[Congressional Record Volume 145, Number 142 (Tuesday, October 19, 1999)]
[House]
[Pages H10235-H10240]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          WOMEN'S BUSINESS CENTERS SUSTAINABILITY ACT OF 1999

  Mrs. KELLY. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1497) to amend the Small Business Act with respect to the 
women's business center program, as amended.
  The Clerk read as follows:

                               H.R. 1497

       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 
     Sustainability Act of 1999''.

     SEC. 2. PRIVATE NONPROFIT ORGANIZATIONS.

       Section 29 of the Small Business Act (15 U.S.C. 656) is 
     amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (B) by inserting after paragraph (1) the following:
       ``(2) the term `private nonprofit organization' means an 
     entity described in section 501(c) of the Internal Revenue 
     Code of 1986 that is exempt from taxation under section 
     501(a) of such Code;''; and
       (2) in subsection (b), by inserting ``nonprofit'' after 
     ``private''.

     SEC. 3. INCREASED MANAGEMENT OVERSIGHT AND REVIEW OF WOMEN'S 
                   BUSINESS CENTERS.

       Section 29 of the Small Business Act (15 U.S.C. 656) is 
     amended--
       (1) by striking subsection (h) and inserting the following:
       ``(h) Program Examination.--
       ``(1) In general.--The Administration shall--
       ``(A) develop and implement procedures to annually examine 
     the programs and finances of each women's business center 
     established pursuant to this section, pursuant to which each 
     such center shall provide to the Administration--
       ``(i) an itemized cost breakdown of actual expenditures for 
     costs incurred during the preceding year; and
       ``(ii) documentation regarding the amount of matching 
     assistance from non-Federal sources obtained and expended by 
     the center during the preceding year in order to meet the 
     requirements of subsection (c) and, with respect to any in-
     kind contributions described in subsection (c)(2) that were 
     used to satisfy the requirements of subsection (c), 
     verification of the existence and valuation of those 
     contributions; and
       ``(B) analyze the results of each such examination and, 
     based on that analysis, make a determination regarding the 
     viability of the programs and finances of each women's 
     business center.
       ``(2) Extension of contracts.--In determining whether to 
     extend or renew a contract with a women's business center, 
     the Administration--
       ``(A) shall consider the results of the most recent 
     examination of the center under paragraph (1); and
       ``(B) may withhold such extension or renewal, if the 
     Administration determines that--
       ``(i) the center has failed to provide any information 
     required to be provided under clause (i) or (ii) of paragraph 
     (1)(A), or the information provided by the center is 
     inadequate; or
       ``(ii) the center has failed to provide any information 
     required to be provided by the center for purposes of the 
     report of the Administration under subsection (j), or the 
     information provided by the center is inadequate.''; and
       (2) by striking subsection (j) and inserting the following:
       ``(j) Management Report.--
       ``(1) In general.--The Administration shall prepare and 
     submit to the Committees on Small Business of the House of 
     Representatives and the Senate a report on the effectiveness 
     of all projects conducted under this section.
       ``(2) Contents.--Each report submitted under paragraph (1) 
     shall include information concerning, with respect to each 
     women's business center established pursuant to this 
     section--
       ``(A) the number of individuals receiving assistance;
       ``(B) the number of startup business concerns formed;
       ``(C) the gross receipts of assisted concerns;
       ``(D) the employment increases or decreases of assisted 
     concerns;
       ``(E) to the maximum extent practicable, increases or 
     decreases in profits of assisted concerns;
       ``(F) documentation detailing the most recent analysis 
     undertaken under subsection (h)(1)(B) and the determinations 
     made by the Administration with respect to that analysis; and
       ``(G) demographic data regarding the staff of the 
     center.''.

     SEC. 4. WOMEN'S BUSINESS CENTER SUSTAINABILITY PILOT PROGRAM.

       (a) In General.--Section 29 of the Small Business Act (15 
     U.S.C. 656) is amended by adding at the end the following:
       ``(l) Sustainability Pilot Program.--
       ``(1) In general.--There is established a 4-year pilot 
     program under which the Administration is authorized to make 
     grants (referred to in this section as `sustainability 
     grants') on a competitive basis for an additional 5-year 
     project under this section to any private nonprofit 
     organization (or a division thereof)--
       ``(A) that has received financial assistance under this 
     section pursuant to a grant, contract, or cooperative 
     agreement; and
       ``(B) that--
       ``(i) is in the final year of a 5-year project; or
       ``(ii) to the extent that amounts are available for such 
     purpose under subsection (k)(4)(B), has completed a project 
     financed under this section (or any predecessor to this 
     section) and continues to provide assistance to women 
     entrepreneurs.
       ``(2) Conditions for participation.--In order to receive a 
     sustainability grant, an organization described in paragraph 
     (1) shall submit to the Administration an application, which 
     shall include--
       ``(A) a certification that the applicant--
       ``(i) is a private nonprofit organization;
       ``(ii) employs a full-time executive director or program 
     manager to manage the women's business center for which a 
     grant is sought; and
       ``(iii) as a condition of receiving a sustainability grant, 
     agrees--

       ``(I) to an annual examination by the Administration of the 
     center's programs and finances; and
       ``(II) to the maximum extent practicable, to remedy any 
     problems identified pursuant to that examination;

