oversight

Entrepreneurial Assistance: Opportunities Exist to Improve Programs' Collaboration, Data-Tracking, and Performance Management

Published by the Government Accountability Office on 2012-08-23.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

              United States Government Accountability Office

GAO           Report to Congressional Committees




August 2012
              ENTREPRENEURIAL
              ASSISTANCE
              Opportunities Exist to
              Improve Programs’
              Collaboration, Data-
              Tracking, and
              Performance
              Management




GAO-12-819
                                                August 2012

                                                ENTREPRENEURIAL ASSISTANCE
                                                Opportunities Exist to Improve Programs’
                                                Collaboration, Data-Tracking, and Performance
                                                Management
Highlights of GAO-12-819, a report to
congressional committees




Why GAO Did This Study                          What GAO Found
Economic development programs that              Federal efforts to support entrepreneurs are fragmented—including among 52
effectively provide assistance to               programs at the Department of Agriculture (USDA), Commerce, and Housing and
entrepreneurs may help businesses               Urban Development (HUD) and the Small Business Administration (SBA). All
develop and expand. GAO focused on              overlap with at least one other program in terms of the type of assistance they
52 economic development programs,               are authorized to offer, such as financial (grants and loans) and technical
with an estimated $2.0 billion in               (training and counseling), and the type of entrepreneur they are authorized to
funding, at Commerce, HUD, SBA, and             serve. Some entrepreneurs struggle to navigate the fragmented programs that
USDA that support entrepreneurs. In             provide technical assistance. For example, some entrepreneurs and technical
response to a statutory requirement,
                                                assistance providers GAO spoke with said the system can be confusing and that
this report discusses (1) the extent of
                                                some entrepreneurs do not know where to go for assistance. Collaboration could
overlap and fragmentation, the effects
on entrepreneurs, and agencies’
                                                reduce some negative effects of overlap and fragmentation, but field staff GAO
actions to address them; and (2) the            spoke with did not consistently collaborate to provide training and counseling
extent of tracked program information           services to entrepreneurs. The agencies have taken initial steps to improve how
and whether these programs have met             they collaborate by entering into formal agreements, but they have not pursued a
their performance goals and been                number of other good collaborative practices GAO has previously identified. For
evaluated. To address these                     example, USDA and SBA entered into a formal agreement in 2010 to coordinate
objectives, GAO analyzed program                their efforts to support businesses in rural areas; however, the agencies’
information and interviewed agency              programs that can support start-up businesses—such as USDA’s Rural Business
officials in headquarters and selected          Enterprise Grant program and SBA’s Small Business Development Centers—
field offices, entrepreneurs, and third-        have yet to determine roles and responsibilities, find ways to leverage each
party entities, such as nonprofits, that        other’s resources, or establish compatible policies and procedures. Without
use federal grants to provide                   enhanced collaboration and coordination agencies may not be able to make the
assistance directly to entrepreneurs.           best use of limited federal resources in the most effective and efficient manner.
                                                Agencies do not track program information on entrepreneurial assistance
What GAO Recommends                             activities for many programs, a number of programs have not met their
GAO recommends that the agencies                performance goals, and most programs lack evaluations. In particular, the
and the Office of Management and                agencies do not generally track information on the specific type of assistance
Budget explore opportunities to                 they provide or the entrepreneurs they serve, in part because they do not rely on
enhance collaboration among                     this information to administer the programs. Rather, agencies may rely, for
programs, both within and across                example, on data summaries in narrative format, which cannot be easily
agencies; track program information;            aggregated or analyzed. According to government standards for internal control,
and conduct more program                        this information should be available to help inform management in making
evaluations. Commerce, HUD, and                 decisions and identifying risks and problem areas. GAO also found that 19
USDA provided written comments and              programs failed to meet their annual performance goals related to
each neither agreed nor disagreed with
                                                entrepreneurial assistance, including USDA’s Rural Business Opportunity
the recommendations. However,
                                                Grants, Commerce’s Economic Development/Support for Planning
USDA commented that the
recommendations were not explicit. In           Organizations, HUD’s Indian Community Development Block Grants, and SBA’s
the report, GAO provides specific               504 loans to finance commercial real estate. Programs could potentially rely on
actions that agencies can take to               results from program evaluations to determine the reasons why they have not
address each recommendation.                    met their goals, as well as to gauge overall effectiveness. However, the agencies
                                                lack program evaluations for 32 of the 52 programs. Therefore, information on
                                                program efficiency and effectiveness is limited, and scarce resources may be
                                                going toward programs that are less effective. In addition, without more robust
                                                program information, agencies may not be able to administer programs in the
View GAO-12-819. For more information,          most effective and efficient manner.
contact William B. Shear at (202) 512-8678 or
shearw@gao.gov.

                                                                                       United States Government Accountability Office
Contents


Letter                                                                                       1
                Background                                                                   3
                Fragmented Programs Overlap, and Agencies’ Efforts to
                  Collaborate Have Been Limited                                              5
                Agencies Lack Information to Track Program Activities and
                  Measure Performance                                                      19
                Conclusions                                                                28
                Recommendations                                                            29
                Agency Comments and Our Evaluation                                         29

Appendix I      Objectives, Scope and Methodology                                          37



Appendix II     Illustrative Examples of Economic Activities                               41



Appendix III    Performance Goals and Accomplishments for 52 Programs that Can
                Support Entrepreneurs, Fiscal Year 2011                                    47



Appendix IV     Additional Federal Programs that Can Fund Economic Activities              73



Appendix V      Evaluations of Programs that Can Support Entrepreneurs, 2000-2012          85



Appendix VI     Comments from the Department of Agriculture                                90



Appendix VII    Comments from the Department of Commerce                                   93



Appendix VIII   Comments from the Department of Housing and Urban Development              97




                Page i                                    GAO-12-819 Entrepreneurial Assistance
Appendix XI   GAO Contact and Staff Acknowledgments                                     99



Tables
              Table 1: Programs that Can Support Entrepreneurs and Maintain
                       Readily Available Information, by Agency                         22
              Table 2: Accomplishment Data for 33 Programs that Support
                       Entrepreneurs and Set Goals, Fiscal Year 2011                    24
              Table 3: Additional Federal Programs That Can Fund Economic
                       Activities, as Listed in the 2011 Catalog of Federal
                       Domestic Assistance                                              74


Figures
              Figure 1: Fragmented Delivery System of Federally Funded
                       Technical Assistance to Entrepreneurs                            14
              Figure 2: Evaluations of Programs that Support Entrepreneurs,
                       2000-2012                                                        26




              Page ii                                  GAO-12-819 Entrepreneurial Assistance
Abbreviations
BEDI               Brownfields Economic Development Initiative
CDBG               Community Development Block Grant
CDC                Community Development Corporation
CFDA               Catalog of Federal Domestic Assistance
Commerce           Department of Commerce
EDA                Economic Development Administration
FAST               Federal and State Technology Partnership
GPRA               Government Performance and Results Act
GPRAMA             GPRA Modernization Act of 2010
HUBZone            Historically Underutilized Business Zone
HUD                Department of Housing and Urban Development
MBC                Minority Business Center
MBDA               Minority Business Development Agency
NABEC              Native American Business Enterprise Centers
NMVC               New Markets Venture Capital
OMB                Office of Management and Budget
PRIME              Program for Investment in Micro-Entrepreneurs
SBA                Small Business Administration
SBDC               Small Business Development Center
SBIC               Small Business Investment Company
SBIR               Small Business Innovation Research
STTR               Small Business Technology Transfer
TAA                Trade Adjustment Assistance
USDA               U.S. Department of Agriculture
VAPG               Value Added Producer Grants
WBC                Women's Business Center

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Page iii                                            GAO-12-819 Entrepreneurial Assistance
United States Government Accountability Office
Washington, DC 20548




                                   August 23, 2012

                                   Congressional Committees

                                   Entrepreneurs play a vital role in the U.S. economy. The federal
                                   government provides a variety of support and assistance to them, and
                                   dozens of programs exist to support entrepreneurs across numerous
                                   federal agencies. Economic development programs that effectively
                                   provide assistance to entrepreneurs, in conjunction with state and local
                                   government and private sector economic development initiatives, may
                                   help businesses develop and expand. However, we have previously
                                   raised questions about the potential negative effects of fragmentation and
                                   overlap among federal programs that can support entrepreneurs.
                                   Specifically, we have questioned how efficiently federal agencies are
                                   administering these programs and how effective the programs are at
                                   achieving their mission. This report focuses on 52 programs administered
                                   by the U.S. Departments of Agriculture (USDA), Commerce (Commerce),
                                   and Housing and Urban Development (HUD) and the U.S. Small
                                   Business Administration (SBA) that provide assistance to entrepreneurs. 1
                                   In 2011, we examined these programs and found that each program
                                   overlapped with at least one other program in terms of the economic
                                   development activities that they are authorized to fund. 2 According to
                                   agency officials, these programs, which typically fund a variety of
                                   activities in addition to supporting entrepreneurs, spent an estimated $2.0
                                   billion on economic development efforts in fiscal year 2011.

                                   Section 21 of Public Law 111-139, enacted in February 2010, requires
                                   GAO to conduct routine investigations to identify federal programs,
                                   agencies, offices, and initiatives with duplicative goals and activities within



                                   1
                                    The number of programs administered by Commerce, HUD, SBA, and USDA that we
                                   identified in February 2012 as supporting entrepreneurial efforts decreased from 53 to 52
                                   because USDA’s Empowerment Zones program was ended by Congress during fiscal
                                   year 2010 and has been excluded from this review. See GAO, 2012 Annual Report:
                                   Opportunities to Reduce Duplication, Overlap and Fragmentation, Achieve Savings, and
                                   Enhance Revenue, GAO-12-342SP (Washington, D.C.: Feb. 28, 2012).
                                   2
                                    GAO, Opportunities to Reduce Potential Duplication in Government Programs, Save Tax
                                   Dollars, and Enhance Revenue, GAO-11-318SP (Washington D.C.: Mar. 1, 2011) and
                                   Efficiency and Effectiveness of Fragmented Economic Development Programs Are
                                   Unclear, GAO-11-477R (Washington, D.C.: May 19, 2011).




                                   Page 1                                             GAO-12-819 Entrepreneurial Assistance
departments and governmentwide, and report annually to Congress. 3
This report discusses (1) the extent of overlap, fragmentation, and
duplication and their effects on entrepreneurs, and agencies’ actions to
address them; and (2) the extent to which agencies collect information
necessary to track program activities and whether these programs have
met their performance goals and have been evaluated.

While we identified a more comprehensive list of federal programs that
can fund economic activities more generally, we focused our analyses on
these 52 economic development programs that are authorized to support
entrepreneurs because these are the programs that appeared to overlap
the most within the four agencies whose missions focus on economic
development. We reviewed statutory and regulatory authority for each
program on the activities and services the agencies can conduct to
administer each of the programs. Because there was significant overlap
and fragmentation among programs that provide technical assistance (for
example, business training and counseling and support for research and
development) to entrepreneurs (35 of the 52 programs), we focused on
how the agencies provide this assistance. We reviewed agency
documents and conducted interviews in both headquarters and the field
to determine how technical assistance is provided to entrepreneurs and
the extent of agency collaboration at the local level. We interviewed 14
officials from four federal agencies, 9 officials from two regional
commissions, four entrepreneurs who have received federal support, and
five state and local partners in select geographic areas where there was
evidence of ongoing collaboration between the federal agencies. These
geographic areas included both urban and rural areas. We assessed this
technical assistance information against promising collaborative practices
that we have previously identified. 4 For all 52 programs, we also
evaluated the agencies’ methods for tracking the activities conducted and
assistance provided against standards for internal controls that we have
previously identified. 5 For each program, we reviewed information on


3
 In a letter dated August 31, 2011, to the Comptroller General, the Chairwoman of the
Senate Committee on Agriculture, Nutrition and Forestry asked, among other things, that
we address a number of issues involving the potential for overlap, duplication, and
fragmentation in economic development programs administered by the four agencies.
4
 GAO, Results-Oriented Government: Practices That Can Help Enhance and Sustain
Collaboration among Federal Agencies, GAO-06-15 (Washington, D.C.: Oct. 21, 2005).
5
 GAO, Standards for Internal Control in the Federal Government, GAO/AIMD-00-21.3.1
(Washington, D.C.: Nov. 1, 1999).




Page 2                                            GAO-12-819 Entrepreneurial Assistance
                          program mission and goals, performance goals and accomplishments,
                          and program evaluations conducted during the last decade. We evaluated
                          this information against promising practices of leading organizations and
                          the requirements of the GPRA Modernization Act of 2010. Appendix I
                          provides more information on our scope and methodology.

                          We conducted this performance audit from June 2011 to July 2012 in
                          accordance with generally accepted government auditing standards.
                          Those standards require that we plan and perform the audit to obtain
                          sufficient, appropriate evidence to provide a reasonable basis for our
                          findings and conclusions based on our audit objectives. We believe that
                          the evidence obtained provides a reasonable basis for our findings and
                          conclusions based on our audit objectives.



Background
Fragmentation, Overlap,   Fragmentation refers to circumstances in which more than one federal
and Duplication           agency (or more than one organization within an agency) is involved in
                          the same broad area of national interest. Overlap involves programs that
                          have similar goals, devise similar strategies and activities to achieve
                          those goals, or target similar users. Duplication occurs when two or more
                          agencies or programs are engaged in the same activities or provide the
                          same assistance to the same beneficiaries. In some instances, it may be
                          appropriate for multiple agencies or entities to be involved in the same
                          programmatic or policy area due to the nature or magnitude of the federal
                          effort. However, we have previously identified instances where multiple
                          government programs or activities have led to inefficiencies, and we
                          determined that greater efficiencies or effectiveness might be
                          achievable. 6




                          6
                          See GAO-12-342SP.




                          Page 3                                    GAO-12-819 Entrepreneurial Assistance
Defining Federal       In September 2000, we reported that there is no commonly accepted
Economic Development   definition for economic development. 7 Absent a common definition, we
Programs               subsequently developed a list of nine activities most often associated with
                       economic development. 8 In general, we focused on economic activities
                       that directly affected the overall development of an area, such as job
                       creation, rather than on activities that improved individuals’ quality of life,
                       such as housing and education. The nine economic activities are

                       •   supporting entrepreneurial efforts,

                       •   supporting business incubators and accelerators,

                       •   constructing and renovating commercial buildings,

                       •   constructing and renovating industrial parks and buildings,

                       •   strategic planning and research,

                       •   marketing and access to new markets for products and industries,

                       •   supporting telecommunications and broadband infrastructure,

                       •   supporting physical infrastructure, and

                       •   supporting tourism.

                       Appendix II provides illustrative examples of each of these economic
                       activities. Appendix III provides more information on the 52 economic
                       development programs we focused on for this report. Appendix IV
                       includes a list of additional programs that are administered by federal
                       agencies we identified that can fund at least one of these activities.




                       7
                        See GAO, Economic Development: Multiple Federal Programs Fund Similar Economic
                       Development Activities, GAO/RCED/GGD-00-220 (Washington, D.C.: Sept. 29, 2000).
                       8
                        See GAO, Rural Economic Development: More Assurance Is Needed That Grant
                       Funding Information Is Accurately Reported, GAO-06-294 (Washington, D.C.:
                       Feb. 24, 2006).




                       Page 4                                        GAO-12-819 Entrepreneurial Assistance
GPRA Modernization Act   In January 2011, Congress updated the Government Performance and
of 2010                  Results Act of 1993 (GPRA) with the GPRA Modernization Act of 2010
                         (GPRAMA). GPRAMA establishes a new framework aimed at taking a
                         more crosscutting and integrated approach to focusing on results and
                         improving government performance. Effective implementation of
                         GPRAMA could play an important role in clarifying desired outcomes;
                         addressing program performance spanning multiple organizations; and
                         facilitating future actions to reduce unnecessary duplication, overlap, and
                         fragmentation. Among other things, GPRAMA requires the Office of
                         Management and Budget (OMB) to coordinate with agencies to establish
                         outcome-oriented federal government priority goals covering a limited
                         number of policy areas, as well as goals to improve management across
                         the federal government. It also requires OMB—in conjunction with the
                         agencies—to develop a federal government performance plan that
                         outlines how they will make progress toward achieving goals, including
                         federal government priority goals. The President’s 2013 budget
                         submission includes the first interim federal government priority goals,
                         including one to increase federal services to entrepreneurs and small
                         businesses with an emphasis on start-ups and growing firms and
                         underserved markets. 9


                         The identified economic development programs that support entrepreneurs
Fragmented Programs      overlap based on both the type of assistance they provide and the
Overlap, and             characteristics of the beneficiaries they target. This overlap among
                         fragmented programs can make it difficult for entrepreneurs to navigate the
Agencies’ Efforts to     services available to them. In addition, while agencies have taken steps to
Collaborate Have         collaborate more in administering these programs, they have not
                         implemented a number of good collaborative practices we have previously
Been Limited             identified, and some entrepreneurs struggle to find the support they need.




                         9
                          GAO, Managing for Results: GAO’s Work Related to the Interim Crosscutting Priority
                         Goals under the GPRA Modernization Act, GAO-12-620R (Washington, D.C.: May 12,
                         2012). We identified additional programs at Commerce, HUD, SBA, and USDA that can
                         assist entrepreneurs with access to financing, mentorship and counseling services, and
                         government contracts and research grants, and we recommended that the Director of
                         OMB review the additional departments, agencies, and programs that we identified, and
                         consider including them in the federal government’s performance plan, as appropriate.
                         OMB staff agreed with our recommendation that OMB review the additional departments,
                         agencies, and programs that we have identified and determine if they are relevant to
                         achieving the crosscutting goals.




                         Page 5                                            GAO-12-819 Entrepreneurial Assistance
Many Programs Are       Federal efforts to support entrepreneurs are fragmented, which occurs
Authorized to Provide   when more than one agency or program is involved in the same broad
Similar Types of        area of national interest. Commerce (8), HUD (12), SBA (19), and USDA
                        (13) administered 52 programs that could support entrepreneurial efforts
Assistance and Target   in fiscal year 2011. Several types of overlap—which occurs when
Similar Beneficiaries   programs have similar goals, engage in similar activities or strategies to
                        achieve them, or target similar beneficiaries—exist among these
                        programs, based on the type of assistance the programs offer and
                        characteristics of the programs’ targeted beneficiaries.

                        Many of the programs provide entrepreneurs with similar types of
                        assistance. The programs generally can be grouped according to at least
                        one of three types of assistance that address different entrepreneurial
                        needs: help obtaining (1) technical assistance, (2) financial assistance,
                        and (3) government contracts. Many of the programs can provide more
                        than one type of assistance, and most focus on technical assistance,
                        financial assistance, or both: 10

                        •    Technical assistance: Thirty-five programs distributed across the four
                             agencies can provide technical assistance, including business
                             training, counseling and research, and development support. 11

                        •    Financial assistance: Thirty programs distributed across the four
                             agencies can support entrepreneurs through financial assistance in
                             the form of grants and loans. 12




                        10
                          SBA administers two programs that solely provide entrepreneurs with assistance in
                        obtaining government contracts: the Historically Underutilized Business Zone (HUBZone)
                        program, which supports small businesses located in economically distressed areas, and
                        the Procurement Assistance to Small Businesses program, which serves small
                        businesses located in any area.
                        11
                          The number of programs administered by Commerce, HUD, SBA, and USDA that were
                        identified in GAO-12-342SP as supporting technical assistance decreased from 36 to 35
                        because USDA’s Empowerment Zones program is no longer active.
                        12
                          The number of programs administered by Commerce, HUD, SBA, and USDA that were
                        identified in GAO-12-342SP as supporting financial assistance decreased from 33 to 30
                        because USDA’s Empowerment Zones program is no longer active and because
                        subsequent to that report, Commerce told us that its Minority Business Centers and Native
                        American Business Enterprise Centers programs only support technical assistance.




                        Page 6                                             GAO-12-819 Entrepreneurial Assistance
•    Government contracting assistance: Five programs, all of which are
     administered by SBA, can support entrepreneurs by helping them
     qualify for federal procurement opportunities. 13

We reviewed the statutes and regulations for each program and found
that overlap tends to be concentrated among programs that provide a
broad range of technical and financial assistance. Within the technical
assistance category, 24 of the 35 programs are authorized to provide or
fund a broad range of technical assistance both to entrepreneurs with
existing businesses and to nascent entrepreneurs—that is, entrepreneurs
attempting to start a business—in any industry. This broad range of
support can include any form of training or counseling, including start-up
assistance, access to capital, and accounting. Examples of programs in
this category include Commerce’s Minority Business Centers, five of
HUD’s Community Development Block Grant (CDBG) programs, SBA’s
Small Business Development Centers, and USDA’s Rural Business
Opportunity Grants. 14 Eight additional programs can support limited types
of technical assistance or industries. 15 For example, Commerce’s Trade
Adjustment Assistance for Firms only supports existing businesses
negatively affected by imports, and USDA’s Small Socially-
Disadvantaged Producer Grants only serves agricultural businesses.

