Small Business Assistance, Washington State Department of Commerce (December 2, 2022)
Summary
Slides titled Small Business Assistance, presented to the Community and Economic Development Committee on December 2, 2022 by Washington State Department of Commerce staff Keith Swenson, Lynn Longan and Linda Womack. They list Small Business Recovery Activities for the 2021-23 Biennium with $512 Million to distribute and 47 different awards/programs. Selected funding includes a Hospitality Sector appropriation of $100 Million at Applicant Review and SSBCI Spending Authority of $138 Million, marked as needing a legislative increase. The slides state that the Small Business Innovation Fund had a $34.5 million appropriation with 124 applications received and 22 selected.
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“Small Business Assistance, Washington State Department of Commerce (December 2, 2022).”
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Small Business
Assistance
Community and Economic Development Committee
Keith Swenson
DEPUTY ASSISTANT DIRECTOR
OFFICE OF ECONOMIC DEVELOPMENT & COMPETITIVENESS
Lynn Longan
MANAGER, SMALL BUSINESS TRAINING & EDUCATION TEAM
Linda Womack
MANAGING DIRECTOR, SMALL BUSINESS FINANCE & COMMUNITY SUPPORT
DECEMBER 2, 2022
We strengthen communities
HOUSING INFRASTRUCTURE BUSINESS ENERGY
HOMELESSNESS ASSISTANCE
PLANNING COMMUNITY FACILITIES CRIME VICTIMS & COMMUNITY
PUBLIC SAFETY SERVICES
WASHINGTON STATE DEPARTMENT OF COMMERCE 2
Small Business Recovery
Grants, Loans & Technical Assistance
Small Business Recovery Activities
2021-23 Biennium
$512 Million to distribute
47 different awards/programs
• Grants
• Loans
• Technical Assistance
WASHINGTON STATE DEPARTMENT OF COMMERCE 4
Selected Small Business Recovery Funding
Description Appropriation Status
Working Washington 5 $70 Million Review & Distribution
Convention Centers $5 Million Review & Distribution
Working Washington – Border Businesses $4.4 Million Fully Distributed
Public Facility Districts $20 Million Fully Distributed
Hospitality Sector $100 Million Applicant Review
Small Business Innovation $34.5 Million Contracts Pending
SSBCI Spending Authority $138 Million Needs legislative increase
Small Business Disaster Relief $20 Million In Process
Tourism $12 Million Fully Distributed
SBRN Support and Loan Program $15 Million Loan RFP Pending
Microenterprise $4.4 Million Contract Executed
Arts, Heritage, Science & Culture $5 Million Review & Distribution
WASHINGTON STATE DEPARTMENT OF COMMERCE 5
Challenges remain…
COVID grants, technical assistance and resources drying up
• Federal support ending
• Need for capital, TA and trusted resources at an all-time high
Economic disruptors
• Workforce shortages
• Changing customer demands
• Supply chain issues
• Inflation
• Possible recession
WASHINGTON STATE DEPARTMENT OF COMMERCE 6
Washington’s small business climate
85.4% of all establishments in Washington are small businesses
42 average age of an entrepreneur
11.6 average age of Washington small business (45th nationally)
U.S. Bureau of Labor Statistics (BLS)
WASHINGTON STATE DEPARTMENT OF COMMERCE 7
Survival rate of small businesses
89.1% of Washington businesses make it through Year 1
40.4% make it to Year 5
18.3% are still around at Year 10 (National average: 34.5%)
U.S. Bureau of Labor Statistics (BLS)
WASHINGTON STATE DEPARTMENT OF COMMERCE 8
Why small businesses fail over time
• Insufficient cash flow
• Poor planning or no plan at all
• Lack of basic business skills/expertise
• Inability to shift from creator to leader
• Knowing when and how to grow
• Lack of intel to navigate roadblocks
WASHINGTON STATE DEPARTMENT OF COMMERCE 9
The state’s small
business strategy
Entrepreneur Led Economic Development (ELED)
• Focused on small businesses with <100 employees.
• Builds local economies from within rather than relying solely on outside
investment or recruitment.
• Activities are focused on the specific resources, programs and
expertise businesses need at each stage in lifecycle.
