Valley Business Assistance Center Loses State Funding

The loss of state funding for the Small Business Development Center at College of the Canyons could mean fewer programs and consulting services aimed at small business owners and entrepreneurs. Director Steve Tannehill isn’t ready to go that route just yet as financing for the center is solid through the end of the year. Still, Tannehill admits it will be a challenge replacing money the California Community Colleges Chancellor’s Office had been providing the past few years. The state’s contribution for the center’s business assistance and young entrepreneur programs went from $100,000 two years ago to zero for the fiscal year starting July 1. While the center has been “blessed” with local sponsors – municipal governments, banks, prominent Santa Clarita Valley businesses – their financial support tends to come in the $1,500 to $10,000 range, far less than what the Chancellor’s office gave, Tannehill said. “The challenge is in growing local sponsors and trying to find a sponsorship to replace those lost dollars,” he added. The center has operated out of the collage for nearly four years serving business owners and entrepreneurs with counseling, access to financing, and technical assistance from the 15 counselors who are experienced business people. After gaining a hold in the Santa Clarita Valley, the center in the past year has made an effort to expand its programs into the San Fernando and Antelope valleys. In 2009 more than 2,800 small business owners and entrepreneurs received counseling from the center; 40 new businesses were started and 150 jobs created. New tasks A year ago, business owners came to the counselors wanting tips on just how to survive the recession. In marked contrast, this spring counselors are giving assistance to start ups and advice on increasing profit margins, access to capital and buying assets or outright acquiring struggling competitors. Considering the important function the College of the Canyons-hosted center and others throughout California serve, state officials would have spared it from a loss of money. But with the state in a budget crisis the Chancellor’s office needed to make cuts. A new program from the office to create business entrepreneur centers led to seven grants given to community colleges but none were in Los Angeles County. The Valley region’s center has fared better than others. The SBDCs serving Ventura and Santa Barbara counties, for example, had to shut down when all sources of funding dried up. Tannehill doesn’t expect that to happen at his center, saying that a $30,000 shortfall for the current fiscal year is close to being filled. Cutbacks possible As with any business, Tannehill recognizes that he has to work within a budget and if the amount that used to come from the state cannot be replaced the center will have to cut back on the 300 hours a month of counseling. “Fewer businesses will get benefits of our services,” Tannehill said. The loss of the state funding has not slowed the center’s efforts at market penetration throughout the Valley region and getting its name known by other business organization. Next month, the SBDC brings its programs to Calabasas, using space at the Civic Center and the Calabasas Chamber of Commerce. Chamber President and CEO Carol Washburn first heard of the center through flyers and emails and later was introduced to Ben Tenn, a senior counselor. Tannehill followed up with a visit to speak to chamber members. Both the chamber and City of Calabasas joined in as partners having recognized that area businesses would benefit from the services. “We saw it would be added value to their membership,” Washburn said.