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By: Ann Sullivan WIPP Works in Washington As most of you know, WIPP has been at the forefront of fighting for a successful women’s procurement program for more than a decade. Eleven years after the law was passed, the Small Business Administration (SBA) finally put the program into place. With every objection, we overcame it by securing a lifting of the dollar caps on awards and getting sole source authority in the program (pending SBA final rulemaking). Enter a report by the SBA Office of Inspector General (OIG), which took a look under the hood of the WOSB procurement program. And they didn’t like what they saw. The report found that contracts awarded through the program had been done so mistakenly. A major issue was failure of women-owned businesses to fully register in not just the System for Award Management (SAM), but also in the SBA Repository. To be eligible, a WOSB must register in both. Many overlooked the repository (more on that below). Citing misuse and confusion by contracting officers, the report raised concerns about management of the WOSB procurement program. Critical oversights included improperly setting aside contracts in industries not served by the WOSB program as well as failures by women business owners to upload all the necessary documents to the WOSB repository. Efforts to educate contracting officers already include adding WOSB to the contracting education curriculum at agencies as well as SBA’s ChallengeHER program (done in partnership with WIPP), which educates both procurement professionals and entrepreneurs. Women business owners too can be part of the solution. WIPP encourages all women business owners to ensure they are updated in the SAM; make sure allnecessary documents have been uploaded to the WOSB repository (find the full list under repository links on SBA’s WOSB page); and ensure a contract is being set-aside in the right NAICS codes (find the WOSB and EDWOSB NAICS codes here). A webinar with SBA on certification is available on WIPP’s website. The WOSB procurement program was created to help women entrepreneurs. With it came the rules of how the program can be used. It is up to us, as possible beneficiaries, to be just as responsible as a contracting officer. It will come as no surprise to those familiar with federal contracting that those officers have a difficult job. Ensuring that we have all done our part, to be properly certified and registered in the repository, is simply good business to keep contracting officers interested in the program. The report’s author, SBA’s Office of Inspector General, is also the lead on fighting fraud in the program. WIPP has long advocated in support of this program and increasing access to federal markets for genuine women business owners. If you suspect fraud in the program, report it to SBA. It is the OIG’s responsibility to follow up on all reports of fraud. We should at least know the timetable and number of reports for these investigations. Given the relative newness of the program, everyone will benefit from understanding the program and the access to federal contracting it provides to women owned companies. I would also add, as someone who has very personally fought for the success of this program, that those companies wrongfully taking advantage of this program are hurting everyone. While we all feel pressures to gain an edge in competition and in business, fraudulently using this program only stands to threaten all women entrepreneurs. It embarrasses me as a women business owner myself that women would so recklessly throw aside this enormous opportunity. Keeping this program beyond reproach is critical to both the program’s future and WIPP’s advocacy. The first step is informed women entrepreneurs. I challenge everyone to make sure you have submitted all the required documentation to the WOSB repository, know the rules of the program, and if you see fraud, report it.