WASHINGTON STATE DEPARTMENT OF COMMERCE 11
Three critical stages in business lifecycle
Stage Employees Years in Business Typical Revenue
Startup 1 0-2 Little to none
Less than $1 million
Stage 1 2-9 3-5
Break even to small profit
$1 million to $50 million
Stage 2 10-99 5+
Profitable
WASHINGTON STATE DEPARTMENT OF COMMERCE 12
Startup Stage
1 employee 3 4 0 – 2 Years
FOCUS: Legal structure, licensing, supply chain, customer
acquisition, basic mechanics, market analysis
NEEDS: • General education and training
• Self-directed programs
• Classroom and group sessions
• Some one-on-one counseling
SUPPORT: • MyStartup365.com • Small Business • Washington State
• Small Business Resiliency Network Microenterprise
Development Centers (SBRN) Association (WSMA)
(SBDC) • Chambers • Other business owners
• Libraries • SCORE • Community colleges
WASHINGTON STATE DEPARTMENT OF COMMERCE 13
Strategy in Action4MyStartup365.com
Washington’s Small Business Training & Education Center
• 245,165 users served (2021-22)
• 380,226 pages viewed
• 76% new users
• 24% returning
• AI translation in 45 languages
Key Features:
4Entrepreneur Academy 4Small Business Playbook
4Creatives Academy 4Disaster Planning Guide
4Mastering Financials
WASHINGTON STATE DEPARTMENT OF COMMERCE 14
Stage 1
2 to 9 employees 3 4 2 – 5 Years
FOCUS: Day-to-day survival, mastering financials, growing
customer base, credit readiness, increasing efficiencies
NEEDS: • Self-directed education specific to core competencies
• Group learning around specific topics
• Individual counseling to address roadblocks
SUPPORT: • MyStartup365.com • Flex Fund • SBDCs
• ScaleUp! • State Small Business Credit Initiative • Peerspectives
• SBRN • Export Assistance • Mentorship
WASHINGTON STATE DEPARTMENT OF COMMERCE 15
Strategy in Action4ScaleUp!
Small group training for Stage 1 business owners
• 774 small business graduates
• 27 counties
• 65% women-owned
“ScaleUp! helped me hire a part-time
• 34% minority-owned
employee, and we met our three-month
• 8% veteran-owned
earning goal, with the last month being our
best month of business ever!”
New Spanish class launched in
September – 37 owners enrolled Patti Rowlson, Founder
WASHINGTON STATE DEPARTMENT OF COMMERCE 16
Stage 2
10 – 99 employees 3 4 5+ Years
Managing growth, refining strategy, addressing core
FOCUS: competencies, adapting to industry changes, finding
new markets, positioning for expansion
NEEDS: • Highly customized assistance
• Access to data and market analytics
• Access to peer networks, mentoring and capital
• Transforming from creator to leader
SUPPORT: • Thrive! • Export Assistance • SBDCs
• Executive Roundtables • Industry Sector Leads • Small Business
Administration
WASHINGTON STATE DEPARTMENT OF COMMERCE 17
Strategy in Action4Thrive!
Individualized consulting focused on specific roadblocks
• 30.5 jobs created*
• $10.9 million increase in revenue
• $146,000 in new state tax revenue
• $4.3 million in new investments
“After going through Thrive!, we grew our
$11.45 ROI for each $1 the state invests topline revenue by over 30% in 2020, which
is really a good result. What is even more
impressive is that we grew our bottom line
profit by over 900%.”
* Based on 10 companies reporting Rick Fowles, CEO
WASHINGTON STATE DEPARTMENT OF COMMERCE 18
ELED and Equitable Access
Study identified three specific needs of small business community:
Time
Trust
Technology
WASHINGTON STATE DEPARTMENT OF COMMERCE 19
Time: Small Business Innovation Fund
$34.5 million appropriation
• Extensive outreach
• 124 applications received / 121 evaluated
• 22 selected
• Total Ask: $252 million
• Applications received from every county
• 1/3 of funds going to rural counties
WASHINGTON STATE DEPARTMENT OF COMMERCE 20
SBIF Awards
# Applicant Name Requested Funds Applicant Location Type of Program
1 Clallam County Economic Development Council $1,263,141.50 Port Angeles Competitiveness Programs
2 Opportunity Council $1,041,419.50 Bellingham Accelerator
3 Economic Development Board for Tacoma-Pierce County $1,893,607.00 Tacoma Accelerator
4 Town of Odessa (109) $1,716,314.00 Odessa Improvements and Repairs
