Tianjin Economic Zone In July, NY Lieutenant Governor Mary Donahue (right) presented Loretta Kaminsky, President of Lou-Retta s Chocolates in Buffalo and member of the SBDC Advisory Board, with the 2002 New York State Small Business Advocate of the Year Award From left, SBDC State Director Jim King, Wade Butler, from the SBA a Niagara Falls Disaster Assistance Loan Office, Aubrey Rogers, retired New York City SBA District Director Students in New York s Southern Tier are participating in EntreSkills, an interactive small business education program being developed by the SBDC s Office of Entrepreneurial Education SBDC 2002 PROGRAM REPORT 3 1