Similarly, 16 of the 30 financial assistance programs can provide or
guarantee loans that can be used for a broad range of purposes to
existing businesses and nascent entrepreneurs in any industry. Examples
of programs in this category include Commerce’s Economic Adjustment
Assistance programs, six of HUD’s CDBG programs, SBA’s 7(a) Loan
Program, and USDA’s Business and Industry Loans. Five other programs


13
  The number of programs administered by Commerce, HUD, SBA, and USDA that were
identified in GAO-12-342SP as supporting government contracting assistance decreased
from seven to five because subsequent to that report, Commerce told us that its Minority
Business Centers and Native American Business Enterprise Centers programs only
support technical assistance.
14
  Of the eight HUD CDBG programs, five operate in different areas of the United States
that do not geographically overlap, one can only provide support to areas recovering from
presidentially declared disasters, and two can operate in any area of the United States.
15
  The other three technical assistance programs are Commerce’s Economic
Development–Support for Planning Organizations, Economic Development–Technical
Assistance, and Grants for Public Works and Economic Development Facilities, which
support assistance to economic development organizations and local governments, which
in turn support businesses.




Page 7                                             GAO-12-819 Entrepreneurial Assistance
can support loans for a more narrow range of purposes or industries,
while the other nine programs can only support other types of financial
assistance, such as grants, equity investments, and surety guarantees. 16

In addition, a number of programs overlap based on the characteristics of
the targeted beneficiary. Most programs either target or exclusively serve
one of four types of businesses: businesses in rural areas, businesses in
economically distressed areas, disadvantaged businesses, and small
businesses. 17 For example, all of HUD’s 12 programs that can provide
support to entrepreneurs are focused on serving beneficiaries in
economically distressed areas or target benefits at low- to moderate-
income individuals. SBA’s 19 programs are all limited to serving small
businesses, with several programs that either target or exclusively serve
disadvantaged businesses and microenterprises. 18 Eight of USDA’s 13
programs are limited to rural service areas, and four of these programs
are limited to small businesses or microenterprises. Among Commerce’s
eight programs, six are limited to serving beneficiaries in economically
distressed areas, while two exclusively serve disadvantaged businesses.




16
  Equity investments are capital provided to a business to purchase common or preferred
stock, or a similar instrument. SBA can guarantee surety bonds (that is, an agreement
between a surety company and the owner of a project that a contract will be completed)
for contracts up to $2 million. These contracts can cover bonds for small and emerging
contractors who cannot obtain surety bonds through regular commercial channels. SBA’s
guarantee gives sureties an incentive to provide bonding for eligible contractors and
thereby strengthens a contractor’s ability to obtain bonding and greater access to
contracting opportunities.
17
  The definition of rural varies among these programs, but according to USDA—the
agency that administers many of the economic development programs that serve rural
areas—the term rural typically covers areas with population limits ranging from less than
2,500 to 50,000. Based on statutory language, we characterize economically distressed
areas as communities with high concentrations of low- and moderate-income families or
high rates of unemployment and/or underemployment. See, e.g., 42 U.S.C. § 3141; 42
U.S.C. § 5301. Likewise, based on statutory language, we characterize disadvantaged
businesses as those owned by women, minority groups, and veterans, among other
factors. See, e.g., 15 U.S.C. § 637(a); 15 U.S.C. § 656. The definition of small business
varies among these programs, but according to SBA—the agency that administers many
of the economic development programs that serve small businesses—the term small
business refers to businesses that have annual receipts or total employee numbers under
an agency-defined value for their specific industry.
18
 Microenterprises are generally defined as commercial enterprises that have ten or fewer
employees.




Page 8                                             GAO-12-819 Entrepreneurial Assistance
Entrepreneurs may fall into more than one beneficiary category—for
example, an entrepreneur may be in an area that is both rural and
economically distressed. Therefore, these entrepreneurs would be
eligible, based on program authority, for more than one subset of
program. For example, a small business in a rural, economically
distressed area, such as Susquehanna County, Pennsylvania, could, in
terms of program authority, receive a broad range of technical assistance
through at least nine programs at all four of the agencies, including:

•    Commerce’s Economic Adjustment Assistance;

•    HUD’s CDBG/States, Rural Innovation Fund, and Section 4 Capacity
     Building;

•    SBA’s SCORE and Small Business Development Centers; 19 and

•    USDA’s1890 Land Grant Institutions, Rural Business Enterprise
     Grants, and Rural Business Opportunity Grants. 20

Similarly, a small business that is both minority- and women-owned in an
urban, noneconomically distressed area, such as Seattle, Washington,
could in terms of program authority, receive a broad range of technical
assistance through at least seven programs at three of the four agencies,
including:

•    Commerce’s Minority Business Centers;

•    HUD’s CDBG/Entitlement and Section 4 Capacity Building; and

•    SBA’s Program for Investment in Micro-entrepreneurs (PRIME),
     SCORE, Small Business Development Centers, and Women’s
     Business Centers.




19
  SCORE, formerly Service Corps of Retired Executives, provides technical assistance
support for small business, start-ups and entrepreneurs.
20
  HUD’s Rural Innovation Fund program did not receive funding in fiscal year 2011 but is
still active. USDA’s1890 Land Grant Institutions received an unspecified amount of
funding through USDA’s Salaries and Expense account rather than program
appropriations.




Page 9                                             GAO-12-819 Entrepreneurial Assistance
Entrepreneurs may also be eligible for multiple subsets of financial
assistance programs based on their specific characteristics. For example,
a small business in a rural, economically distressed area, such as
Bourbon County, Kansas, could in terms of authority, receive financial
assistance in the form of guaranteed or direct loans for a broad range of
uses through at least eight programs at the four agencies, including:

•   Commerce’s Economic Adjustment Assistance;

•   HUD’s CDBG/States, Rural Innovation Fund and Section 4 Capacity
    Building;

•   SBA’s 7(a) Loan Program and Small Business Investment
    Companies; and

•   USDA’s Business and Industry Loans and Rural Business Enterprise
    Grants.

A small business that is both minority and women-owned in an urban,
noneconomically distressed area, such as Raleigh, North Carolina, could
receive financial assistance in the form of guaranteed or direct loans for a
broad range of uses through at least four programs at two of the four
agencies, including:

•   HUD’s CDBG/Entitlement and Section 4 Capacity Building; and

•   SBA’s 7(a) Loan Program and Small Business Investment
    Companies.

Five programs provide government contracting assistance to
entrepreneurs, but our analysis did not identify significant overlap in the
types of assistance these programs provide or the types of entrepreneurs
they serve. While these five programs are all administered by SBA and
can serve businesses in any industry, they tend to target specific types of
entrepreneurs and provide unique types of assistance. For example, the
Procurement Assistance to Small Businesses program coordinates
access to government contracts for small and disadvantaged businesses
with other federal agencies, while the 8(a) Business Development
Program coordinates certification of eligible disadvantaged businesses for




Page 10                                    GAO-12-819 Entrepreneurial Assistance
the contracts made available at these other agencies, in addition to
providing business development assistance during their 9-year term. 21

While many programs overlap in terms of statutory authority,
entrepreneurs may in reality have fewer options to access assistance
from multiple programs. Agencies often rely on intermediaries (that is,
third-party entities such as nonprofit organizations, higher education
institutions, or local governments that use federal grants to provide
eligible assistance directly to entrepreneurs) to provide specific support to
entrepreneurs, and these intermediaries vary in terms of their location
and the types of assistance they provide. For example, while
entrepreneurs seeking technical assistance in Susquehanna County,
Pennsylvania, are eligible to receive this support through USDA’s1890
Land Grant Institutions program, the closest funded intermediary is in
Delaware, making it unlikely that such an entrepreneur would utilize
services through this program. Additionally, intermediaries we spoke to in
several areas said they typically provide a more limited range of services
to entrepreneurs than are allowed under their statutory authority. For
example, two intermediaries that we interviewed in Texas that were
authorized to provide a broad range of technical support to entrepreneurs
through SBA’s Small Business Development Center and Commerce’s
Minority Business Center noted that they each specialized in a narrower
subset of services and referred beneficiaries to each other and other
resources for some services outside of their niches. Specifically, the
intermediary at the Small Business Development Center noted that they
provide a range of long-term services to small businesses over different
phases of development, while the intermediary at the Minority Business
Center noted that they focused specifically on larger minority-owned firms
as well as start-up companies.

Overlapping programs may also employ different mechanisms to provide
similar types of support to entrepreneurs. For example, programs may
support technical assistance through different types of intermediaries that
provide services to entrepreneurs. USDA’s Rural Business Opportunity
Grants program can provide technical assistance through local
governments, nonprofit corporations, Indian tribes, and cooperatives that
are located in rural areas, while SBA’s SCORE program utilizes retired


21
  SBA’s 8(a) program, named for a section of the Small Business Act, is a development
program created to help small, disadvantaged businesses compete in the American
economy and access the federal procurement market.




Page 11                                           GAO-12-819 Entrepreneurial Assistance
business professionals and others that volunteer their time to provide
assistance. Additionally, programs may support financial assistance in the
form of loans through loan guarantees, direct loans, or support for
revolving loan funds. SBA’s 7(a) Loan program provides guarantees on
loans made by private sector lenders, while USDA’s Intermediary Re-
lending program provides financing to intermediaries to operate revolving
loan funds.

Additionally, some programs distribute funding through multiple layers of
intermediaries before it reaches entrepreneurs. For example, HUD’s
Section 4 Capacity Building program is only authorized to provide grants
to five national organizations, which pass funding on to a number of local
grantees, including community development corporations that may use
the funding to provide technical or financial assistance to entrepreneurs.
HUD officials also noted that most of their programs allow local grantees
discretion on whether to use funds to support entrepreneurs or for other
authorized purposes. Other programs may competitively award grants to
multiple intermediaries working jointly in the same community to serve
entrepreneurs. For example, Commerce’s Economic Adjustment
Assistance program can provide grants to intermediaries, such as
consortiums of local governments and nonprofits, which in turn provide
technical or financial assistance to entrepreneurs.

Although we identified a number of examples of statutory overlap, we did
not find evidence of duplication among these programs (that is, instances
when two or more agencies or programs are engaged in the same
activities to provide the same services to the same beneficiaries) based
on available data. However, most agencies were not able to provide the
programmatic information, such as data on users of the program that is
necessary to determine whether or not duplication actually exists among
the programs. The agencies’ data-collecting practices will be discussed at
greater length later in this report.




Page 12                                    GAO-12-819 Entrepreneurial Assistance
Some Entrepreneurs     As previously discussed, 35 programs distributed across the four
Struggle to Navigate   agencies provide technical assistance, including business training and
Technical Assistance   counseling. While the existence of multiple programs in and of itself is not
                       a problem, the delivery system of these fragmented and overlapping
Programs               technical assistance programs contains many components (see fig. 1).
                       Several entrepreneurs and various technical assistance providers with
                       whom we spoke—including agency field offices, intermediaries, and other
                       local service providers—told us that the system can be confusing and that
                       some entrepreneurs do not know what services are available or where to
                       go for assistance. As discussed earlier, federal funds typically flow from
                       the federal agencies to different eligible intermediaries, which are third-
                       party entities that receive federal funds, such as nonprofits or universities.
                       These intermediaries in turn may provide technical assistance to
                       entrepreneurs by, for example, helping them to develop a business plan
                       or put together a loan package to obtain financing. For instance, SBA’s
                       Women’s Business Center and Commerce’s Minority Business Center
                       programs can provide technical assistance through different
                       intermediaries, such as the Arkansas Women’s Business Center and the
                       University of Hawaii. Although intermediaries are the primary providers of
                       technical assistance, agency field offices may also provide some
                       technical assistance. For example, USDA’s Rural Development state
                       offices may provide advice on how to complete their respective grant
                       applications. SBA’s district offices may also discuss the different business
                       structures available.




                       Page 13                                     GAO-12-819 Entrepreneurial Assistance
Figure 1: Fragmented Delivery System of Federally Funded Technical Assistance to Entrepreneurs




                                        Note: While our work focuses on the four federal agencies’ economic development programs that
                                        support entrepreneurs, many state governments also have economic development departments that
                                        assist, plan, and support economic development activities. Local governments and nonprofit
                                        organizations may also offer programs that can be used to support economic development activities.
                                        In addition, there may be other federal agencies involved with supporting economic development.
                                        Some intermediaries receive support from multiple public- and private-sector institutions, and some
                                        entrepreneurs we spoke with indicated that they had received assistance from multiple sources.




                                        Page 14                                                  GAO-12-819 Entrepreneurial Assistance
Technical assistance providers sometimes attempt to help entrepreneurs
navigate the system by referring them to other programs, but these efforts
are not consistently successful. Some of these providers told us that they
assess the entrepreneur’s needs to determine whether to assist them or
refer them to another entity that could provide the assistance more
effectively. For example, if an 1890 Land Grant intermediary were not able
to assist an entrepreneur, it might refer the entrepreneur to SBA, USDA, or
a local provider. However, such referrals are not always successful. For
example, an entrepreneur we spoke with described a case in which he
needed assistance with developing a business plan but was unable to
receive this assistance, even after several referrals. Some technical
assistance providers that we spoke with either did not appear to fully
understand other technical assistance programs or thought that others did
not fully understand their programs. For example, one technical assistance
provider told us that some technical assistance providers were focused on
more established businesses, but when we reached out to some of these
providers, they said they served all entrepreneurs. This lack of
understanding could prevent providers from making helpful referrals and
leveraging other programs and limit the effectiveness of the programs.

In addition, programs’ Internet resources can also be difficult to navigate.
Each agency has its own separate website that provides information to
entrepreneurs, but they often direct entrepreneurs to other websites for
additional information. For example, the SBA website directs users to
another website that lists the Small Business Development Centers,
which then directs users to another website that provides some
information on the centers’ available services. SBA, Commerce, USDA,
and other agencies have recently collaborated to develop a joint website
called BusinessUSA with the goal of making it easier for businesses to
access services. However, the site was not fully operational as of June
2012, and none of the entrepreneurs and almost all the technical
assistance providers we spoke with were not yet aware of it. As of June
2012, this website listed a number of potential technical assistance
programs across different federal agencies with links to the programs’
websites. Some technical assistance providers and entrepreneurs
suggested that a single source to help entrepreneurs quickly find
information instead of sorting through different websites would be helpful.




Page 15                                     GAO-12-819 Entrepreneurial Assistance
Agencies’ Collaboration   Enhanced collaboration between agencies could potentially address
Has Been Limited          some of the difficulties entrepreneurs experience and improve program
                          efficiency. In prior work we identified practices that can help to enhance
                          and sustain collaboration among federal agencies, which can help to
                          maximize performance and results, and have recommended that the
                          agencies follow them. 22 These collaborative practices include identifying
                          common outcomes, establishing joint strategies, leveraging resources,
                          determining roles and responsibilities, and developing compatible policies
                          and procedures. In addition, GPRAMA requires agencies to describe in
                          annual performance plans how they are working with other agencies to
                          achieve their performance goals and relevant federal government
                          performance goals. 23

                          The agencies have taken initial steps to improve how they collaborate to
                          provide technical assistance to entrepreneurs by, for example, entering
                          into formal agreements with each other, but they have not pursued a
                          number of other good collaborative practices we have previously
                          identified, as the following examples illustrate:

                          •     USDA and SBA entered into a formal agreement in April 2010 to
                                coordinate their efforts aimed at supporting businesses in rural areas.
                                In April 2011, USDA began to survey its state offices to help the
                                agency gauge the level of collaboration between its field staff and
                                SBA, as well as to identify additional opportunities to enhance
                                collaboration. However, the agencies’ business development
                                programs that can support start-up businesses—USDA’s Rural
                                Business Enterprise Grant and SBA’s Small Business Development
                                Centers—have yet to determine roles and responsibilities, find ways
                                to leverage each other’s resources, or establish compatible policies
                                and procedures to collaboratively support rural businesses.

                          •     The Appalachian Regional Development Initiative is a formal
                                agreement, which began in November 2010, among the Appalachian
                                Regional Commission (which coordinates economic development
                                activities in the Appalachian region), the four agencies, and other




                          22
                              GAO-06-15.
                          23
                              Pub. L. No. 111-352, 124 Stat. 3866 (2011).




                          Page 16                                           GAO-12-819 Entrepreneurial Assistance
     agencies. 24 This agreement is intended to strengthen and diversify the
     Appalachian economy through better deployment and coordination of
     federal resources. According to officials at the Appalachian Regional
     Commission, the agencies did participate in a joint workshop to
     present the locally available resources from business development to
     infrastructure in the fall 2011, and USDA is one of its stronger
     partners. However, the agencies have not established joint strategies,
     determined roles and responsibilities, or developed compatible
     policies and procedures for carrying out the common outcomes
     outlined in their agreements at the local level where technical
     assistance is provided.

•    In August 2011 SBA and the Delta Regional Authority (which
     coordinates economic development activities in the Delta region)
     entered into a formal agreement to better deploy and coordinate
     resources for small businesses located in the Delta region. 25 As part
     of this agreement, in April 2012 the two entities announced a joint
     effort to launch an program to support entrepreneurs called Operation
     JumpStart. Operation JumpStart is designed as a hands-on,
     microenterprise development program that is intended to help
     entrepreneurs test the feasibility of their business ideas and plan to
     launch new ventures. However, their effort thus far has been limited.
     While they entered into a formal agreement to launch the program,
     this agreement did not include any determinations of specific roles
     and responsibilities or establish compatible policies and procedures to
     collaboratively support these small businesses.

•    In June 2011, the President created the White House Rural Council to
     promote economic prosperity in rural areas. It is chaired by the
     Secretary of Agriculture and includes HUD, Commerce, SBA, and
     other agencies. The council is working to better coordinate federal
     programs in order to maximize the impact of federal investment in
     rural areas. Even though the council has announced a number of
     initiatives, such as helping rural small businesses access capital, the




24
  The Appalachian region is made up of 420 counties in parts of 12 states—Alabama,
Georgia, Kentucky, Maryland, Mississippi, New York, North Carolina, Ohio, Pennsylvania,
South Carolina, Tennessee, and Virginia—as well as all of West Virginia.
25
  The Delta region is made up of 252 counties and parishes in parts of eight states—
Alabama, Arkansas, Illinois, Kentucky, Louisiana, Mississippi, Missouri, and Tennessee.




Page 17                                            GAO-12-819 Entrepreneurial Assistance
    agencies have yet to implement many of our other good collaborative
    practices.

In addition, while most of these agencies at the headquarters level have
agreed to work together by signing formal agreements to administer some
of their similar programs, the agencies generally have yet to develop
compatible guidance to implement these agreements in the field. As
noted previously, some intermediaries we spoke with that provide
technical assistance through agency programs collaborate by referring
entrepreneurs to other federal programs and agencies that they believe
may better meet their needs. However these efforts are inconsistent and
do not always result in entrepreneurs obtaining the services they are
seeking. OMB and the four agencies also have recently taken steps to
implement GPRAMA, which requires them to coordinate better; however,
implementation was still in the early phases as of May 2012 and had not
yet affected how they administer their programs.

Implementing additional good collaborative practices could improve how
the federal government supports entrepreneurs by, for example, helping
agencies make more useful referrals, meet more diverse needs of
entrepreneurs, and present a more consistent delivery system to
entrepreneurs:

•   Collaborating agencies that agree upon roles and responsibilities can
    clarify who will do what, organize their joint and individual efforts, and
    facilitate coordinated decision making. This effort could help agencies
    not only initiate and sustain collaboration but also determine who is in
    the best position to support an entrepreneur based on the client’s
    need, which could lead to more effective referrals.

•   Because collaborating agencies bring different resources and
    capacities to their efforts, they can look for opportunities to leverage
    each other’s resources, thus obtaining additional benefits that would
    not be available if they were working separately. Being able to
    leverage each other’s resources could help agencies more effectively
    and efficiently support entrepreneurs because they may be able to
    meet more diverse needs by drawing on one another’s strengths.




Page 18                                      GAO-12-819 Entrepreneurial Assistance
                             •    Compatible standards, policies, procedures, and data systems could
                                  help to sustain collaborative efforts. As agencies standardize, for
                                  example, procedures for supporting entrepreneurs, they can more
                                  efficiently support entrepreneurs through more consistent service-
                                  delivery methods across agencies and programs. This could be
                                  particularly helpful for entrepreneurs who are not familiar with the
                                  federal programs.

                             In addition, GPRAMA’s crosscutting framework requires that agencies
                             collaborate in order to address issues such as economic development
                             that transcend more than one agency, and GPRAMA directs agencies to
                             describe how they are working with each other to achieve their program
                             goals. As discussed previously, without more substantial collaboration,
                             the delivery of service to entrepreneurs, particularly those who are
                             unfamiliar with federal economic development programs, may not be as
                             effective and efficient as possible.


                             Agencies do not maintain information in a way that would enable them to
Agencies Lack                track activities for most of their programs. Further, the agencies lack
Information to Track         information on why some programs have failed to meet some or all of
                             their goals. While information from program evaluations can help
Program Activities           measure program effectiveness, agencies have conducted evaluations of
and Measure                  only 20 of the 52 active programs since 2000.
Performance

Agencies Do Not Maintain     While the four agencies collected at least some information on program
Information to Enable        activities in either an electronic records system or through paper files,
Tracking of Activities for   most were unable to summarize the information in a way that could be
                             used to help administer the programs. Promising practices of program
Most Programs                administration that we have identified include a strong capacity to collect
                             and analyze accurate, useful, and timely data. 26 According to OMB, being
                             able to track and measure specific program data can help agencies
                             diagnose problems, identify drivers of future performance, evaluate risk,
                             support collaboration, and inform follow-up actions. Analyses of patterns



                             26
                               Harold I. Steinberg, Using Performance Information to Drive Performance Improvement,
                             Association of Government Accountants CPAG Research Series: Report No. 29
                             (Alexandria, VA: Dec. 2011).




                             Page 19                                          GAO-12-819 Entrepreneurial Assistance
and anomalies can also help agencies discover ways to achieve more
value for the taxpayer’s money. In addition, agencies can use this
information to assess whether their specific program activities are
contributing as planned to the agency goals.

