Bush nominates new SBA head

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(Fortune Small Business) -- President Bush has selected a new leader for the Small Business Administration: Santanu "Sandy" Baruah, who currently heads the Economic Development Administration at the Department of Commerce and has been a member of the Bush administration since 2001.

Baruah's nomination, announced Wednesday by the White House, comes three weeks after SBA administrator Steve Preston vacated the job for a new role as secretary of the Department of Housing and Urban Development. Jovita Carranza, SBA deputy administrator, is currently serving as acting administrator.

At the EDA, Baruah oversees grants for ventures that promise to create jobs and strengthen regional economies. The agency's investments totaled $277 million in its 2007 fiscal year.

Before joining the Commerce Department, Baruah spent seven years with the Performance Consulting Group, a management consulting firm based in Portland, Ore. Baruah's clients included Walt Disney World (DIS, Fortune 500), Intel (INTC, Fortune 500) and Citizens Bank.

Fostering entrepreneurship is one of the EDA's goals, and Baruah often hails the "entrepreneurial spirit" in his public remarks.

"While government can play an important role in the economy, it is the private sector - the great American entrepreneurs - that create jobs and economic opportunity," he said two years ago at a venture capital forum in Chico, Calif. "The Bush administration and EDA see entrepreneurship as the engine for America's economic growth, and innovation as the fuel for that engine."

Baruah's nomination will need to be confirmed by the Senate. Senator John Kerry (D-Mass.), chairman of the Senate Committee on Small Business and Entrepreneurship, struck a cautious tone in his remarks about Baruah's nomination.

"The SBA needs strong leadership to fill the shoes left by Steven Preston, and we'll review Sandy Baruah's record carefully to make sure that he is the right person for the job," Kerry said in a written statement. "For seven years the Bush administration has put Wall Street ahead of Main Street, and denied the SBA the funding and staff needed to serve our small businesses. The next administrator at the SBA must be ready to offer creative solutions for the current credit crunch, implement programs that will actually help women and minorities gain access to federal contracts and loans, and make sure that small firms have access to counseling and training to grow their businesses in this tough economic climate."

U.S. Chamber of Commerce CEO Tom Donohue enthusiastically endorsed Baruah's nomination and sent wishes for a speedy Senate confirmation.

"The President's quick action to nominate such a qualified leader to head the SBA illustrates his dedication to small businesses across the country," Donohue said in a prepared statement. said "Sandy's knowledge is deep and his dedication is strong."