Women's Business Ownership Act of 1988
PL 100-533 (H.R.5050), enacted 10/25/1988

PUBLIC LAW 100-533—OCT. 25, 1988 
102 STAT. 2689 
Public Law 100-533 
100th Congress 
An Act 
To amend the Small Business Act to establish programs and initiate efforts to assist 
Q^^ 25, 1988 
the development of small business concerns owned and controlled by women, and 
FH R 'lO'iOl 
for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
Women's 
Business 
SECTION 1. SHORT TITLE. 
Ownership Act 
This Act, together with the following table of contents, may be 15 use 631 note, 
cited as the "Women's Business Ownership Act of 1988". 
TABLE OF CONTENTS 
TITLE I—CONGRESSIONAL FINDINGS AND PURPOSES 
Sec. 101. Findings and purposes. 
TITLE II—DEMONSTRATION PROJECTS 
Sec. 201. Establishment. 
Sec. 202. Technical. 
Sec. 203. Authorization. 
Sec. 204. Definition. 
TITLE III—ACCESS TO CAPITAL 
Sec. 301. Amendments to the Consumer Credit Protection Act. 
Sec. 302. Form simplification and preferred financing. 
TITLE IV—NATIONAL WOMEN'S BUSINESS COUNCIL 
Sec. 401. Establishment. 
Sec. 402. Duties of the Council. 
Sec. 403. Membership. 
Sec. 404. Director and staff of the Council. 
Sec. 405. Powers of the Council. 
Sec. 406. Reports. 
Sec. 407. Authorization. 
TITLE V—STATISTICAL DATA AND EFFECT ON OTHER PROGRAMS 
Sec. 501. Census data. 
Sec. 502. Procurement data. 
Sec. 503. State of small business report. 
Sec. 504. Disadvantaged small business. 
TITLE I—CONGRESSIONAL FINDINGS AND PURPOSES 
SEC. 101. FINDINGS AND PURPOSES. 
Section 2 of the Small Business Act (15 U.S.C. 631) is amended by 
adding at the end thereof the following new subsection: 
"(hXl) With respect to the programs and activities authorized by 
this Act, the Congress finds that— 
"(A) women owned business has become a major contributor 
to the American economy by providing goods and services, 
revenues, and jobs; 
"(B) over the past two decades there have been substantial 
gains in the social and economic status of women as they have 
sought economic equality and independence; 
19-194 O—91—Part 3 
24 : QL i 
102 STAT. 2690 
PUBLIC LAW 100-533—OCT. 25, 1988 
"(C) despite such progress, women, as a group, are subjected 
to discrimination in entrepreneurial endeavors due to their 
gender; 
"(D) such discrimination takes many overt and subtle forms 
adversely impacting the ability to raise or secure capital, to 
acquire managerial talents, and to capture market opportuni-
ties; 
"(E) it is in the national interest to expeditiously remove 
discriminatory barriers to the creation and development of 
small business concerns owned and controlled by women; 
"(F) the removal of such barriers is essential to provide a fair 
opportunity for full participation in the free enterprise system 
by women and to further increase the economic vitality of the 
Nation; 
"(G) increased numbers of small business concerns owned and 
controlled by women will directly benefit the United States 
Government by expanding the potential number of suppliers of 
goods and services to the Government; and 
"(H) programs and activities designed to assist small business 
concerns owned and controlled by women must be implemented 
in such a way as to remove such discriminatory barriers while 
not adversely affecting the rights of socially and economically 
disadvantaged individuals. 
Discrimination, 
"(2) It is, therefore, the purpose of those programs and activities 
prohibition. 
conducted Under the authority of this Act that assist women entre-
preneurs to— 
"(A) vigorously promote the legitimate interests of small 
business concerns owned and controlled by women; 
"(B) remove, insofar as possible, the discriminatory barriers 
that are encountered by women in accessing capital and other 
factors of production; and 
"(C) require that the Government engage in a systematic and 
sustained effort to identify, define and analyze those discrimina-
tory barriers facing women and that such effort directly involve 
the participation of women business owners in the public/ 
private sector partnership.". 
TITLE II—DEMONSTRATION PROJECTS 
SEC. 201. ESTABLISHMENT. 
