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SBDG Shareholder Letter from the CEO

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Dear SBDG Shareholders,

Small Business Development Group, Inc. is back to a Current Information Pink status on OTC Markets. The Company has a new website which is representative of the Company’s future plans and goals.

The Company is using its Soft Leverage Buy Out business model to acquire lower and middle market private companies bringing them under our holding company umbrella as subsidiaries. Acquisitions will be grouped into industry verticals which can increase value for all of the shareholders. Management has identified opportunities in the lower and middle markets, companies that are owned by baby boomers seeking to maximize their exit valuation.

SBDG is a small business development company that acquires private businesses with owners seeking transition or growth. The Company’s acquisition strategy is to target private seasoned companies with an identifiable track record of sales and profitability that supports its growth and ability to transition into a Registration on OTC, NASDAQ or NYSE via a Spinout when the company qualifies.

As a Pink Sheet filer SBDG can make investments and acquisitions without costly compliance in conducting audits of the initial transactions prior to the readiness of the transaction. The small and middle market companies have and will see their valuations decline in the current economic markets due to inflation and escalating taxes. For some transactions this will have debilitating impacts on business owners looking to sell the business that they have worked for years and even decades to build. Taxes alone at State and federal levels could reach 32 to 54 percent depending on location.

SBDG’s management believes that its M&A strategies coupled with seller estate planning can provide significant relief to private business owners on their exit strategy that are struggling with their company’s valuation.

SBDG has developed a timed exit planning strategy that includes a business development component where ownership of a privately held small to medium sized business becomes part of a publicly traded company. In most cases, there will be a step up in the value of the company for its owners. In some cases, the arbitrage can equal 50% to 200%, depending on industry, management, and financial controls. The program is designed to mitigate risk and to enhance estate planning for the purpose of improving the value proposition.

I encourage all of our shareholders to visit our new website, and to visit OTC Markets to follow our progress as we move forward with implementing SBDG’s business plan.

Thank you for your time and support.


/s/ Roy Y Salisbury

Roy Y Salisbury Chief Executive Officer

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