Enhancing SWaM Business Opportunities in Virginia

Minority Business Commission April 19, 2021 Jennifer L. Mayton, Interim Agency Director www.sbsd.virginia.gov

DSBSD AGENCY OVERVIEW ACCESS TO CAPITAL Virginia Small Business Financing Authority (VSBFA) ADVOCACY Legislation, Policy and, Facilitation BUSINESS DEVELOPMENT & OUTREACH Access to seminars, workshops, and events to grow and develop Virginia s small businesses CERTIFICATION SWaM (state program) and DBE (federal program) www.sbsd.virginia.gov

Economic Impact Job Creation SWaM Certification Program Virginia Operating Revenue Sales and Income Tax Collection DBE Certification Program www.sbsd.virginia.gov

Agency SWaM Spend Goals LEGISLATIVE CHANGES TECHNOLOGY CURRENT STATE There have been a number of legislative changes creating new SWaM certification designations that will count toward agencies 42% SWaM spend goals. Current designations include Micro, Small, Woman, Minority, Service Disabled Veteran, Historically Black Colleges and Universities, Employment Service Organizations, and Certain Federal Programs with Reciprocity . DSBSD captures agency spend through the Expenditure Dashboard Portal. It is located on the Hot Links of the agency website. The Dashboard captures spend data for all agencies and can provide that data by month, quarter, or year. This data is obtained from Cardinal, Bank of America, and Self Reported. EO35 was established and continued the Micro Business Designation, maintained a 42% Commonwealth Goal for SWaM Spend, and created a 50% goal for Construction/ Capital Outlay expenditures. These goals are captured and reported through the Expenditure Dashboard. www.sbsd.virginia.gov

Discretionary Spend The total dollars paid by state agencies to vendors for goods and services including construction through contracts or purchase orders resulting in the process of procurement. Payments to governmental entities, fees for services such as banking transactions, and payments that are not procurement related such as employee payroll, employee benefits, or utility monthly charges are not considered to be discretionary expenditures. www.sbsd.virginia.gov

SWaM Certification The Small, Women-owned, and Minority-owned Business (SWaM) certification program is a state program of the Commonwealth of Virginia. The purpose is to enhance procurement opportunities for SWaM businesses participating in state-funded projects. As of April 1, 2021, there were 4,920 certified minority-owned businesses in the SWaM program. www.sbsd.virginia.gov

DBE Certification The Disadvantaged Business Enterprise (DBE) certification program is a Federal program. The purpose is to increase the participation of certified DBEs in projects funded by the US Department of Transportation and other federal sectors. As of April 1, 2020, there were 2,926 certified DBEs in Virginia. www.sbsd.virginia.gov

Disparity Study SBSD commissioned a Disparity Study in February of 2020 The purpose of a Disparity Study is to evaluate the availability of women and minority owned businesses and compare that to the utilization of women and minority owned businesses in the contracting process The Disparity Study was complete in December of 2020 with a final report issued in January of 2021. www.sbsd.virginia.gov

Potential Remedial Measures HB5002 was introduced to address the 2020 Disparity Study findings The bill establishes a woman and minority spend goal of 23.1% The bill codifies the goals established in EO35 and the microbusiness designation The bill requires goal setting on individual contracts The bill creates a new division within SBSD to enforce compliance with goal setting and goal attainment www.sbsd.virginia.gov

BDOS Business One Stop The Business Development and Outreach Services division of SBSD has several offerings to help start-ups and existing businesses grow and scale their business. The Business One Stop portal allows businesses a centralized location to find step by step instructions on registering a new business in Virginia. The system provides information and key resources on obtaining business licenses as well as professional and occupational license requirements. Businesses are provided information about registering with the Commonwealth s electronic procurement system eVA as well as benefits of pursuing SWaM certification. www.sbsd.virginia.gov

BDOS Development Programs The Business Development and Outreach Services division located across Virginia provides development workshops and programs to include: Starting a Business in Virginia Selling to the Commonwealth eVA Basics eVA Lead Generation Financing Your Business Overview of SWaM Certification SWaM application assistance One-on-One Business Counseling Connecting with key resources in local and federal government Regional Connect events to meet Virginia government buyers Small Business Conferences NEW VIRGINIA: Scaling4Growth www.sbsd.virginia.gov

VSBFA Value Proposition Address the fundamental need for small business access to capital Spur small business economic growth and expansion Help community banks make loans to small businesses Help economic and industrial development authorities attract and retain small businesses Incentivize investors to invest in small businesses www.sbsd.virginia.gov

How VSBFA Creates Value We make direct loans to small businesses, not-for-profits and economic development authorities to spur economic growth and expansion We partner with banks to assist them in making loans to small businesses through credit enhancement programs We offer a strong return to investors that support small business growth and job creation We are a multi-jurisdictional bond issuer for the Commonwealth www.sbsd.virginia.gov

Rebuild VA Grant Program Total grants awarded 3,013 totaling $116,000,936 Equity awards - $58,949,861 Paper application awards - $909,758 Average grant amount - $38,500 Received more than 20,000 applications www.sbsd.virginia.gov

QUESTIONS? Connor Templeton Connor.Templeton@sbsd.virginia.gov www.sbsd.virginia.gov Jennifer L. Mayton Jennifer L. Mayton@sbsd.virginia.gov www.sbsd.virginia.gov Interim Agency Director Executive Assistant www.sbsd.virginia.gov