       ``(B) information demonstrating that the applicant has the 
     ability and resources to meet the needs of the market to be 
     served by the women's business center site for which a 
     sustainability grant is sought, including the ability to 
     raise financial resources;
       ``(C) information relating to assistance provided by the 
     women's business center site for which a sustainability grant 
     is sought in the area in which the site is located, 
     including--
       ``(i) the number of individuals assisted;
       ``(ii) the number of hours of counseling, training, and 
     workshops provided; and
       ``(iii) the number of startup business concerns formed;
       ``(D) information demonstrating the effective experience of 
     the applicant in--
       ``(i) conducting financial, management, and marketing 
     assistance programs, as described in paragraphs (1), (2), and 
     (3) of subsection (b), designed to impart or upgrade the 
     business skills of women business owners or potential owners;
       ``(ii) providing training and services to a representative 
     number of women who are both socially and economically 
     disadvantaged;
       ``(iii) using resource partners of the Administration and 
     other entities, such as universities;
       ``(iv) complying with the cooperative agreement of the 
     applicant; and
       ``(v) prudently managing finances and staffing, including 
     the manner in which the performance of the applicant compared 
     to the business plan of the applicant and the manner in which 
     grants made under subsection (b) were used by the applicant; 
     and

[[Page H10236]]

       ``(E) a 5-year plan that demonstrates the ability of the 
     women's business center site for which a sustainability grant 
     is sought--
       ``(i) to serve women business owners or potential owners in 
     the future by improving fundraising and training activities; 
     and
       ``(ii) to provide training and services to a representative 
     number of women who are both socially and economically 
     disadvantaged.
       ``(3) Review of applications.--
       ``(A) In general.--The Administration shall--
       ``(i) review each application submitted under paragraph (2) 
     based on the information provided under subparagraphs (D) and 
     (E) of that paragraph, and the criteria set forth in 
     subsection (f); and
       ``(ii) approve or disapprove applications for 
     sustainability grants simultaneously with applications for 
     grants under subsection (b).
       ``(B) Data collection.--Consistent with the annual report 
     to Congress under subsection (j), each women's business 
     center site that receives a sustainability grant shall, to 
     the maximum extent practicable, collect the information 
     relating to--
       ``(i) the number of individuals assisted;
       ``(ii) the number of hours of counseling and training 
     provided and workshops conducted;
       ``(iii) the number of startup business concerns formed;
       ``(iv) any available gross receipts of assisted concerns; 
     and
       ``(v) the number of jobs created, maintained, or lost at 
     assisted concerns.
       ``(C) Record retention.--The Administration shall maintain 
     a copy of each application submitted under this subsection 
     for not less than 10 years.
       ``(4) Non-federal contribution.--
       ``(A) In general.--Notwithstanding any other provision of 
     this section, as a condition of receiving a sustainability 
     grant, an organization described in paragraph (1) shall agree 
     to obtain, after its application has been approved under 
     paragraph (3) and notice of award has been issued, cash and 
     in-kind contributions from non-Federal sources for each year 
     of additional program participation in an amount equal to 1 
     non-Federal dollar for each Federal dollar.
       ``(B) In-kind contributions.--Not more than 50 percent of 
     the non-Federal assistance obtained for purposes of 
     subparagraph (A) may be in the form of in-kind contributions 
     that exist only as budget line items, including such 
     contributions of office equipment and office space.
       ``(5) Timing of requests for proposals.--In carrying out 
     this subsection, the Administration shall issue requests for 
     proposals for women's business centers applying for the pilot 
     program under this subsection simultaneously with requests 
     for proposals for grants under subsection (b).''.
       (b) Authorization of Appropriations.--Section 29(k) of the 
     Small Business Act (15 U.S.C. 656(k)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) In general.--There is authorized to be appropriated, 
     to remain available until the expiration of the pilot program 
     under subsection (l)--
       ``(A) $12,000,000 for fiscal year 2000;
       ``(B) $12,800,000 for fiscal year 2001;
       ``(C) $13,700,000 for fiscal year 2002; and
       ``(D) $14,500,000 for fiscal year 2003.'';
       (2) in paragraph (2)--
       (A) by striking ``Amounts made'' and inserting the 
     following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     amounts made''; and
       (B) by adding at the end the following:
       ``(B) Exception.--Of the total amount made available under 
     this subsection for a fiscal year, the following amounts 
     shall be available for costs incurred in connection with the 
     selection of applicants for assistance under this subsection 
     and with monitoring and oversight of the program authorized 
     under this subsection:
       ``(i) For fiscal year 2000, 2 percent of such total amount.
       ``(ii) For fiscal year 2001, 1.9 percent of such total 
     amount.
       ``(iii) For fiscal year 2002, 1.9 percent of such total 
     amount.
       ``(iv) For fiscal year 2003, 1.6 percent of such total 
     amount.''; and
       (3) by adding at the end the following:
       ``(4) Reservation of funds for sustainability pilot 
     program.--
       ``(A) In general.--Of the total amount made available under 
     this subsection for a fiscal year, the following amounts 
     shall be reserved for sustainability grants under subsection 
     (l):
       ``(i) For fiscal year 2000, 17 percent of such total 
     amount.
       ``(ii) For fiscal year 2001, 18.8 percent of such total 
     amount.
       ``(iii) For fiscal year 2002, 30.2 percent of such total 
     amount.
       ``(iv) For fiscal year 2003, 30.2 percent of such total 
     amount.
       ``(B) Use of unawarded reserve funds.--
       ``(i) Sustainability grants to other centers.--Of amounts 
     reserved under subparagraph (A), the Administration shall use 
     any funds that remain available after making grants in 
     accordance with subsection (l) to make grants under such 
     subsection to women's business center sites that have 
     completed a project financed under this section (or any 
     predecessor to this section) and that continue to provide 
     assistance to women entrepreneurs.
       ``(ii) Additional grants.--The Administration shall use any 
     funds described in clause (i) that remain available after 
     making grants under such clause to make grants to additional 
     women's business center sites, or to increase the grants to 
     existing women's business center sites, under subsection 
     (b).''.
       (c) Guidelines.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator of the Small 
     Business Administration shall issue guidelines to implement 
     the amendments made by this section.

