The mission of the Virginia Department of Small Business and Supplier Diversity (SBSD) is to provide education and assistance; economic opportunity; and access to capital to generate employment and economic growth for small businesses.

The Virginia Department of Small Business and Supplier Diversity's aim is to be essential to Virginia's small business community by providing services that will help them achieve their aspirations.

Diversity: Foster an inclusive and equitable business climate in Virginia.

Collaboration: Partner with public and private organizations to expand the network of support for small businesses.

Customer Service: Provide the highest levels of customer service for both internal and external customers.

Professionalism: Provide services in a manner that embodies trust, responsiveness, friendliness, respectfulness, timeliness, reliability and competency.

Teamwork: Promote an environment that encourages collaboration across and within divisions to better serve customers and achieve agency objectives.

Commitment to Staff: Develop staff through continual professional growth opportunities and recognize exceptional performance.

 

The Virginia Department of Small Business and Supplier Diversity (DSBSD) was created by the merger, on January 1, 2014, of the Virginia Departments of Minority Business Enterprise and Business Assistance, pursuant to the provisions of a bill passed by the General Assembly during its 2013 Session. The agency's purpose is to foster economic growth in the Commonwealth by promoting both the use of small businesses in state and local government procurement through the certification of Small, Women-owned and Minority-owned (SWaM) businesses and Disadvantaged Business Enterprises (DBEs) and the creation and expansion of small businesses in Virginia through business outreach and development that offers educational opportunities and information to entrepreneurs who seek to start or grow their businesses in Virginia, as well as state-wide programs that provide businesses, not-for-profits, and economic development authorities with financing for economic growth and expansion.

The Virginia Department of Small Business and Supplier Diversity (DSBSD) was created by legislation proposed in the 2013 General Assembly Session.   As legislation passed, the merger became effective in January 1, 2014.  The assembling of the former Virginia Department of Business Assistance (DBA) and the Virginia Department of Minority Business Enterprise (DMBE) established a “one stop” business resource that currently serves as a gateway for small businesses seeking assistance with the growth and development of their business, assistance with obtaining access to capital and assistance with competing for local, state and federal procurement opportunities.

Virginia, crowned as one of the “Best Places to Do Business” by Forbes Magazine in years 2006, 2007, 2008, 2009, and 2013, attracts small businesses around the country. The Commonwealth, which has also been touted as business friendly, has an open door policy that encourages competition amongst start-ups and existing small businesses in several traditional and high growth industries including advanced manufacturing, healthcare, biosciences, cyber security, and energy.

As the premier agency for businesses development, DSBSD has in its toolbox resources ranging from Outreach Services and Financing to Certification for both state and federal programs that support the growth and sustainability of small businesses.  The agency’s subject matter experts are professionals that have years of experience and training to assist small businesses in navigating state government successfully.  In addition, DSBSD has access to collaborative partners that share in the same value system of investing in the advancement of small businesses.  As an Advocate, this newly merged agency is evolving as the catalyst for economic development while meeting objectives for small businesses in attracting and retaining talent; policy development; procurement; and wealth creation.

In addition to advocacy, the agency supports small businesses by providing access to capital.  The Department of Small Business and Supplier Diversity (DSBSD) has the Virginia Small Business Financing Authority (VSBFA) focused in several key areas to enhance capital access to support the Commonwealth’s economic development effort.  The VSBFA has initiated or improved upon several creative financing tools designed to support the Administration’s move toward a new Virginia economy.

In addition to access to capital, the agency provides support through Business Development and Outreach Services as well as technical assistance support.  The Business Development and Outreach Services (BDOS) of DSBSD will continue to support economic development in Virginia by working with both new and existing small businesses in the Commonwealth.  The BDOS team serves as a one-stop for facilitation of licensing and registration with 26 different state agencies through the Business One Stop Portal (BOS).  The agency staffs and administers a hotline for all business questions at any stage of business through the Virginia Business Information Center (VBIC).  The agency conducts business-related educational workshops throughout the Commonwealth on doing business with government at all levels.  The division assists with finding target markets as well as provides guidance on development and growth options.

DSBSD also offers a StreetWise MBA, a national program to take qualified/selected businesses through an intensive seven-month program to scale their business to the next level with expected results of increased revenue and job creation.  Additionally, in conjunction with large prime contractors, the agency offers a four-week Contractor’s Class to strengthen small businesses in their preparation to be qualified subcontractors and open opportunities for these businesses.

Finally, the agency supports both the Commonwealth and Federal certification programs. The Certification Division is responsible for the certification of eligible Micro, Small, Women, and Minority (SWaM), Employment Service Organizations (ESOs), Historically Black Colleges and Universities (HBCUs), Service Disabled Veteran (SDVs) as well as Federal Reciprocity for 8(a), Economically Disadvantaged Woman Owned Small Businesses (EDWOSB) and Federal Service Disabled Veteran (FSDVs) owned businesses administered through the Commonwealth of Virginia program.  This program allows businesses to access contracting dollars at the state and local level.

