Helping Women-Owned and Women-Led Entrepreneurs Start and Grow America’s Businesses

Business Forward WebinarFebruary 6, 2014

SBA Overview: General Programs

SBA’s mission is to help U.S. small businesses start, grow, and succeed.- $90B portfolio of loan guarantees through 5,000

lenders- $2.6B in growth capital via Small Business Investment

Companies (SBIC)

- Ensuring 23% of federal contracts go to small firms - $100B annually

- Free counseling to 1million entrepreneurs per year- 78 field and regional offices; 1,000 Small Business

Development Centers; 106 Women’s Business Centers; 12,000 SCORE volunteers

Capital

Contracting

Counseling

Region 1Region 2Region 3Region 4Region 5Region 6Region 7Region 8Region 9

Region 10

SBA FootprintLegend

SBA District Offices (68)

U.S. Export Assistance Centers (19)

Small Business Development Centers (938)SCORE Centers (356)

Women’s Business Centers (110)

Veterans Business Outreach Centers (16)

* Microlenders (199)

Counseling ServicesCounseling SBA’s vast bone-structure

reaches all U.S. small businesses

OWBO Overview: SBA Accomplishments for Women

• The goal of SBA’s Office of Women’s Business Ownership (OWBO) is to help increase the number of women entrepreneurs starting and growing businesses by working with SBA program offices and external organizations

• Over the course of the last few years SBA has: 1. Increased women’s access to capital2. Helped more women get into the federal contracting

space3. Supported women in getting the skills they need to

start and grow their business4. Supported women veterans as they start and grow

businesses5. Helped female encore entrepreneurs start and grow

their businesses

SBA Overview: General Programs

- SBA made $17.2B available through 57,831 SBA loans to women-owned businesses between January 2009-December 2013

- In CY2013, SBA made $3.8B in capital available to women, a 31% increase since 2009

1. Increasing Women’s Access to Capital

- In FY2012, SBA made 22.25% of the 23% goal or $89.9B in federal small business eligible contracting dollars going to small businesses compared to 21.65 in FY2011.

- The NDAA of 2013 removed the caps on contracts that were eligible for the Women Owned Small Business Contracting Program, enabling contracting officers to set-aside contracts of higher dollar amounts.

- SBA in partnership with WIPP and AmEx Open created the ChallengeHER campaign.

2. Helping More

Women Get Into

Federal Contractin

g

SBA Overview: General Programs

- SBA’s Women’s Business Centers (WBCs) represent a national network of over 100 have counseled and trained more than 270,000 entrepreneurs in FY2012 and 2013.

- All of SBA’s resource partners, including WBCs, Small Business Development Centers and SCORE chapters have counseled and trained over 850,000 in FY2012 and 2013.

3. Counseling Women to Help them Start and

Grow Businesses

- SBA made several investments in women veterans in FY2012 and 2013 by launching Boots to Business: from Service to Startup, training over 1,300 women.

- We also completed six V-WISE programs in cities across the country, serving almost 1,000 female veterans and military spouses.

4. Supporting

Women Veterans as They

Start and Grow

Businesses

SBA Overview: General Programs

- SBA and AARP entered into a partnership to counsel, train and engage over 100,000 new and existing encore entrepreneurs and give them the tools they need to start, grow and succeed in 2013.

5. Helping Female Encore

Entrepreneurs Start and

Grow Businesses

• SBA continues to identify opportunities to support women-owned and women-led entrepreneurs as they start and grow America’s businesses

• OWBO works closely with the National Women’s Business Council to identify opportunities to better serve women by utilizing research and recommendations the Council provides to SBA, the White House and Congress every year.

