[Congressional Record Volume 143, Number 82 (Thursday, June 12, 1997)]
[Senate]
[Pages S5596-S5601]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DOMENICI (for himself, Mr. Bond, Mr. Kerry, Ms. Snowe, Ms. 
        Landrieu, Mr. Kempthorne, Mr. Bumpers, Mr. Harkin, Mr. Kohl, 
        Mr. Lautenberg, Mr. Daschle, Mr. Levin, Ms. Mikulski, Mr. 
        Lieberman, Mr. Cleland, Mr. Wellstone, Ms. Moseley-Braun, Mrs. 
        Hutchison, Mr. Burns, Mrs. Boxer, Mr. Specter, Mr. Moynihan, 
        Mr. Santorum, and Mr. Bingaman):
  S. 888. A bill to amend the Small Business Act to assist the 
development of small business concerns owned and controlled by women, 
and for other purposes; to the Committee on Small Business.


                THE WOMEN'S BUSINESS CENTERS ACT OF 1997

  Mr. DOMENICI. Mr. President, I am pleased to introduce today a bill 
that strengthens this country's small business sector, and that is the 
Women's Business Centers Act of 1997. I am also extremely pleased to 
have the chairman of the Committee on Small Business, Senator Bond, 
join me on this bill as my principal cosponsor, along with the ranking 
Democrat from the Small Business Committee who is also an original 
cosponsor. I note the arrival on the floor of Senator Kerry from 
Massachusetts. He is the ranking member of the Committee on Small 
Business.
  There are a number of Senators in a very limited period of time who 
have joined us from both sides of the aisle. I ask unanimous consent 
that those Senators who are listed in my statement be original 
cosponsors, because they have indicated a desire to do that.
  I thank the ranking member from Massachusetts for his diligence. He 
has procured a number of cosponsors, and we have also. I believe from 
the committee itself we have overwhelming support. I would like to take 
a couple of minutes to explain what we are doing.
  First, let me acknowledge that in the U.S. House of Representatives, 
starting last year, Congresswoman Nancy Johnson took a lead in this 
matter and introduced a women's business bill. I introduced the 
companion bill in the Senate. By way of the recent history of this 
issue, we have been funding the women's business centers through 
appropriations. I take a great deal of pride in saying for the last few 
years, while the administration either did not fund this effort or 
reduced it in half, we funded it fully with the assistance of Chairman 
Bond, Senator Hutchison, and others, at $4 million a year. We are 
asking that this effort, which we will explain briefly, now be funded 
at $8 million a year.
  Mr. President, I say to my fellow Senators, it might come as a shock 
to many that the fastest growing part of America's small business is 
women's small business. As a matter of fact, 2 years ago, we had a 
startling statistic that women-owned businesses employed more people--
even then, 2 years ago--than all of the 500 major corporations in 
America. That means that there is a major business impact in America. 
Women are doing marvelously well by adding more women's ownership to 
the business sector. There is more diversification and more segments of 
the American population are becoming owners of businesses or have a 
real opportunity to do so.
  In my particular State, there exists an entity that helps women's 
small businesses expand, in some instances, get started. I am very 
proud of that organization, and, frankly, it is growing. One will note 
that our bill varies a little bit from Representative Johnson's

[[Page S5597]]