This division also certifies Disadvantaged Business Enterprises (DBEs) for participation under the Virginia Unified Certification Program which is a Federal program under the US Department of Transportation.  This program allows businesses to access contracting dollars at the federal, state and local level primarily related to transportation.

Through these programs and services the agency fulfills its mission to enhance growth opportunities for Virginia’s small businesses to prosper through increased revenue and job creation thereby raising the standard of living of all Virginians.

DSBSD completed overhauling all IT applications within the agency as of fiscal year 2021. The website boasts increased functionality and an updated modern design. The site allows for fast and easy registration and provides the agency with data analytics on business workshop attendance.

The Certification Portal  allows for complete electronic submission of required documents to complete the certification process. The portal also provides reminders to currently certified businesses that their certification is due to expire and they need to recertify.

The Expenditure Dashboard offers ehanced functionality to allow agencies across the Commonwealth to track SWaM spend against targeted goals. Agencies are able to manage user access themselves allowing for real time updates to agency information. Reporting from the dashboard allows the Sourcing and Compliance Unit to identify opportunities for increased usuage of small businesses. 

Twelve percent (12%) of DSBSD employees are eligible to retire immediately and Ten percent (10%) are eligible to retire in the next five years. Twenty-seven percent (27%) of DSBSD employees are sixty years old or older. The obvious impact will be the loss of experience, specialized skills, and institutional knowledge. The need for effective succession planning will increase in the next several years as many of the agency's long term employees retire.

The agency has developed a recognition program focusing on non-monetary ways to recognize and motivate staff. The agency is fostering a culture that is supportive of professional development opportunities to allow staff to continue to grow. Evaluation of career progression opportunities within the agency are ongoing.

The agency is actively working to develop succession-planning strategies to include knowledge capture through documentation of processes and cross training of staff to ensure depth across positions.

DSBSD is in the James Monroe Building on the 11th floor. This location allows staff to be within close proximity to partner agencies. In addition, the agency maintains satellite offices to include Virginia Beach, Hampton, Lynchburg, Fairfax, Petersburg, Radford, Roanoke, and Abingdon.  These satellite offices are used by outreach staff to make appointments to serve clients across the Commonwealth.

The agency has experienced consistent growth in certification designations through the legislative process.  Every change in legislation requires changes to agency technology to allow for monitoring and tracking.  Additional designations also increase the number of businesses that are eligible to participate in the Commonwealth SWaM program putting a strain on existing staff to meet the increased volume.

In prior legislative sessions, the General Assembly has discussed legislation to change the definition of a small business.  Changes to this definition could result in changes needing to be made to agency technology and staffing will need to be evaluated to determine if it is able to support new demands.  

SBSD has several IT applications that it is responsible for managing.  Those applications include the agency website, certification portal, expenditure dashboard and business one stop portal.  The agency has recently updated the website and certification portal but still needs to update the expenditure dashboard and business one stop portal.  The need to continuously upgrade technology strains agency resources. 

DSBSD receives approximately 70% of its funding from general funds and 30% of its funding from non-general funds. The majority of the non-general funds are allocated to loans and guarantee programs administered by the Virginia Small Business Financing Authority and the highway transportation funds allotted to the Federal Disadvantaged Business Enterprise (DBE) program.

The VSBFA receives $170,591 in general funds accounting for 4% of its operating budget.  These funds are used to support the Executive Director’s salary and other operational expenses.  The primary source of revenue for the remaining non-general support of the Authority is derived from bond fee income.  The VSBFA is self funded, however, should it experience a decline in bond activity or fee collection, the division would not be able to sustain operations without increasing general funds support.

The agency has experienced significant programmatic and organizational change since FY2005.  The changes have resulted in additional program responsibilities that have not been adequately funded.  The number of certified vendors managed by both the SWaM and DBE programs in FY2005 was approximately 3,000, while the program has grown to now support approximately 16,500  certified vendors in FY2022.  This is more than a 500 percent increase in programmatic volume over the last 17 year period.  However, staffing in FY2005 was seven employees.  By FY2018 the number had increased to 11.  This has put a strain on resources making it difficult for existing staff to meet regulatory requirements and support the small businesses it is charged with serving.  This can stall small business access to Virginia procurement opportunities which impacts the overall health of the economy.

The agency has identified a need across all divisions to better leverage technology to provide real time data internally for performance management and externally to stakeholder and small business advocacy groups.  The agency currently has no dedicated resources available to support these efforts.  DSBSD has identified a need for a customer relationship management (CRM) tool that would allow for the tracking and analyzing of all customer interactions.  Also, the agency has a need for internal and external dashboards to collect vital information that allows for proactive program adjustments based on economic indicators and the success or failure of current activities.  These tools will allow the agency to strategically focus resources and create efficiencies while serving Virginia small businesses.

