Thursday, July 30, 1998 | 11:15 a.m.
Las Vegas blacks and Hispanics make up some 23 percent of the local population, but own just 8.5 percent of the businesses in the city. The Small Business Administration wants to help more of these minorities get started in business and has signed contracts guaranteeing to help.
The June agreements between the Las Vegas District Office of the SBA and two local minority business organizations are intended to increase financing and technical assistance to these "historically underserved" groups.
Historically underserved is the SBA's term for those groups, including women and minorities, who have traditionally had difficulty obtaining loans and starting businesses.
John Scott, district director of the SBA, signed "Memorandums of Understanding" with Otto Merida, executive director of the Latin Chamber of Commerce; and Dorothie Clark, president of the Urban Chamber of Commerce, formalizing the partnerships between the SBA and these groups.
The memorandums laid out terms of cooperation intended to expand capital access, procurement opportunities and technical support to Hispanic and black-owned small businesses.
These local agreements were spawned by similar documents signed in May by the national administrator of the SBA, Aida Alvarez, and three national organizations representing black and Hispanic interests.
The organizations involved are the U.S. Hispanic Chamber of Commerce, the National Black Chamber of Commerce and the Minority Business Enterprise Legal Defense and Education Fund.
One of the prime goals stated in each of these agreements is to "work together to increase the number and dollar amount of SBA-guaranteed loans to (minority) businesses." Specific values for the intended increases are not included in the local agreements.
Part of the SBA's work is to back loans to small businesses in order to increase their access to funds, and the national agreements came as part of an SBA initiative to target specific groups.
Alvarez has set national goals of guaranteeing $2.5 billion in loans to Hispanic-owned businesses over the next three years, three times the amount loaned to this group in 1992; and backing $1.4 billion in loans to black business owners by 2000, four times the amount loaned in 1992.
Based on these national directives, district offices have been issued benchmarks to measure their performance. Las Vegas District office officials say they have done well in meeting and exceeding these goals, and it expects the Memorandums of Understanding to further its work.
The goal for the black community in Las Vegas this fiscal year was eight loans, but late in June the SBA had already backed 13. The goal for Hispanic-owned businesses is 17 loans, but the SBA has already exceeded that mark by three loans.
In addition, the local goal for Asian Americans was 25 loans, for Indians 5, for women 83 and for veterans 50. While the SBA had exceeded the goals for Asians by 2 and for women by 22, it was short in the remaining categories.
The goal for the total number of local SBA-backed loans this fiscal year is 309 -- 300 have already been delivered. The SBA's fiscal year ends on September 30.
According to an internal memo these goals are "distributed by district territories in accordance with demographic data and adjusted historical market penetration rates."
The agreements should make lenders more aware of the opportunities that Hispanic and black businesses represent, said Roger Hopkins, spokesman for the local SBA office.
The SBA and its two new partners must participate in a "Meet-the-Lender" forum, scheduled for next week, as spelled out in the memorandums.
The forum is intended to promote SBA services and to strengthen the connection between lenders and minority businesses, said Hopkins.
Merida spoke fondly of the long-term relationship the Latin Chamber has shared with the SBA. He said his organization sets up about five appointments a week between its members and SBA representatives.
Merida said the agreement is a formal means of strengthening his organization's connection with the SBA and SBA resources.
Clark called the agreements "a very proactive step" on the part of the SBA.
In the past the SBA has been viewed by some as a difficult agency to deal with and a barrier to small business, Clark said.
But that changed when John Scott became district director in December 1995, she added. Clark said the current administration does a tremendous job.
She felt the signing was a manifestation of the SBA being more attuned to the changing nature of small business. It now recognizes the diverse base of individuals it serves, she said.
Clark explained the agreements are written broadly, allowing both sides flexibility in meeting the broad goal of increasing opportunities for minority-owned small businesses.
"(The agreement) is limited only by our willingness to work together," she said.
An internal memo from the SBA's national director justified focusing on the Hispanic and black communities using 1992 census data, which revealed these groups were under-represented in the business community.
Census figures show that in Las Vegas, blacks owned roughly 3.5 percent of all businesses in Las Vegas, but made up more than 11 percent of the population. Hispanics were under-represented in business as well, making up more than 12 percent of the population but owning roughly 5 percent of all businesses.
The SBA's commitment to these communities has not come at the expense of other minority groups based on goal attainment and comments from other minority leaders.
Hopkins said Indians have faced a "considerable struggle," but they have lacked an established organization. To alleviate the problem, the SBA recently helped a group of local Indian business leaders begin the American Indian Chamber of Commerce of Nevada.
Robert Young, president of the Asian Chamber of Commerce, was not aware of the local agreements, but said Scott and the SBA have been friends to his organization on a local level.
He said the Asian omission makes sense in the context of the national agreements because Asian organizations lack power in Washington.
Young was pleased with the SBA's support on local matters. He described the agency as very cooperative and very supportive, citing an event coordinated by the SBA and the Asian chamber in May celebrating Asian Pacific Heritage month.
Hopkins explained that while the Asian community has certainly faced challenges, it has fared well, becoming a very fast growing segment of the business population.
The SBA's commitment to aiding small disadvantaged businesses comes at a time when Clark County is expected to become increasingly diverse as it grows.
Preliminary estimates released by State Demographer Dean Judson's office in May indicate the Hispanic and black communities will make up an increasing percentage of the county's population in the years to come.
The report says that today 85.3 percent of the county's population is white, 10.3 percent is black, 1.0 percent is "American Indian, Eskimo, and Aleut" and 3.5 percent is "Asian or Pacific Islander."
Hispanics make up 13.6 percent of residents, the report said. A person of Hispanic origin can be of any of these four races in the classification scheme.
Judson projects blacks will make up 11.0 percent of the population by 2004, while the Hispanic population will increase to 15.2 percent of the total. The Asian population will decrease by one tenth of a percent and the Indian percentage should not change during the period.
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