Each year the Small Business Administration hosts National Small Business Week, a three-day conference in Washington, D.C., to honor the hard work and perseverance of small business owners from around the country, highlight lenders and large corporate sponsors, and toot its own horn. This year's event, which is taking place this week from May 17-19, featured a series of forums on such issues as the challenges of operating in a tough economy, innovation and technology, and using social networking sites as a business tool. There was also the small business awards in which five African Americans took the top spots. It was also an opportunity for the more than 400 attendees to hear from Karen Mills, the SBA's new administrator. In a keynote address delivered Monday morning, Mills announced details of a new temporary loan program, America's Recovery Capital, which will provide short-term, interest-free loans of up to $35,000 to cover principal and interest payments on non-SBA debt, such as mortgages; term and revolving lines of credit; capital leases; credit cards; and vendor, supplier, and utility bills. The funds will be disbursed within a period of up to six months and repayment will begin 12 months after the final disbursement. Following a 12-month deferral period, borrowers will have five months to repay their loans. "ARC loans are for viable businesses, meaning that the business must have an established history of good performance, but they are in a situation where they need a bridge over the troubled waters,†said Mills. Detailed guidance for lender training will be released by June 8, and the SBA will begin accepting loan packages from them by June 15. Anthony Wilkinson, president and CEO of the Oklahoma-based National Association of Government Guaranteed Lenders, recommends that both borrowers and lenders will need to act in haste if they want to participate in the ARC loan program, and provided a guesstimate that the funds could be depleted within 90 days. In addition to touting the ways in which the SBA has utilized the Recovery Act to increase small business lending and making its loan programs more attractive to financial institutions who've begun to increase their participation in the programs, Mills also cited ways in which the agency needs to improve. She said that the SBA is "gearing up for big changes,†and is working on plans to automate old paper-based systems and boost data transfer speeds to streamline the approval process, and is developing a new Web portal and customer database. Staff training, particularly for federal procurement officers, will also be a big priority, Mills said. One African American entrepreneur, who did not want to be named, said that staff training is desperately needed and inadequately informed procurement officers contributes greatly to the agencies ongoing dysfunction, which in turn hinders the efforts of minority businesses to win contracts. "There's a serious issue going on with procurement, so even though we have the vehicles, the technology and technical know-how, we still have difficulty getting government contracts,†he said. "Having people at the top who are providing guidance and oversight without understanding how acquisition works, is applied and implemented, creates a dynamic problem.†Riding Out the Tough Economy At a forum on successful business strategies in a tough economy, attendees seemed to prefer to ask questions about how they can tough out the economy than offer solutions. SBA representatives urged entrepreneurs to take advantage of the agency's Small Business Development Centers located around the country and other tools, such as SCORE business counseling services, advising that they can provide valuable technical assistance at various stages of their growth, not just when they're starting out. One entrepreneur pointed to adaptability as key business strategy. Her company produces skin therapy moisturizers that she realized were selling better in farm stores than in pharmacies.. Seeing an opportunity to market her product in such hardware stores, she contacted Lowes but was told "Great product, we love it, but we can't sell hand cream in a hardware store.†Realizing that the real problem was the packaging, she used an SBA loan to redesign it to enhance its visual appeal to gardeners and others who work with their hands. Today the product is sold in a number of hardware outlets, such as Lowes and Ace. "It all came back to adaptability,†she said. SBA Recognizes African American Entrepreneurs with Champion Awards [caption id="" align="alignleft" width="215" caption="Charles Baker, president and CEO of MCB Lighting & Electrical, received the Veteran Small Business Champion of the Year award."][/caption] The SBA Champion Award, presented during the agency's annual National Small Business Week, honors entrepreneurs who provide counseling, advice and support to other small businesses. This year, two African Americans were among the honorees. Charles Baker, president and CEO, MCB Lighting & Electrical in Owings, Md., and Veteran Small Business Champion of the Year, estimates that he's spent more than 4,000 hours in the past four years advocating on behalf of veteran-owned businesses and working with lawmakers to change legislation, create new laws and give vets greater priority in the procurement process. And as a former government employee who dealt with acquisitions and a current federal contractor, he's got a lot of advice to give–to businesses and agencies alike. With comfortable majorities in both chambers of Congress and a sympathetic White House administration, minority businesses haven't been this well positioned to take advantage of everything they and the SBA have to offer. But first, they've got to make some changes, says Baker. First, they need to get involved in what's going on at the SBA. Minority businesses, he says, are so busy chasing money that they're not fighting for opportunities. Second, learn the rules of the 8(a) program, procurement, and acquisition. "You can't participate in something if you don't understand the rules and the game that you're playing,†Baker counsels. Lastly, he says, minority business owners should form partnerships and strategic alliances to win contracts: "If you don't have capacity and capability, you've got to go find it.†During his tenure working in acquisitions for the Air Force, Baker implemented energy efficient lighting and holds four Department of Defense records for saving the government money. This has helped him in his own business, particularly during a time when energy efficiency is a priority and he estimates that his company has picked up approximately $8 million in business this year. Eddie G. Davis, principal of DaLite & Associates LLC and the Minority Small Business Champion of the Year award, works with 53 black-owned businesses in St. Louis, Missouri, through the Center for the Acceleration of African American Business. In addition to assisting them with financial management issues, he also offers technical assistance and provides mentors, for which he is paid a small stipend. "It's really a labor of love,†says Davis. The last few years have been tough, but business is beginning to turn around and Davis is hoping to win a contract through the government's economic stimulus program to continue his work helping other small businesses through these difficult times. "We're looking to identify sources of capital that we can control that some of these businesses need and that will be a big shot in the arm,†says Davis, who's also encouraged by the increases in the SBA's loan guarantees and surety bonding programs, which he says will make a big difference to all small businesses.