DSBSD charges a $20 fee for use of the Business One Stop Portal.  This revenue stream yields on average $40,000 annually.  The costs to operate and maintain the portal exceed revenue generated at this time.

The agency also charges a $75 fee for onsite inspections of SWaM businesses that are seeking certification outside of Virginia and that certification program requires an onsite inspection to participate.  The volume is low and generates less than $1,000 on average of revenue for the agency.

The VSBFA receives its primary source of revenue for non-general funds from bond fee income.  Should the Authority experience a decline in bond activity or should legislation be introduced that limits bond activity or fee collection the division would not be able to sustain operations.

Certification of Small, Women-owned and Minority-owned (SWaM) businesses and Disadvantaged Business Enterprises (DBEs):

As of August 26, 2022, the Commonwealth of Virginia had approved a total of 14,762 companies to be certified as SWaM businesses. Of these companies, 12,904 businesses were located in Virginia, while 1,858 were from out of state. As of August 26, 2022, there were 8,266 SWaM certified firms that were also certified as Micro-Businesses, of which 7,777 were located in Virginia and 489 were from out of state. As of August 26,2022, there were 3,165 certified Disadvantaged Business Enterprises (DBEs) in Virginia, of which 1,597 were located in Virginia and 1,568 were from out of state.  The total number of SWaM and DBE certified vendors in the DSBSD database is 16,514 of which 13,570 are Virginia businesses.

 Business Development and Outreach Services (BDOS): 

The BDOS division planned and organized events for Virginia small business of all sizes from start-ups to more advanced businesses.   Because more than 99% of all Virginia businesses are considered small, these businesses are Virginia’s economic engine.  Some of the core offerings are overviews of the eVA system, an overview of the SWaM certification proceess and how to find a targeted market in selling to Virginia government.

 We offer certification events, financing informational events and one-on-one consultations for individuals needing additional assistance.  We offer a premier program for more advanced businesses, New Virginia: Scaling4Growth.  In addition, we offer several workshops/webinars on QuickBooks; marketing; construction and more.  During 2021 and 2022, through agency events and consultations BDOS served over 4,000 businesses.

The advanced program, NEW VIRGINIA: Scaling4Growth is offered twice a year with 16 businesses selected for each cohort.  This has been a dynamic program in partnership with Interise out of Boston.  Graduates and their progress are tracked once a year for three years following graduation from this program.  Virginia's program is Interise’s number one program in the country.

In addition, BDOS has an extensive partner list statewide and develops working relationships to strengthen service available to small businesses

Loan Assistance and Grants:

The Virginia Small Business and Financing Authority facilitated financing from all of its programs totaling approximately $837.0 million for the two fiscal years of FY2021 – FY2022.  Results were attributable to conduit bond financing of $825.8 million and $11.2 million from direct loan and credit support activity.  Also, 4,592 jobs were retained and/or created from this activity

In FY2021 – FY2022 all of the funds appropriated to the Small Business Investment Grant Fund (SBIG) of $1,643,732 were awarded to investors.  Ninety-five (95) grants were awarded to eighty four (84) investors who contributed $6,977,881 in equity capital to thirty-four (34) of Virginia’s small businesses.  The average SBIG grant was $17,302 representing an average return on investment of approximately twenty-four percent (24%).

Special Program:  Rebuild! VA Grant Fund Program (“Rebuild”).  In FY2021 – FY2022, the Authority pivoted operations to administer $395 million of funding from the CARES Act and ARPA to assist small businesses in the Commonwealth that were financially disrupted by the COVID-19 pandemic.  During that time Rebuild awarded $373.2 million to 7,365 small businesses with an average grant award of approximately $50,700.  In addition, $130 million was allocated to Rebuild in FY2023 to process the 2,856 applications that remained in the pipeline at the end of FY2022.  This will increase the total funding that the Authority will administer for Rebuild to $525 million

DSBSD's customer base will grow as 99 percent of businesses in Virginia are categorized as small businesses.  As the agency does more outreach and advocacy work we will see more vendors served by our programs.  Legislative changes adding new designations such as Micro, Employment Service Organizations, Historically Black Colleges and Universities, and Federal Reciprocity Vendors will increase our customer base as well.

Certification of Small, Women-owned and Minority-owned (SWaM) businesses and Disadvantaged Business Enterprises (DBEs):

Initial certification and recertification of Small, Women-owned and Minority-owned (SWaM) businesses and the certification and annual review of certification for Disadvantaged Business Enterprises (DBEs) allows small businesses to access Commonwealth procurement opportunities of goods and services. Certified businesses gain opportunities to bid on state government contracts, and are also listed in a directory which is used by government procurement officers in state and local government purchases.

