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NEW MISSING: Government Refuses to Implement Law Securing Federal Contracts for Women-owned Small Businesses

November 18, 2004

Women-owned businesses represent 30% of businesses in the United States, and have been courted by political parties on all sides. Secretary of Labor Elaine Chao has even noted that “today’s women-owned businesses are major contributors to jobs and the economic security of our nation.” However, the response by Government agencies, like the SBA have been less than stellar. For example, (privately-held) women-owned businesses received only 2.98% of federal contracts last year. In addition, during the largest increase ever in the number of women-owned businesses—between FY 1998 and FY2003— there was a 7.5% decrease in the average value of loans made to women-owned businesses using U.S. SBA programs. The SBA is also currently in the process of cutting its Micro-Loan program, of which women-owned firms comprise 50% of the recipients of funding.

The U.S. Women’s Chamber of Commerce has been working to combat these discriminatory practices. Currently, the Women’s Chamber of Commerce is particularly concerned with the Women’s Procurement Program, a Public Law passed (as part of SBA reauthorization) four years ago, originally referred to as the “Equity in Contracting for Women of 2000” Act. The Women’s Procurement Program, if put into effect, would “allow contracts, in industries historically underrepresented by women-owned small businesses, to be reserved for competition by women-owned small businesses.” However, this Act has not been implemented by the SBA. On October 29, 2004, the U.S. Women’s Chamber of Commerce filed a complaint against the SBA for failing to implement this Act, arguing that because women-owned businesses are so underrepresented in government contracting, they lost $5.6 billion in federal procurement contracts last year.

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