In addition, government internal control standards state that agencies
should promptly and accurately record transactions to maintain their
relevance and value for management decision making. Furthermore, this
information should be readily available for use by management and
others so that they can carry out their duties with the goal of achieving all
of their objectives, including making operating decisions and allocating
resources. 27 This guidance calls for agencies to go beyond merely
collecting information, stating that they should systematically analyze, or
track, it over time to inform decision making. For example, the agencies
could track this information to identify trends on how the programs are
being used in different areas of the country. This information could help
the agencies strategically target program resources to support the unique
needs in each geographic area.

All four agencies collect program information but do not track detailed,
readily available information for most programs, such as the type of
technical assistance that their programs provide or fund, which is
necessary to effectively administer their programs. For example,
Commerce’s Economic Adjustment Assistance, HUD’s Section 4
Capacity Building, SBA’s PRIME, and USDA’s Rural Business
Opportunity Grant Program can all support a broad range of technical
assistance to various types of entrepreneurs, but agencies are unable to
provide information on the types of services provided that would be
necessary to compare activities across programs. Similarly, the agencies
typically do not track detailed information on the characteristics of
entrepreneurs that they serve, such as whether they are located in rural
or economically distressed areas or the entrepreneurs’ type of industry.
Most of the agencies collect detailed information on several of their
programs in a way that could potentially help them more efficiently
administer their programs, as the following examples illustrate:




27
 GAO/AIMD-00-21.3.1.




Page 20                                     GAO-12-819 Entrepreneurial Assistance
•   SBA collects detailed information on the type of technical assistance
    provided and type of entrepreneur served for 5 of its 10 technical
    assistance programs. SBA categorizes the types of technical
    assistance it provides by 17 categories of training and counseling,
    such as helping a business develop its business plan. All of this
    information is maintained in an electronic database that is accessible
    by agency staff.

•   For all of its programs, USDA collects detailed information on the
    industry of each of the entrepreneurs it supports. In addition, USDA
    collects detailed information (19 categories) on how entrepreneurs
    use proceeds, such as for working capital, provided through five of its
    financial assistance programs. USDA maintains this information in an
    electronic database, and officials stated that they can provide this type
    of detailed information upon request.

•   For all eight of its technical assistance programs, Commerce collects
    information on the type of entrepreneur served and the entrepreneurs’
    industry.

While HUD tracked limited program information on the type of support it
provides to entrepreneurs, the agency collects information on other
program activities and uses it to monitor program compliance. HUD staff
meet quarterly with the Secretary of HUD to discuss these program data
and determine changes that should be made to improve how they carry
out program activities. Table 1 summarizes the type of information that
agencies maintain in a readily available format that could be tracked to
help administer the programs.




Page 21                                     GAO-12-819 Entrepreneurial Assistance
Table 1: Programs that Can Support Entrepreneurs and Maintain Readily Available Information, by Agency

                                                                    35 technical assistance programs
                                                Commerce (8)                    HUD (9)               SBA (10)          USDA (8)        Total (35)
Type of technical assistance   yes                                 2                      0                      5              0                7
provided?
                               no                                  6                      9                      5              8              28
Industry entrepreneur is       yes                                 8                      0                      5              8              21
working in?
                               no                                  0                      9                      5              0              14
Type of entrepreneur by        yes                                 8                      1                      5              7              21
                     a
targeted categories?
                               no                                  0                      8                      5              1              14
                                                                       30 financial assistance programs
                                                Commerce (2)                   HUD (10)               SBA (10)          USDA (8)        Total (30)
Type of financial assistance   yes                                 2                      8                      9              8              27
provided?
                               no                                  0                      2                      1              0                3
Use of proceeds?               yes                                 2                      1                      7              5              15
                               no                                  0                      9                      3              3              15
Industry entrepreneur is       yes                                 2                      0                      5              8              15
working in?
                               no                                  0                    10                       5              0              15
Type of entrepreneur by        yes                                 2                      3                      8              5              18
targeted categories?
                               no                                  0                      7                      2              3              12
                                        Source: GAO analysis of information provided by Commerce, HUD, USDA, and SBA.

                                        Note: This table is based on 50 of the 52 programs that can support entrepreneurs because we
                                        excluded the 2 SBA programs that only support government contracting assistance. Some of the 50
                                        programs can provide both financial and technical assistance.
                                        a
                                         Targeted categories can include businesses in rural or economically distressed areas,
                                        disadvantaged businesses, or small businesses.


                                        Officials who administer these programs provided a number of reasons
                                        why they do not track detailed program information for all programs in a
                                        way that could be used for program administration purposes. For
                                        example, some officials stated they do not rely on program information
                                        with this level of detail to make decisions about their programs. As
                                        previously discussed, many of these programs are administered by
                                        intermediaries, and these intermediaries may maintain detailed
                                        information on the services they provide. Agencies do not always require
                                        the intermediaries to forward all of this detailed information to
                                        headquarters. Rather, an intermediary may, for example, submit data


                                        Page 22                                                               GAO-12-819 Entrepreneurial Assistance
                          summaries of the support they have provided during the reporting period
                          in a narrative format—a format that cannot be easily aggregated or
                          analyzed. Other agency officials noted that this type of summary-level
                          information they collect and maintain at headquarters is sufficient for their
                          purposes and complies with OMB reporting guidelines. However, without
                          tracking more detailed program information, such as the specific type of
                          support provided and the entrepreneurs served, agencies may not be
                          able to make informed decisions or identify risks and problem areas
                          within their programs based on factors such as how entrepreneurs make
                          use of program services or funding. Furthermore, agencies may not be
                          able to understand the extent that their programs are serving their
                          intended purposes.


Some Programs Failed to   Our review found that for fiscal year 2011, a number of programs that
Meet Their Goals          support entrepreneurs failed to meet some or all of their performance
                          goals. Measuring performance allows organizations to track the progress
                          they are making toward their goals and gives managers crucial
                          information on which to base their organizational and management
                          decisions. Leading organizations recognize that performance measures
                          can create powerful incentives to influence organizational and individual
                          behavior. Some of their good practices include setting and measuring
                          performance goals. GPRAMA requires agencies to develop annual
                          performance plans that include performance goals for an agency’s
                          program activities and accompanying performance measures. According
                          to GPRAMA, these performance goals should be in a quantifiable and
                          measurable form to define the level of performance to be achieved for
                          program activities each year. The agencies should also be able to identify
                          which external factors might affect goal accomplishment and explain why
                          a goal was not met. Such plans can help to reinforce the connection
                          between the long-term strategic goals outlined in their strategic plans and
                          the day-to-day activities of their managers and staff.

                          We found that of the 33 programs that support entrepreneurs and set
                          goals, 19 did not meet any of their goals or only met some of their goals




                          Page 23                                     GAO-12-819 Entrepreneurial Assistance
(see table 2). 28 These programs include Commerce’s Economic
Development/Support for Planning Organizations, HUD’s Indian
Community Development Block Grant, SBA’s 504 loan, and USDA’s
Rural Business Opportunity Grant programs. Appendix III provides more
information on fiscal year 2011 goals and accomplishments for each
program that has goals and accomplishment data available.

Table 2: Accomplishment Data for 33 Programs that Support Entrepreneurs and Set
Goals, Fiscal Year 2011

                                   Programs that did              Programs that met     Programs that
                                      not meet goals                    some goals       met all goals
 Commerce                                                  1                       5                  2
 HUD                                                       2                       0                  0
 SBA                                                       2                       5                  7
 USDA                                                      4                       0                  3
 Total                                                     9                      10                 12
Source: GAO analysis of data from Commerce, HUD, SBA, and USDA.

Note: Two programs have goals but did not have goal accomplishment information. Goal
accomplishment information for HUD’s Section 4 Capacity Building for Affordable Housing and
Community Development program is unknown because HUD did not provide goal accomplishment
information. Goal accomplishment information for USDA’s Small Business Innovation Research
program is not available because the program goals are based on 2-year time periods and the current
period has not yet ended.


Agency officials provided a number of reasons why they thought these
programs did not meet their goals, including that the goals were estimates
and program funding was lower than anticipated. In addition, some
agency officials could not identify any causes for the failure to meet goals
nor had they attempted to determine the specific reasons for the failures.


28
  Nineteen programs did not have fiscal year 2011 performance goals: HUD’s CDBG
Insular Areas, CDBG Entitlement, CDBG States, CDBG Non-entitlement Grants in Hawaii,
Section 108, CDBG Disaster Recovery, Rural Innovation Fund, Hispanic Serving
Institutions Assisting Communities, and Alaska Native/Native Hawaiian Institutions
Assisting Communities; SBA’s PRIME, Small Business Innovation Research, Small
Business Technology Transfer, New Markets Venture Capital, and Federal and State
Technology Partnership programs; and USDA’s Small Socially-Disadvantaged Producer
Grants, 1890’s Land Grants Institutions, Agriculture Innovation Center, Biomass Research
and Development Initiative, and Woody Biomass Utilization Grants. While the agencies
are not required to have goals for each program, agency officials said that 6 of the 19
programs did not have goals because they were either temporary, were not funded, or
were marked for elimination by agencies. One of the 19 programs that did not meet its
goals was not funded in fiscal year 2011.




Page 24                                                            GAO-12-819 Entrepreneurial Assistance
                            Programs that are failing to meet performance goals without a clear
                            understanding of the reasons could result in agencies not being able to
                            identify and address specific parts of programs that may not be working
                            well. Additionally, without more detailed data on the activities of individual
                            intermediaries, determining which of these third-parties are effectively
                            administering these programs and helping meet program goals is difficult.
                            Making decisions without this information could result in scarce resources
                            being directed away from programs, or intermediaries, that are effective
                            and towards those that are not meeting their objectives or struggling to
                            meet their objectives.


Agencies Have Not           Over the past 12 years, agencies have conducted program evaluations of
Evaluated the Majority of   20 of the 52 programs that support entrepreneurs. 29 Most of these 20
Programs That Support       programs were evaluated once in the past decade. The studies that were
                            conducted focus on a variety of areas, including customer satisfaction
Entrepreneurs
                            and the programs’ economic impacts, and report an array of findings
                            related to the effectiveness of the programs. For example, some
                            evaluations reported the actual number of jobs produced as a result of
                            program investments, while one evaluation reported that programs were
                            more useful for larger firms than smaller firms. Some of the differences
                            among the findings are tied to the varying questions the studies sought to
                            answer and the methods that were used to answer them. The questions
                            and methods employed are typically informed by the organization’s
                            purpose for pursuing these studies. These purposes could include, for
                            example, assessing program impact, identifying areas for improvement,
                            or guiding resource allocation. Figure 2 describes the scope of each
                            program evaluation and the findings related to program effectiveness.
                            Appendix V provides more information on each program evaluation.




                            29
                              We reviewed the methodologies of these studies to ensure they were sound and
                            determined they were sufficiently reliable to report high-level findings related to the
                            programs’ overall effectiveness.




                            Page 25                                               GAO-12-819 Entrepreneurial Assistance
Figure 2: Evaluations of Programs that Support Entrepreneurs, 2000-2012




                                        Page 26                           GAO-12-819 Entrepreneurial Assistance
Although GPRAMA does not require agencies to conduct formal program
evaluations, it does require agencies to describe program evaluations that
were used to establish or revise strategic goals as well as program
evaluations they plan to conduct in the future. Additionally, while not
required, agencies can use periodic program evaluations to complement
ongoing performance measurement. Program evaluations that
systematically study the benefits of programs may help identify the extent
to which overlapping and fragmented programs are achieving their
objectives. In addition, program evaluations can help agencies determine
reasons why a performance goal was not met and give an agency
direction on how to improve program performance. For instance, 8 of the
33 programs that were not evaluated by the administering agency failed
to meet all of their performance goals. Performance evaluations could
have helped agencies understand why these programs’ goals were not
met. Further, program evaluations, which examine a broader range of
information than is feasible on an ongoing basis through performance
measures, can help assess the impact and effectiveness of a program. 30

While many of the agencies agree that performance evaluations can add
value, some stated that they have limited funds and cannot afford
performance evaluation studies. Other agency officials stated that they
are not allowed to use program funds for evaluation. For example, USDA
officials stated that they are not allowed to use program funds to study the
effectiveness of the Small Business Innovation Research program. While
program evaluations can be expensive, there are various methods that
agencies can employ to make them more cost-effective. For example,
agencies could conduct a program evaluation that relies on their own data
to prevent them from purchasing data from a vendor. 31 Without periodic
program evaluations, the agencies’ ability to manage programs effectively
and efficiently may be limited. Program evaluations can also potentially
help agencies understand why some programs have failed to meet some
or all of their goals, as previously discussed. Moreover, without this type



30
 GAO, Program Evaluation: Studies Helped Agencies Measure or Explain Program
Performance, GAO/GGD-00-204 (Washington, D.C.: Sept. 29, 2000).
31
   In July 2007, we recommended that SBA further utilize the loan performance information
it already collects to better report how small businesses fare after they participate in the
7(a) program. While SBA agreed with the recommendation, the agency has not
implemented it. See GAO, Small Business Administration: Additional Measures Needed to
Assess 7(a) Loan Program’s Performance, GAO-07-769 (Washington, D.C.: Jul. 13,
2007).




Page 27                                             GAO-12-819 Entrepreneurial Assistance
              of information, Congress and the agencies may not be able to better
              ensure that scarce resources are being directed to the most effective
              programs and activities.


              In order to support entrepreneurs, federal economic development
Conclusions   programs must be efficient and accessible to the people they are
              intended to serve. However, navigating these overlapping and
              fragmented programs can be an ongoing challenge for some
              entrepreneurs. While the agencies have a number of interagency
              agreements in place, our review found that agency field staff do not
              consistently collaborate and may not be able to help entrepreneurs
              navigate the large number of programs available to them. We have
              identified practices that can help to support collaboration among federal
              agencies and programs. In addition, greater collaboration is one way
              agencies can help overcome overlap and fragmentation among programs
              within and across agencies. Moreover, without enhanced collaboration
              and coordination, agencies may not be able to make the best use of
              limited federal resources and may not reach their intended beneficiaries
              in the most effective and efficient manner.

              In addition, given the number of federal programs focused on supporting
              entrepreneurs, agencies need specific information about these programs
              to best allocate limited federal resources and make decisions about better
              administering and structuring the programs. In our February 2012 report
              on duplication, overlap, and fragmentation, we expected to recommend
              that Congress tie funding to program performance and that OMB and the
              agencies explore opportunities to restructure programs through such
              means as consolidation or elimination. However, decisions about funding
              and restructuring would be difficult without better performance and
              evaluation information. Thus, making these recommendations would be
              premature until the agencies address a number of deficiencies.
              Specifically, agencies typically do not collect information that would
              enable them to track the services they provide and to whom they provide
              those services. This practice is not consistent with government standards
              for internal controls. Without such information, the agencies may not be
              able to administer the programs in a way that will result in the most
              efficient and effective federal support to entrepreneurs.

              Moreover, most of the programs that set goals did not meet them or only
              met some of them, and agency officials could not always identify reasons
              why program goals were not met. Additionally, many of these programs
              have not been evaluated in 10 years or more. GPRAMA requires


              Page 28                                   GAO-12-819 Entrepreneurial Assistance
                     agencies to set and measure annual performance goals, and recognizes
                     the value of program evaluations because they can help agencies assess
                     programs’ effectiveness and improve program performance. Agencies’
                     lack of understanding of why programs have failed to meet goals may
                     limit decision makers’ ability to understand which programs are most
                     effective and allocate federal resources accordingly.


                     To help improve the efficiency and effectiveness of federal efforts to
Recommendations      support entrepreneurs, we make the following recommendations:

                     •   The Director of the Office and Management and Budget, the
                         Secretaries of the Departments of Agriculture, Commerce, and
                         Housing and Urban Development, and the Administrator of the Small
                         Business Administration should work together to identify opportunities
                         to enhance collaboration among programs, both within and across
                         agencies.

                     •   The Secretaries of the Departments of Agriculture, Commerce, and
                         Housing and Urban Development, and the Administrator of the Small
                         Business Administration should consistently collect information that
                         would enable them to track the specific type of assistance programs
                         provide and the entrepreneurs they serve and use this information to
                         help administer their programs.

                     •   The Secretaries of the Departments of Agriculture, Commerce, and
                         Housing and Urban Development, and the Administrator of the Small
                         Business Administration should conduct more program evaluations to
                         better understand why programs have not met performance goals and
                         their overall effectiveness.


                     GAO provided a draft of this report to OMB, Commerce, HUD, SBA, and
Agency Comments      USDA for review and comment. We also provided excerpts of appendix
and Our Evaluation   IV to all of the agencies with programs listed for their review. Commerce,
                     HUD, and USDA provided written comments. Commerce, HUD, and SBA
                     also provided technical comments, which were incorporated where
                     appropriate. OMB did not provide comments on the draft report. All
                     written comments are reprinted in appendixes VI, VII and VIII.

                     The Acting Secretary of Commerce stated that we may wish to consider
                     the complementary role many agencies play in the field of economic
                     development and the need for varied but complementary activities to



                     Page 29                                    GAO-12-819 Entrepreneurial Assistance
address the complexities of entrepreneurs. She commented that what
may appear as duplication at a higher level is in reality a portfolio of
distinct services meeting unique needs. Our report notes that in some
instances it may be appropriate for multiple agencies or entities to be
involved in the same programmatic or policy area due to the nature or
magnitude of the federal effort. We found that many of the 52 programs
we examined overlap in terms of statutory authority; our report does not
state that duplication exists among these programs. However, we found
that most of these agencies were not able to provide programmatic
information, such as data on users of the programs that is necessary to
determine whether or not duplication actually exists.

The Acting Secretary also stated that federal agencies do successfully
collaborate and forge policy partnerships, and noted that EDA plays a key
role in leading and shaping federal policy for fostering collaborative
regional economic development. As noted in our report, Commerce,
HUD, SBA, and USDA have taken initial steps to improve how they
collaborate to provide technical assistance to entrepreneurs and cites
specific examples of these collaborative efforts. However, GAO found that
the four agencies, including Commerce, have not pursued a number of
other good collaborative practices we have previously identified. For
example, our report states that the White House Rural Council, comprised
of Commerce and other federal agencies, is working to better coordinate
federal programs in order to maximize the impact of federal investment in
rural areas. Although the council has announced a number of initiatives,
such as helping rural small businesses access capital, we found that the
agencies have yet to implement many of our other good collaborative
practices such as developing compatible guidance to implement inter-
agency agreements. For example, we found that while most of these
agencies at the headquarters level have agreed to work together by
signing formal agreements to administer some of their similar programs,
the agencies generally have yet to develop compatible guidance to
implement these agreements in the field.

Finally, the Acting Secretary stated that EDA agrees with our report’s
focus on the need for more specific information tracking and more
frequent performance evaluation. She noted that EDA has established
performance measures for each of its programs, and that these
performance measures were subject to thorough review and validation
procedures. She also noted that EDA routinely conducts evaluations of its
programs (often limited only by lack of resources). However, the Acting
Secretary stated that efforts to monitor and track project progress seem to
have been outside of the scope of our report, based on many of the


Page 30                                    GAO-12-819 Entrepreneurial Assistance
general statements made in the report about the need for additional work
in this area. As previously stated, we found that most of the agencies
were not able to provide programmatic information for programs that can
support entrepreneurs. Our report also states that Commerce does collect
information on the type of entrepreneur served and the entrepreneur’s
industry for all eight of its programs that can provide technical assistance;
however, the report notes that Commerce does not collect information on
the specific type of technical assistance provided to entrepreneurs for six
of these eight programs—information necessary to compare activities
across programs. We provided summary information on evaluations
conducted by the agencies in the report, including Commerce. We also
found that Commerce, HUD, SBA, and USDA had not evaluated the
majority of the 52 programs that can support entrepreneurs, including four
of the eight programs Commerce administers. We concluded that
program evaluations, when combined with efforts to collect information,
can be a positive step toward greater understanding of programs’
effectiveness.

HUD’s Assistant Secretary for Public and Indian Housing expressed
concern regarding our reference on the highlights page of the report to
the Indian CDBG program as one of 19 economic development programs
that failed to meet their entrepreneurial performance goals. She stated
that the entire program may be unfairly perceived as ineffective as a
result of this statement. Our report states that 33 of 52 programs we
examined set goals related to entrepreneurial assistance and that 19 of
these 33 programs did not meet any of their goals or only met some of
their goals. Our report does not state that these 19 programs were
ineffective. We added language on the highlights page of the report to
clarify that our findings were only based on each program’s goals related
to entrepreneurial assistance.

The Assistant Secretary also stated that our report misrepresents the
Indian CDBG program as an economic development program. She noted
that while economic development is an eligible program activity, only 3
percent of the dollars awarded under the program since 2005 funded
economic development activities. She further noted that most of the
program’s grants were used for community development activities, such
as building community buildings, developing infrastructure of various
types, and rehabilitating housing units on Indian lands. As noted in our
report, the 52 programs we examined for this report typically fund a
variety of activities in addition to supporting entrepreneurs. In addition, the
report notes that most of these programs either target or exclusively serve
particular types of businesses.