DSBSD certification designations have grown to include seven certification types as well as an agreement to allow for reciprocity with federal programs that align with the current Commonwealth initiatives.   

Business Development and Outreach Services:

The Business Development and Outreach Services (BDOS) Division is often the first point of contact for small business owners who are interested in growing their businesses by obtaining more information about the Virginia Small Business Financing Authority or learning the marketing advantages of the Commonwealth of Virginia’s certification as a SWaM (Small, Woman-owned, or Minority-owned) business. This division of DSBSD offers a broader reaching scope of services to all small businesses by facilitating connections to contracting opportunities with various levels of government as well as business to business opportunities.

The Commonwealth’s Business One Stop is staffed and managed by the agency.  This application allows access to certification, registration, licensing and permitting from 26 agencies through one comprehensive source for individuals seeking to start a business in Virginia.  The agency also offers the Virginia Business Information Center (VBIC) where individuals can receive general business guidance and advice through phone, e-mail and live chat.

The Sourcing and Compliance Unit was newly established to support procurement officials and businesses in the Commonwealth in strategically sourcing SWaM business participation on large dollar Commonwealth contracts. The unit will assist state agencies with the achievement of the 42% aspirational spend goal set by Governor Executive Order. The unit will also support SWaM businesses that serve as subcontractors to larger primes.

The Disadvantaged Business Enterprise Outreach Division provides specialized management and technical assistance to Disadvantaged Business Enterprises (DBEs) participating in projects funded by the US Department of Transportation and other federal sectors.  The primary purpose of the specialized assistance is to provide training, assistance, and services to DBEs certified in the DBE program to increase their activity in the program, and to facilitate the enterprises’ development into viable, self-sufficient organizations capable of competing for, and performing on Federally- assisted highway projects.  This program also serves as a linkage to subcontractors for prime vendors that have been awarded transportation projects.  This business-to-business connection may facilitate new opportunities and business development for the DBE entity.

Business outreach provides resources that will enable small business in Virginia to grow, create jobs and strengthen the economy.

Loan Assistance and Grants:

The Authority serves as the Commonwealth’s engine for small businesses to accessing loans and private investment equity through programs that it administers on its own and with its strategic partners: community financial institutions and credit unions; economic and industrial development authorities; and other small business advocates and stakeholders.

The VSBFA administers state-wide programs that provide small businesses, non-profits, and economic and industrial development authorities with financing for economic growth and expansion.

The VSBFA offers:

• Loans directly to small businesses and non-profits;


• Loan guarantees to community financial institutions that are lending to small businesses and non-profits;


• Conduit bond issuances that benefit for-profit businesses and 501 (c) (3) non-profit entities, as well as clean energy and P3 transportation projects; and


• An investment grant program to attract and incentivize private investors to make equity investments in small businesses.

Certification of Small, Women-owned and Minority-owned (SWaM) businesses and Disadvantaged Business Enterprises (DBEs):

The introduction of the micro business designation through Executive Order 20 was enacted and implemented in October of 2014.  The agency has been able to certify more than 8,200 micro businesses since the Executive Order was implemented; 94 percent of which are Virginia based businesses.  As of FY22, micro businesses have received over 578,966 orders from the state. From FY19-FY22  the overall Virginia investment in these procurement activities  was more than $1.2 billion..

DSBSD has implemented revised regulations to align with the current business environment and allow greater access to certification. The agency has updated its review process to ensure program integrity and compliance with The Code of Virginia.  The agency has up to 60 business days per regulation to process complete applications.  The agency has been able to meet processing of applications within the regulatory guidelines.

Business Development and Outreach:

Business Development and Outreach works in collaboration with the small business community throughout the Commonwealth as part of its comprehensive approach to providing assistance to small businesses. The agency’s Business Service Managers reach hundreds of small business owners annually.

Loan Assistance and Grants:

The Authority facilitated financing from all of its programs totaling approximately $837.0 million for the two fiscal years of FY2021 – FY2022. Results were attributable to conduit bond financing of $825.8 million and $11.2 million from direct loan and credit support activity.  Also, 4,592 jobs were retained and/or created from this activity

In FY2021 – FY2022 all of the funds appropriated to the Small Business Investment Grant Fund (SBIG) of $1,643,732 were awarded to investors.  Ninety-five (95) grants were awarded to eighty four (84) investors who contributed $6,977,881 in equity capital to thirty-four (34) of Virginia’s small businesses.  The average SBIG grant was $17,302 representing an average return on investment of approximately twenty-four percent (24%).

Special Program:  Rebuild! VA Grant Fund Program (“Rebuild”).  In FY2021 – FY2022, the Authority pivoted operations to administer $395 million of funding from the CARES Act and ARPA to assist small businesses in the Commonwealth that were financially disrupted by the COVID-19 pandemic.  During that time Rebuild awarded $373.2 million to 7,365 small businesses with an average grant award of approximately $50,700.  In addition, $130 million was allocated to Rebuild in FY2023 to process the 2,856 applications that remained in the pipeline at the end of FY2022.  This will increase the total funding that the Authority will administer for Rebuild to $525 million.

