Counseling portion of the SBCN Operations Manual.pdf

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SBCN CMS Event Quick Report (See Appendix B-7) (Optional, Online) Note:

Optional report allows local college reviewers the ability to review attendance by individual and by attending/no show status.

Seminar Sign In Sheet, signed and dated by the instructor (See Appendix B-8) (Required)

SBCN CMS Signed Attendee Registration Forms (See Appendix B-9) (Required for on-site registrations)

SBCN CMS Generated Pre-Registration Forms (See Appendix B-10) (Optional, Online) Note: These forms allow local auditors the ability to review pre-registered individuals.

SBCN CMS Verification Screen of Attendance (See Appendix B-11) (Optional, Online) Note: This optional screenshot can be used by local auditors to determine the final status of an event and attendees.

7.4. Training Event/Seminar Survey

Each attendee is requested to complete an event survey that must be entered into the CMS. A template is found in the CMS at Customers>Surveys>Survey Templates. This standard template may be modified by the SBC to fit their individual needs but must include the basic template information.

7.5. Record Retention and Digital Storage of Seminar/Webinar File Contents

Seminar and webinar files should be retained based on the following criteria: local college's retention policy or scheduled SBC Program Review, for whichever of these two time periods is longer. Seminar/webinar files may be stored as digital files at the discretion of the local college provided they are maintained in a secure environment and access to confidential information is managed so that unauthorized viewing of documents is prohibited.

8. Counseling

Along with the core services of training events (See Section 5) and resource information/referral (See Section 10), one of the three services of the SBCN is individual client counseling. This service is offered free-of-charge and is confidential.

8.1. Guidelines Reference

The subject of Counseling is found in the SBCN Program Guidelines in Section II, Program Service Requirements, B. Counseling, Page 4, and is referenced here:

“B. Counseling

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Each SBC will provide one-on-one counseling sessions to assist prospective and existing small business owners. The initial counseling session with a small business client should screen for referral to other appropriate person(s) or agencies and/or follow-up counseling or training. Counseling will be provided by either the SBC College Director or a professional contracted with by the SBC (paid or unpaid). All counseling will be documented using the SBCN CMS policies, procedures, and documentation, and shall be conducted under the guidance and direction of the SBC College Director.

For SBC performance data accountability purposes, a client, counseling, and counseling session are defined in Section VI, Definitions. A SBCN client Request for Counseling (RFC) or electronic Request for Counseling (eRFC) form will be completed for each client.”

Additionally, the subject of counseling is found in the SBCN Program Guidelines in Section VI, Definitions, B. Counseling, and C. Initial Counseling Session, Page 8, and is referenced here:

“B. Counseling Services provided to an individual and/or business that is substantive in nature and requires assistance from a resource partner or SBCN personnel in the formation, management, financing, and/or operation of a small business enterprise AND is initially for no less than one half-hour and includes any counseling session thereafter regardless of time. Counseling is one-on-one, in person, on the telephone, or electronically and is specific to the client's individual needs, and requires a signed or electronic SBCN Request for Counseling form to document the initial counseling session. To allow for reporting of time invested in a client, preparatory time will be tracked separately from counseling time but attributed toward counseling time in data reporting. Travel time will not count toward counseling time but will be tracked separately.

C. Initial Counseling Session An initial counseling session must be at least 30 minutes in length in order to be reported. Follow-on counseling sessions may be of any length. However, it is not the intent of this definition to encourage a time limitation of 30 minutes, but rather to create standardization across all SBC programs. The SBCN recognizes the quality and impact of SBC counseling achieved through long-term relationships with clients and corresponding in-depth counseling. An Informational Inquiry/Session of substantive nature can be combined with a follow up session of substantive nature and converted to an Initial Counseling Session if the combined session lengths are at least 30 minutes providing that the client completes an eRequest for Counseling (eRFC) or Request for Counseling (RFC).”

8.2. SBCN Code of Conduct

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SBC Directors, Staff, and Guest Counselors shall maintain high professional standards of conduct, avoid conflicts of interest, and use good judgment in counseling clients. These individuals shall not accept a client(s) where the counselor(s) has/have an opportunity for personal, familial, financial gain, or SBC metrics would be derived from the contact.