Page 31                                      GAO-12-819 Entrepreneurial Assistance
The Assistant Secretary noted that an independent evaluation of the
Indian CDBG program was conducted in 2006. HUD had not previously
provided us with this evaluation. We revised our report to state that the
Indian CDBG program had been evaluated within the past 12 years.
Finally, the Assistant Secretary stated that HUD supports efforts to
accurately measure the performance of its programs. She noted that
HUD’s Office of Native American Programs had recognized limitations in
its method of projecting and measuring performance in the Indian CDBG
program. She also stated that the office had begun drafting a revised form
to be used at grant application and grant closeout to better collect
performance measurement data, and that the office was examining its
data collection procedures as well as the methodology used to establish
program targets. These actions are consistent with our recommendation
that the agencies collect program information and use it to help
administer their programs.

USDA’s Under Secretary for Rural Development stated that he agreed
with our report’s statements that entrepreneurs play a vital role in the U.S.
economy and that no duplication exists among federal programs that
assist entrepreneurs. However, he disagreed with some of the other
observations in our report. First, he stated that our report broadly portrays
federal programs that assist entrepreneurs and does not highlight the
unique characteristics of each agency, such as USDA’s Rural
Development’s specialization in rural economic development and its
network of state and local area offices. Our report notes that most of
USDA’s 13 programs that can support entrepreneurs are limited to areas
with a rural statutory definition. We also include discussion based on our
outreach to participants in rural economic development, including regional
commissions and authorities, on their experiences with the four federal
agencies in rural economic development efforts. More importantly,
however, when considering the unique characteristics of the various
programs, we emphasize the need for agencies to conduct program
evaluations to assess effectiveness. While the Under Secretary suggests
that the rural focus and the network of state and local area offices
enhance program effectiveness, USDA has not conducted evaluations to
support this conclusion.

Second, USDA’s Under Secretary stated that our report highlights
examples where entrepreneurs may be eligible for multiple federal
programs based on an entrepreneur’s specific characteristics, but that the
report does not mention whether this was a pervasive or problematic
issue. He stated that rural entrepreneurs may be eligible for multiple
programs, and that a business’s unique situation dictates which programs


Page 32                                     GAO-12-819 Entrepreneurial Assistance
best meets its needs. Again, our report emphasizes the need for
evaluations to determine the relative effectiveness of different programs
serving similar purposes. Third, regarding our findings related to the
information agencies collect on program activities, the Under Secretary
cited a number of tools that the Rural Business-Cooperative Service
(RBS) uses to identify and improve the effectiveness of its programs. As
noted in this report, we determined that USDA collected detailed
information on the industry of each of the entrepreneurs it supports for all
of its programs. In addition, we determined that USDA collected detailed
information (19 categories) on how entrepreneurs use proceeds provided
through 5 of its financial programs. However, we found that over the past
12 years USDA had conducted a program evaluation for only 1 of its 13
programs that can support entrepreneurs, including USDA programs that
RBS does not administer.

Finally, the Under Secretary stated that the recommendations in our
report are not explicit, which makes it unclear how RBS would effectively
address them. Our report does provide information on how agencies
could address our recommendations. First, we recommended that OMB,
Commerce, HUD, SBA, and USDA work together to identify opportunities
to enhance collaboration among programs, both within and across
agencies. Our report identifies several practices that can help agencies
and their offices enhance and sustain collaboration, which include
indentifying common outcomes, establishing joint strategies, leveraging
resources, determining roles and responsibilities, and developing
compatible policies and procedures, among others. Second, we
recommended that Commerce, HUD, USDA and SBA consistently collect
information that would enable them to track the specific type of assistance
provided and the entrepreneurs they serve and use this information to
help administer their programs. Our report identifies programs that
Commerce, HUD, SBA, and USDA administer for which the agencies did
and did not maintain information in a readily available format that could be
tracked to help administer the programs. Finally, we recommended that
Commerce, HUD, SBA, and USDA conduct more evaluations to better
understand why programs have not met performance goals and their
overall effectiveness. Our report acknowledges that program evaluations
can be costly; however, the report also notes that there are various
methods agencies can employ to make the evaluations more cost-
effective, such as relying on their own data instead of purchasing data
from a vendor.




Page 33                                     GAO-12-819 Entrepreneurial Assistance
We are sending copies of this report to the appropriate congressional
committees and other interested parties. In addition, this report will be
available at no charge on the GAO website at http://www.gao.gov. Should
you or your staff have any questions concerning this report, please
contact William B. Shear, at (202) 512-8678, or shearw@gao.gov.
Contact points for our Offices of Congressional Relations and Public
Affairs may be found on the last page of this report. Key contributors to
this report are listed in appendix IX.




William B. Shear
Director
Financial Markets
  and Community Investments




Page 34                                  GAO-12-819 Entrepreneurial Assistance
List of Congressional Committees

The Honorable Debbie Stabenow
Chair
The Honorable Pat Roberts
Ranking Member
Committee on Agriculture, Nutrition, and Forestry
United States Senate

The Honorable Kent Conrad
Chairman
The Honorable Jeff Sessions
Ranking Member
Committee on the Budget
United States Senate

The Honorable Barbara Boxer
Chair
The Honorable James M. Inhofe
Ranking Member
Committee on Environment and Public Works
United States Senate

The Honorable Mary Landrieu
Chair
The Honorable Olympia J. Snowe
Ranking Member
Committee on Small Business and Entrepreneurship
United States Senate

The Honorable Mark Warner
Chairman
Task Force on Government Performance
Committee on the Budget
United States Senate

The Honorable Paul Ryan
Chairman
The Honorable Chris Van Hollen
Ranking Member
Committee on the Budget
House of Representatives



Page 35                                   GAO-12-819 Entrepreneurial Assistance
The Honorable Spencer Bachus
Chair
The Honorable Barney Frank
Ranking Member
Committee on Financial Services
House of Representatives

The Honorable Darrell E. Issa
Chair
The Honorable Elijah Cummings
Ranking Member
Committee on Oversight and Government Reform
House of Representatives

The Honorable Sam Graves
Chair
The Honorable Nydia Velazquez
Ranking Member
Committee on Small Business
House of Representatives

The Honorable Timothy V. Johnson
Chairman
Subcommittee on Rural Development, Research,
 Biotechnology, and Foreign Agriculture
Committee on Agriculture
House of Representatives




Page 36                              GAO-12-819 Entrepreneurial Assistance
Appendix I: Objectives, Scope and
              Appendix I: Objectives, Scope and
              Methodology



Methodology

              This report discusses (1) the extent of overlap, fragmentation, and
              duplication and their effects on entrepreneurs, and agencies’ actions to
              address them; and (2) the extent to which agencies collect information
              necessary to track program activities and whether these programs have
              met their performance goals and been evaluated.

              To determine the extent of overlap and fragmentation among federal
              programs that fund economic development activities, we focused our
              analyses on 52 programs administered by the Departments of Agriculture
              (USDA), Commerce, and Housing and Urban Development (HUD) and
              the Small Business Administration (SBA) that are authorized to support
              entrepreneurs. Based on past work, these programs appeared to overlap
              the most within the four agencies with missions focused on economic
              development. We reviewed the statutes and regulations that authorize the
              activities that can be conducted under each program. We categorized the
              types of activities into three categories: (1) technical assistance, (2)
              financial assistance, and (3) government contracting assistance. Many of
              the programs can provide more than one type of assistance, and most
              focus on technical assistance, financial assistance, or both. To identify
              the effects of overlap and fragmentation on entrepreneurs and agencies’
              actions to address them, we focused on 35 of the 52 programs that
              provide technical assistance because there was significant overlap and
              fragmentation among these programs. We reviewed agency documents,
              such as inter-agency agreements, and conducted interviews to determine
              how technical assistance is provided to entrepreneurs, including the
              extent of agency collaboration at the local level. More specifically, we
              interviewed technical assistance providers, including 14 federal agency
              officials from four federal agencies located in the field, nine officials from
              two regional commissions, and 14 representatives of intermediaries (that
              is, third-party technical assistance providers); four entrepreneurs who
              have received assistance federal support; and five state and local
              partners in three geographic areas. These geographic areas included
              both urban and rural areas. We selected geographic areas based on, the
              presence of an active regional commission and evidence of collaboration
              among at least two of the four federal agencies being located within the
              same region. We assessed this technical assistance information against
              promising collaborative practices that we have previously identified. 1



              1
               GAO, Results-Oriented Government: Practices That Can Help Enhance and Sustain
              Collaboration among Federal Agencies, GAO-06-15 (Washington, D.C.: Oct. 21, 2005).




              Page 37                                         GAO-12-819 Entrepreneurial Assistance
Appendix I: Objectives, Scope and
Methodology




To determine the extent to which agencies collect information necessary
to track program activities, we reviewed agency manuals and data
collection forms that describe information collected on program activities
and methods for analyzing and using the information. Specifically, we
assessed each agency’s capacity to track specific types of
entrepreneurial assistance they provided to specific types of beneficiaries,
as well as their ability to report this information in a readily available
format at the program level. We compared these processes against
standards for internal controls we have previously identified to determine
how well agencies track the support they provide to entrepreneurs. 2 To
determine the extent to which these 52 economic development programs
have met their performance goals, we reviewed agency documents on
their fiscal year 2011 program goals and accomplishments. We also
interviewed agency officials to determine reasons why goals were not met
(see app. III).

To describe results from program evaluations related to the effectiveness
of the 52 economic development programs that we reviewed, we
requested all studies that have been conducted on these programs from
the four agencies that administer the programs. Our document request
resulted in 19 studies. We refined the list of 19 studies by choosing to
focus on studies that were published in or after 2000. The resulting list of
program evaluations totaled 16. Because some evaluations studied more
than one program, these 16 evaluations covered 20 of the 52 programs in
our review. We reviewed the methodologies of these studies to ensure
that they were sound and determined that they were sufficiently reliable
for our purpose, which was to report high-level findings related to the
program’s overall effectiveness (see app. V). Other evaluations of these
programs may exist.

To provide illustrative examples of each of the nine economic activities
related to economic development that we previously identified (see app. II),
we conducted a review of the literature that has been published in the past




2
 GAO, Standards for Internal Control in the Federal Government, GAO/AIMD-00-21.3.1
(Washington, D.C.: Nov. 1999).




Page 38                                         GAO-12-819 Entrepreneurial Assistance
Appendix I: Objectives, Scope and
Methodology




5 years. 3 This review included publications from a variety of sources,
including academic journals and trade publications. These sources
contained examples of how these economic activities were being
conducted at the national, state, and local levels in the United States. The
list of examples we developed is not meant to be comprehensive but is
intended to provide a range of economic activities that could be funded by
federal programs.

We also used these nine economic activities to identify additional federal
programs that may be able to fund at least one of the activities (these
programs are listed in app. IV). During previous reviews, we focused on
federal programs at Commerce, HUD, SBA, and USDA because these
agencies have missions focused on economic development. For this
report, we identified additional federal programs that could fund the nine
economic activities. While many of the agencies that administer these
additional programs do not have missions that focus on economic
development, their programs may be able to fund at least one of the nine
economic activities. We reviewed information on all programs contained
in the 2011 Catalog of Federal Domestic Assistance (CFDA) and
provided the list of programs to all of the administering agencies. 4 This list
of additional federal programs may not be comprehensive because not all
agencies provide data to CFDA (see app. IV).




3
 The nine economic activities are supporting entrepreneurial efforts, supporting business
incubators and accelerators, constructing and renovating commercial buildings,
constructing and renovating industrial parks and buildings, strategic planning and
research, marketing and access to new markets for products and industries, supporting
telecommunications and broadband infrastructure, supporting physical infrastructure, and
supporting tourism.
4
 We have previously identified incomplete or inaccurate data in the CFDA, but we chose
to rely on it for our purposes in this report because it is the only source that contains
information on programs from many different federal agencies. We did not assess the data
reliability of the CFDA. OMB has compiled initial lists of agencies and programs that
contribute to crosscutting goals, as required by GPRAMA, on performance.gov, including
those related to the entrepreneurship and small business goal. However, OMB noted that
this was not meant to be comprehensive of all programs with any contribution to the
crosscutting goals, and that they are continuing to update these lists.




Page 39                                            GAO-12-819 Entrepreneurial Assistance
Appendix I: Objectives, Scope and
Methodology




We conducted this performance audit from June 2011 to July 2012 in
accordance with generally accepted government auditing standards.
Those standards require that we plan and perform the audit to obtain
sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe that
the evidence obtained provides a reasonable basis for our findings and
conclusions based on our audit objectives.




Page 40                                   GAO-12-819 Entrepreneurial Assistance
Appendix II: Illustrative Examples of
                           Appendix II: Illustrative Examples of Economic
                           Activities



Economic Activities

                           In September 2000, we reported that there is no commonly accepted
                           definition for economic development. 1 Absent a common definition for
                           economic development, we subsequently developed a list of nine
                           activities most often associated with economic development. 2 In general,
                           we focused on economic activities that directly affected the overall
                           development of an area, such as job creation and economic growth,
                           rather than on activities that improved individuals’ quality of life, such as
                           housing and education. We previously relied on these economic activities
                           to identify 80 economic development programs administered by the U.S.
                           Departments of Agriculture (USDA), Commerce, and Housing and Urban
                           Development (HUD) and the Small Business Administration (SBA)
                           because these agencies have missions that focus on economic
                           development. 3 In this report, we identified illustrative examples of each of
                           the nine economic activities.


Illustrative Examples of   The following examples, which resulted from a review we conducted of
Economic Activities        academic journals and trade publications, illustrate a range of activities
                           that could be supported by programs that can fund at least one of the
                           economic activities. Examples include projects that are both publicly and
                           privately funded, with many receiving funding from multiple sources in
                           both sectors. They also had an explicit or implicit economic development
                           goal, such as job creation or economic growth.

                           1. Supporting entrepreneurial efforts. This activity is the focus of this
                              report, with programs grouped according to at least one of three types
                              of assistance that address different entrepreneurial needs: help
                              obtaining (1) technical assistance, which includes business training
                              and counseling and research and development support; (2) financial
                              assistance, which includes grants, loans, and venture capital; and (3)
                              government contracts, which involves helping entrepreneurs qualify
                              for federal procurement opportunities. Illustrative examples of this
                              activity include the following initiatives:



                           1
                            GAO, Economic Development: Multiple Federal Programs Fund Similar Economic
                           Development Activities, GAO/RCED/GGD-00-220 (Washington, D.C.: Sept. 29, 2000).
                           2
                            GAO, Rural Economic Development: More Assurance Is Needed That Grant Funding
                           Information Is Accurately Reported, GAO-06-294 (Washington, D.C.: Feb. 24, 2006).
                           3
                            GAO-11-318SP, GAO-11-477R and GAO-12-342SP.




                           Page 41                                          GAO-12-819 Entrepreneurial Assistance
Appendix II: Illustrative Examples of Economic
Activities




    •     Individuals in an Iowa community formed an association of
          entrepreneurs to provide a broad range of services to
          entrepreneurs, including technical assistance in the form of
          mentor counseling, training sessions on various topics, and
          hosting conferences.

    •     A California community provided both financial and technical
          support to local small businesses in order to redevelop a business
          district. Businesses received micro-grants—small grants of $5,000
          each—and were also required to participate in free workshops
          designed to give them additional tools and resources to succeed
          in a challenging marketplace. These workshops were produced by
          an SBA-funded Small Business Development Center.

    •     Iowa provided financial assistance to entrepreneurs through loan
          guarantees and a publicly funded limited liability corporation that
          could coordinate venture capital investments. The initiative was
          designed to increase capital levels and stimulate the creation of
          more local seed funds.

2. Supporting business incubators and accelerators. This activity can
   include all of the elements of entrepreneurial efforts, but combines
   these types of assistance with a facility that supports multiple
   businesses and may provide shared access to office space,
   technology, and other support services. Illustrative examples of this
   activity include the following initiatives:

    •     A technology business incubator was established at a Florida
          university so its faculty and service partners can provide business
          opportunities to client companies. The facility has grown to
          support a number of services to assist start-up businesses,
          including office and laboratory space, educational programs, and
          networking and mentoring opportunities with other experienced
          entrepreneurs.

    •     An Ohio community created a business accelerator that is
          designed to assist small, established companies, rather than
          businesses in their infancy, in becoming financially viable and
          creating jobs in the region. This facility includes office space,
          access to technology, and a variety of support services. The
          accelerator also collaborates with a center funded by SBA’s Small
          Business Development Centers program and a local community
          college, which provide coaching and mentoring sessions,



Page 42                                          GAO-12-819 Entrepreneurial Assistance
Appendix II: Illustrative Examples of Economic
Activities




          business plan reviews, workshops, training, referrals, and
          assistance in obtaining capital.

    •     An economic development organization in Pennsylvania created a
          network of business incubators and accelerators focused on
          developing and commercializing technology to create high-paying,
          sustainable jobs. The initiative supports early-stage and
          established companies with funding, support services, and a
          network of experts in related industries and academia.

3. Constructing and renovating commercial buildings. This activity can
   include support for the construction and renovation of buildings
   established for commercial purposes, such as for retail and office
   space. Illustrative examples of this activity include the following
   initiatives:

    •     A community in Iowa renovated a historic building that used to be
          a store to attract a large technology firm’s service center. The
          renovations were designed to meet the firm’s sustainability vision
          and were financed by public and private sources.

    •     A community in Arizona renovated a high school to create a new
          research laboratory. Further buildings were constructed in the
          area around this project to create a biomedical campus for both
          commercial and academic purposes.

    •     A community in Iowa renovated buildings in a historic millwork
          district to create urban mixed-use developments, which are
          designed to attract both commercial and residential activity.

4. Constructing and renovating industrial parks and buildings. This
   activity can include support for the construction and renovation of
   buildings and campuses established for industrial purposes, such as
   for manufacturing. Illustrative examples of this activity include the
   following initiatives:

    •     A public-private partnership in Nevada constructed an industrial
          park with new access to a freeway and energy infrastructure. The
          facility was zoned for heavy industry and designed to be away
          from population centers.

    •     A community in Massachusetts administered the transition of a
          former military base into a light industrial area focused on



Page 43                                          GAO-12-819 Entrepreneurial Assistance
Appendix II: Illustrative Examples of Economic
Activities




          sustainable development and attracted both small and large firms
          to the redeveloped area.

    •     A public-private partnership in a North Carolina created several
          multi-jurisdictional business parks intended to improve local
          economies. These parks serve a number of industrial purposes,
          including technology, manufacturing, distribution, and logistics.
          Local governments obtained funding to conduct site evaluations
          and certification through Commerce’s Economic Development
          Administration and HUD’s Community Development Block Grant
          program.

5. Strategic planning and research. This activity includes plans for
   recruiting new businesses or industry clusters, economic research
   and analyses, and regional coordination and planning across
   jurisdictions and sectors. Illustrative examples of this activity include
   the following initiatives:

    •     Local officials in a southeastern state formed a regional economic
          development organization to better coordinate economic and
          workforce development. The organization engages in marketing
          and recruitment of businesses and fosters partnerships between
          various public- and private-sector entities in the region.

    •     A California community developed a plan for a business district to
          create jobs and produce savings for businesses. The plan defined
          resources, timeframes, and types of assistance needed to execute
          this strategy.

    •     A regional consortium operating in areas of two southern states
          conducted research on their area’s economic strengths and
          developed an action plan to leverage these strengths. Research
          included the identification of industry clusters that could be well
          suited to the area.

6. Marketing and access to new markets for products and industries.
   This activity may include marketing of both new and existing products
   and industries, facilitating access to new markets, and supporting new
   uses for existing products. Illustrative examples of this activity include
   the following initiatives:

    •     A publicly funded regional technology center in New York provides
          a range of resources for local manufacturing and technology



Page 44                                          GAO-12-819 Entrepreneurial Assistance
Appendix II: Illustrative Examples of Economic
Activities




          companies, including assistance with developing sales and growth
          strategies, conducting marketing activities for increased market
          share and revenue in existing or new markets, and identifying new
          customers and market niches.

    •     A regional economic development organization in North Carolina
          formed an energy industry cluster that included a bio-energy
          facility where businesses are colocated with a landfill. These
          businesses are able to sell what were formerly waste products in
          new markets, such as alternative fuels and wood pallets.

    •     Several southern and Midwestern states have leveraged federal
          and state funds to assist rural businesses with e-commerce
          strategies, including assistance reaching global markets and
          strengthening competitive market advantages. Both USDA and
          Commerce provided some funding for this initiative.

7. Supporting telecommunications and broadband infrastructure. This
   activity may include building, refurbishing, and enhancing
   infrastructure used to expand access and improve the speed and
   reliability of Internet access, wireless phone services, and other
   electronic communication methods. Illustrative examples of this
   activity include the following initiatives:

    •     A public-private partnership in a city in Ohio provides businesses
          and residents with an underground conduit network that supports
          multiple fiber-based systems for voice, data, and video
          communications, intended to provide high-speed access to the
          global marketplace.

    •     A multi-state rural regional development organization in the
          southwestern United States coordinated the construction of a
          broadband Internet network that was intended to generate new
          opportunities for economic development. The initiative was funded
          by both private and public investments and covered a large
          geographic area.

    •     Regional leaders collaborated with a state commission to expand
          broadband infrastructure to businesses, schools, and industrial
          parks in a Virginia city. The high-speed network is noted to be
          comparable to or faster than that of any other metropolitan area of
          the country, is available at a relatively low cost, and is intended to
          attract businesses to the area.



Page 45                                          GAO-12-819 Entrepreneurial Assistance
Appendix II: Illustrative Examples of Economic
Activities




8. Supporting physical infrastructure. This activity includes constructing
   and repairing infrastructure related to (1) transportation, such as
   roads, airports and rail; (2) water and sewer; (3) energy; and (4) other
   amenities, such as pedestrian areas, parking, and beautification
   projects. Illustrative examples of this activity include the following
   initiatives:

    •     A community in New York is planning to renovate a business district
          by creating new rail service, a pedestrian mall, and green space.