Subsection (c) of section 8 of the Small Business Act (15 U.S.C. 
637(c)) is amended to read as follows: 
"(c)(1) Subject to the requirements of paragraph (2), the Adminis-
tration shall provide financial assistance to private organizations to 
conduct demonstration projects for the benefit of small business 
concerns owned and controlled by women. 
"(2) No amount of financial assistance shall be provided pursuant 
to this subsection unless the recipient organization agrees, as a 
condition of receiving such assistance, that— 
"(A) it will obtain, after its application has been approved but 
prior to the disbursement of funds pursuant to this subsection, 
cash contributions from private sector sources in an amount 
at least equal to the amount of funds such organization will 
receive under this subsection; and 
"(B) it will provide the types of services and assistance to 
present and potential women owners of small business concerns 
PUBLIC LAW 100-533—OCT. 25, 1988 
102 STAT. 2691 
as are described in paragraph (3). For the purposes of this 
subsection such concerns may be either 'start-up' businesses or 
established 'on-going' concerns. 
"(3) The types of services and assistance referred to in paragraph 
(2XB) shall include the following: 
"(A) Financial assistance, which assistance shall include 
training and counseling in how to apply for and secure business 
credit and investment capital; prepare and present financial 
statements; manage cash-flow and otherwise manage the finan-
cial operations of a business concern. 
"(B) Management assistance, which assistance shall include 
training and counseling in how to plan, organize, staff, direct, 
and control each major activity and function of a small business 
concern; and 
"(C) Marketing assistance, which assistance shall include 
training and counseling in how to identify and segment domes-
tic and international market opportunities; prepare and execute 
marketing plans; develop pricing strategies; locate contract 
opportunities; negotiate contracts; and utilize varying public 
relations and advertising techniques. 
"(4) Applications for financial assistance pursuant to this subsec-
tion shall be evaluated and ranked in accordance with predeter-
mined selection criteria that shall be stated in terms of relative 
importance. Such criteria and their relative importance shall be 
made publicly available and stated in each solicitation for applica-
tions made by the Administration. Such criteria shall include— 
"(A) a criterion that specifically refers to the experience of 
the offering organization in conducting programs or on-going 
efforts designed to impart or upgrade the business skills of 
women business owners or potential owners; 
"(B) a criterion that specifically refers to the present ability of 
the offering organization to commence a demonstration project 
within a minimum amount of time; and 
"(C) a criterion that specifically refers to the ability of the 
applicant organization to provide training and services to a 
representative number of women who are both socially and 
economically disadvantaged. 
"(5) The financial assistance authorized pursuant to this subsec-
tion shall be made by grant, contract, or cooperative agreement 
and may contain such provision, as necessary, to provide for 
payments in lump sum or installments, and in advance or by way of 
reimbursement. 
"(6XA) The Administration shall prepare and transmit a report to 
the Committees on Small Business of the Senate and House of 
Representatives on the effectiveness of all demonstration projects 
conducted under the authority of this subsection. Such report shall 
provide information concerning— 
"(i) the number of individuals receiving assistance; 
"(ii) the number of start-up business concerns formed; 
"(iii) the gross receipts of assisted concerns; 
"(iv) increases or decreases in profits of assisted concerns; and 
"(v) the employment increases or decreases of assisted 
concerns. 
"(B) The report required pursuant to subparagraph (A) shall cover 
at least a twenty-four-month period and shall be submitted not later 
than thirty months after the effective date of this paragraph. 
Public 
information. 
Grants. 
Contracts. 
Reports. 
102 STAT. 2692 
PUBLIC LAW 100-533—OCT. 25, 1988 
Termination 
"(7) This subsection shall cease to be effective after September 30, 
date. 
1991.". 
SEC. 202. TECHNICAL. 
Subsection (b) of section 8 of the Small Business Act (15 U.S.C. 
63703)) is amended by— 
(1) striking out "and" at the end of paragraph (14); 
(2) striking out "public." at the end of paragraph (15) and 
inserting in lieu thereof "public; and"; and 
(3) by adding the following new paragraph: 
"(16) to make studies of matters materially affecting the 
competitive strength of small business, and of the effect on 
small business of Federal laws, programs, and regulations, and 
to make recommendations to the appropriate Federal agency or 
agencies for the adjustment of such programs and regulations to 
the needs of small business.". 