Implement strategies that assist small businesses to be more competitive in a rapidly changing global economy.

DSBSD programs contribute to the economy of Virginia by providing critical information to small businesses to start and grow and enhance economic development through revenue generation and job creation in the Commonwealth for all small businesses, certified and non-certified.

The Agency serves the entire state in each of five agency-designated geographic regions.

• Build regional network of small business resources and develop events that serve external stakeholders by offering key information to include how to start or grow a business, access to markets, access to capital, gaining appropriate certifications for marketability, connecting to government and private buyers for doing business.

Providing accurate and timely information to agencies and other affected constituencies. Continual improvement of reporting capabilities and functionality to allow the Expenditure Dashboard to be the source of data for achievement of aspirational goals.

• Utilize updates in technology to ensure functionality. Conduct workshops and training activities to provide transparency in the data collection and reporting process. Continual review and partnership with DOA and Bank of America to ensure data integrity.

The Authority promotes industry, develops trade and increases employment for small businesses by executing the mandate provided in Section 2.2-2279, of the Virginia Small Business Financing Act. (Declaration of Purpose 2.2-2280). The Authority offers direct loans, investment grants and conduit bond financing programs to fulfill its objective, as well as, enabling private financing for small businesses with its guaranty programs. The Authority’s mandate compliments DSBSD in promoting economic growth and prosperity for Virginia’s small businesses

• Create a network of partnerships with community financial institutions and credit unions, economic and industrial development authorities, and other small business advocates and stakeholders to generate opportunities to provide access to capital to small businesses.

Increasing opportunities for businesses to have equal access to Commonwealth procurements. Timely access to both certification programs allows for competitive advantage for small businesses.

• Utilize new technology to create efficiencies by moving from a manual process to a fully automated process for customers. Continue to evaluate current regulations to identify opportunities to streamline the process and timeframes required.

Because small businesses are the economic engine of the Commonwealth it is imperative that the agency offer services designed to assist with the development and growth of those small businesses.

DSBSD programs contribute to the economy of Virginia by providing critical information to small businesses to start and grow and enhance economic development through revenue generation and job creation in the Commonwealth for all small businesses, certified and non-certified.

The Agency serves the entire state in each of five agency-designated geographic regions.

• Build regional network of small business resources and develop events that serve external stakeholders by offering key information to include how to start or grow a business, access to markets, access to capital, gaining appropriate certifications for marketability, connecting to government and private buyers for doing business.

The Authority promotes industry, develops trade and increases employment for small businesses by executing the mandate provided in Section 2.2-2279, of the Virginia Small Business Financing Act. (Declaration of Purpose 2.2-2280). The Authority offers direct loans, investment grants and conduit bond financing programs to fulfill its objective, as well as, enabling private financing for small businesses with its guaranty programs. The Authority’s mandate compliments DSBSD in promoting economic growth and prosperity for Virginia’s small businesses

• Create a network of partnerships with community financial institutions and credit unions, economic and industrial development authorities, and other small business advocates and stakeholders to generate opportunities to provide access to capital to small businesses.

Increasing opportunities for businesses to have equal access to Commonwealth procurements. Timely access to both certification programs allows for competitive advantage for small businesses.

• Utilize new technology to create efficiencies by moving from a manual process to a fully automated process for customers. Continue to evaluate current regulations to identify opportunities to streamline the process and timeframes required.

The Certification Service Area is responsible for the certification of eligible Micro, Small, Women, and Minority (SWaM), Employment Service Organizations (ESOs), Historically Black Colleges and Universities (HBCUs), Service Disabled Veteran (SDVs) owned businesses administered through the Commonwealth of Virginia program.  The program also allows reciprocity for three federal certifications that are third party verified, 8(a), Economically Disadvantaged Woman Owned Small Business (EDWOSB), and Federal Service Disabled Veteran (FSDV).   This program allows businesses to access contracting dollars at the state and local level as well as Corporate/Private entities in Virginia.

This service area also certifies Disadvantaged Business Enterprises (DBEs) for participation under the Virginia Unified Certification Program which is a Federal program under the US Department of Transportation.  This program allows businesses to access contracting dollars at the federal, state, and local level primarily related to transportation.

The certification programs directly align with DSBSD’s  mission to promote economic growth by helping Virginia small businesses prosper through increased access to government contracting opportunities.

This Service Area performs the certification function that is required by the Code of Virginia, Section 2.2-1604 et seq. for the SWaM Certification Initiative.

This Service Area also implements the federal certification program required under 49 CFR Parts 23 and 26 for the federal Disadvantaged Business Enterprise Program under the U.S. Department of Transportation.

