[Congressional Record Volume 159, Number 90 (Friday, June 21, 2013)]
[Senate]
[Pages S4981-S4983]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
MINORITY WEALTH GAP
Ms. LANDRIEU. Mr. President, as part of Small Business Week, I would
like to mention a fact that is sometimes overlooked: minorities and
women open small businesses at lower rates, and when they are able to
open businesses, they earn less than their white counterparts.
We have received many studies from all over the country that look at
the utilization of minority- and women-owned businesses by public
contracting agencies. As the studies show, minority- and women-owned
businesses are routinely and disproportionately underutilized in public
contracting. In fact, one report that looked at almost 100 studies
showed that regardless of where the study was done or who did it, what
was seen over and over again was a stark underutilization of minority
and women owned contractors.
Studies and litigation about mortgage rates also show us that
minorities face additional, discriminatory hurdles when it comes to
borrowing money. Minority business owners are more likely to have loan
applications turned down than similar white business owners and, if the
minority business owner is lucky enough to get the loan, he or she is
more likely to pay a higher interest rate.
Minority and women business owners are less likely to have the wealth
to start their own businesses because of a history of discrimination in
employment. As a result, when they do start out, they are at a
significant disadvantage.
We have also heard repeated testimony that minorities and women are
excluded from the networks that are essential for small businesses.
Minorities and women are quoted higher prices for supplies or excluded
from the meetings or the clubs where contacts are formed and decisions
are made.
Federal programs that open doors and require outreach to minority-
owned businesses are essential. In fact, when the Federal or local
government stops requiring that prime contractors reach out to
minority- or women-owned businesses, those businesses' participation in
public contracts plummets. For example, when States in the western part
of the U.S. stopped their programs after a court decision that
invalidated some applications of the program, participation in Federal
contracting by minority-owned businesses measurably decreased.
I ask unanimous consent to have printed in the Record a list of
studies that demonstrate these facts.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Recent Expert Reports, Disparity Studies and Congressional Hearings
Addressing Public Procurement and Minority- and Women-Owned Business
Enterprises
Congressional Hearings
2013
Strengthening the Entrepreneurial Ecosystem for Minority
Women, Hearing Before the S. Comm. on Small Business and
Entrepreneurship, 113th Cong. (2013)
2012
Closing the Wealth Gap Through the African-American
Entrepreneurial Ecosystem: Roundtable Discussion with the
U.S. House Comm. on Small Business, 112th Cong. (Sept. 9,
2012).
2011
Closing the Gap: Exploring Minority Access to Capital and
Contracting Opportunities: Hearing Before the S. Comm. on
Small Business and Entrepreneurship, 112th Cong. (2011)
2010
Assessing Access: Obstacles and Opportunities for Minority
Small Business Owners in Today's Capital Markets, Hearing
Before the S. Comm. on Small Business and Entrepreneurship,
111th Cong. (2010)
Minority Contracting Opportunities: Challenges for Current
and Future Minority-Owned Businesses: Hearing before the U.S.
House Committee on Oversight & Gov't Reform, Subcommittee on
Government Management, Organization and Procurement, 111
Cong. (Sept. 22, 2010)
Minorities and Women in Financial Regulatory Reform: The
Need for Increasing Participation and Opportunities for
Qualified Persons and Businesses: Hearing Before the U.S.
House Comm. on Financial Services, Subcomm. on Oversight and
Investigations and Subcomm. on Housing and Community
Opportunity, 111th Cong. (2010)
Full Committee Hearing on Small Business Participation in
Federal Procurement Marketplace: Hearing Before the U.S.
House Comm. on Small Business, 111th Cong. (2010)
2009
Infrastructure Investment: Ensuring an Effective Economic
Recovery Program: Hearing Before the H. Comm. on
Transportation and Infrastructure, 111th Cong. (2009)
The Federal Aviation Administration Reauthorization Act of
2009: Hearing Before the H. Subcomm. on Aviation of the H.
Comm. on Transportation and Infrastructure, 111th Cong.
(2009)
Full Committee Hearing on the State of the SBA's
Entrepreneurial Development Programs and Their Role in
Promoting an Economic Recovery: Hearing Before the H. Comm.
on Small Business, 111th Cong. (2009)
Full Committee Hearing on Oversight of the Small Business
Administration and its Programs: Hearing Before the H. Comm.