15 u s e 637 note. 
SEC. 203. AUTHORIZATION. 
There is authorized to be appropriated $10,000,000 to carry out the 
demonstration projects required pursuant to section 201. The initial 
projects authorized to be financed by this title shall be funded by 
January 31, 1989. Notwithstanding any other provision of law, the 
Small Business Administration may use such expedited acquisition 
methods as it deems appropriate to achieve the purposes of this 
section, except that it shall ensure that all eligible sources are 
provided a reasonable opportunity to submit proposals. 
15 u s e 637 note. 
SEC. 204. DEFINITION. 
) 
For the purposes of this title, the term "small business concern 
owned and controlled by women" means any small business 
concern— 
(1) that is at least 51 per centum owned by one or more 
women; and 
(2) whose management and daily business operations are 
controlled by one or more of such women. 
TITLE III—ACCESS TO CAPITAL 
SEC. 301. AMENDMENTS TO THE CONSUMER CREDIT PROTECTION ACT. 
Subsection (a) of section 703 of the Consumer Credit Protection 
Act (15 U.S.C. 1691b(a)) is amended to read as follows: 
Regulations. 
"(aXD The Board shall prescribe regulations to carry out the 
purposes of this title. These regulations may contain but are not 
limited to such classifications, differentiation, or other provision, 
and may provide for such adjustments and exceptions for any class 
of transactions, as in the judgment of the Board are necessary or 
proper to effectuate the purposes of this title, to prevent circumven-
tion or evasion thereof, or to facilitate or substantiate compliance 
therewith. 
"(2) Such regulations may exempt from the provisions of this title 
any class of transactions that are not primarily for personal, family, 
or household purposes, or business or commercial loans made avail-
able by a financial institution, except that a particular type within a 
class of such transactions may be exempted if the Board determines, 
after making an express finding that the application of this title or 
of any provision of this title of such transaction would not contrib-
ute substantially to effecting the purposes of this title. 
PUBLIC LAW 100-533—OCT. 25, 1988 
102 STAT. 2693 
"(3) An exemption granted pursuant to paragraph (2) shall be for 
no longer than five years and shall be extended only if the Board 
makes a subsequent determination, in the manner described by such 
paragraph, that such exemption remains appropriate. 
"(4) Pursuant to Board regulations, entities making business or 
commercial loans shall maintain such records or other data relating 
to such loans as may be necessary to evidence compliance with this 
subsection or enforce any action pursuant to the authority of this 
Act. In no event shall such records or data be maintained for a 
period of less than one year. The Board shall promulgate regulations 
to implement this paragraph in the manner prescribed by chapter 5 
of title 5, United States Code. 
"(5) The Board shall provide in regulations that an applicant for a 
business or commercial loan shall be provided a written notice of 
such applicant's right to receive a written statement of the reasons 
for the denial of such loan.". 
SEC. 302. FORM SIMPLIFICATION AND PREFERRED FINANCING. 
(a) CERTIFIED LOAN PROGRAM.—Section 7 of the Small Business 
Act (15 U.S.C. 636) is amended by adding to subsection (a) the 
following new paragraph: 
"(19) During fiscal years 1989, 1990, and 1991, in addition to 
the preferred lenders program authorized by the proviso in 
section 5(bX7), the Administration is authorized to establish a 
certified loan program for lenders who establish their knowl-
edge of Administration laws and regulations concerning the 
loan guarantees program and their proficiency in program 
requirements. In order to encourage certified lenders and pre-
ferred lenders to provide loans of $50,000 or less in guarantees 
to eligible small business loan applicants, the Administration 
(A) shall develop and shall allow participating lenders in the 
certified loan program and in the preferred loan program to 
solely utilize a uniform and simplified loan form for such loans 
and (B) shall allow such lenders to retain one-half of the fee 
collected pursuant to section 7(aX16) on such loans: Provided, 
That a participating lender may not retain any fee pursuant to 
this paragraph if the amount committed and outstanding to the 
applicant would exceed $50,000 unless such excess amount was 
not approved under the provisions of this paragraph. The des-
ignation of a lender as a certified lender shall be suspended or 
revoked at any time that the Administration determines that 
the lender is not adhering to its rules and regulations or if the 
Administration determines that the loss experience of the 
lender is excessive as compared to other lenders: Provided 
further, That any suspension or revocation of the designation 
shall not affect any outstanding guarantee: And provided fur-
ther, That the Administration may not reduce the per centum of 
guarantee £is a criterion of eligibility for participation in this 
program, except as otherwise provided by law.". 