By: Ann Sullivan In an epic week fueled by bipartisanship, the Senate Small Business Committee and the House Armed Services Committee put small business issues front and center in a way that was nothing short of amazing. This just goes to show that the “do-nothing Congress” does in fact do plenty when it comes to small business. Let’s first talk about the Senate Small Business Committee. Across its Senators, they introduced and are expected to pass three bills important to WIPP. One bill would extend the Small Business and Innovative Research program (SBIR) and a related program the Small Business Technology Transfer program (STTR) and included a mandate to do better outreach to women and minorities (thanks to Michigan’s Senator Gary Peters). The government funds innovative products and services through federal grants to bring the products to commercialization. Don’t know about it—look into it at: SBIR.gov. By the way, this is part of WIPP’s access to capital platform – so another accomplishment for our advocacy. Are you a contractor? Then you might be interested in the introduction of The Small Business Transforming America's Regions Act of 2016. If you aren’t aware of the HUBZone program, you should look into it. The government gives a bid preference to companies who invest in low-income areas. It could supplement the WOSB program you already belong to. At least check it out at SBA’s HUBZone Page. Need capital? The Committee is expected to modernize the Microloan Program administered by the SBA. The program lends $50,000 and below to companies who need capital. In case you didn’t know it, there is a whole nationwide network of lenders who stand ready to lend, backed by the government’s guarantee against failure. Now onto the House Armed Services Committee. This Committee and its counterpart, the Senate Armed Services Committee, prepare a bill each year, the National Defense Authorization Act (NDAA) that funds all military operations. It is a must-pass bill because the military requires certainty in funding. In order for the US to keep its competitiveness, it must have a strong and diverse industrial base. That’s where small businesses come in. To that end, a whole section of the bill is devoted to small business contracting changes and strengthening resources for women entrepreneurs including women’s business centers. The bill: Requires an annual report on the share of contract dollars awarded to small businesses without any exclusions Establishes a pilot program that enables contractors to receive a past performance rating by submitting a request to the contracting officer and/or prime contractor Requires the SBA to develop a list of no-cost programs that assist small businesses in compliance with Federal regulations. Strengthens agency small business offices to recommend which small business set-aside programs should be used for each contract at their agency. Requires commercial market representatives (CMRs) to assist prime contractors in identifying small business subcontractors and assess the prime’s compliance with their subcontracting plans • Adds HUBZone and SDVOSB to small business office oversight (previously not listed in statute but already happening in practice) In case you do not remember, the Women’s Business Center reforms would raise the funding authorization level by 50% from $14.5M to $21.75M and increase grants to individual centers as well as streamline the program. Better program, better training for women. How did all of this happen? Champions. The leadership of the House Small Business Committee, which passed the provisions now part of the NDAA, worked together hand-in-glove to assist our businesses. Chair Steve Chabot (R-OH) and Ranking Member Nydia Velazquez (D-NY) set the gold standard of getting things done without a partisan fuss. Similarly, the Senate Small Business Committee, under the guidance of Chair David Vitter (R-LA) and Ranking Member Jeanne Shaheen (D-NH) worked together to introduce reforms good for small businesses. The real story behind all of this activity is the power of small businesses uniting to ask for changes in contracting and better resources to succeed. Organizations, such as WIPP are the champions, walking the halls of Congress to press for better programs and fairness in contracting. While I would agree that Congress is more partisan than ever before, there are bright spots. This past week was certainly one—all made possible by elected officials crossing party lines for the good of women-owned companies. If you ever wondered what your WIPP membership is paying for or if you need a reason to join WIPP, look no further. The advocacy WIPP provides on your behalf is the best return on investment you may ever find. It requires almost none of your time, requires a minimal monetary investment (dues) and you get a whole team dedicated to advancing your agenda to the Congress on a daily basis. I call that value.

By: Ann Sullivan WIPP Works in Washington Just a few days ago, the Small Business Administration announced a proposed regulation that puts in motion sole source authority for the WOSB procurement program. SBA did a very wise thing—it separated out the sole source authority piece from the certification portions of the law. Why? Because sole source authority is standard language included in the HUBZone and Service-Disable Veterans programs. It is not a heavy lift to basically cut and paste the language into the WOSB program. The certification piece, on the other hand, is not standard language. Each small business program administered by SBA has different certification requirements. The law also reads that SBA doesn’t have to put in place a certification program for WOSBs. SBA can choose to accept other federal agency, state certifications or 3rd party certifications. Or, SBA could establish its own certification for WOSBs if it so chooses. This determination will require a thorough examination of resources SBA can devote to establishing and policing the certification and whether it could launch a program without significant delays as have been experienced in other programs. Yet another consideration SBA will have to make is what to do with the tens of thousands of women who self-certified for the program. Without a proper transition, the program would be thrown into chaos. For these reasons, the certification part of the law needs much more consideration and public comment than does the sole source portion of the law. Now you need to take action. If you agree with SBA’s expeditious implementation of sole source, you need to let your voice be heard. Go to www.regulations.gov. Keyword: SBA. Click on the regulation and you will see the opportunity to comment. Let the SBA know that women business owners are waiting excitedly on this change. In case you are not familiar with sole source authority, it allows contracting officers to award a sole source award through the WOSB procurement program, given the contracting officer does not have a reasonable expectation that two or more businesses will submit offers. Sole source contracts through the program are limited to $4-6.5 million depending on the industry. SBA has taken the first step toward putting the WOSB procurement program on equal footing with other SBA programs. We expected no less.

