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Clarification on SBDC probe
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Posted on Feb 04 2000
As an employee of the U.S. Small Business Administration (SBA), I believe it is necessary to respond to the January 6, 2000 articled entitled “FBI probes SBDC,” written by Staff Reporter, Benhur C. Saladores.
The article discusses an investigation by the FBI into activities of Jack Peters, Director of the Pacific Islands Small Business Development Center Network (PISBDCN) based at the University of Guam. Mr. Peters was formerly director of the SBDC service center located at the Northern Marianas College. The PISBDCN recently terminated its contract with NMC to operate as an SBDC service center.
The SBDC Program is a cooperative effort among the SBA, the private sector, the educational community, and state and local governments. The program provides management and technical assistance to current and prospective small business owners. SBDC assistance is tailored to the local community and the needs of individual clients.
The SBDC Program consists of 57 “lead” centers with nearly 1,000 service centers. SBA has its contractual relationship with only the lead centers.
In the case of the PISBDCN, the lead center is at the University of Guam. SBA funds and has a contractual relationship with only that institution. The article claims the SBA terminated its contract with the Northern Marianas College and transferred it elsewhere on the island. The SBA has never had a contract with NMC so there is no contract to terminate.
In addition, the article says the “U.S. Office of Inspector General” referred the allegations against Mr. Peters to the FBI. I think it is important to point out that it was the U.S. Small Business Administration’s Office of Inspector General that referred the matter to the FBI.
Thank you for giving me the opportunity to clarify these matters. The SBA is pleased services will continue to be provided to the small business owners on the Northern Marianas.
Johnnie L. Albertson
Associate Administrator
Small Business Development Centers
