The National Minority Supplier Development Council (NMSDC) is relocating its 2010 Conference and Business Opportunity Fair, scheduled for October 24-27, from Phoenix, Arizona, to Miami Beach, Florida. The decision to move the conference was made as a result of the concerns of NMSDC members and constituents about the impact of Arizona S.B. 1070. The national organization issued a statement saying, "The bill is inconsistent with the ideals and principles upon which the NMSDC operates, including valuing diversity and inclusion for all."

Senator Mary L. Landrieu (D-LA), chair of the Senate Committee on Small Business and Entrepreneurship, sent a letter on June 28 to the Small Business Administration (SBA) Administrator Karen Mills requesting that the SBA review its internal policies from previous disasters, especially the Exxon Valdez disaster, to improve its response to the Deepwater Horizon disaster.

As of June 25, 2010, the SBA had denied almost 70 percent (243 of 352) of disaster loan applications from Gulf Coast small businesses. According to the SBA, a majority of these requests were declined due to concerns about the credit and repayment ability of the companies. Senator Landrieu, however, argues that the SBA should examine different types of collateral, as well as BP settlements. The letter also requested that the SBA provide a written response to a set of frequently asked questions received from Gulf Coast businesses. These questions cover eligibility for SBA disaster loans, types of collateral needed for loans, and options available for businesses declined for SBA disaster loans.

The SBA has opened up a number of Business Recovery Centers throughout the affected region where SBA customer service representatives are available to answer questions about the disaster loan program, review loan applications, and help business owners complete forms. An up-to-date list of centers is available at www.sba.gov/services/disasterassistance/officelocations/SERV_OFFLOC.html.

In addition, the SBA's Disaster Contracting Assistance Center's (DCAC) website, www.disastercontractingassistance.gov, has been set up to serve as a central point of reference for businesses, especially small, minority-, and woman-owned businesses, to register for and become aware of federal contracting opportunities. While the DCAC does not award contracts, its mission is to ensure that businesses understand the process and are aware of when opportunities might become available.

Marie C. Johns, a longtime advocate for small businesses, was confirmed unanimously by the U.S. Senate as deputy administrator of the SBA. Johns, who was nominated for the post by President Barack Obama, will be the second-ranking official at the SBA, with major responsibility for management, policy development, and program supervision.

Johns was a managing member of L&L Consulting, LLC, an organizational effectiveness and public policy consulting practice. Previously, she served as president of Verizon Washington, DC. Under her leadership, the company made significant strides in maintaining its financial health during tumultuous times in the telecommunications industry.

World-class procurement organizations continue to outperform their peers in driving supplier diversity spending, according to a new study by The Hackett Group, Inc. The study identifies several critical ways in which most companies fail in their supplier diversity programs. Hackett's latest research, which included results from nearly 40 Global 1000 companies, found that corporations with world-class procurement organizations commit 13.3 percent of total spend to diverse suppliers versus 10 percent for typical companies. But, according to Hackett's research, most companies still make major errors in how they operate and measure the performance of their supplier diversity efforts.

Most rely on overly simplistic measurement procedures, such as percentage of total dollars that was spent with diverse suppliers, in order to evaluate the progress of their programs, and they never truly assess whether supplier diversity programs are meeting corporate objectives. For example, less than half of them track the percentage of their supplier base that diverse suppliers represent, and only about 10 percent of all companies actually assess the impact of supplier diversity efforts on revenue or market share.

Another key mistake that companies make, according to the Hackett study, is failing to align program objectives with decisions regarding the number of diverse suppliers with whom they work. According to Hackett, while the objectives of business-to-business companies might be best served by focusing on a few larger contracts to satisfy government regulations, business-to-consumer companies seeking to drive market awareness and penetration should consider focusing their supplier diversity efforts on developing a larger group of suppliers and smaller individual contracts in order to increase market penetration in diverse markets, drive social and economic benefits in targeted communities, and improve their corporate image.

Hackett's research also quantified the positive and negative impact that globalization is having on supplier diversity efforts. While nearly 80 percent of the companies studied were global businesses, over 90 percent tracked only supplier diversity spend with their U.S.-based suppliers.

Overall, Hackett believes that most diversity programs will eventually have to address the challenges involved in tracking non-U.S. diverse supplier spend and certification, and many will be forced to rethink their definition of diversity.

The SBA has announced the availability of funding to support economic development and job creation as part of its Regional Cluster Initiative (RCI). The RCI focuses on accelerating the growth of small businesses, including minority- and woman-owned firms. The SBA is accepting proposals from local and regional clusters for funding of up to $600,000 per cluster to support up to 15 projects across the country.

Regional clusters are networks of organizations and businesses, in a geographic area, that grow through increased collaboration, efficiency, and innovation. Proposals should be submitted by the cluster's coordinating entity. More information is available through the Federal Business Opportunities website, www.fedbizopps.gov.