(b) REPORTS.—The Administration shall take appropriate steps to 
expand participation in the certified loan program and shall report 
to the Small Business Committees of the Senate and the House of 
Representatives on the amount of loans approved and the amount of 
losses sustained under the provisions of section 7(aX19) of the Small 
Business Act. An interim report shall be submitted not later than 
one year after date of enactment of this Act and a final report shall 
Loans. 
Records. 
Regulations. 
Loans. 
15 u s e 636 note. 
102 STAT. 2694 
PUBLIC LAW 100-533—OCT. 25, 1988 
be submitted not later than eighteen months after the date of 
enactment. 
15 use 631 note 
TITLE IV—NATIONAL WOMEN'S BUSINESS COUNCIL 
SEC. 401. ESTABLISHMENT. 
There is estabUshed a Council to be known as the "National 
Women's Business Council" (hereinafter in this title referred to as 
the Council). 
SEC. 402. DUTIES OF THE COUNCIL. 
(a) The Council shall review— 
(1) the status of women owned business nationwide, including 
progress made and barriers that remain in order to assist such 
businesses to enter the mainstream of the American economy; 
(2) the role of the Federal Government and State and local 
governments in assisting and promoting aid to, and the pro-
motion of, women owned business; 
(3) data collection procedures and the availability of data 
relating to (A) women owned businesses; (B) women owned 
small business, and (C) small business owned and controlled by 
socially and economically disadvantaged women; and 
(4) such other government initiatives as may exist relating to 
women owned business including, but not limited to, those 
relating to Federal procurements. 
(b) Based upon its review, the Council shall, by December 31,1989, 
and every twelve months thereafter, recommend to the Congress 
and the President— 
(1) new private sector initiatives that would provide manage-
ment and technical assistance to women owned small business; 
(2) ways to promote greater access to public and private sector 
financing and procurement opportunities for such businesses; 
and 
(3) detailed multiyear plans of action, with specific goals and 
timetables, for both public and private sector actions needed to 
overcome discriminatory barriers to full participation in the 
economic mainstream. 
(c) For the purposes of this title the term "small business concern 
owned and controlled by women" shall have the same meaning as 
that term is given in section 204 of this Act. 
SEC. 403. MEMBERSHIP. 
(a) The Council shall be composed of nine members to be selected 
as follows: 
(1) the Administrator of the Small Business Administration, 
the Secretary of Commerce (or such Secretary's deputy) and the 
Chairman of the Federal Reserve Board (or such Chairman's 
designee, who shall be a member of the Board); 
(2) two members shall be appointed by the majority leader, 
and one member shall be appointed by the minority leader of 
the Senate; and 
(3) two members shall be appointed by the Speaker, and one 
member shall be appointed by the minority leader of the House 
of Representatives. 
(b)(1) Appointments under section (a) (2) and (3) shall be made 
from individuals who are specially qualified to serve on the Council 
by virtue of their education, training, and experience and who are 
PUBLIC LAW 100-533—OCT. 25, 1988 
102 STAT. 2695 
not officers or employees of the Federal Government nor of the 
Congress. 
(2)(A) Of the individuals to be appointed under subsection (a) (2) 
and (3)— 
(i) no more than two members to be appointed under each 
such paragraph of such subsection shall be of the same political 
party; 
(ii) at least two members appointed under each such para-
graph of such subsection shall be women; and 
(iii) at least two members to be appointed under each such 
paragraph of such subsection shall be owners of small business 
concerns as defined pursuant to section 3 of the Small Business 
Act and relevant regulations promulgated pursuant thereto. 
(B) Appointments made pursuant to subsection (a) (2) and (3) shall 
be made in the following sequence— 
(i) appointments under (a)(2) shall be made within ninety days 
of the effective date of this title; and 
(ii) appointments under (a)(3) shall be made within one hun-
dred and twenty days of the effective date of this title. 