Therefore, SBCs should not use local SBC resources (time or funds) to provide counseling for local SBC staff or near relatives/relations including but not limited to a spouse, significant other, children, parents, siblings, uncles, aunts, in-laws, or cousins. These individuals should be referred to another SBC for counseling during the information gathering process. SBC Directors shall avoid the appearance of a conflict of interest by avoiding situations where performance metrics would be impacted such as startups, jobs created or retained, counseling hours, where guest counselor dollars are expended, or where the SBC Director has an opportunity for financial gain.

8.3. Client Confidentiality

Individuals who seek SBC client counseling services have a right to expect that the information they share and the discussions they have with the business advisor will be held in strict confidence. As a matter of good business practices, any staff member of the SBC who has contact with a client or potential client would be expected to hold that relationship in confidence and not share details with anyone outside of the SBC staff. As a matter of legal record, the confidentiality of the client is protected by General Statute (G.S. 115D-78), which was enacted into law via Senate Bill 385 on June 16, 2011. Its underlying premise is that client records are not subject to public records law. See Appendix C.

8.4. Client Intake/Client Confidentiality

If the client completes an eRequest for Counseling (eRFC), the SBC is required to respond within three business days.

If the client completes a hard copy Request for Counseling (RFC), a client file should be created in the CMS. The client number should be written on the RFC which is then scanned and attached electronically to the initial counseling session.

The eRFC or RFC is the document that is required to formalize the client confidentiality relationship between the client and the SBC.

8.5. Conflict of Interest and Confidentiality Agreements

The subject document, Conflict of Interest and Confidentiality Agreement (Guest Counselor Agreement), is found in the CMS in the Internal Library at Customers>Library>Internal Library>Guest Counselor Agreements.

All SBC staff members who have access to the CMS are required to sign the Conflict of Interest and Confidentiality Agreement. This applies not just to business advisors, either paid or volunteer, but also to SBC staff members who may have access, such as an SBC Administrative Assistant. It is the responsibility of the SBC Director to ensure that each

32 | P a g e person with access to the CMS has signed the agreement. A digital copy of the form is retained on file at the local community college. A PDF of the completed form must be uploaded to the SBCN CMS at Customers>Library>Internal Library>Guest Counselors and filed by college name.

Additional information regarding Conflict of Interest and Confidentiality Agreements is found in the policy memorandum dated August 29, 2012, Updated Program Guidelines for Small Business Centers, Section VI. This memorandum is found in the CMS at Customers>Library>Internal Library>Statewide Resources>Administrative Resources>Guidelines and Policy:

The following policy has been adopted regarding counseling sessions involving guest counselors. Please note that the first two items are currently contained within the SBCN Program Guidelines (Section II, Page 4, Paragraph 2). Items 3 and 4 are effective July 1, 2012.

“Counseling will be provided by either the SBC Director or a professional contracted with by the SBC (paid or unpaid).

All counseling will be documented using SBCN Client Management System

(SBCN CMS) policies, procedures, and documentation, and shall be conducted under the guidance and direction of the SBC Director.

All guest counselors must individually sign the Conflict of Interest and Confidentiality Agreement (aka Guest Counselor agreement) annually.

Guest counselor agreements will be scanned and added to the SBCN CMS Internal Library. Originals shall be retained at the local college.”

8.6. Avoiding Client Creep

The SBCN desires to always ensure that its clients receive the best service possible to reach their entrepreneurial and small business dreams and goals. At the same time, since the colleges each have designated service areas and each college has limited resources, it is important to avoid client creep. Avoiding client creep will not only ensure the best use of financial resources, it helps to improve network efficiency and reduce duplication of effort.

Client creep occurs when an SBC counseling client requests and receives counseling from an SBC that is not the one connected with their business or home county address.

(Example: Client lives in Wake County but requests counseling in Wilson County). This can occur for many reasons and the best practice would be for the client to be referred to their home county for counseling.