in that we don't want the funds under our bill to be restricted to only 
those 22 or so States who do not have centers, but rather with the 
discretion of the administrator, to also use the funds in those States 
to expand growing programs.
  In a very orderly and organized way, without a lot of overhead, 
women's business centers, by various names, are helping women who have 
an idea about a small business, providing them with technical 
assistance, in some instances to provide micro loans, and in all 
instances to provide the knowledge and wherewithal and planning that is 
necessary so that they start off on the right foot.
  I have had the luxury of visiting with many of the women who are 
being helped in our State by our women's business center. I have been 
startled. If I could share by way of anecdote with the Senate, if we 
had enough time, some of the exciting things women are doing in trying 
to set up their own businesses and how successful they are, it would 
take me a long, long time. But let me suggest, there is no lack of 
willingness to compete and take a risk, which is very, very important 
to being entrepreneurs, and that is not something that is solely in the 
province of men. Across America, women are succeeding in business with 
relish and gusto.
  There are many statistics and numbers that we could now talk about in 
terms of how we go about concluding that this is an important part of 
the private sector--this women's entrepreneurship in America, and the 
creation of new jobs in America. Suffice it to say that it is the 
fastest growing portion of the American small business group.
  Women are succeeding and they are not succeeding in any less numbers, 
less percentages of success than are men. So what we are encouraging is 
that every State has one of these centers, and it is modeled after 
successful ones across this country. In my case, we have the Women's 
Economic Self-Sufficiency Team, which has a corporate name of WESST 
corp. It is the only technical assistance group of this type in our 
State devoted to women's business needs. It is doing a marvelous job of 
helping hundreds of women find out whether their business idea has a 
chance of succeeding, giving them technical assistance, in some 
instances getting them loans through normal loan channels, and in some 
instances using some of the small moneys they get for startup loans.
  Funds for this program are small, but the women's business centers 
derive from a grand idea with a marvelous goal. You can't do much 
better. Senator Burns, who occupies the Chair, wants to be added as a 
cosponsor, and I so request.
  We are also very pleased the ranking member of the committee, Senator 
Kerry, is joining us in support of this measure, along with other 
Senators serving on the committee: Senators Kempthorne, Snowe, 
Landrieu, Bumpers, Harkin, Levin, Lieberman, and Wellstone. As well, we 
welcome and appreciate the support of other non-committee cosponsors: 
Senators Kay Bailey Hutchison, Moseley-Braun, Kohl, Lautenberg, 
Daschle, Mikulski, and Cleland.
  Mr. President, the Women's Business Centers Act of 1997 bill reflects 
our commitment for a stronger and more dynamic program for women-owned 
businesses. Supporting women's businesses is not just common sense, it 
makes economic sense.
  The National Foundation for Women Business Owners cites these 
statistics to illustrate the importance of women-owned businesses to 
our U.S. firms, and provide employment to 26 percent of U.S. workers. 
They contribute over $2.3 trillion in annual revenues to the U.S. 
economy. Since 1987, women-owned businesses have grown in number by 78 
percent. And, they have done so in nontraditional areas such as 
construction, wholesale trade, transportation, communications, and 
manufacturing. Forty percent of women business owners have been in 
business 9 years or longer.
  Given these phenomenal statistics, it is time we give more attention 
to this critical segment of our business community. Women-owned 
businesses are run by creative and professional entrepreneurs who 
employ millions of workers and deliver trillions of dollars into our 
communities. At the same time, these entrepreneurs are far too often 
overlooked and underestimated by our banking and financial communities, 
as well as by the Small Business Administration.
  I believe it is fair to say that a significant number, if not most, 
women entrepreneurs have achieved their goals and successes because 
they are disciplined and committed. We can probably say the same about 
men who have achieved their business objectives. The difference, 
however, is that we know there has been a disproportionate amount of 
training, technical assistance, procurement opportunities, and ready 
access to capital for male entrepreneurs compared to women.
  Despite these disparities, women business owners have achieved their 
monumental feats because of their business acumen, self-reliance, 
ingenuity, and dogged determination. Since it is projected that women 
will own 50 percent of all businesses by the year 2000, the time is now 
to assist these women entrepreneurs.
  Looking at the Small Business Administration's [SBA] record, we can 
congratulate them on their slowly but surely improvement in the 
percentage of loan guarantees to women borrowers. Within SBA's 7(a) and 
504 loan programs, the agency reports that it has tripled its number of 
loans to women borrowers from 3,588 in 1992 to 11,452 in 1996. That 
represents an increase in the dollar amount from $634 million in 1992 
to $1.6 billion in 1996. That is the pretty side of the picture.
  Turn the picture over, however, and these figures mean that women 
recipients constitute approximately one-fifth of the total loan 
clientele and receive approximately one-seventh of the loan guarantee 
funds. This is at a time when the SBA reports that over the last 
decade, ``new women-owned firms--one-third of all firms--have grown at 
twice the rate of men-owned businesses.'' I do not suggest this SBA 
picture is all bleak, but I do believe the record is less than optimal, 
and considerably more effort must be given to addressing women's 
business needs.
  This year we are committed to improving and enlarging the scope of 
the SBA's women's program.
  One of the most beneficial programs within the SBA is the Women's 
Business Centers Program, managed by the Office of Women's Business 
Ownership. I personally know the excellent record of these centers, of 
which there are 53 sites in 28 States.
  In my State of New Mexico, I have talked with the clients and toured 
their businesses. Thanks to the able leadership of the centers' 
personnel, these businesses are growing financially, employing new 
personnel, and creating new markets for their goods and services.
  In New Mexico, the Women's Economic Self-Sufficiency Team--WESST 
corp--is the only business and technical assistance organization 
specifically focused on the needs of women. Its mission is to 
facilitate the startup and growth of women- and minority-owned 
businesses.
  Its target market is low-income, unemployed, and underemployed women. 
Among its important accomplishments is its expansion to five additional 
sites, thereby providing much-needed assistance to both rural and urban 
women across our vast State. Since incorporating in 1988, WESST corp 
has facilitated the startup and growth of over 500 small businesses. 
This has created more than 750 jobs and businesses which have average 
annual gross receipts of $75,000. WESST corp has also established a 
low-interest revolving loan fund, with 75 percent of the loans extended 
to rural women and 65 percent to startups.
  Under the direction of the very able and creative Agnes Noonan, WESST 
corp is one of New Mexico's best business services. WESST corp is one 
of the 28 State organizations that participates in the SBA's Women's 
Business Centers Program. It is obvious that its contributions are 
critical to our State's economy.
  Between 1987 and 1996, U.S. census figures indicate that the number 
of New Mexico women-owned firms increased by 60 percent, employment 
increased by 138 percent, and sales grew by 154 percent. Women-owned 
firms in New Mexico employ nearly 115,000 people and generate nearly 
$11 billion in sales. Moreover, women-owned firms

