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Big Trouble for Small Business

After seven years of impotence on the Women's Procurement Program, the SBA is trying to screw over women business owners, and the U.S. Women's Chamber of Commerce is none too happy about it, as evidenced by their press release:

The nation's leading economic advocate for women calls for immediate action by the Court and Congress to reject the SBA's contemptible actions and move to assure that women receive a fair portion of federal contracting dollars ... "This proposed rule -- which throws out the bulk of the findings and recommendations of two prestigious national studies -- clearly continues the dark legacy of the SBA and this Administration's shameful lack of support for women in business."

As Ms.Dorfman points out, the SBA is supposed to be a champion for small business, not a roadblock to seeing them succeed. And while women own thirty percent of all firms in the U.S., they receive barely more than three percent of federal contracts. Still, the SBA has circumvented the intent of the Congress by restricting the scope to four categories and foot-dragging on the implementation.

There was an equally strong condemnation by WIPP President Barbara Kasoff.

"While Washington was quiet this holiday season, the SBA was working to deliver a lump of coal to women business owners," said WIPP President Barbara Kasoff. "This proposed rule demonstrates that women business owners are not important to this administration nor the political process. It is a drastic step backwards in chipping away at the little progress that women made over the past seven years to gain a mere five percent of federal contracts, while half of all privately held companies have a woman owner."

Senator Kerry responded quickly to the administration's narrow interpretation of the resolution he co-sponsored in 2000, and backed women business owners against the SBA decision.

"The Bush Administration's proposed rule is a slap in the face to women business owners. We've been trying for seven years to get the Administration to end unfair contracting practices. By cherry picking data, they've not only done nothing to level the playing field, they've actually shut women out of the process for thousands of different types of contracts. When Administrator Preston testifies before my Committee next month, I will call on the Administration to throw out this rule and put forward a workable, more inclusive proposal that respects women."

I'm pretty sure I wouldn't want to be in Administrator Preston's shoes at that hearing. I've watched the Senator grill people in hearings when he's ticked off, and it's not a pretty sight. Truthfully, I can hardly wait.

In May, Senator Kerry called on the SBA to implement the long overdue program in a letter to Administrator Preston:

Dear Administrator Preston: I am writing on the occasion of the release of the RAND study documenting disparity for women in federal procurement to urge you to implement the long awaited Women's Procurement Program without delay. The Women's Procurement Program, codified in Section 8(m) of the Small Business Act, as enacted into law in 2000, is intended to provide a direct means of increasing the participation of women-owned small business concerns in the federal procurement marketplace.

A quick review of the numbers suggests that a women's set-aside program is sorely needed. According to the last census there are more than 6.5 million women-owned businesses with total gross revenues of $940 billion. Yet, only 3.3 percent of federal prime contracting was done with women-owned firms in 2005, falling well short of the 5 percent set-aside goal.
(more at the link)

In September, Senator Kerry and Senator Snowe held a hearing on the issue of the Women's Procurement Program. Below is a small part of Sen. Kerry's opening statement. You can watch the full video at the committee website. Apologies for the poor video quality, but the point is very clear.

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Video Credit: U.S. Senate Committee on Small Business and Entrepreneurship

We will see the bi-partisan team of Kerry and Snowe fight for women business owners when the full Senate reconvenes. For now, we can add this one to a growing list of Bush administration failures, as they once again rule in their own interest and against that of the American people.

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