[Congressional Record Volume 150, Number 57 (Thursday, April 29, 2004)]
[Senate]
[Pages S4719-S4721]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              WOMEN'S SUSTAINABILITY RECOVERY ACT OF 2004

  Mr. FRIST. Mr. President, I ask unanimous consent that the Small 
Business Committee be discharged from further consideration of S. 2267 
and that the Senate proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 2267) to amend section 29(k) of the Small 
     Business Act to establish funding priorities for women's 
     business centers.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. SNOWE. Mr. President, I rise to support S. 2267, the ``Women's 
Sustainability Recovery Act of 2004'' which I recently introduced. 
There is today a critical need to preserve the operations of existing 
the Women's Business Centers currently serving women entrepreneurs in 
almost every State and territory. I am pleased to be joined in this 
effort by Senators Domenici, Chafee, Bond and others. Buy adopting this 
bill today, the Senate is signaling its intention to preserve much-
needed funding for the business centers currently in operation.
  Todaay, more than 10.6 million women-owned small businesses are 
helping to fuel our economic recovery: they employ over 19 million 
Americans and contribute $2.46 trillion in revenues. In my home State 
of Maine, there are more than 63,000 women-owned firms, generating more 
than $9 billion in sales. Numbers like these speak for themselves, 
clear evidence of the success of the Women's Business Centers Program, 
which helps women achieve their dreams of owning a small business, and 
other programs like it. As chair of the Small Business Committee, I am 
committed to a wide range of efforts designed to assist women business 
owners, so that they, in turn, can continue to make a significant 
contribution to our economy.
  The Women's Business Center program was introduced through the 
Women's Business Ownership Act of 1988,and it was made permanent in 
1997. Congress has demonstrated its support for this program time and 
time again; its appropriations have grown from $2 million in 1989 to 
$12.5 million in 2004, and the results of this investment have been 
impressive. In fiscal year 2002, centers reported clients realized a 
return of $161 in gross receipts for every dollar invested in the 
program.
  Even more remarkable is the fact that the SBA's Women's Business 
Center have helped to create or retain almost 7,000 jobs in the United 
States, a success attributable to the centers unique training and 
counseling programs. In fiscal year 2003, the Women's Business Center 
program increased its expected level of delivered services by 17 
percent, providing counseling and assistance to more than 106,600 
clients and thereby exceeding its initial goal of 88,540 clients. To a 
large degree, this increased productivity has been triggered by the 
success of sustainability grants, which extend funding to eligible 
women's business centers.
  This year, insufficient funding for the sustainability grant program 
may force 53 Women's Business Centers to close their doors. While 
current legislation reserves 30.2 percent of the Women's Business 
Center appropriation for the sustainability grant program, this amount 
is not enough to support the 53 centers in jeopardy. By supporting this 
bill, S. 2267, which increases the reserve forth sustainability grant 
program by 48 percent, Congress will ensure that each of the 53 Women's 
Business Centers eligible for sustainability has the opportunity to 
compete for a sufficient pool of funding for fiscal year 2004, and that 
centers will be able to effectively provide valuable technical 
assistance to women entrepreneurs.
  Without this legislation, many of the center may be in jeopardy of 
closing their doors. This would be a significant loss given that some 
of these centers have been part of the program for as long as 9 years 
and, during that time, have proven themselves powerful engines of 
economic development in communities and States across the Nation.
  These centers have been extraordinarily successful in providing 
assistance to women in all walks of life. Women who once received 
public assistance are now operating businesses and creating jobs. Other 
women are transitioning from employee to small business employer, and 
established business owners are creating and manufacturing products for 
sale at home and abroad. The centers nurture women entrepreneurs 
through business and financial planning and assist women business 
owners who need help securing funding for startup and expansion. 
Furthermore, this legislation requires no additional appropriation, 
just a reallocation of current funds.
  I am committed to resolving the women's sustainability funding crisis 
through this bill, and I will continue to work with my colleagues to 
ensure the continued success of women-owned businesses.
  (At the request of Mr. Daschle, the following statement was ordered 
to be printed in the Record.)
 Mr. KERRY. Mr. President, today I join my colleague, Senator 
Snowe, chair of the Senate Committee on Small Business and 
Entrepreneurship, in passing legislation to safeguard Women's Business 
Centers funded through the Small Business Administration. This 
legislation is identical to the Women's Business Center provision I 
introduced as part of S. 2186, the SBA Emergency Authorization 
Extension Act of 2004, on March 9, 2004, and it fixes a funding gap 
that exists for meritorious Women's Business Centers that are 
graduating from the first stage of the program and entering the 
sustainability portion.
  I would first like to thank Chair Snowe for working very closely with 
me on this issue, as we have for the past year and a half. Senator 
Snowe has long been an advocate of the Women's Business Centers and was 
a cosponsor of the original legislation that created the sustainability 
pilot program in 1999. Now, her support for continuing the nationwide 
network of Women's Business Centers has been the catalyst for success 
in the Senate. I commend Chair Snowe for her strong leadership for 
women in business across this country. I would also like to thank all 
of the cosponsors of this legislation and of S. 2266, all of whom have 
shown resounding support for women entrepreneurs and recognize the 
positive impact the Women's Business Centers have on promoting and 
supporting women in business and on strengthening our national economy.
  Second, I want to comment on the Bush administration's proposals to 
eliminate experienced, efficient, and effective Women's Business 
Centers in favor of new and untested centers. Unless this legislation 
can be enacted quickly, the administration will move forward with its 
proposal, which places in jeopardy experienced Women's Business Centers 
in 39 States and eliminates assistance for thousands of women in 
business. While, as this bill demonstrates, I support opening new 
centers to help women entrepreneurs who do not currently have access to 
this important assistance, this should