    •     A community in Ohio renovated their underdeveloped downtown
          area by constructing better roads and pedestrian space, improving
          green space, and moving power lines underground. The project
          was part of a plan to reduce blight and make the area more
          accessible for visitors.

    •     A community in North Carolina renovated a vacant textile
          manufacturing space and downtown area to create a scientific
          research campus, facilitating this work through water line
          replacements, the addition of a pedestrian tunnel, and road
          improvements.

9. Supporting tourism. This activity includes marketing, infrastructure
   improvement, planning, and research specifically related to
   developing and improving tourism, as well as supporting special
   events and festivals to attract visitors. Illustrative examples of this
   activity include the following initiatives:

    •     A community in Kentucky improved trails in natural areas to attract
          tourists for horseback riding and other recreational uses. In addition
          to trail improvements, the community utilized survey research,
          marketing, and special events to draw visitors to the area.

    •     A community in North Carolina entered into public-private
          partnerships to construct a cluster of tourist venues that included
          sports and arts museums, an arena, convention center, and
          performing arts venues. The community utilized a strategic plan
          for development and a branded name to market the area.

    •     A county in Mississippi partnered with other regional entities to
          market their gaming industry and other amenities as part of a
          broader regional campaign. This new partnership promoted
          region-wide tourism and focused on key markets that the area
          may draw visitors from.




Page 46                                          GAO-12-819 Entrepreneurial Assistance
Appendix III: Performance Goals and Accomplishments
Appendix III: Performance Goals and Accomplishments for 52 Programs that Can Support Entrepreneurs, Fiscal Year 2011




for 52 Programs that Can Support Entrepreneurs, Fiscal
Year 2011
                                                                                                                                                           Met
                                                            Fiscal year 2011                             Fiscal year 2011          Fiscal year 2011 Actual Individual Met All
                                                                           a                                                                    b
Agency            Program Name and Mission                      Obligations Performance Measures         Performance Goal          Performance             Goals      Goals
Department of     Grants for Public Works and                 $114,529,000 Private investment            Private investment        Private investment          Yes       Partial
Commerce          Economic Development Facilities                          leveraged (3, 6, and 9        leveraged–9 year          leveraged–9 year totals
(Commerce) –      Supports the construction or                             years after award)            totals (in millions):     (in millions): $3,960
Economic          rehabilitation of essential public                                                     $1,940                    Private investment
Development       infrastructure and facilities necessary                                                Private investment        leveraged–6 year totals
Administration    to support job creation, attract                                                       leveraged–6 year          (in millions): $1,617
(EDA)c            private-sector capital, and promote                                                    totals (in millions):     Private investment
                  regional competitiveness, innovation,                                                  $674                      leveraged–3 year totals
                  and entrepreneurship, including                                                        Private investment        (in millions): $1,475
                  investments that expand and                                                            leveraged–3 year
                  upgrade infrastructure to attract new                                                  totals (in millions):
                  industry, support technology-led                                                       $244.6
                  development, accelerate new
                  business development, and enhance
                  the ability of regions to capitalize on
                  opportunities presented by free trade.
Commerce          Grants for Public Works and                                Total jobs created/retained Jobs created/retained     Jobs created/retained–9     Partial
EDA               Economic Development Facilities                            (3, 6, and 9 years after    –9 year totals: 57,800    year totals: 56,058 Jobs
                                                                             award)                      Jobs created/retained     created/retained–6 year
                                                                                                         –6 year totals: 18,193    totals: 26,416 Jobs
                                                                                                         Jobs created/retained     created/retained–3 year
                                                                                                         –3 year totals: 6,256     totals: 14,842




                                                                   Page 47                                             GAO-12-819 Entrepreneurial Assistance
                                                             Appendix III: Performance Goals and Accomplishments for 52
                                                             Programs that Can Support Entrepreneurs, Fiscal Year 2011



                                                                                                                                                        Met
                                                      Fiscal year 2011                               Fiscal year 2011          Fiscal year 2011         Individual Met All
                                                                     a                                                                           b
Agency     Program Name and Mission                       Obligations Performance Measures           Performance Goal          Actual Performance       Goals      Goals
Commerce   Economic Adjustment Assistance                $78,720,000 Private investment              Private investment        Private investment      Yes         Partial
EDA        Supports economically distressed                          leveraged (3, 6, and 9          leveraged–9 year totals   leveraged–9 year totals
           communities in their ability to compete                   years after award)              (in millions): $1,940     (in millions): $3,960
           economically by stimulating private                                                       Private investment        Private investment
           investment and promoting job creation in                                                  leveraged–6 year totals   leveraged–6 year totals
           targeted areas. Current investment                                                        (in millions): $674       (in millions): $1,617
           priorities include proposals that foster                                                  Private investment        Private investment
           innovation and enhance regions’ global                                                    leveraged–3 year totals   leveraged–3 year totals
           economic competitiveness by supporting                                                    (in millions): $244.6     (in millions): $1,475
           existing industry clusters, developing
           emerging new clusters, or attracting new
           regional economic drivers.
Commerce   Economic Adjustment Assistance                              Total jobs created/retained   Jobs created/retained–    Jobs created/retained–   Partial
EDA                                                                    (3, 6, and 9 years after      9 year totals: 57,800     9 year totals: 56,058
                                                                       award)                        Jobs created/retained–    Jobs created/retained–
                                                                                                     6 year totals: 18,193     6 year totals: 26,416
                                                                                                     Jobs created/retained–    Jobs created/retained–
                                                                                                     3 year totals: 6,256      3 year totals: 14,842
Commerce   Global Climate Change Mitigation              $17,466,000 Private investment              Private investment        Private investment      Yes         Partial
EDA        Incentive Fund                                            leveraged (3, 6, and 9          leveraged–9 year totals   leveraged–9 year totals
           Supports economic development                             years after award)              (in millions): $1,940     (in millions): $3,960
           projects that create jobs through, and                                                    Private investment        Private investment
           increase private capital investment in,                                                   leveraged–6 year totals   leveraged–6 year totals
           efforts to limit the nation’s dependence                                                  (in millions): $674       (in millions): $1,617
           on fossil fuels, enhance energy                                                           Private investment        Private investment
           efficiency, curb greenhouse gas                                                           leveraged–3 year totals   leveraged–3 year totals
           emissions, and protect natural systems.                                                   (in millions): $244.6     (in millions): $1,475
           The program helps to cultivate
           innovations that can fuel “green growth”
           in communities suffering from economic
           distress.
Commerce   Global Climate Change Mitigation                            Total jobs created/retained   Jobs created/retained–    Jobs created/ retained– Partial
EDA        Incentive Fund                                              (3, 6, and 9 years after      9 year totals: 57,800     9 year totals: 56,058
                                                                       award)                        Jobs created/retained–    Jobs created/ retained–
                                                                                                     6 year totals: 18,193     6 year totals: 26,416
                                                                                                     Jobs created/retained–    Jobs created/ retained–
                                                                                                     3 year totals: 6,256      3 year totals: 14,842




                                                             Page 48                                            GAO-12-819 Entrepreneurial Assistance
                                                                Appendix III: Performance Goals and Accomplishments for 52
                                                                Programs that Can Support Entrepreneurs, Fiscal Year 2011



                                                                                                                                                           Met
                                                        Fiscal year 2011                                  Fiscal year 2011      Fiscal year 2011           Individual Met All
                                                                       a                                                                          b
Agency     Program Name and Mission                         Obligations Performance Measures              Performance Goal      Actual Performance         Goals      Goals
Commerce   Economic Development/Technical                   $13,373,000 Percentage of University     75%                        68%                        No         Partial
EDA        Assistance                                                   Center clients taking action
           Provides focused assistance to public                        as a result of the
           and nonprofit leaders to help in                             assistance facilitated
           economic development decision making
           (e.g., project planning, impact analyses,
           feasibility studies). The program also
           supports the University Center Economic
           Development Program, which makes the
           resources of universities available to the
           economic development community.
Commerce   Economic Development/Technical                                 Percentage of those         80%                       83%                        Yes
EDA        Assistance                                                     actions taken by University
                                                                          Center clients that
                                                                          achieved expected results
Commerce   Economic Development/Support for                 $31,352,000 Percentage of economic            95%                   86%                        No         No
EDA        Planning Organizations                                       development districts and
           Provides planning assistance to provide                      Indian tribes implementing
           support to Planning Organizations (as                        economic development
           defined in 13 CFR 303.2) for the                             projects from the
           development, implementation, revision,                       comprehensive economic
           or replacement of a Comprehensive                            development strategy that
           Economic Development Strategy, short-                        lead to private investment
           term planning efforts, and state plans                       and jobs
           designed to create and retain higher-
           skill, higher-wage jobs, particularly for
           the unemployed and underemployed in
           the nation’s most economically
           distressed regions.
Commerce   Economic Development/Support for                               Percentage of substate          89%                   85%                        No
EDA        Planning Organizations                                         jurisdiction members
                                                                          actively participating in the
                                                                          economic development
                                                                          district program
Commerce   Trade Adjustment Assistance (TAA) for        $15,418,000       Percentage of TAA Center        90%                   73%                        No         Partial
EDA        Firms                                                          clients taking action as a
           The program helps economically                                 result of the assistance
           distressed U.S. businesses in building                         facilitated
           competitiveness strategies to increase


                                                                Page 49                                            GAO-12-819 Entrepreneurial Assistance
                                                                   Appendix III: Performance Goals and Accomplishments for 52
                                                                   Programs that Can Support Entrepreneurs, Fiscal Year 2011



                                                                                                                                                                Met
                                                            Fiscal year 2011                             Fiscal year 2011            Fiscal year 2011           Individual Met All
                                                                           a                                                                           b
Agency        Program Name and Mission                          Obligations Performance Measures         Performance Goal            Actual Performance         Goals      Goals
              exports and thereby create jobs. The
              program provides technical assistance to
              U.S. businesses that have lost sales and
              employment due to increased imports of
              similar or competitive goods and
              services. Technical assistance is
              provided through a nationwide network
              of eleven Economic Development
              Administration-funded Trade Adjustment
              Assistance Centers.
Commerce      Trade Adjustment Assistance for Firms                          Percentage of actions       95%                         100%                       Yes
EDA                                                                          taken by TAA Center
                                                                             clients that achieved
                                                                             expected results
Commerce –    Native American Business Enterprise                       $0 Dollar value of contract      $1.1 billion                $2.1 billion               Yes        Yes
                                   d
Minority      Centers (NABEC)                                              awards obtained
Business      The program promotes the growth and
Development   competitiveness of businesses owned by
Agency        Native Americans and eligible minorities.
(MDBA)        NABEC operators leverage project staff
              and professional consultants to provide
              a wide range of direct business
              assistance services to Native American
              tribal entities and eligible minority-owned
              firms. NABEC services include, but are
              not limited to, initial consultations and
              assessments, business technical
              assistance, and access to federal and
              nonfederal procurement and financing
              opportunities.
Commerce      Native American Business Enterprise                            Dollar value of financial   $0.9 billion                $1.8 billion               Yes
MBDA          Centers                                                        awards obtained
Commerce      Native American Business Enterprise                            Number of jobs created      5,000                       5,787                      Yes
MBDA          Centers
Commerce      Minority Business Center (MBC)                   $17,948,122 Dollar value of contract      $1.1 billion                $2.1 billion               Yes        Yes
MBDA          The program promotes the growth and                          awards obtained
              competitiveness of eligible minority-
              owned businesses. MBC operators
              leverage project staff and professional


                                                                   Page 50                                              GAO-12-819 Entrepreneurial Assistance
                                                                     Appendix III: Performance Goals and Accomplishments for 52
                                                                     Programs that Can Support Entrepreneurs, Fiscal Year 2011



                                                                                                                                                                      Met
                                                              Fiscal year 2011                                 Fiscal year 2011            Fiscal year 2011           Individual Met All
                                                                             a                                                                               b
Agency          Program Name and Mission                          Obligations Performance Measures             Performance Goal            Actual Performance         Goals      Goals
                consultants to provide a wide range of
                direct business assistance services to
                eligible minority-owned firms. Services
                include initial consultations and
                assessments, business technical
                assistance, and access to federal and
                nonfederal procurement and financing
                opportunities. MBDA currently funds a
                network of 30 MBC projects located
                throughout the United States.
Commerce        Minority Business Center                                           Dollar value of financial   $0.9 billion                $1.8 billion               Yes
MBDA                                                                               awards obtained
Commerce        Minority Business Center                                           Number of jobs created      5,000                       5,787                      Yes
MBDA
Department of   Community Development Block Grant                  $ 214,396e Jobs created and retained        None                        15,549                     N/A        N/A
Housing and     (CDBG)/Insular Areas
Urban           HUD annually allocates $7 million of
Development     CDBG funds to the Insular Areas
(HUD)           program in proportion to the populations
                of the eligible territories. The program is
                administered by HUD’s field offices in
                Puerto Rico and Hawaii. The CDBG
                programs allocate annual grants to
                develop viable communities by providing
                decent housing, a suitable living
                environment, and opportunities to
                expand economic opportunities,
                principally for low- and moderate-income
                persons.
HUD             CDBG/Insular Areas                                                 Businesses assisted         None                        24,331                     N/A
                                                                               f
HUD             CDBG/Entitlement Grants                         $325,549,306 Jobs created and retained         None                        15,549                     N/A        N/A
                The CDBG program works to ensure
                decent affordable housing, to provide
                services to the most vulnerable in our
                communities, and to create jobs through
                the expansion and retention of
                businesses. The CDBG entitlement
                program allocates annual grants to
                larger cities and urban counties to


                                                                     Page 51                                                  GAO-12-819 Entrepreneurial Assistance
                                                              Appendix III: Performance Goals and Accomplishments for 52
                                                              Programs that Can Support Entrepreneurs, Fiscal Year 2011



                                                                                                                                                       Met
                                                      Fiscal year 2011                              Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                                     a                                                                        b
Agency   Program Name and Mission                         Obligations Performance Measures          Performance Goal        Actual Performance         Goals      Goals
         develop viable communities by providing
         decent housing, a suitable living
         environment, and opportunities to
         expand economic opportunities,
         principally for low- and moderate-income
         persons.
HUD      CDBG/Entitlement Grants                                        Businesses assisted         None                    24,331                     N/A
HUD      CDBG/States                                    $559,961,961g Jobs created and retained     None                    15,549                     N/A        N/A
         The primary statutory objective of the
         CDBG States program is to develop
         viable communities by providing decent
         housing, a suitable living environment,
         and opportunities to expand economic
         opportunities, principally for low- and
         moderate-income persons. The state
         must ensure that at least 70 percent of
         its CDBG grant funds are used for
         activities that benefit low- and moderate-
         income persons over a 1-, 2-, or 3-year
         time period selected by the state.
HUD      CDBG/States                                                    Businesses assisted         None                    24,331                     N/A
HUD      CDBG/Non-entitlement CDBG Grants in                $338,257h Jobs created and retained     None                    15,549                     N/A        N/A
         Hawaii
         HUD continues to administer the program
         for the non-entitlement counties in the
         state of Hawaii because the state has
         permanently elected not to participate in
         the State CDBG program. The CDBG
         programs allocate annual grants to
         develop viable communities by providing
         decent housing, a suitable living
         environment, and opportunities to expand
         economic opportunities, principally for
         low- and moderate-income persons.
HUD      CDBG/Non-entitlement CDBG Grants in                            Businesses assisted         None                    24,331                     N/A
         Hawaii




                                                              Page 52                                          GAO-12-819 Entrepreneurial Assistance
                                                             Appendix III: Performance Goals and Accomplishments for 52
                                                             Programs that Can Support Entrepreneurs, Fiscal Year 2011



                                                                                                                                                      Met
                                                      Fiscal year 2011                             Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                                     a                                                                       b
Agency   Program Name and Mission                         Obligations Performance Measures         Performance Goal        Actual Performance         Goals      Goals
HUD      CDBG/Section 108 Loan Guarantees                 $6,000,000 Jobs proposed to be           None                    7,306                      N/A        N/A
         Section 108 is the loan guarantee                           created or retained
         provision of the CDBG program. Section
         108 provides communities with a source
         of financing for economic development,
         housing rehabilitation, public facilities,
         and large-scale physical development
         projects. It allows them to transform a
         small portion of their CDBG funds into
         federally guaranteed loans large enough
         to pursue physical and economic
         revitalization projects that can renew
         entire neighborhoods.
HUD      CDBG/Brownfields Economic                                $0 Jobs proposed to be           3,157                   2,409                      No         No
         Development Initiative (BEDI)                               created or retained
         The purpose of the BEDI program is to
         spur the return of brownfields to
         productive economic use through
         financial assistance to public entities in
         the redevelopment of brownfields and
         enhance the security or improve the
         viability of a project financed with
         Section 108-guaranteed loan authority.
HUD      CDBG Disaster Recovery Grantsi                           $0 Businesses assisted           None                    N/A                        N/A        N/A
         Grantees may use CDBG Disaster
         Recovery funds for recovery efforts
         involving housing, economic
         development, infrastructure, and
         prevention of further damage to affected
         areas, if such use does not duplicate
         funding available from the Federal
         Emergency Management Agency, the
         Small Business Administration, and the
         U.S. Army Corps of Engineers. The
         mission and goals of the CDBG Disaster
         Recovery Grants program may be
         expanded or limited per the individual
         appropriation that it receives each year.




                                                             Page 53                                          GAO-12-819 Entrepreneurial Assistance
                                                               Appendix III: Performance Goals and Accomplishments for 52
                                                               Programs that Can Support Entrepreneurs, Fiscal Year 2011



                                                                                                                                                         Met
                                                        Fiscal year 2011                              Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                                       a                                                                        b
Agency   Program Name and Mission                           Obligations Performance Measures          Performance Goal        Actual Performance         Goals      Goals
HUD      CDBG Disaster Recovery Grants                                   Permanent jobs created     None                      N/A                        N/A
                                                                         (tracked by low income,
                                                                         moderate income and total)
HUD      CDBG Disaster Recovery Grants                                   Permanent jobs retained    None                      N/A                        N/A
                                                                         (tracked by low income,
                                                                         moderate income and total)
HUD      CDBG Disaster Recovery Grants                                   Number of buildings          None                    N/A                        N/A
                                                                         (nonresidential) assisted
HUD      Section 4 Capacity Building for Affordable        $50,000,000 Number of trainings            794                     Not reported               Unknown    Unknown
         Housing and Community Development                             created and provided to
         Through funding of national intermediaries,                   Community Development
         the Section 4 Capacity Building program                       Corporations (CDC)
         enhances the capacity and ability of
         community development corporations and
         community housing development
         organizations to carry out community
         development and affordable housing
         activities and to attract private investment
         for housing, economic development, and
         other community revitalization activities
         that benefit low-income families.
HUD      Section 4 Capacity Building for                                 Development cost             $988 million            Not reported               Unknown
         Affordable Housing and Community                                estimates of community
         Development                                                     development projects
                                                                         funded by CDCs
HUD      Section 4 Capacity Building for                                 Number of homes              6,060                   Not reported               Unknown
         Affordable Housing and Community                                renovated, preserved or
         Development                                                     newly constructed
HUD      Section 4 Capacity Building for                                 Efficiency measure of per-   None                    N/A                        N/A
         Affordable Housing and Community                                unit cost of capacity
         Development                                                     building for housing units
                                                                         developed or renovated
HUD      Rural Innovation Fundj                                    $0k Number of full-time and        None                    N/A                        N/A        N/A
         The Rural Innovation Fund program was                         part-time jobs created
         established to improve the quality of life
         for residents of distressed rural areas by
         supporting innovative and catalytic
         economic development and housing


                                                               Page 54                                           GAO-12-819 Entrepreneurial Assistance
                                                              Appendix III: Performance Goals and Accomplishments for 52
                                                              Programs that Can Support Entrepreneurs, Fiscal Year 2011



                                                                                                                                                       Met
                                                       Fiscal year 2011                             Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                                      a                                                                       b
Agency   Program Name and Mission                          Obligations Performance Measures         Performance Goal        Actual Performance         Goals      Goals
         programs. The program is designed to
         support
         (1) job creation through business
         development and expansion,
         (2) investment in human capital through
         job training and education; and
         (3) expanding the supply of affordable
         housing with access to job centers or
         transportation.
         Rural Innovation Fund grantees are
         selected through a competitive process.
HUD      Rural Innovation Fund                                          Number of persons           None                    N/A                        N/A
                                                                        receiving job training
HUD      Rural Innovation Fund                                          Number of new businesses None                       N/A                        N/A
                                                                        opened
HUD      Rural Innovation Fund                                          Number of affordable        None                    N/A                        N/A
                                                                        housing units constructed
HUD      Rural Innovation Fund                                          Number of residents         None                    N/A                        N/A
                                                                        receiving homeownership
                                                                        counseling
HUD      Hispanic-Serving Institutions Assisting                   $0 None                          N/A                     N/A                        N/A        N/A
         Communities
         The Hispanic-Serving Institutions
         Assisting Communities program helps
         Hispanic-Serving Institutions expand
         their role and effectiveness in
         addressing community development
         needs in their localities, including
         revitalization, housing, and economic
         development, principally for persons of
         low and moderate income. Accredited
         Hispanic-Serving Institutions of higher
         education that provide 2- and 4-year
         degrees are eligible to participate in this
         program. For an institution to qualify as a
         Hispanic-Serving Institution, at least 25
         percent of the undergraduate enrollment
         must be Hispanic students.


