Advocacy
NAWBO was founded in 1975 to be the first advocacy organization for all women business owners.
In the beginning, there were twelve women business owners who met informally in the D.C. area to share information about federal contracts, access to capital and other issues related to their businesses. To best represent the diversity within NAWBO membership, all the business advocacy issues we engage in are bipartisan in nature. In order to receive support from NAWBO National, a piece of legislation must have support from both Democrats and Republicans, which means members of both parties serve as sponsors and/or original co-sponsors.
2023 Updates
May
Request for Feedback:
The U.S. Senate Small Business and Entrepreneurship Majority and Minority Staff asked NAWBO to review legislation from the 117th Congress titled “Small Business Administration Reauthorization and Modernization Act of 2022.” They are working to pass this legislation this Congress. You can find the bill here. NAWBO National Committee members have already been sending in their comments, and I would love to hear from all the Advocacy Chairs. Please feel free to send comments to epatout@nawbo.org.
Hill Updates:
White House and Congressional staff are still trying to prevent the country from defaulting on its $31.4 trillion debt. White House and Leadership talks were postponed today and punted to the beginning of next week as members of Congress believed the staff conversations needed to continue before House and Senate Leadership sit down with the President again.
According to Punchbowl, after the meeting earlier this week, if you’re honestly assessing the situation, you’d have to be pretty bearish about the prospects of coming to an agreement by June 1. Lawmakers and aides on both sides said they thought Tuesday’s meeting was mostly a wash. One source involved in the discussions says Biden and the Big Four can’t afford many more days like Tuesday if they want to reach an agreement on time.
What does this mean for you and your business?
A default would lead to costlier small business loans, squeezed credit markets, higher credit card interest rates, plunging stock markets, and delayed treasury payments are some impacts that small businesses would feel should the U.S. default on the national debt. Below in this email, you’ll see the Senate small business leaders will host a hearing to examine the repercussions on small businesses (Under Upcoming Hearings). In Rhett Buttle's Forbes article you can read more about what private industry players are saying about potential effects on Main Street in Rhett Buttle’s Forbes article here.
Senators Jacky Rosen (D-NV) and Tom Tillis (R-NC) introduced a bill to require the Administrator of the Small Business Administration, in consultation with the Under Secretary of Commerce for Minority Business Development, to establish a grant program to create or expand programs at minority-serving institutions and historically Black colleges and universities that promote minority business ownership and entrepreneurship.
Upcoming Hearings:
The Impacts of Debt Ceiling Brinkmanship and Default on America's Small Businesses
May 16, 20233:30 PM
428A Russell Senate Office Building
Witness Panel:
Dr. Louise Sheiner
Senior Fellow and Policy Director
Hutchins Center on Fiscal and Monetary Policy, The Brookings Institution
Mr. Adam Andrzejewski
CEO and Founder
OpenTheBooks.com
Mr. Shaundell Newsome
Visionary and Founder, Sumnu Marketing
Co-Chair, Small Business for America's Future
Mr. Alfredo Ortiz
President and CEO
Job Creators Network
Taking on More Risk: Examining the SBA’s Changes to the 7(a) Lending Program Part II
Wednesday, May 17, 2023 | 10:00 AM
The Committee on Small Business will hold a Full Committee hearing titled “Taking on More Risk: Examining the SBA’s Changes to the 7(a) Lending Program Part II.” The hearing will convene in room 2360 of the Rayburn House Office Building.
Saluting Service: Supporting Veteran-Owned Small Businesses
Wednesday, May 24, 2023 | 2:00 PM
On Wednesday, May 24th at 2:00 PM ET, the Committee on Small Business will hold a Full Committee hearing titled “Saluting Service: Supporting Veteran Owned Small Businesses.” The hearing will convene in room 2360 of the Rayburn House Office Building.
Biden Administration Updates:
Biden-Harris Administration Announces New Development and Improvements on Loan Program Modernization to Expand Access to Capital for Small Businesses
Building on the newly finalized rules, SBA announced publicly, for the first time, its plans to:
o Streamline eligibility determination of SBA-backed loans. To reduce the burden on SBA lenders and streamline operations, SBA will bring eligibility determination on SBA loans in-house through new technology starting August 1, 2023, ensuring more lenders can focus on their customers and expand their capacity to increase lending, especially small-dollar lending.
o Add new fraud review on all loans. Building on President Biden’s commitment to root out fraud, the SBA will use advanced data analytics, third-party data checks, and artificial intelligence tools for fraud review on all loans in the 7(a) and 504 Loan Programs before approval, starting August 1, 2023. To date, loan approval in these programs has largely been delegated to lenders, who approve loans based on SBA rules, but without the agency checking for fraud indicators upfront.
