SBA Update
SBA Releases Small Business Economic Report—The U.S. Small Business Administration’s Office of Advocacy has released a new report on the state of small business and its contributions to the economy. The Small Business Economy, 2004, which analyzes 2003 data, focuses on economic trends and indicators, regulatory issues at the federal, state and local levels, innovation and technology transfer, and government procurement and small business financing data.

The report found that small business led the way as the economy gained momentum during 2003, but strong economic growth will require more entrepreneurial activity.

Among the report’s highlights are that the number of employer firms increased by 0.3 percent over the year. The number of unincorporated self-employed businesses increased by 3.7. Home-based businesses make up 53 percent of the small business population and serve as incubators for many growing businesses. Also, some of the country’s best-known companies are university spin-offs, which can have a dramatic effect on the economy of a region.

The full report may be viewed at http://www.sba.gov/advo/stats/sb_econ2004.pdf.

Study Focuses on Veterans’ Business Ownership—The Office of Advocacy has released a study showing that American veterans have a strong entrepreneurial spirit. Twenty-two percent of veterans are either purchasing or starting a new business or are considering doing so, according to Entrepreneurship and Ownership in the Veteran Population.

More than one third of veteran entrepreneurs and business owners had gained skills from their active duty service that were directly relevant to business ownership. Prior business ownership and employment experience had a positive impact on an even higher percentage of veteran entrepreneurs and current business owners than did military experience.

For a copy of the complete report, visit www.sba.gov/advo.

SBA Reports Record Demand for Loans—From October 1 to October 22, the SBA has approved 6,215 loans totaling $1.036 billion in its flagship 7(a) loan guarantee program.

With the net of carry-over loan applications received before October 1, the SBA approved 4,669 loans for $659 million. That compares to 4,205 loans approved for just under $644 million for the same period last fiscal year. Excluding carry-over applications, the average daily loan volume is about $50 million, higher than during the same period last fiscal year.

The 7(a) program now is at zero subsidy, becoming self-supporting through fees paid by the borrowers and lenders. In fiscal year 2004, which ended September 30, the SBA disbursed 74,825 loans for $12.5 billion in the 7(a) program. It also backed 8,168 loans worth $3.9 billion under the 504, or Certified Development Company, program.

Chamber Names New Executive Committee
The Greater Kansas City Chamber of Commerce has named a new executive committee: Nelson Mann, chairman of the board; Tom Bowser, first vice chair; John Bluford, second vice chair, Robert Regnier, treasurer. Various economic development organizations also will serve as members of the 2005 executive committee: Betsey Solberg, civic council; Jon Copaken, downtown council; John Laney, Economic Development Corporation; Tom Bowser and Kevin Barth, Kansas City Area Development Council.

Also among the new and re-elected board members are Steve Bernstein, vice president and COO, Bernstein Rein; Mike Burke, president, King Hershey; Peter J. deSilva, president and COO, UMB Bank; Frank Ellis, chairman, Swope Community Enterprises; Mark Ernst, chairman, president and CEO, H&R Block; Rick Krska, president, LaserCycle; Stuart Lang, president, First National Bank; Benny Lee, chairman and CEO, Top Innovations, Kitty McCoy, president, Enterprise Control Systems; Bryan Rogers, president, HCA; Grover Simpson, president, Kansas City Property & Casualty, Lockton Companies; and Debbie Smith, president, Humana.

In addition, several vice chairs were named to oversee the completion of a particular area of the Chamber’s strategic plan.

ATHENAPowerLink Taking Applications
Women entrepreneurs who have been in business at least two years can submit an application to receive free advice and coaching from area business experts through the ATHENAPowerLink program. Since the fall of 2000, 15 women and 14 businesses have participated. Each business is linked with a local panel of advisors who work with the entrepreneur for one year to provide expertise on different aspects of business development.

Applicants must own the majority of the company and actively manage it, have at least two full-time employees, one of whom may be the business owner. Annual revenues must be at least $250,000 for manufacturing or retail businesses and $100,000 for service businesses.

The program is a cooperative project of the ATHENA Foundation, the Kansas Women’s Business Center and the Missouri Women’s Business Center. A $35 non-refundable fee is required for application. Applications are due January 3, 2005. For more information, call (913) 492-5922 or (816) 235-6142.

KC Live! Project to Receive Financial Assistance
The Missouri Development Finance board voted unanimously to approve funding for Kansas City’s KC Live! project. This is the first project to receive financial approval under the Missouri Downtown Economic Stimulus Act (MODESA). The project encompasses part of the core downtown area. The overall plan will cost more than $320 million and will complement other redevelopment projects being planned for Kansas City. Through the MODESA funding, the state will provide about $119 million to the project over 25 years.

Friends University Relocates to Lenexa
Friends University has moved to the Pine Ridge Business Park at 8207 Melrose Drive in Lenexa. Located near the intersection of I-35 and 87th St., the new space has more than 16,000 square feet for offices and classrooms. The Foxridge Towers site has closed, but the facility near the Independence Mall will continue to offer programs for adult students, and the university’s Center on Family Living will expand its counseling services. For more information, call (913) 236-9191.

National Urban League, SBA Join Forces
As part of the Urban Entrepreneur Partnership announced by President Bush in July, the SBA and the National Urban League (NUL) have formed a partnership. Through their association, the two agencies will create an entrepreneurship network that will include one-stop centers for business training, counseling, financing and contracting in historically neglected and economically underserved urban areas.