The Small Business Administration recently announced the three local winners of the SBA's annual Small Business Person of the Year Award. Elizabeth Nolan, president of Natural Motion by Liz Inc. in Washington, was the District winner; Melvin A. Bilal, president of Howard Security Services Inc. in Baltimore, was the Maryland winner and William W. Moseley, president of Moseley-Henning Associates Inc. in Richmond, was the Virginia winner.

The three local area winners will compete with 50 other state winners and the Puerto Rico winner for the national Small Business Person of the Year award during Small Business Week, designated by President Reagan as May 8-14.

On the local level, winners are selected from nominations presented to the advisory councils of the SBA's 65 district offices. From those 54 winners, the National Small Business Advisory Council will select a national candidate. SBA Administrator James C. Sanders will submit the final nomination to President Reagan, who will announce the national winner at a White House ceremony during Small Business Week.

The criteria used by the SBA in selecting the winners included staying power, growth in number of employes, increase in sales or volume, improved financial position, product or service innovation, response to adversity, civic-mindedness and initiative in critical economic areas, such as employment, energy and environment.

Elizabeth Nolan, the Washington winner who was nominated by the Howard University Small Business Development Center, moved to this area in the early 1960s. She attended beauty school here and waitressed before becoming a partner of the Jefferson Beauty Parlor at 5332 Georgia Ave. NW in 1969. Nolan said she "saved her money" and in 1977 bought the building the Jefferson was located in and also bought out her partner. At that point, she changed the name of her business to Natural Motion by Liz. Today, she operates the original store and two other stores in Herndon and Rockville. Nolan says her business and income have tripled since she first began in 1977. Her three original employes are still with her, in addition to her present work force of 70 employes, including her husband, John Nolan. Nolan credits her staff with her success and says that she has only had two beauty operators leave her employ since she opened her business.

Nolan is a past vice president of the D.C. Cosmetology Board. She has been sponsoring fashion shows at area hotels for the past 15 years to raise funds for the Howard University Child Development Center. She plans to open a training school, Scanners Academy, at 16th and K streets NW, on July 1. The school will have a capacity for 200 students training for the beauty and hair industry.

Melvin A. Bilal, the Maryland state winner, was a law school student at the University of Pennsylvania when he first visited the new town of Columbia in 1971. He liked what he saw and moved there after graduation in 1972. He took a job as director of security with the Rouse Co. Inc., developers of Columbia. He left the Rouse Co. the next year to establish his own security firm, Howard Security Services Inc. of Baltimore. Rouse, willing to unload the burdens of an in-house security division, bought his services.

Bilal established his company with 10 employes and about $150. In addition to his security guard service, he has since created a training and life-saving program that has developed into the Howard Security Institute and Training Academy where other security forces can receive security and self-defense training. His company now offers a personal bodyguard service and alarm system design and installation. Howard Security now serves over 100 clients along the East Coast from the Baltimore headquarters and regional offices in New York City and Philadelphia. There is an affiliate office in Fullerton, Calif., directed by a former U.S. Secret Service agent offering executive protection and security and alarm system consulting. Howard Security now employs over 500 people and its projected sales for 1983 will be about $5 million.

William Ward Moseley, the Virginia state winner, established his architectural firm in Richmond as a sole proprietorship in 1969. He and a partner incorporated as Moseley-Henning Associates Inc. in 1972. The firm's gross income and business volume tripled in 1982 from the previous year. It now operates with 30 employes, up from four in 1972. Moseley said about 10 employes were added to the staff in the last year.

Moseley's firm is credited for its energy and solar conserving designs. The firm has received many awards from the Virginia Society of the American Institute of Architects, including a design and energy award in 1979 for the design of the W. W. Gordon Elementary School in Chesterfield County.

Through several active and passive solar features, the school saves 35 percent more energy than facilities of a similar size.

Moseley-Henning has also been commissioned to design central business district plans for the Virginia cities of Danville, Farmville and Covington.