Department of Small Business and Supplier Diversity Work Plan: Fourth Quarter (Virginia)

Summary

A memorandum dated January 30, 2020 from Tracey G. Wiley, Director of the Virginia Department of Small Business and Supplier Diversity, to R. Brian Ball, Secretary of Commerce and Trade, with the subject Department of Small Business and Supplier Diversity Work Plan: Fourth Quarter. It states that the agency hosted monthly Small, Women, and Minority-owned (SWaM) meetings with executive branch agencies and institutions of higher education, and that to date it has hosted twenty-three entities. It lists winners of the 2019 Governor's SWaM Awards, including John Kostyniuk of VCU as 2019 SWaM Champion and Mary Helmick of VT as 2019 SWaM Innovator. An attached Agency Work Plan follows the memo.

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“Department of Small Business and Supplier Diversity Work Plan: Fourth Quarter (Virginia).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-rd79-677e4de500/, SHA-256 d8c2627cd80f5f3fb7d645b0617aba47c66a30f50dfe960525901726792c4467.

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Ralph S. Northam
Governor
COMMONWEAL1H of VIRGINIA
R. Brian Ball Department of Small Business and Supplier Diversity Tracey G. Wiley
Secretary of Commerce & Trade Director

To: The Honorable R. Brian Ball
Secretary of Commerce and Trade

House of Appropriations & Senate Finance Committees

From: Tracey G. Wiley, Direc~
Virginia Department of Small Business and Supplier Diversity

Date: January 30, 2020

CC: Angela Navarro, Deputy Secretary of Commerce and Trade
Laura L. Wilborn, Division of Legislative Automated Systems

Subject: Department of Small Business and Supplier Diversity Work Plan: Fourth Quarter

We appreciate the opportunity to share with you the work that has been accomplished in the fourth
quarter of the year in relation to our 2019 Agency Work Plan. We are very pleased with the results and
look forward to continuing to share our work with you in 2020.

During this quarter, the Department of Small Business and Supplier Diversity has collaborated with the
Secretary of Commerce and Trade's Office, the Secretary of Administration's Office and the Office of
the Governor to host monthly Small, Women, and Minority-owned (SWaM) meetings with executive
branch agencies and institutions of higher education. To date the agency has hosted twenty-three
entities. The purpose of these meetings has been to increase awareness around the spend goals
established in Executive Order 35 and allow agencies and institutions of higher education a forum to
share best practices. Attached, you will find the upcoming schedule for the remainder of FY20.

The agency also hosted the 2019 Governor's SWaM Awards during the Public Procurement Forum to
acknowledge and celebrate the achievements of state agencies and institutions of higher education in
their efforts to support SWaM businesses. The winners included:

John Kostyniuk, VCU -- 2019 SWaM Champion
Mary Helmick, VT -- 2019 SWaM Innovator

Highest SWaM Expenditure Achievement:
Small Agency -- Virginia Tourism Authority
Medium Agency -- Catawaba Hospital -- DBHDS
Large Agency -- Department of Human Resource Management
Small Public University/College -- Dabney S. Lancaster Community College
Medium Public University/College -- Eastern Shore Community College
Large Public University/College -- Norfolk State University

101 N. 14'" Street, 11th Floor • Richmond, Virginia 23219 • (804) 786-6585 • Fax (804) 786-9736
Lastly, we wanted to share new testimonial videos from different programs within the agency to
highlight the positive impact our offerings have had on the business community. We are very proud of
the work we do in support of small businesses in Virginia, which truly drive our economy.

Thank you and please let us know if you have any questions on items not addressed in this report.
Department of Small Business and Supplier Diversity
Agency Work Plan
January 1-December 31, 2019

Overview

Mission: Economic Growth and Development of Virginia’s Small Businesses

The mission of the Virginia Department of Small Business and Supplier Diversity (SBSD) is to
serve Virginia’s small businesses, by enhancing growth opportunities through increased
revenue and job creation that raises the standard of living of all Virginians.

