Implement uniform procurement standards and procedures across all agencies

Participants described the process of preparing and presenting offers, bids, and quotes
as complicated and confusing. They advocated for legislation to standardize the
procurement process across all federal government agencies.

Establish a clearinghouse for information on government contracting and
subcontracting opportunities for women-owned businesses’

Women business owners concurred that while there is an abundance of information about
federal contracting opportunities, much of the information is so poorly organized that it is
very difficult to identify set asides for small and women-owned business. They called for
the creation of a central clearinghouse to sort
and categorize available opportunities.

The Senate Small Business Committee,
chaired by Senator Mary Landrieu from é
Louisiana, has recognized the importance of | Create mechanisms that connect small women-

creating parity among the contracting | owned businesses with large companies that
programs, and has previously proposed ts 8
legislation to address this concern. | have been successful prime contractors

Unfortunately, efforts to push a parity bill . Sa
through both chambers of congress have Meeting participants requested government

proven unsuccessful thus far. assistance to help them successfully partner
with large prime contractors in the same
industry.

“TEN YEARS AGO, | WAS IN A POSITION WHERE | HAD TO DO PAYROLL TAXES AND | HADN'T
DONE THAT BEFORE. | WAS REAL NERVOUS. BuT | WENT TO THE IRS WEB SITE, DOWN-
LOADED THE PUBLICATION FOR EMPLOYERS, AND READ THE SECTIONS THAT APPLIED.
AFTER THAT, | CALLED THE IRS THREE OR FOUR TIMES A DAY. JUST KNOW THAT FREE
HELP IS OUT THERE.”

Participants in the break-out session on taxes believed that the IRS was an adversary to small
businesses for three main reasons. First, the participants believed that estate taxes, which tax
an individual's right to transfer property at his or her death, placed an undue burden on their
ability to perpetuate their enterprises. Second, the women business owners were outraged
that they were often subject to an alternative minimum tax liability even though they did not have
high incomes or claim special tax benefits. Third, the group believed that they needed the help
of expensive accountants and lawyers to address their tax issues.


Women business owners urged the federal government to cancel or forgive all or part of their
SBA loans in recognition that their businesses were deleteriously impacted for reasons
beyond their control (i.e. a catastrophic hurricane and subsequent flooding).

Provide protracted repayment plans for women-owned businesses affected by
Katrina

Recognizing that it was unlikely for the federal government to forgive any part of their previously
issued loans, participants affected by Katrina urged lawmakers to allow them additional time
to payback existing SBA loans.

Implement special credit score interpretations that factor in payment delinquencies
caused by natural disasters

Town hall attendees asked the federal government to implement special credit score
interpretations that would place a greater emphasis on their payment histories before
Katrina.

Create additional disaster loan programs

Many of the women business owners reported that they were unable to secure disaster
loans following Katrina because they had become delinquent on other loans and bills.
They stressed the need for loan programs that would not penalize disaster victims for
financial difficulties precipitated by the disaster.

Facilitate networking opportunities with women business owners who have
successfully acquired capital

Attendees found that networking with other women business owners, who were familiar
with the local landscape, was the best way to identify viable sources of capital. During the
session, the group was able to generate information about which lenders had favorable
interest rates, ways to find angel investors, and which local lenders to avoid.

Create loan programs for businesses awaiting payment on a government contract

The government is required to pay processed invoices within 30 days of payment
approval, not within 30 days of the invoice issue date. Thus, the invoice may go through
multiple channels before the final approval is secured and the payment process clock
begins. As a result, small business owners rarely receive payment within 30 days of
completing a project.

For many small businesses that operate with narrow profit margins, the complexity of the
government’s payment process is daunting. For those firms working with limited cash flow,
the protracted date of payment can result in dire consequences. Participants at the town
hall meeting recommended that the government establish loan programs to bridge the cash

4


“| DO ALOT OF LECTURING ON ENTREPRENEURSHIP AT LOCAL COLLEGES. AFTER ONE
LECTURE, | WAS TALKING TO A YOUNG WOMAN WHO HAD JUST GRADUATED WITH A DEGREE
IN ACCOUNTING AND WANTED TO WORK FOR SMALL BUSINESSES. | MENTIONED SOMETHING
ABOUT QuickKBOOKS AND SHE RESPONDED THAT SHE HAD NOT STUDIED THE SOFTWARE.
NINETY PERCENT OF SMALL BUSINESSES USE QUICKBOOKS. SO IT JUST GOES TO SHOW
THAT THE EDUCATIONAL SYSTEM IS NOT FOCUSED ON HOW A SMALL BUSINESS FUNCTIONS.”