                                                              Page 55                                          GAO-12-819 Entrepreneurial Assistance
                                                            Appendix III: Performance Goals and Accomplishments for 52
                                                            Programs that Can Support Entrepreneurs, Fiscal Year 2011



                                                                                                                                                       Met
                                                     Fiscal year 2011                              Fiscal year 2011         Fiscal year 2011           Individual Met All
                                                                    a                                                                         b
Agency   Program Name and Mission                        Obligations Performance Measures          Performance Goal         Actual Performance         Goals      Goals
HUD      Alaska Native/Native Hawaiian                           $0 None                           N/A                      N/A                        N/A        N/A
         Institutions Assisting Communities
         The Alaska Native/Native Hawaiian
         Institutions program helps these
         institutions expand their role and
         effectiveness in addressing community
         development needs in their localities,
         including revitalization, housing, and
         economic development, principally for
         persons of low and moderate income.
         The program encourages colleges and
         universities to integrate community
         engagement themes into their
         curriculum, academic studies, and
         student activities.
HUD      Indian CDBG                                    $64,000,000 Jobs created                   24                       0                          No         No
         The purpose of the Indian CDBG
         program is the development of viable
         Indian and Alaska Native communities,
         including the creation of decent housing,
         suitable living environments, and
         economic opportunities primarily for
         persons with low and moderate incomes
         as defined in 24 CFR 1003.4. Funds
         may be used to improve housing stock,
         provide community facilities, improve
         infrastructure, and expand job
         opportunities by supporting the
         economic development of the
         communities in some instances.
HUD      Indian CDBG                                                  Rehabilitated housing units 701                       409                        No
HUD      Indian CDBG                                                  Constructed community        49                       30                         No
                                                                      buildings
HUD      Indian CDBG                                                  Average cost per             None                     N/A                        N/A
                                                                      community building
HUD      Indian CDBG                                                  Average amount of Indian     None                     N/A                        N/A
                                                                      CDBG dollars spent per
                                                                      housing unit rehabilitated
Small    7(a) Loan Program                              $88,000,000 Loan dollars approved          $12.8 billion            $19.7 billion              Yes        Yes

                                                            Page 56                                            GAO-12-819 Entrepreneurial Assistance
                                                                      Appendix III: Performance Goals and Accomplishments for 52
                                                                      Programs that Can Support Entrepreneurs, Fiscal Year 2011



                                                                                                                                                                   Met
                                                               Fiscal year 2011                             Fiscal year 2011            Fiscal year 2011           Individual Met All
                                                                              a                                                                           b
Agency           Program Name and Mission                          Obligations Performance Measures         Performance Goal            Actual Performance         Goals      Goals
Business         The 7(a) Loan Program is SBA’s primary
Administration   program for helping start-up and existing
(SBA)            small businesses, with financing
                 guaranteed for a variety of general
                 business purposes. 7(a) loans are the
                 most basic and most commonly used type
                 of loans. They are also the most flexible,
                 since financing can be guaranteed for a
                 variety of general business purposes,
                 including working capital, machinery and
                 equipment, furniture and fixtures, land and
                 building (including purchase, renovation
                 and new construction), leasehold
                 improvements, and debt refinancing
                 (under special conditions).
SBA              7(a) Loan Program                                              Small businesses assisted   40,700                      46,749                     Yes
SBA              7(a) Loan Program                                              Jobs supported              474,100                     582,707                    Yes
SBA              7(a) Loan Program                                              Active lending partnersl    3,000                       3,537                      Yes
SBA              7(a) Loan Program                                              Underserved markets–        24,800                      28,389                     Yes
                                                                                small businesses assisted
SBA              7(a) Loan Program                                              Cost per small business     None                        $1,882                     N/A
                                                                                assisted
SBA              504 Loan Program                                 $38,888,000 Loan dollars approved         $4.8 billion                $4.8 billion               Yes        Partial
                 The 504 Loan Program provides growing
                 businesses with long-term, fixed-rate
                 financing for major fixed assets, such as
                 land and buildings. A typical 504 project
                 includes a loan secured from a private-
                 sector lender with a senior lien covering
                 up to 50 percent of the project cost, a
                 loan secured from a Certified
                 Development Company (backed by a
                 100 percent SBA-guaranteed debenture)
                 with a junior lien covering up to 40
                 percent of the total cost, and a
                 contribution from the borrower of at least
                 10 percent equity.
SBA              504 Loan Program                                               Small businesses assisted   8,100                       7,752                      No


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                                                                                                                                                          Met
                                                      Fiscal year 2011                             Fiscal year 2011            Fiscal year 2011           Individual Met All
                                                                     a                                                                           b
Agency   Program Name and Mission                         Obligations Performance Measures         Performance Goal            Actual Performance         Goals      Goals
SBA      504 Loan Program                                              Jobs supported              88,800                      87,337                     No
SBA      504 Loan Program                                              Underserved market –        4,800                       4,548                      No
                                                                       small businesses assisted
SBA      504 Loan Program                                              Active lending partners     267                         249                        No
SBA      504 Loan Program                                              Cost per small business     None                        $5,017                     N/A
                                                                       assisted
SBA      Microloan Program                               $38,729,000 Small businesses assisted     4,600                       3,999                      No         Partial
         SBA’s Microloan Program provides small
         businesses with small, short-term loans
         for working capital or the purchase of
         inventory, supplies, furniture, fixtures,
         machinery or equipment. SBA makes
         funds available to specially designated
         intermediary lenders, which are nonprofit
         organizations with experience in lending
         and technical assistance. These
         intermediaries then make loans to
         eligible borrowers in amounts up to a
         maximum of $50,000.
SBA      Microloan Program                                             Jobs supported              14,500                      13,271                     No
SBA      Microloan Program                                             Loans approved by           $65 million                 $47 million                No
                                                                       microlenders
SBA      Microloan Program                                             Businesses Counseled        6,500                       15,900                     Yes
SBA      Microloan Program                                             Underserved markets–        4,600                       3,999                      No
                                                                       small businesses assisted
SBA      Microloan Program                                             Active lending partners     126                         121                        No
SBA      Microloan Program                                             Cost per small business     None                        $9,685                     N/A
                                                                       assisted
SBA      Surety Bond Guarantee Program                    $4,865,000 Contract value of bid and     $3.3 billion                $3.7 billion               Yes        Yes
         SBA provides and manages surety bond                        final bonds
         guarantees for qualified small and
         emerging businesses through the Surety
         Bond Guarantee Program. Participating
         sureties receive guarantees that SBA
         will assume a predetermined percentage
         of loss in the event the contractor should
         breach the terms of the contract.

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                                                                                                                                                              Met
                                                          Fiscal year 2011                             Fiscal year 2011            Fiscal year 2011           Individual Met All
                                                                         a                                                                           b
Agency   Program Name and Mission                             Obligations Performance Measures         Performance Goal            Actual Performance         Goals      Goals
SBA      Surety Bond Guarantee Program                                     Bid and final bonds         7,600                       8,638                      Yes
                                                                           guaranteed
SBA      Surety Bond Guarantee Program                                     Jobs supported              6,400                       17,421                     Yes
SBA      Surety Bond Guarantee Program                                     Cost per job supported      None                        $279                       N/A
SBA      Program for Investment in Micro-                     $8,863,000 None                          None                        N/A                        N/A        N/A
         Entrepreneurs (PRIME)
         PRIME provides assistance to various
         organizations. These organizations help
         low-income entrepreneurs who lack
         sufficient training and education to gain
         access to capital to establish and
         expand their small businesses.
SBA      Small Business Development Centers                 $130,323,000 Long-term counseling          61,000                      62, 117                    Yes        Partial
         (SBDC)                                                          clients
         SBDCs assist clients in gaining access to
         SBA loan programs and private capital to
         start up and expand their businesses.
         SBDC services are available to all small
         business populations. There are
         specialized programs for minorities,
         women, international trade, technology,
         energy efficiency, veterans, people with
         disabilities, and 8(a) firms in all stages, as
         well as individuals in low- and moderate-
         income urban and rural areas. The
         ultimate objective of the SBDC program is
         to support, strengthen, sustain, and grow
         local economies and business entities
SBA      Small Business Development Centers                                Small businesses created    12,500                      13,664                     Yes
SBA      Small Business Development Centers                                Jobs supported              None                        N/A                        N/A
SBA      Small Business Development Centers                                Capital infusions           $3.7 billion                $3.6 billion               No
SBA      Small Business Development Centers                                Cost per job supported      None                        N/A                        N/A
SBA      Small Business Development Centers                                Cost per small business     None                        $9,538                     N/A
                                                                           created




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                                                                                                                                                     Met
                                                     Fiscal year 2011                             Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                                    a                                                                       b
Agency   Program Name and Mission                        Obligations Performance Measures         Performance Goal        Actual Performance         Goals      Goals
SBA      Women’s Business Centers (WBC)                 $19,446,000 Small businesses assisted     135,000                 138,923                    Yes        Yes
         WBCs provide long-term training as well
         as counseling and mentoring services.
         By statute, WBCs fill a gap by focusing
         on women who are socially and
         economically disadvantaged. WBCs
         offer classes during regular working
         hours as well as during the evenings and
         weekends to serve clients who work
         during the day. The WBCs often provide
         counseling in multiple languages.
SBA      Women’s Business Centers                                     Small businesses created    618                     701                        Yes
SBA      Women’s Business Centers                                     Cost per small business     None                    $140                       N/A
                                                                      assisted
SBA      SCORE                                          $12,980,000 Small businesses assisted     349,867                 356,837                    Yes        Partial
         SCORE is a nonprofit association
         comprised of more than 13,000
         volunteer business professionals in more
         than 350 chapters and on-line
         nationwide, dedicated to educating and
         assisting entrepreneurs and small
         business owners in the formation,
         growth, and expansion of their small
         businesses through mentoring, business
         advising and training.
SBA      SCORE                                                        Small businesses created    1,082                   816                        No
SBA      SCORE                                                        Cost per small business     None                    $36.38                     N/A
                                                                      assisted
SBA      Veterans Business Outreach Centers              $8,995,000 Veterans assisted             100,000                 137,011                    Yes        Yes
         The Veterans Business Outreach
         program is designed to provide
         entrepreneurial development services
         such as business training, counseling
         and mentoring, and referrals for eligible
         veterans owning or considering starting
         a small business.
SBA      Veteran’s Business Outreach Centers                          Customer satisfaction       91%                     91%                        Yes



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                                                                                                                                                     Met
                                                     Fiscal year 2011                             Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                                    a                                                                       b
Agency   Program Name and Mission                        Obligations Performance Measures         Performance Goal        Actual Performance         Goals      Goals
SBA      Veteran’s Business Outreach Centers                          Cost per veteran assisted   None                    $65.65                     N/A
SBA      7(j) Technical Assistance                       $6,502,000 Small businesses assisted     3,550                   3,550                      Yes        Yes
         The 7(j) program provides qualifying
         businesses with counseling and training
         in the areas of financing, business
         development, management, accounting,
         bookkeeping, marketing, and other small
         business operating concerns.
SBA      7(j) Technical Assistance                                    Cost per small business     None                    $1,832                     N/A
                                                                      assisted
SBA      8(a) Business Development Program              $58,274,000 Small businesses assisted     9,457                   7,814                      No         No
         The 8(a) Business Development
         program provides various forms of
         assistance (management and technical
         assistance, government contracting
         assistance, and advocacy support) to
         foster the growth and development of
         businesses owned and controlled by
         socially and economically disadvantaged
         individuals. SBA assists these
         businesses, during their nine year tenure
         in the 8(a) Business Development
         program, in gaining equal access to the
         resources necessary to develop their
         businesses and improve their ability to
         compete.
SBA      8(a) Business Development Program                            Cost per small business     None                    $7,458                     N/A
                                                                      assisted
SBA      8(a) Business Development Program                            Contracts to small        5%                        Not reported               Unknown
                                                                      disadvantaged businesses,
                                                                      which includes 8(a)
                                                                      program participants (%)
SBA      Historically Underutilized Business Zones      $15,569,000 Small businesses assisted     4,000                   5,801                      Yes        Partial
         (HUBZone)
         The HUBZone program helps small
         businesses located in both urban and
         rural communities gain preferential
         access to federal procurement
         opportunities. These preferences go to

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                                                                                                                                                            Met
                                                        Fiscal year 2011                              Fiscal year 2011           Fiscal year 2011           Individual Met All
                                                                       a                                                                           b
Agency   Program Name and Mission                           Obligations Performance Measures          Performance Goal           Actual Performance         Goals      Goals
         small businesses that obtain HUBZone
         certification in part by employing staff who
         live in a HUBZone. The company must
         also maintain a “principal office” in one of
         these specially designated areas.
SBA      HUBZone                                                         Annual value of federal      $12 billion                $9.9 billion               No
                                                                         contracts
SBA      HUBZone                                                         Cost per small businesses    None                       $2,684                     N/A
                                                                         assisted
SBA      HUBZone                                                         Cost per federal contract    None                       $.0015                     N/A
                                                                         dollar
SBA      HUBZone                                                         Contracts to HUBZone         3%                         2.3%                       No
                                                                         firms
SBA      Procurement Assistance to Small                   $21,171,000 Percent of federal prime       For prime contracting, 21.65%                         No         No
         Businesses                                                    and subcontracting dollars     statutory goal is 23%;
         The program assists small businesses in                       awarded to small               for subcontracting,
         obtaining federal government contracts                        businesses                     there is no statutory
         and subcontracts.                                                                            goal, but SBA has set a
                                                                                                      goal of 35.9%.
SBA      Small Business Innovation Research                   $781,000 Commercialization /            None                       N/A                        N/A        N/A
         Program (SBIR)                                                Innovation
         The SBIR program encourages small                             •   Number of companies
         businesses to explore their technological                     •   Number of Phase II
         potential and provides the incentive to                           awards
         profit from its commercialization. Each
         year, 11 federal departments and                              •   Aggregate amount of
         agencies are required by SBIR to                                  SBIR award monies
         reserve a portion of their research and                           awarded to cohort
         development funds for awards to small                         •   Aggregate sales/
         businesses. SBA is the coordinating                               revenue from cohort
         agency for the SBIR program. It directs                       •   Aggregate additional
         the agencies’ implementation of SBIR,                             investment in cohort
         reviews their progress, and reports
                                                                       •   Number of exits –
         annually to Congress on the program’s
                                                                           Initial Public Offerings
         operation.
                                                                           or Merger and
                                                                           Acquisition activity
                                                                       •   Value of exits, in
                                                                           dollars


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                                                                                                                                     Met
                                    Fiscal year 2011                               Fiscal year 2011       Fiscal year 2011           Individual Met All
                                                   a                                                                        b
Agency   Program Name and Mission       Obligations Performance Measures           Performance Goal       Actual Performance         Goals      Goals
                                                     •    Number of employees
                                                          employed by awardees
                                                     •    Percent of awards that
                                                          brought products to
                                                          market (Note: Multiple
                                                          awards may lead to
                                                          only one product, but
                                                          all awards should be
                                                          given credit)
SBA      SBIR                                        Women and Minorities          None                   N/A                        N/A
                                                     •    Percentage of
                                                          awardees that are
                                                          minority owned
                                                     •    Percentage of
                                                          awardees that are
                                                          women owned
                                                     •    Percentage of
                                                          awardees that are
                                                          HUBZone
                                                     •    Percentage of
                                                          applicants that are
                                                          minority owned that
                                                          received an award
                                                     •    Percentage of
                                                          applicants that are
                                                          women owned that
                                                          received an award
SBA      SBIR                                        Efficiency and                None                   N/A                        N/A
                                                     Effectiveness
                                                     •    Time between close of
                                                          solicitation and
                                                          selection
                                                     •    Time between
                                                          selection and cash
                                                          awarded
                                                     •    Total sum of time
                                                          between close of
                                                          solicitation and cash
                                                          awarded


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                                                                                                                                                      Met
                                                      Fiscal year 2011                             Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                                     a                                                                       b
Agency   Program Name and Mission                         Obligations Performance Measures         Performance Goal        Actual Performance         Goals      Goals
SBA      SBIR                                                        Repeat-award winners         None                     N/A                        N/A
                                                                     •   Percentage of first-
                                                                         time Phase II
                                                                         awardees per year per
                                                                         agency
                                                                     •   Percent age of first-
                                                                         time Phase I awardees
                                                                         per year per agency
SBA      Small Business Technology Transfer                 $352,000 Commercialization /          None                     N/A                        N/A        N/A
         Program (STTR)                                              Innovation
         The STTR program encourages small                           •   Number of companies
         businesses to explore their technological                   •   Number of Phase II
         potential and provides the incentive to                         awards
         profit from its commercialization. Each                     •   Aggregate amount of
         year, five federal agencies are required                        SBIR award monies
         to reserve a portion of their research and                      awarded to cohort
         development funds for awards to small
         businesses. SBA is the coordinating                         •   Aggregate
         agency for the STTR program. It directs                         sales/revenue from
         the agencies’ implementation of STTR,                           cohort
         reviews their progress, and reports                         •   Aggregate additional
         annually to Congress on its operation.                          investment in cohort
         STTR requires cooperation with a                            •   Number of exits –
         university or approved research                                 Initial Public Offerings
         institution.                                                    or Merger and
                                                                         Acquisition activity
                                                                     •   Value of exits, in
                                                                         dollars
                                                                     •   Number of employees
                                                                         employed by
                                                                         awardees
                                                                     •   Percent of awards that
                                                                         brought products to
                                                                         market (Note: Multiple
                                                                         awards may lead to
                                                                         only one product, but
                                                                         all awards should be
                                                                         given credit)




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                                                                                                                                    Met
                                    Fiscal year 2011                             Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                   a                                                                       b
Agency   Program Name and Mission       Obligations Performance Measures         Performance Goal        Actual Performance         Goals      Goals
SBA      STTR                                        Women and Minorities       None                     N/A                        N/A
                                                     •    Percentage of
                                                          awardees that are
                                                          minority owned
                                                     •    Percentage of
                                                          awardees that are
                                                          women owned
                                                     •    Percentage of
                                                          awardees that are
                                                          HUBZone
                                                     •    Percentage of
                                                          applicants that are
                                                          minority owned that
                                                          received an award
                                                     •    Percentage of
                                                          applicants that are
                                                          women owned that
                                                          received an award
SBA      STTR                                        Efficiency and             None                     N/A                        N/A
                                                     Effectiveness
                                                     •    Time between close of
                                                          solicitation and
                                                          selection
                                                     •    Time between
                                                          selection and cash
                                                          awarded
                                                     •    Total sum of time
                                                          between close of
                                                          solicitation and cash
                                                          awarded
SBA      STTR                                        Repeat-award winners       None                     N/A                        N/A
                                                     •    Percentage of first-
                                                          time Phase II
                                                          awardees per year per
                                                          agency
                                                     •    Percentage of first-
                                                          time Phase I awardees
                                                          per year per agency



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                                                                                                                                                       Met
                                                       Fiscal year 2011                             Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                                      a                                                                       b
Agency   Program Name and Mission                          Obligations Performance Measures         Performance Goal        Actual Performance         Goals      Goals
SBA      Small Business Investment Company                $26,305,000 Small business assisted       1,150                   1,339                      Yes        Yes
         (SBIC) Program
         The SBIC program aims to increase the
         availability of venture capital to small
         businesses. SBICs are privately owned
         and managed investment funds, licensed
         and regulated by SBA, that use their own
         capital plus funds borrowed with an SBA
         guarantee to make equity and debt
         investments in qualifying small
         businesses.
SBA      SBIC                                                           Underserved markets–        345                     430                        Yes
                                                                        small businesses assisted
SBA      SBIC                                                           Amount of debenture         $2.6 million            $2.8 million               Yes
                                                                        leveraged committed to
                                                                        SBIC
SBA      SBIC                                                           Cost per small business     None                    $19,645                    N/A
                                                                        assisted
SBA      New Markets Venture Capital (NMVC)                       $0m Eligible small businesses     None                    N/A                        N/A        N/A
         Program                                                      assisted
         The purpose of the NMVC program is to
         promote economic development and the
         creation of wealth and job opportunities in
         low-income geographic areas and among
         individuals living in such areas through
         developmental venture capital
         investments in smaller enterprises
         located in such areas. Through public-
         private partnerships between SBA and
         businesses, the program is designed to
         serve the unmet equity needs of local
         entrepreneurs through developmental
         venture capital investments, provide
         technical assistance to small businesses,
         create quality employment opportunities
         for low-income area residents, and build
         wealth within low-income areas.