Agency Vision:

The Virginia Department of Small Business and Supplier Diversity (SBSD), formerly the
Department of Business Assistance, was formed to meet the needs of existing and new small
businesses. Over the life of the agency, the mission has expanded so that small, woman, and
minority-owned businesses are included in this vision. Then and now, the department
separates these important functions from the political process and ensure that all Virginia small
businesses receive assistance to grow and prosper in the Commonwealth through education,
counseling, certification, and access to financing.

Agency Goals:

Statewide Goals Advanced by SBSD’s Strategic Goals, Objectives and Strategies
 Be a national leader in the preservation and enhancement of our economy.
 Engage and inform citizens to ensure we serve their interests.
 Be recognized as the best-managed state in the nation.
 Ensure that Virginia has a transportation system that is safe, enables easy movement of
people and goods, enhances the economy and improves our quality of life.

The goals listed above are statewide goals with many contributors in which SBSD plays a role.
The agency is committed to customer service, advocacy for small businesses, and support of
other Virginia state agencies. SBSD specific goals do not stand alone, but support the broader
goals of the entire Commonwealth.

Agency Goal I: Spur economic vitality through strategic investment of resources.

For the Department this means implementing strategies that assist small businesses to be more
competitive in a rapidly changing global economy.

Agency Goal II: Enhance the positive business climate in Virginia for small businesses as
they move through the business life cycle: formation, stabilization, and
growth.

For the Department this means providing services designed to assist with the development and
growth of small businesses, as they are the economic engine of the Commonwealth.

1
Agency’s Objectives and Strategies for 2019

Agency Goal #1:

Spur economic vitality through strategic investment of resources.

Objective

Utilize agency resources to maximize the creation and retention of jobs within the
Commonwealth as well as growth for wealth maximization of our current small business
population.

Overall success toward meeting this objective will be assessed through the following
measures:

 Number of jobs created and retained by businesses receiving loans from the VSBFA
(Work Plan Measure)
 Number of presentations to financial institutions and economic development partners
(Strategic Plan Measure)
 Total number of jobs created and retained by small business borrowers as a result of
VSBFA programs (Work Plan Measure)
 Total numbers of jobs created and retained in rural areas for all borrowers (Work Plan
Measure)
 Total private investment enabled for business borrowers under all VSBFA programs
(Work Plan Measure)
 Make available a pool of Small, Women, and Minority (SWaM) and Disadvantaged
Business Enterprise (DBE) certified vendors for local, state, and corporate/private
entities (Strategic Plan Measure)
 Average number of days to process a Small, Women, and Minority (SWaM)
certification application (Strategic Plan Measure)
 Support of service disabled veteran businesses through certification (Strategic Plan
Measure)

Virginia Small Business Financing Authority (VSBFA)
Number of jobs created and retained by businesses receiving loans from the VSBFA
 Staff will provide data quarterly on the amount of jobs created from loans made across all
programs of the VSBFA. (Baseline 400; Goal 400)
Q1. 94
Q2. 9,738 *The agency had a large bond project
Q3. 9,921
Q4. 10,589 *The agency had a large bond project

Number of presentations to financial institutions and economic development partners
 Staff will provide data quarterly on the amount of marketing presentations and the economic
development and banking partners associated. (Baseline 150; Goal 300)
Q1. 112
Q2. 182
Q3. 259

2
Q4. 349

Total number of jobs created and retained by small business borrowers as a result of VSBFA
programs
 Staff will provide data quarterly on the number of jobs created and retained by small
businesses as a result of VSBFA programs (Baseline 400; Goal 400)
Q1. 82
Q2. 111
Q3. 113
Q4. 144

Total numbers of jobs created and retained in rural areas for all borrowers
 Staff will provide data on the numbers of jobs created and retained in rural areas for all
borrowers. See appendix. (Baseline 150; Goal 150)
Q1. 12
Q2. 661 *large project with Pulaski County
Q3. 748
Q4. 748

Total private investment enabled for business borrowers under all VSBFA programs
 Staff will provide data on the total private investment (non-VSBFA) enabled for business
borrowers under all VSBFA programs. (Baseline $5,000,000; Goal $5,250,000)
Q1. $125,330,000
Q2. $507,592,954
Q3. $512,192,954
Q4. $538,105,178