[[Page S5598]]

account for 41 percent of all firms in New Mexico, provide employment 
for 35 percent of its workers, and generate 21 percent of its business 
sales.
  As Agnes Noonan says,

       Women's business centers across the United States play a 
     critical role in helping women develop and grow successful 
     small businesses. The acquisition of technical business 
     skills is obviously important. Equally important, however, is 
     the provision of long-term mentoring and support without 
     which many women would never make it beyond an initial 
     orientation session.

  It is important that Women's Business Centers, like WESST corp, 
continue to target their expertise to the thousands of potential and 
existing women entrepreneurs. These centers are able to leverage public 
and private resources to help their clients develop new businesses or 
expand existing ones. The centers' personnel are skilled professionals 
who give specialized assistance to women.
  For example, the Women's Business Development Center in Miami, FL, 
reports that its programs are:

     tailored to meet the specific needs of the community, i.e., 
     evening and weekend classes, counseling at business sites 
     and other non-traditional methods of providing 
     entrepreneurial training and technical assistance. Classes 
     are often held in Spanish and other languages. Many sites 
     provide child care, transportation and distance training 
     when necessary.

  I am 100 percent behind establishing business centers in States that 
do not have them. At the same time, based upon the extraordinary record 
of WESST corp in New Mexico, it is also equally important that an 
existing business center be allowed to expand its services into other 
geographical sites that will serve women entrepreneurs who would not, 
or could not, otherwise be served at the so-called flagship center. The 
primary business site has established its record of activities and 
services, and it is able to offer valuable expertise and guidance to 
the new center. Therefore, I believe very strongly that requests for 
replication of existing programs into new sites must also be given a 
fair and honest appraisal for financial assistance.
  This bill will strengthen the Women's Business Centers Program across 
the United States. The bill will allow the SBA program to extend its 
assistance to the individual State organizations from 3 years to 5 
years. This will enable the State centers to have a longer period of 
time to develop their private sector funding base.
  Additionally, we have modified the Federal to private matching 
requirements to ensure the centers have sufficient time to develop the 
one Federal to each non-Federal dollar match by the 4th year of 
activity. Most important, this bill authorizes up to $8 million for 
assisting existing centers, developing new State programs, or for 
replicating business center sites in other geographical areas. This is 
an increase in funding for the business centers' programs from the 
present, and modest, $4 million annual funding.
  Senator Bond and I, along with the other cosponsors of the bill, 
strongly support expansion of the SBA's Women's Business Centers 
Program. We know how instrumental these programs are in helping women 
entrepreneurs, and how very critical these businesses are to families, 
communities, and the overall economic well-being of our States. We urge 
other Members of the Senate to join us in support of this small but 
powerful program.
  I yield the floor now for Senator Bond who does a marvelous job with 
the Small Business Committee, has made it a viable active entity, and I 
thank him for his support.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 888

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Women's Business Centers Act 
     of 1997''.

     SEC. 2, WOMEN'S BUSINESS TRAINING CENTERS.

