[Congressional Record Volume 145, Number 41 (Tuesday, March 16, 1999)]
[House]
[Pages H1276-H1279]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
WOMEN'S BUSINESS CENTER AMENDMENTS ACT OF 1999
Mrs. KELLY. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 774) to amend the Small Business Act to change the
conditions of participation and provide an authorization of
appropriations for the women's business center program, as amended.
The Clerk read as follows:
H.R. 774
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 Center
Amendments Act of 1999''.
SEC. 2. CONDITIONS OF PARTICIPATION.
(a) In General.--Section 29(c)(1) of the Small Business Act
(15 U.S.C. 656(c)(1)) is amended--
(1) in subparagraph (A) by inserting ``and'' after the
semicolon at the end; and
(2) by striking subparagraphs (B) and (C) and inserting the
following:
``(B) in the third, fourth, and fifth years, 1 non-Federal
dollar for each Federal dollar.''.
(b) Applicability.--The amendments made by this section
shall apply beginning October 1, 1998.
SEC. 3. AUTHORIZATION OF APPROPRIATIONS.
Section 29(k)(1) of the Small Business Act (15 U.S.C.
656(k)(1)) is amended by striking ``8,000,000'' and inserting
``11,000,000''.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
New York (Mrs. Kelly) and the gentlewoman from New York (Ms. Velazquez)
each will control 20 minutes.
The Chair recognizes the gentlewoman from New York (Mrs. Kelly).
Mrs. KELLY. Mr. Speaker, I yield myself such time as I may consume.
Today the House considers H.R. 774, the Women's Business Center
Amendments Act of 1999. As a member of the Committee on Small Business,
I know how important this bill is to Members on both sides of the aisle
and to some small business women throughout the Nation. The committee
held a hearing in early February and thoroughly examined this program
before drafting the legislation. The committee marked up H.R. 774 and
unanimously passed it on February 25.
Before I take a moment to explain the bill, Mr. Speaker, I would like
to thank the ranking member of the Committee on Small Business, my
colleague from New York (Ms. Velazquez) as well as the rest of my
friends from the Democratic side of the aisle for their commitment to
this issue and their help in moving this legislation forward.
Mr. Speaker, as my colleagues know, March is Women's History Month.
Throughout March we honor women who have dedicated their lives to
improving the position of women society, and we celebrate the
achievements of women throughout history. While this month we celebrate
the accomplishments of the past, today we have the opportunity to
promote the success of thousands of women in the future. The ability of
women-owned businesses to flourish is crucial to our Nation's economic
future.
Consider some of the following statistics. Women entrepreneurs are
starting two-thirds of all small businesses in this country. Women-
owned businesses are growing at twice the rate of all other businesses.
Women own nearly 40 percent of all businesses in the United States of
America.
I have been a small business owner, and I know both the joy and
heartbreak that comes from owning a business. Additionally, as chair of
the Congressional Women's Caucus, I have heard much from women who want
to succeed in the business world. They will do so if given a chance.
Consequently, this Congress has a responsibility to do all we can to
support the growing economic force of women business owners.
One way in which we can do this is to support the Women's Business
Center Program at the U.S. Small Business Administration. Women's
business centers play a major role in empowering women entrepreneurs
with the tools necessary to succeed in business. Right
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now there are more than 60 women's business centers operating in almost
40 States.
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Whether it is targeting low income women, assisting women to focus
their business plans through courses on workshops, or providing
information on access to capital, these centers tailor their services
to the communities they serve.
The bottom line is that women's business centers contribute to the
success of thousands of women entrepreneurs by enhancing their
management capacity and capability and offering the critical community
infrastructure necessary for them to succeed in today's business
climate.
The women's business center program is funded through the Small
Business Administration. It began as a demonstration program in 1988.
In 1993, the program received only $1.5 million per year. By 1997,
Congress recognized the program's growth and success and made the
program permanent. It also increased the program's authorization level
to $8 million per year.
In the 106th Congress, the committee has continued its interest and
oversight in the program. As part of this process, it became clear that
while the program was expanding to States that do not currently have
centers, existing centers were experiencing obstacles to their own
growth. We also found that the existing authorization level did not
adequately meet the needs of the program.
H.R. 774 addresses both of these concerns. First, H.R. 774 changes
the funding ratio in the fifth year of funding to ease the fund-raising
burden on centers entering their final year of Federal funding. In the
past, federally funded centers had to raise two non-Federal dollars to
obtain one Federal dollar in their fifth and final year of funding.