Stated another way, to prevent client creep, SBC Clients should be counseled by the SBC that serves the community in which their business is located or in which they personally

33 | P a g e reside. However, there may be extenuating circumstances where, for example, the client wishes to work with a different SBC or where there is a SBC vacancy. When such situations occur, the circumstances should be documented in the CMS. When a client requests service from your SBC but they really need to be receiving service from a different SBC, an email should be sent to the client referring them to the appropriate SBC, with an additional follow-up email to the appropriate SBC Director. Again, the guiding principle is to always ensure the client is best served to fulfill their small business goals, while also doing the best job possible to respect the SBC/College service areas.

Process:

When an eRFC is received, the SBC will first review the address and the counseling request – this should always be the first step. Please be mindful that just because an eRFC comes from someone who has attended one of your seminars does not mean that individual is in your service area.

If the client provided a physical address outside of the SBC Service area, contact client via email or phone to determine business location. If business location is within the service area, document in CMS and move forward with counseling.

If the client’s business and physical address is located outside of the service area, determine why the request was made to your SBC instead of the SBC in the client’s service area.

Communicate to the client that they have an SBC in their service area. If the client requests to stay with the original SBC with which they made the request, that should be honored and documented in the CMS.

In the rare times that a client with impact is moved to another Center, that impact will follow the client. While this could affect performance funding, it is unlikely unless there were a significant number of clients with impact moved from a single Center.

While this is not likely, if a Center was concerned that it might occur, they should address the matter with the State Director.

Sample Email message or Phone message for the client:

Dear (first name), Thank you for your counseling request. As a part of the Small Business Center Network, we look forward to serving your business. I see that you are located in (City or County name). I want you to know that the (Name of Community College) SBC is located in your area and the staff there are uniquely qualified to serve your business due to their community expertise and contacts. They are aware of local programs, opportunities, and are connected to your local chambers of commerce. I would recommend that you start your counseling journey with them. Please let me know if there are extenuating circumstances that would make you feel that you would be better served at the (Name of Community College) SBC.

Please let me know if you would like an introduction to that SBC (provide SBC Director name, email, and phone number).

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9. Recording Client Counseling and Reporting Economic Impact

9.1 Guidelines Reference

The subject of client reporting and the CMS is found in Section III, SBC Reporting Requirements, B., Reporting Client Counseling and Economic Impact:

“Each SBC College Director will report small business client counseling and economic impact using the SBCN CMS. SBC College Directors shall accurately enter all client data for each month by the 5th of the following month. Counseling sessions are subject to review, and those files found not to be entered on a timely basis are subject to exclusion in state level reports and for performance allocation purposes. Exceptions may be authorized by the SBCN State Director. The SBC College Director will survey current year clients at least once per year. The SBCN State Director may recommend that SBC clients for the previous three years be surveyed on an annual basis to track their progress. . The method (mail, e-mail, telephone, etc) and timing (ongoing, semiannual, annual, etc.) of surveys are at the discretion of the SBC College Director. All economic impact data will be linked to a specific client and entered into the SBCN CMS.

Economic impact as a result of training events will be entered into the SBCN CMS as a miscellaneous session for the related individual.”

9.2 Electonic Request for Counseling (eRFC) and Request for Counseling

(RFC)

An eRFC is an electronic Request for Counseling and a RFC is a hard copy Request for Counseling.

9.3 Client Counseling Documentation

9.3.1. Recording Client Counseling and Use of Sessions

The client data recorded in the CMS is reported annually in order to demonstrate the outcomes of the SBCN and its economic impact on the State in terms of jobs created and businesses started. In addition, the data is used in the calculation of performance funding for each of the 58 Small Business Centers. It is, therefore, imperative that the Centers use consistent methods for recording its client activities.

The following guidelines for recording client sessions should be followed when entering such information into the CMS.

The CMS has two broad categories of “Sessions” which include: 1. Counseling Sessions; and 2. Non-Counseling Sessions. The following information provides

35 | P a g e brief guidance on the use of sessions. More information may be found in the Help tab within the CMS.

9.3.1.1. Counseling Sessions

Counseling sessions should only be used to record activities in which actual counseling discussion took place. An Initial session is used to record the first counseling session with the client. A Follow-On Session is used to record any subsequent or repeat counseling activities. Please note that these sessions should NOT be used to record a phone call or email to the client to set up an appointment.