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                                                                                                                                                               Met
                                                               Fiscal year 2011                             Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                                              a                                                                       b
Agency          Program Name and Mission                           Obligations Performance Measures         Performance Goal        Actual Performance         Goals      Goals
SBA             Federal and State Technology                       $1,885,096 Eligible small businesses     None                    N/A                        N/A        N/A
                Partnership (FAST) Program                                    assisted
                The purpose of the FAST program is to
                strengthen the technological
                competitiveness of small business
                concerns in the U.S. by improving the
                participation of small technology firms in
                the innovation and commercialization of
                new technology.
SBA             FAST                                                            Outreach events held        None                    N/A                        N/A
SBA             International Trade                                $7,681,000 Loans approved                $400 million            $924 million               Yes        Yes
                The International Trade program helps
                small business exporters by providing
                loans for a number of activities
                specifically designed to help them
                develop or expand their export activities.
SBA             International Trade                                             Small and medium sized      990                     1,346                      Yes
                                                                                exporters assisted
SBA             International Trade                                             Lenders counseled/trained   4,000                   6,790                      Yes
SBA             International Trade                                             Cost per small and medium None                      $5,707                     N/A
                                                                                sized exporter assisted
U.S.            Intermediary Relending Program                     $7,364,000 Jobs created and saved        14,600                  14,601                     Yes        Yes
Department of   The purpose of the program is to alleviate
Agriculture     poverty and increase economic activity
(USDA)          and employment in rural communities.
                Under the program, loans are provided to
                local organizations (intermediaries) for the
                establishment of revolving loan funds.
                These revolving loan funds are used to
                assist with financing business and
                economic development activity to create
                or retain jobs in disadvantaged and
                remote communities.
USDA            Rural Business Enterprise Grants                  $ 38,586,000 Jobs created or saved        14,330                  13,265                     No         No
                Program
                The program provides grants for rural
                projects that finance and facilitate
                development of small and emerging rural

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                                                                                                                                                        Met
                                                        Fiscal year 2011                             Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                                       a                                                                       b
Agency   Program Name and Mission                           Obligations Performance Measures         Performance Goal        Actual Performance         Goals      Goals
         businesses, help fund business
         incubators, and help fund employment-
         related adult education programs. To
         assist with business development, the
         program may fund a broad array of
         activities.
USDA     Rural Business Opportunity Grant                   $2,581,000 Businesses assisted           950                     586                        No         No
         Program
         The program promotes sustainable
         economic development in rural
         communities with exceptional needs
         through provision of training and technical
         assistance for business development,
         entrepreneurs, and economic
         development officials and to assist with
         economic development planning.
USDA     Rural Microentrepreneur Assistance                 $6,668,000 Jobs created or saved         580                     1240                       Yes        Yes
         Program
         The purpose of the program is to support
         the development and ongoing success of
         rural microentrepreneurs and
         microenterprises. Direct loans and grants
         are made to selected microenterprise
         development organizations.
USDA     Rural Cooperative Development Grants               $8,424,000 Businesses assisted           326                     324                        No         No
         The primary objective of this grant
         program is to improve the economic
         condition of rural areas through the
         creation or retention of jobs and
         development of new rural cooperatives,
         value-added processing, and other rural
         businesses. Grant funds are provided for
         the establishment and operation of
         centers that have the expertise or that
         can contract out for the expertise to
         assist individuals or entities in the start-
         up, expansion, or operational
         improvement of rural businesses,
         especially cooperative or mutually
         owned businesses.

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                                                                                                                                                     Met
                                                     Fiscal year 2011                             Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                                    a                                                                       b
Agency   Program Name and Mission                        Obligations Performance Measures         Performance Goal        Actual Performance         Goals      Goals
USDA     Business and Industry Guaranteed               $70,202,000 Jobs created or saved         11,705                  27,806                     Yes        Yes
         Loans
         The purpose of the program is to
         improve, develop, or finance business,
         industry, and employment and improve
         the economic and environmental climate
         in rural communities. This purpose is
         achieved by bolstering the existing
         private credit structure through the
         guarantee of quality loans.
USDA     Value Added Producer Grants                     $1,318,000 Businesses assisted           151                     0                          No         No
         The purpose of this program is to assist
         eligible independent agricultural
         commodity producers, agriculture
         producer groups, farmer and rancher
         cooperatives, and majority-controlled
         producer-based businesses in
         developing strategies and business
         plans to further refine or enhance their
         products, thereby increasing their value
         to end users and increasing returns to
         producers.
USDA     Small Socially-Disadvantaged Producer           $2,940,000 None                          None                    N/A                        N/A        N/A
         Grants
         The primary objective of the program is
         to provide technical assistance to small,
         socially disadvantaged agricultural
         producers through eligible cooperatives
         and associations of cooperatives. Grants
         are awarded on a competitive basis.
USDA     1890 Land Grant Institutions Rural                      $0 None                          None                    N/A                        N/A        N/A
         Entrepreneurial Outreach Program/Rural
         Business Entrepreneur Development
         Initiativen
         The purposes of this program are to
         encourage 1890 Institutions to provide
         technical assistance for business
         creation in economically challenged rural
         communities, to conduct educational
         programs that develop and improve

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                                                                                                                                                    Met
                                                    Fiscal year 2011                             Fiscal year 2011        Fiscal year 2011           Individual Met All
                                                                   a                                                                       b
Agency   Program Name and Mission                       Obligations Performance Measures         Performance Goal        Actual Performance         Goals      Goals
         upon the professional skills of rural
         entrepreneurs, and to provide outreach
         and promote USDA Rural Development
         programs in small rural communities with
         the greatest economic need.
USDA     Agriculture Innovation Center                          $0 None                          N/A                     N/A                        N/A        N/A
         Award grants to centers around the
         country to provide technical and
         business development assistance to
         agricultural producers seeking to enter
         into ventures that add value to
         commodities or products they produce.
USDA     Small Business Innovation Research            $22,635,200 Percentage of Phase 2         50%                     Data collection ongoing Not           Not
         This program aims to stimulate                            businesses that have                                  because performance     available     available
         technological innovation in the private                   achieved commercial                                   data are collected over
         sector; strengthen the role of small                      success, as a result of                               a 2-year time period.
         businesses in meeting federal research                    increased sales
         and development needs; increase
         private-sector commercialization of
         innovations derived from USDA-
         supported research and development
         efforts; and foster and encourage
         participation by women-owned and
         socially disadvantaged small business
         firms in technological innovation.
USDA     Biomass Research and Development               $2,075,000 Number of technologies        None                    N/A                        N/A        N/A
         Initiative Competitive Grants Program                     successfully deployed
         This program awards grants to support
         the research and development and
         demonstration of biofuels and biobased
         products. It is a joint effort between
         USDA and the U.S. Department of
         Energy.




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                                                                                                                                                                        Met
                                                     Fiscal year 2011                                           Fiscal year 2011             Fiscal year 2011           Individual Met All
                                                                    a                                                                                          b
Agency   Program Name and Mission                        Obligations Performance Measures                       Performance Goal             Actual Performance         Goals      Goals
USDA     Woody Biomass Utilization Grant                 $3,000,000 Green tons of woody                         None                         N/A                        N/A        N/A
         Program                                                    biomass removed and
         This program provides financial grants to                  used
         businesses and communities that use
         woody biomass removed from National
         Forest System hazardous fuel reduction
         projects. Grants are awarded on a
         competitive basis.
                                                            Source: GAO analysis of information provided by Commerce, HUD, SBA, and USDA.

                                                            Notes:
                                                            a
                                                             Fiscal year 2011 obligations were provided by agency officials for each program. HUD’s figures
                                                            represent fiscal year 2011 actual budget authority rather than obligations. SBA figures represent
                                                            fiscal year 2011 fully allocated costs rather than obligations.
                                                            b
                                                             While some programs listed in the table did not set fiscal year 2011 performance goals, most of the
                                                            programs that had goals reported actual performance that could be compared with these goals.
                                                            c
                                                             EDA does not collect performance information (i.e., jobs created and private investment) by
                                                            program, rather this information is aggregated for all EDA programs.
                                                            d
                                                             Commerce’s Native American Business Enterprise Centers program incurred obligations in fiscal
                                                            year 2011, but Commerce officials could not provide funding data at the program level. Funding for
                                                            this program is included in the fiscal year 2011 obligations for Commerce’s Minority Business
                                                            Center program. Similarly, Commerce could not provide performance measure data at the program
                                                            level because it tracks its activity as part of the Minority Business Center program.
                                                            e
                                                             This figure is an estimate of actual budget authority used for activities that GAO categorizes as
                                                            economic development, rather than total program expenditures, and does not include other costs for
                                                            activities such as housing or public services.
                                                            f
                                                            This figure is an estimate of actual budget authority used for activities that GAO categorizes as
                                                            economic development, rather than total program expenditures, and does not include other costs for
                                                            activities such as housing or public services.
                                                            g
                                                             This figure is an estimate of actual budget authority used for activities that GAO categorizes as
                                                            economic development, rather than total program expenditures, and does not include other costs for
                                                            activities such as housing or public services.
                                                            h
                                                             This figure is an estimate of actual budget authority used for activities that GAO categorizes as
                                                            economic development, rather than total program expenditures, and does not include other costs for
                                                            activities such as housing or public services.
                                                            i
                                                            According to HUD officials, the performance measures for the CDBG Disaster Recovery Grant
                                                            program can vary and they did not provide us any set fiscal year 2011 goals.
                                                            j
                                                            HUD officials stated that the Rural Innovation Fund program is new and they are in the process of
                                                            establishing goals.




                                                            Page 71                                                             GAO-12-819 Entrepreneurial Assistance
Appendix III: Performance Goals and Accomplishments for 52
Programs that Can Support Entrepreneurs, Fiscal Year 2011


k
 HUD officials noted that $31,355,236 in 5-year grants was awarded in September, 2011 through
this program, but they will not be obligated until after FY 2011. These funds include $25,000,000
that was appropriated in FY 2010 for the program and additional funds recaptured through HUD’s
Rural Housing and Economic Development program.
l
The performance goal and actual figures for this performance measure are for the two-year period
consisting of FY 2010 and FY 2011. SBA officials indicated that a goal was not set for FY 2011
alone.
m
 According to SBA officials, the New Markets Venture Capital program is a one-time pilot program
that received one-time funding in fiscal year 2001.
n
  USDA’s 1890 program does not have a congressional appropriation but is instead funded through
USDA’s Salaries and Expenses account. Funding is not reported separately for this program and is
listed as $0 here, but this is an active and funded program.




Page 72                                                 GAO-12-819 Entrepreneurial Assistance
Appendix IV: Additional Federal Programs
              Appendix IV: Additional Federal Programs that
              Can Fund Economic Activities



that Can Fund Economic Activities

              We reviewed the 2011 Catalog of Federal Domestic Assistance (CFDA)
              and identified 95 additional federal programs that can support at least one
              of the nine economic activities identified in appendix II (see table 3).
              These programs, while not comprehensive, are in addition to the 80
              economic development programs administered by Commerce, HUD,
              SBA, and USDA that we included in previous reports. We identified these
              94 programs based on our comparison of CFDA program descriptions
              with the nine economic activities as illustrated in appendix II. However,
              others conducting similar analyses may come to different conclusions on
              which federal programs support economic development. Additionally, 32
              of the 64 federal agencies and departments listed in the CFDA did not
              provide descriptions for their programs within the 2011 CFDA, which
              prevented us from assessing whether those programs are related to
              economic development. Many of the agencies that administer these
              additional programs have missions that do not directly focus on economic
              development. For example, a number of the programs listed for the
              Department of Health and Human Services focus on health-related
              research, but also participate in at least one of the economic development
              activities we have identified.




              Page 73                                         GAO-12-819 Entrepreneurial Assistance
                                                             Appendix IV: Additional Federal Programs
                                                             that Can Fund Economic Activities




Table 3: Additional Federal Programs That Can Fund Economic Activities, as Listed in the 2011 Catalog of Federal Domestic Assistance

                                                                                                Economic activities
                                                                                                                                             Telecommuni-
                                            Strategic              Business   Industrial                               Marketing                cations &
                                   Program planning & Commercial incubators & parks &      Physical    Entrepreneurial  & new                  broadband
Agency          Name                number research    buildings accelerators buildings infrastructure     efforts      markets              infrastructure Tourism
Appalachian     Appalachian         23.001
Regional        Regional                        X                           X             X             X             X               X               X       X
Commission      Development
Appalachian     Appalachian Area    23.002
Regional        Development                     X                           X             X                           X               X               X       X
Commission
Appalachian     Appalachian         23.003
Regional        Development                                                                             X
Commission      Highway System
Appalachian     Appalachian         23.009
Regional        Local
Commission      Development                     X
                District
                Assistance
Appalachian     Appalachian         23.011
Regional        Research,
Commission      Technical
                                                X
                Assistance, and
                Demonstration
                Projects
Denali          Denali              90.100
Commission      Commission                                                                              X
                Program
Department of   Community           12.600
Defense         Economic                        X
                Adjustment
Department of   Nuclear Energy      81.121
Energy          Research,
                                                                                                                      X
                Development and
                Demonstration
Department of   Granting Of         81.003
                                                                                                                      X               X
Energy          Patent Licenses
Department of   Inventions and      81.036
                                                                                                                      X
Energy          Innovations

                                                             Page 74                                          GAO-12-819 Entrepreneurial Assistance
                                                            Appendix IV: Additional Federal Programs
                                                            that Can Fund Economic Activities



                                                                                               Economic activities
                                                                                                                                            Telecommuni-
                                             Strategic              Business   Industrial                               Marketing              cations &
                                    Program planning & Commercial incubators & parks &      Physical    Entrepreneurial  & new                broadband
Agency          Name                 number research    buildings accelerators buildings infrastructure     efforts      markets            infrastructure Tourism
Department of   State Energy         81.041
                                                                                                       X
Energy          Program
Department of   Federal Loan         81.126
Energy          Guarantees for
                Innovative                                                 X                           X             X               X
                Energy
                Technologies
Department of   Indian Health        93.445
Health and      Service
Human           Sanitation
                                                                                                       X
Services        Facilities
                Construction
                Program
Department of   Cancer Control       93.399
Health and
                                                                                                                     X
Human
Services
Department of   Consumer             93.545
Health and      Operated and
                                                                                                                     X
Human           Oriented Plan
Services        [CO-OP] Program
Department of   Community            93.570
Health and      Services Block
Human           Grant                            X           X             X                           X             X               X
Services        Discretionary
                Awards
Department of   Refugee and          93.576
Health and      Entrant
Human           Assistance                                                                                           X               X
Services        Discretionary
                Grants
Department of   Job Opportunities    93.593
Health and      for Low-Income
                                                 X                                                                   X
Human           Individuals
Services




                                                            Page 75                                          GAO-12-819 Entrepreneurial Assistance
                                                           Appendix IV: Additional Federal Programs
                                                           that Can Fund Economic Activities



                                                                                              Economic activities
                                                                                                                                           Telecommuni-
                                            Strategic              Business   Industrial                               Marketing              cations &
                                   Program planning & Commercial incubators & parks &      Physical    Entrepreneurial  & new                broadband
Agency          Name                number research    buildings accelerators buildings infrastructure     efforts      markets            infrastructure Tourism
Department of   Assets for          93.602
Health and      Independence
                                                                                                                    X
Human           Demonstration
Services        Program
Department of   Native American     93.612
Health and      Programs                                    a
                                                X          X              X            Xa             Xa            X               X               X       X
Human
Services
Department of   Cardiovascular      93.837
Health and      Diseases
                                                                                                                    X
Human           Research
Services
Department of   Lung Diseases       93.838
Health and      Research
                                                                                                                    X
Human
Services
Department of   Blood Diseases      93.839
Health and      and Resources
                                                                                                                    X
Human           Research
Services
Department of   Arthritis,          93.846
Health and      Musculoskeletal
Human           and Skin                                                                                            X
Services        Diseases
                Research
Department of   Diabetes,           93.847
Health and      Digestive, and
Human           Kidney Diseases                                                                                     X
Services        Extramural
                Research
Department of   Extramural          93.853
Health and      Research
Human           Programs in the
                                                                                                                    X
Services        Neurosciences
                and Neurological
                Disorders



                                                           Page 76                                          GAO-12-819 Entrepreneurial Assistance
                                                            Appendix IV: Additional Federal Programs
                                                            that Can Fund Economic Activities



                                                                                               Economic activities
                                                                                                                                            Telecommuni-
                                             Strategic              Business   Industrial                               Marketing              cations &
                                    Program planning & Commercial incubators & parks &      Physical    Entrepreneurial  & new                broadband
Agency          Name                 number research    buildings accelerators buildings infrastructure     efforts      markets            infrastructure Tourism
Department of   Allergy,             93.855
Health and      Immunology and
                                                                                                                     X
Human           Transplantation
Services        Research
Department of   Child Health and     93.865
Health and      Human
Human           Development                                                                                          X
Services        Extramural
                Research
Department of   Aging Research       93.866
Health and
                                                                                                                     X
Human
Services
Department of   Vision Research      93.867
Health and
                                                                                                                     X
Human
Services
Department of   Medical Library      93.879
Health and      Assistance
                                                                                                                     X
Human
Services
Department of   Operation Safe       97.058
Homeland        Commerce
Security        Cooperative                                                                                          X
                Agreement
                Program
Department of   Workforce            17.258
Labor           Investment Act—                                                                                      X
                Adult Program
Department of   Workforce            17.260
Labor           Investment Act—
                                                                                                                     X
                Dislocated
                Workers
Department of   National Heritage    15.939
the Interior    Area Federal
                                                 X           X                           X             X             X               X                       X
                Financial
                Assistance

                                                            Page 77                                          GAO-12-819 Entrepreneurial Assistance
                                                             Appendix IV: Additional Federal Programs
                                                             that Can Fund Economic Activities



                                                                                                Economic activities
                                                                                                                                             Telecommuni-
                                              Strategic              Business   Industrial                               Marketing              cations &
                                     Program planning & Commercial incubators & parks &      Physical    Entrepreneurial  & new                broadband
Agency          Name                  number research    buildings accelerators buildings infrastructure     efforts      markets            infrastructure Tourism
Department of   Tribal Self-          15.022
                                                                                                        X
the Interior    Governance
Department of   Road                  15.033
the Interior    Maintenance                                                                             X
                Indian Roads
Department of   Minerals and          15.038
the Interior    Mining on Indian                                                                                      X
                Lands
Department of   Indian Loans          15.124
the Interior    Economic                                                                                              X
                Development
Department of   National Fire Plan    15.228
the Interior    - Wildland Urban
                Interface                                                                                             X
                Community Fire
                Assistance
Department of   Water                 15.504
the Interior    Reclamation and                                                                         X
                Reuse Program
Department of   WaterSMART            15.507
the Interior    (Sustain and
                Manage                                                                                  X
                America’s
                Resources for
                Tomorrow)
Department of   Colorado River        15.509
the Interior    Basin Salinity                                                                          X
                Control Program
Department of   Colorado Ute          15.510
the Interior    Indian Water
                                                                                                        X
                Rights Settlement
                Act
Department of   Fort Peck             15.516
the Interior    Reservation
                                                                                                        X
                Rural Water
                System

                                                             Page 78                                          GAO-12-819 Entrepreneurial Assistance
                                                            Appendix IV: Additional Federal Programs
                                                            that Can Fund Economic Activities



                                                                                               Economic activities
                                                                                                                                            Telecommuni-
                                             Strategic              Business   Industrial                               Marketing              cations &
                                    Program planning & Commercial incubators & parks &      Physical    Entrepreneurial  & new                broadband
Agency          Name                 number research    buildings accelerators buildings infrastructure     efforts      markets            infrastructure Tourism
Department of   Garrison             15.518
                                                                                                       X
the Interior    Diversion Unit
Department of   Indian Tribal        15.519
the Interior    Water Resources
                Development,                                                                           X
                Management,
                and Protection
Department of   Lewis and Clark      15.520
the Interior    Rural Water                                                                            X
                System
Department of   Mni Wiconi Rural     15.522
the Interior    Water Supply                                                                           X
                Project
Department of   Perkins County       15.523
the Interior    Rural Water                                                                            X
                System
Department of   Rocky                15.525
the Interior    Boy’s/North
                Central Montana                                                                        X
                Regional Water
                System
Department of   San Gabriel          15.526
the Interior    Basin Restoration                                                                      X
                Project
Department of   Yakima River         15.531
the Interior    Basin Water
                                                                                                       X
                Enhancement
                Project
Department of   Colorado River       15.541
the Interior    Basin Projects                                                                         X
                Act of 1968
Department of   Lower Colorado       15.538
the Interior    River Multi-
                species                                                                                X
                Conservation
                Project


                                                            Page 79                                          GAO-12-819 Entrepreneurial Assistance
                                                              Appendix IV: Additional Federal Programs
                                                              that Can Fund Economic Activities



                                                                                                 Economic activities
                                                                                                                                              Telecommuni-
                                               Strategic              Business   Industrial                               Marketing              cations &
                                      Program planning & Commercial incubators & parks &      Physical    Entrepreneurial  & new                broadband
Agency           Name                  number research    buildings accelerators buildings infrastructure     efforts      markets            infrastructure Tourism
Department of    Navajo-Gallup         15.552
the Interior     Water Supply                                                                            X
                 Project
Department of    Economic, Social,     15.875
the Interior     and Political
                                                               X             X             X             X             X                               X
                 Development of
                 the Territories
Department of    Historic              15.904
the Interior     Preservation
                                                   X           X             X                           X             X                                       X
                 Fund Grants-In-
                 Aid
Department of    Preservation of       15.932
the Interior     Historic
                 Structures on the
                 Campuses of                       X                         X                           X             X                                       X
                 Historically Black
                 Colleges and
                 Universities
Department of    Preservation of       15.933
the Interior     Japanese
                 American                          X           X                                                                                               X
                 Confinement
                 Sites
Department of    Native Initiatives    21.012
                                                                                                                       X
the Treasury
Department of    Community             21.020
the Treasury     Development
                 Financial                                                                                             X
                 Institutions
                 Program
Department of    Bank Enterprise       21.021
                                                                                                                       X
the Treasury     Award Program
Department of    Airport               20.106
Transportation   Improvement                                                                             X
                 Program



                                                              Page 80                                          GAO-12-819 Entrepreneurial Assistance
                                                             Appendix IV: Additional Federal Programs
                                                             that Can Fund Economic Activities