       (a) In General.--Section 29 of the Small Business Act (15 
     U.S.C. 656) is amended to read as follows:

     ``SEC. 29. WOMEN'S BUSINESS TRAINING CENTERS.

       ``(a) Financial Assistance.--The Administration may provide 
     financial assistance to private organizations to conduct 5-
     year projects for the benefit of small business concerns 
     owned and controlled by women. The projects shall provide--
       ``(1) financial assistance, including training and 
     counseling in how to apply for and secure business credit and 
     investment capital, preparing and presenting financial 
     statements, and managing cash flow and other financial 
     operations of a business concern;
       ``(2) management assistance, including training and 
     counseling in how to plan, organize, staff, direct and 
     control each major activity and function of a small business 
     concern; and
       ``(3) marketing assistance, including training and 
     counseling in identifying and segmenting domestic and 
     international market opportunities, preparing and executing 
     marketing plans, developing pricing strategies, locating 
     contract opportunities, negotiating contracts, and utilizing 
     varying public relations and advertising techniques.
       ``(b) Conditions.--
       ``(1) Non-federal contributions.--As a condition of 
     receiving financial assistance authorized by this section, 
     the recipient organization shall agree to obtain, after its 
     application has been approved and notice of award has been 
     issued, cash contributions from non-Federal sources as 
     follows:
       ``(A) in the first, second, and third years, 1 non-Federal 
     dollar for each 2 Federal dollars;
       ``(B) in the fourth year, 1 non-Federal dollar for each 
     Federal dollar; and
       ``(C) in the fifth year, 2 non-Federal dollars for each 
     Federal dollar.
       ``(2) Form of non-federal contributions.--One-half of the 
     non-Federal matching assistance under this section may be in 
     the form of in-kind contributions which are budget line items 
     only, including office equipment and office space.
       ``(3) Form of federal contributions.--The Federal financial 
     assistance authorized pursuant to this section may be made by 
     grant, contract, or cooperative agreement and may contain 
     such provision, as necessary, to provide for payments in lump 
     sum or installments, and in advance or by way of 
     reimbursement. The Administration may disburse up to 25 
     percent of each year's Federal share awarded to a recipient 
     organization after notice of the award has been issued and 
     before the non-Federal sector matching funds are obtained.
       ``(4) Failure to obtain private funding. If any recipient 
     of assistance fails to obtain the required non-Federal 
     contribution during any project--
       ``(A) it shall not be eligible thereafter for advance 
     disbursements pursuant to paragraph (3) during the remainder 
     of that project, or for any other project for which it is or 
     may be funded by the Administration; and
       ``(B) prior to approving assistance to such organization 
     for any other projects, the Administration shall specifically 
     determine whether the Administration believes that the 
     recipient will be able to obtain the requisite non-Federal 
     funding and enter a written finding setting forth the reasons 
     for making such determination.
       ``(c) Submission of 5-Year Plan.--Each applicant 
     organization for assistance under this section initially 
     shall submit a 5-year plan to the Administration on proposed 
     fundraising and training activities, and a recipient 
     organization may receive financial assistance under this 
     program for a maximum of 5 years per women's business 
     center site.
       ``(d) Evaluation of Applicants.--
       ``(1) In general.--The Administration shall evaluate and 
     rank applicants in accordance with predetermined selection 
     criteria that shall be stated in terms of relative 
     importance. Such criteria and their relative importance shall 
     be made publicly available and stated in each solicitation 
     for applications made by the Administration.
       ``(2) Criteria.--The selection criteria referred to in 
     paragraph (1) shall include--
       ``(A) the experience of the applicant in conducting 
     programs or on-going efforts designed to impart or upgrade 
     the business skills of women business owners or potential 
     owners;
       ``(B) the present ability of the applicant to commence a 
     project within a minimum amount of time; and
       ``(C) the ability of the applicant to provide training and 
     services to a representative number of women who are both 
     socially and economically disadvantaged.
       ``(e) Establishment of Office.--There is established within 
     the Administration the Office of Women's Business Ownership, 
     which shall be responsible for the administration of the 
     Administration's programs for the development of women's 
     business enterprises, as such term is defined in section 408 
     of the Women's Business Ownership Act of 1988. The Office of 
     Women's Business Ownership shall be administered by an 
     Assistant Administrator, who shall be appointed by the 
     Administrator.
       ``(f) Definitions.--For purposes of this section--
       ``(1) the term `small business concern owned and controlled 
     by women', either start-up or existing, includes any small 
     business concern--
       ``(A) that is not less than 51 percent owned by one or more 
     women; and
       ``(B) the management and daily business operations of which 
     are controlled by one or more women; and
       ``(2) the term `women's business center site' means one or 
     more women's business centers established in conjunction with 
     another women's business center in another location within a 
     State or region--