By: John Stanford WIPP recently submitted testimony to the House Small Business Committee on comprehensive tax reform. This blog gives an overview of WIPP’s advocacy efforts. For more details, I encourage you to read the testimony. Our government relations team strives to make official communications as easy-to-read as possible, but should you have questions please reach out to WIPP. Women entrepreneurs deserve a tax system that rewards the effort, tenacity, and risk it takes to start and grow a business. Moreover, they deserve a system of revenue collection (because that’s what taxes are) that is simple and fair. In testimony submitted to the House Small Business Committee, WIPP said just that. Citing reports from the IRS National Taxpayer Advocate as well as the SBA Office of Advocacy, the testimony documents what women business owners already know: the tax system is broken, failing under the weight of complexity, uncertainty and outdated policies. But more importantly, the testimony addresses the impact of possible reforms – and the need for any overhaul to be comprehensive. What does that mean? It means that the idea to lower the corporate tax rate, favored by the White House and some in Congress, must not happen independently of adjusting individual rates in a similar manner. This distinction matters because so many businesses, including almost 9 in 10 women-owned businesses, are structured as “pass-through” entities paying taxes as individuals (including S-Corps, Sole-proprietorships, partnerships, and LLCs). Corporate-only reforms would be unfair to these businesses – and for that reason WIPP has always supported comprehensive (corporate + individual) reform. The testimony underscored this important point. In addition, WIPP identified tax policies that, absent major reforms, would benefit women entrepreneurs. This includes making more small business tax credits and deductions permanent. In recent years, these tax “extenders” have been extended (hence their name) at the last minute, or even retroactively – not a good way for business owners to plan their budgets. WIPP also asked Congress to consider tax credits that benefit new businesses, helping offset the costs of launching a new company. Another policy request was to avoid changing the Employee Stock Ownership Plan (ESOP) provisions in the tax code, as these have proven to be both popular and good tools to incentivize productivity and long-term business health. In agreement with the idea that simple businesses (sales – costs = income) should have simple taxes, WIPP also supports simplifying the cash accounting method and expanding its optional use to more small businesses. Finally, with healthcare costs an always-growing burden on employers, WIPP continues its support of expanding the Small Business Health Care Tax Credit so more women entrepreneurs minimize the cost of providing healthcare to employees. More ideas for reforming the tax system to incentivize entrepreneurship and innovation are out there. WIPP will continue working to identify policies that let women business owners focus more on their business and less on complex tax requirements. At the end of the day, all of these decisions should be made with the basic principles of simplicity and fairness in mind. And that’s exactly what we asked Congress to do.