(3) In making appointments under subsection (a), the appointing 
authorities shall give due consideration to achieving balanced geo-
graphical representation. 
(C) Members appointed under subsection (a) (2) and (3) shall be 
appointed for a three-year term, except if any such appointee be-
comes an officer or employee of the Federal Government or of the 
Congress, such individual may continue as a member of the Council 
for not longer than the thirty-day period beginning on the date such 
individual becomes such an officer or employee. 
(D) A vacancy on the Council shall be filled in the manner in 
which the original appointment was made. 
(E) Members of the Council shall serve without pay for such 
membership, except members of the Council shall be entitled to 
reimbursement for travel, subsistence, and other necessary expenses 
incurred by them in carrying out the functions of the Council, in the 
same manner as persons employed intermittently in the Federal 
Government are allowed expenses under section 5703 of title 5, 
United States Code. 
(FXD Two members of the Council shall constitute a quorum for 
the receipt of testimony and other evidence. 
(2) A majority of the Council shall constitute a quorum for the 
approval of a recommendation or report submitted pursuant to 
section 402 or section 406. 
(G) The Chairperson and Vice Chairperson of the Council shall be 
President of U.S. 
designated by the President. The term of office of the Chairperson 
and Vice Chairperson shall be at the discretion of the President. 
(H) The Council shall meet not less than four times a year. 
Meetings shall be at the call of the Chairperson. 
SEC. 404. DIRECTOR AND STAFF OF THE COUNCIL. 
(aXD The Council shall have a Director who shall be appointed by 
the Chairperson. Upon recommendation by the Director, the Chair-
person may appoint and fix the pay of four additional personnel. 
(2) The Director and staff of the Council may be appointed without 
regard to section 5311(b) of title 5, United States Code, and without 
regard to the provisions of such title governing appointments in the 
competitive service, and may be paid without regard to the provi-
sions of chapter 51 and subchapter III of chapter 53 of such title 
102 STAT. 2696 
PUBLIC LAW 100-533—OCT. 25, 1988 
Mail. 
Contracts. 
Termination 
date. 
relating to classification and General Schedule pay rates, except 
that no individual so appointed may receive pay in excess of the^^ 
annual rate of basic pay payable for GS-18 of the General Schedule. 
(b) The Council may procure temporary and intermittent services 
under section 3109(b) of title 5 of the United States Code, but at 
rates for individuals not to exceed the daily equivalent of the 
maximum annual rate of basic pay payable for GS-18 of the General 
Schedule. 
(c) Upon request of the Chairperson, the head of any Federal 
department or agency may detail, on a reimbursable basis, any of 
the personnel of such agency to the Council to assist the Council in 
carrying out its duties under this title without regard to section 3341 
of title 5 of the United States Code. 
SEC. 405. POWERS OF THE COUNCIL. 
(a) The Council may, for the purpose of canying out this title sit 
and act at such times and places, hold such hearings, take such 
testimony, receive such evidence, and consider such information, as 
the Council considers appropriate. The Council may administer 
oaths or affirmations for the receipt of such testimony. 
(b) Any member or person within the employ of the Council may, 
if so authorized by the Council, take any action which the Council is 
authorized to take by this section. 
(c) Except as otherwise prohibited by law, the Council may secure 
directly from any department or agency of the United States 
information necessary to enable it to carry out its duties under this 
Act. Upon the request of the Chairperson of the Council, the head of 
such department or agency shall promptly furnish such information 
to the Council. 
(d) The Council may use the United States mails in the same 
manner and under the same conditions as departments and agencies 
of the United States. 
(e) The Administrator of the General Services Administration 
shall provide to the Council, on a reimbursable basis, such adminis-
trative support services as the CouncU may request. In addition, the 
Administrator shall, as appropriate, provide to the Council, upon its 
request, access to and use of such Federal facilities as may be 
necessary for the conduct of its business. 
SEC. 406. REPORTS. 