Participants in the education and workforce development session agreed that it was

exceedingly difficult to find skilled, healthy workers in the post-Katrina environment. The
women business owners stated that many of the skilled laborers who evacuated before
Katrina never returned, leaving behind a workforce

that ‘was woefully unprepared to meet their needs. The Greater New Orleans Community Data
Available applicants had not been trained on the Center reports that the population of New
software applications most utilized by small Orleans fell from 455, 188 before Katrina,
business owners, and did not have the “soft skills” to 208,548 after the storm. In 20089, only
to effectively interact with the public. Accordingly, Soto OF ne ponuiaton Hadretumedtonie,
the group desperately needed to provide on-the- ely’

job training programs and/or apprenticeships to
address worker deficiencies. They, however, did not have the time or resources to do so.

Attendees also observed that the scarcity of mental health services and skyrocketing housing
costs in the region negatively affected their efforts to find good employees. They explained
that many workers were unable to perform satisfactorily on the job because they suffered from
untreated depression, anxiety, and post-traumatic stress disorder (PTSD) precipitated by the
storm. The high cost of housing had also forced many families to relocate to other parishes
and states.

The participants suggested the following initiatives to help them address their workforce
concerns.

Create tax incentives and/or a workforce compensation policy for small businesses
that provide employee training and utilize apprenticeship programs

The women business owners stated that much of the available workforce was ill prepared to
meet their needs. Therefore, they advocated for tax incentives to help them fund on-the-job
training programs for their employees. They also urged the federal government to provide
incentives that would allow retirees to re-enter the job market to train and mentor new
employees without facing penalties such as losing their Social Security and Medicare benefits.


Lastly, the women business owners voiced frustration over the lack of transparency in
healthcare pricing. They agreed that it was
impossible for conetiels to make cost-effective The Agency for Healthcare Research and
decisions if they did not first understand the true Quality reports that an employee in a firm

cost of healthcare products and services. with fewer than 10 employees pays 18%
more for health insurance than an employee

in a firm with 200 or more employees.”

The affordable healthcare discussions generated
the following policy recommendations.

Support healthcare legislation that:

1. Creates federally-regulated association health plans. Participants supported the
creation of Association Health Plans, which allow small businesses to come together
through associations to purchase insurance coverage as a group.

2. Requires everyone to participate in employer-offered insurance plans.
Attendees believed that true cost containment for small businesses could only be
achieved if every employee was required to participate in employer-offered plans.

3. Caps premiums for older participants so that they pay no more than three times
what younger participants pay. Meeting participants suggested that the
generational ratio employed by insurance companies should be capped at 3:1 (i.e., the
premiums charged the oldest adults could be no more than 3 times those charged

younger adults).

4. Increases health insurance competition in Louisiana. The women business
owners supported laws that would increase competition by repealing blanket antitrust
exemptions, giving antitrust enforcers the authority to investigate evidence of collusion
within the health insurance industry, and allowing insurers to sell policies to residents
across state lines.

Empower consumers and their doctors to make decisions about the best course of
treatment

The women business owners were adamant that decisions about standards of care should not
be left to a government entity or insurance providers, but remain with individual consumers and

their physicians.
Create a national campaign to educate consumers about the true cost of healthcare

products and services

Attendees stressed the need for a national campaign to educate the general public about the
true cost of healthcare products and services. They believed that such a measure was the
best way to empower consumers to make cost-conscious decisions about care.


flow gap by providing cash advances on anticipated government contract payments.

Create tax credits for angel investors

The group supported legislation, like the Angel Fund Investment Bill, that would create tax
credits for “angel investors,” individuals who provide capital for business start-up or growth.
Angel investors are often the only source of funding for small businesses that do not meet the
lending requirements of traditional banking institutions.

