By: Aaron Richards, Intern “Millennials are on track to be the least entrepreneurial generation in recent history,” Dane Stangler, the Vice President of the Kauffman Foundation testified last week to the U.S. Senate. Stangler pointed out that the decline in entrepreneurship represents a national crisis requiring immediate attention from policy makers. As a millennial myself, I find this to be alarming. The Small Business Administration reported that in 2015, less than 2 percent of millennials reported self-employment, compared with 7.6 percent for Generation X (born 1963 to 1981). Moreover, over the past 20 years, the United States has experienced a steady decline in business startups. Trends suggest that entrepreneurship amongst millennials will remain low for decades. American entrepreneurship is a comprised of a multi-dimensional group of people. Americans of various socioeconomic backgrounds start companies in different industries in different parts of the country. This “startup deficit” has contributed to the sluggish employment recovery after the recession. A lower level of business creation has also dragged down the overall fluidity of the U.S. economy. While American entrepreneurship has slowed, there are steps that lawmakers can take to remedy the decline. To rectify the headwinds and renew entrepreneurial growth in this country, Mr. Stangler suggest lawmakers address the following steps: (1) Scrutinize existing programs: There are 45 different federal government programs that aim to help entrepreneurs. Congress and administrative agencies should devote resources to understanding their effectiveness and where cuts might be possible. Lowering costs of entrepreneurial experimentation promises to foster more entrepreneurship than another government program. (2) Reduce regulatory complexity: This would not only help entrepreneurs but American firms. While there are already special regulatory provisions that apply to small businesses, Congress should consider revisiting regulations that may have reduced the volume of lending to young people attempting to start firms. (3) Invest in data collect: The best way to monitor the health of American entrepreneurship is through data. Additional resources should be considered to augment and expand these efforts. Entrepreneurship is vital to the American economy and democracy. At AEO, we believe America’s best entrepreneurial days are still to come. In our Linking Young Adults To Microbusiness report, we provide new pathways to economic opportunity to the youth by exploring all available options. This vision however will not become reality without the help and support of public policy. An economy that thrives from millennial entrepreneurship is a dream worth propelling.

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: Aaron Richards, WIPP Government Relations Intern Amid a captivating Presidential primary season – with a cast of characters as diverse as ever – it has been easy to forget the 469 other federal elections happening this November. Overlooking some of these critical races is a mistake for advocates looking to change policy under the next Administration. After all, it is Congress – and not the President – that holds the “power of the purse” and the ability to advance or block any White House agenda. The stakes for Congressional elections are enormous. With every House seat and a third of the Senate up for reelection, Republican and Democratic lawmakers have dreams of controlling the 115th Congress. We know the next Congress will look different than this one. Three incumbents have already lost in their primary elections including Virginia Rep. Randy Forbes. The loss of the 7-term Congressman from Newport News, VA is notable. His tenure as chair of the House subcommittee overseeing the Navy is considered a key reason the region received numerous Navy contracts. The impact of his removal could be significant for federal contractors in his District. Look out for other upcoming primary elections on June 28th in New York, Oklahoma, South Carolina, and Utah. On a larger scale, these elections may change control of the House or Senate. Historically, Congressional elections during a Presidential election year are likely to have a higher voter turnout, which has recently benefitted Democrats – who control neither chamber. In the Senate, where Democrats currently hold 44 of the 100 seats, only 10 Democrats are up for reelection. Republicans, however, have a steeper climb to maintain their current Senators. Of their 54 seats, 24 face Democratic challengers in November. Democrats are trying to pick up at least 5 seats to regain control of the Senate. Strategists are targeting Republican incumbents in Illinois, Wisconsin, New Hampshire, Ohio, and Pennsylvania as well as an open Republican seat in Florida (though at time of writing rumors swirl about Senator Rubio reconsidering running). Given the large majority of seats the GOP has in the House, most experts think Republicans have a strong chance of maintaining control. Just to be safe, Republicans have intensified fundraising to help defend that majority. Finally, Republicans have historically held most seats up for reelection in the House. With the final slate of primaries wrapping up, the field is almost set for the nearly 500 elections that will make up the federal government in 2017. One race in particular – between the nation’s first female candidate (of a major party) and an outspoken business leader – has dominated the news cycle. But for WIPP, as advocates hoping to shape policy, the Congressional elections warrant as much attention. We rarely (in fact never) make lofty predictions about the outcome – and with 5 months, hundreds of debates, thousands of commercials, millions of dollars, and any number of other unpredictable events that could change the calculus before November, there is no reason to start now.