Some sites, particularly those located in rural areas, have limited
access to foundations, corporations and banks that provide the private
funds used to match the Federal funds. H.R. 774 eases this fund-raising
burden by changing the ratio of funding to one non-Federal dollar for
every one Federal dollar.
Second, H.R. 774 increases the authorization of appropriations to $11
million in order to support expansion of the program in fiscal year
2000. In conclusion, Mr. Speaker, H.R. 774 is not controversial
legislation. The bill was passed by the Committee on Small Business
unanimously.
I would like to thank the chairman, the gentleman from Missouri (Mr.
Talent) for his efforts on this legislation. I would also like to again
thank the ranking member, the gentlewoman from New York (Ms. Velazquez)
and the entire Committee on Small Business for their bipartisan work on
this legislation. I urge all of my colleagues to support H.R. 774.
Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today in strong support of H.R. 774, the Women's
Business Center Amendments Act of 1999, legislation that I introduced
in committee with the gentleman from Missouri (Mr. Talent), the
gentlewoman from California (Ms. Millender-McDonald), the gentlewoman
from New York (Mrs. Kelly), the gentlewoman from Illinois (Mrs.
Schakowsky), the gentlewoman from California (Mrs. Bono), the gentleman
from New Jersey (Mr. Pascrell), the gentlewoman from the Virgin Islands
(Mrs. MC Christensen), the gentlewoman from New York (Mrs. McCarthy)
and the gentleman from Texas (Mr. Hinojosa). It is fitting that this
bill, which will help America's women entrepreneurs succeed, is before
the House during Women's History Month.
I thank the Members of the Committee on Small Business for their
support of this bill. I would also like to take this opportunity to
thank the chairman of the Committee on Small Business, the gentleman
from Missouri (Mr. Talent), for all of his hard work on this
legislation and for being such a strong supporter of the women's
business center program.
My colleagues, the face of American business is changing. Over the
past 2 decades, we have seen phenomenal growth in the number of women-
owned businesses. In 1976, women owned just 6 percent of this country's
businesses. Today, that number has grown to over 35 percent. That is
over 8 million businesses nationwide. By the year 2000, it is expected
that one out of every two businesses will be owned by a woman. That is
a remarkable transformation and one which will help more Americans
achieve the American dream.
In order to help women achieve this goal, however, we must provide
them with the skills necessary to compete in the global economy of the
21st century. This is why the women's business center program is so
important. These centers provide a broad range of services, including
training and counseling, to women in the area of finance, management
and marketing. Currently, the program serves an average of 2,000 women
in 36 states and results in economic development, new jobs, increased
earning potential and a larger pool of skilled entrepreneurs. Thanks to
this program, countless women entrepreneurs have opened or expanded
their own business.
The women's business center program becomes even more important when
you realize its potential for helping women move from welfare to work.
Women on public assistance often want to start their own business but
lack the training and support necessary to accomplish this goal.
Women's business centers show them how to turn their skills and
knowledge into a viable business. By providing business counseling and
technical assistance, women's centers are helping women entrepreneurs
break the cycle of poverty and become economically self-sufficient.
This is one of the many remarkable stories of this program.
Today's legislation, H.R. 774, does two important things to help the
women's business center program. First, it increases the authorization
level to $11 million for fiscal year 2000. This increase of $3 million
over the previous authorization level will ensure the continued growth
of this initiative. One of the original goals of this program was to
give women in all 50 states access to the business training and
programs that they need to become their own boss. By providing an
additional $3 million, not only will we be helping existing centers but
we can open new facilities in currently underserved areas. That means
that more women will be able to work toward the goal of self-
employment.
The second part of this legislation reduces the requirement in the
fifth year of funding. Currently, women's business centers are required
to raise two non-Federal dollars for every Federal dollar they receive.
In some cases, centers have been forced to cut back on valuable
services because they have not been able to raise the money needed to
drawdown the full amount. Reducing the fifth year match to a one-to-one
ratio, one Federal dollar for every one non-Federal dollar, will allow
these valuable entrepreneurial training services to continue without
interruption. This is a step that will benefit everyone.
The legislation before us today represents an important investment in
the future of our country. As more and more women decide to become
their own boss these centers will provide them with the resources and
training they need to achieve this goal. No one can deny that women
have come a long way in this country, but more needs to be done. With
women entrepreneurs playing a critical role in the economic health of
our Nation, we must make sure that they have access to the tools they
need for success. The public-private partnership of the women's
business center program helps meet this critical need and today's
legislation represents an important step in making sure that we
continue to move forward with this program and empowering our Nation's
women. I strongly support this legislation and I urge my colleagues to
do the same.
