SBDC Advisor Newsletter Fall 2008 – Program Spotlight: Results of SBDC’s Defense Assistance Felt Ten Years Later



	in this issue SBDC News & Information SBDC Helps Researcher Gain $3.5 Million to Develop Power Packs Consultant Profile: George Boehm How to Thrive in an Economic Downturn Results of SBDC’s Defense Assistance Felt Ten Years Later Food Businesses Require Prep Time to Succeed Steps to Start a Specialty Food Business Capitol Views SPECIAL ISSUE: Presidential Candidates Forum Congress Working on Improvements to Small Business Innovation Research Bill Awards Events Educational Programs First Step Workshops Educational Programs Want More? Get the Advisor in your Inbox Download PDF SBDC Services Return on Investment	Results of SBDC’s Defense Assistance Felt Ten Years Later As Pennsylvania’s State Stars, the SBDC Technology Commercialization consultants will represent Pennsylvania’s nationally-renowned program in Chicago this fall. During an economic dip, it may be helpful for small companies to recall past struggles and victories. Nearly a decade ago, the Base Reduction and Closure Act of 1995 cast a shadow on small companies relying on dollars from the Department of Defense. An early examination of the businesses potentially affected by the downsizing indicated that the effect would reach well beyond those located in the immediate vicinity of the military bases: small technology-based firms relying on funds for research and development would also need to withstand the blow. To respond, the Pennsylvania SBDC developed Technology Commercialization and Defense Economic Transition Assistance in 1999, a specific service to help firms in need of redirection prepare to meet the challenges of a changing economy. Experienced consultants provided over 35,804 hours of consulting to more than 1,996 clients in this category in the past ten years, offering production, financing, marketing, operations management and process improvement expertise to help small firms compete in an increasingly global economy. This effort has resulted in more than $148,019,168 in investments and awards received by SBDC clients. In addition, clients accessed an additional $39,518,255 in Small Business Innovation Research (SBIR) grants to fund new, innovative technology projects.
	Examples include Whitehall-based Dynalene, a supplier of high performance heat transfer fluids used in the pharmaceutical, electronics and chemical process industries. Founded in 1992, Dynalene continues to grow thanks to $1.3 million in Phase II SBIR federal grants from both the Department of Energy and Department of Defense and the proposal and audit assistance it received from the Lehigh University SBDC. Separation Design Group in Waynesburg also leveraged SBIR funds to pursue development of portable medical oxygen and analytical instruments technology. With help from the University of Pittsburgh SBDC, the company claimed $1.5 million in SBIR funds from the National Science Foundation and the National Institutes of Health. Drs. Ian S. Zagon and Patricia J. McLaughlin of ZoeGenics, a biomedical company founded in Hummelstown in 2003 that focuses on healing compounds for diabetic eyesight problems, also benefited from this type of assistance from the Kutztown University SBDC. The company was awarded $1.5 million in SBIR funds from the National Institute of Diabetes and Digestive Kidney Diseases of the NIH and is now conducting clinical trials as part of the commercialization process. “We’re researchers, not business people. The SBDC has been instrumental in interacting with academics that do not understand the business process and are an invaluable asset in working through the bureaucracies of starting a business and applying for federal research dollars,” Zagon praised. Lightning Packs LLC, another recent success, is featured on the cover of this issue. “Many small firms have a difficult time adjusting to shifting conditions because they don’t have the structure to be able to respond quickly to change,” said Tom Wren, director of the Pennsylvania SBDC’s specialized programs. “New companies don’t have the funding or bandwidth while existing companies tend to use the same processes that worked well for them 20 years ago but just aren’t working now. Our consultants take a hard look at the business model, address weaknesses and help get these companies up to speed.” For more information about Technology Commercialization and Defense Economic Transition Assistance and other ways to ramp up your business, visit www.pasbdc.org/grow.