Due to significant Congressional and public interest, the U.S. Small Business Administration (SBA) has reopened and extended until mid-March the comment period on the proposed rule on Women-Owned Small Business Federal Contract Assistance Procedures. The Council submitted a letter commenting on the proposed rule in October. Click here to read NWBC’s letter.
Comments may now be submitted through March 13, 2009; the original comment period was from October 1, 2008, through October 31, 2008. All comments should be submitted online at the Federal eRulemaking Portal: www.regulations.gov, or by mail to: Dean Koppel, Assistant Director, Policy, Planning and Research, Office of Government Contracting, (202) 205-6460, U.S. Small Business Administration, 409 3rd Street, SW., Washington, DC 20416. If you feel strongly about this ruling and the impact on the future of procurement opportunities for women-owned businesses, please file your comment before the deadline.
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A federal appeals court ruled in November that a 22-year-old federal statute which sets a goal of 5 percent of all federal defense contracts being awarded to small businesses owned by “socially and economically disadvantaged individuals” is unconstitutional. The statute allows the Department of Defense to give small businesses owned by disadvantaged groups, such as black Americans, Asian Americans, Subcontinent Asian Americans, Hispanic Americans and American Indians, a preference in the bidding process on contracts.
While the ruling, Rothe Development Corporation v. Department of Defense, does not apply directly to other preference programs like 8(a) or the women’s procurement program, concern exists that the court’s decision could set precedent, thus affecting future programs. Currently, the SBA is reviewing the relevance of the standard for disparity studies discussed in the court’s decision. NWBC staff will continue to monitor the situation and will provide updates as they become available.
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President Barack Obama has named Karen Gordon Mills of Maine to be the next Administrator of the Small Business Administration. Mills is currently president of MMP Group, a private equity investment firm in Brunswick, Maine. In addition, she chairs Maine Governor John Baldacci’s Council on Competitiveness and the Economy and is a member of the Governor’s Council for the Redevelopment of the Brunswick Naval Air Station. Mills also serves on the boards of the Maine Technology Institute and the Maine chapter of the Nature Conservancy, and is lead director of Scotts Miracle-Gro, a public company based in Marysville, Ohio.
Sen. Olympia Snowe (R-ME) recommended Mills for the SBA administrator’s post. No date has currently been set for Mills’ confirmation hearing.
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On January 11, the National Women’s Business Council presented a panel at the United States Association for Small Business and Entrepreneurship (USASBE) Annual Conference in Anaheim, California. NWBC Executive Director Margaret Barton led the panel, entitled “Supporting the Growth of Women’s Business Ownership through Professional and Workforce Development,” which focused on the training and development challenges of women business owners. Panelists included Council member Sandy Bartow, who spoke about the programs of the Jacksonville Women’s Business Center, Dr. Gwen Martin of the Center for Women’s Business Research, and Dr. Donna Stoddard of Babson College.
The panel presented highlights of the Council’s recent town hall meetings and the Center for Women’s Business Research Accelerating the Growth of Businesses Owned by Women of Color research forums, focusing on the human resource and professional development challenges faced by women business owners. Panelists also identified the resources necessary to promote the growth of women-owned businesses and discuss the implications of this research for the policy, academic, and entrepreneurial training communities.
Click here to read the Council’s Education and Workforce Development backgrounder.
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The 2008 Annual Report of the National Women’s Business Council, which details the Council’s activities and policy recommendations from the previous fiscal year, is now available on the NWBC web site.
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On January 14, Council staff member Allison Gilmore attended a briefing on proposed changes to the Federal Reserve’s Survey of Consumer Finances (SCF). During the meeting, staff from the Federal Reserve outlined changes being made to the SCF to compensate for the data that would no longer be collected through the Survey of Small Business Finances (SSBF), which the Fed discontinued in 2007. The 2010 SCF, which is conduced every three years, will include additional questions on the financing of businesses owned by households participating in the survey.
Federal Reserve staff has consulted with NWBC staff since the original decision was announced in 2006. Click here to read the Council’s earlier comments.
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In December, Council Executive Director Margaret Barton and staff member Allison Gilmore met with two Japanese researchers as part of a visit arranged by the Japanese prime minister’s cabinet office. During the meeting, Barton discussed the Council’s programs and other initiatives to support women entrepreneurs. Council staff meets regularly with international visitors to share information about NWBC and the current state of women’s business ownership in the United States.
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The Hot Mommas Project, an award-winning women’s leadership program housed at the George Washington University School of Business, is seeking female role models to write their own case studies of personal and professional leadership as part of a competition ending later this month. Designed to increase the self-efficacy of women and girls through scalable access to role models, the Project is building the world’s largest free online library of women’s case studies as an academic tool to be used in a classroom environment.
Visit www.hotmommasproject.org to learn more about the project. If you, or someone you know, would be willing to describe your personal and professional challenges and lessons in a case story, email support@hotmommasproject.org to nominate yourself or others. Nominated case writers will have the opportunity to write and publish their stories in the Project’s online case study library. Cases must be submitted by midnight on January 31 to be eligible for the competition.
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Last year, the SBA Office of Advocacy launched a new small business blog, “The Small Business Watchdog,” focusing on regulatory issues, small business research, and state regulatory activity. Recent posts include updates on regulations affecting small businesses, unemployment and the economy, and the landscape for small businesses in Washington. Small business owners and other stakeholders are encouraged to join the conversation at http://weblog.sba.gov/blog-advo. For more information, on the Office of Advocacy, visit www.sba.gov/advo.
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The Senate and House Small Business Committees have new leaders, as Congress begins its 111th session this month. Senator Mary Landrieu (D-LA) has become Chair of the Senate Committee on Small Business and Entrepreneurship. Landrieu assumes the committee’s leadership as the former Chair, Senator John Kerry (D-MA), steps down to chair the Senate Foreign Relations Committee. Senator Olympia Snowe (R-ME) will continue to serve as the committee’s Ranking Member, marking the first time two women will lead a full committee in either chamber of Congress. Senator Landrieu has indicated that restoring funding and cabinet-level status to the SBA will be a priority of the committee.
Congressman Sam Graves (R-MO) now serves as Ranking Member of the House Small Business Committee. Representative Nydia Velazquez (D-NY) will continue to serve as the committee’s Chairwoman.
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The House Small Business Committee held a hearing on January 14 to address the current economic challenges facing small businesses. The hearing, entitled “The State of the Small Business Economy: Identifying Policies to Promote Economic Growth,” included testimony from small business advocates and leaders from a variety of industries and associations on ways the government can facilitate the advancement of small business enterprises during the current economic downturn.
During the hearing, several witnesses expressed their support for an expanded role for the SBA in helping small businesses break through the financing barrier. Additionally, there were strong calls for Congress to re-evaluate rules and regulations which increase the costs of doing business. Suggestions included the implementation of targeted tax incentives to increase investment, generate cash flow, and encourage hiring within firms; reduction or short term suspension of payroll taxes; abolishment of the self-employment tax on health insurance; and repeal of the 3% withholding tax.
To view video highlights from the hearing, please click here. To learn more about the hearing, please visit the committee web site.
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