The WOSB procurement program website is undergoing a facelift. A new website, called SBA ONE, will allow for the electronic submission of SBA forms, as well as a streamlined location to monitor all certifications for your company including the repository. With the change, there are three things you need to know: All WOSBs will need to create a new login for the new system. The new website is actually an entirely new system and as such all WOSBs will need to create a new account and login (but not reload all documents – see next). The SBA is also asking that after creating a new account, all WOSB/EDWOSB companies submit new Form 2413 (WOSB certification) and/or Form 2414 (EDWOSB certification) electronically. Businesses should do this as soon as possible. The repository is being migrated, but is currently closed. This is important for two reasons: 1) your documents previously submitted should move to your new account and not require resubmission (except as mentioned above a new electronic Form 2413/2414); and 2) Contracting officers will not be able to view your repository documents for WOSB awards. Instructions for you to provide to a CO about how they can confirm your eligibility is available at the end of this document. This only impacts WOSB/EDWOSBs about to win EDWOSB or WOSB set-aside or sole source awards. The new site supports self-certification. Self-certification for WOSB/EDWOSBs remains an option until SBA finalizes new certification requirements. The website supports companies electing this option by allowing for the electronic submission of required documents. Third-party certifications can be uploaded as well. SBA ONE, located at certify.sba.gov, will eventually house all program certifications, but is beginning with the WOSB program. Additional programs will be incorporated onto the site on the following projected timeline: 8(a) Business Development Program (Fall 2016), HUBZone Program (Spring 2017) and Dynamic Small Business Search (DSBS) (Spring 2017). If you have any questions about the certification program, or comments on improving the site, please email certify@sba.gov. More details on the transition of repository documents are available at www.sba.gov/wosb. * * * Information for Contracting Officers (Direct from SBA) Due to the system upgrade, access to the WOSB Federal Contract Program Repository will be temporarily unavailable for contracting officers (CO), starting on Wednesday, March 23 at 1:00 EDT. This may be down for several weeks. During this time, in order to comply with the WOSB Program requirements at 13 CFR 127.301 and FAR 19.1505(e) (specifying that a CO shall verify that an apparent successful offeror has provided all the required documents set forth in 127.300(e) to the WOSB Repository), SBA will review the Repository on behalf of a CO. A CO may request that SBA review the Repository on their behalf by sending an email to wosb@sba.gov(link sends e-mail) with the following in the subject line: "PENDING AWARD UNDER FAR 19.505(e) VERIFICATION REQUEST- SOLICITATION NUMBER [insert solicitation number]." In the body of the email, the CO should provide the following: provide the apparent successful offeror’s DUNS, EIN, FIRM NAME, OWNER NAME; indicate whether the pending award is a WOSB or EDWOSB set-aside or sole source award; specify the NAICS code assigned to the procurement; and identify the State where the CO is located. Within 2 business days, SBA will perform the necessary check to determine whether the apparently successful offeror has filed all the required eligibility documents and provide the CO with an email response which either: (a) notifies the CO that all required documents have been provided or (b) identifies which documents are missing in order to allow the CO to file a status protest in accordance with SBA regulations and the FAR. Emails for this information will be processed only for Contracting Officers.

By: Jake Clabaugh, WIPP Government Relations Federal contractors have been hit with a bevy of new regulations over the past few months – everything from increased reporting of labor and safety violations, a raise in minimum wages and increases in mandatory overtime pay. The next shoe will drop in January 2017, when ALL Federal contractors, primes and subs, will have to provide paid sick leave benefits to workers. The Department of Labor (DOL) proposed rules that would implement this change last month. Contracts issued January 1, 2017 will require all Federal contractors to give employees 1 hour of paid sick leave per 30 hours worked. This rule will only apply to time spent on Federal contracts, so if an employee performs some work for a private sector client, those hours would not count toward sick leave accrual. Additionally, earned sick leave will carry over from one year to the next. Why just contractors? The President issued an Executive Order to make the change. Like other new regulations pertaining to contractors, the President can make these decisions for his workforce. Congress has been unable to decide if or how to move forward on these issues so the President decided to act on his own. As the Commander in Chief, he can determine procurement policy – including requirements for contractors – without Congress having to pass a law. While WIPP members support worker benefits in practice, we don’t believe that the DOL gave enough consideration to how this rule will affect small businesses. Without an exception for small businesses, the vast majority of women-owned business will be compelled to provide the same benefits as multi-billion dollar firms. WIPP’s comments to DOL on the proposed rule can be read in full here.