The documentation placed in the case notes to describe the discussion should demonstrate that a substantive discussion took place and align with the amount of contact time recorded for the session.

9.3.1.2. Non-Counseling Sessions

Non-Counseling sessions should be used to record non-counseling activities performed in support of the client. There are five non-counseling session types, which include: 1. Appointment; 2. Information; 3. Success Story; 4. Miscellaneous;

and 5. Permit Guest Counselor.

Miscellaneous sessions are primarily used to record economic impact data for the client. While economic impact may also be recorded in a Follow-On or Close session, the miscellaneous session is one of the best ways to record this type of data.

More information about the use of both counseling and non-counseling sessions may be found within the Help tab in the CMS.

9.3.2. Clients with Multiple Businesses

SBCs should track businesses in the CMS, so if a client has two different companies, there would be two records in the CMS. If the client never started a business from the original counseling sessions, SBCs should document the situation in a new follow-on session and update the main customer page with the new/current business information.

9.3.2.1. Multiple Businesses Under a Single Entity

Some SBC clients may operate an umbrella or holding company, with a single LLC or Corporation having multiple, unique businesses operating with a Doing Business As (d/b/a) status. In this case, since the business is the customer, and not the individual, each unique business should have a separate record in the CMS. This approach facilitates tracking of the number of businesses counseled as well as economic impact for these businesses. The CMS record for each d/b/a should

36 | P a g e contain a signed Request for Counseling (paper or electronic), accurate Contact and Business Information on the main Customer tab, and counseling activity only for the business. If there are multiple individuals receiving counseling for the business, a single client record should house all counseling activity for the business, and the Categories/Related tab should link in all other individuals. Each individual linked in Categories/Related should have a Request for Counseling in their CMS record, and an Information Session with details on where to find the counseling documentation for the business should be included as well.

9.3.3. Prep Time

Prep time is client-related activity that is done outside of an actual counseling session in preparation for a client counseling session. Prep time can include but is not limited to time spent preparing materials for the client to review, conducting research, cash flow prep, business plan review, ProfitCents analysis work, and discussion with professional advisors like bankers who have referred the client/clients to the SBC. Time entering economic impact, reminder notes to clients, and other administrative functions are not considered prep time.

9.3.4. Missing Data Entry Items

When entering client information in the CMS, there may be instances in which the client does not have an email, telephone, or other contact information. There may also be instances in which a client chooses not to provide personally identifiable information, such as a date of birth or the last four digits of their Social Security Number. Rather than leaving the item blank, notate in the "notes" section at the bottom of the customer record the fact that the client did not provide the needed information. For instance, make a note that "client does not have email" or “client declined to provide SSN”. That way, the file reviewers will know that it was not an oversight by the Counselor but rather a lack of data provided by the client.

9.3.5. Business Description, Business Type, and NAICS Code

The Counselor should complete the "Business Description", "Business Type", and "NAICS" code for clients regardless of whether they are currently in business or not. The only exception would be in the case of a client who does not know what type of business they desire to start. In that case, provide an explanation in the customer notes, such as "client does not yet know what type business she/he desires to start". As an example, a client who is in the process of starting a restaurant but has not yet started the restaurant, the Counselor would still complete the three items of Business Description, Business Type and NAICS code.

9.3.6. Security of Client Files

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The SBCN CMS is a paperless system with all client files within the system.

However, if you do have hard copy client files, those files must be secured for confidentiality purposes. Security means in a desk, cabinet, etc., that is locked, preferably in an office that can also be locked. Simply having files in an office that can be locked is rarely sufficient unless the office is locked each time the occupant leaves. Client confidentiality is an extremely important client service as well as legal issue (See Section 1. G.S. 115D-78). Please review security processes for the confidentiality of files and improve where needed. SBCs are encouraged to maintain all client files/documents electronically and securely shred originals.

