News From Congresswoman
Nydia M. Velázquez
Representing New York's 12th Congressional District - Brooklyn, Manhattan, Queens
Ranking Democratic Member, House Small Business Committee

For Immediate Release
May 12, 2004

CONTACT: Wendy Belzer, Kate Davis, (202) 225-2361

Velázquez: Bush Administration's Policies Continue to Fail Women Entrepreneurs
Women-owned businesses experience tremendous growth, but still face challenges

WASHINGTON - Congresswoman Nydia M. Velázquez (D-N.Y.), Ranking Member of the House Small Business Committee, today highlighted the challenges facing women-owned businesses, including lack of access to capital, federal contracts, and health care, and how the Bush administration's policies continue to fail women entrepreneurs.

"Throughout the past decade, women-owned businesses have flourished in the United States," Congresswoman Velázquez said. "Nearly half of all privately-owned businesses today are owned 50 percent or more by women. As these women entrepreneurs experience overwhelming growth and expansion, it is unfortunate the Bush administration policies fail their firms. The failure of this administration to provide access to health care, capital and the federal marketplace, strongly impact women business owners since their firms tend to be smaller. These are the same businesses capable of pulling us out of the current economic downturn. And unfortunately, this administration's policies are not creating conditions conducive to enabling these women-owned firms to do so."

At a time when women-owned businesses are growing at a rate nearly twice as fast as all businesses, they rely on federal programs to assist in their start-up and expansion. However, President Bush has either flat-funded or cut several programs that are vital to women business owners, including the Small Business Administration's (SBA) Small Business Development Centers (SBDCs), and Women's Business Centers. In addition, there are barriers to accessing the federal marketplace for women entrepreneurs. The women's procurement program was signed into law in 2000, and has yet to be implemented, causing women business owners to lose billions of dollars in federal contracting opportunities.

Women also face challenges in accessing capital and depend on several of the SBA loan programs, two of which were cut in President Bush's proposed budget - the 7(a) and Microloan programs. The Microloan program has provided nearly half of all its funds to women entrepreneurs over the past five years, and has been slated for termination in the latest Bush budget.

"If we want women entrepreneurs to thrive, and to create the jobs our economy needs, then we must ensure they can overcome these challenges," Congresswoman Velázquez said. "Our nation's women entrepreneurs are among the fastest-growing sectors today, and we must recognize how these economic policies are negatively affecting their growth and ability. As we acknowledge the accomplishments and growth of women-owned businesses, we must continue to guarantee they are successful and strong - the vitality of our economy depends on it."

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