     SEC. 5. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect on October 1, 1999.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
New York (Mrs. Kelly) and the gentleman from New Mexico (Mr. Udall) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from New Mexico (Mrs. Kelly).
  Mrs. KELLY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, today the House considers H.R. 1497, the Women's 
Business Center Sustainability 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.
  The committee held a hearing in February and thoroughly examined this 
program before drafting this legislation. The Committee on Small 
Business passed H.R.  1497 unanimously. Before I take a moment to 
explain the bill, I would like to thank the gentleman from Missouri 
(Chairman Talent) for offering the amendment in the nature of a 
substitute that the committee marked up.
  I would also like to thank the gentlewoman from New York (Ms. 
Velazquez), the ranking member of the Committee on Small Business, for 
her help in moving this legislation forward.
  Finally, I would like to thank the gentleman from New Mexico (Mr. 
Udall), the author of H.R. 1497.
  This Congress, the Committee on Small Business sought more 
information about the Women's Business Center Program as we considered 
reauthorization. It soon became clear that while the program was 
expanding around the country to States without centers, existing sites 
were experiencing obstacles to their own growth. H.R. 1497 addresses 
this concern.
  This legislation balances the immediate needs of re-competition for 
centers in their fifth year of funding and the desire for new centers 
each year. The bill also allows for graduated centers to receive 
funding once the SBA selects the centers in their fifth year of funding 
to re-competition.
  Since our hearing to examine this program in February, I have come to 
understand the urgent need for re-competition. But we must take a 
practical, well-balanced approach. That is what this pilot program is 
designed to do.
  Next, I would like to take the opportunity to briefly explain the 
bill.
  First, the legislation increases oversight and review of women's 
business centers. SBA is directed to do an annual programmatic and 
financial examination of each center and then to analyze the results to 
determine whether the center is programmatically and financially 
viable.
  Second, H.R. 1497 requires the SBA to issue the request for proposals 
for new centers and centers competing for sustainability grants at the 
same time in order to better manage the selection and award process. 
This provision is intended to ensure that new centers and sustained 
centers get equal consideration during the application review process 
and that funds are appropriately awarded. With regard to sustainability 
grants, the SBA shall make awards in two rounds, giving preference to 
graduating centers.
  Third, based on the conditions described in the bill, the committee 
intends for the selection panel to judge on merit how well a center 
provided service to its market under its first award and how it plans 
to service its market in the next 5 years. The committee wishes for the 
Small Business Administration to use the conditions for participation 
in the legislation as guidelines for establishing strict criteria for 
re-competition.
  The bill goes a step further by requiring the SBA as part of the 
final selection process to do a site visit of each center competing for 
a sustainability grant. The committee feels strongly that site visits 
are an important tool to help panel judges distinguish between the 
centers and to improve the oversight program. Recognizing that site 
visits are expensive, this bill makes available the equivalent of 
$275,000 per year proportionate to appropriations to be used for site 
visits and other uses.
  Fourth, H.R. 1497 incrementally raises over 4 years the annual 
authorization levels from $12 million in fiscal year 2000 to $14.5 
million in fiscal year

[[Page H10237]]

2003. The committee increased the authorization levels to ensure that 
there are adequate monies to fund 45 existing centers, an average of 
eight re-competing centers, and an average of 10 new centers per year. 
The bill reserves a percentage of money each fiscal year for 
sustainability grants.
  As an original cosponsor of H.R. 1497, I believe that this pilot 
program is the best approach to ensure that our invested Federal funds 
do not go to waste. As a former small business owner and co-chair of 
the Congressional Women's Caucus, I know how important this legislation 
is to our women-owned businesses. H.R. 1497 has been a top legislative 
priority of our Women in Business team, and I know our Members have 
been awaiting action on this bill.
  Mr. Speaker, I reserve the balance of my time.
  Mr. UDALL of New Mexico. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, let me first of all begin by thanking the gentlewoman 
from New York (Mrs. Kelly) for her original cosponsorship and her 
leadership on this bill and also thank the gentlewoman from New York 
(Ms. Velazquez), the ranking member, for her very active support of 
this legislation that is critical for the further promotion of women's 
businesses throughout our country.
  The Women's Business Centers Sustainabililty Act of 1999 is an 
essential enhancement of the Women's Business Center Program, which 
will strengthen and improve this important service. As all of us are 
aware, the contribution of women-owned businesses to our economy has 
grown exponentially over the past few decade.
  Today the eight million women-owned firms in this country contribute 
more than $2.3 trillion annually to the U.S. economy and offer jobs to 
one out of every five U.S. workers.
  Moreover, women-owned businesses are now starting at twice the rate 
of other businesses in the United States; and by the year 2000, it is 
expected that nearly one out of every two businesses will be owned by a 
woman.
  In my home State of New Mexico, women-owned firms now account for 41 
percent of all businesses, provide employment for over 35 percent of 
the State's workforce, and generates 21 percent of all sales. This 
success is even more remarkable in that it places New Mexico as the 
third most successful of all States in its number of women-owned 
business incorporations. This noble statistic identifies women-owned 
firms as necessary and as a necessary and essential part of New 
Mexico's efforts to improve the lives of all of its residents.
  I would like to briefly tell my colleagues about Agnes Cordova of 
Taos, New Mexico. She has combined her cultural heritage with business 
acumen to create ``Sube,'' a multimedia, bilingual educational program 
designed to teach Spanish to preschool and early elementary children.
  The set of flashcards, board games, videotapes with original music, 
and computer software have all been well-received in the local area, 
and plans are being hatched for broader marketing efforts.
  Each component is offered separately so parents can afford the 
educational supplies that can supplement formal language education.
  Agnes is now planning to develop materials for older kids, as well. 
By matching her heritage with business opportunity, Agnes is creating 
economic opportunity for herself and helping to preserve the unique 
culture of northern New Mexico.
  One of the efforts responsible for the success of women-owned 
businesses in New Mexico and elsewhere throughout the country is the 
Small Business Administration's Women's Business Center program.
  Currently there are 59 centers in 36 States, the District of 
Columbia, and Puerto Rico. These centers provide technical assistance, 
business information, and counseling and other specialized assistance 
to socially and economically disadvantaged women entrepreneurs.
  The services provided by women's business centers include assistance 
in gaining access to capital, procuring government contracts, and 
helping women to work their way off public assistance.
  In New Mexico alone, the six women's business centers run by the 
Women's Economic Self-sufficiency Team, WESST Corp., have already 
facilitated the start up and growth of over 600 small businesses, 
provided technical assistance to over 3,500 client firms, and conducted 
business-training activities for over 6,000 individual women 
entrepreneurs.
  Most importantly, 81 percent of the clientele of these women's 
business centers have been low-income individuals and 47 percent have 
been women of color.
  Nevertheless, in spite of their demonstrated contributions to the 
national economy and to individual women nationwide, recent surveys and 
testimonials have highlighted that many women's business centers have 
been forced to cut back on services or prematurely close their doors 
when they lose the support of the Small Business Administration's 
Office of Women's Business Ownership.
  Today, 25 percent of the women's business centers initially funded by 
the SBA are closed.

