[Congressional Record Volume 144, Number 75 (Thursday, June 11, 1998)]
[Senate]
[Pages S6181-S6183]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CLELAND (for himself, Mr. Kerry, Mr. Jeffords, and Mr. 
        Lieberman):
  S. 2157. A bill to amend the Small Business Act to increase the 
authorized funding level for women's business centers; to the Committee 
on Small Business.


small business administration women's business center authorization act

  Mr. KERRY. Mr. President, I am delighted to join the Senator from 
Georgia, Senator Cleland, in introducing legislation with him to expand 
the authorized level of the Small Business Administration's Women's 
Business Centers. I appreciate the leadership of the Senator from 
Georgia on this issue.
  We must provide and over the last few years have provided strong 
support to help women business owners meet their greatest potential. I 
am happy to say this bill does just that. The additional funding that 
would be authorized in the bill will ensure that the SBA is going to 
achieve the goal of establishing the Women's Business Center in every 
single State by the year 1999. It will also be used to expand the 
existing very successful Women's Business Centers in the currently 
underserved areas of their States.
  Just 10 years ago Congress established a demonstration program to 
help women-owned businesses gain access to capital and assistance, 
technical assistance, in business development. This program has proven 
to be a really remarkable success. It has served nearly 50,000 American 
women, business owners, through 54 sites in 28 States and the District 
of Columbia.
  Women-owned businesses have made extraordinary gains over the past 
decade, and everyone in America is sharing the economic advantage that 
has resulted from their endeavors. Current calculations by the Small 
Business Administration indicate that women now own one-third of all 
U.S. firms--more than 8 million businesses. Women-owned businesses 
employ one out of every five U.S. workers, a total of 18.5 million 
employees, and more people than the Fortune 500 companies. Each year, 
women-owned businesses now

[[Page S6182]]

