SHOW ME THE MONEY!

There's a song in the musical Cabaret that says, "Money makes the world go round, the world go round, the world go round..." And to a great extent, that's true, more now than ever before. Yet, while women own 40 percent of all U.S. firms, are starting them at twice the average rate, and are more apt to still be in business after three years, they still do not have access to the money they need to expand their businesses-especially the bigger firms. Last year, only 30 women-owned businesses got equity capital-out of a total of 1,850 loans! That's only about 2 percent.

Now, if you think that only 30 women-owned businesses out of nearly 2,000 loans approved deserved venture capital, then all is as it should be. But you know better-we all know better-and we know something has to change.

The SBA is proud to be at the forefront of that change. Just a few months ago, we licensed the first two women-owned, women-oriented venture capital firms in the history of the Small Business Investment Company Program. Well (while we're using musical metaphors), the beat goes on: SBA Administrator recently announced a third women-owned, women-oriented venture capital firm, Viridian Capital, L.P. Formerly known as Aurora Venture Partners, it is in San Francisco-so now the sources for women to access venture capital span the nation! The other two are the Women's Growth Capital Fund in Washington, D.C., and Capital Across America in Nashville. And in case it might come in handy (hint hint), here is contact information for all three:

Capital Across America
414 Union Street, Suite 2025
Nashville, TN 37219
Phone: 615-254-1414
Fax: 615-254-1856

Viridian Capital
110 Sutter Street, Suite 515
San Francisco, CA 94104
Phone: 415-391-8950
Fax: 415-391-8937

Women's Growth Capital Fund
1054 31street, NW, Suite 110
Washington, DC 20007
Phone: 202-342-1431
Fax: 202-342-1203

Equity capital is needed by businesses that require significant financings to grow. And while most women-owned businesses are small, the areas of fastest growth for firms headed by women are industries that often do require sizeable loans to expand: wholesale trade, agriculture/forestry/fishing, transportation/communications/public utilities, manufacturing and construction. The SBA is doing all it can to help them get the funding they need.

One of our women's business centers, the Center for Women & Enterprise, Inc., in Boston, recently launched The Venture Center, dedicated to helping women-owned firms secure equity financing. The heart of the program is Business Plan Boot Camp, an intensive, 35-hour course that takes place over two weekends. The goal is to get business plans to investment level,

targeting firms with the potential to grow rapidly to about $50 million in sales. The WBC then helps the business shop its application to a network of private "angel" investors and investment companies that are willing to invest in seed and early-stage firms. Although it's a new program, The Venture Center is already tremendously successful, and is even drawing clients from New York. This is a model program that others may want to emulate. For more information, contact the Center for Women & Enterprise at

45 Bromfield Street, 6th Floor
Boston, MA 02108
Telephone: (617) 423-3001
Fax: (617) 423-2444
E-mail: info@cweboston.org

SBA Brings the SBIC Program to YouTo help make the sometimes-arcane world of venture capital more accessible-and to encourage the formation of more small business investment companies-the SBA is sponsoring six workshops on the capital needs of inner cities and rural communities. Bankers, venture capitalists and representatives from community development groups will learn how the Small Business Investment Company Program can help them push back the financial frontier and establish profitable new markets.

Workshop dates and locations:

Chicago March 23
Kansas City, Mo. April 6
New York City April 12
Atlanta May 6
Dallas May 17
San Francisco June 2

To register for a workshop:

By phone: 1-877-REGISTA
                1-800-734-9496

By fax: 301-805-1809

By e-mail: registration@newmarketsworkshop.com

By mail: New Markets Workshop
             c/o SMCO
             4713 Silverbrook Way
             Bowie, MD 20720

For more information, visit the SBIC Web site at www.sba.gov/inv/ .

Exports = Earnings

The SBA is making a strategic commitment to helping small businesses get into the international trade arena. SBA Administrator Ai'da Alvarez has just announced the results of new SBA research on American women business owners and international trade. "International trade offers wonderful opportunities for women-owned businesses," she said, "and should be an essential part of any company's growth strategy."