on Small Business, 111th Cong. (2009)
The Department of Transportation's Disadvantaged Business
Enterprise Programs: Hearing Before the H. Comm. on
Transportation and Infrastructure, 111th Cong. (2009)
The Role of Small Business in Recovery Act Contracting:
Hearing Before the S. Comm. on Small Business and
Entrepreneurship, 111th Cong. (2009)
Trends Affecting Minority Broadcast Ownership: Hearing
Before the H. Judiciary Comm., 111th Cong. (2009)
Roundtable on Healthcare Reform: Small Business Concerns
and Priorities: Hearing Before the S. Comm. on Small Business
and Entrepreneurship, 111th Cong. (2009)
Doing Business with the Government: The Record and Goals
for Small, Minority and Disadvantaged Businesses: Hearing
Before the H. Comm. On Transportation and Infrastructure,
111th Cong. (2009)
Minority Entrepreneurship: Evaluating Small Business
Resources and Programs: Hearing Before the S. Comm. on Small
Business and Entrepreneurship, 111th Cong. (2009)
The Minority Business Development Agency: Enhancing the
Prospects for Success: Hearing Before the H. Subcomm. on
Commerce, Trade, and Consumer Protection of the H. Comm. on
Energy and Commerce, 111th Cong. (2009)
2008
Full Committee Hearing on SBA's Progress in Implementing
the Women's Procurement
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Program: Hearing Before the H. Comm. on Small Business, 110th
Cong. (2008)
Holding the Small Business Administration Accountable:
Women's Contracting and Lender Oversight: Hearing Before the
S. Comm. on Small Business and Entrepreneurship, 110th Cong.
(2008)
Diversity in the Financial Services Sector: Hearing Before
the H. Subcomm. on Oversight and Investigations of the H.
Comm. on Financial Services, 110th Cong. (2008)
Military Base Realignment: Contracting Opportunities for
Impacted Communities: Hearing Before the H. Subcomm. on
Government Management, Organization, and Procurement of the
H. Comm. on Oversight and Government Reform, 110th Cong.
(2008)
Community Reinvestment Act: Thirty Years of
Accomplishments, But Challenges Remain: Hearing Before the H.
Comm. on Financial Services, 110th Cong. (2008)
Doing Business with the Government: The Record and Goals
for Small, Minority, and Disadvantaged Businesses: Hearing
Before the H. Subcomm. on Economic Development, Public
Buildings, and Emergency Management of the H. Comm. on
Transportation and Infrastructure, 110th Cong. (2008)
Subcommittee Hearing on Oversight of the Entrepreneurial
Development Programs Implemented by the Small Business
Administration and National Veterans Business Development
Corporation: Hearing Before the H. Subcomm. on Rural and
Urban Entrepreneurship of the H. Comm. on Small Business,
110th Cong. (2008)
Women in Business: Leveling the Playing Field: Roundtable
Before the S. Comm. on Small Business and Entrepreneurship,
110th Cong. (2008)
Subcommittee Hearing on Minority and Hispanic Participation
in the Federal Workforce and the Impact on the Small Business
Community: Hearing Before the H. Subcomm. on Regulations,
Health Care, and Trade of the H. Comm. on Small Business,
110th Cong. (2008)
Opportunities and Challenges for Women Entrepreneurs on the
20th Anniversary of the Women's Business Ownership Act:
Hearing Before the S. Comm. on Small Business and
Entrepreneurship, 110th Cong. (2008)
Business Start-Up Hurdles in Underserved Communities:
Access to Venture Capital and Entrepreneurship Training:
Hearing Before the S. Comm. on Small Business and
Entrepreneurship, 110th Cong. (2008)
How Information Policy Affects Competitive Viability of
Small and Disadvantaged Business in Federal Contracting:
Hearing Before the H. Subcomm. on Information Policy, Census,
and National Archives of the H. Comm. on Oversight and
Government Reform, 110th Cong. (2008)
2007
Full Committee Field Hearing on Participation of Small
Business in Hurricane Katrina Recovery Contracts: Hearing
Before the H. Comm. on Small Business, 110th Cong. (2007)
Minority Entrepreneurship: Assessing the Effectiveness of
SBA's Programs for the Minority Business Community: Hearing
Before the S. Comm. on Small Business and Entrepreneurship,
110th Cong. (2007)
Full Committee Hearing on the Small Business
Administration's Microloan Program: Hearing Before the H.
Comm. on Small Business, 110th Cong. (2007)
Increasing Government Accountability and Ensuring Fairness
in Small Business Contracting: Hearing Before the S. Comm. on
Small Business & Entrepreneurship, 110th Cong. (2007)
Diversifying Native Economies: Oversight Hearing Before the
H. Comm. on Natural Resources, 110th Cong. (2007)
Expanding Opportunities for Women Entrepreneurs: The Future
of Women's Small Business Programs: Hearing Before the S.
Comm. on Small Business and Entrepreneurship, 110th Cong.