9.3.7. Duplicate Entry: Entering Client Counseling in Two Systems Memorandum dated August 29, 2012, Section VI, covers this issue and prohibits entering a counseling session by one individual into two different client management systems. If, however, the counseling session involves multiple counselors from different "systems", then each counselor can enter the session into his or her counseling system. For instance, if there is a counseling session where the client is meeting with a SBC Director, a Small Business and Technology Development Center (SBTDC) counselor, and a SCORE volunteer then the SBC Director would enter the session into the SBCN CMS, the SBTDC counselor would enter the session into his/her system, and the SCORE volunteer would enter it into the SCORE system. It is assumed that the three individuals bring different skills and contributions to the session, thus making it appropriate to enter into multiple systems. Regarding impact, if you "shared" in the counseling then you'll "share" in the impact, meaning that each system can enter the economic impact. It is acknowledged that this does create some duplication. However, this is the best alternative available to our networks. If there is only one counselor in the session, then the information could be entered into only one system. For example, if a SCORE counselor met a client at the SBC and the SBC Director was not in the session, then the session could only be entered into the SCORE system. Likewise, if an SBC Director was also a SCORE member and counseled a client by him/herself, then that session could only be entered into the SBCN CMS and not the SCORE system.

9.3.8. Group Counseling

SBCs do not conduct group counseling sessions as there is no way to provide client confidentiality in a group counseling setting. Initial informational sessions attended by multiple individuals who are exploring starting a business can be reported as a seminar. However, SBCs should ensure that the attendees are aware of the lack of confidentiality and should, when feasible, stop individuals from disclosing information that the SBC knows should remain confidential.

9.3.9. Reporting of Economic Impacts – Required Documentation

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All Economic Impact must be documented by at least one of the following methods:

Survey – electronic or paper Email from the client that acknowledges the Center’s contribution to economic impact Following a survey conducted via telephone, an email, requesting confirmation or updates, should be sent to the client stating the counselor’s understanding of the economic impact as learned during the telephone survey. A confirmation/reply email from the client is not required, but the email to the client and any responses should be attached to the client’s economic impact session in the CMS. In addition, the survey form should document the client’s responses and be scanned and uploaded to the CMS.

Third-party documentation is useful as supplementary information (e.g. NC Secretary of State, County Registrar of Deeds, newspaper articles, photos, etc.), but does not document verification of economic impact as a stand-alone document.

If a client does not agree with the cited level of investment or job impact, the case record is edited to be in agreement with the client.

The impact area definitions are as follows:

Job Definitions o Created – Total positive change (incremental value) in employment at a company as a result of SBC assistance. The owner of a start-up company counts as a job created. All jobs should be expressed as full-time equivalent positions with client attribution. A part-time job will be counted as a job. To clarify, if a business reports one full time job created and two part-time jobs created, a total of three jobs created will be reported.

o Supported – Total number of existing jobs at a client company that were sustained as a result of SBC assistance, as verified by the client.

o All impact jobs should be expressed as full-time equivalent positions.

o A spreadsheet that breaks out the full and part-time jobs for both the jobs created and the jobs retained categories must be kept on file at the SBC o Independent contractors are not considered employees and are not counted in jobs created and/or jobs retained. The distinction is made between an “employee”, an individual who has payroll taxes paid by the business and receives a W-2 form, vs an “independent contractor” who has no payroll taxes paid by the business and is provided a 1099 form.

Investment Definitions for Capital Formation Categories o Debt Financing – Any borrowed funds, capturing sources by institution or category, is encouraged. SBA or other guaranteed funds should be separately tracked from commercial lending or eligible SBA lenders.

o Owner Financing – Owner equity, collateral or personal investment.

o Equity Financing – Non-owner angel or venture capital

39 | P a g e o Other Financing – Grants, awards or gifts, etc.

In Business Definition – “In business” is defined as the client having completed at least two of the following actions:

1. formed a legal entity

2. received a loan

3. made sales

4. hired employees or contractors

5. incurred expenses

In forming a legal entity, the client will have completed the following registration(s), if applicable, with the local, state, and/or Federal government (e.g., DBA registration, NC Corporation formation, business license obtained, agency issued tax identifications received, etc.).

Not In Business Definition o Any client not meeting the In-Business definition will be defined as a nascent or start-up business client.

9.3.10 Reporting Economic Impact that Occurs Out-of-State

With respect to economic impact that occurs in another state as a result of SBCN training and counseling, it is important to note that SBCN Program Guidelines require SBCs to report economic impact but do not dictate where that impact occurs.