§ 2.2-1605. Powers and duties of Department., and § 2.2-1604. Definitions

Micro Small Business Certification (MicroBE)

Small Business Certification (SBE)

Women-owned Business Certification (WBE)

Minority-owned Business Certification (MBE)

Disadvantaged Business Certification (DBE)

Service Disabled, Veteran-owned Business (SDV)

Employment Service Organizations (ESO)

Historically Black Colleges and Universities (HBCU)

Reciprocity for Federal 8(a) Certification

Reciprocity for Federal Economically Disadvantaged Woman Owned Small Business (EDWOSB) Certification

Reciprocity for Federal Service Disabled Veteran (FSDV) Certification

SWaM and DBE Directories

Technical Assistance

Precertification Workshops

Buyer Workshops

Certification Application Portal

This service area is supported by 44% general funding and 56% highway transportation funding.  The agency has experienced significant programmatic and organizational change since FY2005.  The changes have resulted in additional program responsibilities that have not been adequately funded.  The number of certified vendors managed by both the SWaM and DBE programs in FY2005 was approximately 3,000, while the program has grown to now support approximately 15,000 certified vendors in FY2018.  This is a 500 percent increase in programmatic volume over the last 13 year period.  However, staffing in FY2005 was seven employees.  By FY2018 the number had increased to 11, which has resulted in a 57 percent increase in staffing over that same time period.  This has put a strain on resources making it difficult for existing staff to meet regulatory requirements and support the small businesses it is charged with serving.  This can stall small business access to Virginia procurement opportunities which impacts the overall health of the economy.

Business Development and Outreach Services (BDOS) contributes to the economy of Virginia by providing critical information to small businesses to start and grow and enhance economic development through revenue generation and job creation in the Commonwealth for all small businesses, certified and non-certified.

The Business Development and Outreach Services team serves the entire state in each of five agency-designated geographic regions.  BDOS develops and implements dynamic workshops on critical topics for small businesses.  Additionally, we include other small business resources in the area when offering larger conferences.

BDOS provides critical information to small businesses  by offering events to include but not limited to, Entrepreneur Express, Grow Sales Conferences, Selling to the Commonwealth (to include both eVA and SWaM Certification), Selling to the Commonwealth Computer labs, SWaM Workshops and Labs, Business Consultations sessions, Construction Contracting Class and New Virginia: Scaling4Growth (in partnership with Interise.org) – a six-month business growth program.  In addition, we offer business-related workshop topics related to financing, accounting, marketing and others as well as Regional Connects and Dashboard workshops.

The Virginia Business One Stop and the Virginia Business Information Center serve businesses and encourage new business formation by serving as a pivotal point of contact for technical assistance to entrepreneurs on state licensing, registration and regulatory requirements and by providing development opportunities for entrepreneurs. These programs accelerate business formation and growth by making it easier for young companies to understand and access the more than 110 regulatory and business assistance programs administered by 26 different state agencies in the Commonwealth.

The Sourcing and Compliance Unit was newly established to support procurement officials and businesses in the Commonwealth in strategically sourcing SWaM business participation on large dollar Commonwealth contracts. The unit will assist state agencies with the achievement of the 42% aspirational spend goal set by Governor Executive Order. The unit will also support SWaM businesses that serve as subcontractors to larger primes.

The Department provides specialized management and technical assistance to Disadvantaged Business Enterprises (DBEs) participating in projects funded by the US Department of Transportation and other federal sectors.  The primary purpose of the specialized assistance is to provide training, assistance, and services to DBEs certified in the DBE program to increase their activity in the program, and to facilitate the enterprises’ development into viable, self-sufficient organizations capable of competing for, and performing on Federally- assisted highway projects.

This program also serves as a linkage to subcontractors for prime vendors that have been awarded transportation projects.  This business-to-business connection may facilitate new opportunities and business development for the DBE entity.

As with all divisions within the Department of Small Business and Supplier Diversity data collection for BDOS and DBE Outreach is critical to understanding the needs of stakeholders and evaluating program outcomes.

The programs offered by the Business Development and Outreach Services directly align with DSBSD’s  mission to promote economic growth by helping Virginia businesses prosper through increased revenue and job creation thereby raising the standard of living for all Virginians.

§ 2.2-1605. Powers and duties of Department. A. 1. , 2. & 4. &  B. 2. & 4.  § 2.2-1606. Powers of Director. 2. & 5.

The programs offered by the Disadvantaged Business Enterprise Outreach Services directly align with DSBSD’s  mission to promote economic growth by helping Disadvantaged Business Enterprises prosper through increased revenue and job creation, thereby raising the standard of living for all Virginians.

