After 10 years of delay, the Small Business Administration will implement a federal contracting program for women-owned businesses early next year.

In the waning days of President Bill Clinton's administration, Congress directed the SBA to establish a program that would set aside federal contracts for women-owned businesses in industries where they have been underrepresented. The program was never implemented during President George W. Bush's administration.

President Obama's administration scrapped the Bush administration's proposed regulations, which would have limited the contract set-asides to only 31 industries. The new regulation, which was proposed in March and now has become final, expands the program to 83 industries.

"This is a victory for all women who want to contract with the federal government," said Ann Sullivan, a lobbyist for Women Impacting Public Policy. "We thank SBA Administrator Karen Mills and her team for making this happen."

To be eligible, businesses must meet industry-based, small business-size standards and be majority-owned and controlled by women. Agencies will be authorized to set aside contracts of up to $3 million for such businesses, except in manufacturing, where the size of the contracts can go up to $5 million.

Women-owned businesses can self-certify that they are eligible for the program, or they can be certified by third parties, including government entities and private certification groups. Businesses that self-certify will have to submit documents proving their eligibility for the program.

The SBA said it will "vigorously" pursue punitive action against businesses that falsely claim they are eligible for this program. Government Accountability Office investigations have found that ineligible firms have received contracts in other procurement programs aimed at specific types of small businesses, such as firms located in low-income Hubzones and businesses owned by service-disabled veterans.

Over the next four months, the SBA will develop the technology and infrastructure to support the certification process and oversee the program. Contracting officers at federal agencies will be able to start setting aside contracts for women-owned businesses in early 2011, according to the SBA.

For more information, see www.sba.gov

Business consultant chairs women's panel

President Obama appointed business consultant Donna James to chair the National Women's Business Council, an advisory panel on issues that are important to women business owners.

James is managing director of Lardon & Associates, a business consulting firm in Columbus, Ohio. She is a former senior executive with Nationwide Insurance and Financial Services, and founded and chairs the Center for Healthy Families, a nonprofit organization in Columbus. She also serves as a director of Limited Brands, Coca-Cola Enterprises, Time Warner Cable and CNO Financial.

For more information, see www.nwbc.gov

Higher guarantee back in place on SBA loans

The Small Business Administration has resumed guaranteeing 90 percent of loans made through its flagship 7(a) program, an incentive that helped SBA lending rebound after it cratered during the financial crisis of 2008.

The 90 percent guarantee, up from the typical 75 percent, was first funded by the economic stimulus bill, which also enabled the SBA to waive some fees on its 7(a) and 504 loans. These enhancements expired at the end of May but were renewed through the end of December by the Small Business Jobs Act, which was signed into law Sept. 27.

The higher guarantee makes SBA loans less risky for lenders and the fee waivers made them more affordable for borrowers. As a result, SBA lending continued to grow in fiscal 2010, which ended Sept. 30.

Lending through the 7(a) and 504 programs totaled more than $22 billion in fiscal 2010, up from more than $17 billion in fiscal 2009. Nearly 55,000 small businesses received loans through these programs in fiscal 2010.

"The success of these loan enhancements has meant tens of thousands of small businesses have been able to get the capital they need to not just survive the recession, but to grow and create much-needed jobs in communities all across the country," said SBA Administrator Karen Mills.

The Small Business Jobs Act also increased the size limit on 7(a) loans from $2 million to $5 million, and raised maximums for 504 loans, as well. These higher loan limits, however, won't go into effect for another 45 to 60 days, according to the SBA.

Meanwhile, one loan program created by the economic stimulus bill ended Sept. 30.

Through the America's Recovery Capital loan program, the SBA guaranteed 100 percent of loans up to $35,000 issued by banks to small businesses that were struggling to make payments on existing debt. The SBA paid the interest on these loans.

For more information, see www.sba.gov

More than 90 nonprofits awarded training grants

The Small Business Administration awarded $8 million in grants to 92 nonprofit organizations around the country that will provide training to low-income individuals who want to start or grow businesses.

The winners were selected from among 215 applicants for the funding. The organizations had to match the SBA grants with their own funding.

For more information, see www.sba.gov

Kent Hoover: khoover@bizjournals.com