SWaM Certification Division (SWaM)
Make available a pool of Small, Women, and Minority (SWaM) and Disadvantaged Business
Enterprise (DBE) certified vendors for local, state, and corporate/private entities
 Staff will provide data quarterly on the number of currently certified SWaM and DBE
businesses. (Baseline 14,000; Goal 15,000)
Q1. SWaM = 11,308 DBE = 2,613 Total = 13,921
Q2. SWaM = 11,475 DBE = 2,704 Total = 14,179
Q3. SWaM = 11,931 DBE = 2,731 Total = 14,662
Q4. SWaM = 12,114 DBE = 2,760 Total = 14,874

Average number of days to process a Small, Women, and Minority (SWaM) certification
application
 Staff will provide data quarterly on the average number of business days to process a
certification application. (Baseline 86; Goal 60)
Q1. 53 days
Q2. 58 days
Q3. 55 days
Q4. 59 days

3
Support of service disabled veteran businesses through certification
 Staff will provide data quarterly on the number of service disabled veteran small businesses
certified. (Baseline 195; Goal 250)
Q1. 339
Q2. 372
Q3. 391
Q4. 415

Agency Goal #2:

Enhance the positive business climate in Virginia for small businesses as they move through the
business life cycle: formation, stabilization and growth.

Objective

To provide services designed to assist with the development and growth of small
businesses in the Commonwealth.

Overall success toward meeting this objective will be assessed through the following
measures:

 Number of education and outreach activities conducted to assist Virginia small
businesses with strategic growth and development (Strategic Plan Measure)
 Percentage of businesses that maintained or experienced growth in revenue as a
result of participating in the New Virginia Scaling 4 Growth Development Program
(Work Plan Measure)
 Number of businesses served through Business One Stop (Work Plan Measure)
 Number of partners worked with annually to support Virginia small businesses
(Strategic Plan Measure)
 Number of VDOT projects supported through vendor development and technical
assistance (Work Plan Measure)

Business Development and Outreach Services (BDOS)
Number of education and outreach activities conducted to assist Virginia small businesses with
strategic growth and development
 Staff will provide data quarterly on the number of outreach events and/or activities held or
participated in annually. (Baseline 1,000; Goal 1,700)
Q1. 556
Q2. 1,042
Q3. 1,515
Q4. 1,951

Percentage of businesses that maintained or experienced growth in revenue as a result of
participating in the New Virginia Scaling 4 Growth Development Program
 This data will be provided by Interise on an annual basis. (Baseline 30%; Goal 30%)
Q1. Not available at this time, annual metric
Q2. Not available at this time, annual metric
Q3. 71%
Q4. Not available at this time, annual metric

4
Number of businesses served through Business One Stop
 Staff will provide data quarterly on the number of small businesses served through Business
One Stop. (Baseline 2,300; Goal 2,600)
Q1. 795
Q2. 1,397
Q3. 2,156
Q4. 2,700

Number of partners worked with annually to support Virginia small businesses
 Staff will provide data quarterly on the number of partner organizations worked with to
support Virginia Small Businesses. (Baseline 100; Goal 160)
Q1. 111
Q2. 200
Q3. 292
Q4. 306

DBE Technical Assistance and Outreach (DBE Outreach)
Development of ready, willing, and able businesses prepared to support VDOT projects.
 Staff will provide data quarterly on the number of VDOT projects supported through vendor
development and technical assistance. (Baseline 10; Goal 10)
Q1. 1
Q2. 3
Q3. 5
Q4. 11

5
Audit Compliance and Corrective Action:

The Department of Small Business and Supplier Diversity has had eleven audits and
performance reviews and VSBFA has had five since FY15. The agency audits/review
recommendations are listed below:

6
Agency Corrective Action Plan and Timeline listed below:

DSBSD
Fiscal Year Agency Description Corrective Action
FY19 APA Procurement Review and Audit None

FY18 APA Procurement Review and Audit None

FY18 JLARC Incentive Review of SBJGF None

FY18 JLARC Fiscal Impact Statement Review for SB318 None

FY18 VITA Sensitive Systems Audit Complete
Complete
Underway
Complete

FY17 Third Party Vendor ARMICS review to evaluate agency-wide and transactional internal controls Complete
Budget Requests Submitted/No funding
Complete

