Regional advocates are the chief counsel's direct link to local business owners, state and local government agencies, state legislatures and small business organizations. Covering the 10 federal regions of the nation, regional advocates help identify new issues and problems of small businesses by monitoring the impact of federal and state regulations and policies on the local business communities within their regions. In addition, the Office of Advocacy employs one advocate specifically to focus specifically on rural issues. Additional information can be found at www.sba.gov/advo/region.html.
Telecommunications Act
When the Federal Communications Commission implemented the Telecommunications Act, it changed universal service coverage for rural areas. The FCC chose to recognize only one phone line as essential in rural areas. Consequently, all rural small businesses would have been charged excessive fees for additional lines (for example, for computers and , fax machines or other technologies, etc.). Bringing together members of the National Rural Development Partnership's state rural development councils, the rural regional advocate garnered support for Advocacy's position that this change was improper. Due to Advocacy's role in this issue, the FCC chose to leave universal service coverage unchanged for rural areas.
Distribution of Excess Government Computers to Rural Communities
Advocacy and the rural regional advocate discovered that the Department of Health and Human Services (HHS) had a warehouse of used computers that were no longer in use by the agency. Citing a need for at least one computer in each rural community, Advocacy arranged for the transport of these machines to a storehouse where they could be distributed to rural communities. In partnership with the Rural Conservation and Development Office of the U.S. Department of Agriculture, Advocacy distributed the computers to needy rural communities. In some cases, the donation allowed the community, for the first time, to computerize its 911 service.
South Carolina Rural Disaster Loan
The Rural regional advocate worked with farmers in South Carolina who had received rural disaster loans. These farmers planned to upgrade their equipment but couldn't because it had been used as collateral. The advocate worked with the farmers to have the collateral released.
Small Business Incubator
In Ohio, the rural regional advocate worked with the State Rural Development Council to create a small business incubator that would allow farmers to process their own commodities.
First Rural Small Business Investment Corporation
In Oklahoma, state law prohibited the banking community from becoming involved in Small Business Investment Corporation (SBIC) activities. The rural regional advocate worked with the state legislature to change this law, thereby allowing small rural banks to form SBICs. Because of this work, the first rural SBIC was formed in Durant, Oklahoma.
Cotton Brokers Eligible for Disaster Loans
Cotton brokers, who make contracts with cotton producers to sell the product, have traditionally been not been eligible for disaster loans if something happens to the cotton crop. During a recent growing season, cotton brokers made contracts for long staple cotton. Growing conditions were such, however, that only one-half inch cotton could be harvested. The cotton brokers ultimately sold the cotton for a loss because of the contract. The Office of Advocacy worked with cotton brokers to change their eligibility status for disaster loans.
Rural Co-ops
The rural regional advocate is currently working with the states of Nebraska, Kansas, Oklahoma, Texas, North Dakota, and South Dakota to explore the possibility of creating small rural co-ops that are eligible for small business loans.
Community Reinvestment Act (CRA) Credit for Small Rural Communities
The rural regional advocate is working with the Federal Reserve Bank of Salt Lake City to explore how to better structure lending programs to assist small rural communities and small rural businesses. The Federal Reserve is currently considering a different form of Community Reinvestment Act (CRA) CRA (Community Reinvestment Act) credit for these communities.
Information courtesy of the Small Business Administration.
