[Congressional Record (Bound Edition), Volume 145 (1999), Part 3]
[House]
[Pages 4485-4488]
[From the U.S. 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

[[Page 4486]]

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 now there are 
more than 60 women's business centers operating in almost 40 States.

                              {time}  1115

  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

[[Page 4487]]

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. 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.

                              {time}  1130

  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

[[Page 4488]]

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 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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