[Congressional Record Volume 147, Number 163 (Thursday, November 29, 2001)]
[Extensions of Remarks]
[Page E2169]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           ACCESS AND OPENNESS TO SMALL BUSINESS LENDING ACT

                                 ______
                                 

                     HON. LOUISE McINTOSH SLAUGHTER

                              of new york

                    in the house of representatives

                      Thursday, November 29, 2001

  Ms. SLAUGHTER. Mr. Speaker, I am pleased to join Representative 
McGovern in supporting the Access and Openness to Small Business 
Lending Act. This legislation would permit the collection of 
demographic information on small business loans.
  Specifically, it would amend the Equal Credit Opportunity Act to 
require lending institutions to ask the gender and race of small 
business loan applicants. The applicant's response would be voluntary. 
I support the Access and Openness to Small Business Lending Act, since 
it would provide a powerful vehicle to monitor the lending market for 
discriminatory practices.
  Today, there are more than 9 million women-owned businesses, up from 
400,000 in 1972. Unfortunately, the main impediment to women 
entrepreneurs achieving success is obtaining the necessary financing to 
get their businesses off the ground.
  According to Business and Professional Women/TJSA, companies owned by 
women account for 38 percent of businesses in the United States and are 
also the fastest growing segment of the business sector. However, 
women-owned businesses receive less than four percent of the $36 
billion in venture capital invested each year.
  A survey by the National Foundation of Women Business Owners and 
Wells Fargo & Co. indicates that most female entrepreneurs rely on 
loans and their personal savings to finance their firm's growth. One 
reason women are not securing funding from venture capital firms, like 
many others, is that women traditionally start retail stores. The 
retail industry is the one business sector in which venture capitalists 
rarely invest.
  To ensure a transparent loan process and confirm that banks are being 
even-handed when making loan decisions for women and minorities, we 
need a bill like the Access and Openness to Small Business Lending Act. 
I urge my colleagues to also support this legislation.

                          ____________________