Mr. Speaker, I reserve the balance of my time.
Mrs. KELLY. Mr. Speaker, I yield such time as she may consume to the
gentlewoman from California (Mrs. Bono).
Mrs. BONO. Mr. Speaker, I rise today in support of H.R. 774, the
Women's Business Center Amendments Act of 1999. As a business woman, I
share a kindred spirit with the entrepreneurial females of today.
Anyone, be it a man or a woman, who strikes it on their own takes a
certain amount of risk.
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Not only can you lose your investment if your business does not
succeed but also your pride and spirit. So it is comforting to know
that there is a resource for women to turn to when they choose to start
or expand their business.
With women owning nearly 40 percent of all firms in the United
States, it is obvious we have come a long way towards achieving equity
in the business world. Through programs such as the women's business
centers and the hard work of the business women themselves, maybe
government assistance will not even be necessary in the near future.
Congress can play a vital role in helping women help themselves and
achieve this goal of self sufficiency. Currently, women's business
centers must raise two non-Federal dollars to obtain one Federal dollar
in their fifth and final year of funding. By changing the ratio to one
Federal dollar for one non-Federal dollar, we can help these centers
achieve an even higher level of success.
While we must continue to reassess this program and how it is best
administered, I am confident that at this point the women's business
centers need and deserve our support.
Mr. Speaker, I urge all Members to pass this important piece of
legislation.
Ms. VELAZQUEZ. Mr. Speaker, I yield as much time as she may consume
to the gentlewoman from Illinois (Ms. Schakowsky).
Ms. SCHAKOWSKY. Mr. Speaker, the good news in our economy today is
the booming sector of women-owned businesses. We are seeing a dramatic
increase. Let me give you a couple of numbers from the State of
Illinois, my State.
As of 1996, there were nearly 337,000 women-owned businesses in
Illinois employing nearly 950,000, almost a million people, and
generating $119.8 billion in sales.
During the period of 1987 and 1996, the National Federation of Women-
Owned Businesses estimates that the number of women-owned firms in
Illinois has increased by 75 percent, and that employment has grown by
201 percent and sales have risen 252 percent, a pretty good record.
In Chicago, we have the Women's Business Development Center, an
organization that I have worked with for many years and watched the
kind of nurturing they do of women-owned businesses. They provide
counseling, entrepreneurial training, financial assistance, loan
packaging, certification of women business enterprises, procurement
assistance at the State and local and Federal levels and they also do
advocacy on women's economic empowerment.
The majority of the clients of the Women's Business Development
Center are low income women. Fifty-three percent are women of color and
much of their work helps women with self-employment and microenterprise
development, and they also provide assistance to women who have
formerly been on welfare. So we are saying that they are providing
women the ladder of economic opportunity.
In my own town, I have an example of a business that was assisted by
the Women's Business Development Center. It is not really a very
dramatic story but it is the kind of work that they do every single
day. A woman named Victoria Fonseca came to the Women's Business
Development Center in November of 1997 with a desire to open an
establishment that is a wine bar, a bistro and a wine retail store. She
had some experience in the business but had not worked for herself at
all, had not established her own enterprise.
She went to the Women's Business Development Center, who assisted her
in developing a business plan and the development of realistic
projections. The women's business development center packaged the loan
for the Small Business Administration women's pre-qualification loan
program, and they got that. There were many bumps along the road in
finding a location, in finding a bank that would accept it, and all the
way the Women's Business Development Center was holding her hand and
leading her through the process.
Finally, a location was found in downtown Evanston and it required
redoing the projections to ensure that the original loan amount was
sufficient.
Finally, last month the Sustained Glass, an enterprise in Evanston,
was opened up and opened for business and, again, is just one example
of the many businesses that have been assisted by the Women's Business
Development Center.
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So I would encourage support of this bill, the increase in funding,
the increase in ability to access these dollars, so that we can see
more good news for our economic sector, and business development.
Mrs. KELLY. Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time.
In closing, Mr. Speaker, I would again urge my colleagues to support
H.R. 774, the Women's Business Center Amendments Act.
As we stand at the dawn of the 21st century and think about the
future, this bill embodies the potential that the next millennium holds
for all of us. It is a bill that will help women continue to realize
their full potential and take a bold step into the future, and now is
the time to act.
As our economy continues to bloom, the need for more and more skilled
businesswomen and entrepreneurs becomes of paramount importance.
Women's business centers are vital in assuring that all segments of our
economy are able to take advantage of the current time of prosperity.
