The legislation introduced by Sens. Max Cleland of Georgia and John Kerry of Massachusetts, and co-sponsored by Grassley, would increase federal funding for the Women's Business Center program. These centers represent the only national program that focuses exclusively on entrepreneurial training for women.
Grassley said the program provides a "good example" of government working in partnership with entrepreneurs. "I want to encourage the entrepreneurial talent and energy of women in Iowa to take advantage of available economic opportunities. This program has proven its ability to offer valuable assistance," Grassley said.
The bill introduced today would amend the Small Business Act to increase the authorized funding level for the program. An increase would allow for new centers and subcenters to be established. It also would provide continued funding for existing centers, including the on-line women's business center.
Right now, 36 states are home to 60 Women's Business Centers. They teach the principles of finance, management and marketing, as well as specialized topics such as how to get a government contract, or how to start a home-based business. Iowa does not currently have a center.
"The goal is to establish a women's business center in every state. And this bill would provide for expansion of the program into Iowa," Grassley said.
The Small Business Administration said the number of clients served by the program grew by 40 percent in the second year of operation. In addition, unexpectedly high numbers of both full- and part-time jobs per business were created. They paid on average at least twice as much as the minimum wage. The number of small loans received by clients also more than doubled, and the total amount of dollars loaned increased by approximately $800,000 over the first year.
Currently, the Women's Business Center program is authorized at $8 million annually. The legislation advanced today would increase the authorized funding to $9 million for fiscal 1999, $10.5 million for fiscal 2000 and $12 million for fiscal 2001. It would be effective October 1, 1998. No other changes would be made to the existing program.
The on-line Women's Business Center can be found at http://www.onlinewbc.org.