Supporting Women-Owned Small Businesses and Entrepreneurism

Press Release

Tammy has joined her Senate colleagues in supporting two pieces of legislation that encourage women's business ownership and give women-owned small businesses more opportunities to compete. The Women's Small Business Procurement Parity Act and the Women's Small Business Ownership Act would support women-owned businesses by helping improve access to lending, business training and federal contracting.

"Our economy desperately needs to grow more small business start-ups," said Baldwin. "These bills invest in job creation, support our American entrepreneurial spirit, and will help strengthen the economic security of women and their families."

A recent report titled 21st Century Barriers to Women's Entrepreneurship shows significant obstacles for women looking to start or grow their own business. It illustrates how women-owned businesses represent a $3 trillion economic force and support 23 million jobs, yet still face significant barriers compared to their male-owned counterparts. Women entrepreneurs account for just $1 out of every $23 in small business lending, despite representing 30 percent of all small companies. They are also more likely to be turned down for loans or face less favorable terms than men.

Together, the Women's Small Business Procurement Parity Act and the Women's Small Business Ownership Act address these issues by:

Allowing sole-source contracting for federal contracts: This would put women-owned businesses on equal footing with other disadvantaged groups in the contracting process. This would change current law, and aims to help the federal government meet its goal of awarding 5 percent of contracts to women-owned businesses -- a goal that has never been reached since it was established by legislation 20 years ago.

Requiring data on women-owned small businesses: A study with a 2015 deadline will identify industries in which women-owned small businesses are under-represented.

Expanding and improving the U.S. Small Business Administration (SBA) Microloan and Intermediary Lending programs: This would reach more women borrowers who need up to $50,000, as well as reauthorize the SBA Intermediary Lending program -- now a pilot program -- to provide more women access to loans between $50,000 and $200,000. This improves the program to better meet borrowers' needs through more flexible terms and expanded technical assistance.

Increasing funding for the Women's Business Center program: Expanding and improving counseling and training services would reach more women entrepreneurs, especially in low-income areas.

Source