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Forum: The Stimulus Bill and the Minority Contractor

Page history last edited by Faye Anderson 14 years, 4 months ago

Draft Report

Prepared by Faye M. Anderson

Founder, Tracking Change Wiki

 

On Tuesday, August 4, 2009, the Black Leadership Forum (BLF) and the National Conference of Black Mayors (NCBM) hosted a forum, “The Stimulus Bill and the Minority Contractor,” at the headquarters of the National Community Reinvestment Coalition in Washington, DC.  The event was co-moderated by Angela Johnson, Special Assistant to the BLF Executive Director, and Tim McNeill, NCBM Director of Policy and Partnerships.

 

The goal of the forum was to provide information and resources to help ensure minority contractors have a fair opportunity to compete for stimulus contracts.

 

Angela Johnson, Black Leadership Forum

BLF links leadership to legislation.  The event was pulled together in less than a week.  The turnout reflects the minority business community’s interest and concerns about implementation of the American Recovery and Reinvestment Act (ARRA).

 

Tim McNeill, National Conference of Black Mayors

A lot of our businesses operate in our communities.  We must get stimulus opportunities to help rebuild and stimulate our communities.  We need to make sure large businesses don’t scoop the money up.  We need to get contracts to minority-owned businesses that will bring the money back to our communities. 

 

No matter how many opportunities the President puts out there, we have to be ready to compete.  To be successful, we need to collaborate, collaborate, collaborate.  We need to work together.

 

Tim Reid, Co-Founder, New Millennium Studios

The Emmy-nominated actor, director and producer focused on the importance of marketing and branding in a world that is ruled by the perception of things.  Reid asked: “How does one compete and brand oneself today?  The reality of things has been lost to perception.  How can you create trust in what you do?”

 

Contracting officers don’t know that we exist.  The perception of minority businesses is that they are irrelevant and untrustworthy.  To change that perception, you have to find ways to communicate who you are and what you do, and be in control of your perception.

 

The digitization of content has made possible the democratization of brands.  You can use social media, e.g., Twitter, Facebook, blogs, etc., to create and distribute your own perception and brand identification.  New Millennium Marketing and Advertising assists small businesses in building their brands.

 

Randy Moore, President & CEO, RLM Communications, Inc.

RLM is an 8(a), service disabled veteran-owned small business with 150 employees in 10 states, and Iraq and Afghanistan. The impact of the stimulus package has been to increase access to capital.  Moore said, “You have to have money to fuel that engine … You have to be prepared to carry the load for 120-plus days.”

 

The stimulus package provides new employee hiring incentives through extension of the Work Opportunity Tax Credit, as well as small business tax relief.

 

The ARRA also establishes two new loan programs.  America’s Recovery Capital Loan Program (ARC) provides loans of up to $35,000 for struggling businesses facing immediate financial hardship.

 

The Patriot Express Pilot Loan Initiative provides loans of up to $500,000 for veterans and members of the military community.

 

Michael “Mike” Roberts, Chairman & CEO, The Roberts Companies

The Roberts Companies is a $990 million portfolio of successful companies that includes real estate, hotels, and radio and TV stations.

 

Roberts rejects the notion that he’s the Donald Trump of St. Louis, saying: “Black folks don’t need to be defined by someone else. We define ourselves in our own space.”

 

The stimulus money is positioned so that minority businesses can develop their community.  He said we need more direct pipelines to find out where the dollars are going.

 

Minority entrepreneurs should become “actionaires”; take their dreams and ideas and pursue them with confidence, authenticity and bravado.  “Fear is nothing more than a mental construct … Go for it.  What do you have to lose?”

 

For more on Roberts’ business philosophy, you can purchase his book, “Action Has No Season: Strategies and Secrets to Gaining Wealth and Authority.”

 

Edward DeSeve, Special Advisor to the President, Assistant to the Vice President and Special Advisor to the OMB Director for Implementation of the ARRA

The nation has lost almost five percent of the jobs since the recession began in December 2007.  The ARRA has three phases:

 

Rescue:

  • Assist those most hurt by the recession
  • Assist states with fiscal stress

 

Recovery:

  • Preserve and create jobs
  • Increase economic activity

 

Reinvestment:

  • Support development of new technology to promote economy
  • Renew existing infrastructure

 

We are still in the rescue phase of assisting those most in need.  The reinvestment phase will lay the foundation for the future.  The legacy of the ARRA will be increased investment in technology, including broadband and health IT.