§ 2.2-1605. Powers and duties of Department

Regional Business Services Managers facilitate the collaboration of other small business resource entities in each of five regions throughout the Commonwealth and within the region offer several business development events, some of which include:

Entrepreneur Express

Growing Sales Conferences

Selling to the Commonwealth Seminars

Selling to the Commonwealth Labs

SWaM Certification Workshops and Labs

New Virginia Scaling 4 Growth Development Program

Construction Contracting Course

Business Consultation

Regional Connects for buyers and small businesses

Dashboard Workshops for state buyers

Other key business-related workshops (including but not limited to QuickBooks, Finance, Accounting, Marketing, Social Media Marketing, etc.)

Business One Stop – This initiative is an interactive electronic portal which helps entrepreneurs determine formation requirements and assist with the completion of the filing and permitting process.   Currently, there are 26 different state agencies, with over 400 forms, and over 100 business regulatory and assistance programs that could touch a business during its formation process.

Virginia Business Information Center – The Virginia Business Information Center (VBIC) is a gateway for assistance with business formation.  The service can be accessed by phone, email and live chat and provides tailored solutions to the entrepreneur.

Regional Disadvantage Business Enterprise and Transportation Business Development Specialists facilitate collaboration between federally funded entities and prime contractors in each of four regions throughout the Commonwealth, some of the major products and services include:

Technical assistance

Management review

Certification support

One on one counseling to DBE vendors

Guidance to agency procurement officers; with a focus on the Virginia Department of Transportation (VDOT)

DBE business-related workshops (including but not limited to collaboration on the DBE annual training symposium)

Facilitate connections between DBEs and federally funded projects, prime contractors and appropriate federal agencies

DBE directory on the agency website

This service area is supported by 75% general funding and 25% highway transportation funding.  This service area includes the agency Business One Stop (BOS) portal and Virginia Business Information Center (VBIC) Line.  These functions support business development by linking small businesses to resources throughout the Commonwealth to start and grow their businesses.  The agency Business Development and Outreach Services team as well as the Disadvantaged Business Enterprise Outreach Services team is included in this service area.  They provide one-on-one counseling, education through workshops and training events, business development services, technical assistance, as well as develop sources of supply for Commonwealth projects.

Administrative Services within the Virginia Department of Small Business and Supplier Diversity provides administrative support to the agency's staff by providing financial management, human resource management, procurement, information technology, performance management, and communications.

This division also works collaboratively with state agencies and institutions to collect and verify expenditure data, and to provide statistical analyses and reports on the Commonwealth’s expenditures for goods and services from Small, Women and Minority ("SWaM") vendors.

Detailed state expenditure data through the Commonwealth Accounting System and the Bank of America credit card reporting process.  This data is captured and reported by Agency, Secretariat and Commonwealth; totals can be reported by month, quarter, and year.

DSBSD produces expenditure reports that demonstrate the Commonwealth's progress with achievement of the 42% goal of doing business with SWaM vendors. The agency uses data captured within the SWaM Expenditure Dashboard to monitor this progress.

This service area supports the promotion of economic growth by helping Virginia businesses prosper by providing assistance, guidance and support to all service areas within the agency.  It generates and reports to the Governor and General Assembly the status of the state's expenditures to small, women- and minority-owned businesses.

In addition, the Administrative Services area supports the agency's mission by providing the direction, operational consistency, and compliance requirements of the Commonwealth and other laws as applicable.  It also provides direct statistical feedback to the Executive and Legislative branches on the Commonwealth's performance and impact on the growth and development of the Virginia's small, women- and minority-owned ("SWaM") businesses.

Citations to the Code of Virginia

§ 2.2-1603. Department of Small Business and Supplier Diversity created; appointment of Director; offices; personnel.

§ 2.2-1606. Powers of Director. 2., 6., 7., & 8.

Subsection 3. of § 2.2-1605. Powers and duties of Department.

Subsection 1. of § 2.2-1606. Powers of Director.

§ 2.2-1610. Reports and recommendations; collection of data.

Accounting: All deposits, travel reimbursement vouchers, vendor invoices, project reimbursements, procurement, maintaining the equipment inventory and surplus property records, overseeing the Small Purchase Charge Card and Travel Charge Card programs, monthly reconciliations and policy development and interpretation are handled in the Administration Service Area.

Payroll: All payroll related transactions are processed through Administrative Services. The documents are submitted to the Department of Accounts Payroll Service Bureau to be entered in to the Commonwealth Integrated Payroll/Personnel System (CIPPS). All entries are verified and the payroll is certified for processing. Payroll oversight for the agency is provided by Administrative staff.

Human Resources: Human resource functions are handled by Department of Human Resource Management's Service Bureau. This will include benefits, compensation and classification, pay transactions, leave accounting, recruitment, employee relations, policy development and interpretation, coordination with payroll and reporting. Worker's compensation is handled by the agency as well as human resource administrative functions.

Budget: All budgetary transactions and distribution and strategic planning processes are responsibilities of Administrative Services.