[[Page S4720]]

only occur when the existing centers, whether in their initial or a 
later funding period, are fully funded. Women entrepreneurs and their 
businesses are critically important to our economy and to U.S. job 
creation, and Women's Business Centers help them succeed. Passing S. 
2267 today will send a strong message to the House of Representatives 
that time is of the essence with respect to this important program, and 
I hope the House leadership will allow immediate passage of this 
measure when they are next in session.
  I would also like to express my dismay that, despite bipartisan 
support from members of this committee, the Republican majority has 
opposed helping women entrepreneurs and blocked the provisions of this 
bill from being included in the two extensions of all SBA programs that 
have already passed the Senate. Those who favor blocking enactment of 
these provisions in hopes of closing the most experienced existing 
Women's Business Centers are potentially depriving thousands of women 
in business access to much needed assistance. This bill is a bipartisan 
compromise intended to maintain an effective Women's Business Center 
network throughout this fiscal year--a compromise that was agreed to by 
Chair Snowe, myself, and the bipartisan leadership of the House Small 
Business Committee. It is supported by women's groups across the 
country.
  This legislation contains a small adjustment to the Women's Business 
Center program that updates an outdated funding formula, without added 
cost to the Treasury. The adjustment changes the portion of funding 
allowed for Women's Business Centers in the sustainability part of the 
program to keep up with the increasing number of centers that will need 
funding this fiscal year. Currently there are 88 Women's Business 
Centers. Of these, 35 are in the initial grant program and 53 will have 
graduated to the sustainability part of the program in this funding 
cycle. These sustainability centers make up more than half of the total 
Women's Business Centers, but under the current funding formula are 
only allotted 30 percent of the funds. Without the change to 48 
percent, all grants to sustainability centers could be cut in half--or 
worse, 23 experienced centers could lose funding completely. In short, 
this change directs the SBA to reserve 48 percent of the appropriated 
funds for the sustainability centers, instead of 30 percent, which will 
allow enough funding to keep open the most experienced centers, while 
still permitting the establishment of new centers and protecting 
existing ones. In the interest of compromise and prompt enactment of a 
workable solution, I fully support the formula change to 48 percent, 
although a change to 54 percent--as introduced as part of my Women's 
Business Center Safeguard Act, S. 2266--would be needed to fully fund 
all sustainability centers.

  I have serious concerns regarding an amendment to our original 
legislation by the Republican leadership. The amendment would allow the 
Small Business Administration to award grants at arbitrary and 
disproportionate levels, instead of following precedent and awarding 
Women's Business Center grants equally to all qualified and 
successfully performing centers. I am deeply concerned that the 
administration may use this authority to shortchange some existing 
centers in order to use part of the 48 percent reserve funding to open 
new centers. While this is within the language of the amendment, it is 
clearly the opposite of the legislation's intent, which is to increase 
available funds for the most experienced Women's Business Centers so 
that they remain in operation. To that end, it is my recommendation 
that the administration use the full 48 percent for sustainability 
centers and that the Agency award grants at equal, or close to equal, 
amounts. The committee has been told that providing any sustainability 
Women's Business Center with a grant less than the minimum grant 
awarded to sustainability centers in fiscal year 2003 would impede its 
ability to operate effectively and successfully under the current 
requirements established by the administration. I am willing to make 
this compromise because it will give all Women's Business Centers the 
opportunity to receive funding; however, it is not intended to undercut 
the funding to any center that has met the SBA's performance standards.
  As the author of the Women's Business Centers Sustainability Act of 
1999, I can tell you that when the bill was signed into law, it was 
Congress's intent to protect the established and successful 
infrastructure of worthy, performing centers. The law was designed to 
allow all graduating Women's Business Centers that meet certain 
performance standards to receive continued funding under sustainability 
grants. This approach allows for new centers to be established--but not 
by penalizing those that have already demonstrated their worth. It was 
our intention to continue helping the most productive and well-equipped 
Women's Business Centers, knowing that demand for such services was 
rapidly growing.
  Today, with women-owned businesses opening at one-and-a-half times 
the rate of all privately held firms, the demand and need for Women's 
Business Centers is even greater. Until Congress makes permanent the 
Women's Business Center Sustainability Pilot Program, as intended in 
the Senate-passed legislation, an extension of authority and increase 
in the portion of appropriated funds available to sustainability 
centers is vital--not only to the centers themselves, but to the 
women's business community and to the millions of workers employed by 
women-owned businesses round the country.
  This bill is urgently needed now to continue the good work of the 
SBA's Women's Business Center network, and I urge all of my colleagues 
in the Senate and the House of Representatives to show their support 
for the growing number of women in business by supporting immediate 
passage of this bill.