“OVER THE LAST NINE YEARS, MY COMPANY’S MEDICAL PREMIUMS HAVE INCREASED 250%
WHILE THE BENEFITS WE CAN OFFER HAVE DECREASED. WE USED TO HAVE A $5 MILLION
CAP FOR INDIVIDUAL ILLNESS, NOW IT’S DOWN TO $1 MILLION. INSTEAD OF BEING ABLE TO
PUT MONEY IN MARKETING, BUSINESS DEVELOPMENT, OR TECHNOLOGY, WE HAVE TO PUT

OUR MONEY IN HEALTHCARE PREMIUMS.”

The healthcare discussion was particularly passionate because many of the women business
owners in attendance did not have health insurance or were facing the possibility of losing their
coverage due to increasing costs. Accordingly, their primary concern was identifying and

According to a survey by The Henry J. Kaiser
Family Foundation, three in five firms (60%)
offered coverage to workers in 2005, down
Significantly from 69% in 2000 and 66% in
2003. The drop stems almost entirely from
fewer small businesses offering health
benefits, as nearly all businesses (98%) with
200 or more workers offer such benefits."

promoting healthcare reforms that would make
individual and group plans more affordable.
The group stated that many of the available
options were too costly because: 1) small
businesses could not combine to take
advantage of the savings enjoyed by large
companies; 2) younger, healthy employees
often opted out of employee-sponsored plans;
3) older employees were forced to pay

premiums that were significantly higher than their younger counterparts; and 4) there were few
insurance companies to choose from in the gulf coast region.

The entrepreneurs also talked at length about who would set the standards of care in the new
healthcare landscape. The group adamantly opposed any provision that allowed a
government entity or insurance provider to dictate the treatment process that a clinician
should follow for a certain type of patient, illness, or clinical circumstance. They wanted
physicians and patients to be empowered to make important medical decisions. The group
was also wary of plans that did not give consumers the flexibility to seek treatments outside of

the standard of care.


Conversely, the majority of firms that survived Katrina did so in large part because they had
previously established some type of disaster recovery plan. They, however, needed
assistance implementing certain aspects of those plans. The seasoned owners wanted tools
and services that would allow them to protect and access copies of their insurance policies,
tax returns, mortgage loans, and other documentation required by the Federal Emergency
Management Agency (FEMA) and SBA to secure disaster loans and other services. They
also requested assistance from the federal government to secure alternative office space
following a natural disaster.

Women business owners in the business continuity and sustainability session put forth the
following policy recommendations.

Develop a resource guide of the best business continuity planning resources and
services and business interruption insurance providers

The women business owners expressed the need for a comprehensive guide that compiles a
list of resources and services offered by trusted providers like The Institute of Business and
Home Safety, The Association of Contingency Planners, SBA, The American Red Cross,
FEMA, and reputable business interruption insurers.

Create a government-sponsored universal database where business owners can
upload and access pertinent business records

The entrepreneurs stated that many of their important documents were destroyed during
Katrina. Hence, they encountered difficulties filing insurance claims and applying for SBA and
other disaster loans. The group requested that the government create a secure, permanent
national database where small businesses could upload copies of their important papers for
easy retrieval in case of an emergency.

Provide rental assistance funds, “vouchers,” and coordination assistance to help
small business owners secure office locations after a disaster

Many of the attendees were able to get government assistance to secure housing following
Katrina. Yet, none received funds to find alternative office space to resume their business
operations. Thus, participants asked for federal “vouchers” to help them secure office space
following a natural disaster. They also wanted the government to coordinate office sharing
arrangements whereby individual companies could schedule time to use offices and
equipment.


x * «+ *%& € * *¥

Nationat WoMEN’s
Business CounciL

ADVISORS TO THE PRESIDENT,
ft CONGRESS AND THE SBA


“Wat I’VE EXPERIENCED IS THAT | WAS A SUBCONTRACTOR ON A WINNING BID. BUT FOR
POLITICAL REASONS, | WAS BOOTED OUT BEFORE THE CONTRACT COMMENCED. THE
‘PRIME” WON THE CONTRACT BASED ON MY QUALIFICATIONS. IT’S NOT RIGHT THAT ONCE
THEY WON THE JOB | WAS OUT THE DOOR.”

Women business owners who attended the procurement break-out session identified
three obstacles that impeded their efforts to secure federal contracts. First, the
participants stated that many of the current SBA policies aimed at generating
opportunities for women-owned businesses were ineffective. They stressed the need for
a formal women-owned business certification program, enforcement of the 5%
government-wide procurement goal, and implementation of a system designed to hold
prime contractors accountable for fulfilling their obligation to utilize women-owned
businesses (and other small business sub-contractors) included as preconditions of
winning contract awards.