                                                                                                Economic activities
                                                                                                                                             Telecommuni-
                                              Strategic              Business   Industrial                               Marketing              cations &
                                     Program planning & Commercial incubators & parks &      Physical    Entrepreneurial  & new                broadband
Agency           Name                 number research    buildings accelerators buildings infrastructure     efforts      markets            infrastructure Tourism
Department of    Highway              20.205
Transportation   Planning and                                                                           X
                 Construction
Department of    Transportation       20.223
Transportation   Infrastructure
                 Finance and                                                                            X
                 Innovation Act
                 Program
Department of    Railroad             20.314
                                                                                                        X
Transportation   Development
Department of    National Railroad    20.315
Transportation   Passenger
                                                                                                        X
                 Corporation
                 Grants
Department of    Railroad             20.316
Transportation   Rehabilitation
                 and Improvement                              X                           X             X             X
                 Financing
                 Program
Department of    Capital              20.317
Transportation   Assistance to
                 States-Intercity                                                                       X
                 Passenger Rail
                 Service
Department of    Maglev Project       20.318
Transportation   Selection
                                                                                                        X
                 Program-Safetea-
                 Lu
Department of    High-Speed Rail      20.319
Transportation   Corridors and
                 Intercity
                 Passenger Rail                                                                         X
                 Service Capital
                 Assistance
                 Grants




                                                             Page 81                                          GAO-12-819 Entrepreneurial Assistance
                                                             Appendix IV: Additional Federal Programs
                                                             that Can Fund Economic Activities



                                                                                                Economic activities
                                                                                                                                             Telecommuni-
                                              Strategic              Business   Industrial                               Marketing              cations &
                                     Program planning & Commercial incubators & parks &      Physical    Entrepreneurial  & new                broadband
Agency           Name                 number research    buildings accelerators buildings infrastructure     efforts      markets            infrastructure Tourism
Department of    Rail Line            20.320
Transportation   Relocation and                                                                         X
                 Improvement
Department of    Federal Transit      20.500
Transportation   Capital
                                                                                                        X
                 Investment
                 Grants
Department of    Paul S. Sarbanes     20.520
Transportation   Transit in the                                                                         X
                 Parks
Department of    Federal Ship         20.802
Transportation   Financing                                                                              X             X
                 Guarantees
Department of    Assistance to        20.814
                                                                                                        X             X
Transportation   Small Shipyards
Department of    America’s Marine     20.816
                                                                                                        X
Transportation   Highway Grants
Department of    Bonding              20.904
Transportation   Assistance                                                                                           X
                 Program
Department of    Disadvantaged        20.905
Transportation   Business
                 Enterprises Short                                                                                    X
                 Term Lending
                 Program
Department of    Assistance to        20.910
Transportation   Small and
                                                                                                                      X
                 Disadvantaged
                 Businesses
Department of    Payments for         20.930
Transportation   Small Community
                                                                                                                                      X                       X
                 Air Service
                 Development
Department of    National             20.933
Transportation   Infrastructure                                                                         X
                 Investments

                                                             Page 82                                          GAO-12-819 Entrepreneurial Assistance
                                                             Appendix IV: Additional Federal Programs
                                                             that Can Fund Economic Activities



                                                                                                Economic activities
                                                                                                                                             Telecommuni-
                                              Strategic              Business   Industrial                               Marketing              cations &
                                     Program planning & Commercial incubators & parks &      Physical    Entrepreneurial  & new                broadband
Agency           Name                 number research    buildings accelerators buildings infrastructure     efforts      markets            infrastructure Tourism
Environmental    Healthy              66.110
Protection       Communities                                                                            X                                                     X
Agency           Grant Program
Environmental    Environmental        66.203
Protection       Finance Center                                                                         X
Agency           Grants
Environmental    Construction         66.418
Protection       Grants for
                                                                                                        X
Agency           Wastewater
                 Treatment Works
Environmental    Capitalization       66.458
Protection       Grants for Clean
                                                                                                        X
Agency           Water State
                 Revolving Funds
Environmental    Capitalization       66.468
Protection       Grants for
Agency           Drinking Water                                                                         X
                 State Revolving
                 Funds
Environmental    Environmental        66.604
Protection       Justice Small                    X
Agency           Grant Program
Environmental    Pollution            66.708
Protection       Prevention                                                                                           X
Agency           Grants Program
National         Challenge Grants     45.130
Endowment for                                                                                           X
the Humanities
National         Promotion of the     45.164
Endowment for    Humanities                                                                                                                                   X
the Humanities   Public Programs
National         Digital              45.169
Endowment for    Humanities Start-                                                                                    X
the Humanities   up Grants




                                                             Page 83                                          GAO-12-819 Entrepreneurial Assistance
                                                   Appendix IV: Additional Federal Programs
                                                   that Can Fund Economic Activities



                                                                                                      Economic activities
                                                                                                                                                             Telecommuni-
                                    Strategic              Business   Industrial                               Marketing                                        cations &
                           Program planning & Commercial incubators & parks &      Physical    Entrepreneurial  & new                                          broadband
Agency       Name           number research    buildings accelerators buildings infrastructure     efforts      markets                                      infrastructure Tourism
National     Engineering    47.041
Science      Grants                                                                                                                     X
Foundation
                                                   Source: GAO analysis of the Catalog of Federal Domestic Assistance (2011 edition).
                                                   a
                                                    The authority of Health and Human Service’s Native American program is limited regarding
                                                   construction. Its authority is limited to minor construction activities and does not allow for the
                                                   building of structures from the ground up or other major construction activities.




                                                   Page 84                                                                    GAO-12-819 Entrepreneurial Assistance
Appendix V: Evaluations of Programs that
                                         Appendix V: Evaluations of Programs
                                         that Can Support Entrepreneurs, 2000-
                                         2012


Can Support Entrepreneurs, 2000-2012


Author(s), title of   Agency           Program(s)
evaluation            reviewed         reviewed              Purpose of the study                  Data and methods used
Grant Thornton,       Department of    Grants for Public     To assess the economic impacts        Data for this study were taken
Construction Grants   Commerce         Works and             and federal costs of EDA’s            from EDA’s Operations and
Program Impact        (Commerce) –     Economic              construction program, and to          Planning and Control System
Assessment Report,    Economic         Development           improve upon EDA’s prior study in     for construction projects’ status
September 2008        Development      Facilities            1997 in terms of using a more         and funding between fiscal
                      Administration   Economic              robust regression model.              years 1990-2005 and Bureau
                      (EDA)            Adjustment                                                  of Labor Statistics county
                                       Assistance                                                  employment data. Study used
                                                                                                   ordinary and two-stage least
                                                                                                   squares regression.
Beth Walter Honadle Commerce EDA       Economic              To evaluate the local Technical       The evaluation is based on
and Michael C.                         Development–          Assistance program for fiscal years   data collected from
Carroll, Center for                    Technical             1997 and 1998 to determine the        •   project files and data
Policy Analysis &                      Assistance            extent to which the program has           obtained from EDA
Public Service,                                              achieved its mission of helping           headquarters and six
Bowling Green State                                          communities solve specific                regional offices,
University, Local                                            problems, respond to economic
                                                                                                   •   surveys of 121 grant
Technical                                                    development opportunities, and
                                                                                                       recipients, and
Assistance Program                                           build and expand organizational
Evaluation, 2003                                             capacity in distressed areas.         •   two on-site case studies in
                                                                                                       each EDA region.

Mt. Auburn           Commerce EDA      Economic             To evaluate the University Center      Study collected data from
Associates, Inc., An                   Development–         Program in five areas:                 numerous sources:
Evaluation of EDA’s                    Technical            •    effectiveness in meeting          •   interviews with EDA
University Center                      Assistance                economic development needs,           national and regional staff,
Program, December
                                                            •    effectiveness in targeting        •   compilation of a database
2001
                                                                 distressed areas,                     on University Center
                                                            •    distribution of centers being         characteristics and
                                                                 optimal under EDA budget              activities from documents
                                                                 constraints,                          such as grant
                                                            •    duplication or overlap with other     applications,
                                                                 federal programs, and             •   interviews with Center
                                                            •    leveraging resources.                 directors,
                                                                                                   •   Center client survey, and
                                                                                                   •   site visits.
Wayne State           Commerce EDA     Economic             To evaluate the overall impact of      Data were gathered in several
University,                            Development–         EDA’s Economic Development             progressive stages:
Evaluation of EDA’s                    Support for Planning District (EDD) Planning program,       •   site visits,
Planning Program:                      Organizations        which funds the EDDs; highlight
                                                                                                   •   general survey,
Economic                                                    commonalities and differences
Development                                                 among the various EDDs; as well as     •   additional site visits, and
Districts, May 2002                                         to assess if the program promotes      •   a second survey to
                                                            regional cooperation towards               respondents of first survey.
                                                            making an impact on the economic Analysis of these data was
                                                            development goals of the               done using statistical
                                                            community.                             techniques such as principle-
                                                                                                   component analysis.




                                         Page 85                                             GAO-12-819 Entrepreneurial Assistance
                                         Appendix V: Evaluations of Programs
                                         that Can Support Entrepreneurs, 2000-
                                         2012




Author(s), title of    Agency          Program(s)
evaluation             reviewed        reviewed              Purpose of the study                   Data and methods used
The Urban Institute,   Department of   Community             •   To find indicators for the effect  •    Classified cities into two
The Impact of CDBG     Housing and     Development Block         of CDBG spending and track              categories: those that had
Spending on Urban      Urban           Grant                     changes in these indicators.            available data that were
Neighborhoods,         Development     (CDBG)/Entitlement    •   To report on neighborhoods              more detailed and those
October 2002           (HUD)           Grants                    that had received a large               that had less-detailed
                                                                 amount of CDBG funding.                 available data
                                                                                                    •    Identify CDBG investment
                                                                                                         levels that must be
                                                                                                         complemented with
                                                                                                         additional investment to
                                                                                                         produce significant
                                                                                                         improvements in
                                                                                                         neighborhood outcomes.
The Urban Institute,   HUD             CDBG/Entitlement      •    To determine the results of local Study was based on
Public-Sector Loans                    Grants                     third-party lending programs in •      telephone interviews with
to Private-Sector                      CDBG/States                terms of business development          Economic Development
Businesses: An                                                    and job creation benefits.             directors in 460 of the 972
Assessment of                          CDBG/Section 108
                                                             •    To determine whether some              entitlement communities
HUD-Supported                          Loan Guarantees
                                                                  kinds of borrowers in certain          that used CDBG funds, and
Local Economic                         CDBG/Brownfields           types of neighborhoods create          interviews with 234 of the
Development                            Economic                   jobs or leverage private funds at      750 business borrowers.
Lending Activities,                    Development                lower cost than others.           •    sample of business loans
December 2002                          Initiative (BEDI)                                                 to those areas, matched
                                                                                                         with Dun and Bradstreet
                                                                                                         information.
                                                                                                    Study examines various
                                                                                                    indicators of program
                                                                                                    performance, including
                                                                                                    •    business survival rates,
                                                                                                    •    rates of total and low-
                                                                                                         income job creation,
                                                                                                    •    retention relative to jobs
                                                                                                         planned at the time of
                                                                                                         loan origination,
                                                                                                    •    public costs of each job
                                                                                                         created,
                                                                                                    •    amount of private funding
                                                                                                         induced (or leveraged) by
                                                                                                         program loans, and
                                                                                                    •    rates at which public loan
                                                                                                         dollars substitute for
                                                                                                         private funds that would
                                                                                                         have otherwise been
                                                                                                         invested.
Econometrica, Inc,     HUD             CDBG/Indian           To measure the outcomes of Indian Study had three main data
Evaluation of the                                            CDBG expenditures. The outcomes sources: (1) grant file reviews
Indian Community                                             included amount of leveraged           of program data, (2) telephone
Block Grant                                                  funding obtained by grantees,          survey of grant participants,
Program, May 2006                                            enhancements of partnering             and (3) case study
                                                             relationships, and level of economic observations.
                                                             activity in the communities.



                                         Page 86                                              GAO-12-819 Entrepreneurial Assistance
                                          Appendix V: Evaluations of Programs
                                          that Can Support Entrepreneurs, 2000-
                                          2012




Author(s), title of    Agency           Program(s)
evaluation             reviewed         reviewed              Purpose of the study                    Data and methods used
Social Compact and HUD                  Section 4 Capacity    To evaluate the effect of the Section   From 2001 through 2009, data
Weinheimer &                            Building for          4 program on improving                  were collected from (1)
Associates,                             Affordable Housing    organization capacity. The section 4    interviews of key staff at
Assessing Section 4:                    and Community         program was set up to support           intermediaries, (2) online
Helping CDC’s to                        Development           training for Community Development      survey of 360 CDCs that
Grow and Serve,                                               Corporations (CDC) and to help          received Section 4 grants, and
February 2011                                                 CDCs grow and serve.                    (3) interviews with leaders of
                                                                                                      34 Section 4-asssisted CDCs.
Concentrance           Small Business   Small Business        To assess the impact of SBA’s           Study included survey of
Consulting Group,      Administration   Development           entrepreneurial development             clients served by SBA’s
Impact Study of        (SBA)            Centers               programs on small businesses,           entrepreneurial businesses.
Entrepreneurial                         Women’s Business      including businesses’ perceptions of    Sample size approximately
Development                             Centers               the programs and their economic         6,500 observations across all
Resources, 2002 –                                             growth as a result of the services      years–2007, 2008 and 2010
2010a                                   SCORE                 provided.                               with a smaller sample in 2007.
Gwen Richtermeyer SBA                   Women’s Business      To analyze the economic impact of       Study includes a set of
and Karen Fife-                         Centers               the SBA’s Women’s Business              descriptive statistics on the
Samyn, Quality                                                Center program. Specifically the        rate of growth in the number of
Research                                                      study addressed the following           Women’s Business Center
Associates,                                                   between 2001 and 2003:                  clients and also the rate of
Analyzing the Impact                                          •    impact on growth of firms          jobs and profits at those
of the Women’s                                                                                        centers.
                                                              •    factors that account for success
Business Center                                                                                       Study used a regression to
Program, July 2004.                                           •    specific program model that
                                                                   predicts success                   test the association between
                                                                                                      clients and other outcomes.
                                                              •    predictors of positive economic
                                                                   outcomes, and
                                                              •    effect of client demographics on
                                                                   outcomes.
Mary Godwyn, Nan     SBA                Women’s Business      To examine the economic impact          Survey and focus group of 100
Langowitz, and                          Centers               and effectiveness of Women’s            Women’s Business Centers.
Norean Sharpe,                                                Business Centers.
Center for Women’s
Leadership at
Babson College, The
Impact and Influence
of Women’s
Business Centers in
the United States,
April 2005
The Urban Institute,   SBA              7(a) Loan Program     In order to test whether SBA loan       SBA administrative data were
A Performance                           504 Loan Program      guarantees are associated with          obtained on firms participating
Analysis of SBA’s                                             positive firm outcomes, this study      in 7(a), 504 or SBIC programs.
Loan and                                Small Business        addressed the following questions:      For these firms, data were
Investment                              Investment                                                    obtained from Dun and
                                        Company (SBIC)        •    What happens to sales,
Programs, January                                                  employment and survival before     Bradstreet on firm outcomes.
2008                                    Program
                                                                   and after firms receive the        The study used a multivariate
                                                                   guarantee?                         statistical technique to
                                                              •    What explains the changes          estimate whether (a) the
                                                                   observed?                          change in outcome was
                                                                                                      significant, and (b) whether



                                          Page 87                                            GAO-12-819 Entrepreneurial Assistance
                                   Appendix V: Evaluations of Programs
                                   that Can Support Entrepreneurs, 2000-
                                   2012




Author(s), title of   Agency     Program(s)
evaluation            reviewed   reviewed              Purpose of the study                   Data and methods used
                                                                                              other factors (such as
                                                                                              business type) affect the
                                                                                              change in outcome.
The Urban Institute, SBA         7(a) Loan Program     To produce a survey that is intended   Beginning from a sample of
An Assessment of                 504 Loan Program      provide customer satisfaction          assisted firms from Dunn and
Small Business                                         indicators for the 7(a), 504, SBIC,    Bradstreet, a survey was sent
Administration Loan              Microloan Program     and MicroLoan programs.                to approximately 3,000 firms.
and Investment                   SBIC                                                         The surveyed firms had
Performance:                                                                                  received the loans 6 or 7 years
Survey of Assisted                                                                            prior to the questionnaire.
Businesses, January
2008
Henry Beale and       SBA        HUBZone               To examine the effectiveness of the    Data are from three
Nicola Deas,                     (Historically         HUBZone program.                       databases: applications for
Microeconomic                    Underutilized                                                HUBZone certification, Central
Applications, Inc.,              Business Zone)                                               Contractor Registration on
The HUBZone                                                                                   small businesses, and the
Program Report,                                                                               Federal Procurement Data
May 2008b                                                                                     System for information on
                                                                                              HUBZone businesses that
                                                                                              have won HUBZone contracts.
                                                                                              The report primarily used an
                                                                                              input-output approach to
                                                                                              estimate the impact on the
                                                                                              HUBZone areas. In this
                                                                                              approach, direct and indirect
                                                                                              impacts are measured using
                                                                                              the above three databases
                                                                                              and multipliers from Bureau of
                                                                                              Economic Analysis.
Charles W.          SBA          Small Business      The study attempts to determine          Study is based on National
Wessner, Editor,                 Innovation Research the effectiveness of the SBIR            Research Council surveys and
Committee on                     Program (SBIR)      program in                               reviews of agency materials.
Capitalizing on                                      •    stimulating technological           Study includes surveys and
Science,                                                  innovation;                         also case studies.
Technology, and
                                                     •    using small businesses to meet
Innovation, An
                                                          federal needs;
Assessment of the
Small Business                                       •    increasing private sector
Innovation Research                                       commercialization; and
Program at the                                       •    encouraging participation of
National Science                                          minority and other
Foundation, 2008.                                         disadvantaged groups.




                                   Page 88                                           GAO-12-819 Entrepreneurial Assistance
                                        Appendix V: Evaluations of Programs
                                        that Can Support Entrepreneurs, 2000-
                                        2012




Author(s), title of   Agency          Program(s)
evaluation            reviewed        reviewed                     Purpose of the study                                Data and methods used
M.A. Boland, J.C.     Department of   Value Added                  To identify the determinants for                    Survey of 739 VAPG
Crespi, and D.        Agriculture     Producer Grants              success among USDA’s VAPG.                          recipients, out of which 621
Oswald, How           (USDA)          (VAPG)                                                                           responded. A statistical
Successful Was the                                                                                                     analysis was conducted using
2002 Farm Bill’s                                                                                                       binary logistical regression
Value-Added                                                                                                            (logit) and cumulative logit
Producer Grant                                                                                                         models.
Program?,
December 2007
                                        Source: GAO analysis of information provided by Commerce, HUD, SBA and USDA.
                                        a
                                         While SBA conducts annual impact surveys of the SBDC, WBC, and SCORE programs, for
                                        purposes of this report we focused on the most recent impact study conducted of these programs.
                                        b
                                          In a previous GAO report, Small Business Administration: Additional Actions Are Needed to Certify
                                        and Monitor HUBZone Businesses and Assess Program Results, GAO-08-643 (Washington, D.C.:
                                        Jun. 17, 2008), we recommended that SBA further develop measures and implement plans to assess
                                        the effectiveness of the HUBZone program. SBA took steps to conduct such an assessment.
                                        However, SBA has since decided to rely on the 2008 study conducted by SBA’s Office of Advocacy
                                        listed in this appendix.




                                        Page 89                                                              GAO-12-819 Entrepreneurial Assistance
Appendix VI: Comments from the
             Appendix VI: Comments from the Department
             of Agriculture



Department of Agriculture




             Page 90                                     GAO-12-819 Entrepreneurial Assistance
Appendix VI: Comments from the Department
of Agriculture




Page 91                                     GAO-12-819 Entrepreneurial Assistance
Appendix VI: Comments from the Department
of Agriculture




Page 92                                     GAO-12-819 Entrepreneurial Assistance
Appendix VII: Comments from the
             Appendix VII: Comments from the Department
             of Commerce



Department of Commerce




             Page 93                                      GAO-12-819 Entrepreneurial Assistance
Appendix VII: Comments from the Department
of Commerce




Page 94                                      GAO-12-819 Entrepreneurial Assistance
Appendix VII: Comments from the Department
of Commerce




Page 95                                      GAO-12-819 Entrepreneurial Assistance
Appendix VII: Comments from the Department
of Commerce




Page 96                                      GAO-12-819 Entrepreneurial Assistance
Appendix VIII: Comments from the
             Appendix VIII: Comments from the Department
             of Housing and Urban Development



Department of Housing and Urban
Development




             Page 97                                       GAO-12-819 Entrepreneurial Assistance
Appendix VIII: Comments from the Department
of Housing and Urban Development




Page 98                                       GAO-12-819 Entrepreneurial Assistance
Appendix XI: GAO Contact and Staff
                  Appendix XI: GAO Contact and Staff
                  Acknowledgments



Acknowledgments

                  William B. Shear, (202) 512-8678 or shearw@gao.gov.
GAO Contact
                  In addition to the contact named above, Marshall Hamlett and Triana
Staff             McNeil (Assistant Directors), Matthew Alemu, Ben Bolitzer, Julianne
Acknowledgments   Dieterich, Cindy Gilbert, Geoffrey King, Terence Lam, Alma Laris, Marc
                  Molino, Alise Nacson, Jennifer Schwartz, and Karen Villafana made key
                  contributions to this report.




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                  Page 99                                  GAO-12-819 Entrepreneurial Assistance
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