5 Spokane Independent Metro Business Alliance (SIMBA) $983,749.00 Spokane Competitiveness Programs
6 City of Tacoma $1,000,000.00 Tacoma Competitiveness Programs
7 City of Goldendale $1,036,800.00 Goldendale Improvements and Repairs
8 Latino Community Fund of Washington State $2,000,000.00 Seattle Accelerator
9 Washington Manufacturing Services dba Impact Washington $528,526.32 Bothell Accelerator
10 Port of Willapa Harbor $2,190,000.00 Raymond Incubator
Rainier Beach Community Empowerment Coalition dba Rainier Beach Action
11 $578,000.00 Seattle Accelerator
Coalition
12 Center for Inclusive Entrepreneurship $538,495.25 Seattle Incubator
13 Thurston Economic Development Council $539,319.00 Lacey Improvements and Repairs
14 Muslim American Youth Foundation $509,761.00 Burien Accelerator
15 Native Funds $519,664.40 Chelan Accelerator
16 Composite Recycling Technology Center (CRTC) $2,724,960.00 Port Angeles Other Initiatives
17 Chelan Douglas Regional Port Authority $1,000,000.00 East Wenatchee Incubator
18 U District Partnership $4,976,600.00 Seattle Improvements and Repairs
19 Tri-Cities Diversity & Inclusion Council $500,000 Richland Incubator
20 Colfax Downtown Association $2,259,820.00 Colfax Incubator
21 Multi-Ethnic Business Association d/b/a AHANA $2,000,000.00 Spokane Incubator
22 Downtown Walla Walla Foundation $636,250.00 Walla Walla Incubator
WASHINGTON STATE DEPARTMENT OF COMMERCE 21
Application
Locations
• 124 applications
received
WASHINGTON STATE DEPARTMENT OF COMMERCE 22
Type &
Service
Location
• 22 applicants
selected
WASHINGTON STATE DEPARTMENT OF COMMERCE 23
Trust: Small Business Resiliency Network
58,000 HOURS
of technical assistance
Provided assistance in
40 LANGUAGES
Outreach to
Assistance provided to
1 million
PEOPLE
small businesses
WASHINGTON STATE DEPARTMENT OF COMMERCE 24
Technology: Go Global
Supports underserved businesses in developing an online
presence, including e-commerce
• Applications in six languages
• Up to $4,000 per business
• Business connected to trusted, vetted
contractors
• 430 applicants
• 100 businesses selected in pilot
• 73% are minority/BIPOC/LGBTQ
WASHINGTON STATE DEPARTMENT OF COMMERCE 25
The work ahead…
ELED Strategy Buildout – Next 4 Years
• Increase access to capital
• Create credit building program
• Improve and standardize data collection
• Fill identified gaps in TA, training and
education
• Leverage and deepen existing partnerships
statewide
• Increase focus on Stage 2 businesses to
spur exponential growth locally
WASHINGTON STATE DEPARTMENT OF COMMERCE 27
The State’s Unique Role in ELED
• Creating an equitable, sustainable economy across state
• Providing trusted, actionable programs and resources that can be used
locally
• Providing access to data and information that is otherwise unavailable to
small businesses
• Identifying and addressing shifting economy needs, from emerging
industries to overseas market expansion
• Monitoring economic activity and recovery activities statewide to create a
diverse and inclusive economy
WASHINGTON STATE DEPARTMENT OF COMMERCE 28
Supporting This Work
Funding requests to:
• Continue small business programs and
technical assistance
• Expand in-language training and education
• Help local businesses secure state and
federal contracts
• Build upon regional and global competiveness
strategies
• Assist small businesses in recovering from disasters
WASHINGTON STATE DEPARTMENT OF COMMERCE 29
Thank you!
Keith Swenson
DEPUTY ASSISTANT DIRECTOR, OFFICE OF
ECONOMIC DEVELOPMENT & COMPETITIVENESS
Keith.Swenson@commerce.wa.gov
www.commerce.wa.gov
Lynn Longan
MANAGER, SMALL BUSINESS EDUCATION
& TRAINING TEAM
Lynn. Longan@commerce.wa.gov
Jasmine Vasavada
DIRECTOR OF GOVERNMENT AFFAIRS AND POLICY
Linda Womack Jasmine.Vasavada@commerce.wa.gov
MANAGING DIRECTOR, SMALL BUSINESS 360.480.6622
FINANCE AND COMMUNITY SUPPORT
Linda.Womack@commerce.wa.gov
Dave Pringle
Robb Zerr LEGISLATIVE RELATIONS MANAGER
SENIOR MANAGING DIRECTOR
SMALL BUSINESS TRAINING & EDUCATION, Dave.Pringle@commerce.wa.gov
STATE MARKETING & TOURISM
Robb.Zerr@commerce.wa.gov 360.918.6033
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