New Jersey Commerce and Technology Associations Are Calling On The State Legislature To Restore $1 Million to the New Jersey Small Business, 05/21/2008

Newark, N.J. – The Commerce and Industry Association of New Jersey (CIANJ) and New Jersey Technology Council (NJTC) are among the groups calling on the State Legislature to oppose Gov. Jon Corzine’s proposed budget cuts to the New Jersey Small Business Development Centers for fiscal year 2008-2009. If approved, the budget reductions would be a devastating blow to the services and funding needed to help small businesses survive and grow in the Garden State, doing the exact opposite of what the Governor’s economic growth strategy had called for, namely, small business as a strategic priority.

The proposed budget cuts would slash $1 million in state funding for the NJSBDC. "The economic impact of the NJSBDC network's assistance is felt directly around the state by small business owners who are assisted in starting or expanding their business operations at every stage of growth," said Deborah Smarth, NJSBDC Associate State Director. “This is why so many business organizations, including CIANJ and the NJTC, with whom we partner around the state, are offering their strong support in calling for the full restoration of state funding for this comprehensive small business assistance program."

At the CIANJ’s annual legislative dinner last week at the Sheraton Meadowlands Hotel in Rutherford, which was attended by legislators including Senate President Richard J. Codey and Senate Minority Leader Thomas Kean Jr., the group’s Board of Directors announced a resolution to promote full restoration of NJSBDC’s state funding. The recent action illustrates that CIANJ has recognized the impact the NJSBDC has on small businesses throughout the state.

“The NJSBDC is an essential and terrific organization that helps small businesses in New Jersey with very little resources,” says John Galandak, President of CIANJ. “To cut their funding would put the organization in peril. The return on the investment in the NJSBDC far exceeds the investment itself. Why would you undermine something that will generate additional tax revenue? For these reasons, we are urging the Legislature and the Governor to sign a budget in which funding for the NJSBDC is restored.”

“We are heartened by the CIANJ Board of Directors’ action in adopting a resolution to call for the complete funding restoration for our small business assistance program," said Brenda Hopper, NJSBDC State Director. “The thousands of business owners we serve each year through counseling and training are also making their voices heard by sending their correspondence to state legislators to restore funding for this program."

In addition, The New Jersey Technology Council has announced its support for the restoration of the state funding for the NJSBDC. “The NJSBDC plays an integral role in assisting, supporting and nurturing many of our technology members. The NJSBDC has provided an invaluable resource, which I can’t believe may not exist [if the funding is cut],” says Maxine Ballen, president of the New Jersey Technology Council. “The NJSBDC is a unique resource to the many technology members we represent, and I can't imagine life without them.” She noted that the NJTC has posted a letter of support on its Web site for restoration of the NJSBDC funding in the budget. “We’ve also urged all of our members to send letters and contact their elected officials about this,” says Ballen. “We would be willing to go to Trenton and testify if the NJSBDC feels that would be helpful. Whatever the NJSBDC needs, we’re here to help and assist.”

Meanwhile, NJSBDC leaders say it’s imperative this funding isn’t cut from the budget. “The governor’s proposed budget (Fiscal Year 2008-2009) is de-funding the NJSBDC non-profit program,” says Smarth. “If this isn’t stopped, New Jersey will be the only state not to provide some form of state investment in the SBDC program--a nationally renowned program created by Congress--which leverages other funding support and maximizes resources for small business.”

With the potential loss of $1 million in state funding, the NJSBDC network will lose $832,000 in additional federal funding. “The effects of these actions would drastically cut counseling, training and all technical assistance to small business owners by the various regional (NJSBDC) centers throughout the state,” Smarth said.

In 2007, the NJSBDC network, which includes 11 centers in the state, assisted almost 22,000 business owners. The network helped clients receive $36.5 million in financing (loans and equity investment), and almost $2 million in grants were received by science-technology companies through NJSBDC’s technology commercialization program last year. In 2007, the network helped clients receive $64.48 million in procurement contracts (federal, state, private/commercial), and helped its clients create and retain 12,737 jobs--almost 1,000 were newly created positions.

About NJSBDC The NJSBDC network (www.njsbdc.com) is the premier provider of comprehensive services and programs for small business in New Jersey. The organization helps businesses expand their operations, manage their growth or start ventures. Expert staff and practicing business consultants help established small business owners and aspiring entrepreneurs develop business plans, find financing, identify new markets and expand their operations.

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