Advocacy Submits Comments on the Consumer Financial Protection Bureau’s Proposed Rule on Credit Card Penalty Fees
On May 3, 2023, the Office of Advocacy submitted comments on the Consumer Financial Protection Bureau’s notice of proposed rulemaking on Credit Card Penalty Fees. The proposed rulemaking would adjust the safe harbor dollar amount for late fees to $8 and eliminate a higher safe harbor dollar amount for late fees for subsequent violations of the same type. For more, read the public comment letter and fact sheet highlighting Advocacy’s concerns and recommendations.
Biden-Harris Administration Celebrates Small Business Boom
The White House celebrates the record number of small businesses created and sustained over the last few years, showcasing various programs and initiatives critical to uplifting small companies through challenging times. To read about all White House initiatives on small business issues, click here.DOL Grants for Youth Training
The Department of Labor recently announced $90 million in grant funding to support training and employment services for youth in high-demand careers. The announcement is part of the Administration's efforts to expand access to apprenticeships and strengthen the workforce. Read about the opportunity, entitled the YouthBuild grants, here.
February
Federal Trade Commission Proposes Rule to Ban Noncompete Clauses
The Federal Trade Commission proposes prohibiting employers from imposing noncompete clauses on workers, including independent contractors. The rule would also require employers to rescind existing noncompete clauses with workers and actively inform their employees that the contracts are no longer in effect. Click here to see the FTC’s fact sheet. Click here to see the proposed rule.
The proposed rule seeks public comment on several topics, including but not limited to the following:
Whether the rule should cover franchisees
Whether the rule should exempt senior executives or make them subject to a rebuttable presumption rather than a ban
Whether low- and high-wage workers should be treated differently under the rule
NAWBO will send comments and appreciate your feedback on the proposed rule by February 10th.
Hill Updates:
This week Senate Majority Leader Chuck Schumer (D-N.Y.) announced Senate Democratic committee memberships for the 118th Congress, including U.S. Senator Ben Cardin (D-Md.) to continue as Chair of the Senate Committee on Small Business and Entrepreneurship.
Senator Cardin said, “Every day, I am inspired by the tenacity and innovation of small businesses across the country. It is an honor to once again serve as Chair of the Small Business and Entrepreneurship Committee,” said Senator Cardin. “As Chair, I will continue the tradition of bipartisanship in the committee. Working with the Ranking Member, I plan to continue to put front and center the women and men who have helped lead the job growth in this country at an unprecedented rate over the last few years. We will prioritize commonsense legislation that levels the playing field for underserved small businesses and also makes improvements to SBA’s core programs. We are witnessing a historic rise in entrepreneurship that has lifted individuals and communities across the country on pathways to prosperity. America’s small business owners deserve the very best tools and resources to keep growing.”
The Democratic Small Business and Entrepreneurship Committee membership for the 118th Congress:
Senator Cardin – Chair
Senator Cantwell
Senator Shaheen
Senator Markey
Senator Booker
Senator Coons
Senator Hirono
Senator Duckworth
Senator Rosen
Senator Hickenlooper
o Already Senators Duckworth and Ernst have introduced bipartisan legislation to codify the Boots to Business Program (S.38).
o This week, U.S. Senator Ben Cardin (D-Md.), Chair of the Senate Committee on Small Business and a member of the Senate Finance Committee, and Senators Sherrod Brown (D-Ohio) and Patty Murray (D-Wash.) reintroduced The Restaurant Revitalization Tax Credit Act. This legislation creates a special tax credit available to businesses that applied for the Small Business Administration (SBA) Restaurant Revitalization Fund (RRF) program but did not receive a grant because the program ran out of funding. Nearly 2 out of every three eligible RRF applicants, or approximately 175,000 businesses, were left unassisted.
House Passes Bipartisan Small Business Legislation
The U.S. House of Representatives passed three small business bills this past week: H.R. 399 (Passed by Voice), H.R. 400 (Passed by Vote of 411-13), and H.R. 449 (Passed by Voice).
H.R. 399 Small Business Advocacy Improvements Act of 2023: To clarify the primary functions and duties of the Office of Advocacy of the Small Business Administration and for other purposes.
H.R. 400 Investing in Main Street Act of 2023: To amend the Small Business Investment Act of 1958 to increase the amount that may be invested in small business investment companies.