                    women's business center program

  Mr. President, as we pass our legislation, S. 2267, the Women's 
Sustainability Recovery Act, I ask my colleague from Maine, the 
chairwoman of the Senate Small Business and Entrepreneurship Committee, 
how the SBA is to implement these changes to the Women's Business 
Center program? I know she has been a leader on this issue, and it is 
my understanding that she encourages the SBA to fully support 
sustainability centers at a level that will enable them to operate 
successfully, before opening new centers.
  Ms. SNOWE. I thank the Senator from Massachusetts for his question. 
As is evident in S. 1375, the bill to reauthorize the Small Business 
Administration, which passed the Senate last September, it is the 
intention of the Small Business and Entrepreneurship Committee and of 
the full Senate to continue funding eligible Women's Business Centers 
before opening new centers. This legislation supports that important 
objective. To that end, I expect the SBA to award Women's Business 
Center grants for the coming fiscal year to each Women's Business 
Center that is properly meeting performance standards. Congress has 
appropriated $12.5 million in fiscal year 2004 for the Women's Business 
Center program. If the amount reserved for sustainability centers under 
this legislation is insufficient to award the full amount of $125,000 
to each sustainability center that meets those standards, I expect the 
SBA to adequately fund eligible centers.
  Mr. KERRY. The committee has been told that many of the Women's 
Business Centers would be unable to meet minimum performance standards 
with a significant reduction in grant funding. Does the chairwoman 
agree that the funding for the sustainability centers last fiscal year 
would be an appropriate funding level for sustainability centers this 
year?
  Ms. SNOWE. To ensure that each center that meets the SBA performance 
thresholds continues to serve women entrepreneurs in every state and 
territory, I expect the SBA to fully expend all the funds reserved 
under this bill for women's sustainability grants. This amount should 
be sufficient to provide funding to eligible women's business centers 
in the sustainability program at or above the minimum grants awarded in 
fiscal year 2003 to women's business centers.
  Mr. KERRY. I commend Chairwoman Snowe for her persistent efforts on 
behalf of this legislation and the more comprehensive SBA 
Reauthorization legislation. Without her strong support and hard work 
on this issue, the future success of this important assistance for 
women entrepreneurs would be in jeopardy.

[[Page S4721]]

  Mr. FRIST. Mr. President, I ask unanimous consent that the Snowe 
technical amendment at the desk be agreed to, the bill, as amended, be 
read a third time and passed, and the motions to reconsider be laid 
upon the table en bloc.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3106) was agreed to, as follows:

               (Purpose: To make a technical correction)

       On page 2, strike lines 9 through 14, and insert the 
     following:
       ``(ii) from the funds reserved under paragraph (4)(A), not 
     more than $125,000 to each eligible women's business center 
     established under subsection (l); and''

  The bill (S. 2267), as amended, was read the third time and passed, 
as follows:

                                S. 2267

       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 Sustainability 
     Recovery Act of 2004''.

     SEC. 2. WOMEN'S BUSINESS CENTERS.

       (a) In General.--Section 29(k) of the Small Business Act 
     (15 U.S.C. 656(k)) is amended--
       (1) in paragraph (2), by adding at the end the following:
       ``(C) Funding priority.--Subject to available funds, and 
     reservation of funds, the Administration shall, for fiscal 
     year 2004, allocate--
       ``(i) $150,000 for each eligible women's business center 
     established under subsection (b), except for centers that 
     request a lesser amount;
       ``(ii) from the funds reserved under paragraph (4)(A), not 
     more than $125,000 to each eligible women's business center 
     established under subsection (l); and
       ``(iii) any funds remaining after allocations are made 
     under clauses (i) and (ii) to new eligible women's business 
     centers and eligible women's business centers that did not 
     receive funding in the prior fiscal year under subsection 
     (b).''; and
       (2) in paragraph (4)(A), by adding at the end the 
     following:
       ``(v) For fiscal year 2004, 48 percent.''.
       (b) Sunset Date.--The amendments made by subsection (a) are 
     repealed on October 1, 2004.

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