SBA program shortchanges women-owned firms

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A new Small Business Administration program will do little to help women-owned small businesses and should be revamped, a House lawmaker says.

Last month, SBA issued a proposed rule that allows agencies to set aside work in four areas in which it says women-owned businesses are underrepresented: national security and international affairs; coating, engraving, heat treating and allied activities; household and institutional furniture and kitchen cabinet manufacturing; and certain motor vehicle dealers.

With those limits, “few, if any, women-owned small businesses will benefit from the new regulation,” said Rep. Nydia Velazquez, D-N.Y., chairwoman of the House Small Business Committee.

“Of the more than 10 million women-owned small businesses in this country, only 1,247 businesses would qualify” for set-aside contracts under the proposed program, she said.

Federal Times