While the SBCN is funded by the North Carolina General Assembly and state funds are not used to solicit out-of-state clients or attendees, there are a number of scenarios in which an individual may receive services and then start a business in another state, including:

Services provided to military service members, who often receive training and counseling while serving in an active-duty role or transitioning military member status. As a military friendly state, the SBCN upholds the provision of service to military personnel and allows any economic impact derived from that service to be recorded and reported.

Services provided to individuals in neighboring states because of the geographical proximity to North Carolina and nearby community colleges.

Services provided to individuals in another state who are considering starting a business in North Carolina

Services provided via webinars/online training which allows more access by out-of-state individuals

When determining which SBC will record the impact, when more than one SBC may have provided counseling or training services, the SBC that is considered the

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“home center” would record the impact. Determining which center is the “home center” would be determined by:

The center providing the majority of counseling sessions and/or counseling hours, followed by

The center providing the majority of training support, followed by The center that first provided service to the business/individual

9.3.11. Reporting Government Contracts and Procurement as Economic

Impact Government contracts fall into a special “contracts” category because they do not represent new investment in the business. However, due to the priority placed upon procurement activities, the policy is to capture government (federal, state, local and subcontracts) contracts/procurements to be claimed directly as economic impact.

9.3.12. Optional Sales Reporting

Only record changes in sales if client attributes change to SBC assistance.

Record increases in sales for the current period over previous like period.

Report annually or no more than quarterly.

Record increases only as the SBC provides counseling to that client and the client verifies sales changes attributable to SBC services.

Sales increases are rolling incremental numbers. The new value is the most recently reported number with increments through the next reporting value.

Examples of SBC counseling that may result in an increase in sales:

Developed a marketing plan or advised on advertising.

Assisted an existing business with a business acquisition resulting in an increase in sales.

Obtained financing to expand existing business.

Export actions Barter

10. Resource Information/Library In addition to the provision of seminars and confidential client counseling, the third primary service SBCs expected to provide is a dedicated resource library/information area. The SBC Resource Center must be easily accessible for client use. This service is described in more detail throughout this section.

10.1. Guidelines Reference

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The following information is found in the February 2020 State Board Approved SBCN Guidelines, Section II, Program Service Requirements, C, Resource/Information Area, Page 4:

“C. Resource/Information Area:

Each SBC shall have a dedicated SBC Resource Center which provides easily accessible current Small Business information and resources including such items as on-line resources, software, publications, DVDs, and CDs for use by SBC clients and shall provide internet access for SBC clients separate from internet access for the SBC College Director. The SBC Resource Center can be co-located with the college library as long as the resources are physically separate from, thus not assimilated in, the college collection.

The internet access required within the section shall be located in such a manner that clients can work confidentially

11. Budget/SBC Funding Each year, the President of the North Carolina Community College System works with the State Board of Community Colleges, the NC Association of Community College Presidents and staff to determine budget priorities for the System and its 58 constituent institutions.

These budget priorities are communicated to the North Carolina General Assembly, who in turn, working through the legislative budget process, determines the final budget allocations for the Community College System. The SBCN was created in FY1983-1984 and was initially funded for eight Centers. Over time, the SBCN was expanded to all 58 community colleges.

Funding is tied to the fiscal year, which begins July 1 and ends on June 30 of any given year.

This section on Budget is intended to provide the necessary information and tools to help Colleges and Directors successfully manage their local SBCN budget allocations.

11.1. Guidelines Reference

The subject of SBC Funding is addressed in the SBCN Guidelines in Section V, SBC Funding. Since the entire section deals with funding, it will not be fully excerpted here, but can be reviewed in the Appendix or found in the Internal Library in the CMS. The first paragraph under Section V provides general information and is shown here:

“The SBCN program is funded by the North Carolina General Assembly and administered through the North Carolina Community College System. The expenditure

BEST PRACTICE: RESOURCE LIBRARY DOCUMENTS

Resources should be easily accessible and current (most less than two years old). Resource materials can include magazine subscriptions. Resources can be maintained electronically.