(2007)
Federal Contracting: Removing Hurdles for Minority-Owned
Small Businesses: Hearing Before the H. Subcomm. on
Government Management, Organization, and Procurement of the
H. Comm. on Oversight and Government Reform, 110th Cong.
(2007)
Full Committee Hearing to Consider Legislation Updating and
Improving the SBA's Contracting Programs: Hearing Before the
H. Comm. on Small Business, 110th Cong. (2007)
Mortgage Lending Discrimination: Field Hearing Before the
H. Comm. on Financial Services, 110th Cong. (2007)
Access to Federal Contracts: How to Level the Playing
Field: Field Hearing Before the S. Comm. on Small Business
and Entrepreneurship, 110th Cong. (2007)
Preserving and Expanding Minority Banks: Hearing Before the
H. Subcomm. on Oversight and Investigations of the H. Comm.
on Financial Services, 110th Cong. (2007)
2006
Reauthorization of Small Business Administration Financing
and Entrepreneurial Development Programs: Hearing Before the
S. Comm. on Small Business and Entrepreneurship, 109th Cong.
(2006)
Northern Lights and Procurement Plights: The Effect of the
ANC Program on Federal Procurement and Alaska Native
Corporation: Joint Hearing Before the H. Comm. on Government
Reform and the H. Comm. on Small Business, 109th Cong. (2006)
Diversity: The GAO Perspective: Hearing Before the H.
Subcomm. on Oversight and Investigations of the H. Comm. on
Financial Services, 109th Cong. (2006)
Strengthening Participation of Small Businesses in Federal
Contracting and Innovation Research Programs: Hearing Before
the S. Comm. on Small Business and Entrepreneurship, 109th
Cong. (2006)
Recent State and Local Government Disparity Studies
California
Metro Disparity Study Final Report, Prepared by BBC
Research & Consulting for the Los Angeles County Metropolitan
Transportation Authority (2009)
Metrolink Disparity Study Draft Report, Prepared by BBC
Research & Consulting for the Southern California Regional
Rail Authority (2009)
OCTA Disparity Study Final Report, Prepared by BBC Research
& Consulting for the Orange County Transportation Authority
(2010)
SANDAG Disparity Study Final Report, Prepared by BBC
Research & Consulting for the San Diego Association of
Governments (2010)
San Diego County Regional Airport Authority Disparity
Authority, Prepared by BBC Research & Consulting for the San
Diego County Regional Airport Authority (2010)
Florida
The State of Minority and Women Owned Enterprise: Evidence
from Broward County, Prepared by NERA Economic Consulting for
Broward County, Florida (2010)
Georgia
Georgia Department of Transportation Disparity Study,
Prepared by BBC Research & Consulting for the Georgia
Department of Administration (2012)
Hawaii
The State of Minority and Women Owned Enterprise: Evidence
from Hawai'i, Prepared by NERA Economic Consulting for the
Hawaii Department of Transportation (2010)
Indiana
Indiana Disparity Study: Final Report, Prepared by BBC
Research & Consulting for the Indiana Department of
Administration (2010)
Maryland
The State of Minority and Women Owned Enterprise: Evidence
from Maryland, Prepared by NERA Economic Consulting for the
Maryland Department of Transportation (2011)
Minnesota
The State of Minority and Women Owned Enterprise: Evidence
from Minneapolis, Prepared by NERA Economic Consulting for
the City of Minneapolis (2010)
The State of Minnesota Joint Availability and Disparity
Study, Prepared by MGT of America, Inc., for the Minnesota
Department of Transportation (2008)
North Carolina
City of Charlotte: Disparity Study, Prepared by MGT of
America, Inc., for the City of Charlotte (2011)
Ohio
The State of Minority and Women Owned Enterprise: Evidence
from Northeast Ohio, Prepared by NERA Economic Consulting for
the Northeast Ohio Regional Sewer District (2010)
Oklahoma
City of Tulsa Business Disparity Study, Prepared by MGT of
America, Inc. for the City of Tulsa (2010)
Oregon
A Disparity Study for the Port of Portland, Oregon,
Prepared by MGT for America, Inc., for the Port of Portland,
Oregon (2009)
City of Portland Disparity Study, Prepared by BBC Research
& Consulting for the Portland Development Commission (2011)
Pennsylvania
City of Philadelphia, Fiscal Year 2009 Annual Disparity
Study, Prepared by Econosult Corporation for the City of
Philadelphia (2010)
City of Philadelphia, Fiscal Year 2010 Annual Disparity
Study, Prepared by Econosult Corporation for the City of
Philadelphia (2011)
City of Philadelphia, Fiscal Year 2011 Annual Disparity
Study, Prepared by Econosult Corporation for the City of
Philadelphia (2012)
Tennessee
City of Memphis, Tennessee, Comprehensive Disparity Study,
Prepared by Griffin and Strong, P.C., for the City of Memphis
(2010)
Texas
The State of Minority and Women Owned Enterprise in
Construction: Evidence from Houston, Prepared by NERA
Economic Consulting for the Northeast Ohio Regional Sewer
District (2012)
Virginia
A Disparity Study for the Commonwealth of Virginia,
Prepared by MGT of America, Inc. for the Commonwealth of
Virginia (2010)
Washington, D.C.
2010 Disparity Study, Final Report, Prepared by Mason
Tillman Associates, Ltd., for the Washington Suburban
Sanitary Commission (2011)
Wisconsin
Disparity Study for the City of Milwaukee, Prepared by D.
Wilson Consulting Group, LLC for the City of Milwaukee (2010)
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