By: Ann Sullivan, WIPP’s Chief Advocate When speaking to groups of women business owners, regardless of where or when, they express confusion on the state of the certification process for the Women-Owned Small Business (WOSB) procurement program. Women often say that they receive conflicting information and differing opinions from SBA district offices, vendors who offer third party certification, organizations and OSDBUs at the agencies. That doesn’t necessarily mean that anyone is deliberately trying to deceive women business owners, it means that those unfamiliar with the way things work in Washington are giving inaccurate information. The information given in this article is based on our intimate knowledge of the law and the regulatory process with respect to this program. After all, we have been responsible for moving this program forward and making it work for fifteen years—so we are claiming credibility on this issue without hesitation. Fact: Self-certification and third-party certification remain options in the program until SBA changes its regulations. Since the program was implemented in 2011, women can either self-certify by submitting the proper documentation to the SBA repository or choose to certify through a third party. SBA approved four vendors for third-party certification: the Women's Business Enterprise National Council (WBENC), the National Women Business Owners Corporation (NWBOC), the US Women’s Chamber of Commerce, and the El Paso Hispanic Chamber of Commerce Women’s Business Border Center. Why the confusion? Because the law that allowed for sole source contracts also included a requirement that at some point in the future, SBA must create a certification program that does not allow for self-certification. You can read the language of the law here. As you can see from the law, the SBA can choose to go a number of different directions, such as accept state certifications, certifications from other federal agencies, keep third party certification or decide to start their own SBA WOSB certification. What is the status of the change? Congress passes laws—agencies implement them through regulation. So, even though Congress passed this particular change to the program in 2014, the SBA has to implement it in order to take effect. The regulatory process looks like this: The SBA issues an ANPRM (Advanced Notice of Proposed Rulemaking), which it did on December 18, 2015. This means the agency is gathering more information from stakeholders before it proposes a regulation. The agency reviews this information, circulates it internally and government-wide for comments and prepares a Proposed Rule. The proposed rule puts forward a suggested path of action and asks the public to comment on it. Generally speaking, there is a comment period of 60-90 days. The agency then reviews the comments and issues either a request for more comments or proceeds to a Final Rule. The Final Rule usually has 30-60 day waiting period before it goes into effect. The SBA issued an ANPRM on this program change in December, but, since the law does not specify a timetable for when the agency needs to push forward, there is no projected date on when the SBA will finalize this change. What does this mean for certified WOSBs currently in the program? No change. WOSBs that are certified, either self or 3rd party, are still consider certified. The possible grandfathering of these firms into any new system is a topic of the ANPRM (step 1 above). What does this mean for WOSBs not currently in the program? The two options – self-certification or 3rdparty certification with the vendors listed above – remain open to WOSBs. Besides certification, are there any new changes to the WOSB program? Yes. The SBA is creating a new portal, called “SBA One” for all small business certifications. Women and the first small business group to be added to the new portal and is now where all women will go through to certify. Eventually, the other certification programs will be added to use this portal. The SBA has closed the repository for this new upgrade. When it reopens as SBA One, all women will have to create a new account for the portal. For more information on this change, go to www.sba.gov/wosb. Important to note: Women in the program who are in the process of winning opportunities should tell agencies who need to check their EDWOSB/WOSB status to contact the SBA at: wosb@sba.gov. SBA will verify the information during this time period. Be sure to go to the website above for detailed information.

By: Jake Clabaugh, WIPP Government Relations If you are an entrepreneur seeking capital, the path to venture funding could be getting a little easier. Earlier this month, the House Financial Services Committee took action on two bills that make venture investments more attainable for entrepreneurs – The Helping Angels Lead Our Startups (HALOS) Act and the Main Street Growth Act. As women entrepreneurs only receive 7% of venture dollars, improving access to venture capital is a top priority in the women’s business community. Due to ambiguities in the law, pitch events or demo days that are sponsored by angel investors may or may not be legal. Yet, these events are a great opportunity for entrepreneurs to get themselves – and their products – in front of a room full of potential investors. The HALOS Act makes this easier by clarifying this ambiguity. Currently, the Securities and Exchange Commission (SEC) prohibits “general advertising” and “general solicitation,” but the HALOS act would clarify that these events are permitted for groups of angel investors and not subject to the prohibition on general solicitations. The bill’s sponsor, House Small Business Committee Chair Steve Chabot (R-OH), remarked, “clarifying the law to give entrepreneurs and investors more certainty and opportunity is a step in the right direction.” To further incentivize investment, The Main Street Growth Act (H.R. 4638) will create securities exchanges specifically for venture capital investments. Existing stock exchanges could create a new tier to specialize in venture capital investments or entirely new exchanges could be established. These securities exchanges will bring together buyers and sellers of venture capital and create a more liquid market, which will incentivize investors to support startups. While no single policy change or piece of legislation will break down the barriers that prevent women entrepreneurs from accessing capital, these incremental improvements show that Congress is committed to leveling the playing field for women entrepreneurs. WIPP’s access to capital platform, Breaking the Bank, continues to gain traction with legislators and WIPP is dedicated to growing women entrepreneurs’ share of venture capital funding.