[[Page S5599]]

       ``(A) that reaches a distinct population that would 
     otherwise not be served;
       ``(B) whose services are targeted to women;
       ``(C) whose scope, function, and activities are similar to 
     those of the primary women's business center in conjunction 
     with which it was established.
       ``(g) Reports to Congress.--
       ``(1) In general.--The Administration shall prepare and 
     transmit a biennial report to the Committee on Small Business 
     of the House of Representatives and the Committee on Small 
     Business of the Senate on the effectiveness of all projects 
     conducted under the authority of this section.
       ``(2) Contents.--The reports required by paragraph (1) 
     shall provide information concerning--
       ``(A) the number of individuals receiving assistance;
       ``(B) the number of start-up business concerns formed;
       ``(C) the gross receipts of assisted concerns;
       ``(D) increases or decreases in profits of assisted 
     concerns; and
       ``(E) the employment increases or decreases of assisted 
     concerns.
       ``(h) Authorization of Appropriations.--There is authorized 
     to be appropriated $8,000,000 per year to carry out the 
     projects authorized by this section. Notwithstanding any 
     other provision of law, the Administration may use such 
     expedited acquisition methods as it deems appropriate to 
     achieve the purposes of this section, except that it shall 
     ensure that all eligible sources are provided a reasonable 
     opportunity to submit proposals.''.
       (b) Applicability.--Any organization conducting a 3-year 
     project under section 29 of the Small Business Act (15 U.S.C. 
     656) on the day before the effective date of this Act may 
     extend such project to 5 years and receive financial 
     assistance according to section 29(b) of the Small Business 
     Act, as amended by this Act, and subject to procedures 
     established by the Administrator in coordination with the 
     Office of Women's Business Ownership established by this Act.
  Mr. BOND addressed the Chair.
  The PRESIDING OFFICER. The Senator from Missouri.
  Mr. BOND. Mr. President, it is with great pleasure that I rise today 
to join my distinguished colleague, Senator Domenici, in introducing 
the Women's Business Centers Act of 1997. I appreciate the kind words, 
but Senator Domenici has long been the leading proponent of women-owned 
businesses. He has worked hard to secure the additional funding for the 
centers. I am delighted to work with him on the bill.
  Also I am very pleased that my ranking member on the Small Business 
Committee, Senator Kerry, and many of our colleagues are working 
together with Senator Domenici and us as original cosponsors of the 
bill.
  I think once again this is an opportunity for Congress to demonstrate 
its strong support for effective programs serving current and future 
women entrepreneurs. It was just 1 year ago that many of my colleagues 
will remember that the administration sought to zero out the budget for 
women's business demonstration sites, and Congress stepped in to ensure 
full funding. Now we are reaching for new heights--making the program 
an ongoing effort to fund women's business centers through 5-year 
grants.
  The Committee on Small Business began its work in this session of 
Congress with the cooperation of my ranking member at a hearing on 
women-owned and home-based businesses. I will talk more about that in 
just a few moments. But the hearing we held then and others has 
provided the committee with extensive testimony and letters of 
endorsement on the important economic contribution being made by women 
entrepreneurs and the role played by women business centers. With 
nearly 8 million firms owned by women--a third of all firms--and 18.5 
million people are employed by women-owned firms, which is 1 of 4 
working men and women in the U.S., the contribution of women-owned 
businesses to the economy, which includes nearly $2.3 trillion in 
sales, deserves recognition and encouragement.
  In my home State of Missouri, there are approximately 120,000 women-
owned businesses. And, in 1997, the recipient of the Avon Women of 
Enterprise Award is Georgia Buchanan, president and CEO of All Pro 
Construction in Grandview, MO. In 1995, Georgia's company was also 
recognized by the SBA as the National Minority Construction Firm of the 
Year.
