During House of Representatives debates on appropriations in July 1995, the nation's entrepreneurs came dangerously close to losing a reliable ally. For although the U.S. Small Business Administration's Office of Advocacy had served for nearly 20 years as a government champion of small business, some argued during the debates that it was a dispensable agency.

"If Congress got rid of Advocacy, we would lose a crucial voice," contends Mark Deion, a Rhode Island business development consultant and delegate to the 1995 White House Conference on Small Business. "We'd be left with only scattered organizations to fight for our needs."

Rallying the Troops

One of the benefits entrepreneurs mentioned most frequently was Advocacy's powerful behind-the-scenes position. In attempting to make their needs known, small business organizations do not always know the right path to take in approaching government officials. "We can always go to members of Advocacy to find out how to get through the system. They know the protocol," says Debbie Horton, a CPA and regional chair of the taxation focus group which was formed at the 1995 White House Conference.

At the same time, the Office of Advocacy works diligently to keep up with proposed legislation and fight policies that would harm the environment for small businesses. "Its job is to know what Congress is doing all the time. No one else can do that because no one else is on the inside," Deion comments.

The agency's chief counsel and regional advocates are making progress toward implementing the recommendations made at the 1995 Conference. Of these, some have already been enacted while others still present a struggle for business owners and their supporters.

Two of the most critical issues on which the delegates demanded action were access to capital and elimination of excessive regulations and paperwork. The Office of Advocacy has played a vital role in attempting to mitigate these challenges through comprehensive reports and legislative measures.

Streamlining Regulatory Compliance

Finding the Friendliest Banks

"Not only does this study provide accessible, practical advice for small businesses," Glover explains, "but the publicity compels banks to rethink their lending practices."

Helen Anderson, owner of Rayvern Lighting Supply in Paramount, California, can attest to that. She says her bank recently developed a loan program specifically for small businesses. The same scenario seems to be true for many of her fellow entrepreneurs as well. "I've seen more funding come back to small businesses because of the ongoing work of Jere Glover's office," says Anderson.

Going a Step Further

Projects like the new Internet service are evidence that Jere Glover and his colleagues work for change on much more than a legislative level. White House Conference delegates point out that the members of Advocacy's offices are truly facilitators of small business interests. Most feel that the chief counsel and regional advocates are not there to serve their own agenda, but rather to bring important information to the entrepreneurial segment and keep up with Congress on its behalf.

Nothing but the Facts

For without solid facts, small business advocates could not make a convincing case for change. "Our research quantifies the role of entrepreneurs in the economy, and it's the basis of everybody's policies," he asserts.

Ten regional advocates across the U.S. are important sources of information for Advocacy's support of specific legislative proposals. "We're the local eyes and ears," explains Joan Copeland, regional advocate in Denver. Her office, which covers six states in the Midwest and the Rockies, works with local organizations, business and government offices to promote economic growth and opportunity in the area. Through efforts such as these to keep their fingers on the pulse of the entrepreneurial community, regional advocates are able to advise the office of the chief counsel on the most crucial issues to cover in Washington.

Continuing the Fight

One of these, reform of independent contractor regulations, would eliminate the gray area for small businesses that hire or act as contractors. Debbie Horton explains that the proposed improvements would close the loopholes in this area of regulation. "Companies will know whether someone should be classified as an employee or an independent contractor, and compliance [with tax laws] will be enhanced," she says.

Another critical battle that small business advocates and delegates face is establishing a schedule for White House Conference on Small Business. As it stands, Congress may call a conference when it seems necessary. When the 1995 conference convened, nearly 10 years had passed since the previous one. "We'd like to see another conference held within the next five years," Mark Deion notes, "but that's not likely unless we can get Congress to create legislation to set up an implementation team and fund it permanently."

A True Believer

When Congress moved to eliminate the Office of Advocacy, Helen Anderson of Rayvern Lighting Supply quickly jumped on the bandwagon to stop the proposal.

She knows the importance of Advocacy's work from firsthand experience. Her lighting business in Paramount, California does about 70 percent of its work through government contracts with schools, municipalities and prisons, and Anderson has struggled to find access to capital while waiting for government bureaucracies to process payments.

"It's hard to get banks to be responsive when you're doing government work," says Anderson. She explains that the government's idea of prompt payment can be as much as 120 days, so her business would operate at a loss much of the time without sufficient bank credit.

Anderson's concern about procurement for small businesses like hers, as well as the credit crunch she experienced, led to her involvement as a delegate to the 1995 White House Conference on Small Business. She has since observed how well the Office of Advocacy followed through with the recommendations delegates made. "Unequivocally, Advocacy's work and influence have made the difference," she claims.

According to Anderson, the agency has made tremendous progress towards a more level playing field for entrepreneurs. "Because of its authority as a government agency, it has been able to flex some muscle with the Federal Reserve to make banks more friendly to small businesses," she concludes.

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Excerpted with permission from Small Business Success magazine, Volume X, produced by Pacific Bell Directory in partnership with the U.S. Small Business Administration and the Partners for Small Business Excellence.