By: Ann Sullivan WIPP Works in Washington You’ve heard the expression, “if it ain’t broke, don’t fix it.” In Washington, that means if the private market has solutions that are working fine, government intervention will probably mess it up. That is precisely what happened to Health Reimbursement Arrangements/Accounts (HRAs). Although anything healthcare-related is annoyingly complex, for simplicity’s sake, let me just explain what HRAs are. HRAs are an easy way to offer health insurance—employees shop for their health insurance and employers reimburse them whatever portion of the premium they choose to. Employees need to show that they are paying premiums in order to get reimbursement from employers. It’s that simple. This arrangement has worked for small employers for many years because of their limited access to affordable group health insurance plans. The important part of this arrangement is the tax treatment. Employers can deduct their payments and the benefit is pre-tax to employees. This is the same tax treatment companies that offer health insurance through a group plan are entitled to. Enter the IRS, the Department of Labor and the Department of Health and Human Services (HHS). These federal agencies determined that the Affordable Care Act (ACA), also known as Obamacare, prohibited these HRAs. According to the agencies, HRAs do not comply with changes made in the ACA. It is their contention (and hosts of government lawyers) that these HRAs are now considered a group plan under the law and are no longer eligible for pre-tax treatment and do not comply with the ACA reforms. In 2013, the IRS decided to begin imposing the $100/day per employee penalty to employers who continue to use this arrangement to offer health insurance to their employees. Ouch. With that fine looming over their heads, small employers were faced with two choices: 1) Stop reimbursing employee health insurance costs; or 2) Put in place a group plan, most likely through the small business (SHOP) exchanges. There are a few things wrong with this approach, beyond the obvious. First, SHOP exchanges were just launched and are not nearly as robust or as user friendly as we hope they will become as they mature. From personal experience, it takes patience—and assistance from a broker—to maneuver SHOP exchanges. Second, the ultimate objective of the ACA is that everyone has access to insurance. So, denying this arrangement results in loss of employer reimbursement, leaving employees to shop and pay for their own insurance. Seems counter to the goals of the law, if you ask me. Finally, many small employers had no idea of the IRS determination. Don’t stop reading this article and throw up your hands in disgust at government. Keep reading because there is actually good news. Secretary Burwell, who heads up HHS, held a roundtable with 10-15 individuals who work with small business associations, of which WIPP was included. The Secretary wanted to hear concerns from the small business community with respect to the ACA and was interested in how she could help. WIPP raised the HRA rulings and the problems associated with the IRS determination. The Secretary listened carefully and then acted. Not long after our meeting, the IRS released Notice 2015-17, delaying the steep penalties for small employers using HRAs. The reprieve lasts until 2016, which should give Congress time to make the necessary fixes to the law to accommodate HRAs. Now it is up to us to seek the permanent legislative fix needed to allow small companies to offer HRAs. A number of other associations are supportive of this common sense change. As is the case in many laws, good solutions are not one-size fits all. What works for large companies, doesn’t necessarily work for small companies. In the case of HRAs, small employers found an easy solution to providing health insurance to their employees. Government should support, not discourage that method of coverage. If it ain’t broke, don’t fix it.