                              {time}  1530

  Of this 25 percent, many are only partly operational. In fact, while 
several of the WESST Corp sites in New Mexico that have already lost 
SBA funding have been unable to continue providing programs, others 
have suffered considerably in their missions due to this critical loss 
of support.
  This is why I introduced the Women's Business Centers Sustainability 
Act of 1999. This legislation will allow recompetition for Federal 
funding by women's business centers which have completed a funding term 
and will raise the authorization of appropriations for fiscal year 2000 
and fiscal year 2001 women business center funding to ensure adequate 
funding for qualifying existing and new centers over the next 4 years. 
This funding will allow the SBA to continue to promote the 
establishment of even more women's business centers in communities 
throughout the Nation as well as to ensure adequate, continuing support 
for already established, effective centers.
  The women's business center program has helped countless women start 
and expand their own businesses. It is vital that we continue to 
support this valuable program. I invite and encourage all of my 
colleagues to join me in supporting this legislation and I look forward 
to its bipartisan approval today.
  Once again, Mr. Speaker, I thank the gentleman from Missouri (Mr. 
Talent) and the gentlewoman from New York (Mrs. Kelly) for their 
support and for the support of the gentlewoman from New York (Ms. 
Velazquez). None of this effort could have been completed without their 
leadership and support.
  Mr. Speaker, I yield such time as she may consume to the gentlewoman 
from New York (Ms. Velazquez). She is our ranking member and she has 
provided great bipartisan leadership in this committee.
  Ms. VELAZQUEZ. Mr. Speaker, I thank the gentleman from New Mexico 
(Mr. Udall) for yielding me this time and I commend him for his work in 
authoring this important piece of legislation. I also want to thank the 
gentlewoman from New York (Mrs. Kelly) and the gentleman from Missouri 
(Mr. Talent) for their continued commitment to women business owners.
  Mr. Speaker, I rise in strong support of H.R. 1497, the Women's 
Business Centers Sustainability Act of 1999. This bipartisan effort 
will ensure that women's business centers keep their doors open. It 
will establish better oversight mechanisms and will ensure that the 
program continues to grow, with new centers in previously underserved 
areas. Our committee has a track record of supporting the work of these 
centers, and this bill is a continuation of our commitment.
  Women entrepreneurs are an increasingly important part of the United 
States economy. Women own more than 8 million businesses and account 
for nearly one-third of all small businesses. Women-owned businesses 
provide jobs to more than 25 million people. These are not just empty 
statistics but rather a clear indication that women's participation in 
our economy creates jobs and improve the lives of millions of 
Americans.
  Impressive as these figures may be, women continue to encounter 
obstacles

[[Page H10238]]