By: Jake Clabaugh With August recess (which actually begins mid-July) fast approaching, Congress is working feverishly to produce appropriations bills for the coming fiscal year. Both chambers– the House and the Senate – draft separate funding bills, which are then merged into the final funding levels presented to the President. As with most years, differences between the House and Senate dollar amounts for entrepreneurial programming government-wide will need to be addressed before the FY2017 funding amounts are known. The chart below compares current spending levels with AEO’s requests for FY17 and highlights the differences in funding from both bill versions: Microlenders have reason to celebrate as SBA’s program received $44 million in lending authority from both the House and Senate— a 25% increase from FY16. That program, however, is the only agreement between the two. The House provided a 25% increase for Microloan TA to $31 million, but the Senate kept funding at last year’s level of $25 million. The Women’s Business Center (WBC) program would get an additional $2 million in the House legislation, bringing their FY17 proposed total to $19 million from the FY16 $17 million. The Senate maintained that figure in their proposal. Notably, though, both the House and Senate increased their FY16 proposals by $2 million (the Senate was at $15 million in their previous, unaccepted legislation), highlighting the growing support for the much-needed program. On again, AEO’s efforts to save the PRIME program were successful in the House, which funded the program at $5 million. The Senate’s spending bill did not address the PRIME program, but the Senate has not provided funding for this program in previous years. Typically, the House numbers for this program have usually prevailed. The funding for the Department of Treasury’s Community Development Financial Institutions (CDFI) fund and Bond Guarantee Program (BGP) similarly has each chamber on a different page. The House, which in recent years has not provided specific authority for the CDFI Bond Guarantee Program, broke that trend this year with a $250 million guarantee—falling well short of AEO’s $1 billion request. The Senate bill allowed for $500 million for the program. Advocacy work will be critical during the upcoming months. AEO seeks to ensure that resources exist for the programs members rely on to reach microbusinesses and entrepreneurs. Attaining sufficient funding for vital entrepreneurial development programs takes passion and commitment. The good news is that AEO members have both.

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 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 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.