By: Jake Clabaugh In February, the President released his FY 2017 Budget Proposal, the final budget proposal of his administration. The President’s annual budget is often referred to as an economic blueprint as it outlines the Administration’s spending priorities. Importantly, last year’s Bipartisan Budget Act, already set the top-line spending levels for FY2016 and FY2017. The President’s budget follows the top-line discretionary spending limit, and distributes $4.1 trillion in total across the Administration’s priorities. The Budget proposal has no effect on law, but instead begins the budget season. The President’s Budget Request is supplemented by each Agency’s budget justifications. The chart below highlights programs important to AEO members: The Small Business Administration’s (SBA’s) request for the Microloan program is a win for AEO members. SBA increased their request for the Microloan program lending authority to $44 million – up over 25% from last year’s request of $35 million Like last year, the SBA did not make a budget request for the PRIME program, which provides training and technical assistance to disadvantaged entrepreneurs and microenterprise development organizations. Despite the SBA not making a request, AEO’s advocacy efforts were successful in restoring funding for PRIME to $5 million. AEO will be sure to work with Congress to ensure that appropriators know the value of the PRIME program. Looking Past the Numbers While the budget lays out funding levels, it also allows agencies to highlight their legislative priorities. SBA aligned its FY2017 priorities with issues AEO members will be familiar with. Specifically, SBA requested that Congress eliminate the 25/75 technical assistance rule in the Microloan program. The SBA cited intermediaries’ need to provide “unconstrained" pre- and post-loan technical assistance. Also, the SBA called for changes to the 1/55 rule. SBA pointed out that, “this restriction effectively delays deployment of microloan funds thereby limiting the availability of capital for small businesses regardless of the size of the state or the needs of the small business community.” Moving Forward The President’s submission of a budget to Congress formally kicks off the annual spending process. Since Congress has already agreed upon the top-level of $1.1 trillion in discretionary spending for FY2017, the debate will be about the level of funding for agencies, and certain programs. While it is unclear if there is enough time in the calendar to complete a comprehensive budget process with 12 separate appropriation bills, AEO’s policy team is committed to advocating for our priorities every step of the way. Members can look forward to updates through out the spring and summer on our efforts.

By: John Stanford, AEO Government Relations Beginning November 1st 2016, the enrollment period to sign up for health insurance is open for both individuals and small businesses. In anticipation of the sign up period, AEO’s policy team has prepared this FAQ to help ensure you know what you need to know. What is an enrollment period? For most individuals and businesses, health insurance can only be selected during an annual enrollment period. Lasting three months, this is a time for consumers to shop between plans and select coverage for the following year. Missing the enrollment period will mean you cannot select insurance for 2016, which comes with a hefty penalty (see below). Throughout the year, special events like starting a business, losing/getting a job, getting married or having/adopting children, allow for special enrollment periods to select new plans. What are the key dates for 2016 Open Enrollment? Here is a timeline for this year’s enrollment period (note the December 15th deadline!): November 1 – enrollment begins: you can shop plans via www.healthcare.gov (you may be directed to your states marketplace) December 15 — Last day to enroll for January 1, 2016 coverage: This is important because if you do not have coverage of some kind on January 1, you may face a penalty January 31 — Individual enrollment period closes April 2016 – Penalties for not having health insurance in 2015 due ($395 or 2% of your income, whichever is higher) Throughout 2016: Small businesses may sign up for insurance through small business (SHOP) marketplaces What are the penalties for not having health insurance insurance? When would I pay them? There are two sets of penalties relating to health insurance. Penalties faced by all of us as individuals, and penalties employers may face. In 2016, the penalty for not having individual insurance is $695 or 2.5% of your income – whichever is higher. This is an increase from 2015. For employers, there are two types of penalties, but only if you have 50+ employees. Again, there are no penalties for businesses with less than 50 employees for not offering health insurance. For more than 50 employee-sized companies, penalties will be assessed for not offering coverage or offering coverage that is deemed unaffordable. More on employer penalties is available here. Penalties are paid on tax returns the following year – failure to get coverage in 2016 would be paid in April 2017. Are more people really signing up for insurance? AEO was recently at the White House to discuss the upcoming enrollment period. At the meeting, the Administration shared the latest numbers on the impact of the Affordable Care Act up until now: Since 2013, 17.6 million Americans