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The NWBC:

• Conducts research on issues important to women business owners and their organizations

• Makes pivotal policy recommendations to the President, Congress, and the SBA to increase economic gains for women entrepreneurs

• Provides a platform to expand and improve opportunities for women business owners and their enterprises

NWBC Overview: General Mission and Annual Report

Access to Capital Access to Markets

Job Creation & Growth Data Collection

Advancing Women

Entrepreneurs

04/08/2023 www.nwbc.gov 9

$

• Increase lending efforts by credit unions and community banks to women-owned businesses

$

• Increase resources available to women business owners on capital/financing strategies

$

• Address creditworthiness and capital challenges for startups through exploration of new ways of credit scoring and promotion of crowdfunding

NWBC ‘s Recommendations: Access to Capital

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More women supplying products and services in the federal marketplace and in corporate supply chains will result in more competition, choice, and

quality in the marketplace.

Identify and promote concrete best practices in government procurement

Identify industries and links in supply chains that are ripe for entry of women-

owned businesses

NWBC ‘s Recommendations: Access to Markets

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Innovate

ImpactScale

Increase participation of women-owned businesses in incubators and accelerators

Develop a targeted strategy for participation of women-owned businesses in all government program areas

NWBC ‘s Recommendations: Job Creation and Growth

04/08/2023 www.nwbc.gov 12

Consumer Financial Protection Bureau

• NWBC Recommendation: The Consumer Financial Protection Bureau (CFPB) to begin collection of data on demand for credit

Census Bureau • NWBC Recommendation: The Census

Bureau to implement an annual Survey of Business Owners

NWBC ‘s Recommendations: Data

Before ACA, Small Employers Faced Many Obstacles to Covering Workers

Today, under ACA, insurance companies:• Face limits on administrative spending. • Must disclose and justify proposed rate

hikes of 10% or more• Can’t charge higher rates or deny coverage

because of a chronic or pre-existing condition

• Cannot charge higher rates for women, and face limits on charging additional premiums for older employees

• Must pool risks across small groups creating larger pools like large businesses

• Cannot annual dollar limits on coverage

• Must offer plans that provide a core package of “Essential Health Benefits”

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• Too few choices

• Higher premiums and unpredictable rate increases

• Higher rates for groups with women, older workers & those with chronic health concerns or high-cost illnesses, in most states

• Waiting periods or no coverage for individuals with Pre-Existing Condition

The Affordable Care Act: Opportunities for Women

Individuals/Self Employed

• Must have coverage by April 1st to avoid penalty (sign up by March 15th) or qualify for exemption

• Individual Marketplace open enrollment through March 31st

• May qualify for tax credit

Small Business (<50 FTEs)

• May qualify for Small Business Healthcare Tax Credit

• SHOP Marketplace

Larger Businesses (≥50 FTEs)

• Starting in 2015 must offer coverage to full-time employees or possibly pay penalty

• Starting in 2015 must report healthcare coverage data for employees to IRS

The Affordable Care Act: Small Businesses and Individuals

SBA’s Women’s Agenda: Connecting with NWBC’s Recommendations

Access to Capital

Access to Markets

Job Creation and Growth Data

Women Entrepreneurs (WE) Power America

• Help increase loans to women, especially high-dollar loans

• Enhance outreach opportunities with banks

• Continue to participate in WEChallengeHER Campaign

• Identify private sector supply chain opportunities

• Focus on increasing the number of women starting businesses in STEM fields

• Identify opportunities to help women focus on growth-oriented strategies ($5M intensive entrepreneurship education)

• Participate in conversations with other agencies on data re: women entrepreneurs

• Identify opportunities to highlight data in SBA programs

Opportunities for Engagement:Public/Private Sector Partnership

• Do you have existing programs focused on women entrepreneurs that we could help support or partner with you on?

• Do you have ideas for existing gaps in the women’s entrepreneurship space where SBA or NWBC could support efforts?

• Other questions?

ResourcesWebsite: www.sba.gov

Facebook: http://www.facebook.com/SBAgov

Twitter: http://www.twitter.com/sbagov

Youtube: http://www.youtube.com/sba

NWBC: www.nwbc.gov

Women’s Business Centers: www.sba.gov/women