The Council shall transmit to the President and to each House of 
the Congress a report no less than once in every twelve-month 
period. The first such report shall be submitted no later than 
December 31, 1989. Such reports shall contain a detailed statement 
on the activities of the Council, and the findings and conclusions of 
the Council, tc^ether with its recommendations for such legislation 
and administrative actions as it considers appropriate based upon its 
reviews conducted under section 402. 
SEC. 407. AUTHORIZATION. 
There are authorized to be appropriated such sums as may be 
necessary to carry out this title and they may remain available until 
expended. New spending authority or authority to enter into con-
tracts as authorized in this Act shall be effective only to such extent 
and in such amounts as are provided in advance in appropriation 
Acts. This title shall cease to be effective five years after the date of 
enactment. 
PUBLIC LAW 100-533—OCT. 25, 1988 
102 STAT. 2697 
TITLE V—STATISTICAL DATA AND EFFECT ON OTHER 
PROGRAMS 
SEC. 501. CENSUS DATA. 
13 use 131 note. 
(a) BUREAU OF LABOR STATISTICS.—The Bureau of Labor Statistics 
of the Department of Labor shall include in any census report it 
may prepare on women owned business data on— 
(1) sole proprietorships; 
(2) partnerships; and 
(3) corporations. 
(b) BUREAU OF THE CENSUS.—The Bureau of the Census of the 
Department of Commerce shall include in its Business Census for 
1992 and each such succeeding census data on the number of 
corporations which are 51 per centum or more owned by women. 
(c) COMBINED STUDY.—Not later than one hundred and eighty days Reports, 
after the effective date of this section, the Office of the Chief 
Counsel for Advocacy of the Small Business Administration (herein-
after referred to in this subsection as the "Office") shall conduct a 
study and prepare a report recommending the most cost effective 
and accurate means to gather and present the data required to be 
collected pursuant to subsections (a) and (b). The Department of 
Commerce and the Department of Labor shall provide the Office 
such assistance and cooperation as may be necessary and appro-
priate to achieve the purposes of this subsection. 
SEC. 502. PROCUREMENT DATA. 
41 USC 4717a. 
(a) REPORTING.—Each Federal agency shall report to the Office of 
Federal Procurement Policy the number of small businesses owned 
and controlled by women and the number of small business concerns 
owned and controlled by socially and economically disadvantaged 
businesses, by gender, that are first time recipients of contracts from 
such agency. The Office of Federal Procurement Policy shall take 
such actions as may be appropriate to ascertain for each fiscal year 
the number of such small businesses that have newly entered the 
Federal market. 
(b) DEFINITIONS.—For purposes of this section the terms "small 
business concern owned and controlled by women" and "small 
business concerns owned and controlled by socially and economi-
cally disadvantaged individuals" shall be given the same meaning as 
those terms are given under section 8(d) of the Small Business Act 
(15 U.S.C. 637(d)) and section 204 of this Act. 
SEC. 503. STATE OF SMALL BUSINESS REPORT. 
Section 303 of Public Law 96-302 (15 U.S.C. 631(b)) is amended by 15 USC 63lb. 
adding the following new subsection: 
"(e) The information and data required to be reported pursuant to 
subsection (a) shall separately detail those portions of such informa-
tion and data that are relevant to— 
"(1) small business concerns owned and controlled by socially 
and economically disadvantaged individuals, by gender, as de-
fined pursuant to section 8(d) of the Small Business Act; and 
"(2) small business concerns owned and controlled by 
women.". 
102 STAT. 2698 
PUBLIC LAW 100-533—OCT. 25, 1988 
15 u s e 631 note. 
SEC. 504. DISADVANTAGED SMALL BUSINESSES. 
Nothing contained in this Act is intended to reduce or limit any 
programs, benefit, or activity that is authorized by law to assist 
small business concerns owned and controlled by socially and 
economically disadvantaged individuals as defined pursuant to sec-
tion 8(dX3) of the Small Business Act (15 U.S.C. 637(d)(3)). 
Approved October 25, 1988. 
LEGISLATIVE HISTORY—H.R. 5050: 
HOUSE REPORTS: No. 100-955 (Comm. on Small Business). 
CONGRESSIONAL RECORD, Vol. 134 (1988): 
Oct. 3, considered and passed House. 
Oct. 11, considered and passed Senate, amended. 
Oct. 12, House concurred in Senate amendment.