contribute more than $2.38 trillion into the national economy.
  In Massachusetts, where 147,000 women-owned businesses account for 
over one-third of all our companies, the Center for Women and Business 
Enterprise has worked to empower women in becoming economically self-
sufficient through entrepreneurship. The center provides in-depth 
courses, workshops, one-on-one counseling, and access to financing for 
women.
  Unfortunately, notwithstanding this extraordinary record of women-
owned business, credit has always been something that has been more 
difficult for women because of credit standards, and frankly some 
stereotyping that historically has taken place.
  Since its inception in 1995, my State's Women's Business Center has 
served more than 1,000 women business owners, 40 percent of whom are 
minorities. One hundred cities and towns in eastern Massachusetts are 
benefiting from the programs and the activities that are available at 
the center.
  I will share a couple of real stories of how this has worked and what 
it has done. Renata Matsson came to the Center for Women and Enterprise 
in October 1995 after she had developed a medical device to assist 
people suffering from chronic eye problems. But Renata didn't know how 
to transform her invention to a product in a small business. After 
completing an 11-week class which taught her ``the language of 
business,'' she developed a detailed business plan and applied for a 
grant from the Small Business Administration's Small Business 
Innovation Research Program through the National Institutes of Health. 
She was recently awarded a grant of $100,000. Today she is using that 
grant to commercialize her technology and start her own small business.
  Another example: 16 years ago, Nancy Engel was a young mother on 
welfare dreaming of giving her daughter the things that she never had--
a home, financial security, and a college education. Nancy took $30 
from her last welfare check and bought spices, which she then 
repackaged and sold at a flea market. She earned $200 from that 
investment of her $30 from her check. She then used those proceeds to 
develop a small business called the Sunny Window. In 1996, she enrolled 
in the Center for Women and Enterprise's business planning course. 
Since she completed the course, Sunny Window has grown and now 
generates $250,000 in annual revenues selling spices, dried flower 
arrangements and soaps throughout the world. It now employs seven women 
with what Nancy calls ``part-time mothers' hours.'' Nancy was recently 
named the U.S. Small Business Administration's first Welfare-to-Work 
Entrepreneur of the Year for Massachusetts. Soon she will be 
volunteering for the Center for Women and Enterprise, assisting other 
women entrepreneurs who are trying to make the very difficult 
transition from public assistance to running their own small business.
  These are just two of a myriad of stories, wonderful stories, of 
success as a result of our efforts at the Federal level to assist 
women-owned businesses. These success stories are, however, juxtaposed 
to the reality that far too many women still face unnecessary obstacles 
to developing their own businesses, ranging from the lack of access to 
capital to a lack of access to government contracts, to a lack of 
access to business education or even to training opportunities, not to 
mention some of the fundamental resistance that has, unfortunately, 
existed with respect to women's efforts to try to engage in 
entrepreneurial activities.
  We need to expand on the policies and programs that allow women 
entrepreneurs to grow and to thrive. In turn, it is clear their 
successes will benefit our country and all of our communities. We know 
that women entrepreneurs are now breaking records. Women-owned business 
have a startup rate twice that of male-owned counterparts. Between 1987 
and 1992, the number of women-owned businesses increased by 43 percent 
while business overall grew only 26 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. These accomplishments illustrate the 
importance of women-owned businesses to our economy, and they 
underscore why we in Congress should support their growth and 
development.
  Last year, I was proud to be an original cosponsor of the Women's 
Business Centers Act of 1997, which doubled the authorization of 
funding for women business center programs to $8 million for each of 
the next 3 years. I was extremely pleased that the major provision of 
that bill, as well as a mandate for the SBA to conduct studies on how 
women businesses fare in the contracting and finance areas, was 
included in the Small Business Reauthorization Act of 1997 and was 
enacted into law with President Clinton's signature.
  The legislation that I join Senator Cleland in introducing today 
takes the next step in developing the women's business center program 
by increasing the authorization to $9 million in fiscal year 1999, 
$10.5 million in the year 2000, and $12 million in 2001. I underscore 
that that is a remarkably small amount of money that we are seeking to 
do a large job, a job which obviously is returning extraordinary 
results to the Nation.
  This increased funding will ensure that the SBA achieves the goal of 
establishing at least one women's business center in each State by the 
end of the year in 1999 and will strengthen and expand the existing 
centers. I also continue to support the development of the women's on-
line center, which is a very useful tool for women businessowners--
especially those located in rural areas--who want to avail themselves 
of the women's business center technical expertise.
  The legislation that Senator Cleland and I introduce today is the 
beginning of a new advancement for women-owned businesses, and I am 
very proud to be a part of it. I hope that all of our colleagues will 
join in this important effort. I would like to take the opportunity to 
thank Senator Cleland and his staff, particularly John Johnson, for the 
work they have done in the preparation of this legislation.
  Mr. CLELAND. Mr. President, I thank the Senator from Massachusetts, 
Senator Kerry, for his work on behalf of small businesses. We are both 
members of the Small Business Committee here in the Senate.
  Mr. President, I speak this morning to introduce legislation with my 
colleague, the Senator from Massachusetts, Senator Kerry, and fellow 
cosponsors, including Senators Daschle, Lautenberg, Mikulski, Abraham, 
D'Amato, Breaux, Dodd, Bingaman, Kohl, Landrieu, Torricelli, Leahy, 
Grassley, Snowe, Harkin, Bumpers, and Feinstein. That is an impressive 
bipartisan list of Senators.
  This legislation, simply stated, recognizes the outstanding 
contributions that women's business centers have made to women 
entrepreneurs across the Nation. In light of this outstanding 
achievement in the President's budget request, I am proud to offer this 
measure expressing the findings of Congress that funding for these 
centers, these women's business centers, should be increased. I note 
that the centers are the only organization, nationally, that focus 
exclusively on entrepreneurial training for women. Increased funding 
would allow for new centers and subcenters to be established and for 
continued funding for existing centers, including the on-line women's 
business center. Increased funding would achieve the goal of expanding 
centers to all 50 States. Our legislation would increase funding for 
women's business centers under the SBA in steps, from the current level 
of $8 million to $9 million for fiscal year 1999, $10.5 million for 
fiscal year 2000, and $12 million for fiscal year 2001.
  Mr. President, I would like to take a moment to talk about four focal 
points of women's business centers. The first and most important focus 
is the customer. These centers have responded to women's needs by 
offering training, and during accessible hours at nights and on 
weekends. In addition to regular training courses, special instructions 
on starting at-home child care businesses have also been offered. As 
the SBA Administrator Aida Alvarez points out, the number of clients 
served in the second year of the program increased by 40 percent. 
Approximately 44 percent of clients served were actually socially 
disadvantaged. More than 33 percent of the clients were economically 
disadvantaged,

[[Page S6183]]

nearly 40 percent were minorities, and 18 percent were actually on 
public assistance at the time.