FY17 OSIG SWaM Certification Performance Audit (Review Period FY16) Complete
Complete
Complete
Complete
Complete
Complete

FY17 APA Payroll Audit (Review Period FY16) Complete
Complete
Complete
Complete

FY17 APA Internal Controls Audit (Review Period FY16) Complete
Complete
Complete
Complete
Complete

FY17 Third Party Vendor Independent Assessment of VSBFA Audits and Transfers as well as SBIG and SBJGF Complete/Legislation was introduced
Complete

FY16 JLARC Development and Management of State Contracts in Virginia Complete
Thirty recommendations provided only 4 pertained to DSBSD Complete
Complete
Complete

VSBFA
Fiscal Year Agency Description Corrective Action
FY18 JLARC Incentive Review of SBIG Complete
Underway
Unable to implement/communication sent to JLARC
Underway

FY18 APA VSBFA Federal Grants Audit Complete

FY17 APA Annual Financial Review (Review Period FY16) None

FY16 APA Annual Financial Review (Review Period FY15) None

FY15 APA Annual Financial Review (Review Period FY14) Complete
Complete

7
Discussion Points:

The agency is committed to supporting small businesses by providing access to capital,
opportunity through state and federal certification, and growth through comprehensive
development programs. Since the merger of the Department of Business Assistance (DBA) and
the Department of Minority Business Enterprise (DMBE) to create the Department of Small
Business and Supplier Diversity (DSBSD) in FY15 the agency has flourished. Under the
direction of new leadership, the two agencies became one and shared goals and vision were
established.

The first order of business, once the mission of the agency was solidified, was to develop the
infrastructure necessary to allow the agency to be successful. This required the build out of
office space so both agencies could work together as one cohesive unit. Next staffing needed
to be addressed; attracting new talent, addressing performance issues, and developing high
potential employees was a priority. Once infrastructure was in place then current programing
and performance of that programing could be evaluated. Strategic planning and SWOT
analysis was completed and new performance metrics were established. Through this planning
effort new programing opportunities were identified and the agency added the Virginia Scaling 4
Growth program and the Virginia Contractor’s Course to our business development offerings.

By the end of FY19, we expect to have graduated sixty-three SWaM businesses from the
Virginia Scaling 4 Growth program. Virginia is the first State to offer this nationally renowned
program. The program is a six-month MBA style program designed to take businesses through
leadership, finance, and business management modules with their final capstone project being
the completion of a growth program that they can put into action upon graduation. Based on
economic impact data we have captured from our graduates, 94 percent retained or created
new jobs. The average revenue growth was 83 percent after completion of the program.
Virginia’s program results have been so impressive that Interise, the national licensing
organization, has used Virginia’s results as a model of success for other participants.

The agency has also made tremendous strides as it relates to streamlining the SWaM
Certification process and in reducing time to process applications. In FY16, the agency was
faced with a backlog of over 2,000 applications and the average processing time for SWaM
certification was approximately 120 business days. The agency identified strategies to manage
the application volume and instituted new technology to automate the process. As of FY18, the
agency was able to clear the backlog and reduce processing times to less than 60 business
days. The average number of days to process a certification application in the private sector is
90 business days; we are committed to providing a faster service to our small businesses and at
no cost.

In FY19 and FY20, the agency plans to finalize streamlining efforts to reduce the burden of
certification to the business owner. We plan to finalize regulatory changes that will reduce the
amount of time a business must wait to reapply after being denied certification from 12 months
to six months. We plan to allow more time for reapplication increasing the reapplication period
from 90 days to 120 days. We plan to implement a streamlined recertification process that
allows for an attestation of no change allowing the business to submit less documentation when
reapplying. We have held webinars and certification labs statewide to assist applicants with the

8
process. We have conducted outreach and increased the number of certified service disabled
veteran owned businesses by 74 percent since FY18.

