Congressman Cox returns to Lemoore to boost support for rural businesses in Lemoore and Central Valley

And what better occasion than to have the local congressman announce an initiative to establish, as a part of the Small Business Administration (SBA), an Office of Rural Affairs, designed to help local entrepreneurs in small, rural areas create and operate small businesses.

Cox met with a combined group of 20 local small business owners, small business lenders,  economic developers, and local government officials in the Lemoore Chamber of Commerce meeting room in the old Lemoore City Hall.

It turns out the SBA always had a goal of establishing an Office of Rural Affairs, but unfortunately, Congress never appropriated the funding. Cox wants to change that, and he has a bill that would force the SBA to answer why the Rural Affairs office never got off the ground. His bill would require the SBA to submit a report to Congress answering five key questions:

• What are the cost and potential benefits for having an Office of Rural Affairs?
• On what date was the office dismantled?
• What was the rationale?
• Were there ever funds appropriated?
• What is the cost of establishing an Associate Administrator to oversee the office?

“My goal is to take a two-step approach,” insisted Cox. “One, let’s take a look to see whether or not it can be useful, what are the upsides and what are the costs, whether or not it's needed or what benefit it’s going to bring if anything.

“The first thing is we want to study it, to really take a look at the utility, and if there is utility, then we can take the next step to see if we can’t set this office up, appropriate the money to it and then really have it deliver for the rural communities I represent.”

Cox, who plans to introduce his bill this week to support the SBA Office of Rural Affairs, says such a program can help support small business development in rural communities – like Lemoore and Kings County. “I see my job, as a member of Congress, to support small business,” he said. “I want to make sure you have my support and the resources of Congress.”

If implemented the Office of Rural Affairs would help local businesses in Lemoore and elsewhere in the San Joaquin Valley:

• Apply for financial assistance available for small businesses in rural areas.
• Keep track of annual statistics on rural areas, including the population, poverty, job creation and retention, unemployment, etc.
• Provide information to industries, organizations, and State and local governments about assistance available to rural small businesses.
• Improve the economic opportunities of rural citizens through programs administered by private organizations, educational institutions, and Federal, State, and local governments.
• Work with the United States Tourism and Travel Administration to assist small businesses in rural areas with tourism promotion and development.

Anna Medina, the director of business development for access+capital, a Fresno-based non-profit financial firm that acts as an alternative lender for Central California startups and small businesses, says she is optimistic about an Office of Rural Affairs that she insists could be a step in the right direction towards boosting small businesses in the San Joaquin Valley.

Medina participated in Monday’s congressional gathering with Rep. Cox and the plethora of business and government officials. “This is worth looking into,” she told The Leader. “I think anything that would help small business in rural communities (is positive), and that’s a big focus for a lot of federal agencies. If it makes sense, I think it would be definitely be something positive.”

Medina said access+capital could provide funding up to $800,000 in 14 counties in Central California from Monterey to Kern County. “Our mission is to help a startup or existing businesses that cannot get approved for traditional lending,” she explained. Much of their funding comes from banks because through the Community Reinvestment Act; banks have a responsibility to assist non-profits. “They lend to us, and we lend it out,” said Medina.

The Washington staffer responsible for shepherding the legislation through Congress, Nandini Narayan, told The Leader that she expects a “study bill” to be introduced this week – during Small Business Week – and it will be legislation that could pave the way for an Office of Rural Affairs.

“It’s really us doing a study on providing support for small businesses,” she said. “We’re trying to find if funds were actually appropriated for it (Office of Rural Affairs) and what would be the cost-benefit analysis of establishing an office.”

Narayan said the bill, expected to go to the House this week, is the study bill. “We’ve been looking for ways to support small businesses, and this seems like one of the most logical and beneficial.”