H.R. 449 Microloan Transparency and Accountability Act of 2023: To amend the Small Business Act to increase transparency and for other purposes.
House GOP Considering Clean Debt Limit Suspension
To avoid defaulting on the debt limit, House Republicans are considering passing one or more short-term suspensions this summer to align with the September 30th end of the fiscal year. A short-term measure would likely be "clean" without additional provisions.
Biden Administration Updates:
Our Businesses Depend on an Accurate Economic Census
Our data-driven world values benchmarks to assess performance – yet many businesses don’t respond when the Census Bureau conducts the most comprehensive measure of the nation’s economy. Why it matters: Decision-makers at all levels of business, industry, and government use Economic Census results to set economic indicators, policies, and strategies. Better data leads to better decisions. Starting Jan. 31, the Economic Census will collect 2022 year-end figures on 8 million businesses across every industry. If your company is asked to participate, responses are due March 15 and are required by law.
Treasury Secretary Janet Yellen Sends Letter to Congress
The letter outlined the extraordinary measures the agency must take to keep the US from hitting the debt ceiling before Congress agrees. These measures include the Treasury stop investing in the G Fund or the Government Securities Investment Fund of the Federal Employees Retirement System. This will allow the federal government to continue to finance the government through mid-March. They believe these measures should enable them to pay their obligations to bondholders, Social Security recipients, and others until June.
SBA Proposing Reforms to Increase Capital Access for Small Businesses
SBA is proposing reforms that would make it easier for lenders to work with SBA to offer small-dollar loans, expanding the pool of lenders and capital options for small businesses with a focus on the historically underserved. Treasury has launched an interagency effort to identify gaps in services for underserved communities and made historic investments in the CDFIs that often serve as the primary lender for minority-owned businesses. During a recent roundtable, participants agreed on the importance of breaking down barriers to capital by meeting small business owners where they are, providing multiple paths to accessing capital, and offering support services needed to navigate available programs to reach underserved small business owners better.
One Example: Small Business Lending Company (SBLC) Proposed Rule
Currently, SBA works with lenders in several ways. Nonbank private lenders can participate in the 7a program as guaranteed lenders by obtaining an SBLC license. Yet the number of SBLCs available has been capped at 14 since 1983. In addition, SBA licenses over 60 active CDFIs as lenders through the Community Advantage Pilot program. This proposed rule, if made final, would lift the moratorium on new 7a lending licenses allowing SBA to extend additional licenses to nonbank lenders and CDFIs. SBA plans to add three licenses in the initial extension. In addition, it would open a path for the Community Advantage program to become permanent. These steps would allow SBA to expand the pool of lenders offering SBA-backed working capital loans to include non-traditional institutions with more expertise in meeting the needs of underserved small businesses.
Defense Logistics Agency (DLA) Small Business Outreach
DLA will host an upcoming event for small businesses. The event is titled, “Doing Business with DLA with an Emphasis on 8(a)/SDB Program,” and will occur on February 8th. To learn more, click here.
U.S. Small Business Administration - Virtual Loan Clinic
Learn about SBA's leading role and how to prepare a request for capital. Come to this FREE monthly loan clinic to understand credit requirements, interest rates, collateral terms, and amounts available. Find sources of money to start or grow your business. Learn how to approach a lender, find bankers interested in your needs, and improve your chances of success. This program covers regular 7a lending and programs.
Registration is not required.
When: First Wednesday of every month
Time: 9:00 am to 11:00 am (Phoenix, AZ time)
This is a webinar held via Microsoft Teams - click below:
+1 202-765-1264 United States, Washington DC (Toll)
Conference ID: 837 909 022#
If the link above does not work, please copy and paste this address into your internet browser: https://teams.microsoft.com/_#/l/meetup-join/19:meeting_MmE3MmIwNmUtM2U2Yy00MDViLTkwYTEtYzhlYTEwOTVlMGRj@thread.v2/0?context=%7B%22Tid%22:%223c89fd8a-7f68-4667-aa15-41ebf2208961%22,%22Oid%22:%22d5912ca5-44d4-4074-a21f-d8c8d30fc77b%22%7D&anon=true&deeplinkId=72d26f81-1562-480a-443e-2898afbaadd9
OMB Releases Initial Proposals on Revising Race and Ethnicity Statistical Standards
On Thursday, January 26, the U.S. Office of Management and Budget’s (OMB) Office of the Chief Statistician released an initial set of recommended revisions proposed by the Federal Interagency Technical Working Group on Race and Ethnicity Standards (Working Group) to revise OMB’s 1997 Statistical Policy Directive No. 15: Standards for Maintaining, Collecting, and Presenting Federal Data on Race and Ethnicity (SPD 15). This brings them closer to updating SPD 15, and there is still much work to be done. The public can review the initial proposals by reading the full Federal Register Notice and by visiting the Working Group’s new website. Also, the Working Group’s website contains the current review of SPD 15 and information about how to submit feedback on the initial proposals. The Chief Statistician of the United States, Dr. Karin Orvis, the Working Group’s Chair, Bob Sivinski (OMB), and the U.S. Census Bureau are committed to a full, transparent revision process. OMB’s goal to complete these revisions is the Summer of 2024. The U.S. Census Bureau's Office of Strategic Alliances is working with OMB and other Census Bureau areas to provide a briefing on this matter soon.