The agency has also been successful in updating its technology to meet the needs and
expectations of the citizens of the Commonwealth. In 2017, the agency launched a new
website as well as a new certification application portal. The agency created an enhanced
SWaM and DBE directory to assist Commonwealth procurement officials with identification and
location of certified vendors. DSBSD, in 2018, worked with nineteen state agencies to provide
them with real time data feeds on SWaM certification information. These feeds populate SWaM
certification data into DGS’s eVA system, DOA’s Cardinal system, VITA’s subcontractor portal
and various institutions of higher education’s ERP systems. The agency is working on
upgrading the Expenditure Dashboard system and expects this work to be complete in 2019.
The overhaul of this system will allow for reporting across all certification types and be the
primary source of data on small business spend for the Governor’s Office, Secretariats, and
individual agencies.

The agency has accomplished a great deal and appreciates the opportunity to highlight the work
that has been done and the work that will be accomplished in this upcoming reporting period.
We stand ready to continue our support of the small businesses of the Commonwealth. There
are currently 681,571 businesses in Virginia, of which 97.7 percent are small businesses.
Virginia small businesses employed 1.5 million people or 46.9 percent of the private workforce
in 2013. Our small businesses are the backbone of Virginia’s economy.

Appendix:

The agency will use the USDA definition of rural, which includes the following localities:

Accomack, Alleghany, Bath, Bland, Brunswick, Buchanan, Buena Vista City, Carroll, Charlotte,
Covington City, Cumberland, Danville City, Dickenson, Emporia City, Essex, Franklin City,
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Galax City, Grayson, Greensville, Halifax, Henry, Highland, King and Queen, King George,
Lancaster, Lee, Lexington City, Louisa, Lunenburg, Madison, Martinsville City, Mecklenburg,
Middlesex, Northampton, Northumberland, Norton City, Nottoway, Orange, Page, Patrick,
Pittsylvania, Prince, Edward, Richmond, Rockbridge, Russell, Shenandoah, Smyth,
Southampton, Surry, Tazewell, Westmoreland, Wise, and Wythe.
The following localities have geographic areas within them that have been designated rural as
well:
Amherst, Bedford, Campbell, Culpeper, Dinwiddie, Floyd, Franklin, Goochland, Nelson, Pulaski,
Rappahannock, Sussex, and Warren.

10
Ralph S. Northam
Governor
COMMONWEALTH of VIRGINIA
R. Brian Ball Department of Small Business and Supplier Diversity Tracey G. Wiley
Secretary of Commerce &Trade Director

Agency Head SWaM Meeting Schedule
January – May 2020
1:00 p.m. - 2:00 p.m.

Patrick Henry Building
1111 E. Broad Street
Richmond, VA 23219

Monday, January 27, 2020 Monday, March 16, 2020

Virginia Department of Health Virginia Department for Aging & Rehabilitative Services
Virginia Department of Motor Vehicles Virginia Department of Accounts
George Mason University Virginia Department of Education
The Office of the Governor Virginia Department of Forestry
Old Dominion University Virginia Department of Game and Inland Fisheries
Radford University Virginia Department of Historic Resources
State Corporation Commission Virginia Department of Social Services
The Science Museum of Virginia Longwood University
Virginia Military Institute Richard Bland College
Virginia Port Authority University of Virginia
Virginia State University Virginia State Police
William & Mary

Monday, April 27, 2020 Monday, May 18, 2020

Christopher Newport University Virginia Department of Agriculture & Consumer Services
Virginia Department of Aviation Virginia Department of Criminal Justice Services
Virginia Dept. of Conservation & Recreation Virginia Department of Environmental Quality
Virginia Department of Fire Programs Virginia Department of Forensic Science
Virginia Department of Juvenile Justice Virginia Department of Health Professions
Virginia Department of Military Affairs Virginia Dept. of Professional & Occupational Regulation
Virginia Dept. of Planning and Budget The Library of Virginia
Virginia Dept. of Rail & Public Transportation University of Mary Washington
Jamestown-Yorktown Foundation Virginia School for the Deaf and Blind at Staunton
Virginia Community College System
Virginia Museum of Natural History
Virginia Parole Board

These meetings are by invitation and will be sent to the Agency Head by the Secretary of Commerce of
Commerce and Trade, R. Brian Ball. Agency Heads may have their Procurement Director or SWaM Champion
accompany them for the meeting.

101 N. 14th Street, 11th Floor • Richmond, Virginia 23219 • (804) 786--6585 • Fax (804) 786-9736

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