Financial Reporting: All monthly, quarterly and annual reports as required are compiled and submitted by the Administrative Services & Virginia Small Business Financing Authority staff.

General Support: This consists of overseeing the mail function, package pick ups and deliveries, staffing the receptionist desk, answering and directing phone calls from outside callers and/or visitors.

Agency Management: The Agency Director and Agency Deputy Director are part of the Administrative Services Division.

Legislative Services: Legislative Services for the agency is administered by Administrative Services.

IT Support: The agency utilizes VITA; however, day-to-day IT needs are administered for the agency by Administrative Services.

Expenditure Dashboard:  The collection of expenditure data, generation of statistics, and preparation of reports to track progress toward meeting aspirational goals is managed by the Administrative Services Division. Success is measured by the number of dollars agencies spend with SWaM vendors, as displayed through the SWaM Expenditure Dashboard

This service area is 97% general fund and 3% highway transportation fund supported.  This service area supports the administrative and leadership functions of the agency to include the Director's Office, Fiscal Operations, Procurement, Facility Management, Budget Development and Oversight, Human Resource Support, Reporting of Expenditures related to the SWaM Initiative, Information Technology Support and Rebuild VA Pandemic Grant support.

This service area consists of the Virginia Small Business Financing Authority which implements the Virginia Small Business Financing Act, assisting Virginia’s new and existing businesses, as well as businesses expanding into Virginia, by increasing access to capital through the creative application of public and private financing. The goal is to promote and develop industrial development and to further the long-term economic development of the Commonwealth through the improvement of its tax base and the promotion of employment. The Authority will seek to promote industry, develop trade, and increase employment opportunities. Programs and services are available statewide, with focused effort on regions of highest distress.

In addition, this service area includes the Small Business Investment Grant Fund that incentivizes private investors to make equity investments in small businesses by reimbursing the investor(s), a percentage of their investment, in the small business start-up or expansion.

The mission of the VSBFA and this service area aligns with the agency mission by providing financing for the benefit of new and expanding Virginia small businesses, to promote and develop industrial development and to further the long-term economic development of the Commonwealth through the improvement of its tax base and the promotion of employment.

Article 7. Virginia Small Business Financing Authority § 2.2-2279 - § 2.2-2314.

Direct Loans - The Authority offers direct loans to small businesses through its Microloan, Child Care Financing Program (CCFP) and Economic Development Loan Fund (EDLF) programs.  The Microloan program is funded by Commonwealth of Virginia resources.  The Authority administers the CCFP for the Department of Education (DOE), under a memo of understanding; the CCFP is funded by a federal grant awarded to the DOE.  The EDLF program is primarily funded by a grant under the U. S. Treasury, State Small Business Credit Initiative and is augmented by Commonwealth of Virginia resources.

Credit Enhancement Programs – The Authority offers two programs, Loan Guaranty (LGP) and Cash Collateral (CCP), to encourage community financial institutions (CFI) to provide loans to small businesses that the CFI may not otherwise approve without the Authority’s guaranty (LGP) or cash that the Authority deposits with the CFI for additional collateral to secure the loan (CCP).

Conduit Bond Financing - The Authority is a multi-jurisdictional conduit issuer of industrial development bonds to qualifying for-profit businesses, 501 (c) (3) non-profit entities, as well as, P3 transportation projects under the Industrial Development Bond Program (IDB).  The Authority also serves as the Commonwealth’s administrator of the statewide private activity bond allocation for IDB issuances.  Fees earned from conduit bond financing is the principal source of income funding VSBFA’s operations. The Authority relies on its relationships with bond attorneys to sustain fee income.  Therefore it is critical for the Authority to continue to provide exceptional service and turnaround and will endeavor to expand its network of bond attorneys.

Technical Assistance/Resources - The Authority provides technical financial counseling and education to businesses and business owners who express a need for financing but do not know the necessary steps, procedures, and tools to obtain financing through public and/or private sectors.  Additionally, Authority team members call on businesses and represent the Agency in a myriad of panels and other presentations to small business owners and entrepreneurs.

The Small Business Investment Grant Fund (SBIG) is used to encourage investors to invest in small businesses. The grant will reimburse investors up to 25% of their investment in a qualified small business (depending upon availability).  Changes to the legislation in recent years have decreased the percentage of investment available for award from 50% to 25%.  However, the 25% return on investment is still very attractive to investors and it returns capital for the potential of reinvestment.

This service area is approximately 48% general fund and 52% non-general fund supported.  This service area holds funding for the Small Business Investment Grant.  Funding totaling $170,951 of the general fund is set-aside to support the Virginia Small Business Financing Authority(VSBFA) and General Funds in the amount of $819,753 are transferred to the Small Business Investment Grant fund.  The non-general fund balance in this service area is primarily generated by conduit bond issuance fee income.  Smaller amounts of revenue are generated from other program fees and interest income from direct loans and program cash on deposit