by Jason Cruz
Northwest Asia Weekly
Port Everett (Photo by Hamb)
On April 18-19, U.S. Small Business Administration (SBA) Deputy Director of the Office of International Trade Gabriel Esparza and SBA Regional Director Michael Fong visited business leaders in the Northwest to discuss export opportunities for small businesses.
Engagement with state leaders is part of an effort to convey the message that the SBA is here to help small businesses thrive.
Gabriel Esparza
“The SBA is your partner, it’s your SBA,” Esparza said in a recent interview with Northwest Asia Weekly. Part of that includes communicating with government stakeholders about small business issues, such as supply chain issues and the need for more labor.
Esparza and Fong met with business leaders in Snohomish County on April 18, followed by an afternoon meeting with Seattle Mayor Bruce Harrell and his office. In addition, they met with former governor, secretary of commerce and ambassador Gary Locke. To facilitate more trade, the meeting highlighted the opportunities the SBA can offer small businesses. They also heard from small business owners and talked about their export experience.
The visit to Snohomish County facilitated the continued use of Port Everett. In 2021, ground is broken on a major expansion of Norton Wharf, which will modernize the ability to bring cargo to market. Additionally, Snohomish County is home to a large number of aerospace and advanced manufacturing companies, representing a large number of export-related jobs. Additionally, Paine Airport is an important economic driver as it generates a $60 billion economic impact and more than 158,000 jobs, according to the Washington Aviation Economic Impact Study.
In addition, the trend in economic dynamism is positive, with exports falling for 5 years and exports increasing by more than $7.3 billion in 2021.
Mike Fang
Esparza and Fong acknowledge the challenges small business owners may face during this particular time.
“We recognize the challenges in supply chain and transportation,” Fong said. “Over time, the backlog will ease.” He added: “This is an opportunity for us (SBA). The tools are there, it’s just a matter of getting people to use them.”
After visiting Seattle, Esparza traveled to Los Angeles to present the award to Dr. Dennis Lin, CEO and Chairman of GBC Bank. Lam was selected as one of the Export Lenders of the Year.
The award recognizes the bank’s efforts to increase U.S. companies’ access to capital by providing international trade finance to small businesses. The award highlights the achievements of lenders in providing small businesses with SBA international finance programs that help them develop new markets, finance export transactions and expand their ability to meet overseas needs.
“We’re trying to be a connecting organization between interested small businesses and lenders,” Esparza said of the agency’s work to get financing for small businesses. Los Angeles-based GBC Bank has been a major lender to many small Asian businesses in the region, he said. The SBA met with lenders during a visit to the Northwest Territories earlier this month. Esparza explained that the SBA is the “backstop” for financial partners because it guarantees many small business loans.
The SBA offers a variety of loans in its “loan toolbox,” including traditional loans and infusions of funds to microlenders. Each SBA loan program has its own rules, but some loans offer lower interest rates and fees, as well as shorter turnaround times on lines of credit.
Additionally, trade with China remains a concern due to tariffs and slowdowns due to COVID-19 restrictions. The SBA is there to help amplify the stories it hears from small business owners across the country as it communicates them to government policymakers.
While the term “small business” can be interpreted in many ways, Esparza stressed that 80 percent of the nation’s 32 million small businesses are sole proprietors. He noted that there are “accidental exporters,” small businesses that accidentally start selling goods or services outside the United States.
“In addition to the dynamics of unexpected exporters, we see the diaspora community as an area of particular concern,” Esparza said. Specifically, the Asian diaspora community is an area of interest that the SBA would like to be involved in.
The message to small businesses is that trade is picking up after pandemic concerns, and the SBA can help.
“People are definitely moving out of survival mode and looking at long-term opportunities for expansion and revenue growth,” Fong explained of the position of small businesses in the current economic environment.
Jason is available at info@nwasianweekly.com.