Second, participants complained that the procurement process was so complex, time
consuming, and inconsistent that the cost of participating often outweighed the potential
benefit of receiving a federal

According to a report by the National Association of contract. The process was further
Women’s Business Owners, although women entrepreneurs | complicated by the government's
account for 33% of all entrepreneurs in the U.S., the overall | contract bundling policy and recent
share of dollars the federal government spent on women- 2
owned smaill businesses was only 3.4%, up from 2.89% in | Courtrulings that elevated the

FY 2003. If women business owners had received 5% | Historically Underutilized Business
(rather than 3. 4%) of the $340 billion spent by the federal Zone Program (HUBZones) above
government with prime contractors, they would have a) ‘
received $17 billion in contracts in FY 2006—$5.4 billion | _ other SBA administered contracting
more than they actually did receive.> programs.

Third, attendees lamented that they
did not have access to mentorship by large prime contractors who traditionally have
greater resources, knowledge, and experience in successfully securing federal contracts.

The town hall attendees believed that the following reforms were necessary to level the
federal procurement playing field.

Establish a formal SBA certification program for woman-owned businesses

Meeting attendees were resolute about the need for an SBA administered assistance
program to help businesses owned and operated by women gain a foothold in federal
government contracting.

11


Rebuild the mental healthcare system in metropolitan New Orleans

Meeting attendees agreed that much of the local population suffered from mental illnesses
caused by Katrina. They were emphatic that increasing the availability of mental health
treatment was essential to building a competent workforce.

Explore strategies to increase the supply of affordable housing in greater New Orleans

Data shows that fair market rents in the greater New Orleans region have increased 45% in
the last two years. The skyrocketing costs have made it impossible for many families to
remain in the area. Accordingly, the women business owners asked for government-mandated
price controls to regulate the amount of rent landlords can charge tenants, and additional
federal efforts to make affordable housing available in the city.

“| STARTED MY ACCOUNTING AND TAX SERVICES BUSINESS FIVE YEARS AGO. | WAS IN A JOB
THAT | ABSOLUTELY LOVED, BUT IT REQUIRED A LOT OF NIGHTS AND WEEKENDS. | HAD
CHILDREN SO | WAS LOOKING FOR THE FLEXIBILITY TO HAVE MY OWN HOURS, WORK AT MY
OWN PACE, AND BE MY OWN BOSS.”

Participants in the microenterprises session represented organizations and businesses that
had gross revenues less than $500,000 and/or fewer than five employees. While they shared
many of the concerns articulated by other small business owners, they also identified several
challenges that were unique to their enterprises. Their issues included:

¢ Keeping up with rapidly changing technology;

e Finding inexpensive ways to market their businesses;

¢ Balancing family obligations;

¢ Overcoming negative perceptions about the capabilities of women—owned firms;

° Finding microloans under $50,000; and
¢ Building credit histories.

The group prioritized initiatives that would:

¢ Provide for publicly available technical assistance to help their businesses grow;

¢ Provide small business incubators that offer office space, entrepreneurial training,
and management assistance to emerging businesses;

* Create SBA set asides for microenterprises;

° Curb the federal government's practice of contract bundling;

e Provide networking opportunities with other owners of small and microenterprise
businesses;

¢ Increase the availability of microloans under $50,000; and

¢ Create credit-building accounts and programs.

10


Participants in the affordable healthcare discussion also proffered two suggestions they
believed would make insurance more affordable for small businesses:

Bundle related healthcare services in packages to make them more affordable

Many companies bundle services to increase cost savings. For example, travel agencies offer
significant discounts to travelers who purchase rental car, airfare, and hotel vacation

packages. The group suggested that insurance companies should follow a similar model by
bundling medical tests and procedures at a discounted rate. Under the model, a woman’s
package might include annual obstetrics/gynecological examinations, mammograms, and like
services at a discounted rate.

Create a two-tier system where government-run insurance programs and private
insurance providers offer distinctly different services

Attendees discussed the possibility of creating a two-tiered system where wellness and
preventative programs would be offered by a government-run health insurance program, while
private insurers would provide plans to treat illnesses.