 

Ginger Lew, counselor to the SBA Administrator and liaison to the White House National Economic Council, is the point person for developing a strategy for ensuring small and minority businesses participate in the stimulus package. 

 

The Office of Budget and Management has issued guidelines that encourage the use of small and minority-owned businesses.  But there are limitations on what the federal government can require states to do.  For instance, the federal government cannot put local hiring agreements in place or mandate minority-business goals.

 

Under Section 1512 of the ARRA, states must report individual contract information on October 10.

 

Click here for DeSeve’s slides on minority businesses and the ARRA.

 

David Hinson, National Director, Minority Business Development Agency (MBDA),  U.S. Department of Commerce

MBDA was created in 1969 by Executive Order 11458 signed by President Nixon.  The agency is singularly focused on helping minority businesses grow, gain access, and build relationships. 

 

MBDA’s key initiatives include:

 

  • The Strategic Growth Initiative – focuses on sustainable business growth and development beyond the micro-enterprise stage. 
  • The Business-to-Business Linkage Forums – promotes joint ventures, strategic alliances and teaming solutions among minority businesses for improved competitiveness with respect to larger contracts and financial opportunities. 
  • Access to Capital Initiative – promotes innovative financing solutions for minority businesses to grow to size, scale and capacity.

 

Hinson is “reconfiguring” MBDA to provide minority businesses with resources and access to stimulus money at the state and local levels, which is where 70 percent of stimulus funds will be distributed.  He noted that President Obama and Commerce Secretary Gary Locke are committed to “ensuring minority-owned businesses have access.”

 

Hinson said, “We are here to help you, to support you.  What do you need to get business?”  He is committed to creating “economic parity.” 

 

Hinson said minority entrepreneurs need to develop a new business model.  There needs to be a shift from “organic growth” to growth through acquisition and strategic alliances.  The bottom line: “Come prepared to help us help you.”

 

Editor's Note: Click here for the transcript of my interview with Hinson conducted on Friday, August 7, 2009.

 

Brenda DeGraffenreid, Acting Associate Director, Department of Energy’s Office of Small and Disadvantaged Business Utilization

The Department of Energy’s Recovery Act funds are allocated as follows:

 

 

Click here for DeGraffenreid’s slides on the Department of Energy and the ARRA.

 

Calvin Jenkins, Deputy Director, Small Business Administration’s Office of Government Contracting and Business Development

The SBA sets national procurement goals for federal departments and agencies:

 

  • 23 percent to small businesses
  • 5 percent to woman-owned small businesses
  • 5 percent small disadvantaged businesses
  • 3 percent to service disabled veteran-owned small businesses
  • 3 percent certified HUBZone small businesses

 

The goals apply to federal stimulus contracts.  The ARRA provided no new authority for the SBA so the small business goals do not apply to the grants to the states. 

 

Jenkins noted the difference between the 8(a) and HUBZone programs.  The 8(a) Business Development Program is race-based.  By contrast, the HUBZone Program is place-based.  It’s not who you are; rather, it’s where you locate your business in underserved communities.

 

Small Business Prime Contracting Achievement and Small Business Procurement Scorecards are available here.

 

The speakers also included Aubrey Wilson, President & CEO of Robra Construction, Inc., and Kent Lamparter Hibbin, Small Business Specialist, U.S. Department of Energy.

 

Editor's Note: This is a draft report so please feel free to “revise and extend” your remarks.  Remember, it's about collaboration.

 

Next Steps

The Black Leadership Forum and the National Conference of Black Mayors will send e-blasts and convene regular meetings to ensure minority contractors have timely access to information and decision makers.  To have your name added to the distribution list, send an email to Angela Johnson.

 

Useful Links and Resources

African Americans and the American Recovery and Reinvestment Act

Source: The White House (May 2009)

 

Recovery.gov

 

Minority Business Development Agency

 

Small Business Administration

 

Small Business Loans

 

Department of Energy

 

FedBizOpps.gov

 

FedConnect

 

Business.gov

 

Federal Grant Opportunities under the Recovery Act

 

Track Stimulus Funding by County

 

News Stories

SBA bailouts draw little notice

Biggest companies rake in Recovery Act contracts

 

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