  Last year, Missouri's entrepreneurs were recognized as well when 
Phyllis Hannan, owner of Laser Mark It and Laser Light Technologies, 
was named SBA's National Small Businessperson of the Year.
  We have other women business leaders, including Carol Jones, of 
Springfield, who operates a large and well-respected realty company, in 
addition to her civic work and service on the Federal Home Loan Bank 
Board, and Stella Olson, who is serving as a member of the Small 
Business Fairness Board for SBA region 7 and is the owner of STAT 
Enterprises, Inc., a transcription company.
  These women are all local success stories taking an active role in 
expanding their own businesses with management financing and market 
training necessary for its success.
  The Women's Business Centers Act of 1997 recognizes the important 
contributions made by the 53 women's business centers located in 28 
States. The bill increases the level of funding authorized for 
establishing additional women's business centers to $8 million per year 
for 3 years, double when compared to the current authorization of $4 
million per year. The Clinton administration's budget request for 
fiscal year 1998 is $4 million. Significantly, the additional funding 
is intended to ensure that women's business centers exist in all 50 
States.
  Other important provisions of this bill include allowing Centers 
receiving funds on the day prior to enactment to apply to extend their 
eligibility for funding for 2 additional years. Also, for all women's 
business centers receiving funds under this bill, the private sector 
match is structured to facilitate a smoother transition to self-
sufficiency. The program is designed to provide seed money for women's 
business centers that can then flourish with the financial support of 
the local community. Training and services are to be tailored to the 
local community, and the grantees running the centers must have the 
requisite experience and commitment to deliver the services suited to 
women in the area.
  The introduction of this bill coincides with the work of the 
Committee on Small Business to reauthorize the programs of the Small 
Business Administration, the SBA. The committee has supported the 
creation and expansion of business development centers dedicated to the 
unique needs of women who are either current or potential business 
owners. The women's business centers created under this bill will 
provide the tried and true ongoing training and assistance, offered by 
the current demonstration sites, to ensure that their clients have the 
skills and know-how to build and maintain successful businesses.
  This is a win-win bill. It provides women owning businesses or those 
women preparing to start new small businesses with the tools necessary 
to support their transition and the challenges faced when trying to 
expand.
  I look forward to working with my colleagues to advance this bill as 
part of the Small Business Reauthorization Act of 1997. The concepts 
endorsed today will be incorporated with other reforms so that the 
services delivered by SBA and its numerous resource partners are 
beneficial to men and women alike. The committee has important work to 
do in this regard, and we appreciate Senator Domenici and 
Representative Johnson's efforts in this regard.
  Mr. DOMENICI. Mr. President, I have sent the bill to the desk for 
appropriate referral, but I ask unanimous consent that it be held at 
the desk before being referred for the remainder of the day in case 
others want to cosponsor it. They can be original cosponsors.
  The PRESIDING OFFICER. Without objection, it will be held at the 
desk.
  Mr. DOMENICI. Mr. President, whatever time I have remaining --I do 
not believe Senator Bond needs any additional time--I yield to Senator 
Kerry, and he can control it with other Members. I think there is 
adequate time for others who need it, but I yield whatever time I have 
to Senator Kerry.
  The PRESIDING OFFICER. The Senator from Massachusetts is recognized, 
and the Chair informs him he has 12 minutes.
  Mr. KERRY. I thank the Senator from New Mexico. I want to thank the 
distinguished Senator for his leadership on this issue and also the 
Senator from Missouri, the chairman of the Small Business Committee. I 
am delighted to join with both of them. I think this will have an 
enormous, positive impact, and their leadership is greatly appreciated.
  I am pleased to stand in support as we introduce the Women's Business