“/'M IN THE BUSINESS OF SELLING GIFT BASKETS. WE WERE BACK IN OPERATION 6 WEEKS AFTER
KATRINA BUT THE PHONE WASN’T RINGING, NOTHING WAS GOING ON. I'D SIT IN THE SHOP AND
READ THE TIMES PICAYUNE. THE PAPER HAD A LOT OF ADS FROM DOCTORS AND OTHERS
BUSINESSES THAT HAD RELOCATED THEIR OFFICES. | STARTED WRITING NOTES TO EACH
BUSINESS CONGRATULATING THEM ON REOPENING AND ASKING THEM TO THINK ABOUT MY
BUSINESS IF THEY NEEDED ANYTHING. A FEW MONTHS LATER, A LAW FIRM THAT WAS
RETURNING TO THE CITY CALLED AND PLACED A LARGE ORDER BECAUSE THEY HAD GOTTEN MY

NOTE.

Participants in the business continuity and sustainability workshop fell into two distinct groups;
those who started new
businesses after Katrina and

The Institute for Business and Home Safety website states that those whose businesses
at least 1/4 of all businesses that close because of a disaster survived post Katrina.

never reopen. Small businesses are especially vulnerable,
because few of them have the resources or knowledge to assess 2
disaster risks and develop comprehensive mitigation and recovery The new business owners were
plans. able to identify the natural, man-

made, political, and
technological events that
threatened their business operations. However, they did not have the tools or time to develop
comprehensive recovery plans to mitigate those threats. The group also needed help to
determine the appropriate amount of coverage when purchasing business interruption
insurance.



“| HAD AN SBA LOAN WHEN KATRINA HIT. THE BANK PUT MY LOAN IN LIQUIDATION AND
TOOK ALL OF MY INSURANCE MONEY. SINCE MY LOAN WAS IN LIQUIDATION, | WASN’T
ELIGIBLE FOR AN SBA DISASTER LOAN. | HAD NO WAY TO ACTUALLY FIX MY HOUSE OR
RESTART MY BUSINESS. | WAS IN A CATCH-22 AND DID NOT KNOW WHAT TO DO.”

Participants in the access to capital session stated that they needed assistance in three
main areas: 1) mitigating the damage Katrina wrought on their personal and business
finances; 2) identifying non-traditional funding sources; and 3) bridging the gap between
being awarded a government contract and getting paid for the contract.

First, many of the women business owners lost their jobs, homes, and cars in Katrina.
Accordingly, they became delinquent on their bills and loan payments, which reduced their
credit scores and made them ineligible for many of the disaster loan programs.
Participants asked for loan forgiveness, protracted repayment plans for their existing loans,
special credit score interpretations, and additional disaster loan programs that took into
account their unique circumstances.

Second, the majority of the participants were engaged in service-related businesses that did
not involve “hard collateral.” They agreed that their circumstances and the nature of their
businesses prevented them from obtaining loans from traditional banks. Hence, the attendees
expressed a need to find alternative means to access funds to start-up and grow their
enterprises. They concurred that networking with other women business owners was the best
way to identify angel investors, non-profit lenders, and economic develop commissions that
were receptive to their needs.

Third, the lag time between being awarded a government contract and receiving payment
on their invoices presented a significant challenge for many of the attendees. They
stressed the need for loans and other programs to help them remain afloat while awaiting

payment.

Attendees recommended the following policy initiatives to remove the aforementioned
impediments and address the challenges identified above.

Provide loan forgiveness for women-owned businesses that were devastated by
Katrina

The women stated that it was patently unfair to expect that they would be able to rebuild their
firms to their pre-Katrina status, and scrape up the money to pay back business loans for an
enterprise that was literally struggling to keep the doors open.


wit regard tothe thicc issue , The Policy and Taxation Group reports that under the
participants were pleasantly surprised current tax system, it may be cheaper to sell a family-
to learn of a number of free tax owned business before death rather than pass the
a ci business to one’s heirs. Growing businesses cannot remain
resources available on the IRS website competitive in a tax regime that imposes rates as high as
and through the local IRS office. They 47% upon the death of the founder/owner.?

encouraged the IRS to increase its
marketing efforts to combat common
misconceptions about the resources and services available through the agency.

Attendees strongly urged the IRS to consider the following policy recommendations.
Repeal estate and alternative minimum taxes

Women business owners encouraged the repeal of both laws in favor of reforms that
encouraged growth and made it easier for owners to pass on family businesses.

