Velázquez Discusses Sequestration, Impact on Women-Owned Businesses

Velázquez Discusses Sequestration, Impact on
Women-Owned Businesses

Washington, DC – Rep. Nydia M. Velázquez (D-NY) joined Democratic Leader Nancy Pelosi (D-CA) today at a press conference regarding the impact of sequestration on women.   Rep. Velázquez’s remarks focused on the impact of the sequester on women-owned small businesses.  Below are the text of her remarks:

“Women-owned businesses are an economic powerhouse. At 8 million strong, women-owned firms make up a third of U.S. companies and generate well over 1 trillion in sales annually. These businesses are some of the most innovative – and unlike their corporate counterparts they don’t have an army of attorneys; they don’t have a gigantic sales team; and they don’t have ready access to the capital markets.  Filling this void is the Small Business Administration – which fuels our nation’s commitment to women entrepreneurship.

“The sequester has the potential to undermine this very promise by reducing SBA funding across-the-board.  As a result, loans to women-owned small firms will be reduced by $250 million, translating to a decrease of 3,500 new jobs.  This means that fewer women will be able to get the funds needed to turn their ideas – their dreams – into reality.

“And when it comes to federal contracting, these programs are critical.  Having never reached its measly 5 percent goal for women-owned businesses, the sequestration has the potential to massively set back what little progress has been made.  A further $1.3 billion in small businesses contracts will be lost for women entrepreneurs, which will jeopardize up to 15,000 of their employees.  These losses, when combined with the closure of nearly 80 entrepreneurial training and counseling centers – which give women the confidence, know-how, and skills to become entrepreneurs – will cause the nation to miss out on a key stimulus for job creation. 

“Given the challenges they have faced, women-owned businesses rely on these very programs to level the playing field.  By slashing these initiatives, years of progress can be undone in an instant.  And this is not only bad for women – but bad for the U.S. economy.”

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