when trying to start, maintain or expand businesses. Here is where the 
women's business centers come into play, to help women steer clear of 
these obstacles and fulfill their dream of financial independence.
  Fulfilling our commitment to women entrepreneurs, the committee 
recently held hearings that found that some centers, entering their 
fifth and final year, were not in a sufficiently strong financial 
position to phase out the Federal match. We also found that in order to 
improve the outreach of these services, the program needs to continue 
growing into underserved areas.
  Recognizing the importance of women in today's economy as well as the 
important services these centers provide, our committee worked in a 
bipartisan fashion to resolve all of these issues.
  Framed within budgetary constraints, the challenge facing our 
committee was to find the proper balance between the need to continue 
growing the program and permitting those in their last year of funding 
to recompete. H.R. 1497 strikes that balance by setting aside a portion 
of the total funding for new centers and another for recompeting 
centers. This is an important change that will allow centers with good 
track records to continue to provide their services while ensuring that 
the program will continue to expand into new and previously underserved 
areas.
  Mr. Speaker, we recognize the importance of women businesses in 
today's economy and we recognize the important work these centers do, 
not only in improving women's lives but in improving their communities 
as well.
  I urge my colleagues to join me in supporting women entrepreneurs 
across the United States by voting ``yes'' on H.R. 1497.
  Mr. UDALL of New Mexico. Mr. Speaker, I yield such time as she may 
consume to the gentlewoman from California (Mrs. Napolitano).
  Mrs. NAPOLITANO. Mr. Speaker, I thank the gentleman from New Mexico 
(Mr. Udall) for yielding me this time. It is really wonderful to have 
this measure here before us. The gentlewoman from New York (Mrs. Kelly) 
and the gentleman from New Mexico (Mr. Udall) have done an excellent 
job in bringing this forth to this floor.
  Mr. Speaker, California is one of the biggest markets for products, 
especially in international trade. We recognize that women are the 
fastest growing segment not only in California but throughout the 
United States of the new business. These new businesses are so vitally 
important to the United States economy which is now currently providing 
more jobs than Fortune 500 companies, if one can envision that. Women-
owned businesses now provide more jobs than the Fortune 500 companies. 
These nearly 8 million women-owned businesses provide jobs for 18.5 
million people and generate $3.1 trillion, with a T, we have heard it 
before, I want to reiterate it, in revenue for this country.
  Women-owned businesses are the fastest growing segment of business. 
From 1987 to 1997, the number of people employed by women-owned 
businesses grew by 262 percent. They have been booming and will 
continue to boom with some help from us. These are just some of the 
reasons why we cannot and we must not neglect women-owned businesses. 
With the welfare-to-work programs currently under way and the ever-
growing labor pool, the jobs that these small businesses will provide 
are sorely needed to address the shortfall in jobs in the United 
States. Unless we pay attention to the needs of small business owners, 
we risk losing or at least hampering an important job creator.
  These women-owned businesses need help in identifying loan 
institutions. I am not sure how many of us really understand that with 
the merger of large banks, small business, especially women-owned 
business, find it harder and harder to get loans from banks and loan 
institutions. This will be one area of assistance to provide for sorely 
needed identification of these institutions, help the business women 
develop business plans and follow through to make sure and ensure their 
success.
  That is why I support H.R. 1497, the Women's Business Centers 
Sustainability Act. This provides for 10 new women's business centers 
that can help diverse and up-and-coming community entrepreneurs. We 
need them and we need to help them be able to grow and foster that job 
growth in our communities. In the very communities we talk about, these 
women entrepreneurs need just a little help in obtaining more 
information and making the contacts necessary to become successful 
business owners.
  This bill is a step in the right direction. I certainly look forward 
to moving more in the future to help women-owned small business. These 
10 new centers are certainly going to provide a boon for our economy. I 
look forward to working with the committee and my colleagues.
  Mr. UDALL of New Mexico. Mr. Speaker, I yield myself such time as I 
may consume.
  Let me first of all say that the action of the Committee on Small 
Business in this bipartisan passage of this bill I think is very 
important. I want to once again thank the gentleman from Missouri (Mr. 
Talent), the gentlewoman from New York (Ms. Velazquez) and also the 
gentlewoman from New York (Mrs. Kelly). The Committee on Small 
Business, its hallmark has really been bipartisanship. We have been 
very productive in the 9 months we have been working on issues. I 
daresay we have one of the most outstanding records of any committee in 
this House.
  I would also like to thank all of the staff members for their very 
hard work on this bill and what they have done to help shape it and 
bring it to this point and particularly recognize Michael Day.
  Mr. Speaker, let me begin my remarks today by thanking the Chairman 
and the Ranking Member for their active support of this legislation 
that is critical to the further promotion of women's businesses 
throughout our country.
  The Women's Business Centers Sustainability Act of 1999 is an 
essential enhancement of the Women's Business Center Program, which 
will strengthen and improve this important service.
  Over the past few decades the contribution of women-owned businesses 
to our economy has grown exponentially. Today, the 8 million women-
owned firms in this country contribute more than $2.3 trillion annually 
to the U.S. economy and offer jobs to one out of every five U.S. 
workers. Moreover, women-owned businesses are now starting at twice the 
rate of all other businesses in the United States, and, by the year 
2000, it is expected that nearly one out of every two businesses will 
be owned by a woman. In my home state of New Mexico, in particular, 
women-owned firms account for 41% of all businesses, provide employment 
for over 35% of the state's workforce, and generate 21% of all sales. 
This success is even more remarkable in that it ranks New Mexico third 
of all the states in women-owned business incorporations--a statistic 
that identifies women-owned firms as an important part of New Mexico's 
efforts to improve the lives of all its residents.
  One of the efforts responsible for the success of women-owned 
businesses is the Small Business Administration's Women's Business 
Center program. Currently, there are 59 centers in 36 states, the 
District of Columbia and Puerto Rico. These centers provide technical 
assistance, business information and counseling, and other specialized 
assistance to socially and economically disadvantaged women 
entrepreneurs. The services provided by women's business centers 
include assistance in gaining access to capital, procuring government 
contracts, and helping women to work their way off public assistance. 
In New Mexico alone, the six women's business centers run by the 
Women's Economic Self-Sufficiency Team (WESST Corp.), facilitated the 
start-up and growth of over 600 small businesses, provided technical 
assistance to over 3,500 client firms, and conducted business-training 
activities for over 6,000 individuals. Most importantly, 81% of the 
clientele of these women's business centers have been low-income 
individuals and 47% have been women of color.
  The impact of women's business centers in New Mexico is illustrated 
through a number of success stories that were told by Agnes Noonan, 
Executive Director of the WESST Corp., during a recent hearing on 
women's business centers:

       Heidi Montoya's desire to run her own firm grew out of the 
     frustrations of working for years as a draftsperson for a 
     company which offered few benefits and no retirement 
     opportunities. In 1989, Heidi took the leap, opening Builders 
     Hardware of New Mexico, which sells commercial grade doors 
     and frames and finish hardware. Heidi and WESST Corp. joined 
     forces when Heidi attended an orientation meeting, and WESST 
     Corp. granted Heidi a loan for a computer that enabled her to 
     create a presence on the Internet and market more effectively 
     to government agencies. Since 1993, Builders Hardware's

[[Page H10239]]

     gross sales have increased by 129%. A single mother, Heidi 
     maintains a second office at home for after-school hours.
       Two years ago, Diane Barrett was receiving food stamps, 
     sleeping on a friend's floor and struggling to provide for 
     her son. But she also had a background as a chef. In 1996, 
     Diane approached WESST Corp.'s regional office in Las Cruces, 
     which helped her create a business plan and receive a $5,000 
     loan to open a bakery and cafe. Since then, Diane has 
     expanded the seating area, added a dinner menu, and is 
     currently employing 19 people. In 1998, Diane's Bakery and 
     Cafe was selected as the Mainstreet Business of the Year in 
     Silver City, New Mexico. Recently interviewed by the Travel 
     Section of the New York Times, Diane is a great example of 
     how hard work and commitment to a business pays off.
       Norma Gomez, a native of Mexico, came to the United States 
     in the 1980's. On welfare, with three children and limited 
     proficiency with English, Norma had difficulty being taken 
     seriously when the opportunity arose to open her own 
     business. With her small savings, she opened her shop in a 
     strip mall in Farmington, only to find the overhead exceeded 
     her income. She came to WESST Corp. for help with planning, 
     marketing and financing assistance. With technical assistance 
     from WESST Corp., Norma relocated, adopted an inventory 
     tracking system, and developed a long-term business plan. 
     WESST Corp. also convinced suppliers to provide Norma with 
     accounts and better terms. The result of these efforts was a 
     300% increase in profits in the first year.
       Agnes Cordova, of Taos, New Mexico, has combined her 
     cultural heritage with business acumen to create ``Sube!''--a 
     multimedia, bilingual educational program designed to teach 
     Spanish to preschool and early elementary children. The set 
     of flash cards, board game, videotapes with original music, 
     and computer software have all been well received in the 
     local area and plans are being hatched for broader marketing 
     efforts. Each component is offered separately so that parents 
     can afford the educational supplies that can supplement 
     formal language education. Agnes is now planning to develop 
     materials for older kids as well. By matching her heritage 
     with business opportunity, Agnes is creating economic 
     opportunity for herself and helping to preserve the unique 
     culture of northern New Mexico.