Promote IRS resources and services for small businesses

Participants strongly urged the IRS to aggressively market the services and resources
available to small business owners, especially resources such as the Issue Management
Resolution System and the Taxpayer Advocacy Service.

The discussions and policy recommendations generated during the New Orleans town hall
meeting show that local women business owners are in dire need of additional programs and
resources to help them not only start-up and grow their enterprises, but to also mitigate the far-
teaching effects of Katrina. Many of the programs requested by participants are already in
existence. Hence, some of their concerns can be addressed by creating and expanding the
marketing work of existing services. To accommodaie this effort, funding sources will need to
increase allocations to Women Business Centers, Small Business Development Centers,
SCORE, and other federal, state, and local programs serving women entrepreneurs and
business owners.

In addition to these marketing efforts, women business owners stressed the need for
additional assistance to help them:

¢ Assess disaster risks and develop comprehensive mitigation and recovery plans;

¢ Finance on-the-job training and apprenticeship programs;

* Identify and promote healthcare reforms and legislation that would make individual and
group insurance plans more affordable;

* Become more knowledgeable about and competitive in the federal procurement
process; and

¢ Identify nontraditional sources of capital.

14


7 SBA has a portal, http://web.sba.gov/subnet, that is dedicated to helping small business
owners find sub-contracting opportunities. Further, businesses owners can search active
federal opportunities by going to www.fbo.gov.

8 SBA provides a list of prime contractors that are looking to do business with women
business owners and small businesses, and has a mentor/mentee program that enables small
businesses to partner with prime contractors. For more information, visit www.sba.gov.

* “Reasons to Repeal Estate Tax.” Policy and Taxation Group.
http://www. policyandtaxationgroup.com/html/repeal.html.

This report was prepared for the NWBC by Makita R. Weaver, an attorney and freelance writer
based in Washington, DC. For more information, send an email to

Makita. Weaver@gmail.com.

16


When Hurricane Katrina (Katrina) hit the Gulf Coast of the United States on August 29, 2005, it
caused devastation that was unparalleled by any other natural disaster. More than 1,800
people lost their lives. Millions more were displaced.

New Orleans, Louisiana, was especially hard hit because the storm surge caused many of the
city’s drainage levee canals to subsequently fail. As a result, by August 31, more than 80% of
the metropolitan area was under water.

While all industry in New Orleans was severally disrupted in the aftermath of Katrina, small
businesses suffered catastrophic losses. According to a report by the Institute of Southern
Studies, more than 60% of small businesses were destroyed. Although 75% of those
businesses have since reopened, the Louisiana Recovery Authority reports that
approximately 18,700 enterprises were permanently closed.

In an effort to better understand how the long-lasting effects of Katrina and the receding
national economy have affected local women business owners, the National Women’s
Business Council (NWBC), in partnership with the Urban League of Greater New Orleans
Women’s Business Resource Center and the Louisiana Small Business Development Center,
hosted a town hall meeting in New Orleans in October 2009. The event was the 8th in a series
of meetings held across the country to generate grassroots-level recommendations from
women business owners for the consideration of the President, Congress, and the U.S. Small
Business Administration (SBA).

The town hall meeting brought together NWBC members, leaders of national women’s
business organizations, local organizations that support women business owners, state and
local policy leaders, and more than 200 women entrepreneurs from the New Orleans
metropolitan area. During the event, participants discussed their views on national-level policy
issues related to access to capital, affordable healthcare, business continuity and
sustainability, education and workforce development, microenterprises, procurement, and
taxes. Members of the NWBC were particularly interested in visiting New Orleans because
they believed that the local business community had insights on disaster preparedness
procedures that would be helpful for businesses across the country.

This report details the discussions, policy recommendations, opinions, and points of view
generated during the New Orleans town hall meeting. The report does not necessarily reflect
the official positions of NWBC.


The NWBC is bi-partisan federal advisory council created to serve as an independent source
of advice and policy recommendations to the President, Congress, and SBA on economic
issues of importance to women business owners. The Council's mission is to promote bold
initiatives, policies, and programs designed to support women’s business enterprises at all
stages of development in the public and private sector marketplaces — from start-up to
success to significance.

Visit www.nwbc.gov for more information on the Council's town hall meetings, including reports
on previous meetings and issue backgrounders from breakout discussions.