Biden-Harris Administration to Launch Summit Series to Advance Asian American, Native Hawaiian, and Pacific
The White House Initiative on Asian Americans, Native Hawaiians, and Pacific Islanders (WHIAANHPI) will launch a series of regional economic summits to connect Asian American, Native Hawaiian, and Pacific Islander (AA and NHPI) community members directly with federal leaders and resources. The events kicked off this week with an in-person summit at Philadelphia City Hall in collaboration with the U.S. Small Business Administration, U.S. Department of the Treasury, U.S. Department of Health and Human Services’ Office of Small and Disadvantaged Business Utilization, the National Asian / Pacific Islander American Chamber of Commerce & Entrepreneurship, and local officials.
2022 H.R.5050 Women's Business Ownership Act Anniversary
Public Policy
NAWBO has focused on public policy issues of national and statewide interest impacting women entrepreneurs and small businesses since 1975. By attending White House events, providing Congressional testimony, holding advocacy conferences, developing reports, and educating members, NAWBO has consistently brought the concerns of women business owners to our lawmakers in Washington, D.C.
In 1988, NAWBO played a key role in the passage of The Women’s Business Ownership Act, also known as H.R. 5050. This landmark legislation allowed women to receive business loans without the co-signature of a male relative. H.R. 5050 also created the National Women’s Business Council, a body of women entrepreneurs and women’s organizations that provides counsel to the President and Congress.
Access to Capital for Women-Owned Businesses
NAWBO supports federal legislation that helps to overcome the current barriers related to access to capital by women business owners (WBOs) and reduces the risk of private sector lending to small businesses. The major sources of funding that women business owners continue to rely on are personal savings, reinvested business earnings, lines of credit, loans, equity financing, and venture capital, in that order.
NAWBO favors a three-pronged advocacy approach in this area, choosing to focus on the various SBA loan programs, the Small Business Investment Company program, and tax incentives to encourage investment in the small business sector.
Increased Federal Procurement for Women Business Owners
NAWBO supports achievement of the five percent Federal procurement goal for women-owned small businesses (WOSBs) and other steps designed to assure women business owners their fair share of Federal contracts and contract dollars. Failure to achieve the 5% goal has cost women business owners an average of $5 billion in lost contract dollars each year.
NAWBO opposes contract bundling, the Federal government’s policy of consolidating its purchases of unrelated goods and services into a single large contract. Bundling limits the opportunities for small businesses to effectively compete, thereby restricting competition and increasing the overall cost of goods and services to the federal government.
Affordable Health Care
Health care insurance cost reduction is a very important issue for NAWBO members. The results of the 2010 NAWBO Public Policy Survey show that health care cost issues are third only to the economy and business taxes as issues affecting our members’ businesses and their votes. In this critical time NAWBO wants to be part of the dialogue on health care reform.
NAWBO supports legislation that will make health insurance more affordable for women business owners and their employees. NAWBO will consider and support, as appropriate, federal and state legislation designed to address the rising cost of health insurance by lowering premiums or creating tax incentives that make the purchase of health insurance more affordable for small business owners and their employees.
Fair and Equitable Tax Treatment
NAWBO supports fair and equitable tax policy for large and small businesses that fosters the economic growth of women-owned and other small businesses. Legislation should be enacted to ensure tax equity and basic fairness for all forms of small business organizations. The privilege of deducting legitimate business expenses should no longer be based upon the entity chosen to operate the business.ss taxes as issues affecting our members’ businesses and their votes. In this critical time NAWBO wants to be part of the dialogue on health care reform.
-All of the above information has been supplied by www.nawbo.org. Please visit the national site for additional information on Public Policy.-
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