Initiate a pilot 7(a) "mini-loan" program in

FY 1980 for women whose needs for starting or expanding a business are for amounts under $20,000 and evaluate the usefulness of this pilot program in creating successful enterprises over a reasonable length of time.

Encourage full participation of women in
procurement activities by instructing SBA's.
Procurement Center Representatives to locate
and assist women-owned businesses;

Try to add 15,000 women-owned firms to SBA's
new Procurement Automated Source System (PASS)
by the end of FY 1980.

Recent data indicates that women-owned firms will receive only about $63 million in Federal procurement dollars in FY 1979. The Task Force found that efforts to encourage full participation of women in Federal procurement activity have been less than adequate. Therefore, the Office of Federal Procurement Policy has agreed to:

O Set the following overall goals for Federal prime contracts:

1) An approximate doubling of the dollar

2)

amount of Federal prime contracts to womenowned firms in FY 1980 to at least $150 million.

A redoubling of this amount in FY 1981 to
$300 million.

Develop and implement a process for collecting data on the numbers and amounts of Federal prime contracts and subcontracts under Federal prime contracts awarded women-owned business;

Revise government-wide procurement regulations
to assure that Federal prime contractors increase
their use of women-owned firms as subcontractors.
These revisions include:

1)

2)

Developing clauses for inclusion in prime contract solicitations and in prime contracts which encourage the use of women-owned firms as subcontractors to the maximum degree feasible.

Study the feasibility of developing an
incentive clause for inclusion in appropriate
prime contracts which offers a dollar award
to a prime contractor for subcontracting with
women-owned firms in excess of an agreed
upon goal for such subcontracting.

The Task Force also found a serious lack of data about women entrepreneurs and the types of the businesses they own. In order to develop this needed information, the Department of Commerce has agreed to have the Census Bureau update its 1972 survey on women-owned businesses and conduct a special survey to gather additional essential demographic data on the woman business owner and her enterprise.

The Task Force stressed the importance of early education in encouraging women to have a free choice of all possible careers. Therefore, the Secretary of Health, Education, and Welfare has agreed to take the following actions:

Develop and promote educational and counseling programs emphasizing entreprenurial skills and business enterprise as a career option for both males and females.

Develop such programs for use in the Nation's public and private secondary schools, institutions of higher education and vocational education programs.

Report to me at the end of FY 1980 on the progresas of such efforts and on future plans.

This memo and the Executive Order express my personal commitment to a national women's business enterprise policy. I expect the heads of all departments and agencies with business assistance programs and activities such as those mentioned in Section 1 of the Executive Order, and those with procurement authority, to substantially improve the quality of this assistance and support to businesses owned by women. With your commitment and cooperation, we can greatly improve the opportunities for women who own businesses in our economic system.

May 18, 1979

JIMMY CARTER

Honorable G. V. (Sonny) Montgomery
Chairman

Subcommittee on Oversight and Investigations
Committee on Veterans' Affairs

House of Representatives

Washington, D.C.

Dear Mr. Chairman:

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This is in response to your letter of April 1, 1981, requesting that additional information be provided by the Small Business Administration in connection with the "special consideration" provisions of P.L. 93-237.

Regarding your request for delinquency rates, we are enclosing two pages from our February 1981 Management Information Summary. Page 1B relates to dollar amounts of business loans. Page 2B contains similar detail as to the number of loans. You may note, for example on page 2B, that 4.83 percent of all guaranty loans are 60 days and over delinquent. Page 1B indicates that 4.65 percent of the dollars involved in those same loans is considered 60 days and over delinquent. Please also note that the statistics are categorized by programs with the exception of the last line which effectively answers your question for minorities.

We have requested from our computer department that similar details be extracted as of February 1981 for women, veterans, and Vietnam veterans. That information will be supplied to you within the next two weeks.

In reference to the recommendation provided by the American Legion that a committee be established to study and clarify the meaning of "special consideration" let me say that I would be happy to discuss this further with the American Legion.

I am enclosing a copy of Executive Order 12138, dated May 18, 1979, entitled "Creating a National Women's Business Enterprise Policy and Prescribing Arrangements for Developing, Coordinating and Implementing a National Program for Women's Business Enterprise."

Former President Carter did not issue an

Executive Order for minorities but Congress did enact into law P.L. 95-507 during his Administration which dealt mainly with assistance to minorities. I have also enclosed a copy of that Public Law for your use.

Let me assure you that we will get back in touch with you on the remaining statistical data as soon as it is available. I appreciate your concern and look forward to working with you in the future.

Sincerely,

Enclosure

Michael Cardenas

Administrator