[Congressional Record (Bound Edition), Volume 159 (2013), Part 7]
[Senate]
[Pages 10120-10121]
[From the U.S. 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 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

[[Page 10121]]

     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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