Today, the Small Business Administration (SBA) announced a groundbreaking initiative to address undercapitalization, a challenge facing America’s underserved small business owners. Beginning July 1, lenders will no longer have to perform an analysis of cash flow or debt-service coverage on loans of $350,000 or less, thereby eliminating two burdensome requirements. Using the new SBA scoring tool, banks will be incentivized to underwrite more small-dollar loans, and reduce the time needed to originate a small-dollar loan by as much as 50%. The National Women’s Business Council (NWBC) commends Administrator Contreras-Sweet, and the SBA, for this action – this as a significant opportunity for women-owned small businesses to take advantage of the new streamlined and expedited process. Access to capital is one of the NWBC’s main focus areas in advancing the women’s entrepreneurship agenda, and we are pleased the SBA is taking action, putting forth solutions, and expanding opportunity.

“The issues of access to start-up and expansion capital and the relative undercapitalization of women owned businesses at inception remain the toughest obstacles for women entrepreneurs. In the National Women’s Business Council’s FY2013 annual report, we articulated the need for a new streamlined approach to accessing capital, particularly SBA backed loans,” said NWBC Chair Carla Harris.

“The SBA’s new loan requirements is a step in the right direction for America’s underserved small business owners, particularly women entrepreneurs who rely heavily on personal savings to start their businesses. On behalf of the National Women’s Business Council, we enthusiastically support SBA’s improved loan processes and credit scoring approach. This new approach will broaden the pathway for women entrepreneurs to access more small-dollar loans of $350,000 or less, and ultimately gives women a greater opportunity to access the capital they need to start and grow their businesses.”

The National Women’s Business Council continues to address the issue of undercapitalization facing women entrepreneurs and will outline Innovative Strategies for Women to Raise Capital during its upcoming public meeting on June 25th at 11:30am ET. For details regarding the public meeting, click here. For press availability for the NWBC Chair Carla Harris on the topic of SBA’s new loan practices and women’s access to capital, please contact:



Krystal Glass
Communications Director
National Women’s Business Council
O: 202.205.6829