[[Page S5600]]

Centers Act of 1997. Nine years ago, when we first established a 
demonstration program for helping women-owned businesses attain capital 
and assistance in business development, a lot of people had some doubts 
about it. The legislation brought together the SBA and independent 
organizations in order to deliver assistance to women-owned businesses.
  Nine years ago, Mr. President, many people in the country were 
skeptical about the need for women-owned business assistance. There was 
a kind of perception problem with respect to whether or not it was 
needed and whether or not a lot of women in the country were going to 
take advantage of it and, in some cases, doubts even by some about 
whether or not they could. Everything in the years since then has 
destroyed the stereotypes. It changed attitudes and has proven that the 
people who believed in this effort were correct.
  The program has matured since its creation. And, to date, nearly 
50,000 American women have been served by 54 sites in 28 States and the 
District of Columbia.
  The bill that we introduce today is really only underscoring a small 
part of the many contributions that women make to the economy of this 
country. One of the reasons that we are currently enjoying such a 
significant economic boom is because of the contributions in the last 
few years from women-owned entrepreneurs.
  The Committee on Small Business is particularly pleased to champion 
this program. All of my Democratic colleagues from the Small Business 
Committee--Senators Bumpers, Levin, Harkin, Lieberman, Wellstone, 
Cleland, and Landrieu--have joined us in sponsoring this bill which 
will make the program permanent.
  The program is operated by SBA's Women's Business Ownership Office, 
which also would become permanent under the legislation. With the SBA's 
help, we have begun to tap the remarkable resource of women-owned 
businesses that has been proven to exist over the course of the last 
years. I know that many knew it always existed, but this pilot project 
has really given the evidence greater weight than it has ever had 
before. And I think this should pass overwhelmingly.
  Mr. President, women-owned businesses have been a critical component 
of the remarkable growth spurt we are enjoying in the country. 
According to the Census Bureau, women-owned businesses represent one-
third of all U.S. companies, and they annually contribute more than 
$1.5 trillion in sales to the U.S. economy. The National Federation of 
Women Business Owners and Dun & Bradstreet reported that 7.7 million 
women-owned businesses employ more people than the Fortune 500 
companies. So we must provide a strong policy that allows these women 
to meet their greatest potential and allow this country to benefit from 
the full measure of their endeavors.
  We know that women entrepreneurs are breaking records. Women-owned 
sole proprietorships have a startup rate twice that of male-owned 
businesses. Between 1987 and 1992, the number of women-owned businesses 
increased by 43 percent, while businesses overall only grew by 26 
percent. During the same time, employment by women-owned firms grew 100 
percent. Particularly notable, women-owned companies with 100 or more 
workers increased employment by 158 percent, more than double the rate 
for all U.S. firms of similar size.
  This country needs to preserve and to foster that special 
entrepreneurial spirit. And the Women's Business Centers Act is a great 
way to do that.
  In Massachusetts, the 147,000 women-owned businesses represent over 
one-third of all the companies in our State. And through the SBA's 
women demonstration program--the program which this bill would make 
permanent--the Center for Women & Enterprise, Inc., was established in 
Boston in 1995. In just 2 years, the center has served over 1,000 women 
business owners, 40 percent of which are minorities.

  The center offers scholarships for low-income women and provides 
courses, workshops, and one-on-one counseling. One hundred cities and 
towns in eastern Massachusetts are benefiting from the work of the 
center. I want to see that success continue. We can do that, and we can 
replicate it in State after State by making the women's business 
centers and the Women's Business Ownership Office permanent assets of 
the SBA programs.
  In addition to counseling, women business owners need access to 
capital. Women are vital players in business, and yet their access to 
capital for funding business enterprise has been limited, and it is 
still limited. The SBA is trying to meet that demand by increasing 
access to capital.
  From 1992 until 1995, the number of SBA guaranteed loans going to 
women quadrupled. They received $3.8 billion in SBA guaranteed loans 
during that period of time. And in fiscal year 1996, women-owned 
businesses received nearly $2 billion in loans from SBA guarantees.
  So access to capital is beginning to improve for women business 
owners, but we need to guarantee that we support programs that continue 
that trend.
  Last month, I helped kick off a national initiative undertaken by the 
SBA's Women's Business Ownership Office, the National Women's Business 
Council, and the Federal Reserve Bank in Boston, to convene workshops 
throughout the United States. These meetings bring together women 
business owners, lenders, and policymakers to discuss how to expand 
capital markets to meet the increasing demand of women-owned 
businesses.
  With input from the women's community, I have concluded that this 
issue is one that is going to be addressed at different levels. We need 
more micro-loans for startup businesses. We need more business 
development and technical assistance, more loan package counseling, and 
more access to venture and angel capital sources.
  This program is one key way to maximize women-owned businesses and to 
wisely use Government resources to boost the private sector's success.
  I join with Senator Domenici and Senator Bond in urging our 
colleagues to support the Women's Business Centers Act of 1997. It will 
provide $8 million in funding that will be used to provide matching 
grants for women's centers, and the bill will make the program and the 
Women's Business Ownership Office a permanent part of the important 
work that the SBA is doing to guarantee opportunity for all of those 
who wish to create jobs in this country.
  We hope to establish sites in every State to serve women 
entrepreneurs with the passage of this act. And I hope that our 
colleagues will overwhelmingly support it.
  Mr. President, I ask unanimous consent that Senator Specter and 
Senator Boxer also be added as cosponsors.
  Mr. President, I reserve the balance of time for other Senators 
wishing to speak on this bill.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. SPECTER. Mr. President, I have sought recognition to announce my 
cosponsorship of the Domenici-Bond Women's Business Centers Act of 
1997, which will reauthorize this valuable program administered by the 
Small Business Administration's, the SBA's, Office of Women's Business 
Ownership.
  Women-owned businesses are a major driving force for America's 
economy. As of 1996, there were nearly 8 million women-owned businesses 
nationwide, employing more than 18.5 million people and generating 
close to $2.3 trillion in sales. According to the National Foundation 
for Women Business Owners, women-owned businesses are growing faster 
than the overall economy in each of the top 50 metropolitan areas in 
the United States, including Philadelphia and Pittsburgh. In a study 
released in March 1997, the foundation reported that as of 1996, 
Philadelphia's 127,100 women-owned enterprises employed 448,500 people 
and generated over $56 billion in sales, and Pittsburgh's 54,800 women-
owned enterprises employed 141,800 people and generated over $17 
billion in sales. These numbers are truly impressive and highlight the 
significant impact of women in business on Pennsylvania's economy.
  Established through the Women's Business Ownership Act of 1988, the 
women's business centers have been vital in providing services and 
programs that support and accelerate women's business ownership. My 
constituents are fortunate to be served by the Women's Business 
Development Center, located in Philadelphia. Since