  Nevertheless, in spite of their demonstrated contributions to the 
national economy and to individual women--recent surveys and 
testimonials have highlighted that many women's business centers have 
been forced to cut back on services or prematurely close their doors 
when they lose the support of the Small Business Administration's 
Office of Women's Business Ownership. Today, twenty-five percent of the 
women's business centers initially funded by the SBA are closed--and of 
this twenty-five percent, many are only partly operational. In fact, 
while several of the WESST Corp. sites in New Mexico have already lost 
SBA funding and have been able to continue providing programs, others 
have suffered considerably in their work due to the loss of support.
  To address this problem, the Women's Business Centers Sustainability 
Act of 1999 will allow re-competition for Federal funding by Women's 
Business Centers which have completed a funding term, and will raise 
the authorization of appropriations for FY 2000 and FY 2001 Women 
Business Center funding from $11 million to $12 million per year.
  The Women's Business Center program has helped countless women start 
and expand their own businesses. It is vital that we continue to 
support this valuable program. I invite and encourage my fellow 
colleagues to join me in supporting this program.
  Mr. Speaker, I yield back the balance of my time.
  Mrs. KELLY. Mr. Speaker, I yield myself such time as I may consume.
  In conclusion, I want to state that H.R. 1497 has broad bipartisan 
support. As the gentleman from New Mexico (Mr. Udall) pointed out, this 
is a very bipartisan committee. We work well, and I believe that that 
bipartisanship works very well for sound public policy.
  As I stated earlier, this legislation passed the Committee on Small 
Business unanimously. Again, I would like to thank the gentleman from 
Missouri (Mr. Talent) for his efforts on this legislation. I would also 
like to thank the gentlewoman from New York (Ms. Velazquez) and the 
entire Committee on Small Business for their work on this important 
legislation.
  Finally, I would like to commend the exceptional staff work that was 
performed on this legislation. Meredith Matty of the committee's 
majority staff and Michael Day of the committee's minority staff worked 
tirelessly on this issue and were instrumental in developing the 
legislation before us today as was Mr. Harry Katrichis.
  I urge all of my colleagues to support H.R. 1497.
  Mrs. MINK of Hawaii. Mr. Speaker, I rise to express my strong support 
for passage of H.R. 1497, the Women's Business Centers Sustainability 
Act. H.R. 1497 raises the authorization of appropriations for Women's 
Business Centers for fiscal year 2000 to $12 million up from the 
current authorization level of $11 million. Moreover, the bill 
increases the authorization rates to $13 million in fiscal year 2001, 
$14 million in fiscal year 2002, and $15 million in fiscal year 2003.
  The Small Business Administration's Women's Business Centers program 
supports 80 centers in 47 states, the District of Columbia, Puerto 
Rico, and the Virgin Islands. These centers provide technical 
assistance, business information and counseling, and other specialized 
assistance to socially and economically disadvantaged women 
entrepreneurs.
  H.R. 1497 will have a dramatic impact on the growth of women's 
business centers as 60 percent of the funds will be reserved for new 
centers, enabling women in more communities and states to receive the 
economic and social benefits of the program.
  Hawaii's Women's Financial Resource Center (WFRC), based in Honolulu, 
was first funded in 1999. WFRC works with women from diverse ethnic and 
cultural backgrounds, including Native Hawaiian, Samoan, Fijian, 
Korean, Japanese, Filipino, and Chinese. Under WFRC's program, each 
client receives an individual assessment, which includes training in 
writing business plans, a marketing study group, and a monthly 
networking and information meeting. WFRC provides special topic 
workshops, such as ``Designing Brochures and Flyers,'' ``Taxes for the 
Small Business Owner,'' ``Taking the `Starving' Out of Artist,'' and 
``Starting a Home-Based Business.'' The center has also entered into a 
partnership with the Chamber of Commerce of Hawaii to provide distance/
correspondence training. Within the next five years, WFRC plans to have 
subcenters on at least two other islands.
  Women's businesses are starting at twice the rate of all other 
businesses. We must do all we can to ensure that disadvantaged women 
are given the information and assistance they need to become full 
participants in our economy.
  Ms. SCHAKOWSKY. Mr. Speaker, I commend my colleagues on the Small 
Business Committee for their work on H.R. 1497, the Women's Business 
Center Sustainability Act of 1999. This legislation, before the House 
today will improve the Small Business Administration's Women's Business 
Center Program.
  The women's business center program has helped start and improve 
woman-owned businesses in my district and across the country. During my 
service on the Small Business Committee I heard two suggestions from 
women's business center directors: Make funds available to start 
women's business centers in every state, and allow women's business 
centers to re-compete for federal matching funds after their fifth year 
of existence.
  Today, with passage of H.R. 1497, we will authorize this program 
through the year 2001 and make women's business centers eligible for 
another five years of federal matching funds. Legislation from earlier 
this session increased fiscal year 2000 funding for the women's 
business center program by $3 million and ensured full funding in the 
fifth year of operation for women's business centers.
  Women-owned businesses contribute greatly to the American economy and 
represent the fastest growing type of American business. With passage 
of today's legislation and legislation from the Small Business 
Committee passed earlier this session, we have acknowledged the 
importance of woman-owned businesses and have made clear our commitment 
to their success. Support for the women's business center program 
translates into successful woman-owned businesses. I commend my 
colleagues for bringing this bill to the floor, I urge all members to 
vote in support, and I salute the Woman Business owners and women's 
business centers across the country.
  Ms. SANCHEZ. Mr. Speaker, in my state and across the country, women 
are playing an ever growing role in the business world. I am pleased 
that the number of women and minority owned businesses in the state of 
California continues to grow.
  With Business Women's Network (BWN) having its Global Summit in 
Washington D.C., now is the perfect time to recognize the growing power 
that women have in the business world. There are delegates from over 47 
states and 97 countries participating in the summit which is 
celebrating diversity in the business world. The major theme of the 
summit is the use of cutting-edge technology to create More Business 
for More Women Across More Borders.
  Knowing the importance of women in the business world and realizing 
the growing influence of BWN, I join my colleagues in asking that 
October 19 be recognized as Global Business Women Day.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise today in support of 
H.R. 1497, the Women's Business Centers Sustainability Act. This bill 
reauthorizes the Women's Business Center Program through fiscal year 
2003.

[[Page H10240]]

