NJSBDC Boots on the Ground’ will Help NJ Comeback
February 25, 2013 (Newark, NJ) – New Jersey’s economy and businesses have received a double shot – Superstorm Sandy and the relentless recession. As Governor Chris Christie unveils his budget for fiscal 2014, the New Jersey Small Business Development Centers (NJSBDC) network urges lawmakers and the administration to maintain a bi-partisan effort in the state’s economic recovery and comeback.
Getting businesses back on track will require an even greater investment in 2013 – 2014. The state’s economy will be boosted by investments in small business assistance through the NJSBDC network, helping small businesses survive, maintain operations, and set the foundation for future expansion and job growth. The NJSBDC network has the capacity and expertise to assist with and impact Superstorm Sandy recovery efforts.
Since Superstorm Sandy, the demands for NJSBDC’s services have dramatically risen, with businesses seeking financial and operating assistance, especially at the NJSBDCs located in the ocean and coastal regions. Those include NJSBDCs at Brookdale Community College in Lincroft , serving Monmouth and Ocean counties; at Richard Stockton College in Atlantic City, serving Atlantic and Cape May counties; at Bergen Community College in Hackensack, serving Bergen County businesses; and at New Jersey City University in Jersey City, serving Hudson County businesses.
“The NJSBDC has been inundated with additional requests and calls for support by business owners in the hardest hit areas,” said Brenda Hopper, NJSBDC’s chief executive officer and state director. “In addition to our regular, core activities of assisting business owners with all sorts of development and growth issues, we are working with Sandy victims to get them running successfully again.”
One example is Bahrs Landing, an oceanfront restaurant in Highlands/Sandy Hook that tapped into NJSBDC’s services at Brookdale Community College following the storm. Bahrs Landing is a fourth-generation family business now run by father and son Ray and Jay Cosgrove. “We’ve seen a few storms in 96 years, but we have never needed disaster assistance,” said Jay Cosgrove.
Cosgrove said he was directed to NJSBDC by FEMA during a Highlands Business Partnership meeting. With the help of the NJSBDC at Brookdale Community College, Cosgrove submitted an application for a loan from the U.S. Small Business Adminsitration (SBA). “We’re hoping the loan will be approved because parts of the property are not insurable and the 4 percent interest rate is enticing,” Cosgrove said.
Bahrs employs 40 full-time workers year-round, and over 100 employees in the summer. A typical summer brings in up to 100,000 customers. Even though Bahrs Landing’s website boasts the restaurant is “still standing” (Bahrs reopened after 15 days), Cosgrove fears the long-term economic impact from the storm could be even more devastating than the physical damage to the property which includes a marina, and a second eatery called Mobys Lobster Deck.
“New Jersey’s comeback and economic revitalization in the aftermath of Superstorm Sandy can be bolstered by working with the NJSBDC network,” said Deborah Smarth, NJSBDC network’s chief operating officer and associate state director. “Our program has boots on the ground’ with NJSBDC’s extensive statewide infrastructure and cadre of business consultants, an accredited program governed by national best practices and built-in oversight and transparency required by the Governor and State Legislature,” Smarth added.
Delivering comprehensive services to those businesses that need it on the ground – in the shore and coastal regions from Ocean Avenue and Main Street to technology parks and research hubs – is at the core of what the NJSBDC network does best. And it never strayed from its commitment and passion to assist small businesses and entrepreneurs even during the most severe state budget cuts.
“We had another banner year in 2012,” said Hopper. “Our impact speaks for itself and our numbers are strong, historically.”
“Our network’s assistance resulted in NJSBDC’s small business clients creating and retaining jobs and provided them with the opportunity to maintain and grow their businesses even in these most challenging times,” added Smarth.
In 2012, NJSBDC provided one-on-one counseling to 5,730 small business clients, helping them to create and save 10,745 jobs.
According to the U.S. Bureau of Labor Statistics, New Jerseys economy in 2012 created 48,000 jobs, including 46,100 private sector jobs between December 2011 and December 2012, the most jobs in any year since 2000.
NJSBDC operates regional centers at 11 locations on university and college campuses throughout the state. Last year, the State Legislature and Governor maintained stable funding for the NJSBDC program at $250,000. This amount is 75 percent less, however, due to prior state funding reductions to the NJSBDC program since its $1 million allocation in fiscal year 2007-2008.
As a result of SBA, state government, and other leveraged funding, the NJSBDC network delivered 20,712 total counseling hours; 632 NJSBDC clients started a new business; NJSBDC helped its clients access $64.8 million in financing (loans and equity) in 2012.
The program also sponsored more than 820 business training seminars at which more than 10,000 business owners and entrepreneurs attended.
The NJSBDC program leverages federal and state funding and other grant/private sponsorships to maximize resources for the small business sector. In order to obtain its full federal funding amount, which is based on population, the network must meet the dollar for dollar match requirement. State funding is counted towards that match requirement.
About NJSBDC
This non-profit network is a federal-state-educational partnership. Its expert staff and business practitioners help small business owners and entrepreneurs with every stage of business development and growth. The network headquarters is located at the Rutgers Business School in Newark. Its major funding partner is the U.S. Small Business Administration. The New Jersey Business Action Center is an additional funding partner of the NJSBDC program. The NJSBDC network is an accredited member of the national association of SBDCs, with more than 1,100 centers and satellite offices throughout the country serving and assisting small businesses and saving and creating jobs across the nation. For more information, visit www.njsbdc.com.
