Legislation (H.R. 3843) that would reauthorize the National Women’s Business Council (NWBC) was approved, 410-11, by the House on March 15. The bill, which would reauthorize a number of Small Business Administration (SBA) programs, would authorize the NWBC at $1 million each year for FY2001 through 2003 for the NWBC.
Established by Congress in FY1988, the NWBC is a nonpartisan panel designed to advise Congress, the President, and the Interagency Council on Women’s Business Enterprise. The NWBC is comprised of the leaders of national women’s business organizations and prominent women business owners seeking to support and promote women-owned businesses.
In addition to the NWBC, H.R. 3843 would reauthorize the SBA’s domestic microloan program at $60 million for FY2001, $80 million for FY2002, and $100 million for FY2003. Under the program, microloans in amounts less than $25,000 are made to entrepreneurs—often women—who are unable to qualify for credit from traditional lending institutions.
For technology assistance to microloan programs, the bill would authorize $50 million in FY2001, $70 million in FY2002, and $90 million in FY2003. The funds would be awarded by SBA to nonprofit organizations that make microenterprise loans, with the money to be used for those groups to upgrade their computers and other technology.
In addition, H.R. 3843 would reauthorize the SBA’s 7(a) small business lending program at $14.5 billion for FY2001, $15 billion for FY2002, and $16 billion for FY2003. The 504 loan program would be authorized at $4 billion for FY2001, $4.5 billion for FY2002, and $5 billion for FY2003.
These two programs are also designed to assist entrepreneurs who experience difficulty acquiring traditional loans. The 7(a) program authorizes the SBA to guarantee loans for small businesses to use in meeting a variety of needs. In contrast, the 504 program involves a combination of private and public funding. Typically, 10 percent of the funding is supplied by the entrepreneur, 50 percent is supplied by a commercial loan, and 40 percent is supplied by an SBA-guaranteed loan.
During floor debate, Rep. Nydia Velazquez (D-NY) said the SBA “fills a critical gap in our small business community, helping those entrepreneurs who often have great ideas, energy, and drive, but lack that last element they need.” She stated that SBA programs “have played a critical role in moving individuals off welfare,” adding: “Moving from welfare to work is difficult in itself, but moving from welfare to owning your own business is pure inspiration.”
Rep. Sue Kelly (R-NY) echoed Rep. Velazquez’s support for the SBA and its programs. “Without passage of this important legislation, all of these valuable services would be threatened. Our nation’s small businesses and, indeed, our economy, would suffer as a result,” she said.
