May 10-13: SBA, AEO to Co-Sponsor National Conference to Promote Microenterprise Development and Job Creation

Expanding opportunities for entrepreneurs and small-business owners will be the focus of the 2010 National Microenterprise Conference and Training Institute, May 10-13, at the Hyatt Regency Crystal City Hotel in Arlington, Va.

"Some of the most innovative and promising businesses across the country are microenterprises, small companies that offer significant opportunities to create jobs and strengthen the nation’s competitive edge in the global market," said Karen G. Mills, administrator, U.S. Small Business Administration. "This conference gives us the chance to bring together a broad coalition of organizations to ensure we are leveraging our resources in effective ways and making sure that these entrepreneurs and small-business owners have the tools and support they need to succeed and drive our nation’s economic recovery.”

"Our country has been, and its recovery will be, built on the enterprise of our people -- on their ideas, their energies, and their willingness to take risks and pursue their aspirations," noted Connie E. Evans, president and CEO of the Association for Enterprise Opportunity [pictured]. "Through microenterprise development, those kinds of dreams can become reality for countless numbers of people to create jobs, support their families, and revitalize our communities. This gathering represents more than a conference; it is a validation of our commitment to provide economic opportunity for those who seek to seize the promise of America through microenterprise."

Co-sponsored by SBA and AEO, the event will bring together hundreds of representatives of nonprofit institutions, government agencies, foundations and universities to promote and support small-business job creation in the U.S.

The event will focus on microenterprise development, credit building and microfinance, and will feature workshops, town hall meetings, networking opportunities, plenary sessions and speaker presentations on solving the challenges that small businesses face in order to succeed in the new economy.

Mills will be the luncheon keynote speaker on Tuesday, May 11. In addition to Mills and Evans, other confirmed speakers include:

* Robert Annibale, Global Director, Citi Microfinance & Community Relations
* James Gutierrez, Founder & CEO, Progress Financiero
* Jennifer Henderson, CEO, Strategic Decisions LLC; and Director, Ben & Jerry’s Homemade Ice Cream Inc. Board of Directors
* Ted Howard, Executive Director, Democracy Collaborative
* Chris Larsen, CEO, Prosper.com
* Rae-Ann Miller, Special Advisor to the Director, Division of Insurance and Research, FDIC
* Eskinder Negash, Director, Office of Refugee Resettlement, Administration for Children and Families, U.S. Dept. of Health and Human Services
* Jane Oates, Assistant Secretary of Employment and Training Administration, U.S. Dept. of Labor

About SBA & AEO
SBA is an independent agency of the federal government that was created to aid, counsel, assist and protect the interests of small-business concerns, to preserve free competitive enterprise, and to maintain and strengthen the overall economy of our nation.

AEO is a national membership organization and voice of microenterprise development in the United States. AEO strives to foster greater understanding of the importance of strong and effective microenterprise initiatives to the U.S. economy, and to increase capacity of the field to support underserved entrepreneurs in starting, stabilizing and establishing businesses.

For more information about the 2010 National Microenterprise Conference & Training Institute, or to register as a participant, visit http://www.microenterpriseconference.org/.

SOURCES: Association for Enterprise Opportunity [photo], U.S. Small Business Administration
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Committee Seeks to Strengthen Key Initiatives for Sustained Economic Development

In many underserved neighborhoods, small businesses are an important engine of growth and revitalization, bringing much needed jobs and commerce. Oftentimes, the individuals wishing to start these businesses have difficulty securing adequate finances, leaving their aspirations stalled in the planning phase.

Today, the House Committee on Small Business examined two key initiatives that support economic revitalization in some of these disadvantaged communities: 1] the Microloan Program, and 2] the Program for Investment in Micro-Enterprise [PRIME] -- both of which fall under the purview of the Small Business Administration [SBA].

"There are many budding entrepreneurs who strive to open their own business, but due to a lack of experience or limited credit history, cannot secure capital," said Nydia M. Velázquez, committee chairwoman. "The microloan and PRIME programs have been instrumental in turning their dreams into reality."

Since its inception in 1994, the microloan program has provided credit to more than 700,000 small firms -- many headed by women, minorities and others who are facing challenges getting their ventures off the ground. These businesses have helped bring economic growth to areas where it is desperately needed, creating or retaining about 10,000 jobs in 2006, according to the SBA.

With a default rate of less than two percent, these investments have not only increased prosperity, but have done so while maintaining a better repayment record than traditional loans made by commercial lenders.

"These programs have been vital in moving people not just from welfare to work, but from welfare to business ownership -- an amazing accomplishment," Chairwoman Velázquez noted.

Despite this record of success, the Bush administration has proposed to eliminate the microloan program each year for the past four years. In its latest budget request, it has recommended increasing the cost of the loans for the borrowers, and to completely eliminate PRIME. At the hearing, members rejected these proposals and outlined ways to strengthen the current programs, making capital more affordable for borrowers.

Currently, microloan recipients cannot use their repayment history to improve their credit score. Building a strong credit history is a challenge for many business owners. By changing the current system, borrowers could improve their credit records, thus increasing the stability of their business and their ability to obtain future funding.

The committee also proposed reducing costs and providing greater flexibility, allowing lenders to better meet the needs of their clients. In striving for these goals, members seek to make loans more accessible for the next generation of entrepreneurs.

"For many aspiring business owners, a microloan is their only option, and we simply cannot allow these entrepreneurs to be left behind," Chairwoman Velázquez said. "The answer is simple: these programs must be permitted to continue, and any proposal to diminish them must be firmly rejected."

GoodBiz113's take: SBA's microloan and PRIME programs need to be sustained in order to help ensure that future businesses can thrive in underserved areas. Further, we'd like to see the changes proposed by Velázquez's committee embraced by her colleagues and the White House, and implemented ASAP.

Sources: PBS [file photo], U.S. House Small Business Committee
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