By providing women entrepreneurs with the training they need to move
to economic independence, we help communities throughout our country
grow. In my district in North Brooklyn, many women entrepreneurs and
small businesses are poised to start or expand their businesses. All
they need is access to some of the technical information and training
services that are available through SBA. Today, by expanding the
women's business centers, we will take a step toward unlocking that
untapped potential in neighborhoods throughout the country.
The type of work done by women's business centers is a catalyst for
success. Women's business centers take the promise of potential and
turn it into the reality of results, and I urge all of my colleagues to
join me in supporting this measure. It is an initiative that will have
a lasting positive impact for the economic strength of our communities,
both now and in the future.
Mrs. McCARTHY of New York. Mr. Speaker, I rise today to offer my
support for the Women's Business Center Amendments Act of 1999. This
important piece of legislation will continue to help women business
owners obtain the necessary tools needed to succeed in the competitive
business environment.
Women business owners have historically been under-served, or even
excluded, from past legislation aimed at assisting small businesses.
This is unfortunate because women are starting businesses at twice the
rate of all businesses. They employ over 23 million people within the
United States and contribute well over $3 trillion to the economy. Yet
they still encounter obstacles when trying to foster their growth.
The Women's Business Center Amendments Act of 1999 directly addresses
this concern by providing the technical assistance, and training needed
to gain access to credit and capital needed to launch a new business.
Since 1988 these centers have proven their usefulness by tailoring
their services to the particular needs of the community. Even today,
they continue to find more effective ways to serve aspiring women
entrepreneurs, from inner cities to rural areas across the country.
Given the proven success of this program, and the positive impact it
has on surrounding communities, I fully support the need to increase
funding for this program, along with changing the fifth year matching
requirement for federal support. The SBA has stated that it is their
goal to have a Women's Business Center in every state. Voting in
support of this legislation will greatly enhance the chances of this
becoming a reality.
Mr. PHELPS. Mr. Speaker, I rise today in support of H.R. 774, the
Women's Business Center Amendment Act. This valuable program provides
women entrepreneurs with assistance in running their business,
receiving access to capital and other support they need to succeed.
The number of women business owners is increasing--by the year 2000
it is expected that one out of every two businesses will be owned by a
woman. As women continue to open businesses at twice the rate of men,
those numbers are only expected to grow. It is vital that we strengthen
this program to help
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create opportunities for women across the country and ensure they can
take advantage of them.
H.R. 774 improves the Small Business Administration's Women's
Business Center Program by increasing the authorization for funding by
$3 million for Fiscal Year 2000, and reducing the amount of private
funding that centers are required to have in their fifth and final year
of operation. These two changes will strengthen this valuable program
by providing additional funds so more Women's Business Centers can be
opened and existing centers can continue to offer a variety of services
in their fifth year.
This legislation will benefit the nineteenth district of Illinois by
helping rural women business owners and promoting economic development,
and urge my colleagues to join me in supporting this important measure.
Mrs. CAPPS. Mr. Speaker, today I rise in strong support of H.R. 774,
the Women's Business Center Amendments Act.
In addition to reauthorizing this important program, this bill will
increase funding for the Small Business Administration's Women's
Business Center program by $3 million. I strongly support the vision of
this program as well as the increase in funding levels.
Providing assistance and services to women considering
entrepreneurial endeavors is vital to the success of the economy of the
22nd District of Columbia and our entire nation. On the Central Coast,
80% of all business activity is generated by small business, and many
of these businesses are run by women. Assisting small businesses, and
ensuring that the doors of economic opportunity are open to all women,
are priorities for me in Congress.
Currently, there are only 60 Women's Business Centers in 36 states,
but many more are needed. At this time, women in my congressional
district must travel over 100 miles to reach a center, and for many
this distance precludes them from availing themselves of those
resources. By increasing the funding for this program, we will be able
to reach out to the many women that are now underserved on the Central
Coast and throughout the nation.
Women's Business Centers assists women entrepreneurs at all levels of
business development by teaching the principles of finance, management
and marketing. The program has demonstrated particular success with
low-income, single and minority women.
The assistance provided at Women's Business Centers enables women to
fight poverty by giving them the tools to become self-sufficient,
successful business owners who are leaders in their communities.
I strongly urge my colleagues to pass this bill and support the
Women's Business Center program.
Ms. VELAZQUEZ. Mr. Speaker, I yield back the balance of my time.
Mrs. KELLY. Mr. Speaker, I urge all Members to support H.R. 774, and
I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Linder). The question is on the motion
offered by the gentlewoman from New York (Mrs. Kelly) that the House
suspend the rules and pass the bill, H.R. 774, as amended.
The question was taken.
Mrs. KELLY. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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