1


Establish a formal monitoring system to ensure that the 5% procurement goal is
met for woman-owned businesses

Since 1994, the federal government has instituted a procurement goal that women-owned
businesses be awarded at least 5% of the total value of all prime contracts and subcontracts
each fiscal year. Yet, to date, that goal has never been achieved. Meeting attendees stressed
the need for a formal mechanism to ensure that all government entities, departments, and
purchasing agents meet the 5%

goal. A March 2010 SBA press release stated that Congress has
created a rule to increase federal contracting opportunities for
Hold prime contractors women-owned small businesses. Afternearly a decade without

Significant progress toward implementation, the Obama
x Administration released a proposed rule aimed at providing
owned businesses greater opportunities for women-owned small businesses to
compete for federal contracts, while achieving the existing
The attendees were concerned that statutory goal that 5% of federal contracting dollars go to women-

all too often prime contractors owned small businesses.°

accountable for using women-

included women-owned businesses
as subcontractors in their bids to win contracts. However, once the contract was awarded,
the prime would sever ties with the small businesses that helped them win the award
without fear of penalty. Although the government has the right to terminate a contract with
a non-compliant prime contractor, it rarely does so as a result of failure to comply with
small business contracting stipulations. Hence, small business owners have few viable
means of recourse.

Participation in the bidding process is expensive and timely for any small business. The
prospect of being dropped from a contract once it has been awarded means that the
small business owner gains a net negative in her pursuit to win business. Accordingly,
attendees called for the implementation of a mechanism to ensure that prime contractors
comply with small business contracting requirements or face significant penalties.

Curb the practice of contract bundling

Women business owners agreed that the federal government's policy of consolidating its
purchases of unrelated goods and services into a single large contract significantly
impeded their ability to secure contracts and resulted in the loss of billions of dollars of
revenue for the small business community.

Create parity among all SBA programs

Recently, the U.S. Court of Federal Claims ruled that the language in the current federal laws
elevated HUBZones above other SBA administered contracting programs. Meeting
participants urged the introduction of legislation to change the verbiage at issue and restore

parity among all of the small business designations.

12)


To address the unique challenges precipitated by Katrina, local women entrepreneurs called
for a comprehensive investigation to evaluate what additional services are needed to fill the
gaps in available programs. Participants were especially concerned that existing disaster
relief services did not help them obtain alternative office space and often placed them ina
financial catch-22.

For example, several women entrepreneurs stated that their business insurance proceeds
were paid directly to their loan providers -- leaving them with no resources to reopen their
businesses. The loss of business income caused them to get behind on other bills and
financial obligations, which negatively impacted their credit scores. Their negative payment
histories then disqualified them for available disaster loans.

Allin all, women business owners who attended the town hall meeting enjoyed the opportunity
to voice their concerns and network with like-minded entrepreneurs. With the proper
government-funded resources and technical assistance programs, participants were confident
that they would be able to prepare for future natural disasters and rebuild their lives,
businesses, and communities.

1“Survey Finds Steady Decline in Businesses Offering Health Benefits to Workers Since
2000.” The Henry J. Kaiser Family Foundation. September 2005. http:/Avww.kff.org/
insurance/chem091405nr.cfm.

2 John P. Sommers and Beth Levin Crimmel. “Co-pays, Deductibles, and Coinsurance
Percentages for Employer-Sponsored Health Insurance in the Private Sector, by Firm Size
Classification, 2006.” Agency for Healthcare Research and Quality. July 2008.
http:/Awww.meps.ahrgq.gov/mcpsweb/data_files/publications/st 209/stat209.pdf.

3 Institute for Business & Home Safety. “Small Business Protection.” http:/Avww.ibhs.org/
business_protection/.

4 Allison Plyer. “Facts for Features Hurricane Katrina Impact.” Greater New Orleans
Community Data Center. April 15,2010. http:/Awww.gnocdc.org/Factsforfeatures/
HurricaneKatrinalmpact/index.html.

5 “Government Procurement for Women-Owned Businesses.” National Association of Women
Business Owners. http://nawbo.org//content_760.cfm.

& “SBA Proposes Women-Owned Small Business Rule to Expand Access to Federal

Contracting Opportunities.” U.S. Small Business Administration. March 2, 2010.
http://www.sba.gov/idc/groups/public/documents/sba_homepage/news_release_10-5.pdf.

1S