SBA Seeks to Give Women More Federal Contracts
Aiming to double women’s share of federal contracting dollars, Small Business Administration officials on Friday unveiled initiatives they say will give female entrepreneurs a bigger share of the pie.
The SBA is tweaking procurement policy to make sure federal agencies secure bids from more women-owned firms as part of the purchasing process. It’s a way of boosting the participation of women-owned businesses but stops short of a mandate or set-aside that would raise the ire of affirmative-action foes.
Last year, women-owned businesses were awarded 2.2% of the $200-billion federal contracting market. The SBA wants to raise that share to at least 5%.
“Women now own about 40% of all businesses in the U.S., but they get only a tiny share of federal contracting dollars,” said SBA Administrator Aida Alvarez. “More must be done.”
New procurement procedures will allow federal agencies to choose a streamlined process that could greatly reduce the number of bids they must field before making a purchase. Agencies that opt for the shortcut must solicit their bids from at least five small businesses--including at least one woman-owned firm. The new rules apply to purchases between $2,500 and $100,000.
The SBA has appointed a new manager to focus on women’s procurement opportunities. It’s working with women’s organizations to get more women-owned businesses listed on PRO-Net, the federal government’s computerized list of contractors. And it’s pressuring Cabinet members to come up with new strategies to boost women’s share of each agency’s contracts.
The moves follow a decision by the SBA last year to make revisions to its 8 (a) program, which urges federal agencies to buy goods and services from minority- and women-owned businesses. Those changes have made it easier for white women to win 8 (a) contracts, a move some viewed as an attempt to expand support for the controversial program amid the backlash to affirmative action.
Also on Friday, the SBA said it has licensed two new Small Business Investment Companies (SBIC)--the first in the program’s 40-year history to be owned by women. SBICs are investment companies that leverage their own private capital with SBA funds for the purpose of making loans to entrepreneurs.
Nashville-based Capital Across America will focus on lending to women-owned firms in Tennessee, Ohio, Alabama, Georgia, North Carolina and Kentucky. The Women’s Growth Capital Fund of Washington plans to make equity investments in early-stage, women-owned firms in the Mid-Atlantic region. Both companies raised the lion’s share of their private capital from individual female investors.
