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In Groundbreaking partnership with Newtek Small Business Finance announced, comprehensive financial support program established.
Upon viewing the disturbing results of a recent U.S. Women's Chamber of Commerce national survey of women business owners which found a remarkable 62 percent unable to access the capital they need to be competitive (despite their preparedness and available collateral), the leaders of the USWCC decided to take dramatic action.
To significantly increase access to capital for the more than 10 million women-owned businesses in the U.S., the USWCC announced today a groundbreaking partnership with Newtek Small Business Finance. This partnership transforms the marketplace by placing a strong emphasis on communication and education, and assuring women business owners they will receive the quality support and information they need when seeking capital for their businesses.
"Our partnership with Newtek Small Business Finance provides an unprecedented level of support for women business owners and ensures women-owned firms will receive the best quality service available when seeking capital," said U.S. Women's Chamber of Commerce CEO Margot Dorfman. "All USWCC members will be supported through the process by a USWCC loan ambassador and a Newtek small business loan expert."
"We are also launching an aggressive educational campaign to deliver information women business owners need to fund their businesses and be competitive in their markets," continued Dorfman. "We were alarmed by the results of the survey - and by the personal stories of women business owners seeking to grow their businesses and compete. We know we can do better, and we're taking action."
"It's not surprising that women are having trouble accessing Small Business Administration loans," added USWCC president Terry Williams. "Even though between 1998 and 2003 the number of privately-held, majority women-owned business grew 23 percent and their revenues grew 46 percent, there was a 7.5 percent decrease in the average value of SBA-backed loans made to women-owned firms, and the percentage share of loans to women-owned firms grew only 1.1 percent. And, even though nearly one-third of all U.S. businesses are owned at least 51 percent by women, women-owned firms receive only 15 percent of SBA backed loans. We plan to do everything within our power to change these statistics and help women gain equal access to SBA- backed loans."
Barry Sloane, chairman and CEO of Newtek Business Services, Inc., said, "We welcome the opportunity to provide capital to women-owned businesses and members of the USWCC across the nation. We are pleased that the USWCC has taken capital acquisition for its members as one if its top goals in 2005. We believe our software, systems expertise and support for this great association will create significant business activity."
"This effort will deliver so much more for women-owned firms. For the first time women-owned firms will have easy access to a wide range of business funding expertise - and true access to the capital they need to build and grow competitive businesses," Dorfman added.
The USWCC will host a series of virtual meetings to answer questions about the new access to capital initiative, and will hold local access to capital training events at select cities across the country. Anyone seeking additional information should go to http://www.uswomenschamber.com/capital or call 888-41-USWCC.
Additional Survey Data
- 60% of respondents are currently seeking capital
- 62% have not been able to access the capital needed to be competitive in their marketplace
- 73% believe lending institutions are not as open to women business owners as men, even though 50% report real estate collateral for their loan in excess of $100,000 and 20% have real estate collateral in excess of $250,000
- 595 total respondents
About the U.S. Women's Chamber of Commerce
The U.S. Women's Chamber of Commerce™ (www.uswomenschamber.com) is the pre-eminent national women's chamber of commerce network whose mission is to develop leaders, accelerate economic growth and provide a community voice for women. The USWCC, a not-for-profit 501(c)6 organization founded in 2001, is growing through councils and strategic alliances across the U.S. Creating and representing the next generation of leadership for women, the USWCC is women's connection to influence, education, opportunity and advancement. Its headquarters offices are located in Washington, D.C.
About Newtek Business Services, Inc.
Newtek Business Services, Inc. is a premier provider of business services and financial products to the small- to medium-sized business market. Newtek's core brands are:
"Newtek Small Business Finance: U.S. government-guaranteed small business lending services;
"Newtek Merchant Solutions: electronic merchant payment processing solutions;
"Newtek Insurance Agency: customized insurance products provided through Keyosk;
"Newtek IT Services: complete information technology solutions;
"CrystalTech Web Hosting: comprehensive web site services;
"Newtek Financial Information Systems: outsourced digital bookkeeping; and
"Newtek Tax Services: tax filing, preparation and advisory services.
The statements in this release may contain forward looking statements relating to such matters as anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward looking statements. In order to comply with the terms of the safe harbor, Newtek Business Services, Inc. notes that a variety of factors could cause its actual results to differ materially from the anticipated results expressed in the Company's forward looking statements such as intensified competition and/or operating problems and their impact on revenues and profit margins or additional factors as described in Newtek Business Services' 2003 annual report on Form 10-K and subsequently filed registration statements.
Copyright © 2004 U.S. Women's Chamber of Commerce
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