  I support this bill because the Women's Business Centers are 
instrumental in assisting women with developing and expanding their own 
businesses. The centers provide comprehensive training, counseling and 
information to help women succeed in business.
  Specifically, this bill authorizes $12 million for fiscal year 2000; 
$13 million for fiscal 2001; $14 million for fiscal year 2002; and $15 
million for 2003. For existing WBC projects, 40 percent would be 
designated and the remaining funds would support new programs. New 
centers would receive up to $150,000 per year in federal funds.
  This bill also creates a 4-year pilot program that makes competitive 
grants for an additional five years to non-profit women's business 
center organizations.
  The Women's Business Center is a part of the Small Business 
Administration and provides long-term career training and counseling to 
potential and current women business owners. They operate in 36 states, 
including the District of Columbia and Puerto Rico.
  Women are starting new businesses at twice the rate of men and own 
almost 40 percent or 8 million of all small businesses in the United 
States. Women of color own nearly one in eight of the 8 million women-
owned businesses or 1,067,000 businesses.
  Women start businesses for a variety of reasons. With the recent 
spate of corporate downsizing in large companies and the various 
changes in the marketplace, small businesses are becoming a vital part 
of the economic stability of the country.
  Women often start businesses because they want flexibility in raising 
their children, they want to escape gender discrimination on the job, 
they hit the glass ceiling, and many desire to fulfill a dream of 
becoming an entrepreneur. We should continue to encourage this current 
trend of women-owned businesses by supporting the Women's Business 
Center Sustainability Act.
  The Women's Business Centers offer women the tools necessary to 
launch businesses by providing resources and assistance with the 
development of a new business. This includes developing a business 
plan, conducting market research, developing a marketing strategy, and 
identifying financial services. The centers also offer practical advice 
and support for new business owners.
  Access to this information is essential to success in small business. 
The Women's Business Centers provide a valuable service to aspiring 
entrepreneurs. I urge my colleagues to support this bill.
  Ms. MILLENDER-McDONALD. Mr. Speaker, I rise in support of H.R. 1497, 
the Women's Business Center Sustainability Act.
  Women in America are starting firms at twice the rate of all 
businesses and currently, women-owned businesses offer jobs to one out 
of every five workers. As of 1999 there are approximately 9.1 million 
women-owned businesses in the U.S. which make up 38 percent of all 
firms in the country. Over 23 million employees worked for women-owned 
businesses, an increase of 262 percent over the 1987-1997 period.
  Mr. Speaker, by the year 2000, it is expected that a woman will own 
one in every two businesses. Based on these statistics, it is clear 
that women are changing the face of American business and women-owned 
businesses need our support to continue their contributions to maintain 
a strong American economy.
  H.R. 1497 will help women's businesses to continue to grow. This bill 
will create a pilot program to allow active centers to recompete, lower 
the grant level for these recompeting centers to $125,000 and provide a 
criteria for the recompetition based on their track record. This bill 
will set aside a portion of the annual funding for a pilot program to 
allow active centers that are providing good services to recompete. If 
there is funding left from that recompetition portion we will allow 
centers that are no longer in the program to recompete as well. This 
bill will also increase the authorized level of the program from $11 
million to $14.5 million.
  Through proper allocation of the available funds, this framework will 
allow the program to continue to expand into economically and socially 
disadvantaged areas and allow minority women-owned businesses the 
opportunity to compete on an equal playing field. However, it is 
imperative that the selection and placement of women business centers 
is objective and equitable. Economically and socially disadvantaged 
areas must also be strongly considered for women business centers to 
allow all people and areas to benefit from this bill.
  I urge my colleagues to support H.R. 1497 because women business 
centers provide training and counseling in topics such as finance, 
marketing, procurement and the Internet economy for women who want to 
start, maintain or expand their business. Currently, there are 37 women 
business centers currently funded and 22 graduated active sites 
operating in 36 states, the District of Columbia and Puerto Rico. All 
centers provide individual business counseling and access to SBA's 
programs and services. A number of the centers are also intermediaries 
for the SBA microloan and loan prequalification program. This wide 
variety of services are essential to the success of women-owned 
businesses and this support will ultimately have a positive impact on 
our economy overall.
  Since the creation of this program in 1988 by a Democratic Congress, 
the Committee on Small Business has been actively finding ways to help 
this program improve and expand on their services and training. 
Originally the program was designed to help start-up centers by 
providing them with federal matching funds throughout a three year 
period until they could become self sufficient. This 3-year cycle was 
adjusted in 1997 to 5 years. An average of 10 new grants are awarded 
each year through a highly competitive process.
  Centers received federal matching grants on a scale. The first year 
they received two federal dollars for every private dollar they raised, 
the second and third year they received the match on a 1 to 1 ratio and 
on their final years for every two private dollars they raised the 
federal government would match it with one dollar. The committee has 
been steadfast in addressing issues affecting women's business centers 
and H.R. 1497 will help in this regard.
  I urge your support H.R. 1497, which continue to strengthen the 
American economy and raise the opportunities for success and economic 
prosperity for all Americans.
  Mr. FORD. Mr. Speaker, thanks to my good friend Tom Udall for his 
hard work in bringing H.R. 1497--the Women's Business Center 
Sustainability Act--to the floor this afternoon.
  Mr. Speaker, H.R. 1497 will help provide resources to women 
entrepreneurs in an effort to help level the playing field and provide 
opportunities to some of the most innovative and forward thinking 
businesspeople in our nation.
  Today, women have finally begun to crack the once impenetrable 
``glass ceiling''. In July, Carly Fiorina became CEO of Hewlett-
Packard, the first female CEO of one of America's 20 largest 
corporations and women such as Meg Whitman, CEO of eBAY, and Joy Covey, 
CFO of Amazon.com, are revolutionizing how we live and work.
  In my home state of Tennessee, we are fortunate to have Cynthia 
Trudell as president of Saturn Motors.
  These individuals should serve as role models to aspiring 
businesswomen in the same way that Mia Hamm and Serena Williams have 
become role models in the world of sport. H.R. 1497 will help do just 
that.
  It will allow more women entrepreneurs to use the resources of the 
Small Business Administration and it will enable their firms to receive 
assistance for a longer period of time, especially during the crucial 
first years of operation.
  It also extends the authorization of the current women's business 
center's program, a program that has been tremendously successful in 
encouraging women entrepreneurs.
  Mr. Speaker women-owned businesses are a huge force for job creation 
and economic growth across the country and, in particularly, my 
hometown of Memphis, Tennessee.
  According to recent surveys, women-owned businesses are growing at 
twice the rate of all business growth and are primary components of our 
high-wage high-tech driven economy. They now account for over 8 million 
businesses, a total of 36 percent of all U.S. firms.
  In Memphis, women-owned businesses represent millions of dollars in 
sales and revenue and in Tennessee, the growth of women-owned firms 
increased 90 percent between 1988 and 1998. Nationally women businesses 
increased close to 80 percent over the same period.
  Women-owned businesses, however, will continue to face significant 
challenges in the 21st century, particularly in the area of access to 
capital we must do all we can to expand opportunity for businesswomen. 
H.R. 1497 is a solid step in that direction.
  Let me once again thank Tom Udall and all of my colleagues for their 
hard work. I am proud to stand with them in support of H.R. 1497.
  Mrs. KELLY. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Burr of North Carolina). 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. 1497, as 
amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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