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Program will support women-owned businesses

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After a long delay, a program that will set aside government contracts for women-owned businesses will begin later this year, the Austin Business Journal reported.

The U.S. Small Business Administration is establishing a women’s contracting program as a way to help the federal government reach its goal of awarding at least 5 percent of its contracts to women-owned businesses. The impetus for the program dates back to 2000, when Congress directed the SBA to establish such a program. Some people are furious over the long delay in implementing the program, which they say has resulted in businesswomen losing out on billions of dollars in federal contracts. Women business owners are currently getting only 3.3 percent of federal contracts.

“Year in and year out, the SBA claims they are going to implement the 6-year-old women’s federal procurement program – but they don’t,” said Margo Dorfman, CEO of the U.S. Women’s Chamber of Commerce. Her organization sued the SBA in 2004 over its failure to implement the program. In 2005, a federal judge ruled that the SBA’s delay was “unreasonable,” and is monitoring the agency’s progress.

SBA Deputy Administrator Jovita Carranza said his agency plans to release a study this month that identifies where women have been underrepresented. The report will help the government determine which industries should set aside contracts for women-owned firms.   

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