The research shows that exporting is profitable, in most cases with the first transaction. Of the more than 160 firms responding, the SBA study found that more than half have annual sales of over $1 million, and almost 15 percent have annual sales of over $5 million. The exporting firms have deep U.S. market penetration as well, with 47 percent doing business in at least half the states and 20 percent doing business nationwide. While about 40 percent cited increased sales as a reason for exporting, almost 90 percent of the firms increased in size as a result of exporting, and nearly 80 percent enjoyed increased profits.

Canada ranked as one of the first export destinations for nearly half of the firms in the study. Women exporters considered contacts to be the most important ingredient for success-and lack of contacts as the greatest obstacle. (This finding underscores the importance of trade missions like those the SBA Administrator leads to U.S. trade partners around the world. These provide extensive opportunities for networking with interested firms in other countries.)

For a copy of the study, visit the SBA Web site at www.sba.gov/canada/ or the Online Women's Business Center at http://www.onlinewbc.org/ under What's New, or write to:

...which leads directly to the opportunities afforded by the upcoming Canada-USA Businesswomen's Trade Summit

Toronto on May 17-21-Through this trade summit, women small business owners can explore options, work directly with Canadian women business owners and agencies, and establish contacts crucial to their success. For more information, visit the Online Women's Business Center at http://www.onlinewbc.org/ or the conference Web site at www.businesswomensummit.com/ , or call (toll free) 1-877-660-0224.

Also Coming Up

MILLENNIUM EVENING AT THE WHITE HOUSE

The Sixth Millennium Evening at the White House will be March 15 from 7:30 to 9:00 p.m. (EST). President and Mrs. Clinton invite you to join them via satellite or cybercast from the East Room of the White House for a discussion on American women in the 20th century. You should also know that Mrs. Clinton is very interested in finding ways to get equity capital to women-owned businesses-what they need to make their dreams soar!

To receive satellite downlink coordinates, register as a downlink site, or learn more about the Millennium events and programs, visit the Millennium Web page at www.whitehouse.gov/Initiatives/Millennium/ .

VICTORIA MAGAZINE-PASSIONS INTO PROFITS SEMINAR

On April 8, in New York City, Victoria Magazine presents "Passions Into Profits-A Working Seminar for Entrepreneurial Women." Learn to define a market niche, identify your interests and abilities, and get practical information on financing and the resources you need for success. For more information, visit the Online WBC at www.onlinewbc.org/ or the Victoria Web site at www.victoriamag.com/ .

Steps to Success, May 21-22 in New York City, with downlinks to eight major cities: Chicago, Columbus, Dallas, L.A./Orange County, Miami, Philadelphia, San Francisco, Washington, D.C.

What if someone assembled some of the most revered and influential women
executives and business owners in one room?
Provided access to some of the top-thinking minds in business today?
Offered a unique opportunity to network with other accomplished career women?
Provided effective strategies to help you achieve success?
The National Association of Female Executives has done just that. I'll be there, along with lawyer, author and TV host Star Jones; Jean Hamilton, CEO of Prudential Institutional and executive vice president of Prudential Insurance Company of America; founder, chair and CEO of iVillage, Candice Carpenter; Kim Calero, NAFE president; Judsen Culbreth, editor-in-chief of Working Mother Magazine; Lynne Waymon, author and management trainer; and Aliza Sherman, president of Cybergrrl, Inc. Interested? Call 1-800-285-NAFE or visit the NAFE Web site at www.nafe.com/ for more information or to register.

That's it for this month. As always, I invite you to share this with anyone you feel would be interested. And, of course, we appreciate your feedback-or news you might have to share. Let us hear from you by e-mail at owbo@sba.gov or by fax at 202-205-7287. If you use any of the information we send, we'd love to have a copy. You can fax it or send a copy to the Office of Women's Business Ownership at 409 Third St., SW, Washington, DC 20416.

We look forward to hearing from you.
Sherrye Henry
Assistant Administrator for Women's Business Ownership