[[Page S5601]]

its formation in July 1995, the center has provided information, 
business assessment, training, and counseling sessions to over 3,000 
prospective, emerging, and established women business owners. It is 
critical to reauthorize the activities of these centers to ensure that 
women-owned businesses have the resources necessary to prosper and 
grow.
  Specifically, the Women's Business Centers Act of 1997 would double 
the authorized appropriation for the women's business centers to $8 
million, authorize 5 years of project funding for new centers, extend 
funding for existing centers for an additional 2 years, and modify the 
Federal funding match requirements to facilitate self-sufficiency of 
the centers.
  This legislation complements my efforts on behalf of minority and 
women-owned business enterprises. On April 23, 1997, I reintroduced the 
Minority and Women Capital Formation Act, S. 635, which provides 
targeted tax incentives for investors to invest equity capital in 
minority and women-owned small businesses, as well as venture capital 
funds dedicated to investing in minority and/or women-owned businesses.
  I also worked to secure a $500,000 grant through the Small Business 
Administration in fiscal year 1997 to support the activities of the 
National Education Center for Women in Business, located at Seton Hill 
College in Greensburg, PA. The center promotes women's business 
ownership by conducting collaborative research, providing educational 
programs and curriculum development, and serving as an informational 
clearinghouse for women entrepreneurs.
  In conclusion, Mr. President, I urge my colleagues to support swift 
adoption of the Women's Business Centers Act of 1997 so that we can 
meet the needs of America's emerging women business owners, which are 
critical to the economic health of our Nation.
  Mr. WELLSTONE. Mr. President, I am very pleased to join my colleagues 
today as an original cosponsor of the Women's Business Centers Act of 
1997. I thank the chairman of the Small Business Committee, Senator 
Bond, as well as Senators Domenici and Kerry, for their leadership on 
this issue.
  As a member of the Small Business Committee, I have followed the 
success of the women's business demonstration sites--two of which are 
in Minnesota. I would like to note the effectiveness and good work of 
those two organizations: Women in New Development, or WIND, of Bemidji, 
MI, and the Women's Business Center, which is operated in association 
with the White Earth Reservation Tribal Council in Mahnomen, MI.
  This program, and these centers, fill a crucial need in many 
communities across the country. They deliver needed technical 
assistance, and they ultimately help provide tremendous economic 
benefits.
  I recently received a letter from Mary Turner, director of the White 
Earth center. She pointed out that her center and others operated 
through the program are committed to delivering services aimed at 
promoting self-sufficiency, and which are ``as diverse as the women we 
serve--women of color, women on public assistance moving on to self-
employment, rural and urban women, and women starting home-based 
businesses.''
  Mr. President, the bill will reauthorize the women's demonstration 
sites, increasing the program's annual funding and authorizing 
demonstration sites to receive funding for 5 years rather than the 
current 3 years. I look forward to working with the chairman and other 
members of our committee to include this measure as part of our broader 
reauthorization of SBA programs.
                                 ______