UTSA’s SBDC network continues a 40-year track record helping Texas businesses thrive

MAX Underground Construction is one of several small businesses that has received support from UTSA's SBDC.

SEPTEMBER 30, 2024 — Maximiliano Salinas and his brother, Manuel Salinas, run a construction company with 72 employees, 16 pieces of heavy equipment, a 2,800-square-foot facility and a bonding capacity of $30 million. However, like any business, Corpus Christi-based MAX Underground Construction was once only a concept. It took hard work, expertise and strategic networking to scale the business to its current size.

MAX Underground Construction is one of over 32,000 small businesses that received support from UTSA’s Texas South-West Small Business Development Center (SBDC) Network in fiscal year 2023. Comprising 10 field centers and three specialty centers, the network delivers advising and training to small business owners across a region spanning 79 counties in South Texas. For over 40 years, the network has been helping business owners and entrepreneurs grow their enterprises and drive economic development in the South Texas Triangle.

For its clients, the network has fueled rapid growth that far outpaces that of their peers. In fiscal year 2023, clients saw a 22.3% growth in sales, while the average Texan business grew by 15.9%. Clients also increased their employee teams by 17.2%, while the average Texas business grew by only 5.8%. That increase in clients’ hiring generated 3,564 new jobs in Texas in 2023.

“It’s truly inspiring to contribute to the SBDC and small business development, and to witness that transformation.”

This expedited growth is enabled by a combination of one-on-one business advising, which is at no cost, and training workshops that deliver key skills and information needed to overcome common barriers to growth. The network aids businesses in clearing major hurdles such as developing a business plan, obtaining financing, exporting products and securing government contracts. For a business owner, cultivating these skills can determine whether a business survives, grows, or shutters its doors.

The Salinas family began collaborating with the SBDC in 2010. They received support in creating a three-year business plan, securing their first loan, and purchasing their first piece of heavy machinery. For them, it was a combination of services that helped them scale.

“It is difficult to name just one of the services,” said Maximiliano. “They have provided a variety of invaluable services and contacts, including on-site training, government contract opportunities and use of the plan room to print plans and specs for local projects.”

The new jobs created, combined with boosted economic activity, can have a transformative effect not only on business owners but also on their employees and surrounding communities.

“The network has advised 46,462 businesses over the past decade, which created 41,390 new jobs, retained 53,334 current jobs, and resulted in an economic impact of $9.6 billion through access to capital, increases in sales, contracts and export sales,” said Michael Gonzalez, associate state director of the Texas South-West SBDC Network.

Job retention is also a critical service, particularly during economic downturns. For example, the network supported MAX Underground Construction to obtain an Employee Retention Credit in 2020 and 2021, helping the company withstand the pressures of the pandemic.

Denise Lopez is among the employees whose jobs were secured during this period. Lopez, daughter of the president, decided to join the company in 2019 and became a project manager in 2022.

“I worked for AT&T for 20 years and I took a leap of faith to join the family business,” said Lopez. “Watching my dad and uncle grow from a small business to a great corporation is an overwhelming feeling. They began their journey with small jobs throughout the city and are now working multiple city projects in the surrounding area. All this could not be possible without the SBDC; they paved the way for us, and we ran with it.”

The impact on the economy on both state and federal levels is also considerable. For every $1.00 invested in the Texas South-West SBDC Network, a return of $6.42 was generated in tax revenue by businesses assisted by an SBDC advisor in 2023. The 10-year average ROI has been even higher, generating $7.48 per dollar invested.

“You begin to see a compounding effect,” said Albert Salgado, executive director of the Texas South-West SBDC Network. “This program generates tremendous revenue for Texas. When the government re-invests just a fraction of that revenue, we see even more growth and productivity the following year. At the same time, the revenue generated and the skills developed empower the next wave of business owners to enter the market, to thrive, and to grow the economy. It’s truly inspiring to contribute to the SBDC and small business development, and to witness that transformation.”

The Texas South-West SBDC Network is funded in part through the State of Texas and a cooperative agreement with the U.S. Small Business Administration (SBA) and accredited nationally by America’s SBDC. All U.S. states have an SBDC presence, but some, like Texas, have multiple networks to cover its expansive regions.

The Texas South-West SBDC network has serviced Central, South and West Texas since 1987. This area spans from the west in El Paso, eastward to Austin, and encompasses the entire Texas-Mexico border, down to Brownsville. The remainder of the state is served by three other SBDC networks.

The network is operated by the Valdez Institute for Economic Development, which includes 13 public service centers that contribute to economic development at state, national and international levels. Founded in 1979, the institute serves tens of thousands of clients and boosts the regional economy, reporting $2.6 billion in economic development activity in 2023.

UTSA supports and hosts the Valdez Institute for Economic Development to drive regional economic growth and innovation. This long-term commitment to prosperity in the region enables the Texas South-West SBDC Network to thrive, fostering small business success, creating jobs and enhancing economic resilience in local communities and across the state.

— Audrey Gray