have gained insurance, reducing the uninsured rate by 39% 29 states (including DC) have expanded Medicaid Enrollees, however, will now be tougher to find and engage. Of the remaining uninsured, 50% are between 18-34 years of age and 40% fall between 139-250% of the poverty level (up to roughly $60,000 a year for a family of 4). Does that mean healthcare costs are going down? It certainly does not feel that way. Healthcare costs are going up. In the years leading up to the Affordable Care Act (ACA), healthcare spending (not premiums specifically, but all health dollars) was increasing by 10-20% each year. This was a byproduct of the high cost of the uninsured, an aging population, and system inefficiencies. It was generally agreed by economists that reform was necessary to address overall healthcare costs. The ACA sought to solve this by expanding the insured market. The theory was that the high cost of the uninsured would be reined in because insurers generally achieve better pricing for services and prescription medicines. Among other things, the ACA eliminated insurers’ ability to charge differently for pre-existing conditions and removed lifetime caps on coverage. It also had two mandates to achieve increased coverage: individual – requiring everyone have insurance of some kind; and employer — requiring larger employers (more than 50 employees) offer insurance of some kind to their employees. Both mandates have penalties for failure to comply (see above). But Premiums Keep Going Up. Why is that? Now, we have an insured pool that is sicker and costlier than before. This drives the average cost of insurance, and by extension, premiums up. Health insurers are still unsure just how sick these people are and what it will cost. So we can expect to see major fluctuations as insurers get more data on the pools they are covering. For small businesses shopping in the small business marketplace, the pool remains one of the smallest segments of the health insurance market. This means that prices for America’s entrepreneurs are the most likely to face sharp increases.

By: Ann Sullivan When you’ve been working on a program for 15 years, it’s almost anti-climatic when you realize you won and it’s over. I suppose lawyers feel this way when they win a big case, or business owners when they close a major contract. For me, the SBA announcement integrating a sole source component into the WOSB procurement program on October 14, 2015 marks the end of a long campaign by Women Impacting Public Policy (WIPP). First, we fought for eleven years to establish a program that gives a government buying preference to women-owned companies whose industries have been underrepresented. Not an easy fight – we had plenty of Congressional and White House opponents—it wasn’t until the Obama Administration came into power that the program was established. At the time, SBA Administrator Karen Mills made it her number one priority, which we will always be thankful for. We had strong Congressional proponents – Senators Cantwell and Shaheen and Representatives Speier and Graves. Then, we had to make the program work. That required two major changes to the program in 2013 and 2014. The first change required lifting the award caps the law imposed on the program. The WOSB procurement program limited contract awards through the program to $4 million ($6.5 million for manufacturing). In 2013, Congress helped us get rid of those caps. The last big piece was the sole source piece—allowing contracting officers to award sole source contracts to women-owned companies through the program. This major change gives the program parity with other small business programs and again, required Congressional action. Effective October 14, agencies will be able to use this mechanism to award contracts to women whose companies offer innovative products and services. As with all government programs, the rules are a little complicated and the ability to self-certify as a woman owned business will eventually have to change, due to Congressional direction in 2014. But for now, self-certification remains the law and women should be actively pursuing contracts through the WOSB procurement program whether or not they are self-certified or certified by a third party. It is important to note that not all industries (NAICS codes) qualify for the program. You can find a list at http://www.SBA.gov/WOSB. We have developed a one pager that go through the rules of the sole source portion of the program and our GiveMe5 program has comprehensive information on the WOSB program. In addition, our ChallengeHER events are all over the country so that women can find out more about the program. The information can all be found at www.wipp.org. The WOSB procurement program is in good hands. All the major pieces to make it successful are in place. When we started this effort in 2002, women received 2.7% of government contracts. Since the program has been in place, more than $500 million has been set-aside for women- owned companies. In fact, in 2014 the government awarded 4.7% of its contracts to WOSBs –a 75% increase since 2002. Now women business owners need to know how to use it with the help of SBA, the federal contracting community and organizations, such as WIPP. Fifteen years seems like a long time, but when you are fighting for something—somehow it doesn’t seem that long. WIPP members and coalition partners were with us every step of the way. For this, I am exceedingly grateful.