  Then there is the community focus. Women's business centers are a 
network of more than 60 community-based women's business centers 
operating in 36 States, the District of Columbia, and Puerto Rico. Each 
center offers long-term training, networking, and mentoring to 
potential and existing entrepreneurs, most of whom could not or would 
not start businesses without substantial help, and each center tailors 
its programs to the needs of the individual community it serves.
  Next is the economic focus. In terms of job growth, significantly 
high numbers of full- and part-time jobs were created at average hourly 
wages at least double the minimum wage. In the area of loan growth, the 
number of small loans received by clients has more than doubled since 
the first year of the program. In terms of small business growth, 78 
percent of all center clients were startup businessowners or aspiring 
entrepreneurs. The centers taught them business basics and provided 
practical support and realistic encouragement.
  The last focus is that of technology. The on-line women's business 
center, at www.onlinewbc.org, is an interactive state-of-the-art web 
site that offers virtually everything an entrepreneur needs to start 
and build a successful business, including on-line training, mentoring, 
individual counseling, topic forums and news groups, market research, a 
comprehensive State-by-State resource and information guide, and 
information on all of the SBA's programs and services, plus links to 
countless other resources. This site was developed by the North Texas 
Women's Business Development Center in cooperation with more than 60 
women's business centers and several corporate sponsors. This summer, 
information will be available in nine different languages.
  Mr. President, I want to conclude my statement by thanking the 
Senator from Massachusetts, Senator Kerry. I think this legislation 
offers small businesses and entrepreneurs in America hope, particularly 
women businessowners and potential women businessowners. It is the hope 
of a better life for oneself, one's family and community, which 
actually drives entrepreneurs and also drives the economic engine in 
this country, which is so vital to our well-being as a Nation. Women's 
business centers are a distributor of that hope. We in Congress need to 
recognize that this program works. It makes a positive difference in 
the lives of so many women and the countless citizens they employ.
  I hope all of my colleagues will join me in cosponsoring our 
bipartisan legislation. I look forward to its future and timely 
consideration in the Senate Committee on Small Business. I thank my 
colleagues for the opportunity to be here this morning to present this 
legislation, which I think will serve the needs of so many.
  Mr. ABRAHAM. Mr. President, I rise today as an original cosponsor of 
legislation increasing the authorization for the Small Business 
Administration's Women's Business Center program from $9 million in 
1999 to $12 million in 2001. These centers provide management, 
marketing, and financial advice to women-owned small businesses.
  Mr. President, the Small Business Administration's Women's Business 
Center program finances a number of very important initiatives at the 
state and local levels; initiatives that have proven crucial to women 
struggling to enter the job world and to start their own businesses. 
These initiatives have changed the lives of a significant number of 
women in Michigan and throughout the United States.
  For example, Mr. President, Ann Arbor's Women's Initiative for Self-
Employment or WISE program was started in 1987 as a means by which to 
provide low-income women with the tools and resources they need to 
begin and expand businesses. The WISE program provides a comprehensive 
package of business training, personal development workshops, credit 
counseling, start-up and expansion financing, business counseling, and 
mentoring. In addition to helping create and expand businesses, WISE 
fights poverty, increases incomes, stabilizes families, develops skills 
and sparks community renewal.
  In addition, Mr. President, Grand Rapids' Opportunities for Women or 
GROW provides career counseling and training for women in western 
Michigan. This nonprofit group serves about 250 women per year. GROW 
helps women get jobs by providing them with basic training and helping 
them get funds for more specialized training. In addition, they help 
women obtain appropriate clothing so that they can start work in a 
professional manner.
  I salute the good people at WISE and GROW for their hard work helping 
the women of Michigan. They provide the kind of services we need to 
revitalize troubled areas and empower women to build productive lives 
for themselves and their families.
  Because the Small Business Administration's Women's Business Centers 
program makes these kinds of efforts possible, I believe it deserves 
our full support, and merits the increase in funding called for in this 
legislation. I urge my colleagues to support this important bill.
 Mr. LEAHY. Mr. President, I am pleased today to join with my 
colleagues, Senators Cleland and Kerry, in introducing legislation that 
will bring the resources of SBA's Women's Business Center program much 
closer to those seeking this help as they work to start their own 
businesses. This bill does more than recognize the contributions that 
women make as business owners. This bill tangibly supports and 
encourages more women to become entrepreneurs.
  The Office of Women's Business Ownership recently released a report 
to Congress on the success of Women's Business Centers. This report 
officially confirms what we already informally know: Women are 
interested in owning their own businesses, and women appreciate the 
targeted help the Centers offer that relates directly to the unique 
opportunities and challenges that women face in creating a business. 
While existing Small Business Administration offices and Small Business 
Development Centers help women entrepreneurs, this report found that 
more than three-fourths of the women who have turned to a Women's 
Business Center appreciate its special focus. SBA offices and SBDCs do 
not have the resources available to offer the same kind of help.
  Our legislation will supply resources needed to establish a Women's 
Business Center in each of the fifty states, including in my home state 
of Vermont. Passage of this bill would give women in Vermont and in 
other states direct access to information on financing, marketing and 
managing their own business ventures. Under the provisions of this 
bill, Vermonters would have access to the wide range of resources that 
already are available to citizens in 36 other states.
  The bill will also extend additional resources for the online Women's 
Business Center. This resource, located at www.onlinewbc.org, provides 
assistance to women who are unable to travel long distances to Centers. 
With this online resource, women have access to much of the same 
information that is available at the Centers, and they can ask 
questions of specialists, all with the click of a mouse. Our bill would 
enable the Center to expand its online services to women in business.
  Even without the resources of a Women's Business Center, Vermont is a 
leader in women-owned businesses. The number of women entrepreneurs in 
Vermont has almost doubled over the last ten years. Women now own more 
than thirty-eight percent of all businesses in Vermont, which is above 
the national average of thirty-six percent. Women also employ thirty 
percent of Vermont's workers, which also exceeds the national average.
  Women have faced unique obstacles and challenges in starting and 
growing businesses. Some obstacles have been lowered in recent years, 
and we can all hope that this progress will continue. One step we can 
take to promote continued progress is by bringing the resources of 
Women's Business Centers to more women entrepreneurs. We must encourage 
more Vermont women to tap into this incredible growth. An SBA Women's 
Business Center in Vermont will do just that by providing women with 
the framework and support necessary to thrive and excel as business 
owners.
                                 ______