Editorial · May 8, 2022
Small Business Development Centers: Free Advice for Owners
Small business development centers give owners free, one-on-one business advice. If you run a small company or plan to start one, you can book a session at no cost. This guide explains what the centers do, who can use them, where the idea came from and how to get started.
What small business development centers are
A small business development center, or SBDC, is a local office that helps owners and would-be owners. Most people use the short name SBDC. America's SBDC is the group that represents the national network. It says the centers are hosted by universities, colleges, state economic development agencies and private partners. Congress pays for part of the cost through a partnership with the U.S. Small Business Administration (SBA).
The network is large. America's SBDC says there are nearly 1,000 local centers across the United States and its territories. It calls the network the most comprehensive small business assistance network in the country. Most owners live within reach of one.
What the advice covers
The centers offer no-cost business consulting and low-cost training. America's SBDC describes the consulting as free and face to face, and the training as at-cost, on a variety of topics. In plain terms, you do not pay to sit down with an advisor. You may pay a small fee for a class or workshop.
Topics differ from one center to the next, so ask what your local office covers. Good questions to bring include how to organize your books, how to price what you sell and how to plan the next twelve months of cash.
Think of an advisor as a coach, not a lender. The advisor will not hand you a check. The advisor can help you get your numbers ready so you can talk with a bank or other lender with more confidence.
Who can use a center
The centers serve new and existing businesses. You do not need a company yet. Many people visit before they register a name, sign a lease or buy equipment. Others come years later because sales have stalled or they want to grow.
Because each center is hosted by a different school, agency or partner, the mix of help can differ from town to town. Call or visit the website of the center near you to see what it offers right now.
How the program began
The idea is older than most owners think. In 1975, William Flewellen Jr. of the University of Georgia and Reed Powell of California State Polytechnic University at Pomona began talking about a program that would join higher education, government and the private sector to support small business. Both served on the SBA National Advisory Board.
In May 1976, during Small Business Week, SBA Administrator Mitchell Kobelinski announced plans for a University Business Development Center program. The SBA funded a pilot at Cal Poly Pomona in December 1976. Seven more universities in seven states joined in the first half of 1977. Each pilot school received $40,000, except Rutgers University, which received $70,000.
Senator Gaylord Nelson, who chaired the Senate Small Business Committee, introduced the Small Business Development Center Act of 1977 on March 22, 1977. Twenty-nine senators ended up cosponsoring it. The first version did not become law, and President Jimmy Carter vetoed an omnibus bill that carried the idea in October 1978 for reasons unrelated to the program. Nelson tried again in 1979. President Carter signed the final law, Public Law 96-302, on July 2, 1980. In 1979 the program, by then called SBDC, was funded in 16 places, including the District of Columbia.
A recent example from Small Business Week
National Small Business Week ran May 1 to 7 this year. The SBA announced it on March 15 with the theme "Building a Better America Through Entrepreneurship." The SBA and SCORE hosted a free virtual summit from May 2 to 5.
On April 13 the SBA named the Louisville Small Business Development Center in Kentucky as this year's winner of its Small Business Development Service Excellence and Innovation Award. The SBA said that when counseling moved to virtual meetings, the center used its online scheduling program and introduced the software to the state network, where all centers adopted it. The center also launched COACH CONNECT, a webpage where clients can view a coach's skills, contact the coach or schedule a meeting. The story shows how one center changed the way it works to reach more owners.
How to book your first session
Follow these steps. They take about ten minutes.
Find your center. The America's SBDC website has a "Find Your SBDC" link. Look for the center that serves your state or county.
Ask to schedule a session. Contact the center by phone, email or its website and say you would like a free consultation. Ask whether it meets in person or by video.
Bring the basics. Have a short description of your idea or company, your goals and any numbers you have. Rough figures are fine. Write down the three questions that worry you most.
Follow up. After the first meeting, ask what to do next and when to check back. Advice works best when you return with progress to review.
If your center has no opening this month, ask about workshops or a waiting list. You can also ask whether another center in your state can help sooner.