By: Ann Sullivan, WIPP's Chief Advocate Recently, my family attended a Nationals game that just happened to be the night the Nats honor the US Army. A general threw out the first pitch, the Army Secretary handed the ball to the pitcher and the whole stadium stood in silence to hear the Army Singing Sergeants sing the “Star Spangled Banner” and watch the presentation of the Colors. Soldiers in crisp military dress lined the field in rows straighter than mere mortals could ever replicate. This show of patriotism never gets old. It serves to remind us of the respect we have for our country and those who defend it. But there is a different kind of patriotism that, while not as showy, happens in business meetings and dinner tables. Take for example, the session at the WBENC conference in Orlando a few weeks ago sponsored by WIPP/WE Decide 2016. For an hour and a half, we went over the Presidential and Congressional elections. We talked about what candidates were or were not saying and how the business community has been largely left on the sidelines. The participants in the room did not know each other but started coming up with ideas on how to change party rules, gerrymandered Districts and making a difference in upcoming elections. Yes, we talked about politics without getting snarky. Long after I finished presenting, groups of people around tables kept the discussion going. That’s patriotism. Polls suggest that politics is “off the table” right now. The Presidential election survey data show that the majority of voters in the Republican Party choose “someone else” instead of their presumptive nominee. And the one segment (those that held no degrees) that selected Trump did so with the slightest of margins. On the Democratic side, the news isn’t much better. According to Public Policy Polling, Clinton's favorability is 39/54, and Trump is even worse off at 35/58. Congressional candidates don’t fare much better. As of June, 80% of the voters surveyed by Gallop disapprove of the job Congress is doing, but yet a very high percentage of incumbents will return to Congress. That means to me that voter apathy has put discussion of policies and politics “off the table.” The definition of patriotism is “love or devotion to one’s country.” That’s what the room of people at the WBENC session were expressing while talking about change. Sure waving a flag can denote love for the USA, but so does engaging in the political process. It can be as simple as casting a vote or canvassing for the candidate you support. It can mean being a delegate to the Democratic or Republican national convention or looking into your state’s decision-making, which determines the electoral map. An interesting resource in figuring that one out is run by a professor at Loyola Law School – “All About Redistricting—Who Draws the Lines”. Promoting change is patriotic. So, why don’t we get back to discussing economic issues with our friends, family and colleagues? Discussions centered on solving problems in our country should be on the table. The easy way out is to complain, declare our dissatisfaction and opt out of the democratic process upon which our country was founded. Elected officials have been eager to feed into that pessimism by declaring that Washington is broken, even when they are in a position to fix it. I was struck by a scene described in the Washington Post about the Fourth of July celebration on the National Mall in Washington: Richard Palmer stood outside the White House and forgot for a moment the sense of foreboding he said he has felt about his country as the contentious 2016 presidential race has unfolded. Instead, he marveled at the diversity of the large crowd coming and going in front of Washington’s most famous address on the morning of the Fourth of July: a California couple in American flag T-shirts volunteering to photograph an Asian family; a schoolteacher from Florida reveling in the idea that he was standing where Abraham Lincoln once lived; a British couple wearing crowns matching the one atop the Statue of Liberty. “It gives you a renewed sense of hope,” said Palmer, 51, a salesman visiting from West Virginia with his family. “It’s a scary time. I hate what’s going on. But coming down the street here and seeing all this, I thought, ‘Maybe everything will be good.’ There are so many nationalities here, and people seem to care about things. It’s time to think of participation in the political process as patriotism. To quote President Kennedy: “Change is the law of life. And those who look only to the past or present are certain to miss the future.”

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: 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: John Stanford, WIPP Government Relations It’s a favorite phrase of my boss – and WIPP’s Chief Advocate – Ann Sullivan. The idea is nothing new: a simple solution is usually the best. That is why, for years, women business owners used the simplest possible idea for providing health benefits – you (employee) go out and get your own insurance and I (employer) will reimburse you. Simple, right? They are called Healthcare Reimbursement Arrangements, or HRAs, and bringing them back (for the second time) is one of WIPP’s top healthcare priorities. We are making great progress. The House Ways and Means Committee approved legislation that would allow HRAs to be used for firms with fewer than 50 employees. The House as a whole is expected to vote on the bill next week. The bill would allow employers to reimburse employees for qualified medical expenses like premiums and out-of-pocket costs. Importantly, employers must offer it to all eligible employees and cannot offer a separate group plan. The reimbursement is capped at around $5,000 for an individual and $10,000 for families and does not count as employee income (meaning no taxes!). Again, the idea is simple. Employers select an amount to reimburse employees, instead of locking in an insurance plan that may not fit their employees or their budget. But why did we lose HRAs in the first place? That is not so simple. The Affordable Care Act eliminated caps on health insurance plans—an undoubtedly good thing for when disaster or disease strikes. But, in the opinion of the IRS, these HRAs, by definition, had a cap (however much the employer contributed). So they were outlawed in 2013 or 2014. 2013 or 2014 is a strange way to describe when the IRS banned a certain healthcare plan. But that is what it was – the IRS notices on the issue were so confusing they had to issue additional regulations three times. Policy wonks, insurers, and healthcare consultants were unsure – let alone business owners – about whether they were allowed. And making a mistake on this carries severe penalties; offering a non-conforming plan can trigger a penalty of $100 per day per employee –more than $350,000 a year for a company with 10 employees. Because of this confusion WIPP stepped in asking Secretary Burwell to intervene on behalf of women business owners. She did and HRAs were allowed through June 2015. Legislation is needed to bring them back permanently and WIPP is optimistic Democrats and Republicans can work together, as they already have, to get this done. After all, ten million women business owners and their nearly ten million employees are pretty active voters. It’s pretty simple. More on how WIPP is working with Congress and the Administration to bring competitively-priced and accessible health options to women business owners is in our blog, Making the Affordable Care Act Work.