HispanicBusiness

Hector V. Barreto Jr. is known in Los Angeles for his business advocacy and community interests, not as a bureaucrat.

The new administrator of the U.S. Small Business Administration has spent more than 10 years in business for himself, so he knows the time and money demands small-business owners face.

Barreto, 40, also saw his Mexican immigrant father build a successful restaurant business in Kansas City, Missouri, and also get involved in promoting small-business issues, including promotion of the U.S. Hispanic Chamber of Commerce.

With those experiences, he hopes to make the agency more user friendly for an estimated 25 million small businesses.

"I will be looking at how to make the process a little easier for small business," Barreto said. "We want to listen to the small-business community. We want to be open to new ideas."

He will be challenged by a smaller budget. This year the agency received an $857 million appropriation. President Bush's budget called for a $546 million budget. A final number has not been set, but business leaders expect it to be somewhere in between.

Erik King, owner of SignScapes in Phoenix, hopes the new administration will make small-business loans easier to get. His loan package took 45 days and approximately 100 hours of his time.

"The process is relatively complex, and parts of it are duplicated," King said. "It would have been nice if I didn't have as much paperwork to deal with. … That's four weeks I could have spent on sales."

Barreto's business background is seen as the key to changing the agency.

"I think it's critical that he is a self-made small-business man," said Bob McGee, president of Southwestern Business Financing Corp. "He grew his business by listening to what his customers need and want. … I think SBA needs to run by what small businesses need and want."

Barreto, who did not use SBA services for his business, said he will review all SBA programs and look for chances to streamline the loan process.

Phoenix businessman Ray Arvizu also points out that Barreto's understanding of the Hispanic community, especially the commercial sector, will be essential in reaching out to help those businesses.

In Phoenix alone, the number of Hispanic-owned companies grew 66 percent between 1992 and 1997, the most recent U.S. Census Bureau figures indicate.

"He'll have a refreshing look at the SBA program," said Arvizu, immediate past chairman of the U.S. Hispanic Chamber of Commerce.

Barreto has suspended operation of the insurance agency he has in Los Angeles to avoid any conflict of interest, an SBA spokesman said.