[Congressional Record (Bound Edition), Volume 145 (1999), Part 5]
[Extensions of Remarks]
[Pages 7013-7014]
[From the U.S. Government Publishing Office, www.gpo.gov]




        THE WOMEN'S BUSINESS CENTERS SUSTAINABILITY ACT OF 1999

                                 ______
                                 

                             HON. TOM UDALL

                             of new mexico

                    in the house of representatives

                        Tuesday, April 20, 1999

  Mr. UDALL of New Mexico. Mr. Speaker, today I rise to introduce the 
Women's Business Centers Sustainability Act of 1999.
  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 percent of all businesses, provide 
employment for over 35 percent of the state's workforce, and generate 
21 percent 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 percent of 
the clientele of these women's business centers have been low-income 
individuals and 47 percent 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 Monotya'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 gross 
     sales have increased by 129 percent. 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 1980s. 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 flashcards, 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, 25 percent of the women's business 
     centers initially funded by the SBA are closed--and of this 
     25 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, I am introducing the Women's 
     Business Centers Sustainability Act of 1999. This legislation 
     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

[[Page 7014]]

     2001 Women Business Center funding from $11 million to $12 
     million per year. Additionally, the legislation will reserve 
     60 percent of these appropriations for grants to new 
     centers--to continue to promote women's business centers in 
     more communities throughout the nation as well as to ensure 
     adequate, continuing support for 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 fellow Members of Congress to join me in 
     supporting this program.

     

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