Cantwell Seeks Equal Opportunity For Women Entrepreneurs

 3 out of 10 Washington Businesses are owned by women but just 1out of 10 Small Business Loans are made to women.  Washington Senator Maria Cantwell   has introduced legislation that would change that disparity by expanding access to loans and business training for women entrepreneurs.

 Women-owned businesses in Washington State generate $26 billion and employ 153,000 people but women entrepreneurs in Washington still face significant challenges in getting fair access to capital when starting their own business.

A report released today by Senator Cantwell, Chairwoman of the Senate Committee on Small Business and Entrepreneurship’ reveal that in many cases, conventional business loans aren’t tailored to fit the needs of women business owners and that women-owned businesses nationally face significant barriers in gaining access to lending that their male counterparts do not.

Among the findings in the Washington state report:

Growth in Washington state: From 1987 to 2013, the number of women-owned firms increased by 90 percent, compared to the national growth rate of 59 percent. Since 2007, women-owned firms in Washington State have added 5,000 new jobs.

Access to lending: Nationwide, just $1 in every $23 of conventional small business loans goes to women. The SBA often is a good option for women who are unable to obtain a conventional loan. But in Washington State, women received 11 percent of the value of SBA loans. Nationally, women received 13 percent of the total dollar value. Women also receive just 7 percent of venture funds.

Washington State has three SBA-operated Women’s Business Centers in Seattle, Lacey, and Spokane. These centers successfully provide business training and counseling to women business owners and have helped start 116 new businesses in 2014. But they continue to operate on funding levels set 15 years ago, despite increasing needs.

Equal access to federal contracts: The federal government has never met its goal of awarding 5 percent of contracts to women-owned businesses – a goal enacted by legislation 20 years ago. In Washington State, the percentage is lower. Women-owned businesses received just 1.6 percent of all federal contracts awarded in Washington State. That translates to $313 million in lost contracting opportunities.

A copy of the report is available here.